Document:

ck1368757-ex102_29.htm

EXHIBIT 10.2

LOAN AGREEMENT (CT/NJ LOAN)

Dated as of August 5, 2022

by and among

THE PARTIES SET FORTH ON SCHEDULE 1 ATTACHED HERETO, 

collectively, as Borrowers

and

AIG ASSET MANAGEMENT (U.S.), LLC, 

as Administrative Agent,

and

the Lenders from time to time parties hereto

Loan Amount:  $80,690,220.00

 

 

 

153758634 Loan Agreement (CT/NJ Loan) - GTJ Portfolio Refinancing - AIG

 

TABLE OF CONTENTS

Page

ARTICLE 1 CERTAIN DEFINITIONS1

1.1Definitions1

ARTICLE 2 GENERAL LOAN TERMS29

2.1Loan29

2.2Interest Rate and Loan Debt Service Payments30

	
 
	
2.2.1
	
Interest Rate30

	
 
	
2.2.2
	
Stub Interest Period30

	
 
	
2.2.3
	
Monthly Loan Debt Service Payments30

	
 
	
2.2.4
	
Amounts Due on Maturity Date30

2.3Prepayment30

	
 
	
2.3.1
	
Lockout Period30

	
 
	
2.3.2
	
Voluntary Prepayment Conditions30

	
 
	
2.3.3
	
No Prepayment Premium Due31

	
 
	
2.3.4
	
No Partial Prepayments31

	
 
	
2.3.5
	
Involuntary Prepayment31

	
 
	
2.3.6
	
No Reinvestment Obligations32

	
 
	
2.3.7
	
Waiver32

2.4Late Charges32

	
 
	
2.4.1
	
Late Charge Amounts32

	
 
	
2.4.2
	
Grace Period32

2.5Default Rate Accrual on Amounts Owed32

2.6Application of Payments33

	
 
	
2.6.1
	
Application of Payments If No Event of Default Exists33

	
 
	
2.6.2
	
Application of Payments During Event of Default33

2.7Method and Place of Payment to Administrative Agent33

2.8Usury Savings Clause34

2.9Release of Collateral34

ARTICLE 3 CASH MANAGEMENT35

3.1Establishment of Accounts35

- (ii) -

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3.1.1
	
Deposit Account.35

	
 
	
3.1.2
	
Excess Cash Subaccount.35

	
 
	
3.1.3
	
Interim Deposit Account.35

	
 
	
3.1.4
	
Borrowers’ Operating Account.35

3.2Deposit of Gross Revenue35

3.3Payment Notices36

	
 
	
3.3.1
	
Delivery of Payment Notices.36

	
 
	
3.3.2
	
Third Party Instructions and Authorizations.36

3.4Application of Cash Flow36

	
 
	
3.4.1
	
Application of Cash Flow During a Non-Cash Management Period.36

	
 
	
3.4.2
	
Application of Cash Flow During a Cash Management Period.36

	
 
	
3.4.3
	
Return Events.38

3.5Disbursement of Excess Cash Subaccount Funds.38

	
 
	
3.5.1
	
During and Following a Cash Management Period.38

	
 
	
3.5.2
	
Capital Expenditures Disbursements.38

3.6Capital Proceeds.38

3.7Sufficiency of Funds38

	
 
	
3.7.1
	
Insufficient Cash Flow.38

	
 
	
3.7.2
	
Sufficient Cash Flow.39

3.8Additional Reporting and Budget Requirements.39

	
 
	
3.8.1
	
Reconciliation Reports39

	
 
	
3.8.2
	
Budgets40

3.9Administrative Agent’s DACA Conversion Option.41

ARTICLE 4 RESERVE ACCOUNTS41

4.1Tax Reserve.41

4.2Insurance Reserve.42

4.3Tenant Improvement Costs/Leasing Commissions/Capital Improvement Reserve.42

	
 
	
4.3.1
	
Deposits42

	
 
	
4.3.2
	
Maximum TI/Leasing Commissions/Capital Improvement Reserve Amount43

	
 
	
4.3.3
	
Tenant Improvement Costs, Leasing Commissions and Capital Improvement Costs43

	
 
	
4.3.4
	
Conditions to Disbursements43

	
 
	
4.3.5
	
Return and Direct Disbursement of Funds47

4.4Foreclosure Proceeds Reserve.48

ARTICLE 5 MAINTENANCE AND PLEDGE OF ACCOUNTS49

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153758634 Loan Agreement (CT/NJ Loan) - GTJ Portfolio Refinancing - AIG

5.1Maintenance of Accounts49

	
 
	
5.1.1
	
Name of Accounts49

	
 
	
5.1.2
	
Disbursement Authority50

	
 
	
5.1.3
	
Investment of Funds50

	
 
	
5.1.4
	
Application During Event of Default51

5.2Pledge of Accounts; Security Interests51

	
 
	
5.2.1
	
Pledge of Account Collateral51

	
 
	
5.2.2
	
Control52

	
 
	
5.2.3
	
No Waiver52

	
 
	
5.2.4
	
Treatment of Account Collateral in Bankruptcy52

5.3Return of Funds53

ARTICLE 6 REPRESENTATIONS AND WARRANTIES53

6.1Representations and Warranties as to Entities53

	
 
	
6.1.1
	
Due Authorization; Approvals53

	
 
	
6.1.2
	
Organizational Structure; Borrower’s Legal Name; No Conflict53

	
 
	
6.1.3
	
Taxes54

	
 
	
6.1.4
	
Enforceability54

	
 
	
6.1.5
	
Litigation54

	
 
	
6.1.6
	
Defaults of Borrower Control Person54

	
 
	
6.1.7
	
No Bankruptcy Filing55

	
 
	
6.1.8
	
Solvency55

	
 
	
6.1.9
	
Other Indebtedness55

	
 
	
6.1.10
	
Full and Accurate Disclosure; Financial Information55

	
 
	
6.1.11
	
Investment Company Act; Public Utility Holding Company Act55

	
 
	
6.1.12
	
Compliance with Legal Requirements56

	
 
	
6.1.13
	
No Foreign Person or Prohibited Person; Source of Funds56

	
 
	
6.1.14
	
Labor Matters; ERISA56

	
 
	
6.1.15
	
No Offsets56

6.2Representations and Warranties as to the Property56

	
 
	
6.2.1
	
Title to the Property56

	
 
	
6.2.2
	
Utilities and Public Access; Property Record Agreements57

	
 
	
6.2.3
	
Compliance with Legal Requirements57

	
 
	
6.2.4
	
Compliance with Insurance Requirements57

	
 
	
6.2.5
	
Security Instruments and Other Liens57

	
 
	
6.2.6
	
Assessments; Abatements; Separate Tax Lots58

	
 
	
6.2.7
	
No Encroachments58

	
 
	
6.2.8
	
Leases58

	
 
	
6.2.9
	
Contracts59

	
 
	
6.2.10
	
No Other Real Property59

	
 
	
6.2.11
	
Fees, Commissions and Compensation59

	
 
	
6.2.12
	
Zoning59

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6.2.13
	
Flood Zone59

	
 
	
6.2.14
	
Permits59

	
 
	
6.2.15
	
Repairs and Alterations; No Condemnation or Casualty60

	
 
	
6.2.16
	
Brokers and Financial Advisors60

	
 
	
6.2.17
	
Intellectual Property60

6.3Reliance on Representations60

ARTICLE 7 COVENANTS60

7.1Affirmative Covenants60

	
 
	
7.1.1
	
Performance of Loan Documents60

	
 
	
7.1.2
	
Performance Under Other Encumbrances61

	
 
	
7.1.3
	
Taxes and Assessments61

	
 
	
7.1.4
	
Maintenance and Repair of Property and Chattels; Contracts; Use62

	
 
	
7.1.5
	
Condemnation; Casualty; Capital Proceeds64

	
 
	
7.1.6
	
Financial Reporting67

	
 
	
7.1.7
	
Books and Records; Inspection Rights; Access to Property69

	
 
	
7.1.8
	
Cooperate in Legal Proceedings; Notices of Litigation70

	
 
	
7.1.9
	
Further Assurances70

	
 
	
7.1.10
	
Management and Leasing of the Property71

	
 
	
7.1.11
	
Compliance with Legal Requirements71

	
 
	
7.1.12
	
Single Purpose Entity; Preservation of Existence; Non-Foreign Status72

	
 
	
7.1.13
	
Leases73

	
 
	
7.1.14
	
Prohibited Persons; Economic Sanctions; Anti-Money Laundering; Corporate Transparency Act77

	
 
	
7.1.15
	
Replacement Guarantor79

	
 
	
7.1.16
	
Minimum Guarantor Financial Requirement80

	
 
	
7.1.17
	
General Indemnity80

	
 
	
7.1.18
	
Title to Property82

	
 
	
7.1.19
	
Post-Closing Obligations82

7.2Negative Covenants82

	
 
	
7.2.1
	
Waste and Alterations82

	
 
	
7.2.2
	
Zoning and Private Covenants82

	
 
	
7.2.3
	
Liens on the Property or other Collateral82

	
 
	
7.2.4
	
Indebtedness83

	
 
	
7.2.5
	
Property Record Agreements83

	
 
	
7.2.6
	
ERISA; Labor Matters83

	
 
	
7.2.7
	
Distributions83

	
 
	
7.2.8
	
Improper Use of Property, Chattels, Intangible Personalty or other Collateral84

	
 
	
7.2.9
	
Name and Business of Borrowers; Jurisdiction of Organization84

	
 
	
7.2.10
	
Use of Proceeds84

	
 
	
7.2.11
	
Assessments against Property84

ARTICLE 8 TRANSFERS84

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8.1Transfer, Encumbrance and Change of Control Prohibition85

8.2Chattel Transfers85

8.3Permitted Transfers85

	
 
	
8.3.1
	
Transfers of Direct or Indirect Ownership Interests in Borrower85

	
 
	
8.3.2
	
Permitted Transfer Conditions87

	
 
	
8.3.3
	
Wu Transfer Conditions89

	
 
	
8.3.4
	
Administrative Agent’s Costs.90

8.4Permitted Indebtedness90

	
 
	
8.4.1
	
Trade Payables; Permitted Equipment Financing90

	
 
	
8.4.2
	
Permitted Indebtedness Conditions91

	
 
	
8.4.3
	
Permitted Additional Financing91

	
 
	
8.4.4
	
Permitted Additional Financing Right of First Refusal.94

	
 
	
8.4.5
	
Permitted Additional Financing Right of First Refusal Procedure.94

	
 
	
8.4.6
	
No Solicitation.95

8.5One-Time Transfer96

	
 
	
8.5.1
	
Assumption Conditions.96

	
 
	
8.5.2
	
Release of Borrowers and Guarantor.99

8.6Release of Property.100

8.7Casualty/Condemnation Release.102

8.8Immediate Event of Default103

ARTICLE 9 INSURANCE103

9.1Property and Related Insurance.103

	
 
	
9.1.1
	
Property Insurance103

	
 
	
9.1.2
	
Rental Loss/Business Interruption104

	
 
	
9.1.3
	
Boiler and Machinery104

	
 
	
9.1.4
	
Builder’s Risk104

	
 
	
9.1.5
	
Flood104

	
 
	
9.1.6
	
Earthquake104

	
 
	
9.1.7
	
Pollution104

	
 
	
9.1.8
	
Terrorism (Property)104

9.2Liability Insurance105

	
 
	
9.2.1
	
General Liability Insurance105

	
 
	
9.2.2
	
Commercial General Liability Insurance105

	
 
	
9.2.3
	
Insurance for Independent Vendors105

	
 
	
9.2.4
	
Workers’ Compensation and Employer’s Liability Insurance106

	
 
	
9.2.5
	
Excess/Umbrella Liability Insurance106

9.3Other Insurance Coverage106

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9.4Other Requirements With Respect to Insurance106

	
 
	
9.4.1
	
Insurance Companies106

	
 
	
9.4.2
	
Deductibles106

	
 
	
9.4.3
	
Automatic Reinstatement; Blanket Policies; Joint Loss Agreement107

	
 
	
9.4.4
	
Evidence of Insurance107

	
 
	
9.4.5
	
Other Contents of Required Insurance Policies107

	
 
	
9.4.6
	
Cancellation; Replacement108

	
 
	
9.4.7
	
Separate Insurance108

	
 
	
9.4.8
	
Contravention of Insurance108

	
 
	
9.4.9
	
Payment of Premium; Failure of the Borrowers to Effect Insurance108

	
 
	
9.4.10
	
Successor’s Rights109

	
 
	
9.4.11
	
Notice of Changes109

	
 
	
9.4.12
	
Leases109

ARTICLE 10 EVENTS OF DEFAULT; REMEDIES109

10.1Event of Default109

	
 
	
10.1.1
	
Failure to Pay Scheduled Amounts109

	
 
	
10.1.2
	
Failure to Pay Other Amounts110

	
 
	
10.1.3
	
Violation of Certain Covenants110

	
 
	
10.1.4
	
Other Obligations110

	
 
	
10.1.5
	
Levy Against Property110

	
 
	
10.1.6
	
Liquidation; Division110

	
 
	
10.1.7
	
Appointment of Receiver110

	
 
	
10.1.8
	
Assignments110

	
 
	
10.1.9
	
Order for Relief110

	
 
	
10.1.10
	
Bankruptcy111

	
 
	
10.1.11
	
Admission Regarding Debt111

	
 
	
10.1.12
	
Misrepresentation111

	
 
	
10.1.13
	
Judgments111

	
 
	
10.1.14
	
Assertion of Priority111

	
 
	
10.1.15
	
Other Loan Documents111

	
 
	
10.1.16
	
Other Liens111

	
 
	
10.1.17
	
Other Indebtedness112

	
 
	
10.1.18
	
Injunction112

	
 
	
10.1.19
	
Validity of Loan Documents112

	
 
	
10.1.20
	
Cash Management; Accounts112

	
 
	
10.1.21
	
Financial Statements112

	
 
	
10.1.22
	
Cross-Collateralized Loan Documents112

	
 
	
10.1.23
	
Affiliate Guaranty (Portfolio Borrowers)1121

 

10.2Remedies112

	
 
	
10.2.1
	
Performance of Defaulted Obligations and Protective Advances113

	
 
	
10.2.2
	
Specific Performance and Injunctive Relief113

- (vii) -

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10.2.3
	
Acceleration of Secured Obligations113

	
 
	
10.2.4
	
Suit for Monetary Relief113

ARTICLE 11 GENERAL PROVISIONS113

11.1Expiration of Borrower Claims113

11.2Time of the Essence114

11.3Joint and Several Obligation114

11.4Waivers by Borrower114

	
 
	
11.4.1
	
Homestead, Marshaling of Assets and other Rights114

	
 
	
11.4.2
	
Claims for Monetary Damages114

	
 
	
11.4.3
	
Required Notices115

	
 
	
11.4.4
	
Offsets; Counterclaims115

11.5Entire Agreement; Modification in Writing; No Implied Waivers by Administrative Agent115

11.6Administrative Agent’s Discretion; Binding Action116

11.7Headings; Exhibits and Schedules Incorporated116

11.8Governing Law; Forum116

11.9WAIVER OF TRIAL BY JURY116

11.10Notices117

11.11Severability118

11.12Preferences; Reinstatement118

11.13No Joint Venture or Partnership118

11.14Conflict; Construction; Counterparts118

11.15Estoppel Certificates119

	
 
	
11.15.1
	
Estoppel Certificates.119

	
 
	
11.15.2
	
Appraisals.119

11.16No Third Party Beneficiaries; Successors and Assigns119

11.17Sale of Loan and Securitization; Future Loan Modification120

	
 
	
11.17.1
	
Loan Modifications.120

	
 
	
11.17.2
	
Securitization.120

	
 
	
11.17.3
	
Disclosure of Lease Information.121

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11.18Subrogation of Lender121

11.19Appointment of Servicer and Delegation of Administrative Agent Responsibilities121

	
 
	
11.19.1
	
Appointment and Replacement of Servicer121

	
 
	
11.19.2
	
Servicer Fees; Designation of Administrative Agent Responsibilities122

11.20Payment of Expenses.122

	
 
	
11.20.1
	
Payment of Administrative Agent’s and Lender’s Costs and Expenses122

	
 
	
11.20.2
	
Attorneys’ Fees References123

	
 
	
11.20.3
	
Fee Deposit.123

11.21Disclaimer Regarding Third Party Reports123

11.22Acceptance of Cures for Events of Default124

11.23No Mortgagee In Possession124

ARTICLE 12 LIMITATION ON LIABILITY125

12.1General Limitation on Liability125

12.2Loss Recourse Events125

12.3Springing Recourse Events128

12.4Limitation on Personal Liability129

ARTICLE 13 ADMINISTRATIVE AGENT129

13.1Appointment; Authorization and Definitions.129

13.2Reliance on Administrative Agent.130

13.3Powers.131

13.4Rights as a Lender.131

13.5Employment of Agents and Advisors.131

13.6No Responsibility for Loans, Recitals, Etc.132

13.7No Representations; Lender Credit Decisions.132

13.8No Relation.133

13.9Amendments Concerning Agency Functions.133

13.10No Third Party Beneficiary.133

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153758634 Loan Agreement (CT/NJ Loan) - GTJ Portfolio Refinancing - AIG

13.11Co-Lender Agreement.133

13.12Modifications to This Article 13.134

13.13Conflicts134

 

		
	
EXHIBITS
	
 

	
 
	
 

	
Exhibit A
	
Form of Payment Notice 

	
 
	
 

	
Exhibit B
	
Wire Instructions for Borrowers’ Operating Account

	
 
	
 

	
Exhibit C
	
Form of Tenant Estoppel

	
 
	
 

 

		
	
SCHEDULES
	
 

	
 
	
 

	
Schedule 1

 
	
List of Borrowers

	
Schedule 2
	
List of Individual Properties 

	
 

Schedule 3

 

Schedule 4
	
 

Allocated Loan Amounts

 

Allocated Loan Debt Service Payments

	
 

Schedule 5
	
 

List of Required Tenants

	
 

Schedule 6
	
 

Cross-Collateralized Borrowers

	
 

Schedule 7
	
 

Cross-Collateralized Properties

	
 

Schedule 8
	
 

Safe Harbor Lease Definition

 

		
	
Schedule 9
	
Rent Rolls

	
Schedule 10
	
Lease Matters

	
Schedule 11
	
Contracts, Brokerage Agreements and Commissions

	
Schedule 12

 

Schedule 13
	
Zoning Districts

 

Post-Closing Obligations

	
 

Exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K and will be provided on a supplemental basis to the Securities and Exchange Commission upon request.

 

- (x) -

153758634 Loan Agreement (CT/NJ Loan) - GTJ Portfolio Refinancing - AIG

 

LOAN AGREEMENT

This LOAN AGREEMENT (CT/NJ LOAN), is made as of August 5, 2022, by and among AIG ASSET MANAGEMENT (U.S.), LLC, a Delaware limited liability company, as Administrative Agent as provided herein, each of the parties hereto as a lender from time to time (such lenders and their respective successors and assigns, individually or collectively, as the context may require, “Lender”), and the parties set forth on Schedule 1 attached hereto (each individually, a “Borrower” and, collectively, the “Borrowers”).

RECITALS

	
A.
	
Borrowers desire to obtain from Lender a loan in the original aggregate principal amount of Eighty Million Six Hundred Ninety Thousand Two Hundred Twenty and 00/100 Dollars ($80,690,220.00) (the “Loan”).

	
B.
	
Lender is unwilling to make the Loan unless Borrowers execute and deliver this Agreement, and Borrowers and Guarantor (as defined below) execute and deliver the other Loan Documents (as defined below) to which Borrowers and/or Guarantor are a party, which Loan Documents shall establish the terms and conditions of, and provide security for, the Secured Obligations (as defined below).

NOW, THEREFORE, in consideration of the making of the Loan by Lender and for other good and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, Borrowers, Administrative Agent and Lender hereby covenant, agree, represent and warrant as follows:

ARTICLE 1

CERTAIN DEFINITIONS

1.1Definitions

.  For all purposes of this Agreement and each other Loan Document, (i) unless otherwise specified, all accounting terms have the meanings assigned to them in accordance with GAAP, (ii) the words “Dollars” or “dollars” and the symbols “$” shall mean and refer to the currency of the United States of America, (iii) the words “include”, “included,” “including”, “includes” and words of similar import shall be deemed to be followed by the words “without limitation”, and (iv) any requirement that a Person perform any covenant, obligation, promise, representation, warranty or other understanding shall be deemed to include a requirement that such Person pay all amounts necessary or required to perform such covenant, obligation, promise, representation, warranty or other understanding.  For all purposes of this Agreement:  (a) the capitalized terms defined in this Section 1.1 include the plural as well as the singular; (b) unless otherwise expressly set forth in this Agreement, “herein”, “hereof”, “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section, clause or other subdivision; (c) unless otherwise specified herein, all references to Sections, subsections, Articles, Exhibits or Schedules shall refer to the Sections, subsections, Articles, Exhibits and Schedules hereof; and (d) the following terms have the following meanings:

“Account Collateral” means, collectively, (i) all funds, money or cash from time to time on deposit in the Accounts, (ii) all of Borrowers’ right, title and interest in and to the Accounts and 

153758634 Loan Agreement (CT/NJ Loan) - GTJ Portfolio Refinancing - AIG

such funds, (iii) all proceeds and all rights to payment from the Accounts and such funds and all interest accruing thereon, (iv) any dividends, certificates, instruments and securities or other “investment property” (as defined in the UCC), if any, representing such funds, (v) all claims, demands, general intangibles, choses in action and other rights or interests of Borrowers in respect of the Accounts and such funds, (vi) any increases, renewals, extensions, substitutions and replacements thereof, (vii) any funds held by Borrowers or any Property Manager or other agent of Borrowers that are required to be deposited into the Deposit Account pursuant to the terms of this Agreement or pursuant to the terms of any other Loan Document, and (viii) all proceeds of the foregoing.

“Accounts” means, collectively, the Deposit Account, the Interim Deposit Account, the Excess Cash Subaccount, the Tax Reserve Account, the Insurance Reserve Account, the Excess Foreclosure Proceeds Reserve, any Capital Proceeds Account, the TI/Leasing Commissions/Capital Improvement Reserve Account and any other reserve, account or subaccount maintained by Servicer or Administrative Agent in accordance with the terms of this Agreement, and all other “accounts” (whether now owned or hereafter acquired) as defined in the UCC relating to the Property and/or the Secured Obligations.  

“Additional Amounts” has the meaning set forth in Section 3.4.2(F).

“Additional Financing Offer” has the meaning set forth in Section 8.4.4.

“Additional Financing Term Sheet” has the meaning set forth in Section 8.4.5(D). 

“Additional Financing Term Sheet Negotiation Period” has the meaning set forth in Section 8.4.5(D).

 “Administrative Agent” means AIG Asset Management (U.S.), LLC, a Delaware limited liability company, in its capacity as administrative agent hereunder and under any of the Loan Documents, and any successor in such capacity.

“Affiliate” means, with respect to a specified Person, (i) a Person that Controls, is Controlled by or is under common Control with, the specified Person, (ii) any Person who is an officer (except for an officer whose position is solely as a result of such Person being an employee), director, partner, manager, member or trustee of, or serves in a similar capacity with respect to, the specified Person or of which the specified Person is an officer, director, partner, manager, employee, member or trustee, or with respect to which the specified Person serves in a similar capacity, (iii) any Person that, directly or indirectly, has an ownership interest in the specified Person (except to the extent that the ownership interest of such Person consists solely of publicly traded stock), (iv) any Person (excluding any entities whose stock is publicly traded) in which the specified Person has an ownership interest, (v) the spouse, issue, sibling, parent or grandparent of the specified Person, (vi) Guarantor, if the specified Person is any Borrower or any Borrower Owner Person, (vii) any Borrower, if the specified Person is Guarantor, any other Borrower or any Borrower Owner Person, (viii) each Borrower Owner Person, if the specified Person is any Borrower, Guarantor or any other Borrower Owner Person, and (ix) any Person that would constitute an Affiliate of any such Person described in clauses (i) through (viii) above.

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153758634 Loan Agreement (CT/NJ Loan) - GTJ Portfolio Refinancing - AIG

“Affiliate Guaranty (Portfolio Borrowers)” means, that certain Affiliate Guaranty Agreement (Portfolio Borrowers), dated as of the Closing Date by and among each of the Borrowers and the Cross-Collateralized Borrowers pursuant to which each Borrower and Cross-Collateralized Borrower guaranties the debt of each of the other Borrowers and Cross-Collateralized Borrowers, which debt is evidenced by this Agreement, the other Loan Documents and the Cross-Collateralized Loan Documents, as applicable. 

“Agreement” means this Loan Agreement (CT/NJ Loan), together with any Schedules and Exhibits hereto, as the same may be amended, restated, supplemented or otherwise modified from time to time.

“Allocated Loan Amount” means the portion of the Principal Indebtedness allocated to each Individual Property as set forth opposite each such Individual Property on Schedule 3 attached hereto under the caption “Allocated Loan Amount”, and as such Allocated Loan Amount may be adjusted pursuant to the terms of this Agreement.

“Allocated Loan Debt Service Payments” means the portion of the Loan Debt Service Payments allocated to each Individual Property as set forth opposite each such Individual Property on Schedule 4 attached hereto under the caption “Allocated Loan Debt Service Payments” (as the same may be modified in connection with the release of any Individual Property pursuant to and in accordance with Section 8.6 or 8.7).

“Anti-Money Laundering Laws” has the meaning set forth in the definition of the term “Prohibited Person”.

“Applicable Interest Rate” means the Interest Rate, or if applicable pursuant to the terms of this Agreement or the other Loan Documents, the Default Rate.

“Appraisal” means an appraisal of the Property obtained by Administrative Agent at the sole cost and expense of Borrowers (subject to the terms of Section 11.15.2) that is (i) prepared by a Member of Appraisal Institute appraiser that is selected and engaged by Administrative Agent and is certified in the state where the Property is located and (ii) otherwise satisfactory in form and substance to Administrative Agent.

“Approved Accounting Principles” means GAAP (with respect to entities) (or such other accounting method approved by Administrative Agent in writing (with respect to individuals), consistently applied.

“Approved Budget” has the meaning set forth in Section 3.8.2(A).

“Approved Insurer” has the meaning set forth in Section 9.4.1.

 

“Approved Replacement Lease” has the meaning set forth in Section 7.1.13(E)(i).

“Assignment of Leases and Rents” means each Assignment of Leases and Rents, dated as of the Closing Date, by the applicable Borrower to Administrative Agent for the benefit of Lender, as the same may be amended, restated, supplemented or otherwise modified from time to time. “Assignments of Leases and Rents” means, any two (2) or more Assignments of Leases and Rents 

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153758634 Loan Agreement (CT/NJ Loan) - GTJ Portfolio Refinancing - AIG

or, as the context may require, all of the Assignments of Leases and Rents in respect of the Property.  

“Available Liquidity” means the excess, if any, of (i) the market value of assets in the form of cash and other assets that are readily convertible to cash (including cash equivalents, obligations of the United States or any agency or instrumentality thereof that are supported by the full faith and credit of the United States, securities listed and traded on a recognized stock exchange or traded over the counter and listed in the National Association of Securities Dealers Automatic Quotations, certificates of deposit issued by a commercial bank that has net assets of not less than One Billion Dollars ($1,000,000,000) and other liquid debt instruments that have a readily ascertainable cash value and are regularly traded in a recognized financial market), over (ii) total Liens affecting such cash and other assets (including contingent liabilities); provided that if Guarantor's direct or indirect equity interests in the Property or Borrowers consists, in whole or in part, of any securities or other liquid assets described in clause (i) of this definition, then the market value of such securities or other assets shall not be deemed to be included in the term “Available Liquidity”.

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as amended from time to time, and any successor statute or statutes, and all rules and regulations from time to time promulgated thereunder.

“Bankruptcy Law” means (i) the Bankruptcy Code and (ii) any similar federal, state or other law, rule or regulation relating to bankruptcy, insolvency, reorganization, debtors’ relief or creditors’ rights, whether now or hereinafter in effect.

“Borrower” and “Borrowers” have the meanings set forth in the introductory paragraph of this Agreement; provided, that, following the release of any Individual Property pursuant to Section 8.6, if any Borrower does not own any of the remaining Properties subject to the Lien of a Security Instrument, the terms “Borrower” and “Borrowers” shall exclude such Borrower.

“Borrower Control Persons” means (i) each Borrower, (ii) each Guarantor, (iii) Managing Member, (iv) GTJ GP, (v) GTJ REIT, and (vi) any other Person that Controls any of the Persons set forth in the preceding clauses (i), (ii), (iii), (iv) or (v) and any Person that is a managing member, manager, general partner or other Person that Controls such Controlling Person or intermediary.  

“Borrower Funded Operating Shortfall” means the aggregate amount (as reflected in the applicable Reconciliation Report approved by Administrative Agent), if any, of Permitted Operating Expense Deviations that were funded not out of disbursements into the Borrowers’ Operating Account from the Deposit Account, but by Borrowers out of other amounts in the Borrowers’ Operating Account or otherwise during the applicable Reconciliation Period, provided, however, without limiting the obligations of Guarantor under the Guaranty Agreement and the Environmental Indemnity Agreement, nothing set forth herein shall require any owner or principal of any Borrower or any other Person to make any capital contribution or other contribution of cash or assets to fund such shortfall.

“Borrower Owner Persons” means (i) each Borrower, (ii) each Guarantor, (iii) Managing Member, (iv) GTJ GP, (v) GTJ REIT, (vi) any Person that is a Borrower Control Person, and (vii) 

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any other Person that owns, directly or indirectly, through one or more intermediaries, any interest in any Person described in the preceding clause (i), (ii), (iii), (iv), (v) or (vi), or if the Person described in the preceding clause (i), (ii), (iii), (iv), (v) or (vi) is a trust, any trustee or any beneficiary of such trust.  

“Borrowers’ Operating Account” means an account in Borrowers’ name and under Borrowers’ sole control.  

“Budgeted Operating Expenses” means, for any period, the Operating Expenses budgeted for such period as set forth in the Approved Budget or Interim Budget, as applicable.

“Building Systems” means the central heating, ventilation, air conditioning, plumbing, electric, fire and life safety, telecommunications, mechanical, wiring, sprinkler, sewerage, water, elevator and other base building systems in the Improvements, and all other fixtures, equipment and appurtenance related thereto.

“Business Day” means any day other than a Saturday, Sunday or public holiday or the equivalent for banks generally under federal law or the laws of the State of New York.

“Capital Expenditures” means expenditures with respect to the Property that are, or would be if incurred, capitalized under GAAP.  For the avoidance of doubt, Capital Expenditures include Tenant Improvement Costs and Leasing Commissions.

“Capital Improvement Costs” has the meaning set forth in Section 4.3.3.

“Capital Improvements” has the meaning set forth in Section 4.3.3.

“Capital Proceeds” means all casualty insurance proceeds (excluding business or rental loss insurance proceeds), condemnation awards and similar compensation (including proceeds from settlements of actual, potential or threatened insurance and condemnation claims) relating to or in respect of all or any part of the Property.  

“Capital Proceeds Account” means any account in which Administrative Agent or Servicer holds any Capital Proceeds deposited with Administrative Agent or Servicer pursuant to Section 7.1.5.

“Cash Flow” means the amount of all collected and available funds deposited into the Deposit Account (excluding any Capital Proceeds and excluding checks that have not yet cleared), during any particular period of time, less the minimum amount of funds (if any) that the depository bank at which the Deposit Account is maintained requires to be retained on deposit at all times in the Deposit Account in order to avoid closing such Deposit Account.

“Cash Management Event” means that a Default, an Event of Default or a DSCR Cash Management Event has occurred.  

“Cash Management Period” means any period following the occurrence of a Cash Management Event and prior to the occurrence of a Return Event.

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“Cash Management Period Waterfall” means the order and priority of distribution of Cash Flow set forth in Section 3.4.2.

“Casualty/Condemnation Release” has the meaning set forth in Section 8.7.

“Chattels” means, collectively, whether now owned or hereafter acquired, all goods (including all “Goods” as defined in the UCC), fixtures (including all “Fixtures” as defined in the UCC), inventory (including all “Inventory” as defined in the UCC), equipment (including all “Equipment” as defined in the UCC), building and other materials, supplies, and other tangible personal property of every nature (but excluding (i) all chattels, trade fixtures and personal property of Tenants under Leases that are not and do not become the property of Borrowers under such Leases and (ii) all personal property leased or licensed by Borrowers pursuant to equipment leases, license agreements or other agreements with third parties), used, intended for use, or reasonably required in the construction, development, operation or maintenance of the Property, together with all accessions thereto, replacements and substitutions therefor, and proceeds thereof.

“Closing Date” means the date of this Agreement.

“Code” means the Internal Revenue Code of 1986, as amended, and as it may be further amended from time to time, any successor statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form.

“Co-Lender 1” means American General Life Insurance Company, a Texas corporation.

“Co-Lender 1 Note” means that certain Promissory Note (AGLIC CT/NJ Loan), dated as of the Closing Date, made by Borrowers payable to the order of Co-Lender 1 in the original principal amount of Thirty-Four Million Five Hundred Seventy-Five Thousand Seven Hundred Fifty-Nine and 27/100 Dollars ($34,575,759.27), as the same may be amended, restated, supplemented, extended, consolidated, split, severed, replaced (whether by one or more replacement notes) or otherwise modified from time to time (including in connection with a Loan Modification effectuated pursuant to this Agreement).

“Co-Lender 1 TF1B Note” means that certain Promissory Note (AGLIC – TF1B CT/NJ Loan), dated as of the Closing Date, made by Borrowers payable to the order of Co-Lender 1 in the original principal amount of Seven Million One Hundred Seventy-Three Thousand Three Hundred Sixty and 56/100 Dollars ($7,173,360.56), as the same may be amended, restated, supplemented, extended, consolidated, split, severed, replaced (whether by one or more replacement notes) or otherwise modified from time to time (including in connection with a Loan Modification effectuated pursuant to this Agreement).

“Co-Lender 2” means The Variable Annuity Life Insurance Company, a Texas corporation.

“Co-Lender 2 Note” means that certain Promissory Note (VALIC CT/NJ Loan), dated as of the Closing Date, made by Borrowers payable to the order of Co-Lender 2 in the original principal amount of Twenty-Six Million Eight Hundred Ninety-Four Thousand Fifty and 32/100 Dollars ($26,894,050.32), as the same may be amended, restated, supplemented, extended, consolidated, split, severed, replaced (whether by one or more replacement notes) or otherwise 

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modified from time to time (including in connection with a Loan Modification effectuated pursuant to this Agreement).

“Co-Lender 3” means The United States Life Insurance Company in the City of New York, a New York corporation.

“Co-Lender 3 Note” means that certain Promissory Note (USLIC – Fortitude CT/NJ Loan), dated as of the Closing Date, made by Borrowers payable to the order of Co-Lender 3 in the original principal amount of Twelve Million Forty-Seven Thousand Forty-Nine and 85/100 Dollars ($12,047,049.85), as the same may be amended, restated, supplemented, extended, consolidated, split, severed, replaced (whether by one or more replacement notes) or otherwise modified from time to time (including in connection with a Loan Modification effectuated pursuant to this Agreement).

“Co-Lender Agreement” has the meaning set forth in Section 13.11.

“Collateral” means, collectively, the Property, the Chattels and the Intangible Personalty.

“Connecticut Borrowers” has the meaning set forth in Schedule 1. “Connecticut Borrower” means any one (1) of the Connecticut Borrowers.

“Connecticut Properties” has the meaning set forth in Schedule 2. “Connecticut Property” means any one (1) of the Connecticut Properties.

“Contracts” means, collectively, all contracts and agreements (including all amendments, modifications, supplements, side letters and guaranties with respect thereto) entered into by or on behalf of any Borrower in connection with the use, maintenance, furnishing, equipping, ownership, operation or management of the Property or other Collateral, including any Property Management Agreement, any Listing Agreement  and any and all contracts, licenses, permits, warranties and approvals for and in respect of the Property or other Collateral, but excluding the Leases.

“Control” means, with respect to any Person, either (i) ownership, directly or indirectly, of greater than fifty percent (50%) of the ownership interests in such Person or (ii) the possession, directly or indirectly through one or more intermediaries, of the power to direct (or cause the direction of) the management, activities and policies of such Person, whether through the ownership of voting securities, by contract or otherwise, subject only to customary major decision rights.  Notwithstanding the foregoing, for purposes of Section 7.1.14 (Prohibited Persons; Economic Sanctions; Anti-Money Laundering; Corporate Transparency Act), Article 8 (Transfers) and the definition of “Prohibited Person”, and for purposes of the Organizational Certificate, the term “Control” shall mean, with respect to any Person, the possession, directly or indirectly through one or more intermediaries, of the power to direct (or cause the direction of) the management, activities and policies of such Person, whether through the ownership of voting securities, by contract or otherwise, subject only to customary major decision rights.  This definition is to be construed to apply equally to variations of the word “Control” including “Controlled”, “Controlling” or “Controlled by”.

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“Corporate Transparency Act” means the Corporate Transparency Act (expected to be codified at 31 U.S.C. § 5336) and the regulations promulgated thereunder or any substitute or similar legislative or statutory requirement, each as amended from time to time.

“Cross-Collateralized Borrowers” means, individually or collectively as the context requires, the Person(s) identified on Schedule 6 attached hereto.

“Cross-Collateralized Loan” means that certain loan evidenced the Cross-Collateralized Loan Documents.

“Cross-Collateralized Loan Agreement” means that certain Loan Agreement (NY Loan), dated as of the Closing Date, among the Cross-Collateralized Borrowers, Administrative Agent and Lender, as the same may be amended, restated, modified and/or supplemented from time to time.

“Cross-Collateralized Loan Documents” means, collectively, the Cross-Collateralized Notes, the Cross-Collateralized Loan Agreement, each of the other “Loan Documents” as such term is defined in the Cross-Collateralized Loan Agreement, the Third Mortgages (as defined in the Cross-Collateralized Loan Agreement), and the Affiliate Guaranty (NY Borrowers) (as defined in the Cross-Collateralized Loan Agreement).

 “Cross-Collateralized Notes” means, each of the “Notes” as such term is defined in the Cross-Collateralized Loan Agreement.

“Cross-Collateralized Permitted Additional Financing” has the meaning set forth in Section 8.4.3(C).

 “Cross-Collateralized Portfolio” means, all of the real properties identified on Schedule 7 attached hereto together with any improvements and personality located thereon or owned in respect thereof.

“Cut-Off Date” means (1) two (2) Business Days prior to the Disbursement Date during any Non-Cash Management Period, and (2) the twenty-fifth (25th) day of each calendar month during any Cash Management Period.  

“DACA Conversion” has the meaning set forth in Section 3.9.

“Debt Service Coverage Ratio” means, with respect to each Individual Property, the ratio, as reasonably determined by Administrative Agent as of any date of determination, of (i) Net Operating Income for the immediately preceding twelve (12) calendar month period, to (ii) the aggregate amount of (x) the annual Allocated Loan Debt Service Payments applicable to such Individual Property and due under the Loan Documents and (y) the debt service payments due in respect of all indebtedness secured or to be secured by a Lien on all or any portion of such Individual Property or any direct or indirect interest in the applicable Borrower, in each case, for the next twelve (12) calendar month period.  Debt Service Coverage Ratio shall be calculated on a cash flow basis.

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“Default” means any matter, event or circumstance that, but for the giving of notice or the passage of time, or both, would constitute an Event of Default.

“Default Rate” means the greatest of (i) twelve percent (12%) per annum, (ii) a per annum rate equal to four percent (4%) over the prime rate published in The Wall Street Journal on the first Business Day of each month and (iii) a per annum rate equal to five percent (5%) over the Interest Rate; provided, however, that such rate shall not exceed the maximum permitted by applicable Legal Requirements.  If The Wall Street Journal is no longer published or no longer publishes such prime rate, then Administrative Agent shall select a comparable reference.  

“Default Return Event” means that Borrowers shall have cured the outstanding Default or all of the outstanding Defaults that gave rise to the applicable Cash Management Event.

“Deposit Account” means a separate deposit account segregated from all other accounts of Administrative Agent, Lender or Servicer to be used for the purposes more particularly described in Article 3 hereof. 

“Disbursement Date” means (1) during any Non-Cash Management Period, the first Business Day of each calendar week, and (2) during any Cash Management Period, the first Business Day of each calendar month, or such other day as determined by Administrative Agent.  

“Disbursement Request” means a written request for the disbursement of funds from the applicable Account delivered by Borrowers to Administrative Agent and including all of the applicable items required by the terms of this Agreement.

 “DSCR Cash Management Event” means that, as of any date of determination, either (i) the Portfolio Debt Service Coverage Ratio is less than 1.2 to 1.0, or (ii) Administrative Agent determines, in Administrative Agent’s reasonable discretion, that the Portfolio Debt Service Coverage Ratio will be less than 1.2 to 1.0 within the twelve (12) month period following such date of determination, based upon Administrative Agent’s projection of Portfolio Net Operating Income during such twelve (12) month period.  

 “DSCR Return Event” means that, as of any date of determination, (i) the Portfolio Debt Service Coverage Ratio is greater than or equal to 1.2 to 1.0 for each of the two (2) previous consecutive calendar quarters and (ii) Administrative Agent has received satisfactory evidence that such Portfolio Debt Service Coverage Ratio will be maintained for the succeeding twelve (12) consecutive calendar months.

 

“Embargoed Person” has the meaning set forth in Section 7.1.14(B).

 

“Environmental Indemnity Agreement” means that certain Environmental Indemnity Agreement (CT/NJ Loan), dated as of the Closing Date, made by Borrowers and Guarantor to Administrative Agent for the benefit of Lender, as the same may be amended, restated, supplemented, reaffirmed, replaced or otherwise modified from time to time.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder.

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“Event of Default” has the meaning set forth in Section 10.1.

“Excess Cash Subaccount” means an account into which Cash Flow remaining on each Disbursement Date after application pursuant to the Cash Management Period Waterfall shall be deposited, which account may, at Administrative Agent’s election, be established on a ledger or book-entry basis within the Deposit Account, and not as a separate account.

“Excess Foreclosure Proceeds” has the meaning set forth in Section 4.4.2.

“Excess Foreclosure Proceeds Collateral” has the meaning set forth in Section 4.4.3.

“Excess Foreclosure Proceeds Reserve” has the meaning set forth in Section 4.4.1.

“Executive Order” has the meaning set forth in the definition of the term “Prohibited Person”.

“Fee Deposit” has the meaning set forth in Section 11.20.3.

“Final Accrual Period Interest” has the meaning set forth in Section 2.3.2.

“FinCEN” means the U.S. Department of Treasury Financial Crimes Enforcement Network. 

 “Full Replacement Cost” means the cost of replacing the Improvements (together with all appurtenances and betterments) in compliance with all Legal Requirements, without deduction for physical depreciation thereof, following any casualty or other damage to the Property, as determined by an Appraisal.

“GAAP” means generally accepted accounting principles in the United States of America, consistently applied.

“Governmental Authority” means (i) the government of (a) the United States of America or any state, commonwealth, county, city or other political subdivision of any of the foregoing, or (b) any other jurisdiction in which any Borrower, Guarantor, any Borrower Control Person, Administrative Agent, Lender or any Affiliate of the foregoing Persons conducts all or any portion of its business, (ii) any government that asserts jurisdiction over any properties of any of the foregoing Persons, or (iii) any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.

“Gross Revenue” means, with respect to each Individual Property, all payments and other revenues (exclusive, however, of any payments attributable to sales taxes) received by or on behalf of (or paid to third parties at the direction of) the applicable Borrower from all sources related to the ownership or operation of any Individual Property, including prepaid or other rents, parking fees, licensing fees, Termination Fees and other fees, income, receipts, revenues, issues, profits, advances, oil and gas or other mineral royalties and bonuses, interest, security deposits (to the extent that such security deposits are applied to obligations of the applicable Tenant or are no longer subject to being returned to the applicable Tenant), business or rental loss insurance proceeds, operating expense pass-through revenues, direct expense reimbursements, common area 

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maintenance charges, refunds, rebates and reimbursements (other than by Administrative Agent or Lender) of any Operating Expenses, including Property Impositions, or Capital Expenditures related to such Individual Property previously paid (excluding amounts required to be returned to Tenants), Capital Proceeds, payments received by or on behalf of the applicable Borrower as compensation or as settlement of claims or litigation, and payments under an indemnity or other similar matters with respect to the applicable Borrower or such Individual Property, in each case, for the relevant period for which the calculation of Gross Revenue is being made.

“GTJ GP” means, GTJ GP, LLC, a Maryland limited liability company.

“GTJ Realty” means GTJ Realty, LP, a Delaware limited partnership.

“GTJ REIT” means, GTJ REIT, Inc., a Maryland real estate investment trust.

“Guarantor” means GTJ REIT or any replacement Guarantor that replaces such Person in accordance with Section 7.1.15 or Section 8.5. 

“Guaranty Agreement” means that certain Guaranty Agreement (Non-Recourse Carveout) (CT/NJ Loan), dated as of the Closing Date, made by Guarantor to Administrative Agent for the benefit of Lender, as the same may be amended, restated, supplemented, reaffirmed, replaced or otherwise modified from time to time.

“Improvements” has the meaning, with respect to an Individual Property, set forth in the applicable Security Instrument encumbering such Individual Property.

“Indebtedness” means, as of the date of any determination thereof, (i) all indebtedness for borrowed money or purchase money financing, (ii) all indebtedness evidenced by a note, bond, debenture or similar instrument, (iii) the face amount of all letters of credit and, without duplication, all unreimbursed amounts drawn thereunder, (iv) all payment obligations under any interest rate protection agreements, currency swaps or similar agreements (if any), and (v) all other indebtedness.

“Indemnified Parties” means, collectively, Administrative Agent, Lender, any prior owner or holder of any Note, the Servicer and any existing or prior servicer of the Loan, any trustee under the Security Instruments, each Affiliate of the foregoing Persons and the legal representatives, successors and assigns of each of the foregoing Persons.

“Independent Manager” means an individual who has prior experience as an independent manager, independent director or independent member with at least three (3) years of employment experience and who is provided by CT Corporation, Corporation Service Company, National Registered Agents, Inc., Wilmington Trust Company, Stewart Management Company, Lord Securities Corporation or, if none of those companies is then providing professional Independent Managers, another nationally-recognized company reasonably approved by Administrative Agent, in each case that is not an Affiliate of the Borrowers and that provides professional Independent Managers and other corporate services in the ordinary course of its business, and which individual is duly appointed as an Independent Manager of the Borrowers and/or Managing Member and is not, and has never been, and will not while serving as Independent Manager be, any of the following:

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153758634 Loan Agreement (CT/NJ Loan) - GTJ Portfolio Refinancing - AIG

	
(i)
	
a member, partner, equityholder, manager, director, officer or employee of the Borrowers and/or Managing Member or any of their equityholders or Affiliates (other than as an Independent Manager of the Borrowers, Managing Member or an Affiliate of the Borrowers or Managing Member that does not own a direct or indirect ownership interest in the Borrowers or Managing Member and that is required by a creditor to be a single-purpose entity, provided that such Independent Manager is employed by a company that routinely provides professional Independent Managers or managers in the ordinary course of its business);

	
(ii)
	
a creditor, supplier or service provider (including provider of professional services) to the Borrowers or Managing Member or any of their respective equityholders or Affiliates (other than a nationally-recognized company that routinely provides professional Independent Managers and other corporate services to the Borrowers, Managing Member or any of their Affiliates in the ordinary course of its business);

	
(iii)
	
a family member of any such member, partner, equityholder, manager, director, officer, employee, creditor, supplier or service provider; or

	
(iv)
	
a Person that controls (whether directly, indirectly or otherwise) any of (i), (ii) or (iii) above.

“Individual Property” has the meaning set forth in the definition of “Property”.

“Initial Additional Financing Term Sheet” has the meaning set forth in Section 8.4.5(C).

“Initial TI/Leasing Commissions/Capital Improvement Reserve Funds” has the meaning set forth in Section 4.3.1  

“Insurance Reserve Account” means any reserve account or subaccount (including any subaccount established on a ledger or book-entry basis within another account, and not as a separate account) in which Administrative Agent or Servicer holds the deposits for insurance premiums made pursuant to Section 4.2.

“Intangible Personalty” has the meaning, with respect to an Individual Property, set forth in the applicable Security Instrument encumbering such Individual Property.

“Intellectual Property” has the meaning, with respect to an Individual Property, set forth in the applicable Security Instrument encumbering such Individual Property.

“Intercreditor Agreement” has the meaning set forth in Section 8.4.3(H).

“Interest Rate” has the meaning forth in Section 2.2.1.

“Interim Budget” has the meaning set forth in Section 3.8.2(A).

“Interim Deposit Account” has the meaning set forth in Section 3.1.3.

“Land” has the meaning, with respect to an Individual Property, set forth in the applicable Security Instrument encumbering such Individual Property.

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“Landmark Pledgees” means, collectively, (i) Landmark Portfolio Mezz LLC, a New York limited liability company, and (ii) Landmark Tower Debt Parent LLC, a New York limited liability company.

“Lease Approval Deliveries” has the meaning set forth in Section 7.1.13(C).

“Leases” means any and all present and future leases, subleases, licenses or other use and occupancy agreements (including all amendments, modifications, supplements, side letters and guaranties with respect thereto) under the terms of which any Person other than any Borrower has or acquires any right to occupy or use the Property, or any part thereof, excluding utility and other easements that are Permitted Encumbrances.

“Leasing Commissions” means any leasing commissions incurred under any leasing, brokerage or agency agreement in connection with any Lease.

“Legal Requirements” means all present and future federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions imposed by any Governmental Authority (including all building, zoning and other land use laws and regulations, Environmental Laws (as defined in the Environmental Indemnity Agreement), ecological laws, the Americans with Disability Act of 1990 (as amended from time to time, and any successor statute or statutes, and all rules and regulations from time to time promulgated thereunder) and all other laws or requirements regarding access for persons with disabilities), and all Permits relating thereto, and all public or private covenants, agreements, restrictions and encumbrances contained in any Property Record Agreements or other instruments at any time in force affecting the Property or any part thereof (entered into with any Governmental Authority or any other third party).

“Lender” has the meaning set forth in the introductory paragraph of this Agreement.

“Lien” means any mortgage, deed of trust, lien (statutory or other), pledge, hypothecation, assignment, security interest, or any other encumbrance or charge, including any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, any financing statement or similar instrument under the UCC or comparable law of any other jurisdiction, domestic or foreign, and any Mechanic’s Liens and other similar liens and encumbrances, in each case regardless of whether the same is subordinate to the lien(s) created by the Security Instruments, this Agreement or any other Loan Document.

“Liquidity Deposit” has the meaning set forth in Section 7.1.16.

“Listing Agreement” has the meaning set forth in Section 7.1.10(B).

“Loan” has the meaning set forth in the Recitals.

“Loan Debt Service Payments” means the regularly scheduled payments of principal and/or interest, as applicable, required to be paid hereunder and under the Notes during each month or during any other specified period, as applicable.

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“Loan Documents” means this Agreement, the Notes, the Security Instruments, the Environmental Indemnity Agreement, the Guaranty Agreement, the Affiliate Guaranty (Portfolio Borrowers), the Assignments of Leases and Rents, the Pledge and Security Agreement, the Organizational Certificate, any Subordination of Property Management Agreement, any Subordination of Listing Agreement, the UCC-1 Financing Statements, the Cross-Collateralized Loan Documents and all other agreements, instruments, certificates and documents (other than the organizational documents of any Borrower or any of any Borrower’s Affiliates) executed or delivered by any Borrower, Guarantor and/or any of their respective Affiliates in connection with the Secured Obligations or otherwise in connection with the Transactions.  The term “Loan Documents” also includes all amendments, restatements, modifications, supplements, extensions, renewals, reaffirmations and replacements of each document referred to above.

“Loan Modification” has the meaning set forth in Section 11.17. 

“Lockout Expiration Date” has the meaning set forth in Section 2.3.1.

“Losses” means, collectively, all actual losses from claims, suits, liabilities, administrative and judicial actions, proceedings, obligations, debts, damages, losses, costs, expenses, fines, penalties, charges, fees, judgments, awards, amounts paid in settlement, and litigation costs of whatever kind or nature (including actual out-of-pocket attorneys’ fees and all other actual out-of-pocket costs of defense). The liability of Borrowers in respect of such “losses” shall be limited to actual losses and shall not include any claims for special, indirect, exemplary or consequential damages except to the extent Administrative Agent and/or Lender are required to make payment therefor to a third party or such damages are prescribed by applicable law. 

“Managing Member” means GTJ Realty, LP, a Delaware limited partnership.

 “Maturity Date” means September 1, 2032.  

“Maximum TI/Leasing Commissions/Capital Improvement Reserve Amount” has the meaning set forth in Section 4.3.2. 

“Mechanic’s Lien” means any Lien filed by (or on behalf of) any contractor, materialman or other Person in connection with any work performed, or services or materials provided, with respect to the Property or any portion thereof, in each case regardless of whether the same is subordinate to the Lien(s) created by the Security Instruments, this Agreement or any other Loan Document.

“Minimum Guarantor Available Liquidity Requirement” means Guarantor has an aggregate Available Liquidity of not less than Three Million Five Hundred Thousand Dollars ($3,500,000.00).  For the purposes of this definition, so long as GTJ REIT is the Guarantor,  the term “Guarantor” shall be deemed to include the following entities to the extent GTJ REIT retains an ownership interest in such entities: Wu/LH 466 Bridgeport L.L.C., Wu/LH 950 Bridgeport L.L.C., Wu/LH 15 Progress L.L,C, Wu/LH 103 Fairview Park L.L.C., Wu/LH 404 Fieldcrest L.L.C., Wu/LH 300 American L.L.C., Wu/LH 500 American L.L.C., GWL 110 Old County LLC, GWL Windsor Land LLC, GWL Borden LLC, GWL 20 East Halsey LLC, GWL 4 Corporate LLC, GWL 8 Corporate LLC, GWL 11 Constitution LLC, GWL 21 Constitution LLC, GWL 25 Corporate LLC, GWL 1110 Centennial LLC, GWL 606 Cozine LLC, GWL 300 McIntire LLC, 

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153758634 Loan Agreement (CT/NJ Loan) - GTJ Portfolio Refinancing - AIG

GWL 1938 Olney LLC,  GWL 201 Neelytown LLC,  GWL 625 Wortman LLC (each a Delaware limited liability company), 23-85 87th Street, LLC, a New York limited liability company, and 612 Wortman Avenue, LLC, a New York limited liability company.

“Minimum Guarantor Financial Requirement” means, collectively, (i) the Minimum Guarantor Available Liquidity Requirement and (ii) the Minimum Guarantor Net Worth Requirement.  

“Minimum Guarantor Net Worth Requirement” means Guarantor has an aggregate Net Worth of not less than Fifty Million Dollars ($50,000,000.00). For the purposes of this definition, so long as GTJ REIT is the Guarantor,  the term “Guarantor” shall be deemed to include the following entities to the extent GTJ REIT retains an ownership interest in such entities: Wu/LH 466 Bridgeport L.L.C., Wu/LH 950 Bridgeport L.L.C., Wu/LH 15 Progress L.L,C, Wu/LH 103 Fairview Park L.L.C., Wu/LH 404 Fieldcrest L.L.C., Wu/LH 300 American L.L.C., Wu/LH 500 American L.L.C., GWL 110 Old County LLC, GWL Windsor Land LLC, GWL Borden LLC, GWL 20 East Halsey LLC, GWL 4 Corporate LLC, GWL 8 Corporate LLC, GWL 11 Constitution LLC, GWL 21 Constitution LLC, GWL 25 Corporate LLC, GWL 1110 Centennial LLC, GWL 606 Cozine LLC, GWL 300 McIntire LLC, GWL 1938 Olney LLC,  GWL 201 Neelytown LLC,  GWL 625 Wortman LLC (each a Delaware limited liability company), 23-85 87th Street, LLC, a New York limited liability company, and 612 Wortman Avenue, LLC, a New York limited liability company.  

“Monthly Impounds” means monthly amounts required to be deposited with Administrative Agent pursuant to Section 4.1 and Section 4.2.

“Monthly TI/Leasing Commissions/Capital Improvement Reserve Payment” has the meaning set forth in Section 4.3.1  

“Net Operating Income” means all Gross Revenue, less Operating Expenses, as determined on a cash basis of accounting, in each case, as of the date of such calculation for the period in question (or if no such period is designated, in each case, for the twelve (12) calendar months immediately preceding the date of calculation); provided, however, for the purposes of calculating Net Operating Income:  (i) Operating Expenses shall be adjusted:  (A) to include (I) a management fee equal to the greater of the actual management fee for the Property or four percent (4.0%) of Gross Revenue generated by the Property, and (II) a tenant improvement, leasing commission, and capital improvement reserve equal to $0.75 per rentable square foot per year; (B) such that payments of Operating Expenses, including Property Impositions and insurance premiums, shall be spread out over the period during which such Operating Expenses accrued and shall be adjusted for any known future changes to any such Operating Expenses; (C) to exclude extraordinary or one-time items; and (D) such that any refunds or rebates to Operating Expenses shall be applied and credited against the applicable Operating Expenses for the period during which such Operating Expenses were incurred; and (ii) Gross Revenue shall be adjusted:  (A) such that any prepaid Gross Revenue and other prepayments received by or on behalf of Borrowers shall be spread out over the periods during which such Gross Revenue is earned or applied by or on behalf of Borrowers, as applicable; (B) such that security deposits shall not be included as Gross Revenue until duly earned or applied by or on behalf of Borrowers, as applicable; (C) to exclude loans, Capital Proceeds, contributions to capital and extraordinary or one-time items; and (D) to be calculated 

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based on a lease-in-place analysis that reflects the then-current Leases in place as of the date of determination, in each case, as determined by Administrative Agent in accordance with Administrative Agent’s then-current standard underwriting criteria, consistently applied (but expressly excluding from such analysis any Lease in which (I) the Tenant thereunder is in default in the payment of base rent for thirty (30) days or more or there exists a material nonmonetary default under such Lease, (II) the Tenant thereunder is in bankruptcy or other similar insolvency proceeding, (III) there is a materially significant probability, as determined by Administrative Agent based upon reasonable third-party evidence, that the Tenant thereunder will file bankruptcy or seek protection from creditors in another similar insolvency proceeding, (IV) Intentionally Omitted, (V) the term remaining thereunder, not including any unexercised extension options, is equal to or less than six (6) months, or (VI) with respect to a retail Lease, the Tenant thereunder is no longer in occupancy or has otherwise “gone dark”).

“Net Worth” means, as of a given date with respect to any Person, the excess, if any, of (i) total assets of such Person (excluding the Property or any direct or indirect interest in the Property or Borrowers) over (ii) total liabilities (excluding contingent liabilities) of such Person, with the value of such Person’s partnership or member interest or other ownership in any partnership, limited liability company or other entity (each a “Property Owning Entity”) calculated by assuming a sale at fair market value of all assets of such Property Owning Entity and the distribution of the net proceeds in liquidation, calculated in the same manner and using the same accounting methods as were used in the financial statements of such Person delivered to Administrative Agent in connection with the closing of the Loan.

“New Borrower Party” has the meaning set forth in Section 8.3.2(H).

“New Jersey Borrowers” has the meaning set forth in Schedule 1. “New Jersey Borrower” means any one (1) of the New Jersey Borrowers.

“New Jersey Properties” has the meaning set forth in Schedule 2. “New Jersey Property” means any one (1) of the New Jersey Properties.

“Non-Cash Management Period” means any period of time during which a Cash Management Period does not exist.

“Non-Discretionary Expenses” means expenses any Borrower is required to pay (i) for Property Impositions, insurance premiums and utilities serving the Property or (ii) to avoid imminent danger to life or imminent damage to the Property, in each case, to the extent not included in the Approved Budget or Interim Budget, as applicable.

“Notes” means, collectively, the Co-Lender 1 Note, the Co-Lender 1 TF1B Note, the Co-Lender 2 Note, the Co-Lender 3 Note, and if applicable, each additional promissory note executed by Borrowers payable to the order of a Lender, as the same may be amended, restated, supplemented, extended, consolidated, split, severed, replaced (whether by one or more replacement notes) or otherwise modified from time to time (including in connection with a Loan Modification effectuated pursuant to this Agreement).

“O&M Program” has the meaning set forth in Section 7.1.4(E).

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“OFAC” has the meaning set forth in the definition of the term “Prohibited Person”.

“OFAC Listed Person” has the meaning set forth in the definition of the term “Prohibited Person”.

“Operating Expenses” means, in the aggregate with respect to the Property during any period, all operating costs and expenses actually incurred by any Borrower and due and payable during such period in respect of the Property, including property management fees payable pursuant to any Property Management Agreement approved by Administrative Agent; provided that Operating Expenses shall not include the following:  (i) Capital Expenditures; (ii) depreciation and other income tax related bookkeeping entries that do not result in the payment of monies; (iii) amounts to be deposited into the Deposit Account pursuant to the terms of Section 3.2; (iv) Loan Debt Service Payments and other amounts due under the Loan Documents (including the amount of any and all Monthly Impounds); (v) refunds or credits actually paid by any Borrower to Tenants for overpayment of Property Impositions, insurance premiums or other expenses pursuant to the Leases; or (vi) any expenses related to operations of any Borrower or any Borrower Owner Person and not the Property, including asset management and similar fees. As the context may require, “Operating Expenses” means, the Operating Expenses from any Individual Property, any two (2) or more Individual Properties or all of the Property.

“Operating Expense Overpayment” has the meaning set forth in Section 3.8.1(C).

“Organizational Certificate” means the Certificate Concerning Governing Documents (CT/NJ Loan), dated as of the Closing Date, made by Borrowers and Guarantor to Administrative Agent for the benefit of Lender.

“Organizational Chart” means an organizational chart that sets forth each of the Persons that directly or indirectly own, manage or Control each Borrower and Guarantor, the percentage interests held by each such Person and the type of entity of each such Person that is an entity.

“PATRIOT Act” has the meaning set forth in the definition of the term “Prohibited Person”.

“Payment Date” means the first day of each calendar month, commencing on the first day of the second full calendar month following the Stub Interest Period through and including the first day of the calendar month immediately preceding the Maturity Date.  For the avoidance of doubt, the first Payment Date shall be October 1, 2022.

“Payment Notice” has the meaning set forth in Section 3.3.1.

“Permits” has the meaning, with respect to an Individual Property, set forth in the applicable Security Instrument encumbering such Individual Property.

“Permitted Additional Financing Conditions” has the meaning set forth in Section 8.4.3.

“Permitted Additional Financing” has the meaning set forth in Section 8.4.3.

“Permitted Additional Financing Notice” has the meaning set forth in Section 8.4.3(A).

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“Permitted Alterations” means any one of the following: (i) non-structural alterations that do not affect any of the Building Systems or alter the function or utility of the Improvements (such as painting, landscaping, installing new floor coverings) having an aggregate cost (together with any related alterations) at any one time of not more than $150,000.00 per Individual Property; (ii) non-structural alterations that do not affect any of the Building Systems or alter the function or utility of the Improvements that are performed in connection with any tenant improvement work or other work required to be performed by Borrowers or permitted to be performed by the applicable Tenant pursuant to any Lease existing on the date hereof or entered into after the date hereof in accordance with this Agreement, so long as all such tenant improvement work or other work is reasonably detailed in such Lease; and (iii)  all alterations to be paid for by Capital Proceeds released to Borrowers in accordance with this Agreement.

“Permitted Encumbrances” means, with respect to any Borrower, (A) the matters set forth on the Exhibit B of the Security Instruments; (B)(i) liens for taxes, assessments or similar charges incurred in the ordinary course of business of any Borrower that are not yet delinquent and/or subject to any late fees or penalties; and (ii) liens in favor of Administrative Agent or Lender; and (C) any other matters consented to by Administrative Agent (in Administrative Agent’s sole and absolute discretion) in writing.

“Permitted Equipment Financing” has the meaning set forth in Section 8.4.1.

“Permitted Indebtedness” means, (a) the Loan and (b) any Permitted Trade Payables and/or Permitted Equipment Financing that satisfies each of the applicable conditions set forth in Section 8.4.2.

“Permitted Mezzanine Borrower” means either of (x) the Persons holding 100% of the ownership interests in Managing Member at the time of the delivery of the Permitted Additional Financing Notice, or (y) a newly formed Single Purpose Entity that is formed for the sole purpose of holding 100% of the ownership interests in and to the Person that owns 100% of the ownership interests in and to each Borrower, and which Single Purpose Entity is owned 100% by Managing Member.

“Permitted Mezzanine Collateral” means either of (x) 100% of the ownership interests in and to Managing Member or (y) 100% of the ownership interest in and to a newly formed Single Purpose Entity that is formed for the sole purpose of holding 100% of the ownership interests in and to each Borrower, and which Single Purpose Entity is owned 100% by Managing Member.

“Permitted Operating Expense Deviations” has the meaning set forth in Section 3.8.2(B).

“Permitted Trade Payables” has the meaning set forth in Section 8.4.1.

“Permitted Transfer Conditions” has the meaning set forth in Section 8.3.2.

“Permitted Transfer Deposit” has the meaning set forth in Section 8.3.2(H).

“Permitted Transfer Notice” has the meaning set forth in Section 8.3.2(H).

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“Person” means any individual, corporation, association, joint stock company, trust, business trust, partnership, joint venture, limited liability company, real estate investment trust, unincorporated organization, or government or any agency or political subdivision thereof or any other entity (whether incorporated or unincorporated).

“Pledge Collateral” has the meaning set forth in the Pledge and Security Agreement.

“Pledge and Security Agreement” means the Pledge and Security Agreement (CT/NJ Loan) of even date herewith executed by GTJ Realty in favor of Administrative Agent for the benefit of Lender, as the same may be modified, amended and/or supplemented from time to time.

“Pledge and Security Agreement Obligations” means collectively, the “Obligations” as defined in the Pledge and Security Agreement.

“Portfolio Debt Service Coverage Ratio” means the ratio, as reasonably determined by Administrative Agent as of any date of determination, of (i) the Portfolio Net Operating Income for the immediately preceding twelve (12) calendar month period, to (ii) the aggregate amount of (x) the annual Portfolio Loan Debt Service Payments due under the Loan Documents and the Cross-Collateralized Loan Documents and (y) the debt service payments due in respect of all indebtedness secured or to be secured by a lien on all or any portion of the Property, the Cross-Collateralized Portfolio or any direct or indirect interest in any Borrower or Cross-Collateralized Borrower, in each case, for the next twelve (12) calendar month period.  Portfolio Debt Service Coverage Ratio shall be calculated on a cash flow basis.

“Portfolio Gross Revenue” means, for any period, the aggregate amount of Gross Revenue generated by the Property and the Gross Revenue (as defined in the Cross-Collateralized Loan Agreement) generated by the Cross-Collateralized Portfolio.  

“Portfolio Loan Debt Service Payments” means the regularly scheduled payments of principal and/or interest, as applicable, required to be paid (i) hereunder and under the Notes during each month or during any other specified period, as applicable, and (ii) under the Cross-Collateralized Loan Agreement and under the Cross-Collateralized Notes during each month or during any other specified period, as applicable.

“Portfolio Loan-to-Value Ratio” means the ratio, as determined by Administrative Agent, of (i) the aggregate principal balance of (a) the Principal Indebtedness and all undisbursed advances under the Notes, if any, and all other Indebtedness secured by Liens against all or any part of the Property, or against any of the direct or indirect ownership interests in one or more of the Borrowers, and (b) the Cross-Collateralized Notes and all other Indebtedness secured by liens or encumbrances against one or more of properties included in the Cross-Collateralized Portfolio or against the direct or indirect ownership interests in one or more of the Cross-Collateralized Borrowers, as of the date of determination, to (ii) the aggregate amount of (a) the fair market value of the Property and (b) the fair market value of the Cross-Collateralized Portfolio, in each case, as such fair market value is determined by Appraisals of the Property and the Cross-Collateralized Portfolio.  

“Portfolio Net Operating Income” means all Portfolio Gross Revenue, less Portfolio Operating Expenses, as determined on a cash basis of accounting, in each case, as of the date of 

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such calculation for the period in question (or if no such period is designated, in each case, for the twelve (12) calendar months immediately preceding the date of calculation); provided, however, for the purposes of calculating Portfolio Net Operating Income:  (i) Portfolio Operating Expenses shall be adjusted:  (A) to include (I) a management fee equal to the greater of the actual aggregate management fees for the Property and the Cross-Collateralized Portfolio or four percent (4.0%) of Portfolio Gross Revenue, and (II) a tenant improvement, leasing commission, and capital improvement reserve equal to $0.75 per rentable square foot per year; (B) such that payments of Portfolio Operating Expenses, including Property Impositions (as defined herein), Property Impositions (as defined in the Cross-Collateralized Loan Agreement), and insurance premiums, shall be spread out over the period during which such Portfolio Operating Expenses accrued and shall be adjusted for any known future changes to any such Portfolio Operating Expenses; (C) to exclude extraordinary or one-time items; and (D) such that any refunds or rebates to Portfolio Operating Expenses shall be applied and credited against the applicable Portfolio Operating Expenses for the period during which such Portfolio Operating Expenses were incurred; and (ii) Portfolio Gross Revenue shall be adjusted:  (A) such that any prepaid Portfolio Gross Revenue and other prepayments received by or on behalf of Borrowers or Cross Collateralized Borrowers shall be spread out over the periods during which such Portfolio Gross Revenue is earned or applied by or on behalf of Borrowers or Cross Collateralized Borrowers, as applicable; (B) such that security deposits shall not be included as Portfolio Gross Revenue until duly earned or applied by or on behalf of Borrowers or Cross Collateralized Borrowers, as applicable; (C) to exclude loans, Capital Proceeds (as defined herein), Capital Proceeds (as defined in the Cross-Collateralized Loan Agreement), contributions to capital and extraordinary or one-time items; and (D) to be calculated based on a lease-in-place analysis that reflects the then-current Leases (as defined herein) and Leases (as defined in the Cross-Collateralized Loan Agreement) in place as of the date of determination, in each case, as determined by Administrative Agent in accordance with Administrative Agent’s then-current standard underwriting criteria, consistently applied (but expressly excluding from such analysis any Lease (as defined herein) or Lease (as defined in the Cross-Collateralized Loan Agreement) in which (I) the Tenant (as defined herein) or Tenant (as defined in the Cross-Collateralized Loan Agreement) thereunder is in default in the payment of base rent for thirty (30) days or more or there exists a material nonmonetary default under such Lease (as defined herein) or Lease (as defined in the Cross-Collateralized Loan Agreement), (II) the Tenant (as defined herein) or Tenant (as defined in the Cross-Collateralized Loan Agreement) thereunder is in bankruptcy or other similar insolvency proceeding, (III) there is a materially significant probability, as determined by Administrative Agent, that the Tenant (as defined herein) or Tenant (as defined in the Cross-Collateralized Loan Agreement) thereunder will file bankruptcy or seek protection from creditors in another similar insolvency proceeding, (IV) the Tenant (as defined herein) or Tenant (as defined in the Cross-Collateralized Loan Agreement) thereunder has six (6) months or more free or abated rent under its Lease (as defined herein) or Lease (as defined in the Cross-Collateralized Loan Agreement) and the amount of such free or abated rent is not in a reserve held by Administrative Agent or Lender, (V) the term remaining thereunder, not including any unexercised extension options, is equal to or less than six (6) months, or (VI) with respect to a retail Lease (as defined herein) or retail Lease (as defined in the Cross-Collateralized Loan Agreement), the Tenant (as defined herein) or Tenant (as defined in the Cross-Collateralized Loan Agreement) thereunder is no longer in occupancy or has otherwise “gone dark”). 

“Portfolio Operating Expenses” means, in the aggregate with respect to the Property and the Cross-Collateralized Portfolio during any period, all operating costs and expenses actually 

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incurred by Borrowers and Cross Collateralized Borrowers and due and payable during such period in respect of the Property and the Cross-Collateralized Portfolio, including property management fees payable pursuant to any Property Management Agreement (as defined herein) or Property Management Agreement (as defined in the Cross-Collateralized Loan Agreement) approved by Administrative Agent; provided that Portfolio Operating Expenses shall not include the following:  (i) Capital Expenditures (as defined herein) or Capital Expenditures (as defined in the ross-Collateralized Loan Agreement); (ii) depreciation and other income tax related bookkeeping entries that do not result in the payment of monies; (iii) amounts to be deposited into the Deposit Account pursuant to the terms of Section 3.2 hereof or into the Deposit Account (as defined in the Cross-Collateralized Loan Agreement) pursuant to the terms of Section 3.2 of the Cross-Collateralized Loan Agreement; (iv) Loan Debt Service Payments and other amounts due under the Loan Documents (including the amount of any and all Monthly Impounds) and any amounts due under the Cross-Collateralized Loan Documents; (v) refunds or credits actually paid by Borrowers or Cross Collateralized Borrowers to (a) Tenants (as defined herein) for overpayment of Property Impositions, insurance premiums or other expenses pursuant to the Leases or (b) Tenants (as defined in the Cross-Collateralized Loan Agreement) for overpayment of Property Impositions (as defined in the Cross-Collateralized Loan Agreement), insurance premiums or other expenses pursuant to the Leases (as defined in the Cross-Collateralized Loan Agreement); or (vi) any expenses related to operations of Borrowers, Cross Collateralized Borrowers or any Borrower Owner Person and not the Property or the Cross-Collateralized Portfolio, including asset management and similar fees. As the context may require, “Portfolio Operating Expenses” means the Portfolio Operating Expenses from any Individual Property or any individual property in the Cross-Collateralized Portfolio, any two (2) or more Individual Properties or properties in the Cross-Collateralized Portfolio, or all of the Property and the Cross-Collateralized Portfolio.

“Present Value of the Loan” means, with respect to a prepayment of the Principal Indebtedness, the aggregate amount of all Loan Debt Service Payments remaining from the date of such prepayment to the Maturity Date, attributed to the amount being prepaid, discounted at the interest rate that, when compounded monthly, is equivalent to the Treasury Rate plus 0.25%, when compounded semi-annually.  If prepayment occurs on a date other than a regularly scheduled Payment Date, the actual number of days remaining from the prepayment date to the next Payment Date will be used to calculate such discount within such period.

“Principal” or “Principals” has the definition as set forth in Section 8.3.1(B) of this Agreement.

“Principal Indebtedness” means the aggregate principal amount of the Loan outstanding as of the date of determination.

“Prohibited Person” means:

(i)any Person that is identified on the list of Specially Designated Nationals and Blocked Persons, the list of Foreign Sanctions Evaders or the Sectorial Sanctions Identifications list (collectively, an “OFAC Listed Person”) published by the Office of Foreign Assets Control, United States Department of the Treasury (“OFAC”), or is restricted from doing business under any statute (including the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56) (the “PATRIOT 

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Act”), executive order (including the September 24, 2001 Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism and the Annex thereto, collectively, the “Executive Order”), or other governmental action relating to terrorism financing, terrorism support and/or otherwise relating to terrorism;

(ii)any agent, department, or instrumentality of, or any Person otherwise beneficially owned by, Controlled by or acting on behalf of, directly or indirectly, (a) any OFAC Listed Person or (b) any Person that is the target of any sanctions programs administered and/or enforced by OFAC;

(iii)any Person that is otherwise blocked by or a target of United States economic sanctions;

(iv)any Person that (a) has been found in violation of, charged with, or convicted of, money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes under the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act), 18 U.S.C. §§ 1956 and 1957, the PATRIOT Act or any other United States law or regulation governing such activities (collectively, “Anti-Money Laundering Laws”) or any United States economic sanctions violations, (b) to Borrowers’ actual knowledge after making due inquiry, is under investigation by any Governmental Authority for possible violation of Anti-Money Laundering Laws or any United States economic sanctions violations, (c) has been assessed civil penalties under any Anti-Money Laundering Laws or any United States economic sanctions, or (d) has had any of its funds seized or forfeited in an action under any Anti-Money Laundering Laws;

(v)any Person that (a) is owned or Controlled by the government of any country or territory that is subject to United States sanctions (the “Sanctioned Countries”) (unless and until any such country or region ceases to be subject to United States sanctions, as evidenced by reference to OFAC’s online resource center (at https://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx) or similar source), (b) is located in any Sanctioned Countries, or (c) does business in or with any Sanctioned Countries; or

(vi)any Person that (a) is in violation of the Foreign Corrupt Practices Act of 1977 (15 U.S.C. §§ 78dd-1, et seq.), (b) is in violation of the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010, or (c) has engaged or will engage in or has conspired or will conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in the Executive Order or any statutes, laws or regulations referred to in this definition of “Prohibited Person”.  

“Property” means, collectively, all of the properties listed on Schedule 2 (as more particularly described in the applicable Security Instruments) or any one or more of such properties as the context may require, excluding any Individual Property that is released pursuant to Section 8.6. Without limiting the foregoing, each individual Property is sometimes herein referred to as an “Individual Property” and all the Property collectively is sometimes herein referred to as the “Properties”.

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“Property Impositions” means all taxes (or payments in lieu thereof), assessments (general or special) and similar governmental charges that may be levied or imposed at any time against the Property or other Collateral.

“Property Management Agreement” has the meaning set forth in Section 7.1.10(A).

“Property Manager” has the meaning set forth in Section 7.1.10(A).

“Property Record Agreement” means any reciprocal easement agreement, unilateral easement agreement, access agreement, right of way agreement or similar agreement affecting the Land or the Improvements, including any agreement of record that may (i) require construction, repairs, modifications, alterations or maintenance of the Improvements or any other portion of the Property or (ii) in any way limit the use and enjoyment of the Property.

“Protective Advance(s)” means any advance by Lender with respect to (i) the payment of any delinquent Property Impositions or insurance premiums owed with respect to the Property, (ii) except for any Permitted Encumbrances, the removal of any Lien on the Property or the defense of Borrowers’ or Lender’s title or interest thereto or the defense of the validity, enforceability, perfection or priority of the Liens granted pursuant to the Loan Documents, (iii) the preservation of the value of the Property, including payments of water, heating, gas, electric and other utility bills, (iv) the payment of amounts necessary to satisfy Borrowers’ obligations under any Leases or Contracts (including the payment of any Tenant Improvement Costs and Leasing Expenses), and/or (v) the payment of any Capital Expenditures or any maintenance or repair costs and expenses that may be necessary or advisable to be incurred in connection with the Property.

“Qualified Mezzanine Lender” means any insurance company, bank, savings and loan association, trust company, commercial credit corporation, investment bank, pension fund, pension plan, pension advisory firm, mutual fund, government entity or plan, investment company, money management firm and sovereign wealth fund, as well as any real estate investment trust, investment fund, limited liability company, limited partnership or general partnership in which an entity that is otherwise a Qualified Mezzanine Lender acts as the general partner, managing member or fund manager thereof, that in each case, (A) such entity, or such entity’s general partner, managing member or fund manager (together with the Affiliates of such entity or such entity’s general partner, managing member or fund manager) has total assets (in name or under management) in excess of $750,000,000.00 and a combined capital and surplus and shareholder’s equity (or, in the case of an insurance company, policyholder surplus) of at least $225,000,000.00 (which total assets and shareholder’s equity or policyholder’s surplus, as applicable, shall be calculated based upon the total assets and combined capital and surplus and shareholder’s equity (or policyholder surplus, as applicable), with respect to all entities constituting a Qualified Mezzanine Lender in the aggregate, provided that each such entity individually satisfies its pro rata share of such minimum required total assets and combined capital and surplus and shareholder’s equity (or policyholder surplus, as applicable)), and (B) such entity is regularly engaged in the business of making or owning (or in the case of a fund advisor or manager, advising or managing with respect to a fund that is regularly engaged in the business of making or owning) and managing commercial mortgage or mezzanine real estate loans.

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153758634 Loan Agreement (CT/NJ Loan) - GTJ Portfolio Refinancing - AIG

 “Reconciliation Period” means the six (6) month period consisting of (i) the first (1st) and second (2nd) quarters of a calendar year and (ii) the third (3rd) and fourth (4th) quarters of a calendar year, as applicable.

“Reconciliation Report” means the report delivered by Borrowers to Administrative Agent during a Cash Management Period containing (i) a reconciliation of all actual Operating Expenses (including an itemization and reasonably detailed description of any and all Permitted Operating Expense Deviations) paid by Borrowers during the applicable Reconciliation Period, compared to (a) Budgeted Operating Expenses during such Reconciliation Period and (b) all disbursements for Operating Expenses made pursuant to Section 3.4.2(C) during such Reconciliation Period, and (ii) a reconciliation of actual Gross Revenue generated during such Reconciliation Period against (a) the projected Gross Revenue reflected in the Approved Budget, and (b) amounts actually remitted to the Deposit Account.

“REIT Board” means, collectively, the board of directors of GTJ REIT.

“REIT Distributions” has the meaning set forth in Section 3.4.2(I).

“Release Amount” has the meaning set forth in Section 8.6.1(E).

“Release Conditions” has the meaning set forth in Section 8.6.1.

“Release Date” has the meaning set forth in Section 8.6.1.

“Release Lockout Date” means, the period commencing on the Closing Date and ending on September 1, 2025. 

“Release Request” has the meaning set forth in Section 8.6.1(A).

“Released Property” has the meaning set forth in Section 8.6.1.

“Relevant Documents” has the meaning set forth in the Pledge and Security Agreement.

“Remaining Properties” has the meaning set forth in Section 8.6.1.

“Replacement Documents” has the meaning set forth in Section 9.1.8.

 “Rent Roll” means a rent roll for an Individual Property in the form attached hereto as Schedule 9, or such other form as approved by Administrative Agent in writing prior to delivery thereof to Administrative Agent.

“Reporting Company” means each Borrower, Guarantor, each other Borrower Owner Person, and each of such Person’s direct or indirect managers, members, partners, shareholders, affiliates or controlling persons that are entities and are considered “Reporting Companies” as such term is defined in the Corporate Transparency Act. 

“Required Insurance Policies” means the insurance policies that Borrowers are required to obtain and maintain pursuant to the terms of Article 9.

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“Required Tenant” means (i) any of the Tenants identified on Schedule 5 and (ii) any other Tenant that occupies (in the aggregate, together with any Affiliates of such Tenant) 50,000 square feet or more of rentable space at the Property.

“Return Event” means the occurrence of the applicable Default Return Event or the DSCR Return Event with respect to any Cash Management Event that has occurred; provided that, notwithstanding anything to the contrary herein, no “Return Event” may occur (i) with respect to any Cash Management Event caused by an Event of Default, or (ii) if, during the applicable Cash Management Period, any additional Cash Management Event has occurred and is continuing, or (iii) if a Cash Management Period has commenced an aggregate of three (3) times.

“Right of First Refusal” has the meaning set forth in Section 8.4.4.

“Right of First Refusal Information and Materials” has the meaning set forth in Section 8.4.5(B).

“Right of First Refusal Initial Consideration Period” has the meaning set forth in in Section 8.4.5(C).

“Safe Harbor Lease” has the meaning set forth on Schedule 8 attached hereto.

“Sanctioned Countries” has the meaning set forth in the definition of “Prohibited Person”.

 “Secured Obligations” means the Principal Indebtedness and all interest accruing thereon, together with all other present and future obligations of Borrowers to Lender and Administrative Agent evidenced by or contained in the Notes, this Agreement, all other Loan Documents, and the Cross-Collateralized Loan Documents, whether stated in the form of promises, covenants, representations, warranties, conditions, or prohibitions or in any other form, whether absolute or contingent, direct or indirect, joint, several or independent, now outstanding or owing, or that may hereafter be existing or incurred, arising by operation of law or otherwise, due or to become due under the Loan Documents, and/or are in any way secured by the Property or any other Collateral or Pledge Collateral now or hereafter provided to Lender as collateral for the Loan, including any Protective Advance.

“Securitization” has the meaning set forth in Section 11.17.

“Security Documents” means, the Security Instruments, the Assignments of Leases and Rents, the Pledge and Security Agreement, the UCC-1 Financing Statement and such other documents as Borrowers may, from time to time, execute to secure the Secured Obligations under the Loan and the other Loan Documents.

“Security Instrument” means, (i) with respect to each Connecticut Property, the Amended and Restated Open-End Mortgage, Spreader, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated as of the Closing Date, encumbering such Connecticut Property, from the applicable Connecticut Borrower in favor of Administrative Agent for the benefit of Lender, as any of the same may be amended, restated, supplemented and/or modified from time to time, and (ii) with respect to each New Jersey Property, the Amended and Restated Mortgage, Spreader and Security Agreement, Fixture Filing, Financing Statement and Assignment 

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of Leases and Rents, dated as of the Closing Date, encumbering such New Jersey Property, from the applicable New Jersey Borrower in favor of Administrative Agent for the benefit of Lender, as any of the same may be amended, restated, supplemented and/or modified from time to time.  “Security Instruments” means two (2) or more Security Instruments or, as the context may require, all of the Security Instruments in respect of the Property.

“Servicer” means the loan servicer selected and retained by Administrative Agent to perform servicing functions in respect of the Secured Obligations and to which Administrative Agent may delegate all or any portion of Administrative Agent’s responsibilities under this Agreement and the other Loan Documents.

“Single Purpose Entity” means a Person, other than an individual, that (i) is formed or organized solely for the purpose of holding, directly, an ownership interest in the applicable Individual Property, or any portion thereof, (ii) does not engage in any business other than the ownership, management and operation of the applicable Individual Property, (iii) does not have any (a) assets other than those related to its interest in the applicable Individual Property or (b) Indebtedness other than the Secured Obligations and any Permitted Indebtedness, (iv) does not guarantee or otherwise become liable on, or in connection with, any obligation of any other Person (or acquire obligations or securities of its Affiliates) (other than in respect of the Affiliate Guaranty (Portfolio Borrowers)), (v) does not enter into any contract or agreement with any Affiliate, except upon terms and conditions that are intrinsically fair and substantially similar to those that would be available on an arm’s length basis with third parties other than an Affiliate, (vi) does not incur, create or assume any Indebtedness (except for the Secured Obligations and Permitted Indebtedness), (vii) does not make any loans or advances to any other Person (including any Affiliate), (viii) subject to availability of funds from the operations of the applicable Individual Property, does not become insolvent or fail to pay its debts as the same become due (provided that nothing in this clause (viii) shall require any owner or principal of any Borrower or any other Person to make any capital contribution or other contribution of cash or assets to any Borrower), (ix) does not fail to conduct and operate its business in all material respects as presently conducted and operated, (x) does not fail to maintain its books, records, bank accounts and financial statements separately from those of such Person’s Affiliates, including its general partners or members, as may be applicable, (xi) does not fail at all times to hold itself out to the public as a legal entity separate and apart from any other Person (including any Affiliate (including any stockholder, partner, member, trustee, beneficiary, or other owner of any Borrower or any Affiliate of any such stockholder, partner, member, trustee, beneficiary, or other owner)), (xii) does not fail to file its own tax returns (except to the extent such Person is a disregarded entity and such Person consolidates its tax returns with the tax returns of the applicable regarded entity); (xiii) subject to availability of funds from the operations of the applicable Individual Property, does not fail to maintain adequate capital for its normal obligations, reasonably foreseeable in a business of its size and character and in light of its contemplated business operations (provided that nothing in this clause (xiii) shall require any owner or principal of any Borrower or any other Person to make any capital contribution or other contribution of cash or assets to any Borrower), (xiv) does not commingle its assets with any Affiliate or any other Person, and does not otherwise fail to maintain its assets in such a manner that it is not costly or difficult to segregate, ascertain or identify its individual assets from those of any Affiliate (other than the other Borrowers or the Cross-Collateralized Borrowers) or any other Person, (xv) does not hold itself out to be responsible for the Indebtedness (other than with respect to each Borrower’s obligations under this Agreement 

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and in respect of the Affiliate Guaranty (Portfolio Borrowers)) of any other Person, (xvi) is subject to and complies with all of the limitations on powers set forth in the organizational documents of such Person (and the organizational documents of each general partner or managing member, as applicable, of such Person) as in effect on the Closing Date, and observes all applicable organizational formalities in all material respects, (xvii) holds all of its assets and conducts business in its own name, (xiii) utilizes its own letterhead, invoices and checks, (xix) holds title to its interest in the applicable Individual Property in its own name, (xx) allocates fairly and reasonably any overhead expenses that are shared with any Affiliate, including paying for office space and services performed by any employee of any Affiliate, (xxi) does not pledge its assets for the benefit of any other Person (other than Administrative Agent and/or Lender) (xxii) corrects any known misunderstandings regarding its separate identity, and (xxiii) has an operating or partnership agreement that provides that, until all of the Secured Obligations have been paid in full, such Person shall not take or consent to any of the following actions:  the dissolution, liquidation, consolidation, merger or sale of all or substantially all of such Person’s assets, or any division of such Person into multiple entities or series pursuant to Section 18-217 of the Delaware Limited Liability Company Act (or similar provision under the law of the applicable Person’s state of formation) or otherwise. 

“SNDA” means any Subordination, Non-Disturbance and Attornment Agreement entered into in accordance with this Agreement or any of the other Loan Documents.

“State” means the state or commonwealth in which the Land is located.

“Stub Interest Period” means the period from and including the Closing Date through and including August 31, 2022. 

“Subordination of Listing Agreement” means any Subordination of Listing Agreement entered into in accordance with Section 7.1.10, in each case, as the same may be amended, restated, supplemented or otherwise modified from time to time.

“Subordination of Property Management Agreement” means any Subordination of Property Management Agreement entered into in accordance with Section 7.1.10, in each case, as the same may be amended, restated, supplemented or otherwise modified from time to time.

“Survey” means (i) the ALTA/ACSM survey of each Individual Property certified to Administrative Agent and Lender, and approved by Administrative Agent, on or prior to the Closing Date and referred to in the applicable Title Policy and (ii) any other ALTA/ACSM survey of the Property certified to Administrative Agent and Lender and prepared by a registered independent surveyor, containing the form of survey certification provided to Borrowers by Administrative Agent and in form and content satisfactory to Administrative Agent.

“Tax Reserve Account” means any reserve account or subaccount (including any subaccount established on a ledger or book-entry basis within another account, and not as a separate account) in which Administrative Agent or Servicer holds the deposits for Property Impositions made pursuant to Section 4.1.

“Tenant” means any party that is a “tenant”, “lessee”, “subtenant”, “licensee” or similar party under any Lease.

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“Tenant Improvement Costs” means all non-recurring hard costs and typical and reasonable soft costs (such as space design costs, architect’s fees and legal fees) incurred with respect to any Tenant Improvements.

“Tenant Improvements” means the fixtures, equipment and improvements as part of the fit-out of and finishing of the applicable space demised (or to be demised) to a Tenant.

“Term Sheet” means the “Term Sheet for Fixed Rate Mortgage Loan”, prepared by Administrative Agent and accepted by Borrowers, Cross-Collateralized Borrowers and Guarantor, dated as of May 10, 2022, as the same may have been amended or extended, together with all exhibits and addenda thereto.

“Termination Date” means, in respect of any Individual Property, the earliest of (i) the date that Borrowers tender to Administrative Agent or Administrative Agent’s designee a deed-in-lieu of foreclosure in respect of such Individual Property, subject to no title exceptions other than real estate taxes and assessments, the Permitted Encumbrances (as defined in the applicable Security Instrument) and such additional exceptions approved by Administrative Agent pursuant to the Loan Documents or which are otherwise acceptable to Administrative Agent in its reasonable discretion, together with such ancillary conveyances, releases and other documentation that are customarily delivered in connection with a deed-in-lieu of foreclosure transaction, all in form reasonably satisfactory to Administrative Agent, and such deed-in-lieu of foreclosure is accepted by Administrative Agent in its sole discretion, (ii) the date that Borrowers tender to Administrative Agent a stipulation to entry of judgment of foreclosure in respect of such Individual Property, and (iii) the date Administrative Agent, Lender, any Affiliate of Administrative Agent or Lender, or any other party takes title to such Individual Property in connection with a foreclosure of the applicable Security Instrument that encumbers such Individual Property.  If Borrowers elect to deliver a deed-in-lieu of foreclosure in respect of such Individual Property, Administrative Agent shall retain the right to determine whether to accept such deed-in-lieu of foreclosure or to proceed with foreclosure proceedings and, upon Administrative Agent making such election, Borrowers shall execute and deliver to Administrative Agent an appropriate deed-in-lieu of foreclosure and such ancillary conveyances, releases and other documentation that are customarily delivered in connection with a deed-in-lieu of foreclosure transaction in respect of the Individual Property, as Administrative Agent shall have elected; provided, however, that if Administrative Agent chooses to proceed with foreclosure proceedings in respect of such Individual Property, the Termination Date shall nonetheless be the earliest of the dates specified in clause (i), (ii) and (iii) above, provided further that if Borrowers thereafter fail to cooperate with Administrative Agent in respect of Administrative Agent’s exercise of any and all remedies available at law or in equity to Administrative Agent (including, without limitation, foreclosure), then the Termination Date shall be the earlier of the dates specified in clause (ii) or (iii) above.

“Termination Fees” has the meaning set forth in Section 7.1.13(E)(i).

 “Third Party Reports” has the meaning set forth in Section 11.21.

“Threshold Amount” means One Million Dollars ($1,000,000). 

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“TI/Leasing Commissions/Capital Improvement Funds” has the meaning set forth in Section 4.3.1 

“TI/Leasing Commissions/Capital Improvement Reserve Account” has the meaning set forth in Section 4.3.1  

“Title Policy” means, collectively, one or more title insurance policies (i) insuring each Security Instrument as being a first and prior lien upon the applicable Individual Property, (ii)  showing no encumbrances against the applicable Individual Property (whether junior or superior to the applicable Security Instrument) that are not acceptable to Administrative Agent other than Permitted Encumbrances, (iii) in the aggregate amount of the Loan, and (iv) otherwise in form and content reasonably acceptable to Administrative Agent.

“Transactions” means the transactions contemplated by this Agreement and the other Loan Documents.

“Treasury Rate” means, with respect to a prepayment of the Principal Indebtedness, the semi-annual yield on the Treasury Constant Maturity Series with maturity equal to the remaining weighted average life of the Loan, for the week prior to the prepayment date, as reported in Federal Reserve Statistical Release H.15 - Selected Interest Rates, conclusively determined by Administrative Agent on the prepayment date.  The rate will be determined by linear interpolation between the yields reported in Release H.15, if necessary.  In the event Release H.15 is no longer published, Administrative Agent shall select a comparable publication to determine the Treasury Rate.

“UCC” means, with respect to any Collateral, the Uniform Commercial Code as in effect from time to time in the jurisdiction in which such Collateral is located.

“UCC-1 Financing Statement” means each UCC-1 Financing Statement naming Administrative Agent as secured party and any Borrower as debtor that is filed or recorded (or required by Administrative Agent to be filed or recorded) as security for the Secured Obligations.

 “VWU888, LLC” means VWU888, LLC, a New York limited liability company.

“Wu Transfer Conditions” has the meaning set forth in Section 8.3.3.

“Zee Bridge” means Zee Bridge Capital, LLC, a Delaware limited liability company.

ARTICLE 2

GENERAL LOAN TERMS

2.1Loan

.  Lender shall advance the Loan to Borrowers, and Borrowers shall borrow the Loan from Lender, in accordance with this Article 2 and in accordance with the other terms and conditions of this Agreement and the other Loan Documents.  The Secured Obligations shall be due and payable in accordance with the terms, covenants and conditions of this Agreement and the Notes, which are hereby incorporated herein by reference as if set forth in full herein.  Amounts borrowed under the Loan Documents and repaid or prepaid may not be re borrowed.  The Secured 

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Obligations shall be secured by the Security Documents and the other Loan Documents.  The obligation of Borrowers to pay the Principal Indebtedness, interest thereon and other amounts due under the Loan Documents shall be evidenced by the Notes, this Agreement and the other Loan Documents.

2.2Interest Rate and Loan Debt Service Payments

.

2.2.1Interest Rate

.  The Principal Indebtedness shall bear interest at the rate of four and sixty-three hundredths percent (4.63%) per annum (the “Interest Rate”), computed on the basis of a three hundred sixty (360) day year composed of twelve (12) months of thirty (30) days each; provided, however, interest for partial months (including the Stub Interest Period) shall be calculated by multiplying the Principal Indebtedness by the Interest Rate, dividing the product by three hundred sixty (360), and multiplying that result by the actual number of days elapsed during such period. 

2.2.2Stub Interest Period

.  Interest only on the Principal Indebtedness shall be payable on the Closing Date, in advance, for the Stub Interest Period.

2.2.3Monthly Loan Debt Service Payments

.  Commencing on the first Payment Date and on each Payment Date thereafter through and including the Payment Date immediately preceding the Maturity Date, payments of interest only on the Principal Indebtedness shall be payable in arrears, in the amount of (i) $133,404.81 each under the Co-Lender 1 Note, (ii) $27,677.22 each under the Co-Lender 1 TF1B Note, (iii) $103,766.21 each under the Co-Lender 2 Note, and (iv) $46,481.53 each under the Co-Lender 3 Note.

2.2.4Amounts Due on Maturity Date

.  The entire Principal Indebtedness and all other amounts due under this Agreement and the other Loan Documents, together with all accrued and unpaid interest thereon, shall be due and payable in full on the Maturity Date.

2.3Prepayment

.

2.3.1Lockout Period

.  Borrowers shall have no right to prepay all or any part of the Principal Indebtedness before the Payment Date that is thirty-six (36) calendar months from and after the first day immediately following the Stub Interest Period (the “Lockout Expiration Date”).  

2.3.2Voluntary Prepayment Conditions

.  At any time on or after the Lockout Expiration Date (but subject to clauses (i) and (ii) of this Section 2.3.2), Borrowers shall have the right to prepay the Principal Indebtedness (in whole, but not in part) and all other amounts due under this Agreement and the other Loan Documents, together with all accrued but unpaid interest thereon as of the date of prepayment, provided that (i) Borrowers give not less than thirty (30) days’ prior written notice to Administrative Agent of Borrowers’ election to make such prepayment, (ii) if such prepayment is not made on a Payment Date, Borrowers pay to Lender all interest that would be due and payable through the end of the interest period in which such prepayment occurs (the “Final Accrual Period Interest”), (iii) Borrowers pay a prepayment premium to Lender equal to the greater of (a) one percent (1%) of the Principal Indebtedness as of the date of prepayment or (b) the 

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Present Value of the Loan (less the amount of Principal Indebtedness being prepaid, calculated as of the prepayment date), and (iv) the Cross-Collateralized Borrowers simultaneously prepay the Principal Indebtedness (as defined in the Cross-Collateralized Loan Agreement) (in whole, but not in part) and all other amounts due under the Cross-Collateralized Loan Agreement and the other Cross-Collateralized Loan Documents, together with all accrued but unpaid interest thereon as of the date of prepayment, in accordance with Section 2.3.2 of the Cross-Collateralized Loan Agreement. Any notice of prepayment delivered by Borrowers to Administrative Agent under this Section 2.3.2 may be revoked by delivery of written notice to Administrative Agent of such revocation at least ten (10) Business Days prior to the date of such prepayment (provided that (a) Borrowers may not revoke a prepayment notice more than two (2) times in any twelve (12) month period and (b) for each revocation of a prepayment notice after the second such revocation in any twelve (12) month period, Borrowers shall be required to pay to Administrative Agent an administrative review fee equal to Two Thousand Five Hundred Dollars ($2,500.00) and all costs and expenses incurred by Administrative Agent and Lender in connection with the applicable prepayment notice and the revocation thereof).  Lender shall not be obligated to accept any prepayment of the Principal Indebtedness unless such prepayment is accompanied by the applicable prepayment premium, the Final Accrual Period Interest, if any, and all other amounts due under this Agreement and the other Loan Documents, together with all accrued but unpaid interest thereon as of the date of prepayment.  Administrative Agent shall notify Borrowers of the amount and basis of determination of the prepayment premium.  Borrowers may prepay the Principal Indebtedness only on a Business Day.

2.3.3No Prepayment Premium Due

.  Notwithstanding the provisions of this Section 2.3, no prepayment premium shall be due in connection with (i) any involuntary prepayment due to the application by Administrative Agent of any Capital Proceeds to the Principal Indebtedness, provided that no Default or Event of Default exists at the time of such application of Capital Proceeds, (ii) a prepayment of all of the Secured Obligations that is made during the ninety (90) day period immediately preceding the Maturity Date, or or (iv) any prepayment of the Loan made in connection with a Casualty/Condemnation Release in accordance with Section 8.7.

2.3.4No Partial Prepayments

.  In no event shall Borrowers be permitted to make any partial prepayments of the Principal Indebtedness, except for (i) the application by Administrative Agent of any Capital Proceeds to the Principal Indebtedness, (ii) in connection with payment to Lender of any Release Amount in respect of any Released Property pursuant to and in accordance with Section 8.6 or (iii) in connection with payment to Lender of any Release Amount in respect of any Individual Property subject to a Casualty/Condemnation Release pursuant to and in accordance with Section 8.7. 

2.3.5Involuntary Prepayment

.  If Administrative Agent on behalf of Lender accelerates the Secured Obligations during the existence of an Event of Default, then in addition to Borrowers’ obligation to pay the Principal Indebtedness, all accrued but unpaid interest thereon and any other amounts due under this Agreement and the other Loan Documents, Borrowers shall pay to Lender an additional amount equal to the prepayment premium that would be due to Lender if Borrowers were voluntarily prepaying all of the 

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Secured Obligations at the time that such acceleration occurred, or if such acceleration occurs during the Lockout Period, Borrowers shall pay to Lender a prepayment premium equal to the greater of (i) five percent (5%) of Principal Indebtedness and (ii) one hundred fifty percent (150%) of the highest prepayment premium set forth herein, calculated as of the date of such acceleration as if prepayment were permitted on such date.

2.3.6No Reinvestment Obligations

.  Lender shall not be obligated to actually reinvest the amount prepaid in any United States Treasury obligations (or otherwise) as a condition precedent to receiving any prepayment premium or for any other reason.

2.3.7Waiver

 of Prepayment Right Without Premium.  Except as otherwise expressly permitted hereunder, Borrowers hereby expressly waive any right that Borrowers may have under Legal Requirements to prepay the Loan, in whole or in part, without prepayment charge, upon acceleration of the Maturity Date, and agrees that, except as otherwise expressly permitted hereunder, if for any reason a prepayment of all or any part of the Secured Obligations is made, whether voluntarily or following any acceleration of the Maturity Date by Administrative Agent on behalf of Lender on account of the existence of any Event of Default arising for any reason, including as a result of any prohibited or restricted transfer, further encumbrance or disposition of the Property or any part thereof, then Borrowers shall be obligated to pay, concurrently with such prepayment, the prepayment premium provided for herein (including, in the event of acceleration at any time that prepayment is not permitted pursuant to the Loan Documents, the prepayment premium as set forth in Section 2.3.5).  Borrowers hereby declare that Lender’s agreement to make the Loan at the interest rate and for the term set forth herein constitutes adequate consideration, given individual weight by Borrowers, for this waiver and agreement.

2.4Late Charges

; Grace Period.

2.4.1Late Charge Amounts

.  In addition to interest as set forth herein, Borrowers shall pay to Administrative Agent a late charge equal to four percent (4%) of any amounts due hereunder in the event that any such amount is not paid when due, except for the Principal Indebtedness due upon the Maturity Date (whether by acceleration or otherwise); provided, however, that, such late charge shall be charged only one time in respect of each such late payment.

2.4.2Grace Period

.  Notwithstanding the provisions of Section 2.4.1, in any period of twelve (12) consecutive months, there shall be a single grace period of not more than five (5) days for any one (1) Loan Debt Service Payment if such Loan Debt Service Payment is not made on the applicable Payment Date, and no late charge (and no interest in addition to the regularly scheduled interest payable at the Interest Rate) shall be required with respect to such one (1) Loan Debt Service Payment if such Loan Debt Service Payment is made by Borrowers on or prior to the expiration of such grace period; provided that, if the expiration date of such five (5) day grace period is not a Business Day, then such grace period shall expire on the preceding Business Day.

2.5Default Rate Accrual on Amounts Owed

.  If any Event of Default shall occur, then during the continuance of such Event of Default, interest shall accrue on the Principal Indebtedness 

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(and on all accrued but unpaid interest thereon and on any other amounts due under this Agreement and the other Loan Documents) at the Default Rate.  Without limiting the foregoing terms of this Section 2.5, (i) if Borrowers fail to pay any Loan Debt Service Payments or other amounts payable under this Agreement or any other Loan Document on the due date therefor (including the payment of the Principal Indebtedness on the Maturity Date, by acceleration or otherwise), then, subject to Section 2.4.2, interest shall accrue on the entire Principal Indebtedness (and all accrued but unpaid interest thereon and any other amounts due under this Agreement and the other Loan Documents) at the Default Rate from the due date of such payment until the date that such amount is actually paid to Lender by Borrowers, and (ii) any Protective Advance or any other out-of-pocket payments made or expenses (including actual out-of-pocket attorneys’ fees) incurred by Administrative Agent or Lender in connection with Administrative Agent’s or Lender’s (or their respective agent’s) performance of Borrowers’ obligations or the exercise of Administrative Agent’s and/or Lender’s rights and remedies under this Agreement or any other Loan Document shall accrue interest thereon at the Default Rate from the date that any such Protective Advance or payment is made by Administrative Agent and/or Lender, or the date that such expense is actually paid by Administrative Agent and/or Lender, as applicable, until the date that such amounts (together with the applicable interest thereon at the Default Rate) are actually paid to Administrative Agent or Lender by Borrowers, and shall be part of the Secured Obligations.

2.6Application of Payments

.

2.6.1Application of Payments If No Event of Default Exists

.  So long as no Event of Default exists, except as otherwise expressly set forth herein, Administrative Agent shall apply all payments made to Administrative Agent and Lender by or on behalf of Borrowers in the following order:  (i) first, to the payment of late charges, if any; (ii) second, to the payment of prepayment premiums, if any; (iii) third, to the repayment of any Protective Advances and any other costs and expenses incurred by Administrative Agent and/or Lender in accordance with the Loan Documents (together with interest thereon at the Default Rate from the date of advance until repaid), if any; (iv) fourth, to the payment of accrued and unpaid interest on the Principal Indebtedness (at the Applicable Interest Rate) and to other amounts due and payable under this Agreement and the other Loan Documents (other than the Principal Indebtedness), if any; and (v) fifth, to the reduction of the Principal Indebtedness.  

2.6.2Application of Payments During Event of Default

.  Notwithstanding the foregoing terms of Section 2.6.1 or anything to the contrary in this Agreement or the other Loan Documents, for so long as any Event of Default is continuing, Administrative Agent shall have the continuing exclusive right to apply any payments received by Administrative Agent and/or Lender from or on behalf of Borrowers, and any funds held by Administrative Agent or Servicer pursuant to the terms of Article 3 or the other terms of this Agreement or the other Loan Documents (including any funds held in any Account and the proceeds of any letter of credit held by Administrative Agent as security for the Secured Obligations) as Administrative Agent may elect against the Secured Obligations of Borrowers in such order of priority or in such allocations as Administrative Agent may determine.   

2.7Method and Place of Payment to Administrative Agent

.  Except as otherwise specifically provided herein, all payments and prepayments under this Agreement and the Notes 

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shall be made to Administrative Agent not later than 2:00 P.M. New York time, on the date when due and shall be made by electronic funds transfer from a bank account established and maintained by Borrowers for such purpose in immediately available funds in lawful money of the United States of America.  Any funds received by Administrative Agent after such time shall, for all purposes hereof, be deemed to have been paid on the next succeeding Business Day.  For the purposes of this Section 2.7, no payment or prepayment under this Agreement shall be deemed to be received by Administrative Agent unless and until such payment or prepayment is available to Administrative Agent in the account designated by Administrative Agent for such payment or prepayment.  Whenever any payment to be made under the Notes, this Agreement or any of the other Loan Documents shall be stated to be due on a day other than a Business Day, such payment may be made on the immediately succeeding Business Day.  All payments made by Borrowers under this Agreement or the other Loan Documents shall be made without setoff, counterclaim or deduction of any kind and shall be made free and clear of, and without deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority.  Borrowers shall verbally verify all payment instructions before transmitting any payment or prepayment of funds by wire transfer or other means of payment.

2.8Usury Savings Clause

.  It is expressly stipulated and agreed to be the intent of Borrowers and Administrative Agent at all times to comply with all applicable Legal Requirements governing the highest lawful interest rate.  If any applicable Legal Requirement is ever judicially interpreted so as to render usurious any amount called for under the Notes or under any of the other Loan Documents, or contracted for, charged, taken, reserved or received with respect to the Secured Obligations, or if acceleration of the maturity of the Notes, any prepayment by Borrowers, or any other circumstance whatsoever, results in Borrowers having paid any interest in excess of that permitted by any applicable Legal Requirement, then it is the express intent of Borrowers, Administrative Agent and Lender that all excess amounts theretofore collected by Administrative Agent and/or Lender be credited to the Principal Indebtedness (or, at Administrative Agent’s option, paid over to Borrowers), and the provisions of this Agreement and other Loan Documents immediately be deemed reformed and the amounts thereafter collectible hereunder and thereunder reduced, without the necessity of the execution of any new document, so as to comply with all applicable Legal Requirements, but so as to permit the recovery of the fullest amount otherwise called for hereunder and thereunder.  The right to accelerate maturity of the Notes does not include the right to accelerate any interest that has not otherwise accrued on the date of such acceleration, and Administrative Agent and Lender do not intend to collect any unearned interest in the event of acceleration.  All sums paid or agreed to be paid to Administrative Agent or Lender for the use, forbearance or detention of the Secured Obligations shall, to the extent permitted by applicable Legal Requirements, be amortized, prorated, allocated and spread throughout the full term of such Secured Obligations until payment in full so that the rate or amount of interest on account of such Secured Obligations does not exceed the maximum rate or amount of interest permitted under any Legal Requirements.

2.9Release of Collateral

.  Upon indefeasible payment and performance (in full) of all of the Secured Obligations (other than any such obligations that survive repayment of the Loan), Administrative Agent shall, at the request of Borrowers and at the sole cost and expense of Borrowers, release or cause to be released all Liens with respect to all Collateral (or, at Borrowers’ 

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request, assign such Liens with respect to all or certain Collateral as Borrowers may request), in each case, pursuant to documentation in form and substance satisfactory to Administrative Agent.

ARTICLE 3

CASH MANAGEMENT

3.1Establishment of Accounts

.

3.1.1Deposit Account.

  Following the first occurrence of a Cash Management Event, Administrative Agent shall establish (or cause Servicer to establish) the Deposit Account.  Administrative Agent shall be permitted to transfer funds in the Deposit Account to other accounts or sub accounts from time to time, including accounts with one or more different depository banks used by Administrative Agent or Servicer, and such additional accounts or sub accounts shall constitute a part of the Deposit Account for the purposes of this Agreement. The wiring instructions for the Deposit Account will be provided to Borrowers following the establishment thereof following the first occurrence of a Cash Management Event, and may be amended by Administrative Agent from time to time by reasonable, advance written notice to Borrowers.  

3.1.2Excess Cash Subaccount.

  Following the first occurrence of a Cash Management Event, Administrative Agent may establish (or cause Servicer to establish) the Excess Cash Subaccount.

3.1.3Interim Deposit Account.

  Notwithstanding the foregoing terms of Section 3.1.1, if the Deposit Account has not been established (or is not active) as of the first occurrence of a Cash Management Event, then from the first occurrence of a Cash Management Event until the Deposit Account has been established and activated, Administrative Agent may require that all Gross Revenue be delivered into another account or sub-account (such account or sub-account, the “Interim Deposit Account”).  Notwithstanding anything to the contrary in this Agreement, the funds in such Interim Deposit Account may be commingled with other monies held by Administrative Agent or Servicer.  Not later than the date that is five (5) Business Days following the establishment and activation of the Deposit Account, Administrative Agent shall transfer into the Deposit Account any Gross Revenue deposited into the Interim Deposit Account during such interim period (to the extent not previously disbursed in accordance with this Section 3.1).

3.1.4Borrowers’ Operating Account.

 Borrowers have established the Borrowers’ Operating Account.  Borrowers shall maintain the Borrowers’ Operating Account until satisfaction of all of the Secured Obligations.  Wiring instructions for Borrowers’ Operating Account are attached hereto as Exhibit B (as may be amended by Borrowers from time to time following reasonable, advance written notice to Administrative Agent and Servicer).

3.2Deposit of Gross Revenue

.  Following the first occurrence of a Cash Management Event, (i) Borrowers shall deliver, or cause the Tenants and/or the Property Manager to deliver, Gross Revenue to the Deposit Account (or the Interim Deposit Account, as directed by 

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Administrative Agent) pursuant to the terms of this Section 3.2 and (ii) if Borrowers receive, directly or indirectly, through Property Manager or any other Person, any cash, checks or other payments from any Tenant or other Person in payment of Gross Revenue, Borrowers shall endorse (if applicable) and deposit the same (or cause the same to be deposited) into the Deposit Account (or the Interim Deposit Account, as directed by Administrative Agent) not later than two (2) Business Days following such receipt.

3.3Payment Notices

.

3.3.1Delivery of Payment Notices.

 Not later than five (5) Business Days following the first occurrence of a Cash Management Event, Borrowers shall deliver, or cause to be delivered, to all then-existing Tenants executed notice letters in the form annexed hereto as Exhibit A (each such written notice, a “Payment Notice”).  Not later than five (5) Business Days following the execution of any Lease following the first occurrence of a Cash Management Event, Borrowers shall deliver, or cause to be delivered, a Payment Notice to the Tenant under such Lease.  

3.3.2Third Party Instructions and Authorizations.

  Borrowers shall not give any payment instructions to any Tenant, Property Manager or other Person that are inconsistent with the requirements of this Article 3 or with any Payment Notices delivered to such Person.  Payment Notices shall be deemed sufficient authorization for any Tenant, Property Manager or other Person to make all payments of Gross Revenue directly to the Deposit Account, and each such Tenant, Property Manager or other Person shall be entitled to rely on such Payment Notices in making such payments and shall have no liability to Borrowers for any Gross Revenue duly and punctually paid to the Deposit Account in accordance with the terms of such Tenant’s Lease or other agreement with Borrowers.

3.4Application of Cash Flow

.  

3.4.1Application of Cash Flow During a Non-Cash Management Period.

  Subject to the terms of Section 5.1.4, on each Disbursement Date following the first occurrence of a Cash Management Event and during any Non-Cash Management Period, Administrative Agent shall (or shall cause Servicer to) allocate, disburse and/or retain, as applicable, Cash Flow then on deposit in the Deposit Account determined as of the Cut Off Date immediately preceding such Disbursement Date, in the following order and priority:  (i) to Servicer in payment of any fees and expenses incurred by Administrative Agent, Lender and Servicer pursuant to Section 11.20; and (ii) to the Borrowers’ Operating Account.

3.4.2Application of Cash Flow During a Cash Management Period.

 Subject to the terms of Section 5.1.4, on each Disbursement Date during a Cash Management Period, Administrative Agent, at Administrative Agent’s sole option, may (or may cause Servicer to) immediately cease disbursing Cash Flow pursuant to Section 3.4.1 and commence allocating, disbursing and/or retaining, as applicable, Cash Flow then on deposit in the Deposit Account, determined as of the Cut‐Off Date immediately preceding such Disbursement Date, in the following order and priority:

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A.to Servicer in payment of any fees and expenses incurred by Administrative Agent, Lender and Servicer pursuant to Section 11.20;

B.to Administrative Agent, or Administrative Agent’s account, in payment of the Monthly Impounds;

C.to the Borrowers’ Operating Account to pay Operating Expenses, in an amount equal to Budgeted Operating Expenses for the calendar month in which the applicable Disbursement Date occurs (less any Operating Expense Overpayment that Administrative Agent is permitted to deduct from such amounts pursuant to Section 3.8.1(C)); provided that such Budgeted Operating Expenses are not included within any of the other disbursements previously listed in this Section 3.4.2;

D.if approved by Administrative Agent pursuant to the provisions of Section 3.5 below, to the Borrowers’ Operating Account in an amount for Capital Expenditures, which amount has been submitted by Borrowers to Administrative Agent in a Disbursement Request as may be approved by Administrative Agent, in whole or in part, in accordance with the terms of such Section 3.5.2;

E.to the Borrowers’ Operating Account, in an amount equal to any Borrower Funded Operating Shortfall, but only to the extent such Borrower Funded Operating Shortfall has not previously been disbursed to Borrowers; 

F.to Administrative Agent, or Administrative Agent’s account (in each case for the benefit of Lender), in payment of any late charges, interest at the Default Rate and other sums then due and payable, or previously due but unpaid, under this Agreement or the other Loan Documents (other than Loan Debt Service Payments and Monthly Impounds) and to repayment of any Protective Advances or other advances, costs, expenses or other payments (other than the Loan Debt Service Payments and the Monthly Impounds) owing by Borrowers to Administrative Agent and Lender under this Agreement or the other Loan Documents (collectively, the “Additional Amounts”);

G.to Administrative Agent, or Administrative Agent’s account (in each case for the benefit of Lender), in payment of Loan Debt Service Payments then due and payable; 

H.to Servicer for required reserve amounts pursuant to Section 4.3; 

I.provided that (i) the applicable Cash Management Event is caused solely by a DSCR Triggering Event and no other Cash Management Event then-exists, and (ii) there exists no Default or Event of Default under this Agreement, the other Loan Documents, or the Cross-Collateralized Loan Documents, to Borrowers, for the sole purpose of making distributions to the shareholders of Guarantor in order to maintain the qualification of Guarantor as a real estate investment trust under the provisions of Sections 856, et seq. of the United States Internal Revenue Code of 1986, as amended, and the regulations issued thereunder (the “REIT Distributions”) (for the avoidance of doubt, Guarantor is guaranteeing the amount of any losses, damages and costs suffered by Administrative Agent and/or Lender as a result of Borrowers’ making any REIT 

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Distributions in accordance with this Section 3.4.2(I), pursuant to and in accordance with this Agreement and the Guaranty Agreement; provided, however, in no event shall the amount of any such liability exceed the amount of such REIT Distributions distributed to Borrower under this Section 3.4.2(I); and

J.the balance, if any, to the Excess Cash Subaccount.

3.4.3Return Events.

  Not later than the later of (i) five (5) Business Days following the occurrence of all applicable Return Events and (ii) the first Disbursement Date following the occurrence of all applicable Return Events, Administrative Agent shall (or shall cause Servicer to) (a) disburse all funds then on deposit in the Excess Cash Subaccount to the Deposit Account and (b) resume disbursing Cash Flow pursuant to Section 3.4.1.

3.5Disbursement of Excess Cash Subaccount Funds.

3.5.1During and Following a Cash Management Period.

  Subsequent to each Disbursement Date, all funds (if any) remaining in the Excess Cash Subaccount shall remain as security for the full and timely payment and performance of the Secured Obligations until such time as (i) Administrative Agent shall (or shall cause Servicer to) resume disbursing Cash Flow pursuant to Section 3.4.1 or (ii) the Secured Obligations have been fully satisfied in cash, at which time the balance of the funds, if any, in the Deposit Account and the Excess Cash Subaccount shall be disbursed to Borrowers. 

3.5.2Capital Expenditures Disbursements.

  During a Cash Management Period, if any funds are then available in the Excess Cash Subaccount, and Borrowers desire to request that all or any portion of such funds be used to pay Capital Expenditures, then Borrowers shall deliver a Disbursement Request to Administrative Agent, at which time Administrative Agent will inform Borrowers of Administrative Agent’s then-existing and customary draw request requirements and conditions that need to be complied with by Borrowers in connection with such Disbursement Request and, upon compliance therewith by Borrowers, Administrative Agent will review, process, approve and/or disapprove, in whole or in part, Borrowers’ Disbursement Request in accordance with such requirements and conditions; provided that Administrative Agent may deny any such Disbursement Request in Administrative Agent’s sole discretion.  Without limiting the foregoing, disbursements under this Section 3.5.2 shall additionally be subject to Borrowers satisfying the applicable terms and conditions for such disbursements set forth in Section 4.3.

3.6Capital Proceeds.

  Notwithstanding the foregoing terms of this Article 3, all Capital Proceeds delivered to Administrative Agent or Servicer shall be held and disbursed pursuant to Section 7.1.5.

3.7Sufficiency of Funds

.  During any Cash Management Period in which Cash Flow is disbursed pursuant to the Cash Management Period Waterfall: 

3.7.1Insufficient Cash Flow.

  Borrowers shall be obligated to pay (with Borrowers’ own funds) all Additional Amounts, Loan Debt Service Payments, Monthly Impounds and/or other amounts due under the Loan Documents, if the amount of Cash 

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Flow available in the Deposit Account and allocable to such amounts are insufficient to pay the same as and when the same become due (provided, however, without limiting the obligations of Guarantor under the Guaranty Agreement and the Environmental Indemnity Agreement, nothing set forth herein shall require any owner or principal of any Borrower or any other Person to make any capital contribution or other contribution of cash or assets to Borrower); or

3.7.2Sufficient Cash Flow.

  On any Disbursement Date, if the amount of Cash Flow available in the Deposit Account shall be sufficient to pay, and are available and allocable from the Deposit Account pursuant to the Cash Management Period Waterfall to pay, all Additional Amounts, Loan Debt Service Payments, Monthly Impounds and/or other amounts due under the Loan Documents on such Disbursement Date (in each case, following the payment of all amounts required to be paid prior to the payment of such amounts pursuant to the Cash Management Period Waterfall), then such circumstance shall constitute timely performance of Borrowers’ obligations to make the applicable required payments of such amounts on such Disbursement Date. 

3.8Additional Reporting and Budget Requirements.

3.8.1Reconciliation Reports

.

A.During any Cash Management Period, within thirty (30) calendar days after the end of each Reconciliation Period or partial Reconciliation Period with respect to the first Reconciliation Period ending after the occurrence of the applicable Cash Management Event, Borrowers shall prepare and deliver to Administrative Agent and Servicer for Administrative Agent’s approval, a Reconciliation Report, certified as true and correct by an officer of Borrowers.  Each Reconciliation Report shall be accompanied by: (i) a certification by Borrowers that all actual Operating Expenses paid by Borrowers during such Reconciliation Period were either in respect of Budgeted Operating Expenses or Permitted Operating Expense Deviations; and (ii) upon Administrative Agent’s request, invoices or other evidence reasonably satisfactory to Administrative Agent evidencing the actual Operating Expenses (including any Permitted Operating Expense Deviations) paid by Borrowers during such Reconciliation Period.  Within thirty (30) calendar days after receipt thereof, Administrative Agent shall either approve or disapprove such Reconciliation Report.

B.If Administrative Agent approves the Reconciliation Report delivered by Borrowers pursuant to the terms of Section 3.8.1(A), then on the first Disbursement Date after Administrative Agent’s approval of such Reconciliation Report, any Borrower Funded Operating Shortfall shall be disbursed to the Borrowers’ Operating Account out of Cash Flow available for disbursement (if any) pursuant to Section 3.4.2.

C.If Administrative Agent approves the Reconciliation Report delivered by Borrowers pursuant to the terms of Section 3.8.1(A), then if applicable, Borrowers shall deposit into the Deposit Account (using Borrowers’ own funds and not any Gross Revenue) the amount (as reflected in such Reconciliation Report or as otherwise determined by Administrative Agent) by which all disbursements made pursuant to Section 

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3.4.2(C) during such Reconciliation Period exceeded the Budgeted Operating Expenses and Permitted Operating Expense Deviations paid during such Reconciliation Period (an “Operating Expense Overpayment”) no later than thirty (30) days following Administrative Agent’s written notice to Borrowers.  If Borrowers fail to deposit the Operating Expense Overpayment into the Deposit Account within such thirty (30) day period, Administrative Agent may deduct the amount of the Operating Expense Overpayment from any amounts that would otherwise be disbursed to Borrowers pursuant to Section 3.4.2(C) or Section 3.4.2(E). 

3.8.2Budgets

.

A.Within thirty (30) days following any Cash Management Event and, subsequent thereto, on or before December 1st of each calendar year, Borrowers shall deliver to Administrative Agent a proposed revenue and expense budget for each Individual Property for the immediately succeeding calendar year (or for the remaining portion of the then-current calendar year, as applicable, when referring to the initial budget to be submitted in connection with Administrative Agent’s demand above).  Such budget shall set forth Borrowers’ projection of Gross Revenue, Operating Expenses and Capital Expenditures for the applicable calendar year (or portion thereof with respect to the first budget).  All budgets shall be subject to Administrative Agent’s reasonable approval.  Administrative Agent shall approve or disapprove a proposed budget submitted by Borrowers within thirty (30) days after Administrative Agent’s receipt thereof.  Once a proposed budget has been reviewed and approved by Administrative Agent, and Borrowers have made all reasonable revisions requested by Administrative Agent, if any, the revised budget shall be delivered to Administrative Agent and shall thereafter become the budget for the applicable Individual Property hereunder (the “Approved Budget”) for the applicable calendar year.  If Borrowers and Administrative Agent are unable to agree upon an Approved Budget for any calendar year (or portion thereof, as applicable), the Approved Budget for the applicable Individual Property for the preceding calendar year shall be considered the interim approved budget (the “Interim Budget”) for the applicable Individual Property for the subject calendar year (or portion thereof, as applicable) until Borrowers and Administrative Agent agree upon an Approved Budget for such calendar year (or portion thereof, as applicable); provided that the following adjustments shall be made to the previous calendar year’s Approved Budget for purposes of determining the Interim Budget for the current calendar year (or portion thereof) before Administrative Agent and Borrowers agree upon the Approved Budget for the current calendar year (or portion thereof):  (i) rent payable by Tenants pursuant to Leases shall be included in the Interim Budget in the amounts required from the Tenants pursuant to their Leases, (ii) property management fees shall be included in the Interim Budget in the same percentage of rents as in the previous year, (iii) extraordinary items such as, but not limited to, special assessments that do not require continuing payments shall be excluded, (iv) Non-Discretionary Expenses shall be included in the Interim Budget in the actual amounts incurred during the last calendar year (excluding any such Non-Discretionary Expenses incurred pursuant to clause (ii) of the definition thereof that do not require continuing payments), and (v) Capital Expenditures shall not be included in the Interim Budget except to the extent that Borrowers have previously committed to pay such Capital Expenditures (as verified by Administrative Agent) and Administrative Agent has previously approved 

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such Capital Expenditures, or portions thereof, in writing.  In addition, notwithstanding any other term or provision of this Article 3, during any calendar year (or portion thereof) in which an Approved Budget is required hereunder, Borrowers shall not be entitled to receive any disbursements into the Borrowers’ Operating Account for any Borrower Funded Operating Shortfalls (whether from Cash Flow or from the Excess Cash Subaccount) until and unless Administrative Agent and Borrowers have agreed upon an Approved Budget (and not an Interim Budget) for each Individual Property for the then‐current calendar year (or portion thereof, as applicable).

B.Borrowers shall use commercially reasonable efforts to operate each Individual Property in accordance with the applicable Approved Budget or the applicable Interim Budget (as applicable) for the applicable calendar year (or portion thereof).  Notwithstanding the foregoing, Borrowers are permitted to deviate from the Approved Budget or the Interim Budget (as applicable) to the extent necessary for Non-Discretionary Expenses or as otherwise approved in writing by Administrative Agent (such permitted deviations referred to as the “Permitted Operating Expense Deviations”).

3.9Administrative Agent’s DACA Conversion Option. Borrowers acknowledge and agree that, notwithstanding anything contained herein to the contrary, Administrative Agent reserves the right to convert the cash management structure set forth herein to a deposit-account-control-agreement-based structure, provided that the only events that shall trigger cash management under such structure shall be the Cash Management Events (such conversion, a “DACA Conversion”). Borrowers hereby agree to execute and deliver to Administrative Agent such other documents as Administrative Agent may reasonably request in connection with a DACA Conversion, which documents shall include, without limitation, (A) a deposit account control agreement, in form and substance reasonably acceptable to Administrative Agent, among Borrowers, Administrative Agent and an institution, selected by Borrowers and reasonably approved by Administrative Agent, acting as “bank” under such deposit account control agreement, and (B) such amendments, in form and substance reasonably acceptable to Administrative Agent, to this Agreement and the other Loan Documents as Administrative Agent shall deem necessary. 

ARTICLE 4

RESERVE ACCOUNTS

4.1Tax Reserve.

  From and after the earliest to occur of (i) the occurrence of an Event of Default, (ii) the Borrowers’ failure to pay any Property Imposition prior to the due date therefor and (iii) the occurrence of a Cash Management Event, on each Payment Date thereafter, Borrowers shall deposit with Administrative Agent an amount equal to 1/12th of the amount that Administrative Agent reasonably estimates will be required to pay the next annual payment of Property Impositions with respect to each Individual Property.  The purpose of these provisions is to provide Administrative Agent with sufficient funds on hand for Administrative Agent or Servicer to pay all Property Impositions with respect to each Individual Property thirty (30) days prior to the date that any such Property Impositions become past due.  If Administrative Agent determines that the funds deposited with Administrative Agent hereunder are, or will be, insufficient to pay such Property Impositions, then Borrowers shall, upon demand, pay (i) such 

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additional sums as Administrative Agent shall reasonably determine necessary to pay such Property Impositions and (ii) any increased monthly charges reasonably requested by Administrative Agent.  Provided no Event of Default exists, Administrative Agent will apply the amounts so deposited with Administrative Agent to the payment of such Property Impositions when due, but in no event will Administrative Agent or Lender be liable for any interest on any amount so deposited, and any amount so deposited may be held and commingled with Administrative Agent’s, Lender’s or Servicer’s own funds. If an Event of Default exists, Administrative Agent may apply such funds to the payment of any Property Impositions or the payment of any Secured Obligations in such order as Administrative Agent shall elect or retain the same as security for the Secured Obligations, in the sole discretion of Administrative Agent. 

4.2Insurance Reserve.

  From and after the earliest to occur of (i) the occurrence of an Event of Default, (ii) the Borrowers’ failure to pay any annual premiums for any Required Insurance Policy prior to the due date therefor and (iii) the occurrence of a Cash Management Event, on each Payment Date thereafter, Borrowers shall deposit an amount equal to 1/12th of the amount that Administrative Agent estimates will be required to pay the next required annual premium for each Required Insurance Policy.  The purpose of these provisions is to provide Administrative Agent with sufficient funds on hand for Administrative Agent or Servicer to pay all such premiums thirty (30) days prior to the date that such premiums become past due.  If Administrative Agent, in its reasonable discretion, determines that the funds deposited with Administrative Agent hereunder are, or will be, insufficient to pay such premiums, then Borrowers shall, within ten (10) days following Borrowers’ receipt of written demand, pay (i) such additional sums as Administrative Agent shall determine as necessary to pay such premiums and (ii) any increased monthly charges requested by Administrative Agent.  Provided that no Event of Default exists and is continuing, Administrative Agent shall apply the amounts so deposited to the payment of such insurance premiums when due, but in no event will Administrative Agent be liable for any interest on any amounts so deposited, and the money so deposited may be held and commingled with Administrative Agent’s or Servicer’s own funds.  If an Event of Default exists, Administrative Agent may apply such funds to the payment of such insurance premiums and/or any of the Secured Obligations in such order as Administrative Agent shall elect in its sole discretion or may retain the same as security for the Secured Obligations, in the sole discretion of Administrative Agent.

4.3Tenant Improvement Costs/Leasing Commissions/Capital Improvement Reserve.

 

4.3.1Deposits

.  Borrowers shall deposit with Administrative Agent (i) on the Closing Date, the amount of Two Hundred Sixty-Eight Thousand Nine Hundred Sixty-Seven and 40/100 Dollars ($268,967.40), (the “Initial TI/Leasing Commissions/Capital Improvement Reserve Funds”) and (ii) subject to Section 4.3.2, on each Payment Date, an amount equal to Fourteen Thousand Nine Hundred Forty-Two and 75/100 Dollars ($14,942.75) (the “Monthly TI/Leasing Commissions/Capital Improvement Reserve Payment”; and together with the Initial TI/Leasing Commissions/Capital Improvement Reserve Funds and any interest actually earned on the Initial TI/Leasing Commissions/Capital Improvement Reserve Funds and each Monthly TI/Leasing Commissions/Capital Improvement Reserve Payment, collectively, the “TI/Leasing Commissions/Capital Improvement Funds”), in each case, by wire transfer of immediately available funds for deposit in a deposit account designated by Administrative Agent or Servicer (the “TI/Leasing Commissions/Capital Improvement Reserve Account”).  For the 

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avoidance of doubt, the funds deposited in the TI/Leasing Commissions/Capital Improvement Reserve Account on the Closing Date shall be deemed for all purposes proceeds of the Loan (and a portion of the Principal Indebtedness) on which interest shall accrue as provided for herein and in the Notes, and in respect of which Loan Debt Service Payments shall be made as provided for herein and in the Notes.

4.3.2Maximum TI/Leasing Commissions/Capital Improvement Reserve Amount

.  Notwithstanding the provisions of Section 4.3.1, Borrowers shall not be required to deposit Monthly TI/Leasing Commissions/Capital Improvement Reserve Payments to the extent that the TI/Leasing Commissions/Capital Improvement Reserve Account contains an aggregate amount of TI/Leasing Commissions/Capital Improvement Funds in the amount of Three Hundred Fifty-Eight Thousand Six Hundred Twenty-Three and 20/100 Dollars ($358,623.20) (the “Maximum TI/Leasing Commissions/Capital Improvement Reserve Amount”).  If at any time the aggregate amount of TI/Leasing Commissions/Capital Improvement Funds held in the TI/Leasing Commissions/Capital Improvement Reserve Account equals or exceeds the Maximum TI/Leasing Commissions/Capital Improvement Reserve Amount, Borrowers shall not be obligated to make Monthly TI/Leasing Commissions/Capital Improvement Reserve Payments; provided, however, if at any time, the aggregate TI/Leasing Commissions/Capital Improvement Funds deposited by Borrowers contained in the TI/Leasing Commissions/Capital Improvement Reserve Account, are less than the Maximum TI/Leasing Commissions/Capital Improvement Reserve Amount, then Borrowers shall continue to make Monthly TI/Leasing Commissions/Capital Improvement Reserve Payments on each Payment Date in accordance with Section 4.3.1 above.

4.3.3Tenant Improvement Costs, Leasing Commissions and Capital Improvement Costs

.  Subject to the terms of this Section 4.3, Borrowers shall have the right to obtain disbursements from time to time under this Section 4.3 in order to reimburse Borrowers, or pay, for Tenant Improvement Costs, Leasing Commissions and Capital Improvement Costs previously paid or incurred by Borrowers.  As used herein (i) “Capital Improvements” shall mean the capital improvements and/or repairs to the Property and (ii) “Capital Improvement Costs” shall mean the costs and expenses incurred in connection with the completion of the Capital Improvements.  

4.3.4Conditions to Disbursements

.  Administrative Agent’s obligation to authorize or make any disbursements of any TI/Leasing Commissions/Capital Improvement Funds hereunder shall be subject to the following terms, restrictions, requirements and conditions.  All items required to be delivered to Administrative Agent shall be delivered by Borrowers at Borrowers’ sole cost and expense and shall be, in each case, in form and substance reasonably acceptable to Administrative Agent.  

A.Borrowers have submitted a Disbursement Request to Administrative Agent not less than fifteen (15) days prior to the date of the requested disbursement, together with (i) any and all other reasonable documentation evidencing Borrowers’ satisfaction of the disbursement conditions set forth in this Section 4.3.4, as may be reasonably requested by Administrative Agent, and (ii) a certification from 

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Borrowers that Borrowers have delivered to Administrative Agent all of the documents and information required in this Section 4.3.4.

B.Administrative Agent shall not be obligated to disburse any TI/Leasing Commissions/Capital Improvement Funds:

(i)on any day that is not a Business Day;

(ii)more frequently than once per calendar month;

(iii)in increments of less than the lesser of (a) One Hundred Thousand Dollars ($100,000) per disbursement and (b) the amount of TI/Leasing Commissions/Capital Improvement Funds then on deposit in the TI/Leasing Commissions/Capital Improvement Reserve Account; or 

(iv)for any Tenant Improvement Costs/Leasing Commissions/Capital Improvement Costs incurred or paid more than one (1) year prior to the date of the Disbursement Request.

C.No Default or Event of Default shall exist as of the date of the Disbursement Request or the date on which the disbursement is to be funded.  

D.Administrative Agent shall have received evidence to its reasonable satisfaction that Lender continues to have a first priority Lien under each Security Instrument, including, at Administrative Agent’s sole option, receipt of title reports showing Administrative Agent’s first priority Lien under each Security Agreement, as of the date of disbursement, and showing such Liens to be subject to no exceptions to title to any Individual Property other than the Loan Documents and the Permitted Encumbrances.

E.With respect to disbursement of TI/Leasing Commissions/Capital Improvement Funds for Tenant Improvement Costs and/or Leasing Commissions:

(i)The Tenant Improvement Costs and Leasing Commissions have been incurred in connection with an Approved Lease.

(ii)Administrative Agent has approved (in writing) the applicable Tenant and Lease for which disbursement is requested or such Lease is a Safe Harbor Lease (any such Lease an “Approved Lease”), and Administrative Agent has received a fully executed copy of such Approved Lease. 

F.Administrative Agent shall have received evidence reasonably satisfactory to Administrative Agent that all amounts owed to third parties in connection with the applicable Tenant Improvements, Leasing Commissions and Capital Improvements are due and have been paid, or if not yet paid, have been incurred and will be paid by the requested disbursement (including a certification signed by Borrowers confirming the same, billing statements, invoices and, at Administrative Agent’s option, lien waivers (final or conditional upon payment from the proceeds of the applicable Disbursement Request) from any general contractor or potential lienor under applicable 

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Legal Requirements); provided that if any TI/Leasing Commissions/Capital Improvement Funds are disbursed hereunder based on receipt of conditional lien waivers, then no additional TI/Leasing Commissions/Capital Improvement Funds will be disbursed until Administrative Agent has received final unconditional lien waivers with respect to the applicable Tenant Improvements, Leasing Commissions and Capital Improvements for which TI/Leasing Commissions/Capital Improvement Funds were previously disbursed.

G.With respect to disbursement of TI/Leasing Commissions/Capital Improvement Funds for Tenant Improvement Costs and/or Capital Improvement Costs:

(i)Administrative Agent has approved  the budget for the Tenant Improvement Costs related to the applicable Approved Lease and/or the budget for the Capital Improvement Costs, as applicable, and Administrative Agent has received a reasonably detailed description of the Tenant Improvement Costs and/or Capital Improvement Costs to which the requested funds are to be applied, cross referenced against the applicable approved budget, together with evidence that such costs have been incurred in accordance with such approved budget or that such expenditures have otherwise been approved by Administrative Agent in writing. 

(ii)Administrative Agent has received (x) evidence in form and substance reasonably satisfactory to Administrative Agent that the Tenant Improvements and/or Capital Improvements, as applicable, have been approved by all applicable Governmental Authorities and any other parties from whom approval is required  and (y) a certificate signed by Borrowers, and, if the Tenant Improvement Costs and/or Capital Improvement Costs in respect of such Tenant Improvements and/or Capital Improvements are in excess of $50,000.00, if an architect and/or engineer has been engaged with respect to the Tenant Improvements and/or Capital Improvements, a certificate signed by such architect and/or engineer (i) certifying that all applicable Tenant Improvements and/or Capital Improvements (or portions thereof) to which the requested funds are to be applied have been (a) satisfactorily completed in accordance with approved plans and specifications (if any) and in accordance with all required Permits, and (b) approved by all applicable Governmental Authorities and any other parties from whom approval is required, (ii) certifying that all required Permits for such Tenant Improvements and/or Capital Improvements have been obtained, and (iii) attaching copies of all such approvals and Permits.

(iii)At Administrative Agent’s option, (i) Administrative Agent’s employee, construction consultant or other representative of Administrative Agent shall have conducted an inspection confirming satisfactory completion of the applicable Tenant Improvements and/or Capital Improvements (or portions thereof) to which the requested funds are to be applied, and (ii) Administrative Agent has received photographs evidencing completion of the applicable Tenant Improvements and/or Capital Improvements (or portions thereof) to which the requested funds are to be applied.

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(iv)Prior to the final disbursement of funds for any Tenant Improvement and/or Capital Improvement, to the extent required under applicable Legal Requirements, Administrative Agent has received either (i) a final or temporary certificate of occupancy (or the legal equivalent satisfactory to Administrative Agent) for the applicable portion of the Property, or (ii) evidence satisfactory to Administrative Agent that an application for a final certificate of occupancy (or the legal equivalent satisfactory to Administrative Agent), together with all necessary accompanying paperwork, has been filed with the applicable governmental authority, as certified by an architect’s certificate signed by Borrowers’ architect.

(v)If “punchlist” items remain to be completed with respect to the applicable Capital Improvements, an amount equal to one hundred twenty-five percent (125%) of the aggregate cost to complete such punchlist items shall be retained by Administrative Agent until all such punchlist items have been completed.

(vi)If Borrowers elect to request disbursements of portions of the TI/Leasing Commissions/Capital Improvement Funds for portions of any Capital Improvement, and there are multiple disbursements following final completion of such Capital Improvement, then (i) Administrative Agent shall retain a “holdback” equal to ten percent (10%) of the amount of the fixed price or guaranteed maximum price contract for such Capital Improvement until such Capital Improvement has been fully completed in accordance with the Loan Documents, and (ii) Borrowers shall deliver to Administrative Agent a certificate of an engineer or architect approved by Administrative Agent stating the amount required to complete such Capital Improvement.  If such amount is in excess of the balance of the TI/Leasing Commissions/Capital Improvement Funds available for such Capital Improvement in accordance with the budget approved by Administrative Agent pursuant to Section 4.3.4(G)(i), as reasonably determined by Administrative Agent, then no disbursements of TI/Leasing Commissions/Capital Improvement Funds shall be made until Borrowers have expended Borrowers’ own funds towards the completion of such Capital Improvement in an amount equal to such excess.  In addition, without limiting the foregoing provisions of this section, Borrowers shall be required to cause the final completion of each Capital Improvement even if the portion of the TI/Leasing Commissions/Capital Improvement Funds deposited in the TI/Leasing Commissions/Capital Improvement Reserve Account that are allocated for such Capital Improvement are not sufficient to pay all of the costs and expenses required in order to achieve such final completion.

H.With respect to disbursement of TI/Leasing Commissions/Capital Improvement Funds for Tenant Improvement Costs:

(i)Administrative Agent shall not be obligated to disburse any TI/Leasing Commissions/Capital Improvement Funds from the TI/Leasing Commissions/Capital Improvement Reserve Account in an aggregate amount for all Tenant Improvements in respect of an Approved Lease greater than an aggregate amount equal to the sum of (a) (I) the portion of the space (if any), measured in 

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square feet, demised pursuant to such Approved Lease as office space times (II) $15.00, and (b)(I) the portion of the space (if any), measured in square feet, demised by such Approved Lease as industrial space, times (II) $5.00.  

(ii)Prior to the final disbursement of funds for any Tenant Improvement, Administrative Agent has received an estoppel certificate from the Tenant under the applicable Approved Lease for which disbursement is requested in the form attached hereto as Exhibit C.

I.With respect to disbursement of TI/Leasing Commissions/Capital Improvement Funds for Leasing Commissions:

(i)Administrative Agent shall have received (a) a reasonably detailed description of the transaction for which the Leasing Commissions were incurred, (b) the identities of the parties involved in the transaction, (c) a copy of the agreement under which the commission was paid or has become payable (the “Leasing Commissions Agreement”) and (d) the amount of the commission and an explanation of how the commission was calculated.

(ii)Administrative Agent shall not be required to make any disbursement to the extent the Leasing Commissions for which such disbursement is requested (a) are not required to be paid pursuant to any Leasing Commissions Agreement, or (b) will be paid to an Affiliate of Borrowers to the extent such Leasing Commissions are in excess of the then market rate commission for similar leases, as approved in writing by Administrative Agent,  or (c) are in excess of the greater of (I) 6% of the base rent payable over the first five years of the applicable Approved Lease and 6% of the base rent payable over the remainder of the lease term or (II) the then market rate commission for similar leases, as approved in writing by Administrative Agent. 

4.3.5Return and Direct Disbursement of Funds

.  If any Tenant Improvement Costs, Leasing Commissions and/or Capital Improvement Costs in respect of which Administrative Agent has disbursed TI/Leasing Commissions/Capital Improvement Funds out of the TI/Leasing Commissions/Capital Improvement Reserve Account are subsequently rebated, returned or reimbursed to Borrowers, then Borrowers shall promptly remit such rebated, returned or reimbursed amounts to Administrative Agent, and Administrative Agent shall deposit the same back into the TI/Leasing Commissions/Capital Improvement Reserve Account; provided, however, that so long as no Event of Default exists, if the TI/Leasing Commissions/Capital Improvement Reserve Account contains the Maximum TI/Leasing Commissions/Capital Improvement Reserve Amount, then Borrowers shall not be obligated to remit such rebated, returned or reimbursed amounts to Administrative Agent.  Upon Administrative Agent’s approval of any Disbursement Request, unless the requested TI/Leasing Commissions/Capital Improvement Funds will be used to reimburse Borrowers for costs previously paid by Borrowers, Administrative Agent may in Administrative Agent’s sole discretion fund or instruct Servicer to fund the requested TI/Leasing Commissions/Capital Improvement 

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Funds directly to the tenant, materialman, contractor, subcontractor, leasing agent or other third party entitled thereto.

4.4Foreclosure Proceeds Reserve.

 

4.4.1On or prior to any fore

closure sale of any Individual Property, Administrative Agent shall establish (or cause Servicer to establish) a separate deposit account segregated from all other accounts of Administrative Agent or Servicer designated by Administrative Agent which account shall in all cases be:  (1) in the name of Administrative Agent on behalf of Lender as secured party of Borrowers, or (2) if Administrative Agent elects in its sole and absolute discretion, in the name of Servicer, for the benefit of and in trust for Administrative Agent and/or Lender and their successors and assigns (or as agent of Administrative Agent and/or Lender), as secured party of the Borrowers (in which event, Servicer shall hold such funds as Administrative Agent’s and/or Lender’s agent), or (3) if Administrative Agent elects in its sole and absolute discretion, in such other name as Administrative Agent shall designate that indicates such account is held by Administrative Agent and/or Lender or Administrative Agent’s and/or Lender’s agent or trustee as secured party of the Borrowers (the account or accounts in which the Excess Foreclosure Proceeds (as hereinafter defined) are held from time to time are hereinafter collectively referred to as the “Excess Foreclosure Proceeds Reserve”).

4.4.2Any cash distributed to any Borrower or held by any Borrower in respect of the proceeds of any foreclosure sale of any Individual Property, whether held by or on behalf of any Borrower (collectively, the “Excess Foreclosure Proceeds”), shall be immediately deposited with Administrative Agent for deposit into the Excess Foreclosure Proceeds Reserve.

4.4.3Each Borrower hereby grants to Administrative Agent and Lender a security interest in the Excess Foreclosure Proceeds Collateral (as hereinafter defined) to secure the timely payment and performance by such Borrower of the Pledge and Security Agreement Obligations.  The term “Excess Foreclosure Proceeds Collateral” shall mean all Excess Foreclosure Proceeds, all money or cash from time to time on deposit in the Excess Foreclosure Proceeds Reserve, all of Borrowers’ right, title and interest in and to the Excess Foreclosure Proceeds Reserve and the Excess Foreclosure Proceeds; all proceeds and all rights to payment from the Excess Foreclosure Proceeds Reserve and the Excess Foreclosure Proceeds; all interest accruing thereon; any certificates, instruments and securities or other “investment property” (as defined in the New York Uniform Commercial Code), if any, representing the Excess Foreclosure Proceeds; all claims, demands, general intangibles, choses in action and other rights or interests of each Borrower in respect of the Excess Foreclosure Proceeds Reserve and the Excess Foreclosure Proceeds; any increases, renewals, extensions, substitutions and replacements thereof; and all proceeds of the foregoing.  To the extent Administrative Agent’s and/or Lender’s security interest in any portion of the Excess Foreclosure Proceeds Collateral may be perfected by possession thereof, Administrative Agent and/or Lender shall be deemed to be in possession of the same by virtue of Servicer holding the Excess Foreclosure Proceeds Collateral as Administrative Agent’s and/or Lender’s agent and for Lender’s benefit in accordance with this Agreement.  To the extent Administrative Agent’s and/or 

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Lender’s security interest in any portion of the Excess Foreclosure Proceeds Collateral may be perfected by control thereof, Administrative Agent and/or Lender shall be deemed to be in control of the same by virtue of Servicer, in its capacity as Administrative Agent’s and/or Lender’s agent with respect to the Excess Foreclosure Proceeds Collateral, being a customer of the bank in which Servicer holds the Excess Foreclosure Proceeds Collateral.  Each Borrower hereby represents and warrants to Administrative Agent and Lender that as of the date hereof, the Excess Foreclosure Proceeds Collateral is free and clear of all liens, encumbrances and claims of any party, except for the security interest and rights of Administrative Agent and Lender granted hereunder.  By execution of this Agreement, Servicer acknowledges Administrative Agent’s and Lender’s security interest in the Excess Foreclosure Proceeds and the Excess Foreclosure Proceeds Collateral and agrees that Servicer will hold the Excess Foreclosure Proceeds and the Excess Foreclosure Proceeds Collateral in Servicer’s possession for the benefit of Administrative Agent, and that any and all accounts in which Servicer holds such Excess Foreclosure Proceeds (including, without limitation, the Excess Foreclosure Proceeds Reserve) shall be titled in Servicer’s name for the benefit of Administrative Agent.  Except for the liens, encumbrances and security interests granted to Administrative Agent and Lender hereunder and under the Loan Documents, no Borrower shall create or permit the creation of any lien, encumbrance of security interest in or to the Excess Foreclosure Proceeds Collateral during the term of the Loan for so long as such Excess Foreclosure Proceeds Collateral is held by Administrative Agent or Lender, or by Servicer as agent for Administrative Agent or Lender, hereunder.

4.4.4The provisions of this Section 4.4 shall not limit the rights of Administrative Agent or Lender in respect of the foreclosure of any or each of the Individual Properties. The provisions of this Section 4.4 expressly survive any foreclosure of any or each of the Individual Properties and/or the transfer of title to any or each of the Individual Properties to Administrative Agent or Lender or their designee or any purchaser at a foreclosure sale.  

ARTICLE 5

MAINTENANCE AND PLEDGE OF ACCOUNTS

5.1Maintenance of Accounts

.

5.1.1Name of Accounts

.  Administrative Agent may in Administrative Agent’s sole discretion and at its sole option, appoint Servicer to hold the funds in any of the Accounts to be held on Administrative Agent’s behalf by Servicer, in which case Servicer shall hold such funds as Administrative Agent’s agent and for the benefit of Lender.  Each of the Accounts shall be, at Administrative Agent’s option, held by Administrative Agent or Servicer (i) in the name of Administrative Agent as secured party of Borrowers, (ii) in the name of Servicer, for the benefit of, and in trust for, Administrative Agent and its successors and assigns (or as agent of Administrative Agent), or (iii) in such other name as Administrative Agent shall designate that indicates such account is held by Administrative Agent or Administrative Agent’s agent or trustee.  Notwithstanding anything to the contrary in the Loan Documents, Administrative Agent is not, and shall not be deemed to 

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be, Administrative Agent’s agent in any capacity other than as the holder of the funds in the Accounts on behalf of Administrative Agent. 

5.1.2Disbursement Authority

.  Only Administrative Agent or Servicer, or Persons designated by Administrative Agent, in each case in Administrative Agent’s sole discretion, shall have the authority to make withdrawals or disbursements from the Accounts, and Borrowers shall have no right to withdraw or otherwise transfer funds from any Account, to close any Account, or to otherwise modify or exercise any authority over any Account or any funds on deposit therein.  Borrowers hereby irrevocably and unconditionally authorize Administrative Agent and Servicer, and grant to Administrative Agent and Servicer, a continuing, irrevocable, and unconditional power of attorney (which power of attorney is coupled with an interest) in the name of Borrowers, without notice to or further consent or authorization from Borrowers:  (i) to make withdrawals and disbursements from the Accounts in accordance with the terms and conditions of this Agreement; (ii) to open mail and other documents delivered to Administrative Agent, Lender or Servicer hereunder, whether such mail is addressed to Borrowers, Administrative Agent, Lender or any other Person; (iii) to endorse all checks in the name of Borrowers, Property Manager or any of Borrowers’ Affiliates delivered to Servicer, Administrative Agent or Lender, without recourse to Servicer, Administrative Agent or Lender, and to deposit such checks into the Deposit Account, in each case, in accordance with the terms and conditions of this Agreement; (iv) to disburse amounts on deposit in the Accounts to the applicable Persons in the order and priority set forth in this Agreement; and (v) to otherwise carry out the duties and obligations imposed upon Administrative Agent, Lender or Servicer pursuant to the terms of this Agreement.  Notwithstanding the foregoing, Borrowers shall have “viewing access,” only to the Deposit Account. 

5.1.3Investment of Funds

.  Each of the Deposit Account, the Excess Cash Subaccount, the TI/Leasing Commissions/Capital Improvement Reserve Account, the Excess Foreclosure Proceeds Reserve and any Capital Proceeds Account shall be (i) a federally insured, non-interest-bearing account (provided that no such Account shall be required to be one hundred percent (100%) federally insured), and (ii) a separate, segregated account (and the funds therein may not be commingled with other monies held by Administrative Agent or Servicer), but shall not constitute a trust fund for the Borrowers.  Notwithstanding the foregoing, if Borrowers request that the Deposit Account, the Excess Cash Subaccount, the TI/Leasing Commissions/Capital Improvement Reserve Account, the Excess Foreclosure Proceeds Reserve or any Capital Proceeds Account be an interest-bearing account, and provided that the Administrative Agent and Servicer are able to reissue a Federal 1099 Form to credit the interest income on such interest-bearing Account to Borrowers, then (a) all interest earned from time to time on the funds in such Account shall be added to and shall become a part of the funds held in such Account, (b) all such interest income shall be for the benefit of Borrowers and shall be reported for federal and, if applicable, state and local income tax purposes, as income of, and taxable to, Borrowers, (c) Administrative Agent or Servicer may select the interest-bearing account in which the applicable funds are invested, and none of Administrative Agent, Lender and Servicer shall be deemed to guaranty any returns on such invested funds, and (d) Borrowers shall supply to Administrative Agent and Servicer all documents and information reasonably requested by Administrative Agent or Servicer in connection with the 

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investment of such funds, including W-9 forms and Borrowers’ taxpayer identification numbers.  Borrowers hereby assume all risk of investment loss with respect to the Accounts, and Administrative Agent, Lender and Servicer shall have no liability to Borrowers for any Losses that may be incurred with respect to the Accounts and the funds held therein (except to the extent caused solely and directly by the willful misconduct or gross negligence of Administrative Agent or Servicer, as determined by a final decision of a court of competent jurisdiction).

5.1.4Application During Event of Default

.  Notwithstanding anything to the contrary contained herein or in any of the other Loan Documents, in addition to exercising any or all of its other rights and remedies under the Loan Documents or applicable law, upon an Event of Default, Administrative Agent may, at Administrative Agent’s option (i) direct Servicer, in writing, to pay to Administrative Agent all or any part of the funds in any Account specified by Administrative Agent in such written direction, without demand or notice to Borrowers, (ii) setoff, recoup or otherwise apply all or any part of the funds in any Account against all or any part of the Secured Obligations (whether matured, unmatured, due or not yet due), in such order, priority and manner as Administrative Agent shall determine, (iii) apply all or any part of the funds in any Account to satisfy any of the other obligations of Borrowers under the Loan Documents, and/or (iv) hold all or any part of the funds in any Account as additional cash collateral for the Secured Obligations without applying the same pursuant to clauses (i) through (iii) above and without any obligation to disburse any or all of such funds pursuant to this Agreement or the other Loan Documents.  Promptly after receiving any such written direction, Servicer shall pay to Administrative Agent all of the funds in any Account or the part thereof specified in such written direction, as the case may be.  If Administrative Agent applies any of the funds in any Account to repay any portion of the Principal Indebtedness during the existence of an Event of Default, then Borrowers shall be liable for the payment of any yield maintenance or prepayment premium in connection with such application in accordance with Section 2.3.  Borrowers hereby irrevocably constitute and appoint Administrative Agent as Borrowers’ true and lawful attorney-in-fact, with full power of substitution, during the continuation of an Event of Default, to execute, acknowledge and deliver any instruments and to exercise and enforce every right, power, remedy, option and privilege of Borrowers with respect to the Account Collateral, and do in the name, place and stead of Borrowers, all such acts, things and deeds for and on behalf of and in the name of Borrowers with respect to the Account Collateral, that Borrowers could or might do or that Administrative Agent may deem necessary or desirable to more fully vest in Administrative Agent the rights and remedies provided for herein with respect to the Account Collateral and to accomplish the purposes of this Agreement.  The foregoing powers of attorney are irrevocable and coupled with an interest and shall terminate upon indefeasible repayment of the Secured Obligations in full.  

5.2Pledge of Accounts; Security Interests

.

5.2.1Pledge of Account Collateral

.  To secure the full and punctual payment and performance of all of the Secured Obligations, Borrowers hereby assign, convey, pledge and transfers to Administrative Agent, as secured party, and grants Administrative Agent a first and continuing security interest in and to, the Account Collateral.  To the extent 

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Administrative Agent’s security interest in any portion of the Account Collateral may be perfected by possession thereof, Administrative Agent shall be deemed to be in possession of the same by virtue of Servicer holding the Account Collateral as Administrative Agent’s agent and for Administrative Agent’s benefit in accordance with this Agreement.  To the extent Administrative Agent’s security interest in any portion of the Account Collateral may be perfected by control thereof, Administrative Agent shall be deemed to be in control of the same by virtue of Servicer, in its capacity as Administrative Agent’s agent with respect to the Account Collateral, being a customer of the bank in which Servicer holds the Account Collateral.  At Administrative Agent’s option, Administrative Agent may notify the financial institution that holds the applicable Accounts of Administrative Agent’s security interest in the Account Collateral.  Borrowers hereby authorize Administrative Agent to file such financing statements in such locations as Administrative Agent deems reasonably necessary to perfect Administrative Agent’s security interest in the Account Collateral, and Borrowers hereby agree to execute such other documents as Administrative Agent may request to perfect the rights assigned and the security interest granted by this Agreement, and shall pay the cost of filing such financing statements in such offices in such jurisdictions as Administrative Agent may reasonably require.   

5.2.2Control

.  The Accounts shall be under the sole dominion and control of Administrative Agent, and the “control” of Administrative Agent within the meaning of Section 9-104 and Section 9-106 of the UCC.  The Account Collateral shall be subject to such Legal Requirements, and such applicable regulations of the Board of Governors of the Federal Reserve System and of any other banking authority or Governmental Authority, as may now or hereafter be in effect, and to the rules, regulations and procedures of Administrative Agent relating to demand deposit accounts generally from time to time in effect. 

5.2.3No Waiver

.  Until such time as all Secured Obligations are fully and indefeasibly satisfied in cash, any and all of Administrative Agent’s rights with respect to the pledge of and security interest in the Account Collateral granted hereunder shall continue unimpaired, and to the extent permitted by applicable Legal Requirements, Borrowers shall be and remain obligated in accordance with the terms hereof, notwithstanding (i) any proceeding of any Borrowers under any Bankruptcy Law, (ii) the release or substitution of Account Collateral at any time, or of any rights or interests therein or (iii) any delay, extension of time, renewal, compromise or other indulgence granted by Administrative Agent in the event of any Default or Event of Default with respect to the Account Collateral or otherwise hereunder. 

5.2.4Treatment of Account Collateral in Bankruptcy

.  Administrative Agent, Lender and Borrowers hereby acknowledge that upon the filing of a bankruptcy petition by or against any Borrower under any Bankruptcy Laws, the Account Collateral (whether collected or uncollected, or then due or becoming due thereafter) shall not be deemed to be property of such Borrower’s bankruptcy estate within the meaning of Section 541 of the Bankruptcy Code.  In the event, however, that a court of competent jurisdiction determines that, notwithstanding the foregoing characterization of the Account Collateral by Borrowers, Administrative Agent and Lender, the Account Collateral does constitute property of any Borrower’s bankruptcy estate, then Administrative Agent, Lender and 

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Borrowers hereby further acknowledge that all such Account Collateral, whether due and payable before or after the filing of the petition, is, and shall be, cash collateral of Administrative Agent and Lender pursuant to Section 363 of the Bankruptcy Code.  Borrowers acknowledge that Administrative Agent and Lender do not consent to Borrowers’ use of such Account Collateral (except to the extent expressly provided for in this Agreement or ordered by a United States bankruptcy court) and that, in the event Administrative Agent elects to give consent to such use, such consent shall only be effective if given in writing and if provided to Servicer.  Except as provided in the immediately preceding sentence, Borrowers shall have no right to use or apply or to require the use or application of such Account Collateral unless (i) Borrowers have received a court order authorizing the same and (ii) Borrowers have provided such adequate protection to Administrative Agent and Lender as required by the bankruptcy court. 

5.3Return of Funds

.  Upon indefeasible payment in full of the Secured Obligations, Borrowers shall be entitled to the return, upon Borrowers’ request and at Borrowers’ expense, of any funds then on deposit in the Accounts that have not otherwise been applied pursuant to the terms of this Agreement or any other Loan Document.

ARTICLE 6

REPRESENTATIONS AND WARRANTIES

6.1Representations and Warranties as to Entities

.  Each Borrower hereby represents and warrants that as of the Closing Date (or as of the date that such representations and warranties are being remade, as applicable, subject to changes that may have occurred and were disclosed to Administrative Agent in writing provided that any such change (i) does not otherwise create or result in any Default or Event of Default under this Agreement or any other Loan Document and (ii) arose due to changes in facts and circumstances that do not independently constitute a Default or Event of Default under this Agreement or any other Loan Document):

6.1.1Due Authorization; Approvals

.  Each individual who executes each of the Loan Documents on behalf of each Borrower Control Person has been duly authorized by all necessary corporate, partnership, limited liability company or other action on the part of such Borrower Control Person.  Each Borrower Control Person has obtained all consents and approvals required in connection with the execution, delivery and performance by each Borrower Control Person of each of the Loan Documents to which such Borrower Control Person is a party.  No authorization, approval, consent or other action by, and no notice to or filing with, any Governmental Authority is required for the due execution, delivery and performance by the Borrower Control Persons of any of the Loan Documents or the effectiveness of any assignment of any of the Borrower Control Persons’ rights and interests of any kind to Administrative Agent.

6.1.2Organizational Structure; Borrower’s Legal Name; No Conflict

.

A.Each Borrower is (i) a limited liability company, duly formed, validly existing and in good standing under the laws of the jurisdiction of its formation, (ii) the sole owner (together with the other Borrowers) of the Property, (iii) owned by the 

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Borrower Owner Persons, as set forth in the Organizational Certificate, and (iv) solely managed and Controlled by Managing Member. Each Connecticut Borrower is authorized to transact business and in good standing under the laws of the State of Connecticut. Each New Jersey Borrower is authorized to transact business and in good standing under the laws of the State of New Jersey.  The full legal name of each Borrower is as set forth on the signature page hereof.  No Borrower conducts any business under any other name (including any trade name or fictitious business name).  Each Borrower is as of the Closing Date, and has always been since its formation, a Single Purpose Entity. 

B.Managing Member is (i) a limited partnership duly formed, validly existing and in good standing under the laws of the State of Delaware, and (ii) is the sole owner of one hundred percent (100%) of the ownership interests in each of the Borrowers and the sole managing member of each Borrower.

C.The execution, delivery and performance by each Borrower and Guarantor of each of the Loan Documents to which such Borrower or Guarantor is a party (i) will not violate any provision of the certificate of incorporation, by-laws, certificate of partnership, partnership agreement, certificate of formation, articles of organization, operating agreement, trust agreement or other organizational documents of such Borrower or Guarantor, (ii) will not contravene any Legal Requirements or any contractual or other restriction binding on or affecting such Borrower or Guarantor, and (iii) will not result in or require the creation of any Lien (other than pursuant to the Loan Documents) upon or with respect to any of the properties of such Borrower or Guarantor.

6.1.3Taxes

.  Each Borrower and Guarantor has (i) filed or has obtained extensions to file all tax returns that are required to be filed by such Borrower or Guarantor, as applicable, pursuant to applicable Legal Requirements (with respect to the Property or otherwise) and (ii) paid all Property Impositions and all other taxes and assessments that are due and payable by such Borrower or Guarantor, as applicable, (with respect to the Property or otherwise).

6.1.4Enforceability

.  This Agreement and each of the other Loan Documents to which any Borrower or Guarantor is a party will, when delivered hereunder, be legal, valid and binding obligations of such Borrower or Guarantor, as applicable, enforceable against each such Borrower or Guarantor, as applicable, in accordance with its respective terms, except as limited by equitable principles and bankruptcy, insolvency and similar laws affecting creditors’ rights.

6.1.5Litigation

.  There is no pending or threatened (in writing) litigation, action, proceeding, arbitration or investigation, against or involving any of the Borrower Control Persons (excluding the members of the REIT Board) or the Property before or by any Governmental Authority.

6.1.6Defaults of Borrower Control Person

.  None of the Borrower Control Persons (excluding the members of the REIT Board) is in default, in any manner that would adversely affect such Borrower Control Person’s properties, assets, operations or condition (financial or otherwise), in the performance, observance or fulfillment of any of the 

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obligations, covenants or conditions set forth in any agreement or instrument to which such Borrower Control Person is a party or by which such Borrower Control Person or such Borrower Control Person’s properties, assets or revenues are bound.  No Default or Event of Default exists.

6.1.7No Bankruptcy Filing

.  None of the Borrower Control Persons (excluding the members of the REIT Board) has made any assignment for the benefit of creditors, nor has any of the Borrower Control Persons filed, or had filed against such Borrower Control Person, any petition in bankruptcy.  No part of the Property, Chattels, Intangible Personalty or other Collateral is in the hands of a receiver, no application for a receiver is pending with respect to any portion of the Property, the Chattels, the Intangible Personalty or the other Collateral, and no part of the Property, Chattels, Intangible Personalty or other Collateral is subject to any foreclosure or similar proceeding.

6.1.8Solvency

.  Giving effect to the transactions contemplated hereby, the fair saleable value of each Borrower’s assets, taken as a whole, exceeds and (immediately following the making of the Loan) will exceed such Borrower’s total liabilities (including subordinated, unliquidated, disputed and contingent obligations of such Borrower).  Each Borrower’s assets, do not and (immediately following the making of the Loan) will not constitute unreasonably small capital to carry out the business of such Borrower as conducted or as proposed to be conducted.

6.1.9Other Indebtedness

.  Borrowers have no Indebtedness other than any Permitted Indebtedness and the Secured Obligations.

6.1.10Full and Accurate Disclosure; Financial Information

.  No statement of fact made by or on behalf of any Borrower Control Person in this Agreement or in any of the other Loan Documents is untrue or omits to state any material fact necessary to make statements contained herein or therein not misleading.  All financial data concerning the Borrower Control Persons, the Property and the other Collateral that has been delivered by or on behalf of any Borrower Control Person to Administrative Agent is true, complete and correct in all material respects and has been prepared in accordance with Approved Accounting Principles (provided, however, that with respect to the preparation of the operating and profit and loss statements of Guarantor delivered to Administrative prior to the Closing Date, land, building, and accumulated depreciation and amortization was removed and replaced with a midpoint estimated market value based on the reports issued by Kroll, LLC used in Guarantor’s net asset valuation set forth in Guarantor’s most recent annual balance sheet).  Since the delivery of such data (including the financial statements for Borrowers dated as of March 15, 2022), there has been no material adverse change in the financial position of any Borrower Control Person (excluding the members of the REIT Board), the Property, or in the results of operations of any Borrower Control Person (excluding the members of the REIT Board).  None of the Borrower Control Persons (excluding the members of the REIT Board) have incurred any material obligation or liability, contingent or otherwise, not reflected in such financial data.

6.1.11Investment Company Act; Public Utility Holding Company Act

.  No Borrower Control Person is (i) an “investment company”, an “affiliated person” of, 

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“promoter” or “principal” underwriters for or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, (ii) a “holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a “holding company” or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of 1935, as amended, or (iii) subject to any other Legal Requirements that purports to restrict or regulate its ability to borrow money in accordance with this Agreement.

6.1.12Compliance with Legal Requirements

.  Except for the Open Permit (as defined in Schedule 13), the Meadow Parking Shortage (as defined in Schedule 13) and the past-due Orange, Connecticut Fire Marshal inspections for the Cascade Property, the 15 Executive Property, the 25 Executive Property, the 35 Executive Property, the Lambert Property and the Marsh Property, each Borrower and Guarantor is in compliance with all applicable Legal Requirements, and no Borrower or Guarantor has received any written notice that any Borrower or Guarantor is in violation of any Legal Requirement.

6.1.13No Foreign Person or Prohibited Person; Source of Funds

.  No Borrower Control Person is a “foreign person” within the meaning of Sections 1445 and 7701 of the Code.  No Borrower Control Person is a Prohibited Person or receives any of its revenue or capital from business conducted in or with Sanctioned Countries.

6.1.14Labor Matters; ERISA

.  No Borrower is a party to any collective bargaining agreements or similar labor agreements.  No portion of the Property is subject to any collective bargaining agreements or similar labor agreements.  Each Borrower complies with, or is not subject to, ERISA.  Neither the making of the Loan nor the exercise by Administrative Agent and/or Lender of any of Administrative Agent’s and/or Lender’s rights under the Loan Documents constitutes or will constitute a non-exempt, prohibited transaction under ERISA.

6.1.15No Offsets

.  None of the Borrower Control Persons has any offsets, claims, counterclaims or defenses against Administrative Agent, Lender or any of the Secured Obligations, and any such offsets, claims, counterclaims or defenses are hereby waived.

6.2Representations and Warranties as to the Property

.  Each Borrower hereby represents and warrants to Administrative Agent and Lender that as of the Closing Date (or as of the date that such representations and warranties are being remade, as applicable, subject to changes that may have occurred and were disclosed to Administrative Agent in writing provided that any such change (i) does not otherwise create or result in any Default or Event of Default under this Agreement or any other Loan Document and (ii) arose due to changes in facts and circumstances that do not independently constitute a Default or Event of Default under this Agreement or any other Loan Document):

6.2.1Title to the Property

.  Borrowers own and hold good, marketable and indefeasible fee simple title to the Property, and such fee simple title is free and clear of all Liens, subject only to the Liens of the Loan Documents and the Permitted Encumbrances (this representation is being made solely for the benefit of Administrative Agent and Lender and not for any title insurer).  Borrowers are the sole and absolute owners of the 

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Chattels, the Intangible Personalty and the other Collateral, free and clear of all Liens, subject only to the Liens of the Loan Documents and the Permitted Encumbrances. No Borrower has sent or received a notice of default under any applicable Permitted Encumbrances and, to Borrowers’ actual knowledge, there are no defaults under any applicable Permitted Encumbrances by Borrowers or any other party, and no conditions that with the passage of time and/or notice would constitute defaults thereunder.  All amounts due and payable by Borrowers under any applicable Permitted Encumbrances have been paid or will be paid in the regular course of business prior to delinquency. There are no purchase options, purchase contracts or agreements, rights of first refusal, rights of first offer, or other similar agreements of any type, in each case, with respect to the purchase of the Property (or any portion thereof), whether written or oral, and there are no other restrictions on transferability presently affecting the Property.

6.2.2Utilities and Public Access; Property Record Agreements

.  Access to and egress from each Individual Property are available and provided by public streets, and Borrowers have no knowledge of any plans by any Governmental Authority to change the highway or road system in the vicinity of any Individual Property or to restrict or change access from any such public street, highway or road to any Individual Property.  All public utility services necessary for the operation of each Individual Property and the Improvements for their intended purposes are available at the boundaries of the Land.  The Property Record Agreements, if any, are in full force and effect and Borrowers have not received any notice of defaults thereunder by any Borrower or any other party and no conditions exist that with the passage of time and/or notice would constitute defaults thereunder.  All amounts due and payable by any Borrower under any Property Record Agreement have been paid.

6.2.3Compliance with Legal Requirements

.  Except for the Open Permit (as defined in Schedule 13), the Meadow Parking Shortage (as defined in Schedule 13) and the past-due Orange, Connecticut Fire Marshal inspections for the Cascade Property, the 15 Executive Property, the 25 Executive Property, the 35 Executive Property, the Lambert Property and the Marsh Property, each Individual Property is in compliance with all applicable Legal Requirements.  No Borrower has received any notice from any Governmental Authority as to any violation of any Legal Requirements.

6.2.4Compliance with Insurance Requirements

.  All Required Insurance Policies are in full force and effect.  All premiums due and payable in respect of such Required Insurance Policies have been paid.  No Borrower has received any notice from any insurance company or inspection or rating bureau (i) terminating or threatening in writing to terminate any Required Insurance Policies insuring any Borrower or any Individual Property, or (ii) setting forth any requirements as a condition to the continuation of any insurance coverage on or with respect to any Borrower or any Individual Property or the continuation thereof at premium rates existing at present that, in either case, has not been remedied or satisfied.

6.2.5Security Instruments and Other Liens

.  To Borrowers’ knowledge, each Security Instrument creates a valid and enforceable first priority Lien on all of the applicable Borrower’s rights, title and interest in and to the applicable Individual Property, 

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Chattels, Intangible Personalty and other Collateral, in each case, subject only to Permitted Encumbrances. This Agreement creates a valid and enforceable first priority Lien on all Account Collateral, subject only to Permitted Encumbrances.  To Borrowers’ knowledge, to the extent governed by the UCC, upon proper recording and/or filing, as applicable, of each of the UCC-1 Financing Statements in the appropriate recording and/or filing office, as applicable, the UCC-1 Financing Statements will perfect the security interest created in favor of Administrative Agent in all property described therein in which a security interest may be perfected by the filing of a financing statement, and such security interest shall be a valid and first priority Lien.  Administrative Agent is the collateral assignee of each Borrower’s interest under the Contracts and the Leases.  There are no prior assignments by any Borrower of the Contracts or of the Leases or any portion of the Gross Revenue.

6.2.6Assessments; Abatements; Separate Tax Lots

.  There are no special or other assessments for public improvements or otherwise now affecting the Property, nor do Borrowers have any knowledge that there are any contemplated improvements affecting the Property that may result in such special or other assessments.  There are no tax abatements or exemptions affecting the Property.  There are no license fees or similar charges required in respect of any filled land, tideland, wetland or other bodies of water.  No Individual Property is jointly assessed (i) with any other real property constituting a separate tax lot or that is otherwise not a part of such Individual Property, or (ii) with any portion of any Individual Property that may be deemed to constitute personal property.  Each Individual Property is comprised of one or more parcels, each of which constitutes a separate tax lot and none of which constitutes a portion of any other tax lot that is not a part of such Individual Property.

6.2.7No Encroachments

.  With respect to each Individual Property, except as set forth on the Survey for such Individual Property, (i) all of the Improvements lie wholly within the boundaries and building restriction lines of the Land, (ii) no improvements on adjoining properties encroach upon the Land, and (iii) no easements or other encumbrances upon the Land encroach upon any of the Improvements, so as to affect the value or marketability of the such Individual Property, except for the Permitted Encumbrances.

6.2.8Leases

.  Attached hereto as Schedule 9 is a true, complete and correct copy of the Rent Roll for each Individual Property.  Except as set forth on the Rent Rolls attached hereto as Schedule 9, (i) there are no occupancy rights (written or oral), Leases or other tenancies affecting any part of the Property and (ii) the Leases and the guaranties thereof have not been modified, amended or restated (and the Leases represent the complete agreement between Borrowers and the Tenants thereunder, and no written or oral agreements or understandings exist between Borrowers and any of the Tenants that grant such Tenants any other rights or that are in any way inconsistent with the rights described in the Leases).  Except as set forth on Schedule 10, (a) the Leases and any guarantees thereof, if any, are in full force and effect, with no uncured defaults thereunder (and no Borrower has received written notice that any Tenants possess any unsatisfied claims against Borrowers), (b) Borrowers have completed all construction and improvements required under the terms of the Leases to be completed by Borrowers, (c) there are no options to extend or (except as a result of a condemnation, casualty or landlord default) terminate any of the Leases, (d) the Leases do not provide the tenants thereunder with an 

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option or a right of first refusal or a right of first offer to rent any additional space or to purchase or acquire any additional interest in the Property or any portion thereof, and (e) there are no security deposits under any of the Leases.  The Leases produce actual monthly rent on an annualized basis (less rent concessions, and excluding percentage rents and tax and expense reimbursements) of not less than $8,856,284.00.  Borrowers have delivered to Administrative Agent true, correct and complete copies of each of the Leases (other than any Lease for a residential apartment unit). 

6.2.9Contracts

.  Except as set forth on Schedule 11, (i) there are no Contracts having a term in excess of one hundred eighty (180) days or not terminable by Borrowers (without penalty) on thirty (30) days’ notice, (ii) Borrowers have delivered to Administrative Agent a true, correct and complete copy of each Contract that is not terminable by Borrowers (without penalty) on thirty (30) days’ notice, (iii) no default by any Borrower exists under any of the Contracts and, to Borrowers’ knowledge, no default by any counterparty exists under any of the Contracts, and (iv) the Contracts represent the complete agreement between Borrowers and such other parties as to the services to be performed or materials to be provided thereunder and the compensation to be paid for such services or materials, as applicable, and such other parties possess no unsatisfied claims against any Borrower.  

6.2.10No Other Real Property

.  Except for the Land and public streets and sidewalks, Borrowers do not use or occupy any other real property in connection with the operation, use, occupancy and management of the Property or any amenities (including parking) made available to Tenants, guests and other users of the Property.

6.2.11Fees, Commissions and Compensation

.  Except as set forth on Schedule 11, there exists no brokerage or listing agreement with respect to any part of the Property and no Person has any right or claim to any fees, commissions, compensation or other remuneration in connection with or arising out of the financing, sale, lease, use, occupancy, management or operation of all or any portion of the Property.

6.2.12Zoning

.  The Property is located in the zoning districts set forth on Schedule 12. Each such designation permits the development, use, operation and maintenance of the applicable Individual Property as such Individual Property is currently operated as a permitted (and not as a non-conforming) use.

6.2.13Flood Zone

.  No portion of the Property is located in a flood hazard area as defined by the Federal Insurance Administration, except as expressly identified in the Survey.

6.2.14Permits

.  Borrowers have obtained or currently hold all Permits.  None of the Permits has been suspended or revoked, all of the Permits are in full force and effect and all amounts due and payable by or on behalf of Borrowers in respect of such Permits have been paid.  No Borrower has received any written notice of default or notice terminating or threatening to terminate any such Permit.

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6.2.15Repairs and Alterations; No Condemnation or Casualty

.  There is no ongoing material alteration, construction or other improvement work at the Property.  No portion of the Property, Chattels or other Collateral (i) is the subject of a pending or threatened condemnation proceeding of which any Borrower has received written notice, or (ii) has been damaged by any casualty that has not been repaired prior to the date hereof.

6.2.16Brokers and Financial Advisors

.  Borrowers have not dealt with any financial advisors, brokers, underwriters, placement agents or finders in connection with the Loan, other than KeyBank Real Estate Capital.  Borrowers on the date hereof shall pay all fees and commissions due to such broker pursuant to a separate written agreement.

6.2.17Intellectual Property

.  To Borrowers’ knowledge, all of the Intellectual Property is in good standing and is uncontested.  Borrowers have not infringed and have not received written notice of infringement with respect to asserted trademarks of others.  To Borrowers’ knowledge, there is no infringement by other Persons on any Intellectual Property.

6.3Reliance on Representations

.  All representations, warranties, covenants and agreements made in this Agreement or in the other Loan Documents shall (i) be deemed to have been relied upon by Administrative Agent and Lender, notwithstanding any investigation heretofore or hereafter made by Administrative Agent or Lender or on Administrative Agent’s or Lender’s behalf or any documents or other materials delivered to or reviewed by Administrative Agent or Lender and (ii) survive termination of this Agreement, the Security Instruments and any other Loan Document (whether by foreclosure, deed-in-lieu of foreclosure or otherwise) but not repayment of the Secured Obligations in cash (provided, that notwithstanding anything to the contrary contained in this Section 6.3, the indemnities included in this Agreement (including, without limitation, the indemnity described in Section 7.1.17) shall survive the repayment in full of the Secured Obligations in cash otherwise).  Borrowers shall be liable to Administrative Agent and Lender for any Losses suffered by Administrative Agent or Lender if any of the foregoing representations and warranties are inaccurate as of the Closing Date (or as of the date that such representations and warranties are being remade, as applicable), regardless of when such inaccuracy may be discovered by, or result in harm to, Administrative Agent or Lender.

ARTICLE 7

COVENANTS

7.1Affirmative Covenants

.

7.1.1Performance of Loan Documents

.  Borrowers shall perform and comply with all covenants, conditions and prohibitions required to be observed, performed or satisfied by Borrowers pursuant to and in accordance with the terms and provisions set forth in the Loan Documents and shall pay when due all Loan Debt Service Payments and all other sums payable under the Loan Documents without any additional notice or demand, other than as expressly set forth in the Loan Documents.  Borrowers shall promptly advise Administrative Agent in writing of (i) any change in the condition, financial or otherwise of any Borrower Control Person that is reasonably likely to have a material adverse effect 

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upon the business operations, properties, assets or financial condition, or legal authority or status, of any Borrower, Guarantor or the Property or that would impair the ability of any Borrower or Guarantor to satisfy or perform any of such Borrower’s or Guarantor’s obligations under any of the Loan Document to which it is a party or (ii) the occurrence of any Event of Default.

7.1.2Performance Under Other Encumbrances

.  Borrowers shall perform and comply with all covenants, conditions and prohibitions required of Borrowers in connection with any Property Record Agreement and any other encumbrance affecting the Property, the Chattels, the Intangible Personalty or the other Collateral, or any part thereof, or any interest therein, regardless of whether such other encumbrance is superior or subordinate to the Lien hereof.

7.1.3Taxes and Assessments

.

A.Payment of Taxes.  Borrowers shall (i) pay, before delinquency and before the imposition of any penalty or interest, all Property Impositions, and (ii) deliver to Administrative Agent, without notice or demand, an official receipt for the payment of such Property Impositions (or, if an official receipt is not provided to Borrowers, other written evidence of the payment of such Property Impositions reasonably acceptable to Administrative Agent) within ten (10) days after each such payment.  Notwithstanding the foregoing, so long as (a) Borrowers have deposited funds with Administrative Agent for the payment of Property Impositions and (b) Administrative Agent is applying funds deposited by Borrowers to the payment of Property Impositions, in each case, pursuant to Section 4.1, then Borrowers shall not be obligated to pay such amounts or provide such written evidence of payment pursuant to this Section 7.1.3(A).  At Administrative Agent’s option, Administrative Agent may retain the services of a firm to monitor the payment of all Property Impositions, the actual cost of which shall be borne by Borrowers.

B.Deposit for Taxes.  Borrowers shall deposit funds with Administrative Agent for the payment of Property Impositions to the extent required by the terms of Section 4.1.

C.Intangible Taxes.  If by reason of any Legal Requirement, any change or amendment thereto or in the interpretation or application thereof, any judicial decision adopted or rendered following the Closing Date, or any request or directive by any Governmental Authority, (i) any tax, assessment or similar charge is imposed against any of the Secured Obligations, any of the Loan Documents, Administrative Agent, Lender, or any interest of Administrative Agent or Lender in any Collateral, (ii) any reserve, special deposit, compulsory loan or similar requirement is imposed on Administrative Agent or Lender or any of Administrative Agent’s or Lender’s Affiliates, (iii) the rate of return on Lender’s capital as a consequence of Lender’s or Administrative Agent’s obligations hereunder is reduced by any amount reasonably deemed by Administrative Agent to be material, or (iv) any other condition is imposed on Lender or Administrative Agent that increases the cost to Lender or Administrative Agent of making, renewing or maintaining the Loan or reduces any amount receivable by Administrative Agent and/or Lender hereunder, then, in any such case, Borrowers shall promptly pay 

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Lender and/or Administrative Agent upon demand any additional amounts necessary to compensate Lender and/or Administrative Agent for such additional costs of Lender and/or Administrative Agent or reduced amount receivable in respect of the Loan, and Borrowers shall indemnify Lender and Administrative Agent against all Losses in connection with any such tax, assessment or other charge.  If Borrowers are unable to pay such amounts before delinquency, then the Secured Obligations shall, at Administrative Agent’s option, become due and payable in full upon ninety (90) days’ notice to Borrowers (and, within such ninety (90) day period, Borrowers shall repay the Principal Indebtedness plus all accrued and unpaid interest thereon, together with all other amounts outstanding under the Loan Documents, in accordance with the prepayment provisions set forth in Section 2.3, but without any prepayment premium).

D.Right to Contest.  Notwithstanding any other provision of this Section 7.1.3 to the contrary, Borrowers shall not be deemed to be in Default solely by reason of Borrowers’ failure to pay any Property Impositions so long as, in Administrative Agent’s judgment, each of the following conditions is satisfied:  (i) Borrowers are engaged in, and diligently pursuing in good faith, administrative or judicial proceedings appropriate to contest the validity or amount of such Property Impositions; (ii) Borrowers’ payment of such Property Impositions would necessarily and materially prejudice Borrowers’ prospects for success in such proceedings; (iii) nonpayment of such Property Impositions will not result in (a) the loss, forfeiture or encumbrance of the Property (or any portion thereof) or any interest of Borrowers, Administrative Agent or Lender therein or (b) any fines or other punitive actions; and (iv) unless Borrowers have already paid the Property Impositions prior to the contest, Borrowers deposit with Administrative Agent, as security for any payment that may ultimately be required, an amount equal to the amount of the disputed Property Impositions plus the interest, penalties and other costs that Administrative Agent estimates are reasonably likely to become payable if Borrowers’ contest is unsuccessful.  For the avoidance of doubt, the funds required to be deposited with Administrative Agent under clause (iv) above shall be in addition to all Property Impositions (and all interest, penalties and other costs) that are not being contested, and will be released to Borrowers for payment of the Property Impositions following conclusion of the contest if no Event of Default exists.

E.Failure to Comply with Contest Requirements.  If Administrative Agent determines that any one or more of the conditions set forth in Section 7.1.3(D) is not satisfied or is no longer satisfied, then Borrowers shall pay the applicable Property Impositions in question not later than the date that is ten (10) days following the date that Administrative Agent provides written notice to Borrowers of such determination.

7.1.4Maintenance and Repair of Property and Chattels; Contracts; Use

.

A.Borrowers shall at all times maintain (or cause to be maintained) each Individual Property and the Chattels in good condition and repair and at a standard not lower than the standard maintained by prudent managers of similar properties in the geographic region of the Property.  Borrowers shall diligently prosecute the completion of any building or other improvement that is at any time in the process of construction on the Property, and shall promptly repair, restore, replace, or rebuild any part of the Property or 

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the Chattels that may be affected by any casualty or any public or private taking or injury to the Property or the Chattels.  All costs and expenses arising out of the foregoing shall be paid by Borrowers whether or not the applicable Capital Proceeds shall be sufficient or available therefor, but subject to the release of the Capital Proceeds if Administrative Agent is required to do so in accordance with this Agreement.  Borrowers shall maintain access to and egress from each Individual Property by public streets.  Borrowers shall maintain all public utility services (including water supply, storm and sanitary sewer facilities, and natural gas, electric, telephone, cable television and high speed internet access facilities) necessary for the operation and maintenance of each Individual Property (including the Improvements) for such Individual Property’s intended purposes, and shall cause all such utilities to be connected so as to serve each Individual Property without passing over other property except for land or easement areas of or available to the utility company providing such utility service.

B.Each Borrower shall at all times maintain, preserve and protect all franchises and trade names, and preserve all of the remainder of such Borrower’s property necessary for the continued conduct of such Borrower’s business.  

C.Borrowers shall timely pay and perform each of Borrowers’ obligations under or in connection with the Contracts.  Borrowers shall not, without Administrative Agent’s prior written consent, (a) enter into any Contract with an Affiliate of any Borrower, Guarantor or any other Borrower Owner Person unless such Contract is (i) negotiated on an arms’-length basis, (ii) does not have a term in excess of three hundred sixty-five (365) days and is terminable by Borrowers (without penalty) on thirty (30) days’ notice, (iii) such Contract, together with any other Contracts with any such Affiliates (other than any Property Management Agreement) does not provide for payments in the aggregate of more than $250,000 per annum and (iv) upon request of Administrative Agent, Borrower provides an executed copy of any such Contract with any such Affiliate, and/or (b) enter into any Contract that has a term in excess of three hundred sixty-five (365) days unless such Contract is terminable by Borrowers (without penalty) on thirty (30) days’ notice.  None of the Borrowers and any Borrower Control Person shall enter into any contract or agreement that contravenes any of the Loan Documents or that provides or has the effect that the performance of the Loan Documents constitutes a default under such contract or agreement or results in the creation of any Lien upon or with respect to the Property, Chattels, Intangible Personalty or other Collateral.  Borrowers shall perform, observe and fulfill, and shall cause Guarantor to perform, observe and fulfill, all of the obligations, covenants and conditions set forth in any agreement or instrument to which any Borrower or Guarantor, as the case may be, or any of the properties, assets or revenues of any Borrower or Guarantor, as the case may be, are bound, if the failure to perform, observe or fulfill any such obligation, covenant or condition would materially and adversely affect the properties, assets, operations or condition (financial or otherwise) of any Borrower or Guarantor, as the case may be, or the ability of any party to the Loan Documents to perform such party’s obligations under the Loan Documents.

D.Borrowers shall use and operate each Individual Property solely for the operation of retail, transportation and industrial use (in each case consistent with the use of each Individual Property as of the Closing Date) and any other use consistent 

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therewith and not otherwise in violation of any Legal Requirements and for no other use or purpose.

E.If recommended by any environmental assessment or audit of any Individual Property (including any assessment or audit performed in connection with the closing of the Loan or following the Closing Date), Borrowers shall establish and shall comply with an operations and maintenance program with respect to such Individual Property, in form and substance reasonably acceptable to Administrative Agent and prepared by an environmental consultant reasonably acceptable to Administrative Agent (each such program, as applicable, an “O&M Program”), including that certain Asbestos Operations and Maintenance Plan prepared by EBI Consulting and dated as of February 1, 2015 with respect to the Lambert Property, the Cascade Property, the 15 Executive Property, the 25 Executive Property, the 35 Executive Property, the 470 Bridgeport Property, the Brook Property, and the 100 American Property.  Borrowers shall not permit any O&M Program to be amended, terminated, replaced or otherwise modified, in each case, without obtaining the prior written consent of Administrative Agent.  Without limiting the generality of the foregoing, Administrative Agent may require (i) Borrowers to deliver periodic notices or reports to Administrative Agent with respect to the work required by an O&M Program in form, substance and at such intervals as Administrative Agent may specify, (ii) an amendment to any O&M Program in order to address changing circumstances, Legal Requirements or other matters, (iii) at the sole cost and expense of Borrowers, one or more supplemental examinations of any Individual Property by environmental consultants specified by Administrative Agent, (iv) access to each Individual Property by Administrative Agent, its agents or servicer, to review and assess the environmental condition of such Individual Property and Borrowers’ compliance with any O&M Program and (v) variation of any O&M Program in response to the reports provided by any such consultants.  Any construction, rehabilitation, modification or renovation at the Property, including any such work that requires the removal of any materials or improvements of any kind in connection with an O&M Program, shall be implemented pursuant to and in accordance with the procedures and programs as set forth in such O&M Program and all applicable Legal Requirements.  Any O&M Program and work resulting therefrom shall be conducted by an accredited, licensed, abatement contractor approved by Administrative Agent.  All fees and expenses incurred by Administrative Agent and Lender for all inspections and review and approval of any O&M Program shall be paid by Borrowers not later than ten (10) days following written demand therefor by Administrative Agent.

7.1.5Condemnation; Casualty; Capital Proceeds

.

A.Notice and Settlement.  If all or any part of the Property, Chattels or other Collateral (i) is taken, or is threatened (in writing) to be taken, by eminent domain or any other public or private action (including any voluntary conveyance in lieu or in anticipation thereof), (ii) shall become the subject of a pending condemnation of which any Borrower has received written notice, or (iii) is damaged by any casualty, then Borrowers shall, promptly after obtaining actual knowledge thereof, provide Administrative Agent with written notice thereof and of the time and place of any scheduled meetings, hearings, trials, and other proceedings relating to such taking, pending condemnation or casualty, 

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together with all papers served and settlement offers and appraisals received in connection therewith.  If an Event of Default exists or the Capital Proceeds are expected to be in excess of $250,000.00, Administrative Agent may participate in all negotiations and appear and participate in all judicial or arbitration proceedings concerning any Capital Proceeds that may be payable as a result of such condemnation or casualty, and may, in Administrative Agent’s sole discretion, compromise or settle, in the names of both Borrowers and Administrative Agent, any claim for any such Capital Proceeds.  Whether or not Administrative Agent is involved in any such negotiation or settlement, any such compromise or settlement shall be subject to the prior written consent of Administrative Agent, which shall not be unreasonably withheld, conditioned or delayed if no Event of Default exists.

B.Payment of Capital Proceeds to Administrative Agent.  Any Capital Proceeds payable as a result of any condemnation, casualty or damage with respect to the Property, Chattels or other Collateral shall be paid directly to Administrative Agent and shall be applied first to reimburse Administrative Agent and/or Lender for all actual out-of-pocket costs and expenses, including out-of-pocket attorneys’ fees, incurred by Administrative Agent and/or Lender in connection with the ascertainment and collection of such Capital Proceeds.  Subject to Section 7.1.5(C), the balance, if any, of any such Capital Proceeds received by Administrative Agent shall, in Administrative Agent’s sole discretion, either be (i) retained and applied by Administrative Agent towards the payment of the Secured Obligations, in such order and manner as Administrative Agent deems appropriate (without prepayment penalty or fee provided that no Default or Event of Default then exists), or (ii) paid over, in whole or in part and subject to such conditions as Administrative Agent may reasonably impose, to Borrowers for the purpose of restoring, repairing, or rebuilding any part of the Property affected by the condemnation, casualty or damage.  In the event that all of the Secured Obligations have been paid or are discharged by the application of less than all of such Capital Proceeds, then, any remaining Capital Proceeds shall be paid over to Borrowers.

C.Application of Capital Proceeds.  Notwithstanding the provisions of Section 7.1.5(B), if the Capital Proceeds received by Administrative Agent are less than the Threshold Amount, then Administrative Agent shall make any such Capital Proceeds available to Borrowers for the purpose of restoring, repairing, or rebuilding any part of the Property affected by the condemnation, casualty or damage, provided that all of the following conditions are satisfied:  (i) there does not then exist any Default or Event of Default; (ii) the condemnation, damage or casualty occurs at least one hundred eighty (180) days prior to the Maturity Date and the restoration is capable of being completed, in Administrative Agent’s judgment, at least one hundred twenty (120) days prior to the Maturity Date; (iii) the restoration, repair or rebuilding will return the applicable Individual Property to substantially the same size, design and utility as existed immediately prior to the condemnation, damage or casualty, and Administrative Agent shall have approved (in writing) all plans and specifications for such restoration, repair or rebuilding; (iv) Borrowers demonstrate to the reasonable satisfaction of Administrative Agent that Borrowers have the financial ability to pay all Loan Debt Service Payments and any other amounts required to be paid under this Agreement and the other Loan Documents and to perform all of the other Secured Obligations during the restoration, repair or rebuilding of 

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the applicable Individual Property from Gross Revenue (excluding the Capital Proceeds, but including business or rental loss insurance proceeds) or otherwise; (v) if, prior to the commencement of any restoration, repair or rebuilding work, Administrative Agent reasonably determines that the then-remaining Capital Proceeds are insufficient to pay for such restoration, repair or rebuilding work, then Borrowers shall deposit with Administrative Agent (prior to the commencement of such restoration, repair or rebuilding work and not later than the date that is fifteen (15) days following written demand by Administrative Agent) such additional funds that Administrative Agent reasonably determines are necessary to complete such restoration, repair or rebuilding work; (vi) if, following the commencement of any restoration, repair or rebuilding work, Administrative Agent reasonably determines that the then-remaining Capital Proceeds (and any other amounts deposited with Administrative Agent to complete such restoration, repair or rebuilding work) are insufficient to pay for such restoration, repair or rebuilding work, then Borrowers shall deposit with Administrative Agent (not later than the date that is fifteen (15) days following written demand by Administrative Agent) such additional funds that Administrative Agent reasonably determines are necessary to complete such restoration, repair or rebuilding work, such that at all times the funds held by Administrative Agent and remaining to be disbursed for purposes of such restoration, repair or rebuilding work shall be sufficient to complete such restoration, repair or rebuilding work; (vii) all Capital Proceeds and other funds provided by Borrowers for such restoration, repair or rebuilding are released under reserve and construction funding arrangements reasonably satisfactory to Administrative Agent; (viii) Borrowers demonstrate to Administrative Agent’s reasonable satisfaction that the applicable Individual Property will have a Debt Service Coverage Ratio of at least 1.2 to 1.0 from Gross Revenue (excluding Capital Proceeds and business or rental loss insurance proceeds) as of the date of the completion of such restoration, repair or rebuilding and during the one hundred eighty (180) day period thereafter, in each case, based upon Administrative Agent’s reasonable projection of the Net Operating Income for the twelve (12) month period following the date of determination; and (ix) if any site plan amendment, variance, special use permit or other similar special approval or consent is required from any Governmental Authority or any other Person for such restoration, repair or rebuilding, then Borrowers shall obtain and deliver to Administrative Agent such site plan amendment, variance, special use permit or other similar special approval or consent not later than one hundred eighty (180) days following the date of such condemnation, casualty or damage (provided, however, that such one hundred eighty (180) day time period shall in all respects be subject to the foregoing provisions of this Section 7.1.5(C) and shall not extend or otherwise modify any time periods in such foregoing provisions).

D.Business/Rental Loss Insurance Proceeds.  Any business or rental loss insurance proceeds payable as a result of any condemnation, casualty or damage with respect to the Property, Chattels or other Collateral shall be paid directly to Administrative Agent and shall be applied first to reimburse Administrative Agent for all costs and expenses, including out-of-pocket attorneys’ fees, incurred by Administrative Agent and/or Lender in connection with the ascertainment and collection of such insurance proceeds.  Administrative Agent shall retain the balance, if any, of such insurance proceeds and (i) for so long as no Event of Default exists, apply the same to the payment of any Monthly Impounds, Operating Expenses, Loan Debt Service Payments and other amounts that 

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Borrowers are required to pay pursuant to this Agreement and the other Loan Documents during the period of restoration, or (ii) if an Event of Default exists, at Administrative Agent’s option, apply the same towards the payment of the Secured Obligations, in such order and manner as Administrative Agent deems appropriate. 

E.Maintenance of Capital Proceeds.  Administrative Agent will have no obligation to see to the proper application of any Capital Proceeds paid over to Borrowers, nor will any such Capital Proceeds received by Administrative Agent bear interest or be subject to any other charge for the benefit of Borrowers.  If the applicable Security Instrument has been foreclosed prior to Administrative Agent’s receipt of such Capital Proceeds, then Administrative Agent shall be entitled to receive and retain such Capital Proceeds to the extent required to reimburse Administrative Agent and Lender for all actual out-of-pocket costs and expenses, including actual out-of-pocket attorneys’ fees, incurred in connection therewith, and to discharge any deficiency remaining with respect to the Secured Obligations.

7.1.6Financial Reporting

.  

A.Quarterly Statements.  Within forty-five (45) days following the end of each calendar quarter, each Borrower shall deliver to Administrative Agent and Servicer (i) such Borrower’s quarterly operating statements for the Individual Property owned by such Borrower as of the end of and for the preceding calendar quarter, setting forth all Gross Revenues received and operating expenses and Capital Expenditures incurred during such calendar quarter and compared against the operating budget for such calendar quarter, (ii) a then-current Rent Roll for the Individual Property owned by such Borrower, and (iii) such Borrower’s calculation of the Debt Service Coverage Ratio and the Portfolio Debt Service Coverage Ratio as of the last day of the preceding calendar quarter (including a summary of how the Debt Service Coverage Ratio and the Portfolio Debt Service Coverage Ratio was calculated and including all financial statements and/or other reports reasonably required by Administrative Agent or Servicer to verify such Borrower’s Debt Service Coverage Ratio and Portfolio Debt Service Coverage Ratio calculation). Upon demand by Administrative Agent following any Event of Default, or if Administrative Agent and Lender intend to securitize the Loan (and, if so, until the Loan is contributed to a securitization structure), each Borrower shall deliver to Administrative Agent and Servicer the items required in clauses (i) and (ii) of this Section 7.1.6(A) on a monthly basis not later than the tenth (10th) Business Day of each calendar month. 

B.Annual Statements. Within ninety (90) days following the end of each fiscal year of Borrowers, Borrowers shall deliver to Administrative Agent and Servicer (i) the annual balance sheet and profit and loss statement of each Borrower and Guarantor (demonstrating that Guarantor satisfies the Minimum Guarantor Financial Requirement), (ii) a single consolidated statement of cash flow including all Borrowers and Guarantor, (iii) each Borrower’s annual operating statements for the Individual Property owned by such Borrower as of the end of and for the preceding fiscal year, setting forth all Gross Revenues received and operating expenses incurred during such fiscal year and compared against the operating budget for such fiscal year, and (iv) a report for each Borrower that sets forth the Capital Expenditures incurred by such Borrower during the 

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preceding fiscal year.  The financial statements described in this Section 7.1.6(B) shall be prepared and certified by Borrowers and, at Administrative Agent’s request, shall be audited by an independent certified public accountant acceptable to Administrative Agent if (x) a Default or Event of Default exists or (y) in order to comply with any regulatory audit or other requirements to which Administrative Agent and/or Lender are subject. For the purposes of this Section 7.1.6, so long as GTJ REIT is the Guarantor,  the term “Guarantor” shall be deemed to include the following entities to the extent GTJ REIT retains an ownership interest in such entities: Wu/LH 466 Bridgeport L.L.C., Wu/LH 950 Bridgeport L.L.C., Wu/LH 15 Progress L.L,C, Wu/LH 103 Fairview Park L.L.C., Wu/LH 404 Fieldcrest L.L.C., Wu/LH 300 American L.L.C., Wu/LH 500 American L.L.C., GWL 110 Old County LLC, GWL Windsor Land LLC, GWL Borden LLC, GWL 20 East Halsey LLC, GWL 4 Corporate LLC, GWL 8 Corporate LLC, GWL 11 Constitution LLC, GWL 21 Constitution LLC, GWL 25 Corporate LLC, GWL 1110 Centennial LLC, GWL 606 Cozine LLC, GWL 300 McIntire LLC, GWL 1938 Olney LLC,  GWL 201 Neelytown LLC,  GWL 625 Wortman LLC (each a Delaware limited liability company), 23-85 87th Street, LLC, a New York limited liability company, and 612 Wortman Avenue, LLC, a New York limited liability company.

C.Preparation and Certification of Statements.  The operating and profit and loss statements described in this Section 7.1.6 shall be in such detail as Administrative Agent may reasonably require and shall be prepared in accordance with Approved Accounting Principles; provided, however, that with respect to the preparation of the balance sheets of Guarantor required to be delivered by Borrowers pursuant to this Section 7.1.6, (i) such balance sheets of Guarantor shall exclude the assets and liabilities of the Borrowers and the Cross-Collateralized Borrowers and (ii) land, building, and accumulated depreciation and amortization may be removed and replaced with a midpoint estimated market value based on the reports issued by Kroll, LLC, or another valuation firm reasonably acceptable to Administrative Agent, used in Guarantor’s net asset valuation set forth in Guarantor’s annual balance sheet.  The operating and profit and loss statements, Rent Rolls and other information and reports delivered by Borrowers or Guarantor pursuant to this Section 7.1.6 shall be certified to Administrative Agent as true, correct and complete by the applicable Borrower or Guarantor, as applicable.

D.Other Statements and Reports.  During any Cash Management Period, Borrowers shall deliver the Reconciliation Reports, budgets and other reports and financial statements in accordance with (and otherwise comply with) the provisions of Section 3.8.  In addition to the financial statements and reports listed above in this Section 7.1.6, Borrowers and Guarantor shall also promptly furnish or cause to be furnished to Administrative Agent and Servicer, within forty-five (45) days following Administrative Agent’s request, any other financial reports or statements of any Borrower and Guarantor that are not unreasonably burdensome to prepare, including balance sheets, profit and loss statements, other financial statements and certified Rent Rolls, required under any of the Loan Documents, requested by any Governmental Authority exercising jurisdiction over Administrative Agent or Lender, or reasonably requested by Administrative Agent from time to time.

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E.Late Fee.  Notwithstanding anything herein to the contrary, if any Borrower or Guarantor fails to deliver any operating statements, balance sheets, profit and loss statements, Rent Rolls, or any other financial reports or other documents required under this Section 7.1.6 to Administrative Agent on or prior to the applicable due date under this Section 7.1.6, in addition to Administrative Agent’s other rights and remedies under the Loan Documents, Borrowers shall pay to Administrative Agent a late fee of One Thousand Dollars ($1,000) for every ten (10) Business Days that any Borrower or Guarantor is late in delivering such reports or other documents due under this Section 7.1.6.   The foregoing late fee shall be due and payable within ten (10) Business Days following Administrative Agent’s demand. Notwithstanding the foregoing, Borrowers shall be permitted to deliver the financial reports and other documents required under this Section 7.1.6 within ten (10) Business Days of the due date thereof without incurring the late fee imposed under this Section 7.1.6 two (2) times in any twelve (12) month period. 

7.1.7Books and Records; Inspection Rights; Access to Property

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A.Books and Records. Each Borrower shall keep and maintain at the offices of such Borrower accurate and complete records and books of account, in which complete entries shall be made, reflecting all financial transactions of such Borrower relating to the applicable Individual Property, including records adequate to correctly reflect all items required in order to determine all Gross Revenue, Operating Expenses, Capital Expenditures and other matters contemplated by this Agreement.  

B.Inspection Rights. At any reasonable time, and from time to time, but not more than twice per calendar year for each Individual Property (excluding Administrative Agent’s regularly scheduled annual inspection of each Individual Property) unless an Event of Default exists or in connection with any transfer of all or any portion of the Loan by any Lender, upon not less than 24 hours prior notice from Administrative Agent, Borrowers shall permit Administrative Agent, or any agents or representatives thereof, to (i) examine and make copies of and abstracts from the records and books of account of Borrowers and the Property, (ii) enter and inspect the Property and the Chattels (subject to the rights of Tenants under Leases), and (iii) discuss with Borrowers the affairs, finances and accounts of Borrowers.  Borrowers shall take all commercially reasonable actions necessary or required under the Leases to effect such right of Administrative Agent to inspect the Property and Chattels.  

C.Access to Property.  At any time and from time to time, but not more than twice per calendar year unless an Event of Default exists or in connection with any transfer of all or any portion of the Loan by any Lender, upon reasonable request and reasonable notice by Administrative Agent, Borrowers shall (i) provide Administrative Agent with copies of all bank statements, invoices, cancelled checks and other information relating to any accounts maintained by each Borrower, any asset manager or any Property Manager with respect to each Individual Property and (ii) deliver to Administrative Agent a current inventory of the Chattels, the Intangible Personalty and the other Collateral, in such detail as Administrative Agent may reasonably require.  During the existence of any Event of Default, Borrowers shall, at Administrative Agent’s request, assemble the 

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Chattels and make them available to Administrative Agent at any place designated by Administrative Agent that is reasonably convenient to both parties.

7.1.8Cooperate in Legal Proceedings; Notices of Litigation

.  Without limiting any other rights of Administrative Agent and/or Lender under this Agreement, Borrowers shall cooperate with Administrative Agent with respect to any arbitration proceedings or any proceedings before any Governmental Authority that are reasonably likely to in any way materially affect the rights of Administrative Agent and/or Lender hereunder or any rights obtained by Administrative Agent and/or Lender under any of the Loan Documents and, in connection therewith, shall not prohibit Administrative Agent, at Administrative Agent’s election, from participating in any such proceedings.  Borrowers shall, promptly after receiving notice thereof, notify Administrative Agent in writing of any litigation, action, proceeding or investigation against any Borrower, Guarantor or any other Borrower Control Person or the Property and, upon reasonable request of Administrative Agent, from time to time provide Administrative Agent with status or other information in respect thereof.

7.1.9Further Assurances

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A.Borrowers shall, at Borrowers’ sole cost and expense, upon the reasonable request of Administrative Agent, execute and/or deliver to Administrative Agent all instruments, documents, certificates, title and other insurance reports and agreements, required to be furnished pursuant to the terms of the Loan Documents or reasonably required by Administrative Agent to evidence, preserve and/or protect the Collateral and the Liens of the Loan Documents (including any amendment or replacement to the Security Instruments, any UCC-1 Financing Statements or other Loan Documents) and do such other acts necessary, to evidence, preserve and/or protect the Collateral or to better and more effectively carry out the intents and purposes of this Agreement and the other Loan Documents, as Administrative Agent shall reasonably require from time to time.  Borrowers hereby authorizes the filing of any financing statements (including any UCC-1 Financing Statement) or continuation statements, and amendments to financing statements, in any jurisdictions and with any recording and/or filing offices as Administrative Agent may determine are necessary or advisable to perfect the security interests granted to Administrative Agent and/or Lender in connection with the Loan Documents.  Such financing statements may describe the collateral secured thereby (i) in the same manner as described in any security agreement or pledge agreement entered into by the parties in connection herewith or (ii) in any other manner as Administrative Agent may determine is necessary, advisable or prudent to ensure the perfection of the security interests in the collateral granted to Administrative Agent and/or Lender in connection herewith, including describing such collateral as “all assets” or “all personal property” of Borrowers, whether now owned or hereafter acquired.

B.Borrowers shall, at Borrowers’ sole cost and expense, upon the reasonable request of Administrative Agent, during the existence of a Default or Event of Default, deliver to Administrative Agent UCC, tax Lien, judgment and litigation searches with respect to any Borrower Control Person, and searches of title to each Individual Property and the other Collateral, each such search to be conducted by search firms 

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designated by Administrative Agent in each of the locations designated by  Administrative Agent.

7.1.10Management and Leasing of the Property

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A.The Property shall be managed by a property manager approved by Administrative Agent (the “Property Manager”) pursuant to a property management agreement delivered to, and approved by, Administrative Agent (the “Property Management Agreement”).  Administrative Agent hereby approves (i) GTJ Management, LLC, a New York limited liability company, as the initial Property Manager and (ii) the Property Management Agreement with such initial Property Manager, and Borrowers represent to Administrative Agent that a true, correct and complete copy of such Property Management Agreement has been delivered to Administrative Agent and Lender prior to the Closing Date.  Any substitute or replacement Property Manager or any other change in Property Manager shall be subject to the prior written approval of Administrative Agent.  Borrowers shall not permit any amendment to or modification of any Property Management Agreement or management of the Property by any Person other than Borrowers or Property Manager, as applicable, without the prior written approval of Administrative Agent.  Any such Property Manager shall execute a Subordination of Property Management Agreement in respect of its Property Management Agreement in form and substance satisfactory to Administrative Agent.  

B.No Borrower shall enter into, amend or modify any listing agreement or brokerage agreement for any Individual Property (a “Listing Agreement”) without Administrative Agent’s prior written consent.  Administrative Agent hereby approves (i) the Listing Agreement with Cushman & Wakefield of Connecticut, Inc., a Connecticut corporation, with respect to the 470 Bridgeport Property, the Cascade Property, the 15 Executive Property, the 25 Executive Property, the 35 Executive Property, the Marsh Property, the Lambert Property and the Meadow Property, and (ii) the Listing Agreement with Hadcon Realty, Inc. T/A Resource Realty of Northern New Jersey, a New Jersey corporation, with respect to the New Jersey Properties, and Borrowers represent to Administrative Agent that true, correct and complete copies of such Listing Agreements have been delivered to Administrative Agent prior to the Closing Date.  Any listing agent that enters into a Listing Agreement shall execute a Subordination of Listing Agreement in respect of its Listing Agreement in form and substance satisfactory to Administrative Agent.  

C.So long as no Event of Default then exists, Administrative Agent’s approval of the matters under this Section 7.1.10 shall not be unreasonably withheld, conditioned or delayed.

7.1.11Compliance with Legal Requirements

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A.Compliance.  Each Borrower and each Borrower Control Person shall comply with all applicable Legal Requirements and shall timely make all required notices and filings with any Governmental Authority.  Borrowers shall obtain (or cause to be obtained) all Permits.  Borrowers shall maintain all Permits in full force and effect, 

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timely pay all amounts due and payable by or on behalf of Borrowers in respect of such Permits and renew such Permits prior to the expiration thereof.  Borrowers shall, promptly after receiving notice thereof, notify Administrative Agent in writing of any litigation, action, proceeding or investigation against any Borrower or any Borrower Control Person or any Individual Property before any Governmental Authority and, upon reasonable request of Administrative Agent, from time to time provide Administrative Agent with status or other information in respect thereof.

B.Right to Contest.  Notwithstanding any other provision of this Agreement, Borrowers shall not be deemed to be in Default solely by reason of any Borrower’s failure to comply with any Legal Requirement, so long as Borrowers have notified Administrative Agent of such failure pursuant to Section 7.1.11(A) and, in Administrative Agent’s judgment, each of the following conditions is satisfied:

(i)Borrowers are engaged in and diligently pursuing in good faith administrative or judicial proceedings appropriate to contest the validity or applicability of such Legal Requirement;

(ii)Noncompliance with any such Legal Requirement will not result in (x) the loss, forfeiture or encumbrance of the Property (or any portion thereof) or any interest of Borrowers, Administrative Agent, or Lender therein, (y) any other punitive actions or (z) any loss or impairment of insurance coverage; and

(iii)Borrowers deposit with Administrative Agent, as security for any payment or performance that may ultimately be required, the amount of any fine, assessment or charge plus the interest, penalties, and other out-of-pocket costs that Administrative Agent reasonably estimates are likely to become payable if Borrowers’ contest is unsuccessful.

C.Failure to Comply with Contest Requirements.  If Administrative Agent determines (which determination shall be reasonable provided that no Event of Default exists) that any one or more of the conditions set forth in Section 7.1.11(B) is not satisfied or is no longer satisfied, then Borrowers shall comply with the Legal Requirement in question, not later than the date that is ten (10) days following the date that Administrative Agent provides written notice to Borrowers of such determination.

7.1.12Single Purpose Entity; Preservation of Existence; Non-Foreign Status

.  

A.Each Borrower shall at all times be a Single Purpose Entity.

B.Each Borrower and each Borrower Control Person shall do or cause to be done all things necessary to (i) preserve, renew and keep in full force and effect the existence of each Borrower and each other Borrower Control Person (that is an entity) as a limited liability company, limited partnership, corporation or other entity, as may be applicable, and (ii) maintain the authorization of each Borrower and each other Borrower Control Person to perform their respective obligations under the Loan Documents.  

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C.Without the prior written consent of Administrative Agent, (i) none of Borrowers and Managing Member shall amend or modify its organizational documents and (ii) no other Borrower Control Person shall amend or modify its organizational documents so as to contravene any of the Loan Documents or to prevent the observance of the obligations under the Loan Documents.  

D.No Borrower Control Person shall at any time be a “foreign person” within the meaning of Sections 1445 and 7701 of the Code, as amended, and the regulations issued thereunder.  

7.1.13Leases

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A.Performance; Notices.  Borrowers shall timely pay and perform each of the obligations of Borrowers under or in connection with each Lease and shall otherwise pay such sums and take such action as shall be necessary or required in order to maintain such Lease in full force and effect in accordance with its terms.  Borrowers shall within five (5) Business Days following receipt thereof, furnish to Administrative Agent copies of (i) any notices given to any Borrower by the Tenant under any Lease (a) alleging the default by any Borrower in the timely payment or performance of such Borrower’s obligations under such Lease, (b) purporting to terminate or cancel such Lease prior to its stated expiration date, or (c) requiring or demanding the expenditure of any sum by any Borrower (or demanding the taking of any action by any Borrower), and (ii) any subsequent communications related thereto.  Borrowers shall enforce all of the material terms, covenants and conditions contained in the Leases upon the part of the Tenant or any other party that is not any Borrower thereunder to be observed or performed.  No Borrower shall permit or consent to any assignment or subletting of any Lease unless such assignment or subletting is consummated in accordance with the terms of such Lease, and no Borrower shall consent to any assignment or subletting of any Lease to a Required Tenant without the prior written consent of Administrative Agent. Borrowers agree that, during the existence of an Event of Default, Administrative Agent, in Administrative Agent’s sole discretion, may (following written notice to Borrowers) advance any sum or take any action that Administrative Agent reasonably believes is necessary or required to maintain the Leases in full force and effect, and all such sums advanced by Administrative Agent and/or Lender, together with all costs and expenses incurred by Administrative Agent and/or Lender in connection with any action taken by Administrative Agent and/or Lender pursuant to this Section 7.1.13, shall be due and payable by Borrowers to Administrative Agent not later than ten (10) days following Administrative Agent’s demand therefor, shall bear interest at the Default Rate from the date such sums are advanced by Administrative Agent and/or Lender until the date such sums (together with the applicable interest thereon at the Default Rate) are paid by Borrowers to Administrative Agent, and shall be part of the Secured Obligations.

B.Execution, Termination or Modification of Leases.  Borrowers shall neither do, nor neglect to do, anything that may cause or permit the termination of any Lease, or cause or permit the withholding or abatement of any Gross Revenue payable under any such Lease.  Subject to Section 7.1.13(D), without Administrative Agent’s prior written consent, Borrowers shall not (i) enter into or modify, amend, supplement, terminate 

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or cancel any Lease, (ii) collect any Gross Revenue from all or any part of the Property for more than one (1) month in advance, (iii) assign any Gross Revenue from the Property or any part thereof or (iv) consent to the cancellation or surrender of all or any part of any Lease.  Notwithstanding anything to the contrary set forth in this Agreement, Borrowers may in good faith, without Administrative Agent’s prior written consent, terminate any Lease (other than a Lease to a Required Tenant) for nonpayment of rent or for any other material breach by the Tenant thereunder.  Borrowers shall deliver to Administrative Agent an executed copy of each Lease (including any amendment, supplement or modification thereof) not later than five (5) Business Days following the execution thereof.  

C.Administrative Agent’s Consent.  Any submission by Borrowers for Administrative Agent’s consent to a Lease or to a modification, amendment, supplement, renewal, termination or cancellation of any Lease shall be accompanied by (i) a copy of such Lease (together with a comparison of such Lease against the standard form of Lease approved in writing by Administrative Agent showing all proposed modifications to the standard form of Lease approved in writing by Administrative Agent) or a copy of such modification, amendment, supplement, renewal, termination or cancellation, (ii) a then-current Rent Roll for the applicable Individual Property and (iii) year-to-date and prior year operating statements for the applicable Individual Property (collectively, the “Lease Approval Deliveries”).  Each Lease, and each modification, amendment, supplement, renewal, termination or cancellation of any Lease, shall be in writing.  If any proposed Lease that is consented to by Administrative Agent is not executed and delivered by both the applicable Borrower and the applicable Tenant thereunder on or prior to the date that is thirty (30) days following the date that such Lease was consented to, then such consent of Administrative Agent shall expire automatically and without further notice, and Borrowers shall be required to resubmit such proposed Lease to Administrative Agent for consent.  If (I) Administrative Agent fails to respond to such written request for consent of a proposed Lease on or prior to the date that is five (5) Business Days following the date that Administrative Agent receives such request, all Lease Approval Deliveries and any additional information that Administrative Agent may reasonably require to evaluate such proposed Lease, and (II) Borrowers have delivered to Administrative Agent a second written request containing a legend clearly marked in not less than fourteen (14) point bold face type, underlined, in all caps letters “ADMINISTRATIVE AGENT SHALL BE DEEMED TO HAVE CONSENTED TO THE LEASE CONTAINED HEREIN IF ADMINISTRATIVE AGENT FAILS TO RESPOND TO THIS REQUEST FOR CONSENT ON OR PRIOR TO THE DATE THAT IS FIVE (5) BUSINESS DAYS FOLLOWING THE DATE HEREOF,” then Administrative Agent shall be deemed to have consented to such Lease if Administrative Agent fails to respond to such second written request before the expiration of such five (5) Business Day period; provided, however, that this deemed consent provision shall not apply to (a) any Lease to any Person that is an Affiliate of any Borrower, Guarantor, any other Borrower Owner Person or Property Manager or (b) any Lease that (by its terms) requires Administrative Agent and/or Lender to execute an SNDA.  Notwithstanding the foregoing, if any proposed Lease that is deemed to have been consented to by Administrative Agent pursuant to the immediately preceding sentence is not executed and delivered by both the applicable Borrower and the applicable Tenant thereunder on or prior to the date that is thirty (30) days following the date that such Lease was deemed to have been consented to, then such deemed consent of 

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Administrative Agent shall expire automatically and without further notice, and Borrowers shall be required to resubmit such proposed Lease to Administrative Agent for consent. 

D.Safe Harbor Leases.  Notwithstanding the foregoing provisions of this Section 7.1.13, so long as no Event of Default exists, Borrowers may (without the prior written consent of Administrative Agent) enter into (i) a Safe Harbor Lease or (ii) any modification or amendment of any Safe Harbor Lease so long as such Safe Harbor Lease shall remain a “Safe Harbor Lease” following such modification or amendment.  Notwithstanding the foregoing provisions of this Section 7.1.13(D), the written consent of Administrative Agent to any Lease that would otherwise qualify as a Safe Harbor Lease shall be required prior to entering into such Lease, as a condition to Administrative Agent’s and/or Lender’s executing any SNDA requested by the Tenant under such Lease.  Not later than the date that is ten (10) days following the execution of a Safe Harbor Lease (or a modification or amendment thereof), Borrowers shall provide Administrative Agent with (a) a true, correct and complete copy of such Lease (or such modification or amendment thereof), together with all other items required to be submitted with any Lease pursuant to this Section 7.1.13 and (b) a certification by Borrowers that such Lease (or, if applicable, such Lease together with such modification or amendment) satisfies the requirements set forth herein to qualify as a Safe Harbor Lease. 

E.Termination Fees.

(i)Without limiting the generality of this Section 7.1.13, (a) Borrowers shall notify Administrative Agent in writing of any cancellation penalties, termination fees or other consideration payable to any Borrower in connection with any cancellation, termination or surrender of any Lease (any such penalties or fees are referred to herein as “Termination Fees”), which written notice shall be delivered to Administrative Agent not later than the date that is three (3) Business Days following the date that Borrowers have received notice from the applicable Tenant under such Lease of the intention of such Tenant to cancel, terminate or surrender such Lease, but in any event prior to the payment by the applicable Tenant under such Lease of any such Termination Fees to Borrowers and (b) Administrative Agent may, but shall not be required to, require that Borrowers deposit such Termination Fees into a reserve Account held by Administrative Agent or Servicer and impose such restrictions and conditions on the timing and amount of disbursements of the Termination Fees from such reserve Account as Administrative Agent may reasonably require, including (x) requiring that (1) the space left vacant as a result of such cancellation, termination or surrender be relet to a Tenant and under a Lease consented to by Administrative Agent in accordance with Section 7.1.13(C) (any such Lease an “Approved Replacement Lease”), (2) the Tenant under such Approved Replacement Lease is in occupancy of the portion of the Property demised pursuant to such Approved Replacement Lease and is paying rent in accordance with such Approved Replacement Lease, (3) Borrowers provide to Administrative Agent a tenant estoppel certificate from the Tenant under such Approved Replacement Lease in a form and in substance reasonably acceptable to Administrative Agent, and (4) Borrowers provide to Administrative Agent written evidence reasonably acceptable to Administrative Agent that all 

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improvements to the Property required pursuant to such Approved Replacement Lease have been completed in accordance with such Approved Replacement Lease, and (y) limiting the amount of any such disbursement to the lesser of (1) the actual cost of re-tenanting such space and (2) the amount calculated by dividing the Termination Fees by the total square feet of space vacated, then multiplying that result by the number of square feet of newly leased space under such Approved Replacement Lease.  Borrowers shall pay all actual out-of-pocket costs, fees and expenses incurred by Administrative Agent, Lender or Servicer in connection with establishing, holding, maintaining and administering such reserve.  Without limiting the generality of the immediately preceding sentence, and in the sole discretion of Administrative Agent, Administrative Agent and Servicer may, without notice to or consent from Borrowers, deduct such costs, fees and expenses directly from funds on deposit in such reserve.

(ii)If any Event of Default exists, Administrative Agent may apply any Termination Fees held by Administrative Agent or Servicer pursuant to this Section 7.1.13(E) to the Secured Obligations in such order and in such manner as determined by Administrative Agent.

F.Security Deposits.  Borrowers shall deposit any cash security deposits of Tenants under Leases that are turned over to or for the benefit of any Borrower or otherwise collected by or on behalf of any Borrower, into a separate account maintained with a reputable financial institution in compliance with applicable Legal Requirements, and Borrowers shall not commingle such funds with any funds of any Borrower.  Any letter of credit or other instrument that Borrowers are permitted to hold in lieu of cash security deposits under any applicable Legal Requirements (i) shall be maintained in full force and effect unless replaced by cash deposits as hereinabove described (or unless applied pursuant to the terms of the applicable Lease), (ii) if permitted pursuant to Legal Requirements, shall name Administrative Agent on behalf of Lender as payee or mortgagee thereunder (or at Administrative Agent’s option, be fully assignable to Administrative Agent) and (iii) shall comply with all applicable Legal Requirements and otherwise be reasonably satisfactory to Administrative Agent.  Borrowers shall, upon request, provide Administrative Agent with evidence reasonably satisfactory to Administrative Agent of Borrowers’ compliance with the foregoing.  Upon the occurrence and during the continuance of any Event of Default, Borrowers shall, upon Administrative Agent’s request, if permitted by applicable Legal Requirements, (a) assign to Administrative Agent any such letter of credit security deposits (or cause such letter of credit security deposits to be re-issued in favor of Administrative Agent) and (b) turn over to Administrative Agent all other security deposits (and any interest theretofore earned thereon), in each case, to be held by Administrative Agent subject to the terms of the Leases.

G.Insurance.  Borrowers shall require, in all Leases entered into after the Closing Date, that the Tenant’s property insurance policy in connection with each such Lease (i) provide for a standard waiver of subrogation clause benefiting Borrowers and Administrative Agent and Lender and (ii) include Administrative Agent and Lender as additional insureds.

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H.Priority of Leases; SNDAs.  To the extent any Borrower has the right, under the terms of any Lease, to make such Lease subordinate to the Lien of the Security Instruments, Borrowers shall, at Administrative Agent’s request and Borrowers’ expense, take such action as may be reasonably required to effect such subordination.  Conversely, Borrowers shall, at Administrative Agent’s request and Borrowers’ expense, take such action as may be necessary to subordinate the Lien of the Security Instruments to any present or future Lease designated by Administrative Agent.  The standard form of Lease used by Borrowers shall provide that the Lease is subject and subordinate to the Security Instruments and all future mortgages affecting the applicable Individual Property.  Upon written request by Borrowers, Administrative Agent shall provide an SNDA (only if such SNDA is on Administrative Agent’s standard form and is otherwise acceptable to Administrative Agent) for any Lease that (i) is not a Lease of a residential apartment unit, (ii) demises fifty percent (50%) or more of the rentable square feet of any Individual Property, (iii) is entered into with a third party Tenant that is not (and is not an Affiliate of) any Borrower, Guarantor or Property Manager and (iv) is executed and delivered by the applicable Borrower following the Closing Date pursuant to the terms of this Section 7.1.13.  

7.1.14Prohibited Persons; Economic Sanctions; Anti-Money Laundering; Corporate Transparency Act

.

A.Each Borrower hereby represents, warrants and covenants and agrees that:

(i)no Borrower Owner Person or any officer or director of any of them, (a) is or shall become a Prohibited Person, or (b) is or shall become directly or indirectly owned or Controlled by any Prohibited Person; 

(ii)at all times until the full satisfaction of the Secured Obligations, none of the funds of any Borrower, Guarantor or any other Person that are used to repay the Secured Obligations shall be derived from (a) conducting business or transacting with any Prohibited Person (including making or receiving any contribution of funds, goods or services to or for the benefit of any Prohibited Person), (b) dealing in any property or interests in property blocked pursuant to the Executive Order, or (c) activities involving the violation of any Anti-Money Laundering Laws; 

(iii)none of the proceeds of the Loan shall be used to facilitate any business, transactions, or other activity with any Prohibited Person or activities involving the violation of any Anti-Money Laundering Laws; and 

(iv)Borrowers shall promptly deliver to Administrative Agent any certification and other evidence reasonably requested from time to time by Administrative Agent confirming compliance by Borrowers with this Section 7.1.14.  

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B.At all times until the full satisfaction of the Secured Obligations, (i) none of the funds or other assets of any Borrower, Guarantor, any Borrower Control Person or any Person that Controls Guarantor shall constitute property of, or shall be beneficially owned, directly or indirectly, by any Person subject to trade restrictions under United States law, including the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et. seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated thereunder or any other laws, regulations or executive orders administered by OFAC with the result that an investment in any Borrower (whether directly or indirectly) is prohibited by Legal Requirements or the Loan made by Lender is in violation of law (an “Embargoed Person”), (ii) no Embargoed Person shall have any direct or indirect interest of any nature whatsoever in any Borrower with the result that such investment in such Borrower (whether direct or indirect) is prohibited by Legal Requirements or that any of the Transactions are in violation of any Legal Requirements, and (iii) none of the funds of any Borrower, Guarantor, any Borrower Control Person or any Person that Controls Guarantor shall be derived from any unlawful activity with the result that the investment in any Borrower (whether directly or indirectly) is prohibited by Legal Requirements or that any of the Transactions are in violation of any law.

C.Each Borrower hereby represents and warrants to Administrative Agent that as of the Closing Date, to Borrowers’ knowledge each Reporting Company is in compliance with the terms, conditions, regulations and reporting and disclosure requirements of the Corporate Transparency Act. 

D.Each Borrower hereby covenants and agrees with Administrative Agent and Lender that, from and after the Closing Date, Borrowers shall cause each Reporting Company to (i) at all times comply with the terms, conditions, regulations and reporting and disclosure requirements of the Corporate Transparency Act and (ii) provide to Administrative Agent upon request by Administrative Agent any information necessary (a) for Administrative Agent to confirm that any such Reporting Company has complied with all reporting and disclosure requirements under the Corporate Transparency Act and (b) to permit Administrative Agent and Lender to comply with the terms, conditions, regulations and reporting and disclosure requirements of the Corporate Transparency Act in respect of the Loan and the transactions contemplated by this Agreement and the other Loan Documents.  Borrowers shall promptly deliver to Administrative Agent any certification and other evidence reasonably requested from time to time by Administrative Agent confirming compliance by Borrowers and each other Reporting Company with this Section 7.1.14.  

E.Borrowers hereby consent, on behalf of Borrowers and each Reporting Company, to permit FinCEN to disclose the beneficial ownership information of each Reporting Company and any other information disclosed to FinCEN pursuant to the Corporate Transparency Act to Administrative Agent in accordance with the terms of the Corporate Transparency Act.  Borrowers hereby (i) represent and warrant that each Reporting Company has, on behalf of such Reporting Company, provided such a consent in writing, and (ii) covenants and agrees that Borrowers shall obtain and deliver to Administrative Agent any additional consents and/or documentation from any such Reporting Company necessary to effectuate such a consent from any such Reporting 

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Company as may be required by FinCEN, from time to time, for FinCEN to release to Administrative Agent all such beneficial ownership information and other information disclosed to FinCEN pursuant to the Corporate Transparency Act.   

F.Notwithstanding the foregoing, with respect to any direct or indirect constituent of any Borrower or Guarantor that is not a U.S. Person, such non-U.S. Person shall not be required to comply with any of the provisions in this Section 7.1.14 if doing so would constitute a violation of the domiciliary law applicable to such non-U.S. Person, provided, however, that if such non-U.S. Person is not required to comply with the provisions of this Section 7.1.14, Borrowers shall deliver written notice to Administrative Agent which written notice shall include, among other things, (i) the identity of such non-U.S. Person, (ii) the justification for such non-U.S. Person’s non-compliance and (iii) such other written evidence reasonably required by Administrative Agent confirming the same. 

G.The representations, warranties, covenants and agreements set forth in this Section 7.1.14 shall be deemed remade and reaffirmed by Borrowers as of each date that Borrowers (i) makes a payment to Administrative Agent and/or Lender under this Agreement and/or the other Loan Documents, or (ii) receives any advance or disbursement of the proceeds of the Loan or any payment from Lender.  Borrowers shall promptly notify Administrative Agent in writing should Borrowers receive actual knowledge of any change in the information set forth in the representations, warranties, covenants and agreements in this Section 7.1.14 or if any of the representations or warranties in this Section 7.1.14 become untrue or incomplete in any respect.

7.1.15Replacement Guarantor

.  Within thirty (30) days after the death or incapacity of any individual Guarantor, Borrowers shall notify Administrative Agent in writing of such death or incapacity and provide to Administrative Agent the names and current financial statements of one or more replacement guarantors reasonably acceptable to Administrative Agent (i) who, following such replacement, will own not less than one percent (1.0%) of the direct or indirect ownership interests in each Borrower, (ii) who has (together with any remaining Guarantor following such replacement) an aggregate Net Worth and Available Liquidity sufficient to satisfy the Minimum Guarantor Financial Requirement, and (iii) (a) whose Net Worth and financial condition is, in Administrative Agent’s discretion, equivalent to or better than the deceased Guarantor based upon the financial statements and other financial information delivered to Administrative Agent in respect of the individual that is the Guarantor immediately prior to such replacement, or (b) who are the heirs, devisees and beneficiaries of substantially all of the deceased Guarantor’s assets and who have an aggregate Net Worth and Available Liquidity sufficient to satisfy the Minimum Guarantor Financial Requirement.  Within sixty (60) days after the death or incapacitation of such individual Guarantor, each substitute guarantor(s) shall (A) deliver to Administrative Agent the financial reports and statements required to be delivered by Guarantor pursuant to Section 7.1.6, (B) execute and deliver to Administrative Agent a guaranty agreement and environmental indemnity agreement in substantially the same form as the Guaranty Agreement and Environmental Indemnity Agreement and (C) execute and deliver to Administrative Agent such other instruments as Administrative Agent may reasonably require in connection with such replacement.

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7.1.16Minimum Guarantor Financial Requirement

.  At all times until repayment in full of the Secured Obligations, Borrowers shall cause Guarantor to satisfy the Minimum Guarantor Financial Requirement. Notwithstanding the foregoing, if at any time prior to the indefeasible payment in full in cash of the Secured Obligations, the Guarantor fails to satisfy the Minimum Guarantor Available Liquidity Requirement, such failure may be cured by depositing with Administrative Agent or Servicer (as reasonably determined by Administrative Agent) not later than the date that is thirty (30) days following notice by Administrative Agent to Borrowers and/or Guarantor of such failure cash or marketable securities acceptable to Administrative Agent in an amount equal to the excess of the amount of the Minimum Guarantor Available Liquidity Requirement over the Available Liquidity of Guarantor as of the date of determination (the “Liquidity Deposit”), which amount shall be held by Administrative Agent and Lender as additional collateral for the repayment of the Loan and which amount shall be deemed to be part of the “Collateral” for the purposes of this Agreement and the other Loan Documents.  During the existence of any Event of Default, Administrative Agent may apply such amounts held by Administrative Agent or Servicer pursuant to this Section 7.1.16 to the Secured Obligations in such order and manner as determined by Administrative Agent in its sole discretion. Notwithstanding anything to the contrary herein, so long as no Event of Default exists, if after any Liquidity Deposit is made, the Minimum Guarantor Available Liquidity Requirement becomes satisfied, Administrative Agent shall promptly return the Liquidity Deposit to Borrowers and/or Guarantor, as may be applicable. For the purposes of this Section 7.1.16, so long as GTJ REIT is the Guarantor,  the term “Guarantor” shall be deemed to include the following entities to the extent GTJ REIT retains an ownership interest in such entities: Wu/LH 466 Bridgeport L.L.C., Wu/LH 950 Bridgeport L.L.C., Wu/LH 15 Progress L.L,C, Wu/LH 103 Fairview Park L.L.C., Wu/LH 404 Fieldcrest L.L.C., Wu/LH 300 American L.L.C., Wu/LH 500 American L.L.C., GWL 110 Old County LLC, GWL Windsor Land LLC, GWL Borden LLC, GWL 20 East Halsey LLC, GWL 4 Corporate LLC, GWL 8 Corporate LLC, GWL 11 Constitution LLC, GWL 21 Constitution LLC, GWL 25 Corporate LLC, GWL 1110 Centennial LLC, GWL 606 Cozine LLC, GWL 300 McIntire LLC, GWL 1938 Olney LLC,  GWL 201 Neelytown LLC,  GWL 625 Wortman LLC (each a Delaware limited liability company), 23-85 87th Street, LLC, a New York limited liability company, and 612 Wortman Avenue, LLC, a New York limited liability company.

7.1.17General Indemnity

.

A.Borrowers shall, at Borrowers’ sole cost and expense, protect, defend, release, indemnify and hold harmless the Indemnified Parties from any Losses imposed on, incurred by, or asserted against any of the Indemnified Parties, directly or indirectly, in each case, arising out of or in connection with any of the Secured Obligations, the Properties (or any portion thereof), the Pledge Collateral, any Lien on any portion of the Property, the Pledge Collateral, the Loan, any Loan Documents, the Term Sheet, any Relevant Documents, any and all claims for brokerage, leasing, finders or similar fees that may be made relating to the Property, the Pledge Collateral and the Secured Obligations, any accident, injury or death of person or loss of or damage to property occurring in respect of the Property, the performance of any labor or services or the furnishing of any materials or other property in respect of the Property, any tax (including any mortgage recording tax) 

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imposed in respect of the Loan or the recording or filing of the Security Instruments, the Pledge and Security Agreement or any other Loan Document or Relevant Document, any wire fraud or similar fraud in connection with the payment or prepayment of any funds to Administrative Agent and/or Lender by wire transfer or other means of payment pursuant to this Agreement, the Pledge and Security Agreement, the other Loan Documents, or the Relevant Documents, any breach of the terms of Section 7.1.14 hereof, or the exercise by Administrative Agent or Lender of any rights or remedies granted to such Person pursuant to this Agreement, the other Loan Documents, the Relevant Documents or applicable law; provided, however, that the foregoing shall not apply to any Losses caused solely and directly by the willful misconduct or gross negligence of the Indemnified Parties, as determined by a final decision of a court of competent jurisdiction.  THE FOREGOING INDEMNITIES SHALL APPLY TO EACH INDEMNIFIED PARTY WITH RESPECT TO LOSSES THAT IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF THE ORDINARY NEGLIGENCE OF SUCH (AND/OR ANY OTHER) INDEMNIFIED PARTY OR ANY STRICT LIABILITY.

B.Upon request, whether Borrowers’ obligation to indemnify any Indemnified Party arises under this Section 7.1.17 or elsewhere in the Loan Documents, Borrowers shall defend the Indemnified Parties (in Borrowers’ or the Indemnified Parties’ names) by attorneys and other professionals approved by the Indemnified Parties.  Unless being defended by an insurance company and the attorneys designated by such insurance company, the attorneys engaged to defend such action, judgment, suit, claim or demand shall be subject to the reasonable approval of Administrative Agent. Notwithstanding the foregoing, the Indemnified Parties may, in their sole discretion, engage their own attorneys and professionals to defend or assist them and, at their option, their attorneys shall control the resolution of any claims or proceedings.  Borrowers shall not, without the prior written consent of an Indemnified Party (which consent shall not be unreasonably withheld so long as (i) no Event of Default exists, (ii) the applicable settlement, compromise or consent to entry of a judgment includes an unconditional release of each Indemnified Party from all liability arising out of the applicable claim, action, suit or proceeding, (iii) Borrowers pay all amounts due in connection with the applicable settlement, compromise or consent to entry of a judgment, and (iv) there are no remaining obligations on the part of any party in connection with the applicable settlement, compromise or consent to entry of a judgment), settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification is sought hereunder (whether or not such Indemnified Party is an actual or potential party to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each Indemnified Party from all liability arising out of such claim, action, suit or proceeding.

C.Any amounts payable to an Indemnified Party pursuant to this Section 7.1.17 shall be due and payable ten (10) days after written demand and shall bear interest at the Default Rate from the date of such demand until paid, and shall constitute part of the Secured Obligations.

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D.The provisions of and undertakings and indemnification set forth in this Section 7.1.17 shall survive the satisfaction and payment of the Secured Obligations and the termination of this Agreement.

7.1.18Title to Property

.  Borrowers shall warrant and defend the validity of the Liens of the Security Instruments, subject only to the Permitted Encumbrances, against the claims of every Person whomsoever.

7.1.19Post-Closing Obligations

. Borrowers shall, at Borrowers’ sole cost and expense, undertake, perform and complete all of the items set forth on Schedule 13 within the applicable time periods set forth on Schedule 13 and shall provide evidence reasonably satisfactory to Administrative Agent that such items have been undertaken, performed and completed within such time periods.

7.2Negative Covenants

.

7.2.1Waste and Alterations

.  Borrowers shall not commit or permit any waste with respect to the Property or the Chattels.  Borrowers shall not (i) cause or permit any part of the Property, including any building, structure, parking lot, access points, curb cuts, driveway, or other ground improvement, to be removed, demolished, or materially altered, or (ii) construct any Improvements on the Property. Notwithstanding the foregoing provisions of this Section 7.2.1, if no Event of Default exits, Borrowers shall be permitted, without any further approval of Administrative Agent or Lender, to make Permitted Alterations.

7.2.2Zoning and Private Covenants

.  Borrowers shall not initiate, join in, or consent to any change in any zoning ordinance or classification, any change in the “zoning lot” or “zoning lots” (or similar zoning unit or units) presently comprising any Individual Property, any transfer of development rights, any private restrictive covenant, or any other public or private restriction limiting or defining the uses that may be made of any Individual Property or any part thereof.  If under applicable zoning provisions the use of all or any part of any Individual Property is or becomes a nonconforming use, Borrowers shall not cause such use to be discontinued or abandoned, and Borrowers shall use commercially reasonable efforts to prevent any Tenant under any Lease from discontinuing or abandoning such use.

7.2.3Liens on the Property or other Collateral

.

A.General Prohibition on Liens.  Borrowers shall neither create nor permit to exist any direct or indirect Lien against the Property, Chattels, Intangible Personalty or other Collateral or any part thereof or direct or indirect interest therein, other than the Liens created by (i) the Loan Documents and (ii) the Permitted Encumbrances. Notwithstanding the immediately preceding sentence, Mechanic’s Liens shall be governed by Section 7.2.3(B).

B.Mechanic’s Liens.  Borrowers shall keep the Property and the Chattels free and clear of all Mechanic’s Liens, and Borrowers shall cause any recorded statement of any such Mechanic’s Lien to be released of record or bonded off not later than 

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the date that is thirty (30) days following the date of Borrowers’ actual knowledge of such Mechanic’s Lien.  Notwithstanding the preceding sentence, Borrowers shall not be deemed to be in Default under this Section 7.2.3(B) if and so long as Borrowers (i) contest in good faith the validity or amount of any asserted Lien, (ii) diligently prosecutes or defends an action appropriate to obtain a binding determination of the disputed matter, and (iii) provides Administrative Agent and Lender with such security as Administrative Agent and Lender may reasonably require to protect Administrative Agent and Lender against all Losses that Administrative Agent and Lender might incur if the asserted Mechanic’s Lien is determined to be valid (which security may, at the option of Borrowers, be in the form of a bond over such Mechanic’s Lien, provided that such bond removes any such Mechanic’s Lien of record and prevents the filing of or enforcement of any such Mechanic’s Lien of record).

7.2.4Indebtedness

.  No Borrower shall incur any Indebtedness other than the Secured Obligations and any Permitted Indebtedness.

7.2.5Property Record Agreements

.  Borrowers shall not enter into, amend, supplement, cancel, modify or terminate any Property Record Agreements, without Administrative Agent’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed if no Default or Event of Default is continuing.

7.2.6ERISA; Labor Matters

.  No Borrower shall (i) become a party to any collective bargaining agreements or similar labor agreements or (ii) permit any portion of the Property to become subject to any collective bargaining agreements or similar labor agreements.  Borrowers shall not engage in or permit any transaction that would cause the Loan (or the exercise by Administrative Agent and/or Lender of any of Administrative Agent’s and/or Lender’s rights under the Loan Documents) to be a non-exempt, prohibited transaction under ERISA (including for this purpose the parallel provisions of Section 4975 of the Code), or otherwise result in liability to Administrative Agent and/or Lender due to any Borrower being deemed in violation of any applicable provisions of ERISA.  Borrowers shall indemnify, protect, defend, and hold each Indemnified Party harmless from and against any and all Losses (which term shall include, for the purposes of this Section 7.2.6, excise taxes, and actual out-of-pocket attorneys’ fees and costs incurred in the investigation, defense, and settlement of claims and in obtaining any individual ERISA exemption or state administrative exception that may be required, in Administrative Agent’s sole and absolute discretion) that any Indemnified Party may incur, directly or indirectly, as the result of the breach by any Borrower of any warranty or representation set forth in Section 6.1.14 or the breach by any Borrower of any covenant contained in this Section 7.2.6.  This indemnity shall survive any termination, satisfaction or foreclosure of the Security Instruments or a deed or assignment in lieu of such foreclosure and shall not be subject to the limitation on personal liability described in Article 12 or in the other Loan Documents.

7.2.7Distributions

.  Borrowers shall not make any distributions of Gross Revenue to any Borrower Owner Person or any of Borrowers’ Affiliates (including those made for purposes such as the return of such parties’ equity in any Borrower) (i) during the existence of any Event of Default without the prior written consent of Administrative Agent 

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in Administrative Agent’s sole and absolute discretion or (ii) in violation of the provisions of this Agreement or any of the other Loan Documents.

7.2.8Improper Use of Property, Chattels, Intangible Personalty or other Collateral

.  Borrowers shall not use (or permit the use of) the Property, the Chattels, the Intangible Personalty or the other Collateral for any purpose or in any manner that violates any Legal Requirements or the requirements or conditions of any Required Insurance Policy.

7.2.9Name and Business of Borrowers; Jurisdiction of Organization

.  No Borrower shall (i) make any material change in the scope or nature of the business objectives, purposes or operations of such Borrower, or undertake or participate in activities other than the continuance of the present business of such Borrower, (ii) change the chief executive office or the principal place of business of such Borrower without giving Administrative Agent at least fifteen (15) days’ prior written notice thereof and promptly providing Administrative Agent such information as Administrative Agent may reasonably request in connection therewith, (iii) change or permit a change of the jurisdiction of organization of such Borrower without first notifying Administrative Agent in writing of such Borrower’s intention to do so and delivering to Administrative Agent any financing statement that may be filed in connection with any of the Loan Documents as Administrative Agent may require, or (iv) change the name under which such Borrower does business, or adopt or begin doing business under any other name or assumed or trade name, without first notifying Administrative Agent of such Borrower’s intention to do so and delivering to Administrative Agent such executed modifications or supplements to this Agreement or any of the other Loan Documents (and to any UCC-1 Financing Statement that may be filed in connection with any of the Loan Documents), as Administrative Agent may require.

7.2.10Use of Proceeds

.  Borrowers shall not use the proceeds of the Loan or any funds advanced by Lender under the Loan Documents (i) for household or agricultural purposes, (ii) to purchase any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System, (iii) for any purpose that would be inconsistent with such Regulation U or any other regulations of the Board of Governors of the Federal Reserve System, or (iv) for any purpose prohibited by any Legal Requirements.

7.2.11Assessments against Property

.  Without the prior written consent of Administrative Agent, which consent may be withheld for any reason, Borrowers shall not consent to or take any action that would permit (i) the creation of any so-called special districts, special improvement districts, benefit assessment districts or similar districts, or any other body or entity of any type, or (ii) the occurrence of any other event, that might result in the imposition of any additional Property Impositions or other monetary obligations or burdens on any Individual Property.

ARTICLE 8

TRANSFERS

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8.1Transfer, Encumbrance and Change of Control Prohibition

.  Except as provided in this Article 8, without Administrative Agent’s prior written consent, Borrowers shall not (i) directly or indirectly sell, assign, convey, transfer or otherwise dispose of any Individual Property or other Collateral or any portion thereof (with the exception of Leases, including any Safe Harbor Lease, entered into pursuant to the terms and provisions of the Loan Documents) or any direct or indirect legal, beneficial or equitable interest in all or any part of any Individual Property or other Collateral, (ii) permit or suffer any owner, directly or indirectly, voluntarily or involuntarily, of any direct or indirect ownership or beneficial interest in any Borrower, Managing Member, any Individual Property or other Collateral to transfer such interest, whether by transfer of partnership, membership, stock or other beneficial interest in any entity or otherwise, (iii) mortgage, pledge, hypothecate or otherwise permit or suffer to be subject to, or encumbered by, a Lien or grant or permit to be granted a security interest in all or any part of any Borrower, Managing Member, any Individual Property or other Collateral or any direct or indirect legal, beneficial or equitable interest therein, (iv) permit or suffer any change of Control of any Borrower or Guarantor or (v) amend or modify the organizational structure of any Borrower or Managing Member to split or divide any Borrower into multiple Persons.

8.2Chattel Transfers

.  Notwithstanding the provisions of Section 8.1, Borrowers shall be permitted to sell, transfer or remove Chattels from an Individual Property in the ordinary course of operation and management of such Individual Property as a prudent owner, operator and manager of properties that are similar to such Individual Property would own, operate, and manage such Individual Property, if (i) such Chattel is contemporaneously replaced with similar items of equal or greater value and of similar utility or (ii) such Chattel is obsolete and has no material value or is non-essential to the use, management, and operation of such Individual Property.

8.3Permitted Transfers

. 

8.3.1Transfers of Direct or Indirect Ownership Interests in Borrower

s. Notwithstanding the provisions of Section 8.1, the following transfers of direct or indirect interests in Borrowers shall be permitted: 

A.Transfers by the limited partners of Managing Member of their respective limited partnership interests in Managing Member to Guarantor in exchange for shares in Guarantor, provided that each of the Permitted Transfer Conditions (defined below) are satisfied with respect to any such transfer. 

B.Transfers by (i) the Paul Cooper 2020 Dynasty Trust, (ii) the By-Pass Trust under Article THIRD of the Last Will and Testament of Jerome Cooper, (iii) Jeffrey Ravetz, (iv) the Estate of Sarah Ravetz, (v) the Louis Sheinker 2020 Dynasty Trust, (vi) VWU888, LLC, (vii) the Wu Family 2012 Gift Trust, and (viii) Lighthouse 100 William Operating LLC, a New York limited liability company (each individually, a “Principal”, and, collectively, the “Principals”) of their respective limited partnership interests in Managing Member to (x) another Principal or (y) GTJ GP, provided that each of the Permitted Transfer Conditions are satisfied with respect to any such transfer.

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C. The issuance by Managing Member of additional limited partnership interests to Persons who are not Principals, provided that each of the Permitted Transfer Conditions are satisfied with respect to any such transfer.

D.The trading of publicly traded shares of GTJ REIT by the owners of such shares on a nationally recognized exchange, in each case without violating the provisions of this Section 8.3, provided that each of the Permitted Transfer Conditions are satisfied with respect to any such transfer. 

E.Transfers of title or interests (including ownership interests) under any trust or will or testament or applicable laws of descent or intestacy, provided that the condition set forth in Section 8.3.2(J) has been satisfied.

F.The pledge and/or transfer (including, without limitation, a foreclosure under any pledge) by VWU888, LLC or Jeffrey Wu, as an individual on behalf of himself and on behalf of the Wu Family 2012 Gift Trust, of the 23.191% Class B limited partnership interests in Managing Member owned by VWU888, LLC or the Wu Family 2012 Gift Trust as of the date hereof and the 2.367% common limited partnership interests in Managing Member owned by VWU888, LLC as of the date hereof, in each case, solely to Zee Bridge  without violating the provisions of this Section 8.3, provided that each of the Wu Transfer Conditions are satisfied with respect to any such transfer. Notwithstanding anything herein to the contrary, in addition to the requirements of the immediately preceding sentence, (i) the direct or indirect pledge or transfer (including, without limitation, a foreclosure under any pledge) of (x) any such pledge held by Zee Bridge or (y) any partnership interests in Managing Member held by Zee Bridge at any time may not occur without the prior written consent of Administrative Agent and (ii) Zee Bridge shall not foreclose on any pledge by VWU888, LLC and/or Jeffrey Wu of VWU888, LLC’s and/or Jeffrey Wu’s limited partnership interests in Managing Member unless at such time and prior to any such foreclosure Administrative Agent is able to perform searches on Zee Bridge, and the upstream owners of Zee Bridge that directly or indirectly own at least 20% of the ownership interests in Zee Bridge or directly or indirectly Control Zee Bridge, that are reasonably satisfactory to Administrative Agent and that confirm Zee Bridge’s compliance with Section 7.1.14, the cost of which searches shall be the responsibility of the Borrowers.  

G.The pledge and/or transfer by VWu888, LLC of 100% of the limited partnership interests in Managing Member owned by VWu888, LLC as of the date hereof, in each case, solely to the Landmark Pledgees without violating the provisions of this Section 8.3, provided that each of the Wu Transfer Conditions are satisfied with respect to any such transfer. Notwithstanding anything herein to the contrary, the direct or indirect pledge or transfer of (x) any such pledge held by the Landmark Pledgees or (y) any partnership interests in Managing Member held by any of the Landmark Pledgees at any time may not occur without the prior written consent of Administrative Agent.

H.Intentionally Omitted. 

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8.3.2Permitted Transfer Conditions

.  “Permitted Transfer Conditions” means, collectively, each of the following conditions:

A. Immediately following the consummation of any such transfer, the Principals, either individually or together, shall maintain at least a 5% direct or indirect ownership interest in each of the Borrowers.

B.Immediately following the consummation of any such transfer, Paul A. Cooper continues to be the Chief Executive Officer of GTJ REIT, Louis Sheinker continues to be the President of GTJ REIT, and Paul A. Cooper and Louis Sheinker each continue to be members of the Board of Directors of GTJ REIT.

C.Immediately following the consummation of any such transfer, GTJ GP shall either (i) remain the sole general partner of Managing Member and shall continue to own at least one percent (1%) of the outstanding partnership interests in Managing Member, or (ii) own one hundred percent (100%) of the direct ownership interests in each of the Borrowers. 

D.Immediately following the consummation of any such transfer, Guarantor shall (i) remain the owner of one hundred percent (100%) of the direct ownership interests in GTJ GP, (ii) continue to Control GTJ GP, (iii) so long as Managing Member exists, continue to indirectly Control Managing Member and (iv) continue to indirectly Control each Borrower.

E.No Default or Event of Default exists as of the date of the Permitted Transfer Notice or as of the date of such transfer.

F.Immediately following the consummation of any such transfer, Guarantor shall continue to satisfy the Minimum Guarantor Financial Requirement. 

G.If a change in the Property Manager for the Property (not a change in the manager or managing member of any Borrower) shall result from such transfer, Borrowers shall enter into a Property Management Agreement with a Property Manager that has reasonably satisfactory experience operating and leasing property similar to the Property and that has a term no greater than one (1) year, may be cancelled on 30-days’ written notice (without cause and without any cancellation fee or charge), and which provides that the Property Manager shall subordinate its fees to the payment of the Loan, and otherwise complies with the terms of this Agreement and the other Loan Documents

H.Not less than thirty (30) days prior to the consummation of any such transfer, Borrowers shall (i) deliver to Administrative Agent written notice of the proposed transfer (the “Permitted Transfer Notice”), together with Organizational Charts that (a) illustrate the ownership structure of Borrowers and Guarantor both before and after the consummation of the proposed transfer and (b) specifically identify and highlight any Person that would, as a result of the proposed transfer, hold twenty percent (20%) or more of the direct or indirect interests in each or any Borrower or Guarantor if such Person held less than twenty percent (20%) of such interests prior to giving effect to the proposed transfer (any such Person, a “New Borrower Party”), in which case Borrowers shall provide 

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Administrative Agent with such additional information as may be reasonably requested by Administrative Agent in order for Administrative Agent to determine that the condition set forth in Section 8.3.2(J) has been satisfied), (ii) deposit with Administrative Agent an amount equal to Administrative Agent’s reasonable estimate of all out-of-pocket costs and expenses (including attorneys’ fees and costs) that Administrative Agent will incur in connection with its review, processing and documentation of such proposed transfer (the “Permitted Transfer Deposit”), which Permitted Transfer Deposit may be applied by Administrative Agent to such costs and expenses whether or not such transfer is actually consummated, and (iii) with respect to any transfer effected pursuant to Sections 8.3.1(A) through (C), Section 8.3.1(E), and Section 8.3.1(F), pay an administrative review fee equal to Five Thousand Dollars ($5,000) to Administrative Agent (or to Servicer, if Administrative Agent so elects).

I.At the time of such transfer, Borrowers shall pay or reimburse Administrative Agent for all of the actual out-of-pocket costs, fees and expenses incurred by Administrative Agent in respect of any such transfer (including all legal, processing, accounting, title insurance and Appraisal fees and costs), as follows: (i) Administrative Agent shall apply any Permitted Transfer Deposit to the payment of such costs, fees, and expenses; (ii) if the amount of such costs, fees, and expenses exceeds any such Permitted Transfer Deposit, then Borrowers shall pay such excess amount to Administrative Agent not later than ten (10) days following written demand therefor; and (iii) if the amount of any such Permitted Transfer Deposit exceeds such costs, fees, and expenses, then Administrative Agent shall return such excess amount to Borrowers.

J.Any Person to whom or to which any such direct or indirect ownership interest is transferred shall comply with the requirements of Borrowers and the Borrower Owner Persons as set forth in Section 7.1.14 and if Administrative Agent requests, the proposed transferees and the constituent members and other owners of such transferees shall execute a certificate in form and substance reasonably satisfactory to Administrative Agent confirming such compliance and identifying the transferees with sufficient information to enable Administrative Agent to perform searches confirming compliance with Section 7.1.14, except that identifying information need not be provided for any transfers made in the ordinary course of business over a national securities exchange located in the United States of America. 

K.Intentionally Omitted.

L.No Person to whom such direct or indirect ownership interest is transferred shall have (i) been convicted, indicted, or otherwise charged with a criminal act that would constitute a felony under the laws of the United States of America, including the laws of the various States and territories thereof, (ii) been a party to a bankruptcy, insolvency or other similar proceeding as a debtor, whether under the Bankruptcy Laws of the United States of America, or any State or other territory thereof, or any other country or jurisdiction, (iii) had a receiver, trustee, or liquidator appointed with respect to its property or any portion thereof, or (iv) any outstanding and unpaid judgements that would be a breach of any of the terms and provisions of any of the Loan Documents.

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M.Such transfer shall not impair or adversely affect Administrative Agent’s and/or Lender’s security under the Loan Documents, including the obligations of Borrowers under this Agreement and the Security Instruments and the obligations of Guarantor under the Guaranty Agreement and the Environmental Indemnity Agreement.

N.Such transfer could not subject Administrative Agent, Lender or any of Administrative Agent’s or Lender’s Affiliates to any civil or criminal penalties in any jurisdiction or otherwise constitute an unlawful act, offence or crime by Administrative Agent, Lender or any of Administrative Agent’s or Lender’s Affiliates, including under any Executive Order or any statutes, laws or regulations referred to in the definition of “Prohibited Person”.

O.Immediately following the consummation of such transfer, all of the representations and warranties set forth in Section 6.2, as modified by the consummation of such transfer, shall remain true, complete and correct, except solely to reflect the changes resulting from such transfer.

P.Not later than twenty (20) days following any such transfer, Borrowers shall provide Administrative Agent with (i) evidence reasonably satisfactory to Administrative Agent that all of the required Permitted Transfer Conditions have been satisfied with respect to such transfer and (ii) a certificate signed by Borrowers and Guarantor that (a) certifies to Administrative Agent that all of the required Permitted Transfer Conditions have been satisfied with respect to such transfer, and (b) attaches (1) a final Organizational Chart confirming the new ownership structure of Borrowers and highlighting each New Borrower Party (certified as being true, complete and correct by Borrowers and Guarantor), (2) a copy of the documents effectuating the transfer and a copy of the organizational documents of the entities affected by such transfer, as amended (certified as being true, complete and correct by Borrowers and Guarantor), and (3) any other information that Administrative Agent may reasonably request.  

8.3.3Wu Transfer Conditions

.  “Wu Transfer Conditions” means, collectively, each of the following conditions:

A.Immediately following the consummation of any such transfer, GTJ GP shall remain the sole general partner of Managing Member and shall continue to own at least one percent (1%) of the outstanding partnership interests in Managing Member. 

B.Immediately following the consummation of any such transfer, Guarantor shall (i) remain the owner of one hundred percent (100%) of the direct ownership interests in GTJ GP, (ii) continue to Control GTJ GP and (iii) continue to indirectly Control Managing Member and each Borrower.

C.Prior to and following any such transfer, neither Jeffrey Wu nor the transferee or the pledgee, as the case may be, nor any transferee or successor of such transferee or pledgee, shall have any right to Control Guarantor, GTJ GP, Managing Member or any Borrower.

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D.The Permitted Transfer Conditions set forth in Sections 8.3.2(E) through (O).

E.Not later than twenty (20) days following any such transfer, Borrowers shall provide Administrative Agent with (i) evidence reasonably satisfactory to Administrative Agent that all of the required Wu Transfer Conditions have been satisfied with respect to such transfer and (ii) a certificate signed by Borrowers and Guarantor that (a) certifies to Administrative Agent that all of the required Wu Transfer Conditions have been satisfied with respect to such transfer, and (b) attaches (1) a final Organizational Chart confirming the new ownership structure of Borrowers and highlighting each New Borrower Party (certified as being true, complete and correct by Borrowers and Guarantor), (2) a copy of the documents effectuating the transfer and a copy of the organizational documents of the entities affected by such transfer, as amended (certified as being true, complete and correct by Borrowers and Guarantor), and (3) any other information that Administrative Agent may reasonably request.  

F.Following any such transfer to Zee Bridge or the Landmark Pledgees, or any foreclosure or assignment in lieu of foreclosure in respect of such pledge to Zee Bridge or the Landmark Pledgees, as applicable, Zee Bridge or the Landmark Pledgees, as applicable, or the transferee or designee in respect of such foreclosure or assignment in lieu of foreclosure (provided, however, that any such transferee or designee is consented to by Administrative Agent), shall be subject to the provisions of Section 8.1 and Section 8.3 and shall not pledge or transfer its membership interests in Managing Member to any Person without the prior written consent of Administrative Agent.

8.3.4Administrative Agent’s Costs.

  If any proposed transfer is not consummated on or prior to the date set forth in the applicable Permitted Transfer Notice, then (notwithstanding that such proposed transfer was not timely consummated) (i) Administrative Agent may apply the Permitted Transfer Deposit to the payment of all of the actual out-of-pocket costs, fees and expenses incurred by Administrative Agent in respect of such proposed transfer, including actual out-of-pocket attorneys’ fees incurred by Administrative Agent, (ii) if the amount of such costs, fees, and expenses exceeds the Permitted Transfer Deposit, then Borrowers shall pay such excess amount to Administrative Agent not later than ten (10) days following written demand therefor, and (iii) if the amount of any such Permitted Transfer Deposit exceeds such costs, fees, and expenses, and if no Event of Default exists, then Administrative Agent shall return such excess to Borrowers. 

8.4Permitted Indebtedness

.  

8.4.1Trade Payables; Permitted Equipment Financing

.  Notwithstanding anything to the contrary contained in this Agreement or any other Loan Document, subject to the satisfaction of each of the conditions set forth in Section 8.4.2, Borrowers may incur the following Indebtedness without the consent of Administrative Agent:  (i) unsecured indebtedness in respect of trade payables incurred in the ordinary course of business relating to the repair, ownership, maintenance and operation of the Property (“Permitted Trade Payables”); and (ii) equipment financing entered into in the ordinary course of 

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Borrowers’ business for non-fixture equipment related to the repair, ownership, maintenance and operation of the Property (“Permitted Equipment Financing”).

8.4.2Permitted Indebtedness Conditions

.  Borrowers may incur Permitted Trade Payables and Permitted Equipment Financing only if each of the following conditions is satisfied:  (i) the maximum aggregate amount of Permitted Trade Payables and Permitted Equipment Financing outstanding at any one time shall not exceed Five Hundred Thousand Dollars ($500,000) (provided, that the foregoing limit shall not apply with respect to the restoration of any Individual Property pursuant to and in accordance with Section 7.1.5 above); (ii) Borrowers shall be responsible for any closing costs in connection with any Permitted Trade Payables or Permitted Equipment Financing, including the actual, out-of-pocket legal, appraisal, engineering and environmental, title and escrow costs of Administrative Agent and Lender and the lender or other party providing any Permitted Trade Payables or Permitted Equipment Financing; (iii) any interest rate payable under, and each of the other terms and provisions of, any Permitted Trade Payables or any Permitted Equipment Financing shall be on arms’-length, market rate terms; (iv) the Permitted Equipment Financing shall be either (a) unsecured or (b) secured solely by security interests that encumber only equipment located at the Property that does not constitute or become a “fixture”, and whose removal would not be overly burdensome or damage or impair the operation or value of the Property; provided, however, that in no event shall any Permitted Equipment Financing be secured by any fixtures or structural components or mechanical or other operating systems of the Improvements (including elevators, electrical systems and components, plumbing systems and components and lighting systems and components; and (v) not less than ten (10) Business Days prior to the funding of any Permitted Trade Payables or Permitted Equipment Financing, Borrowers shall provide Administrative Agent with a copy of any loan documents or other transaction documents to be executed or delivered in connection therewith, and Borrowers shall provide Administrative Agent with written evidence satisfactory to Administrative Agent that such Permitted Trade Payables or Permitted Equipment Financing complies with the foregoing restrictions.

8.4.3Permitted Additional Financing

.  Notwithstanding anything to the contrary as set forth in the Security Instruments or any of the other Loan Documents, Borrowers may from time to time accept additional secondary financing in respect of all but not less than all of the Property and the Cross-Collateralized Portfolio, provided that, in each case, each of the following conditions are satisfied in each case as determined by Administrative Agent (collectively, the “Permitted Additional Financing Conditions” and any such additional financing that satisfied each of the Permitted Additional Financing Conditions, “Permitted Additional Financing”):

A.Borrowers have delivered to Administrative Agent a written notice indicating that Borrowers intend to obtain Permitted Additional Financing (any such notice a “Permitted Additional Financing Notice”) not later than the date that is thirty (30) days prior to the closing of any such Permitted Additional Financing.

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B.At the time of (x) the delivery of the Permitted Additional Financing Notice and (y) upon the closing of the Permitted Additional Financing, no Default or Event of Default shall exist under the Security Instruments and the other Loan Documents.

C.Administrative Agent shall have determined that immediately following the issuance of any such Permitted Additional Financing, the Portfolio Loan-to-Value Ratio, including the Loan, the Cross-Collateralized Loan and any such Permitted Additional Financing and any Permitted Additional Financing (as such term is defined in the Cross-Collateralized Loan Agreement, and for the purposes of this Agreement, the “Cross-Collateralized Permitted Additional Financing”) in respect of the Cross-Collateralized Portfolio, shall be less than or equal to seventy percent (70%), as determined by Administrative Agent pursuant to an Appraisal of the Property and the Cross-Collateralized Portfolio, which Appraisal shall be satisfactory to Administrative Agent, obtained at Borrowers’ sole cost and expense. 

D.Immediately following the issuance of any such Permitted Additional Financing, the Portfolio Debt Service Coverage Ratio (to be calculated taking into consideration the (x) Portfolio Loan Debt Service and (y) the aggregate debt service due and payable in respect of any such Permitted Additional Financing and any Cross-Collateralized Permitted Additional Financing), as determined by Administrative Agent, shall be not less than 1.35 to 1.0 based upon a 30 year amortization schedule.

E.Any such Permitted Additional Financing (i) shall have a maturity date that is not earlier than the Maturity Date of the Loan, and (ii) if such Permitted Additional Financing is co-terminus with the Loan, (y) shall be paid after payment in full of the Secured Obligations, and (z) shall contain a covenant prohibiting any foreclosure action until after the indefeasible payment in full of the Secured Obligations.  

F.Any such Permitted Additional Financing shall be non-recourse, except to the Permitted Mezzanine Collateral, and except as set forth in any guaranteed non-recourse carve-out provisions for such Permitted Additional Financing which shall be no broader than the non-recourse carve-out provisions for the Loan set forth in the Loan Documents.

G.Any such Permitted Additional Financing shall not require a “balloon” or any other payments (prior to the maturity date of such Permitted Additional Financing) other than regularly scheduled payments of principal and interest on the then-outstanding principal balance of such Permitted Additional Financing at the applicable interest rate.

H.Any such Permitted Additional Financing shall be subject to such mezzanine lender thereunder executing Administrative Agent’s then standard form of Intercreditor Agreement, with such changes, modifications, and amendments that are customary in the market for similar mezzanine loans made by institutional lenders and are reasonably approved by Administrative Agent (the “Intercreditor Agreement”), and which Intercreditor Agreement shall provide, among other things, that as a condition precedent to the closing of any Permitted Additional Financing, the applicable Qualified Mezzanine 

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Lender that provides the Permitted Additional Financing shall provide a replacement guarantor satisfactory to Administrative Agent and that such replacement guarantor shall execute and deliver a replacement guaranty agreement (or guaranty agreements) and an environmental indemnity agreement (together, the “Replacement Documents”) in substantially the same form as the Guaranty Agreement and the Environmental Indemnity Agreement (except to the extent that such Qualified Mezzanine Lender that provides the Permitted Additional Financing is Lender or an Affiliate of Administrative Agent or Lender), which Replacement Documents shall be of no force and effect unless and until such mezzanine lender forecloses on the Permitted Mezzanine Collateral.

I.The provider of any such Permitted Additional Financing shall be a Qualified Mezzanine Lender, approved by Administrative Agent in its sole discretion.

J.The borrower under any such Permitted Additional Financing shall be a Permitted Mezzanine Borrower.

K.Any such Permitted Additional Financing may be secured only by Permitted Mezzanine Collateral and shall not be secured by any mortgage, lien, or other encumbrance on all or any portion of the Property.

L.Borrowers shall pay all actual out-of-pocket costs, fees and expenses of Administrative Agent and/or Lender in respect of such Permitted Additional Financing, including without limitation reasonable out-of-pocket attorneys’ fees, appraisal fees, engineering and environmental reports, title and escrow costs of Administrative Agent and Lender incurred in connection with the negotiation of any Intercreditor Agreement, whether or not such Permitted Additional Financing closes.

M.Following the funding of any such Permitted Additional Financing, Borrowers shall provide Administrative Agent with a copy of each of the loan documents executed or delivered in connection therewith, certified as true, complete and correct, and provide reasonably satisfactory evidence that the Permitted Additional Financing complies with each of the foregoing conditions.

N.Borrowers shall have paid to Administrative Agent a one-time fee in the amount of $7,500.00 no later than the date Borrowers submit the Permitted Additional Financing Notice to Administrative Agent which fee shall be deemed earned by Administrative Agent upon payment thereof whether or not any Permitted Additional Financing is consummated. 

O.In the event that the Permitted Additional Financing is provided by an institutional lender other than Lender, Administrative Agent or an Affiliate of Administrative Agent or Lender, such Permitted Additional Financing shall be evidenced and secured by mezzanine loan documents in form and substance reasonably satisfactory to Administrative Agent.

P.Borrowers shall provide to Lender and Administrative Agent (or any Affiliate of Lender or Administrative Agent) a Right of First Refusal pursuant to the process described below.

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Q.The non-economic terms (e.g. those terms other than the interest rate, payment schedule, principal balance, and non-recourse nature) of the Loan Documents have been modified as Administrative Agent reasonably requests in good faith solely to reflect the existence of the Permitted Additional Financing.

8.4.4Permitted Additional Financing Right of First Refusal.  Borrowers hereby grant to Administrative Agent and Lender an irrevocable right of first refusal for Administrative Agent and Lender (or any Affiliate of Administrative Agent or Lender) to provide the Permitted Additional Financing upon the terms and conditions set forth below.  Not later than ten (10) days following such time as any Borrower or any Borrower Owner Person has received an offer from any third party for financing and/or any commitment for financing (any such offer an “Additional Financing Offer”), Borrowers shall deliver to Administrative Agent the Permitted Additional Financing Notice and offer (in each case, a “Right of First Refusal”) to Administrative Agent and Lender (or such Affiliate of Administrative Agent or Lender) the opportunity to consider whether or not to provide such Permitted Additional Financing upon substantially the same terms as set forth in such Additional Financing Offer and with an interest rate equal to fifty (50) basis points higher than the interest rate set forth in such Additional Financing Offer.

8.4.5Permitted Additional Financing Right of First Refusal Procedure.  The Right of First Refusal shall be subject to the procedure set forth below.

A.Not later than the date that is ten (10) days following receipt by Borrowers of any Additional Financing Offer, Borrowers shall send to Administrative Agent the Permitted Additional Financing Notice including the terms of such Additional Financing Offer prior to engaging in further negotiations with any other potential lender.

B.Upon receipt of the Permitted Additional Financing Notice, Administrative Agent shall have the right to request all information and materials relating to the proposed Additional Financing Offer that Administrative Agent or Lender (or an Affiliate of Administrative Agent or Lender) shall reasonably require in order to evaluate whether or not Administrative Agent and Lender (or such Affiliate of Administrative Agent or Lender) will extend the proposed Permitted Additional Financing (collectively, the “Right of First Refusal Information and Materials”).  Borrowers hereby agree to cooperate with Administrative Agent and Lender in all respects in connection with providing the Right of First Refusal Information and Materials.  Such request for the Right of First Refusal Information and Materials shall be made not later than ten (10) Business Days after Administrative Agent’s receipt of the Permitted Additional Financing Notice.

C.In the event that Administrative Agent and/or Lender (or an Affiliate of Administrative Agent or Lender) are willing to consider the Permitted Additional Financing, Administrative and/or Lender (or such Affiliate of Administrative Agent or Lender) shall, prior to the expiration of the period ending ten (10) Business Days following receipt by Administrative Agent or Lender (or such Affiliate of Administrative Agent or Lender) of the Right of First Refusal Information and Materials (such ten (10) Business Day period being herein the “Right of First Refusal Initial Consideration Period”), deliver to Borrowers the Initial Additional Financing Term Sheet (as hereinafter defined).  The 

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term “Initial Additional Financing Term Sheet” shall mean, a document describing the proposed basic business terms and conditions regarding the Permitted Additional Financing, it being understood that such Initial Additional Financing Term Sheet shall not be binding upon Administrative Agent or Lender (or such Affiliate of Administrative Agent or Lender) and shall in no event be deemed a commitment by Administrative Agent or Lender (or such Affiliate of Administrative Agent or Lender) to lend.

D.After the receipt by Borrowers of the Initial Additional Financing Term Sheet, Administrative Agent and/or Lender (or such Affiliate of Administrative Agent or Lender) and Borrowers shall have fifteen (15) Business Days (such fifteen (15) Business Day period is hereinafter referred to as the “Additional Financing Term Sheet Negotiation Period”) within which to agree in writing on the terms and conditions of the Additional Financing Term Sheet (as hereinafter defined).  Borrowers hereby agree to cooperate with Administrative Agent and/or Lender (or such Affiliate of Administrative Agent or Lender) and negotiate in good faith the terms of the Additional Financing Term Sheet.  The term “Additional Financing Term Sheet” shall mean the document, describing the basic terms and conditions upon which Administrative Agent and/or Lender (or such Affiliate of Administrative Agent or Lender) are prepared to extend the Permitted Additional Financing, it being understood that such Additional Financing Term Sheet shall not be binding upon Administrative Agent or Lender (or such Affiliate of Administrative Agent or Lender) or Borrowers and shall in no event be deemed a commitment by Administrative Agent or Lender (or such Affiliate of Administrative Agent or Lender) to lend or by Borrowers to borrow.

8.4.6No Solicitation.  The Right of First Refusal shall be subject to the procedure set forth below.

A.Borrowers shall not (and shall cause each Borrower Owner Person not to) approach or solicit any third party to provide the Permitted Additional Financing until the earliest to occur of (i) the day after the last day of the Right of First Refusal Initial Consideration Period if Administrative Agent and/or Lender (or an Affiliate of Administrative Agent or Lender) do not deliver the Initial Additional Financing Term Sheet prior to the expiration of the Right of First Refusal Initial Consideration Period, (ii) the day after the last day of the Additional Financing Term Sheet Negotiation Period if Administrative Agent and/or Lender (or an Affiliate of Administrative Agent or Lender) and Borrowers cannot agree on the terms of the Additional Financing Term Sheet prior to the expiration of the Additional Financing Term Sheet Negotiation Period, (iii) Administrative Agent and/or Lender have notified Borrowers in writing that Administrative Agent and Lender (or an Affiliate of Administrative Agent or Lender) are unwilling to extend the Permitted Additional Financing, and (iv) after the date that Administrative Agent or Lender (or an Affiliate of Administrative Agent or Lender) and Borrowers agree on the terms of the Additional Financing Term Sheet, the day either party notifies the other that it no longer wishes to proceed with the Permitted Additional Financing pursuant to the Additional Financing Term Sheet.

B.None of Administrative Agent, Lender, and any Affiliate of Administrative Agent or Lender shall be liable in any manner whatsoever for (i) failure to 

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deliver any notice or document specified in this Agreement, or (ii) failure to commit or to extend the proposed Permitted Additional Financing.  

8.5One-Time Transfer

.  

8.5.1Assumption Conditions.  Notwithstanding the provisions of Section 8.1, Administrative Agent shall permit a one-time transfer of all, but not less than all, of the Property and the Cross-Collateralized Portfolio provided that all of the following conditions are satisfied:

A.Not less than thirty (30) days prior to the consummation of any such transfer, Borrowers shall (i) deliver to Administrative Agent written notice of the proposed transfer (the “Assumption Notice”), together with an organizational chart (a) illustrating the ownership structure of the proposed transferee and the proposed replacement guarantors and (b) setting forth such proposed transferee’s direct and indirect upstream owners and managers, the percentage interests held by each such owner and manager and the type of entity of each such owner and manager that is an entity (the “Transferee Organizational Chart”) and (ii) deposit with Administrative Agent an amount equal to Administrative Agent’s estimate of all out-of-pocket costs and expenses (including attorneys’ fees and costs) that Administrative Agent and/or Lender will incur in connection with Administrative Agent’s review, processing and documentation of such proposed transfer (the “Assumption Deposit”), which Assumption Deposit may be applied by Administrative Agent to such costs and expenses whether or not such transfer is actually consummated. 

B.As of the date of the Assumption Notice and as of the date of the proposed transfer: (i) no Default or Event of Default shall exist: (ii) the Portfolio Debt Service Coverage Ratio shall not be less than 1.75:1.0 (and Administrative Agent shall have received satisfactory evidence that such ratio will be maintained for the twelve (12) months immediately following the consummation of such proposed transfer); (iii) the Portfolio Loan-to-Value Ratio, taking into account all obligations secured by liens on the Property and the Cross-Collateralized Portfolio shall not exceed fifty-five percent (55%); (iv) Intentionally Omitted; and (v) the principals and sponsors of the proposed transferee (and any other Persons that will Control such transferee) after the proposed transfer shall (a) have, in the sole judgment of Administrative Agent exercised in good faith, a consolidated net worth (exclusive of the Property and the Cross-Collateralized Portfolio) equal to or greater than the aggregate net worth of Borrowers as of the date hereof or otherwise satisfactory to Administrative Agent, (b) have total asset under management in excess of $375,000,000.00 (exclusive of the Property), (c) have a liquidity of at least $5,000,000.00, (d) be regularly engaged in the business of owning, investing in, and managing commercial real estate similar to the Property and (e) in the sole judgment of Administrative Agent, exercised in good faith, have a satisfactory credit history, professional reputation and character, and a satisfactory history of owning, investing in, and managing properties similar to the Property.

C.Borrowers shall have paid to Administrative Agent an assumption fee of one percent (1%) of the Principal Indebtedness.

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D.At the time of such transfer, Borrowers shall, whether or not such transfer is actually consummated, reimburse Administrative Agent for all of the out-of-pocket costs, fees and expenses incurred by Administrative Agent in respect of any such transfer (including all legal, processing, accounting, title insurance and Appraisal fees and costs), as follows: (i) Administrative Agent shall apply the Assumption Deposit to the payment of such costs, fees, and expenses; (ii) if the amount of such costs, fees, and expenses exceeds the Assumption Deposit, then Borrowers shall pay such excess amount to Administrative Agent; and (iii) if the amount of the Assumption Deposit exceeds such costs, fees, and expenses, then Administrative Agent shall return such excess amount to Borrowers.  Notwithstanding the foregoing or anything to the contrary in this Section 8.5, if any proposed transfer is not consummated on or prior to the date set forth in the applicable Assumption Notice, then (notwithstanding that such proposed transfer was not timely consummated) (a) Administrative Agent may apply the Assumption Deposit to the payment of all of the out-of-pocket costs, fees and expenses incurred by Administrative Agent in respect of such proposed transfer, including attorneys’ fees incurred by Administrative Agent , and (b) if the amount of such costs, fees, and expenses exceeds the Assumption Deposit, then Borrowers shall pay such excess amount to Administrative Agent not later than ten (10) days following written demand therefor.

E.Administrative Agent has received and has had a reasonable opportunity to review and approve (and Administrative Agent has approved) (i) the Transferee Organizational Chart, (ii) all organizational documents (including certificates and articles of formation, partnership and operating agreements, by-laws, certificates of good standing and authorizing resolutions), of the proposed transferee, the proposed replacement guarantors and the Persons that Control the proposed transferee and such replacement guarantors and all Persons that hold twenty percent (20%) or more of the direct or indirect partnership, voting stock, membership or other ownership interests of the proposed transferee and such replacement guarantors (collectively, the “Transferee Controlling Persons”), (iii) all UCC, bankruptcy, judgment, tax lien and litigation searches on the proposed transferee, each principal of the proposed transferee that is proposed to execute a guaranty agreement and/or an environmental indemnity agreement, each Transferee Controlling Person and each such principal of the proposed transferee, and each other Person designated by Administrative Agent, in each case in form and substance acceptable to Administrative Agent, and (iv) all documents and agreements executed or to be executed in connection with the proposed transfer of the Property to the proposed transferee (including any tenancy-in-common agreements and any management or similar documents pursuant to which the tenancy-in-common is managed or controlled, if applicable).  

F.Principals of the proposed transferee that satisfy the Minimum Guarantor Financial Requirement and are otherwise acceptable to Administrative Agent shall have executed and delivered to Administrative Agent a guaranty agreement in the form of the Guaranty Agreement and an environmental indemnity agreement in the form of the Environmental Indemnity Agreement. 

G.The proposed transferee shall have executed and delivered a loan assumption agreement and other loan assumption and modification documents in form and 

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substance satisfactory to Administrative Agent pursuant to which (i) such transferee has assumed all of Borrowers’ obligations under the Loan Documents and (ii) the non-economic terms (e.g., those terms other than interest rate, payment schedule, principal balance, and non-recourse nature (subject to exceptions thereto customarily included by Administrative Agent and/or Lender in loan documents)) of the Loan Documents have been modified as Administrative Agent may request in good faith. Administrative Agent agrees to provide an estoppel certificate in connection with such transfer, which estoppel certificate shall indicate (x) that no written notice of default has been delivered to Borrower, (y) the date of the last payment of regularly scheduled debt service under the Loan and (z) the then-current outstanding principal balance of the Loan.

H.Administrative Agent has received (i) a new or updated Survey in respect of each Individual Property confirming that there are no survey exceptions other than those set forth in the applicable Title Policy and (ii) an endorsement to each Title Policy at Borrowers’ expense, which endorsement re-dates the date of such Title Policy as of the effective date of the transfer, shows the transferee as the owner of the applicable Individual Property and states that the Lien of the applicable Security Instrument remains a first and prior Lien against the applicable Individual Property, subject to no exceptions other than as approved by Administrative Agent (or, if such endorsement is not available in the jurisdiction in which any Individual Property is located, Administrative Agent has received a new lender’s title insurance policy, dated as of the effective date of the transfer, showing the transferee as the owner of such Individual Property and insuring that the Lien of the applicable Security Instrument remains a first and prior Lien against the applicable Individual Property, subject to no exceptions other than as approved by Administrative Agent, and otherwise containing the same terms and conditions as the applicable Title Policy). 

I.Administrative Agent shall have received such opinions of counsel and certifications of organizational documents as Administrative Agent may request in form and substance satisfactory to Administrative Agent (including confirmation (i) of the existence and authority of the proposed transferee, and the due execution and enforceability of any and all of the Loan Documents as assumed by the proposed transferee, (ii) of the enforceability of any and all documents executed by the proposed transferee and its principals in connection with the proposed transfer, (iii) that all such documents remain in sufficient form to maintain Liens encumbering the Properties, and (iv) that any such opinions shall inure to the benefit of Administrative Agent’s and Lender’s successors, assigns and transferees).

J.The existing Borrowers and Guarantor (prior to such transfer) shall have delivered to Administrative Agent such opinions of counsel as Administrative Agent may request (including due authorization, execution and the enforceability of the documents executed by such Persons in connection with such transfer) and a full release of Administrative Agent and Lender, in each case, in form and substance satisfactory to Administrative Agent.

K. The proposed transferee, the Transferee Controlling Persons and all of their respective Affiliates (i) shall comply with the requirements of Borrowers and the 

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Borrower Owner Persons as set forth in Section 7.1.14 (and if Administrative Agent requests, the proposed transferees and the constituent members and other owners of such transferees shall execute a certificate in form and substance reasonably satisfactory to Administrative Agent confirming such compliance and identifying the transferees with sufficient information to enable Administrative Agent to perform searches confirming compliance with Section 7.1.14) and (ii) shall be a citizen of the United States of America or any State of the United States of America or the District of Columbia, or, in the alternative, as applicable, an entity organized under the laws of the United States of America, any State of the United States of America or the District of Columbia.  

L.None of the proposed transferee, the Transferee Controlling Persons or any their respective Affiliates shall have (i) been convicted, indicted, or otherwise charged with a criminal act that would constitute a felony under the laws of the United States of America, including the laws of the various States and territories thereof, (ii) been a party to a bankruptcy, insolvency or other similar proceeding as a debtor, whether under the Bankruptcy Laws of the United States of America, or any State or other territory thereof, or any other country or jurisdiction, (iii) had a receiver, trustee, or liquidator appointed with respect to its property or any portion thereof, or (iv) any outstanding and unpaid judgements that would be a breach of any of the terms and provisions of any of the Loan Documents.

M.Such transfer could not subject Administrative Agent, Lender or any of Administrative Agent’s or Lender’s Affiliates to any civil or criminal penalties in any jurisdiction or otherwise constitute an unlawful act, offence or crime by Administrative Agent, Lender or any of Administrative Agent’s or Lender’s Affiliates, including under any Executive Order or any statutes, laws or regulations referred to in the definition of “Prohibited Person”.

N.After the consummation of the proposed transfer, each Borrower shall continue to satisfy all the terms and conditions of the Loan Documents, including the requirements related to such Borrower’s status as a Single Purpose Entity.

O.If the proposed transferee is a land trust, Administrative Agent has received a first-lien collateral assignment of all beneficial interest therein.

P.Cross-Collateralized Borrowers simultaneously transfer all, but not a portion, of the Cross-Collateralized Portfolio pursuant to and in accordance with Section 8.5 of the Cross-Collateralized Loan Agreement.  

8.5.2Release of Borrowers and Guarantor.Upon the satisfaction of all of the conditions under Section 8.5.1 and the consummation of the transfer contemplated thereby, Administrative Agent shall release Borrowers and Guarantor from liability under the Loan Documents, except to the extent of any liability or obligation under the Loan Documents, that arose on or prior to the effective date of the consummation of such transfer or that could be based on any event that occurred or any state of affairs that existed prior to or as of the effective date of the consummation of such transfer (including any liability arising 

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under the Guaranty Agreement and any liability arising under the Environmental Indemnity Agreement).

8.6Release of Property.  The Loan and the Affiliate Guaranty (Portfolio Borrowers) shall be secured by, among other things, the Security Instruments, each creating a first Lien on the applicable Individual Property, and the other Collateral.  Except as expressly set forth below in this Section 8.6, Administrative Agent shall have no obligation to release from the Liens of the Security Instruments and the Pledge and Security Agreement any Individual Property or other Collateral until all of the Secured Obligations have been paid and performed in full in cash, and all obligations of Administrative Agent and Lender under this Agreement and the other Loan Documents have terminated.

8.6.1Notwithstanding the foregoing, following the Release Lockout Date, Borrowers shall be entitled to obtain (i) releases from the Liens of the Security Instruments and the Pledge and Security Agreement as to any one or more Individual Properties (except for the 100 American Property), and (ii) partial releases of the Pledge and Security Agreement as to the membership interests in the applicable Borrower that owns any Released Property (each Individual Property together with the pledge of membership interests in the applicable Borrower released in accordance with this Section 8.6 being referred to herein as a “Released Property”, and the Properties and pledge of membership interests that have not been released in accordance with this Section 8.6 being collectively referred to herein as the “Remaining Properties”), provided that all of the following conditions (collectively, the “Release Conditions”) are satisfied as of the date of the release of each Released Property (the “Release Date”).

A.Borrowers have delivered to Administrative Agent, not later than thirty (30) days prior to the proposed Release Date, a written request for the release of such Released Property (each, a “Release Request”), which Release Request shall (i) confirm that, as of the proposed Release Date, each of the Release Conditions shall be satisfied and (ii) include such supporting documentation demonstrating such satisfaction as may be required by Administrative Agent.

B.After giving effect to the release of the proposed Released Property, no more than eight (8), in the aggregate, of (x) the Properties and (y) the properties comprising the Cross-Collateralized Portfolio shall have been released pursuant to this Section 8.6 or Section 8.6 of the Cross-Collateralized Loan Agreement, as applicable.

C.After giving effect to the release of the Released Property, no more than $60,000,000.00, in the aggregate, of (x) all previous repayments of the Secured Obligations in connection with all Properties previously released by Administrative Agent pursuant to this Section 8.6, and/or (y) all previous repayments of the Secured Obligations as defined in the Cross-Collateralized Loan Agreement in connection with any portion of the Cross-Collateralized Portfolio previously released by Administrative Agent pursuant to Section 8.6 of the Cross-Collateralized Loan Agreement has been prepaid by Borrowers and/or the Cross-Collateralized Borrowers, as applicable.

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D.No Default or Event of Default shall exist under any of the Loan Documents at the time of delivery of the Release Request through the Release Date.

E.With respect to each individual Released Property, the Borrowers have paid to Administrative Agent an amount equal to one hundred ten percent (110%) of the Allocated Loan Amount applicable to such Released Property (such amount paid to Administrative Agent with respect to each individual Released Property being referred to herein as the “Release Amount”).   

F.Immediately after the release of such Released Property from the lien of the applicable Security Instrument, the Portfolio Debt Service Coverage Ratio must be equal to or greater than the greater of (i) 1.75:1.0 and (ii) the Portfolio Debt Service Coverage Ratio immediately prior to the Release Date.  

G.Immediately after the release of such Released Property from the lien of the applicable Security Instrument, the Portfolio Loan-to-Value Ratio shall be not greater than the lesser of (i) sixty percent (60%) and (ii) the Portfolio Loan-to Value Ratio (taking into account the Released Property) immediately prior to the Release Date. 

H.Borrowers have paid to Administrative Agent a release fee equal to $7,500, payable at the time Borrowers deliver the Release Request to Administrative Agent, which fee shall be fully earned by Administrative Agent as of the date Borrowers delivers the Release Request.

I.Borrowers have paid to Administrative Agent an amount equal to the prepayment premium with respect to any Release Amount, calculated in accordance with the provisions of Section 2.3; provided, however, that notwithstanding the foregoing, the prepayment premium payable by Borrowers in respect of a release of the Brook Property shall be equal to five percent (5.0%) of the Allocated Loan Amount of the  Brook Property.

J.Borrowers may not seek the release of less than an entire Individual Property.

K.Borrowers have reimbursed Administrative Agent and Lender for any and all actual out-of-pocket costs and expenses incurred by Administrative Agent and Lender in connection with the release of such Released Property (including, without limitation, reasonable out-of-pocket attorneys’ fees and costs, servicer’s fees and costs, and, the cost of any title endorsement required by Administrative Agent in its sole and absolute discretion, including, without limitation, any modification to any tie-in endorsement), whether or not such release is actually consummated.

L.Borrowers and Guarantor (as applicable) have executed and delivered to Administrative Agent all documents (which documents shall be in form and substance satisfactory to Administrative Agent) reasonably requested by Administrative Agent relating to the release of such Released Property, including, without limitation, documents to modify the Loan Documents to reflect such release and/or to ratify, reaffirm and/or further evidence the continued validity of the Security Instruments, the other Loan 

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Documents, the Guaranty Agreement, and the liens on the Remaining Properties created thereby.

M.Cross-Collateralized Borrowers and Guarantor (as applicable) have executed and delivered to Administrative Agent all documents (which documents shall be in form and substance satisfactory to Administrative Agent) reasonably requested by Administrative Agent relating to the release of such Released Property, including, without limitation, documents to modify the Cross-Collateralized Loan Documents to reflect such release and/or to ratify, reaffirm and/or further evidence the continued validity of the Affiliate Guaranty (Portfolio Borrowers) and the Cross-Collateralized Loan Documents.

8.7Casualty/Condemnation Release. Borrowers shall have the right, but not the obligation, to obtain releases from the Liens of the Security Instruments and the Pledge and Security Agreement as to any Individual Property (but not any portion of an Individual Property), that was either (1) the subject of a casualty or condemnation constituting a loss (based on an estimated cost to repair or restore the applicable Individual Property prepared by an architect or contractor acceptable to Administrative Agent) of equal to or greater than twenty-five percent (25%) of the applicable Individual Property (determined on the basis of the Allocated Loan Amount of such Individual Property) or (2) the subject of a casualty or condemnation with Capital Proceeds derived therefrom equal to or greater than the greater of (x) ten percent (10%) of the applicable Allocated Loan Amount and (y) five percent (5%) of the aggregate amount of the Principal Indebtedness and the Principal Indebtedness (as defined in the Cross-Collateralized Loan Agreement), in each case, for which the Administrative Agent has not made such Capital Proceeds available to Borrowers for restoration (after Borrowers use commercially reasonable efforts to satisfy the restoration conditions set forth in Section 7.1.5(C) (provided, such commercially reasonable efforts by Borrowers shall not require any shareholder, partner, or member of any such Borrower, including Guarantor, to make any capital contribution to such Borrower to effectuate such restoration or to impose any obligation on any Borrower or any shareholder, partner or member of any Borrower, including Guarantor, to use operating income or rents from any Property other than the Individual Property that is the subject of such casualty or condemnation to effectuate such restoration)) (each, a “Casualty/Condemnation Release”); provided, Borrowers shall have satisfied each of the following conditions:

8.7.1Borrowers shall have delivered a written notice to Administrative Agent of Borrowers’ intention to effect a Casualty/Condemnation Release at least thirty (30) days prior to the proposed date of such Casualty/Condemnation Release (a “Casualty/Condemnation Release Request”);

8.7.2Borrowers shall prepay the Loan in accordance with Section 2.3.2 in an amount equal to the Release Amount for such Individual Property being released on the date of such Casualty/Condemnation Release;

8.7.3Immediately following the applicable Casualty/Condemnation Release, the Portfolio Debt Service Coverage Ratio must be equal to or greater than the greater of (i) 1.75:1.0 and (ii) the Portfolio Debt Service Coverage Ratio immediately prior to the date of such Casualty/Condemnation Release;

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8.7.4Immediately following the applicable Casualty/Condemnation Release, the Portfolio Loan-to-Value Ratio shall be not greater than the lesser of (i) sixty percent (60%) and (ii) the Portfolio Loan-to Value Ratio (taking into account the Individual Property being released pursuant Casualty/Condemnation Release) immediately prior to the Release Date; and

8.7.5No Default or Event of Default shall exist under any of the Loan Documents at the time of delivery of the Casualty/Condemnation Release Request through the date of such Casualty/Condemnation Release.

If, in connection with a potential Casualty/Condemnation Release, Borrowers have satisfied the conditions contained in Section 8.7.1, Section 8.7.2, and Section 8.7.5 but are unable to satisfy the Portfolio Debt Service Coverage Ratio condition contained in Section 8.7.3 or the Portfolio Loan-to-Value Ratio condition contained in Section 8.7.4, Borrowers shall have the right, but not the obligation, to obtain such Casualty/Condemnation Release, provided that, prior to effecting such Casualty/Condemnation Release, Borrowers (in addition to making any payment required pursuant to Section 8.7.2) prepay the Loan in accordance with the provisions of Section 2.3.2 in an amount equal to the minimum amount necessary to cause Borrowers to satisfy the Portfolio Debt Service Coverage Ratio condition contained in Section 8.7.3 and the Portfolio Loan-to-Value Ratio condition contained in Section 8.7.4.

8.8Immediate Event of Default

.  The violation of any provision of this Article 8 shall constitute an Event of Default under this Agreement and the other Loan Documents, whether or not any Borrower, Administrative Agent or Lender has received notice thereof or has knowledge of the occurrence thereof.

ARTICLE 9

INSURANCE

9.1Property and Related Insurance.

  

9.1.1Property Insurance

.  Each Individual Property shall be insured for the benefit of Lender on a Full Replacement Cost basis on a Special or “All Risk” policy form.  The Required Insurance Policy providing such insurance shall (i) not be subject to coinsurance (ii) provide that the release of the insurance proceeds to Administrative Agent on behalf of Lender after a loss shall not be contingent upon the construction of any Improvements, (iii) provide that the Borrowers shall not be unreasonably restricted from applying such proceeds to the building of the Improvements at such other location as Borrowers and/or Administrative Agent shall elect and (iv) provide ordinance or law coverage, including demolition and increased cost of construction coverage. The insurance coverages required under Section 9.1.2, Section 9.1.3, Section 9.1.4, Section 9.1.5 and Section 9.1.6 may be provided under the Required Insurance Policy obtained pursuant this Section 9.1.1.

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9.1.2Rental Loss/Business Interruption

.  Each Borrower shall maintain loss of rental income or business interruption insurance (i) on an actual loss sustained basis or as sufficient to prevent Lender from being a co-insurer under the terms of such insurance policy, (ii) in an amount not less than the projected Gross Revenue from the applicable Individual Property for the longer of (a) twelve (12) months, or (b) the period of time it would take to rebuild the applicable Individual Property, if available, (iii) including coverage for extra expense.

9.1.3Boiler and Machinery

.  Borrowers shall maintain boiler and machinery insurance covering physical damage to each Individual Property and to the major components of any central heating, air conditioning or ventilation systems, and such other equipment as Administrative Agent may require.  Such insurance shall include coverage for business interruption due to mechanical equipment malfunctions, including expediting and extra expense, in an amount usual and customary for similar risks, as determined by Administrative Agent.

9.1.4Builder’s Risk

.  During the period of any construction, demolition, repair, renovation, restoration or replacement of any of the Improvements or portion thereof, Borrowers shall obtain and maintain a builder’s risk policy, on an “All Risk” basis, in an amount equal to the Full Replacement Cost of the completed work.

9.1.5Flood

.  If at any time any Individual Property is located in an area that has been identified by the Federal Insurance Administration, HUD, FEMA or another Governmental Authority as being high hazard for flood and/or mudslides, and the sale of flood insurance for such area has been made available under the National Flood Insurance Act of 1968, then (i) Borrowers shall purchase and maintain a flood insurance policy satisfactory to Administrative Agent and (ii) Borrowers shall deliver to Administrative Agent on or prior to the Closing Date (if applicable) and thereafter within ten (10) days following Administrative Agent’s request, a certificate or letter in a form satisfactory to Administrative Agent stating that the applicable Individual Property is insured for losses arising out of floods or mudslides. 

9.1.6Earthquake

.  If any Individual Property is located in an area identified by any governmental, engineering or any hazard underwriting agencies as being subject to the peril of earthquake, with a scenario expected loss (SEL) over a 475 year return event exceeding 20%, then Borrowers shall maintain earthquake insurance for the Full Replacement Cost of such Individual Property.

9.1.7Pollution

/Environmental. Borrowers shall purchase and maintain pollution/environmental insurance if Administrative Agent reasonably determines (based on any potential pollution conditions on the Property) that such insurance is necessary, in such form and amounts as Administrative Agent determines and (if applicable) in accordance with the provisions of the Environmental Indemnity Agreement.  

9.1.8Terrorism (Property)

.  Borrowers shall maintain coverage for property loss arising out of acts of terrorism in amounts, for such periods, and in such form, as reasonably approved by Administrative Agent.  Without limiting the foregoing, such coverage may be 

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provided (i) under the Property insurance policy required under Section 9.1.1 as an individual sub-limit of coverage, (ii) by electing coverage under the Terrorism Risk Insurance Program Reauthorization Act of 2015 and subsequent renewals thereof or (c) if any Borrower’s Property insurance policy does not cover terrorism, under a stand-alone policy containing coverage with substantially similar coverage as provided under the Terrorism Risk Insurance Program Reauthorization Act of 2015. Notwithstanding anything to the contrary as set forth in this Agreement, if a material change, material modification, termination or non-extension of TRIPRA (or other similar government legislation that replaces TRIPRA) results in the insurance premium paid by Borrowers in respect of the terrorism insurance required by this Agreement immediately prior to such material change, material modification, termination or non-extension increasing to an amount that exceeds an amount that is two hundred percent (200%) of the amount of the premium for the property insurance required by this Agreement (exclusive of terrorism, flood, wind or earthquake insurance coverage) (such premium amount, the “Maximum Terrorism Premium Amount”), then the amount of terrorism insurance required by Lender to be maintained by Borrower in respect of the Property shall be reduced to an amount that can be obtained for a premium equal to the Maximum Terrorism Premium Amount.

9.2Liability Insurance

.

9.2.1General Liability Insurance

.  Each Borrower shall obtain and maintain commercial general liability insurance on the broadest forms available, written on an “occurrence” basis, against all claims for bodily injury, disease or death, property damage, personal injury, contractual liability and similar risks to third parties in an amount not less than (i) One Million Dollars ($1,000,000) per occurrence and (ii) Two Million Dollars ($2,000,000) in the aggregate. 

9.2.2Commercial General Liability Insurance

 for Construction.  During any period of construction, repair, restoration, renovation or replacement of Improvements, Borrowers shall cause any general contractor or construction manager to maintain commercial general liability insurance, including coverage for products and completed operations, with limits of not less than One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) in the aggregate.  Borrowers shall also cause the general contractor or construction manager to require any and all of its subcontractors of any tier to provide a certificate of insurance evidencing commercial general liability insurance (including products and completed operations), with a limit of not less than One Million Dollars ($1,000,000) per occurrence, and upon demand by Administrative Agent, provide evidence that is reasonably satisfactory to Administrative Agent that Borrowers have complied with this requirement.  Borrowers shall cause the general contractors, construction managers and subcontractors to include Borrowers, Administrative Agent and Lender as additional insureds on all of their insurance policies required pursuant to this Agreement.

9.2.3Insurance for Independent Vendors

.  Borrowers shall require vendors that will operate independently or perform services for (or on behalf of) Borrowers on or in connection with any Individual Property to maintain commercial general liability insurance 

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(including products and completed operations) with limits of not less than One Million Dollars ($1,000,000) per occurrence.

9.2.4Workers’ Compensation and Employer’s Liability Insurance

.  Borrowers shall maintain workers’ compensation and employer’s liability insurance (or insurance equivalents thereto) for all of Borrowers’ employees, and Borrowers shall cause any and all of Borrowers’ engineers, contractors, subcontractors (of any tier), agents, vendors and similar entities to maintain similar insurance for all their respective employees, in such amounts and to the fullest extent (i) required under applicable Legal Requirements or (ii) otherwise required by Administrative Agent.  Upon demand by Administrative Agent, Borrowers shall provide evidence reasonably satisfactory to Administrative Agent that all of Borrowers’ agents, contractors, subcontractors (of any tier), vendors, and similar entities are in full compliance with the aforementioned requirements.

9.2.5Excess/Umbrella Liability Insurance

.  Borrowers shall obtain and maintain umbrella/excess liability insurance providing coverage in excess of the insurance required pursuant to Section 9.2.1, Section 9.2.2, Section 9.2.3 and Section 9.2.4.  Such insurance shall be written on an “occurrence” basis with limits of no less than Twenty-Five Million ($25,000,000) per occurrence and Twenty-Five Million ($25,000,000) in the aggregate (and, if written on a blanket policy, such umbrella/excess liability insurance shall contain a per location aggregate limit).  

9.3Other Insurance Coverage

.  The types and limits of insurance coverage stipulated in this Article 9 represent the minimum insurance requirements to be satisfied by Borrowers.  Administrative Agent retains the right, at any time and from time to time, to make any changes to these minimum requirements as Administrative Agent reasonably deems necessary or appropriate in accordance with properties of like kind, quality and occupancy in the area.  In addition to the requirements set forth herein, Borrowers shall also maintain (i) all insurance, surety and fidelity bonds that any Borrowers are required to maintain as landlord under any Leases and (ii) any other insurance and bonds in amounts, and for such periods that are deemed to be prudent, or are customarily maintained by Persons operating properties of type, construction and occupancy similar to any Individual Property in the locality of such Individual Property.  

9.4Other Requirements With Respect to Insurance

.

9.4.1Insurance Companies

.  All Required Insurance Policies herein shall be issued by insurance companies (i) reasonably approved by Administrative Agent, (ii) with a rating of at least AVIII in Best’s Key Rating Guide and (iii) of recognized good standing and licensed or permitted to do business in the state or jurisdiction in which the applicable Individual Property is located (each, an “Approved Insurer”).

9.4.2Deductibles

.  No policy shall have a deductible exceeding Twenty-Five Thousand Dollars ($25,000) for any one occurrence unless (i) Administrative Agent approves a higher deductible, (ii) a higher deductible is required under applicable Legal Requirements, or (iii) a higher deductible is required by insurers for specific catastrophic perils, such as earthquake, flood and named windstorm (and evidence of such mandatory 

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or insurer-specific requirements is satisfactorily provided to Administrative Agent by Borrowers).

9.4.3Automatic Reinstatement; Blanket Policies; Joint Loss Agreement

.  Notwithstanding anything contained in this Article 9, if any of the insurance required of Borrowers or other Persons under this Agreement is included under one or more blanket policies carried by Borrowers or such other Person, then such policies shall include, as available in the current insurance market, warranties of the right to reinstate coverage and policy limits of not less than the amount specified in the applicable subsection hereof, if any.  Administrative Agent shall determine, in its reasonable discretion, whether such blanket policies provide sufficient limits of insurance.  Coverage under blanket policies may be extended by endorsements, provided that the insurer providing such blanket policy is an Approved Insurer.  Unless the insurance required pursuant to Section 9.1 is provided on a single policy, a Joint Loss Agreement between each of the separate policies must be executed and delivered to Administrative Agent.

9.4.4Evidence of Insurance

.  Borrowers represent and warrant to Administrative Agent that Borrowers have delivered to Administrative Agent true, correct and complete copies of all of the Required Insurance Policies, evidencing that all coverage required under this Agreement is in full force and effect.  At least five (5) Business Days prior to the expiration date of any Required Insurance Policy, Borrowers shall deliver to Servicer a certified copy of the applicable renewal policy, or detailed binder or endorsement or certificate in form and content satisfactory to Administrative Agent.  Whenever a certificate of insurance is issued in connection with any Required Insurance Policy, such certificate shall, at the minimum:  (i) be on an Accord 28 form for Property insurance and an Accord 25 form for liability insurance, (ii) indicate the applicable Borrowers as the named insured; (iii) indicate the required limits of insurance for property and liability; (iv) indicate the applicable Properties as a covered location; (v) specify each of Administrative Agent and Lender as a “mortgagee” and “lender loss payee” (on Property insurance certificates) and an additional insured (on liability insurance certificates); (vi) show each of Administrative Agent and Lender as the “Certificate Holder” c/o:  Servicer (with Servicer’s address); (vii) indicate policy numbers and policy term dates; (viii) identify the insurance companies responsible for each type of coverage; and (ix) bear a duly authorized signature.   

9.4.5Other Contents of Required Insurance Policies

.  Each of the Required Insurance Policies shall (i) contain a standard waiver of subrogation provision benefiting Lender, (ii) explicitly specify the applicable Properties as an insured location, (iii) provide that the insurance coverage in effect at any time under each such Required Insurance Policy is not contributory, participating with, or excess coverage over any other insurance policy (unless such other insurance policy is a Required Insurance Policy), and (iv) include a standard non-contributing, non-reporting mortgagee/lender loss payee clause (or its equivalent satisfactory to Administrative Agent) on such Required Insurance Policy, (a) naming each of Administrative Agent and Lender as “First Mortgagee and Lender Loss Payee” entitled to collect, directly from the insurers, any proceeds payable under such policy, as Administrative Agent’s and Lender’s interests may appear in such policy and (b) stipulating that Administrative Agent’s entitlement to so collect directly from the insurer will in no way be adversely affected by any act, error or omission of Borrowers that may 

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otherwise void any or all coverage provided under such policy.  Administrative Agent retains the right to require a “cut-through” clause in any Required Insurance Policy at any time, should Administrative Agent determine that the insurer’s actual or projected solvency jeopardizes the interest of either Administrative Agent or Lender as a mortgagee or lender loss payee or additional insured.  

9.4.6Cancellation; Replacement

.  Borrowers shall immediately notify Administrative Agent of any cancellation of, non-renewal of, or any other material change that may adversely affect any Required Insurance Policy or coverage in effect under such Required Insurance Policy.  Each Required Insurance Policy shall contain a provision that (i) requires the insurer under such Required Insurance Policy to give Administrative Agent at least thirty (30) days prior written notice of such insurer’s intent to cancel, or make a change to, such Required Insurance Policy and (ii) specifies that any loss otherwise payable to Administrative Agent and/or Lender under such Required Insurance Policy shall be paid, notwithstanding any act or negligence of Administrative Agent, Lender or Borrowers that might, absent of such provision, result in a forfeiture of all or part of such insurance payment.  Borrowers shall not be permitted to replace any Required Insurance Policy without Administrative Agent’s prior written consent. 

9.4.7Separate Insurance

.  Borrowers shall not, without Administrative Agent’s express written prior consent, purchase any separate insurance concurrent in form or contributing, in the event of loss, with the Required Insurance Policies hereunder.

9.4.8Contravention of Insurance

.  Borrowers shall not intentionally do, or allow or permit to be done, anything on or with respect to any Individual Property that may in any way affect, impair or contravene any insurance policies then in effect for any Individual Property or any part thereof.  Further, Borrowers at Borrowers’ sole cost and expense, shall comply and cause compliance of each Individual Property, and the operations, maintenance and use thereof, with all insurance requirements set forth in this Article 9 and with all Required Insurance Policies, whether or not such compliance shall require structural changes in, or interfere with the use and enjoyment of any Individual Property, or any part thereof.

9.4.9Payment of Premium; Failure of the Borrowers to Effect Insurance

.  Borrowers shall (i) pay, before delinquency and before the imposition of any penalty or interest, any and all premiums for all Required Insurance Policies, and (ii) deliver to Administrative Agent, without notice or demand, satisfactory evidence of the payment of the premiums of all such insurance not later than the date that is ten (10) days following the date that any such payment is made.  Notwithstanding the foregoing, so long as (a) Borrowers have deposited funds with Administrative Agent for the payment of insurance premiums for all of the Required Insurance Policies and (b) Administrative Agent is applying funds deposited by Borrowers to the payment of such insurance premiums, in each case, pursuant to Section 3.2.2, then Borrowers shall not be obligated to pay such insurance premiums or provide such written evidence of payment pursuant to this Section 9.4.9.  If Borrowers fail to effect, maintain or renew any of the Required Insurance Policies as stipulated in this Agreement, or fails to pay the premiums thereof or fails to deliver to Administrative Agent any evidence of the Required Insurance Policies, then 

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Administrative Agent may procure replacement insurance to implement or replace, as the case may be, the coverage to be provided by the Required Insurance Policies.  Any sums expended by Administrative Agent and/or Lender to procure such replacement insurance shall be due and payable by Borrowers to Administrative Agent not later than five (5) days following Administrative Agent’s demand therefor, shall bear interest at the Default Rate from the date such sums are advanced by Administrative Agent and/or Lender until the date such sums (together with the applicable interest thereon at the Default Rate) are paid by Borrowers to Administrative Agent, and shall be part of the Secured Obligations; provided that Borrowers agree that procurement by Administrative Agent of any such insurance shall not be deemed to waive or release any Default or Event of Default, or the right of Administrative Agent, at Administrative Agent’s option, to exercise the remedies set forth herein, or in the Security Instruments or any other Loan Document, with respect to any Default or Event of Default.  Administrative Agent shall not be responsible for obtaining or maintaining any insurance required hereunder and shall not, by reason of accepting, rejecting, approving or obtaining any such insurance, incur any liability for the existence, nonexistence of, or insufficient coverage; or from legal liability arising therefrom. 

9.4.10Successor’s Rights

.  Any Person that acquires title to the Property, the Chattels, the Intangible Personalty or the other Collateral (or any portion thereof) upon foreclosure or deed or assignment-in-lieu of foreclosure will succeed to all of Borrowers’ rights under all applicable policies of insurance maintained pursuant to this Article 9.

9.4.11Notice of Changes

.  Upon a change in ownership, use or occupancy of any Individual Property, Borrowers shall promptly notify Administrative Agent and all other Persons insured under the Required Insurance Policies of such change in writing; provided, that nothing in this Section 9.4.11 shall be construed to permit such change in ownership, use or occupancy of any Individual Property.  With the exception of Workers’ Compensation, all Required Insurance Policies will allow, but not obligate, Administrative Agent to participate in the adjustment and settlement process of all claims expected to exceed One Hundred Thousand Dollars ($100,000). 

9.4.12Leases

.  Borrowers shall comply with the terms of Section 7.1.13(G).

ARTICLE 10

EVENTS OF DEFAULT; REMEDIES

10.1Event of Default

.  The occurrence of one or more of the following events shall be an “Event of Default” hereunder and under each of the other Loan Documents:

10.1.1Failure to Pay Scheduled Amounts

.  Any Borrower fails to pay when due any Loan Debt Service Payments or other amount in a sum certain under this Agreement (including under Article 3) or under any of the other Loan Documents for which sum there is a scheduled date for payment or for which there is a date certain for payment (including the payment of all outstanding Secured Obligations on the Maturity Date).  Notwithstanding the foregoing, in any period of twelve (12) consecutive months, there 

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shall be a single grace period of not more than five (5) days for any one (1) Loan Debt Service Payment if such Loan Debt Service Payment is not made on the applicable Payment Date; provided that, if the expiration date of such five (5) day grace period is not a Business Day, then such grace period shall expire on the succeeding Business Day.

10.1.2Failure to Pay Other Amounts

.  Any Borrower fails to pay any amount, other than any amount described in Section 10.1.1, on or prior to the date that is ten (10) Business Days following demand by Administrative Agent.

10.1.3Violation of Certain Covenants

.  The occurrence of any violation of any covenant contained in Section 3.2, Section 7.1.12, Section 7.1.13, Section 7.1.14, Section 7.1.15, Section 7.1.16, Section 7.1.19, Section 7.2.3, Section 7.2.4, Section 7.2.5, Section 7.2.6, Section 7.2.7, Article 8, Section 11.15.1 or Section 11.17. 

10.1.4Other Obligations

.  Any Borrower and/or Guarantor fails to perform any of the obligations contained in this Agreement or any of the other Loan Documents to which such Borrower and/or Guarantor is a party (other than any obligation that is covered by any other provision in this Section 10.1), and such failure continues for a period of thirty (30) days following written notice thereof from Administrative Agent to Borrowers and/or Guarantor; provided, however, that if such failure is not curable within such thirty (30) day period, then, so long as Borrowers and/or Guarantor commence to cure such failure within such thirty (30) day period and are continually and diligently attempting to cure such failure to completion, then such failure shall not be an Event of Default unless such failure remains uncured for one hundred twenty (120) days after such written notice to Borrowers and/or Guarantor.  For the avoidance of doubt, the cure periods set forth in this Section 10.1.4 shall not be applicable to the Events of Default described in the other subsections of this Section 10.1.

10.1.5Levy Against Property

.  The levy against any of the Property, Chattels, Intangible Personalty or the other Collateral of any execution, attachment, sequestration or other writ that shall remain unvacated, or not set aside, or unstayed, for thirty (30) days.

10.1.6Liquidation; Division

.  The liquidation, termination or dissolution of any Borrower Control Person, or division of any Borrower Control Person into multiple entities or series pursuant to Section 18-217 of the Delaware Limited Liability Company Act (or similar provision under the law of the applicable Person’s state of formation) or otherwise.

10.1.7Appointment of Receiver

.  The appointment of a trustee, receiver or liquidator for the assets, or any part thereof, of any Borrower Control Person (other than any member of the REIT Board), other than by the request of Administrative Agent.

10.1.8Assignments

.  Any Borrower Control Person (other than any member of the REIT Board) makes a transfer in fraud of creditors or makes an assignment for the benefit of creditors.

10.1.9Order for Relief

.  The entry in bankruptcy of an order for relief for or against any Borrower Control Person (other than any member of the REIT Board).

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10.1.10Bankruptcy

.  The filing of any petition (or answer admitting the material allegations of any petition), or other pleading, seeking entry of an order for relief for or against any Borrower Control Person (other than any member of the REIT Board) as a debtor or bankrupt or seeking an adjustment of any of such parties’ debts, or any other relief under any Bankruptcy Law, including a petition or answer seeking reorganization or admitting the material allegations of a petition filed against any such party in any bankruptcy or reorganization proceeding, or the act of any of such parties in instituting or voluntarily being or becoming a party to any other judicial proceedings intended to effect a discharge of the debts of any such parties, in whole or in part, or a postponement of the maturity or the collection thereof, or a suspension of any of the rights or powers of a trustee or of any of the rights or powers granted to Administrative Agent herein or in any other Loan Document, and any such petition, if involuntary, is not dismissed within ninety (90) days following the filing thereof.

10.1.11Admission Regarding Debt

.  Any Borrower Control Person (other than any member of the REIT Board) admits in writing any such Borrower Control Person’s inability to pay such Borrower Control Person’s debts as they become due.

10.1.12Misrepresentation

.  Any representation, warranty or certification made by any Borrower Control Person herein, or in any of the other Loan Documents, the Term Sheet, or any certificate delivered to Administrative Agent or Lender under or in connection with any of the Loan Documents, is false, misleading or erroneous in any material respect at the time when made.

10.1.13Judgments

.  Any failure of any Borrower or Guarantor to pay any money judgment in excess of Fifty Thousand Dollars ($50,000) against such Person before the expiration of thirty (30) days after such judgment becomes final and no longer appealable.

10.1.14Assertion of Priority

.  Any proceeding, lis pendens or other public filing of any claim of priority over any Security Instrument, by title, Lien, or otherwise, unless Borrowers within forty-five (45) days after such assertion either causes the assertion to be withdrawn or provides Administrative Agent with written evidence reasonably satisfactory to Administrative Agent that Borrowers are diligently defending against any such claim or causing such claim to be diligently defended on behalf of Borrowers by the applicable title insurance company.

10.1.15Other Loan Documents

.  The occurrence of (i) any Default after the lapse of any applicable notice, grace or cure period under any other Loan Document, or (ii) any event or circumstance defined as or deemed to be an “Event of Default” under this Agreement or any other Loan Document.

10.1.16Other Liens

.  The occurrence of any default after the lapse of any applicable grace or cure period, or the occurrence of any event or circumstance defined as an “Event of Default” under any consensual Lien encumbering the Property or any part thereof or interest therein, or any document or instrument evidencing obligations secured thereby; provided, however, that nothing in this Section 10.1.16 shall be deemed to permit any such consensual Lien to be executed by any Borrower or any other Person.

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10.1.17Other Indebtedness

.  The occurrence of any default after the lapse of any applicable grace or cure period, or the occurrence of any event or circumstance defined as an “Event of Default” under any Indebtedness incurred or owing by any Borrower, or any document or instrument evidencing any obligation to pay such Indebtedness; provided, however, that nothing in this Section 10.1.17 shall be deemed to permit any Borrower to incur such Indebtedness.

10.1.18Injunction

.  Any order or decree is entered by any court of competent jurisdiction (i) enjoining the rental of any space at the Property or (ii) enjoining or prohibiting any Borrower or Guarantor, from substantially performing any of its respective obligations under this Agreement or any other Loan Document and such order or decree is not stayed or vacated, or the proceedings out of which such order or decree arose are not dismissed, within thirty (30) days after the granting of such decree or order.

10.1.19Validity of Loan Documents

.  Any Borrower Control Person shall purport to, terminate, revoke, repudiate, declare voidable or void or otherwise contest the validity or enforceability of any of the Loan Documents, or any provision thereof or any of the obligations of any Borrower Control Person under any Loan Document.

10.1.20Cash Management; Accounts

.  Borrowers spend or use any funds disbursed to Borrowers from the Deposit Account, the Excess Cash Subaccount or any other Account in violation of the terms and conditions of this Agreement or the other Loan Documents.

10.1.21Financial Statements

.  Borrowers fail to comply with any of the terms of Section 7.1.6, and such failure continues for a period of ten (10) Business Days following written notice thereof from Administrative Agent to Borrowers.

10.1.22Cross-Collateralized Loan Documents

.  The existence of any “Event of Default” under any of the Cross-Collateralized Loan Documents (as such term is defined therein).

10.1.23Affiliate Guaranty (Portfolio Borrowers) 

.  The existence of any “Event of Default” under the Affiliate Guaranty (Portfolio Borrowers).

Notwithstanding anything herein to the contrary, the provision of Section 10.1.7, Section 10.1.8, Section 10.1.9, Section 10.1.10, Section 10.1.11, and Section 10.1.13 shall not apply to any individual member of the Board of Directors of any corporation that is a Borrower Control Person.

10.2Remedies

.  Immediately upon or any time and from time to time after the occurrence and during the continuation of any Event of Default hereunder, Administrative Agent and/or Lender may exercise any remedy not prohibited at law, in equity or otherwise, including those listed below and those listed in the other Loan Documents, in such sequence or combination as Administrative Agent and/or Lender may determine.  The rights, powers and remedies of Administrative Agent and Lender under this Agreement and each other Loan Document shall be cumulative and not exclusive of any other right, power or remedy that Administrative Agent and/or Lender, as applicable, may have against Borrowers and/or Guarantor pursuant to this Agreement or any other Loan Document, or existing at law or in equity or otherwise. Administrative Agent’s and Lender’s rights, powers and remedies may be pursued singly, concurrently, successively, 

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jointly or otherwise, against Borrowers, the Property, any Chattels, any Intangible Personalty and any other Collateral, or against Guarantor or any obligor under, or guarantor of, the Notes or the other Loan Documents, at such time and in such order as Administrative Agent may determine.  No act of Administrative Agent and/or Lender shall be construed as an election to proceed under any particular provision of any Loan Document to the exclusion of any other provision in the same or any other Loan Document, or as an election of remedies to the exclusion of any other remedy that may then or thereafter be available to Administrative Agent and/or Lender.

10.2.1Performance of Defaulted Obligations and Protective Advances

.  Administrative Agent may make any payment (including Protective Advances) or perform any other obligation under the Loan Documents or Leases that any Borrower has failed to make or perform, and Borrowers hereby irrevocably appoint Administrative Agent as the true and lawful attorney-in-fact for Borrowers to make any such payment and perform any such obligation in the name of Borrowers; provided that no such sum expended by Administrative Agent (and no reimbursement thereof by Borrowers) shall be deemed to cure any Event of Default unless Administrative Agent shall waive such Event of Default in writing.  All payments made and expenses (including actual out-of-pocket attorneys’ fees) incurred by Administrative Agent in this connection, together with interest thereon at the Default Rate from the date paid or incurred by Administrative Agent until repaid by Borrowers, shall become part of the Secured Obligations and shall become immediately due and payable by Borrowers to Administrative Agent.  In lieu of advancing Administrative Agent’s own funds for such purposes, Administrative Agent may use any funds of Borrowers that may be in Administrative Agent’s possession, including any funds in any of the Accounts.

10.2.2Specific Performance and Injunctive Relief

.  Notwithstanding the availability of legal remedies, Administrative Agent on behalf of Lender shall be entitled to obtain specific performance, mandatory or prohibitory injunctive relief, or other equitable relief requiring Borrowers or Guarantor to cure or refrain from repeating any Default or Event of Default.

10.2.3Acceleration of Secured Obligations

.  Except as expressly required under Legal Requirements, Administrative Agent may, without notice or demand, declare all of the Secured Obligations immediately due and payable in full.

10.2.4Suit for Monetary Relief

.  Subject to the non-recourse provisions of Article 12, with or without accelerating the maturity of the Secured Obligations, Administrative Agent may sue from time to time for any payment due under any of the Loan Documents, or for money damages in respect of any Default or Event of Default under any of the Loan Documents.

ARTICLE 11

GENERAL PROVISIONS

11.1Expiration of Borrower Claims

.  Neither Administrative Agent nor Lender shall be in default or breach under this Agreement, or under any of the other Loan Documents, unless a 

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written notice specifically setting forth the claim of Borrowers shall have been given to Administrative Agent within three (3) months after Borrowers first obtain knowledge of the occurrence of the event that Borrowers allege gave rise to such claim.  Borrowers waive any claim, set off or defense against Administrative Agent and/or Lender arising by reason of any alleged default or breach by Administrative Agent and/or Lender as to which Borrowers do not give such notice timely as aforesaid.  Borrowers acknowledge that such waiver is or may be essential to Administrative Agent’s ability to enforce Administrative Agent and/or Lender’s remedies without delay and that such waiver therefore constitutes a substantial part of the bargain between Administrative Agent and Lender, on the one hand, and Borrowers, on the other hand, with respect to the Loan.  

11.2Time of the Essence

.  Time is of the essence with regard to the obligations of Borrowers and Guarantor under this Agreement and each other Loan Document.

11.3Joint and Several Obligation

.  (i) All Persons comprising Borrowers are jointly and severally liable for all of the Secured Obligations; (ii) representations, warranties, and covenants made by any Person comprising Borrowers shall be deemed representations, warranties, and covenants of all of the Persons comprising Borrowers; (iii) any breach, Default or Event of Default by any of the Persons comprising Borrowers shall be deemed to be a breach, Default, or Event of Default of all of the Persons comprising Borrowers; and (iv) any event creating personal liability of any of the Persons comprising Borrowers shall create personal liability for all of the Persons comprising Borrowers.

11.4Waivers by Borrower

s.

11.4.1Homestead, Marshaling of Assets and other Rights

.  Borrowers agree not to assert (and, to the extent not prohibited by Legal Requirements, Borrowers hereby waive) any right under any Legal Requirements pertaining to the marshaling of assets, the sale in inverse order of alienation, any homestead exemption or the administration of estates of decedents to defeat, reduce or affect the right of Administrative Agent and/or Lender under the Loan Documents to a sale of any Collateral for the collection of the Secured Obligations.  Notwithstanding the existence of interests in the Property, Chattels, Intangible Personalty or other Collateral other than that created by the Loan Documents, and notwithstanding any other provision of the Loan Documents, upon an Event of Default, to the extent permitted by applicable Legal Requirements, Administrative Agent shall have the right to determine the order and manner in which the Property, Chattels, Intangible Personalty or other Collateral shall be subjected to the remedies provided for in the Loan Documents and to determine the order and manner in which all or any part of the Secured Obligations are satisfied from the proceeds realized upon the exercise of the remedies provided for in the Loan Documents. 

11.4.2Claims for Monetary Damages

.  Borrowers hereby (i) waive any claim that Borrowers may have against any of the Indemnified Parties based upon any assertion that any such Indemnified Party has acted unreasonably or that any such Indemnified Party has unreasonably withheld or unreasonably delayed any action, in each case, to the extent that such Indemnified Party had an obligation, either at law or pursuant to the Loan Documents to act reasonably and (ii) agree that the sole remedy of Borrowers based upon any such 

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claim against any of the Indemnified Parties shall be an action for specific performance, injunctive relief or declaratory judgment.  Borrowers hereby further agree that the Indemnified Parties shall not be liable for any monetary damages (including compensatory, consequential or punitive damages) in respect of any such claim by Borrowers and that Borrowers’ sole remedy in respect of any such claim shall be limited to specific performance, injunctive relief or declaratory judgment.

11.4.3Required Notices

.  Borrowers shall not be entitled to any notices of any nature whatsoever from Administrative Agent or Lender, except with respect to matters for which this Agreement or another Loan Document specifically and expressly provide for the giving of notice by Administrative Agent or Lender to Borrowers and except with respect to matters for which Borrowers are not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice.  Borrowers hereby expressly waive the right to receive any notice from Administrative Agent or Lender with respect to any matter for which this Agreement or the other Loan Documents does not specifically and expressly provide for the giving of notice by Administrative Agent or Lender to Borrowers.

11.4.4Offsets; Counterclaims

.  Any assignee of Administrative Agent’s or Lender’s interest in and to this Agreement and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses that are unrelated to this Agreement and the other Loan Documents that Borrowers may otherwise have against any assignor of this Agreement and the other Loan Documents.  No such unrelated counterclaim or defense shall be interposed or asserted by Borrowers in any action or proceeding brought by any such assignee upon this Agreement or upon any other Loan Document.  Any such right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by Borrowers, unless and to the extent Borrowers would be permanently barred from asserting such claim in any action or proceeding.   

11.5Entire Agreement; Modification in Writing; No Implied Waivers by Administrative Agent

.  This Agreement, together with the other Loan Documents, contains the entire understanding between the parties to the matters addressed herein and supersedes any other understandings or agreements with respect to the matters covered hereby.  No modification, amendment, extension, discharge, termination or waiver of any provision of this Agreement or any other Loan Document, or consent or waiver referred to in any Loan Document, or consent to any departure by Borrowers therefrom, shall in any event be effective unless the same shall be in a writing signed by Administrative Agent, and then such waiver or consent shall be effective only in the specific instance, and for the purpose, for which given.  Without limiting the generality of the preceding sentence, neither Administrative Agent’s and/or Lender’s acceptance of any payment with knowledge of a Default or Event of Default, nor any failure by Administrative Agent and/or Lender to exercise any remedy following a Default or Event of Default, shall be deemed a waiver of such Default or Event of Default, and no waiver by Administrative Agent and/or Lender of any particular Default or Event of Default shall be deemed a waiver of any other Default or Event of Default or of any similar Default or Event of Default in the future.  No course of conduct, dealing or performance (including any delays by Administrative Agent and/or Lender in enforcing any remedies) by Administrative Agent and/or Lender shall be deemed to constitute a waiver by Administrative Agent and/or Lender of any rights under any of the Loan Documents.  Except as 

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otherwise expressly provided herein, no notice to or demand on Borrowers shall entitle Borrowers to any other or future notice or demand in the same, similar or other circumstances. 

11.6Administrative Agent’s Discretion; Binding Action

.  Whenever pursuant to this Agreement or the other Loan Documents, Administrative Agent or Lender exercises any right to approve or disapprove any matter, or make any determination, or any arrangement or term is required to be satisfactory to Administrative Agent or Lender, as applicable, the decision of Administrative Agent or Lender, as applicable, to approve or disapprove such matter or to make such determination or to decide whether such arrangement or term is satisfactory or not satisfactory shall (except as is otherwise specifically herein provided) be in the sole and absolute discretion of Administrative Agent or Lender and shall be final and conclusive.  Borrowers agree that with respect to any consent, direction, approval or action that is required of Borrowers under this Agreement or any other Loan Document, any consent, direction, approval or action by Borrowers shall be binding on Borrowers and that neither Administrative Agent nor Lender shall have any obligation to confirm any such consent, direction, approval or action and may act in reliance upon any such consent, direction, approval or action.

11.7Headings; Exhibits and Schedules Incorporated

.  The Article and Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.  The information set forth on the cover, the heading and the recitals hereof, and the Exhibits and the Schedules attached hereto, are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof.

11.8Governing Law; Forum

.  The substantive laws of the State of New York shall govern the validity, construction, enforcement and interpretation of this Agreement and the other Loan Documents, without reference to conflicts of law principles.  Any legal suit, action or proceeding against Administrative Agent, Lender or any Borrower arising out of or relating to this Agreement or the other Loan Documents, shall be instituted in any federal or state court located in the County of New York, State of New York, and Borrowers waive any objections that Borrowers may now or hereafter have based on venue and/or forum non conveniens of any such suit, action or proceeding, and Borrowers hereby irrevocably submit to the jurisdiction of any such court in any suit, action or proceeding.

11.9WAIVER OF TRIAL BY JURY

.  BORROWERS, ADMINISTRATIVE AGENT AND LENDER KNOWINGLY, IRREVOCABLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT EITHER MAY HAVE TO, AND AGREE NOT TO SEEK, A TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM BASED ON THIS AGREEMENT, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO OR TO ANY OTHER LOAN DOCUMENT.  BORROWERS, ADMINISTRATIVE AGENT AND LENDER FURTHER AGREE THAT NO SUCH ACTION WITH RESPECT TO WHICH A JURY TRIAL HAS BEEN WAIVED SHALL BE SOUGHT TO BE CONSOLIDATED WITH ANY OTHER ACTION WITH RESPECT TO WHICH A JURY TRIAL CANNOT OR HAS NOT BEEN WAIVED.  THIS SECTION HAS BEEN FULLY DISCUSSED BY BORROWERS, ADMINISTRATIVE AGENT AND LENDER, EACH OF WHOM HAS BEEN REPRESENTED BY COUNSEL, AND THIS SECTION SHALL NOT BE 

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SUBJECT TO ANY EXCEPTIONS.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER, ADMINISTRATIVE AGENT AND BORROWERS TO ENTER INTO THE TRANSACTIONS.

11.10Notices

.  Any notice, consent or approval required or permitted to be given by Borrowers or Administrative Agent and/or Lender (or delivered to Servicer) under this Agreement shall be in writing and will be deemed given (i) upon personal delivery, (ii) on the first (1st) Business Day after receipted delivery to a courier service which guarantees next-business-day delivery, or (iii) on the third (3rd) Business Day after mailing, by registered or certified United States mail, postage prepaid, in any case to the appropriate party at its address set forth below.  In addition, any notice to Administrative Agent and/or Lender shall only be deemed effective if a copy of such notice is delivered via email to CMLnotices@aig.com not later than the Business Day that a hard copy of such notice is delivered in accordance with this Section 11.10.

 

If to Borrowers:

c/o GTJ REIT, Inc.

1399 Franklin Avenue, Suite 100

Garden City, New York 11530

Attention: Paul A. Cooper

 

with a copy to:

ArentFox Schiff LLP

1185 Avenue of the Americas, Suite 3000

New York, New York 10036

Attention:  Christine A. McGuinness, Esq.           

Email: Christine.mcguinness@afslaw.com

If to Administrative Agent and/or Lender:

AIG Asset Management (U.S.), LLC

28 Liberty Street

Floor 47

New York, New York 10005-1445

Attention: CML Legal Notices

E-mail: CMLnotices@aig.com

 

with a copy to:

 

Katten Muchin Rosenman LLP 

50 Rockefeller Plaza

New York, New York 10020-1605

Attention:  Andrew L. Jagoda, Esq. 

E-mail: andrew.jagoda@katten.com

 

If to Servicer:

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CBRE Loan Services, Inc.

929 Gessner, Suite 1700

Houston, Texas 77024 
Attention: Kevin Hudson

Email: kevinhudson@cbre.com

Any party may change such party’s address for notices or copies of notices by giving notice to the other party in accordance with this Section 11.10.

11.11Severability

.  Wherever possible, each provision of this Agreement and each other Loan Document shall be interpreted in such manner as to be effective and valid under Legal Requirements, but if any provision of this Agreement or any other Loan Document is held to be illegal, invalid or unenforceable under Legal Requirements, then the legality, validity, and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected thereby, and in lieu of each such illegal, invalid or unenforceable provision there shall be added automatically as a part of this Agreement or such other Loan Documents (as applicable) a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be legal, valid, and enforceable.  If the rights and Liens created by this Agreement or any other Loan Documents shall be invalid or unenforceable as to any part of the Secured Obligations, then the unsecured portion of the Secured Obligations shall be completely paid prior to the payment of the remaining and secured portion of the Secured Obligations, and all payments made on the Secured Obligations shall be considered to have been paid on and applied first to the complete payment of the unsecured portion of the Secured Obligations. 

11.12Preferences; Reinstatement

.  Administrative Agent and Lender shall have the continuing and exclusive right to apply or reverse and reapply any and all payments by Borrowers to any portion of the Secured Obligations.  To the extent Borrowers make a payment or payments to Administrative Agent and/or Lender for Borrowers’ benefit, which payment or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any Legal Requirements, then, to the extent of such payment or proceeds received, this Agreement shall continue to be effective or be reinstated, as applicable, and the obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by Administrative Agent and/or Lender, as applicable.

11.13No Joint Venture or Partnership

.  Borrowers, Administrative Agent and Lender intend that the relationship created hereunder and under the other Loan Documents be solely that of borrower and lender.  Nothing herein or in the other Loan Documents is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrowers, Administrative Agent and Lender nor to grant Administrative Agent and/or Lender any interest in the Collateral other than that of secured party, mortgagee or lender. 

11.14Conflict; Construction; Counterparts

.  In the event of any conflict between the provisions of this Agreement and the provisions of any of the other Loan Documents, the provisions of this Agreement shall prevail.  The parties hereto acknowledge that they were represented by counsel in connection with the negotiation and drafting of the Loan Documents and 

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that the Loan Documents shall not be subject to the principle of construing their meaning against the party that drafted the same.  This Agreement may be executed in any number of counterparts, all of which shall together constitute one and the same instrument.  This Agreement, to the extent signed and delivered by means of electronic transmission in portable document format (pdf), shall be treated in all manner and respects (and shall have the same binding legal effect) as a fully executed original Agreement.

11.15Estoppel Certificates

; Appraisals.  

11.15.1  Estoppel Certificates.

  Borrowers hereby agree, at any time and from time to time upon not less than ten (10) days’ prior written notice by Administrative Agent, to execute, acknowledge and deliver to the party specified in such notice, a statement, in writing, signed and acknowledged, certifying to Administrative Agent, Lender and such specified party (i) the balance of principal, interest, and other sums then outstanding under the Notes and the other Loan Documents, (ii) whether or not Borrowers claim that Administrative Agent and/or Lender is in default of any of the obligations of Administrative Agent or Lender, as applicable, under this Agreement or the other Loan Documents, and if so, the nature of any such default or defaults, (iii) whether or not Borrowers claim to have any offsets or defenses with respect to the Secured Obligations and, if so, the nature of such offsets or defenses, (iv) that this Agreement and the other Loan Documents are unmodified and in full force and effect (or if there have been modifications, that the same, as modified, is in full force and effect and stating the modifications hereto), and (v) stating whether or not, to the knowledge of Borrowers, any Default or Event of Default has occurred and is then continuing, and, if so, specifying each such Default or Event of Default. Administrative Agent agrees to provide a comparable certificate in connection with any transfer pursuant to Section 8.5.1.

11.15.2  Appraisals.

  Without limiting any right of Administrative Agent to obtain an Appraisal at Borrowers’ sole cost and expense pursuant to the express terms of this Agreement or any other Loan Document, Administrative Agent may obtain additional Appraisals of any Individual Property (x) at any time that an Event of Default exists at the sole cost and expense of Borrowers and (y) at any other time in the discretion of Administrative Agent and at the sole cost and expense of Administrative Agent.  Borrowers shall reasonably cooperate with Administrative Agent and the appraiser preparing such Appraisal and provide reasonable access to the applicable Individual Property, in each case, in respect of any such Appraisal obtained by Administrative Agent pursuant to this Section 11.15.2.  Borrowers shall reimburse Administrative Agent for the cost of any Appraisal obtained during the existence of an Event of Default pursuant to this Section 11.15.2 within ten (10) days following written demand for such reimbursement by Administrative Agent.

11.16No Third Party Beneficiaries; Successors and Assigns

.  Nothing in this Agreement or in any of the other Loan Documents shall confer upon any Person (other than the holder(s) of the Loan or any portion thereof, the parties hereto and their successors and permitted assigns) any rights or remedies under or by reason of this Agreement.  Without limiting the foregoing, this Agreement is binding upon and shall inure to the benefit of Borrowers and Borrowers’ successors and assigns, Administrative Agent and Administrative Agent’s successors and assigns, and Lender and Lender’s successors and assigns.  The duties, covenants, conditions, obligations, and 

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warranties of Borrowers in this Agreement shall be joint and several obligations of Borrowers and Borrowers’ successors and assigns.

11.17Sale of Loan and Securitization; Future Loan Modification

.   

11.17.1 Loan Modifications. Lender shall have the right, from time-to-time, to (i) sell, assign or transfer all or any portion of the Loan or any interest in the Loan, including participation interests in all or any portion of the Loan and (ii) modify, split and/or sever any portion of the Loan (any such modification, split or severance of all or any portion of the Loan, a “Loan Modification”). Borrowers shall cooperate, and cause Guarantor and each of the Borrower Control Persons to cooperate, with Lender to effectuate such Loan Modification (including by providing updated representations and warranties regarding the Loan and the Property, providing updated legal opinions, and, if reasonably determined by Lender to be consistent with the market standards for such Loan Modifications, providing revised organizational documents for the Borrowers and/or Managing Member that provide for one (1) or more Independent Managers) and shall execute, acknowledge and deliver such documents as Lender may reasonably request to evidence such Loan Modification.  Upon the election of Lender at any time to effectuate a Loan Modification, Lender may (a) cause the Notes, the Security Instruments and any of the other Loan Documents evidencing and securing the Loan to be split into two or more additional tranches of notes (i.e., an A-1/A-2 structure), (b) create two or more senior and subordinate notes (i.e., an A/B or A/B/C structure), (c) create multiple components of the Notes or notes, and/or (d) otherwise split or sever the Loan and the Notes into two or more loans and notes secured by mortgages or deeds of trust (as applicable) and, in each such case, allocate or reallocate the Principal Indebtedness among such split, severed or component loans and notes in whatever proportion and whatever priority Lender determines; provided, however, that, in each such instance, immediately after the effective date of such Loan Modification, (1) the outstanding principal balance of the note or notes evidencing the Loan (or split, severed or component notes evidencing the Loan) equals the Principal Indebtedness immediately prior to such Loan Modification, (2) the weighted average of the interest rates for the note or notes evidencing the Loan (or split, severed or component notes evidencing the Loan) equals the interest rate of the Notes immediately prior to such Loan Modification, and (3) there shall be no change to (x) the economic terms of the Loan Documents or (y) to the rights or obligations of Borrowers or Guarantor, other than de-minimis changes to reflect the revised structure of the Loan and the Notes (provided, that, Borrowers acknowledge and agree that in the event there is one or more senior/subordinate components of the Loan, “rate creep” will result from the application of prepayments in connection with a casualty or condemnation, application of payments during an Event of Default and/or voluntary partial prepayments to the extent permitted under the Loan Documents, and such “rate creep” will not be deemed a violation of clause (2) above or this clause (3) so long as Borrowers shall not pay in the aggregate more interest than Borrowers would have paid without such Loan Modification). Administrative Agent and/or Lender shall reimburse Borrowers for all actual documented out-of-pocket costs and expenses actually incurred by Borrowers in connection with the foregoing. 

11.17.2 Securitization.  Notwithstanding anything set forth herein to the contrary, and without limiting the generality of the foregoing, Lender shall have the right to 

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securitize the Loan (or any portion thereof or interest therein) in a commercial mortgage backed securitization or any other public offering or private placement (a “Securitization”), and Borrowers shall reasonably cooperate with Lender in effecting any such Securitization (without cost or expense to Borrowers (provided, however, that Borrowers shall be responsible for attorney’s fees incurred by Borrowers in excess of $25,000.00)).  Borrowers authorize Lender to disclose to any actual or prospective participant or transferee of the Loan (or any investor in such securities issued in connection with a Securitization or any rating agency rating such securities) any and all financial and other information then in Lender’s possession concerning the Property, the Borrower Control Persons and their respective Affiliates, or the Loan.  If requested by Lender, whether prior to, on or following the Closing Date, Borrowers shall assist Lender in satisfying the market standards to which Lender customarily adheres or which may be reasonably required in the marketplace or by any rating agency to be included in any loan documentation and/or disclosure documentation or otherwise in connection with any such Securitization. Without limiting the foregoing, if Lender reasonably deems it necessary to satisfy the market standards to which Lender customarily adheres or that may be reasonably required in the marketplace or by any rating agency in connection with any such Securitization, Borrowers shall deliver to Lender revised organizational documents for the Borrowers and/or Managing Member that provide for one (1) or more Independent Managers. Borrowers shall indemnify Lender (and its Affiliates) in connection with any material misstatement or material omission in the offering materials for such Securitization provided that such disclosure is based on information delivered by any Borrower Control Person to Administrative Agent and/or Lender. Lender shall reimburse Borrowers for all actual documented out-of-pocket attorney’s fees actually incurred by Borrowers in connection with the foregoing; provided, however, that Lender shall not be required to reimburse Borrowers for attorney’s fees in excess of $25,000.00. 

11.17.3 Disclosure of Lease Information.  To the extent that a Lease is subject to a confidentiality provision that prohibits Lender (or requires the landlord thereunder to prohibit Lender) from disclosing such Lease or information regarding the Tenant in connection with a Securitization or other disposition of the Loan, Borrowers will obtain (or have obtained) a waiver of such confidentiality provision for Lender’s benefit to permit disclosure of such information by Lender.

11.18Subrogation of Lender

.  Administrative Agent on behalf of Lender shall be subrogated to the Lien of any previous encumbrance discharged with funds advanced by Lender under the Loan Documents, regardless of whether such previous encumbrance has been released of record.

11.19Appointment of Servicer and Delegation of Administrative Agent Responsibilities

.

11.19.1Appointment and Replacement of Servicer

.  Borrowers acknowledge and agree that, at the sole option of Administrative Agent, the Loan may be serviced by a Servicer.  As of the Closing Date, Administrative Agent has retained CBRE Loan Services, Inc. as Servicer.  Administrative Agent may, by written notice to Servicer and Borrowers, appoint a successor servicer to act as Servicer under this Agreement and the other Loan Documents.  Borrowers hereby irrevocably authorize Administrative Agent to make any 

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such appointment that Administrative Agent deems advisable in Administrative Agent’s sole discretion, and Borrowers hereby irrevocably consent and agree to any such appointment.  Neither the resignation nor the removal of any Servicer hereunder shall release, discharge, waive or satisfy any of Borrowers’ obligations under this Agreement.

11.19.2Servicer Fees; Designation of Administrative Agent Responsibilities

.  Borrowers shall pay all third-party out-of-pocket fees and expenses incurred by Administrative Agent, Lender or Servicer in connection with the services performed by Servicer in connection with the Secured Obligations (including disbursements under this Agreement, the establishment and maintenance of any Accounts and the documentation thereof, actual, out-of-pocket attorneys’ fees and costs and bank fees and charges, inspections of the Property, casualty and condemnation matters and matters concerning Defaults and Events of Default).  Without limiting the foregoing, Borrowers acknowledge and agree that Administrative Agent may delegate the administration and review of Disbursement Requests (including review of any and all materials submitted by Borrowers in connection with such request and preparation of written reports to Administrative Agent summarizing such materials and recommending whether the request should be granted) to Servicer, that Administrative Agent may cause Servicer to open and maintain any Accounts on behalf of Administrative Agent or in Administrative Agent’s name, and that Borrowers shall pay all fees and expenses in connection therewith.  Borrowers shall indemnify and hold harmless Administrative Agent and Lender from and against any liability to Servicer in respect of such fees and expenses described in this Section 11.19.2.  Servicer shall not be responsible or liable in any manner whatsoever for the correctness, genuineness or validity of any document or instrument, or any signature thereon, deposited with or delivered to Servicer pursuant to this Agreement.  

11.20Payment of Expenses.

11.20.1Payment of Administrative Agent’s and Lender’s Costs and Expenses

.  In addition to the fees and expenses of Servicer described in Section 11.19, Borrowers shall pay all actual out-of-pocket costs and expenses of Administrative Agent and/or Lender (including actual out-of-pocket attorney’s fees) in connection with (i) the negotiation, preparation, execution and delivery of the Loan Documents and any other document being prepared in connection with the consummation of the Transactions (including costs and expenses for which invoices were not available at the closing of the Loan, or costs and expenses that are incurred by Administrative Agent and/or Lender after the closing of the Loan), (ii) the creation, perfection, preservation or protection of Administrative Agent’s and Lender’s Liens in the Collateral (including fees and expenses for title and Lien searches or amended or replacement mortgages, UCC-1 Financing Statements, or Loan Documents, Survey fees and charges, title insurance premiums and filing and recording taxes, fees and charges and the costs and fees incurred in connection with arranging, setting up, servicing and maintaining any Accounts), (iii) Administrative Agent’s due diligence with respect to the Property, including the fees and disbursements of the third parties that have prepared the Third Party Reports and any other third party due diligence expenses for the Property, including travel expenses, (iv) the negotiation, preparation, execution and delivery of any amendment, modification, supplement, waiver, restructuring or consent relating to any of the Loan Documents, and (v) any effort or action (whether or not litigation or foreclosure 

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is involved) to enforce or defend Administrative Agent’s and/or Lender’s rights and remedies under any of the Loan Documents, including all fees and expenses incurred by Administrative Agent and/or Lender in securing title to or possession of, and realizing upon, security for the Secured Obligations, or any other costs and expenses incurred in any workout, restructuring or similar arrangements or in connection with any collection or bankruptcy proceedings with respect to any Borrower or any other Borrower Control Person.  All such costs and expenses shall be due and payable by Borrowers to Administrative Agent not later than ten (10) days following Administrative Agent’s demand therefor, shall bear interest at the Default Rate from the date such costs and expenses are incurred by Administrative Agent and/or Lender until the date such costs and expenses (together with the applicable interest thereon at the Default Rate) are paid by Borrowers to Administrative Agent, and shall be part of the Secured Obligations.  

11.20.2Attorneys’ Fees References

.  Any reference in this Agreement to attorneys’ or counsels’ fees paid or incurred by Administrative Agent and/or Lender shall be deemed to include paralegals’ fees and legal assistants’ fees.  Moreover, wherever provision is made herein for payment of attorneys’ or counsels’ fees or expenses incurred by Administrative Agent and/or Lender, such provision shall include such fees or expenses incurred in any and all judicial, bankruptcy, reorganization, administrative, or other proceedings, including appellate proceedings, whether such fees or expenses arise before proceedings are commenced, during such proceedings or after entry of a final judgment.  Notwithstanding anything to the contrary in this Agreement or any other Loan Document, during the existence of any Event of Default, any reference to “reasonable” attorneys’ or counsels’ fees in this Agreement or any other Loan Document shall be deemed to refer to “actual, out-of-pocket” attorneys’ or counsels’ fees.

11.20.3Fee Deposit.

  As a condition precedent to reviewing any request of Borrowers or any other matter that Administrative Agent reasonably believes will result in Administrative Agent and/or Lender incurring any out-of-pocket costs, fees or expenses (including actual out-of-pocket attorneys’ fees), Administrative Agent may require Borrowers to deposit with Administrative Agent, Servicer or Administrative Agent’s counsel an amount reasonably determined by Administrative Agent to cover such costs, fees and expenses (the “Fee Deposit”).  Administrative Agent shall apply the Fee Deposit to the payment of any such out-of-pocket costs and expenses incurred in connection with the applicable request or other matter (regardless of whether such request or other matter is approved, denied or consummated); provided that (i) if the actual amount of such costs, fees, and expenses exceeds the amount of the Fee Deposit, then Borrowers shall promptly pay such excess amount to Administrative Agent, and (ii) if the amount of the Fee Deposit exceeds the actual amount of such costs, fees, and expenses, then Administrative Agent shall return such excess amount to Borrowers.  Notwithstanding that the Fee Deposit may be wired to Administrative Agent’s counsel, Borrowers and Administrative Agent hereby acknowledge and agree that in no way will any such remittance of the Fee Deposit to Administrative Agent’s counsel give rise to an attorney-client relationship between Borrowers on the one hand, and Administrative Agent’s counsel on the other hand. 

11.21Disclaimer Regarding Third Party Reports

.  Borrowers acknowledge that, in connection with the Loan, Administrative Agent has ordered, or may in the future order, certain 

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reports (collectively, the “Third Party Reports”) from third-party service providers, including (as applicable) an environmental report, engineering report, zoning report, seismic report, and an Appraisal.  Borrowers hereby agree and acknowledge that, with respect to the Third Party Reports, (i) none of Administrative Agent, Lender and any of their Affiliates were, or shall be, responsible for the production of or content of the Third Party Reports, (ii) even if Administrative Agent, Lender or their respective Affiliates have provided (or hereafter provides) Borrowers with a copy of any Third Party Report, Administrative Agent, Lender and their Affiliates are not making any representation or warranty, either express or implied, and hereby expressly disclaim any representation or warranty, whether express or implied, regarding (a) the contents, accuracy, completeness, or conclusions of the Third Party Reports, (b) whether any Borrower is an intended user of the Third Party Reports, or (c) whether any Borrower has any right to rely upon the Third Party Reports or has any rights or remedies against the applicable service provider related to the contents of such Third Party Reports), and (iii) Administrative Agent, Lender and their respective Affiliates disclaim any and all liability to Borrowers or any other Person.  Each Borrower for itself and on behalf of such Borrower’s Affiliates, hereby releases Administrative Agent Lender and their respective Affiliates from any Losses related to or arising out of the Third Party Reports or their contents or the accuracy, completeness, or conclusions thereof.  Without limiting the foregoing terms of this Section 11.21, Borrowers hereby agree and acknowledge that Borrowers are not intended users of any Appraisal, and absent a separate agreement between Borrowers and the applicable appraiser, Borrowers have no rights or remedies arising out of any Appraisal against such appraiser or any other Person.

11.22Acceptance of Cures for Events of Default

.  Notwithstanding anything to the contrary contained in this Agreement or the other Loan Documents (including any reference to the “continuance”, the “continuation” or the “existence” of an Event of Default or that an Event of Default is “continuing” (or variations thereof)), neither Administrative Agent nor Lender shall in any event or under any circumstance be obligated or required to waive or accept a cure by Borrowers, Guarantor, or by any other Person of an Event of Default unless Administrative Agent and/or Lender expressly agrees in writing to do so in the exercise of Administrative Agent’s and/or Lender’s sole and absolute discretion, it being agreed that once an Event of Default has occurred and so long as neither Administrative Agent nor Lender has determined and expressly agreed in writing to waive or accept a cure of such Event of Default, Administrative Agent and/or Lender shall be absolutely and unconditionally entitled to pursue all rights and remedies available to Administrative Agent and/or Lender under this Agreement, the Security Instruments or the other Loan Documents or otherwise at law or in equity.  

11.23No Mortgagee In Possession

.  Borrowers agree that none of Administrative Agent, Lender and Servicer is a mortgagee in possession with respect to the Property and that this Agreement does not create any obligation on the part of Administrative Agent, Lender or Servicer to manage or operate the Property or give Administrative Agent, Lender or Servicer any control over the Property; it being agreed that the obligation to manage and operate and the right to control the Property remains with Borrowers.  Borrowers agree that none of Administrative Agent, Lender and Servicer shall have any fiduciary obligations or trust obligations with respect to managing or operating the Property. Borrowers acknowledge and agree that the exercise of any rights and remedies by Administrative Agent and/or Lender under the Pledge and Security Agreement shall not be deemed to constitute any of Administrative Agent, Lender and Servicer as a lender in possession or a mortgagee in possession in respect of any or all of the Individual Properties. 

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ARTICLE 12

LIMITATION ON LIABILITY 

12.1General Limitation on Liability

.  Nothing contained in the Loan Documents shall be deemed to impair, limit or prejudice Administrative Agent’s and/or Lender’s rights (i) in foreclosure proceedings or in any ancillary proceedings brought to facilitate Administrative Agent’s foreclosure on the Property or any portion thereof or to exercise any specific rights or remedies afforded to Administrative Agent and/or Lender under any other provisions of the Loan Documents or by law, in equity or otherwise, subject to the non-recourse provisions set forth in Section 12.2 and Section 12.3, (ii) to recover under any guaranty given in connection with the Secured Obligations, or (iii) to pursue any personal liability of Borrowers and/or Guarantor under the Guaranty Agreement, the Environmental Indemnity Agreement or the ERISA indemnity provisions of Section 7.2.6.  Except as expressly set forth in this Article 12, the recourse of Administrative Agent and/or Lender with respect to the obligations evidenced by this Agreement and the other Loan Documents (except for the Guaranty Agreement and the Environmental Indemnity Agreement) shall be solely to the Property, Chattels, Intangible Personalty, the other Collateral and the Pledge Collateral.  For the avoidance of doubt, the matters set forth in Section 12.2 and Section 12.3 shall be fully recourse to Borrowers and Guarantor. For the avoidance of doubt, Administrative Agent acknowledges and agrees that all Loan Documents, including the Environmental Indemnity Agreement, are entered into by limited liability companies as Borrowers, and a corporation, as Guarantor, and Administrative Agent agrees that no member (other than Guarantor as a holder of indirect membership interests in each Borrower), or individual officer, partner, director, trustee, asset manager, employee, member, agent or other representative of Borrowers and Guarantor shall have any personal liability under the Loan Documents and the Environmental Indemnity Agreement in connection with the transaction contemplated by this Agreement.

12.2Loss Recourse Events

.  Notwithstanding anything to the contrary contained in this Agreement or any other Loan Document, nothing shall be deemed in any way to impair, limit or prejudice the rights of Administrative Agent and/or Lender to collect or recover from Borrowers (but, without limiting the obligations of Guarantor under the Loan Documents, not any member of any Borrower), from Cross-Collateralized Borrowers under the Affiliate Guaranty (Portfolio Borrowers), and/or from Guarantor under the Guaranty Agreement the amount of: 

(i)any Losses incurred or sustained by Administrative Agent and/or Lender as a result of physical waste by any Borrower;

(ii)any Capital Proceeds neither turned over to Administrative Agent nor applied or used in accordance with the terms of this Agreement or the other Loan Documents;

(iii)any Gross Revenue generated by the Property collected by or for any Borrower (including, without limitation, any Excess Foreclosure Proceeds) that is (a) not properly applied to the reasonable operating expenses of the Property (including payments due under the Notes and/or this Agreement and other sums due under the Loan Documents) following an Event of Default or during any Cash 

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Management Period, (b) not deposited into the Deposit Account, (c) not deposited into the Excess Foreclosure Proceeds Reserve pursuant to and in accordance with Section 4.4, (d) not deposited otherwise with Administrative in reserve as and when required pursuant to any of the Loan Documents, (d) disbursed to Borrowers from the Deposit Account or any such reserve and not thereafter applied for the purposes for which such funds were disbursed in accordance with this Agreement or any of the other Loan Documents, or (e) otherwise misappropriated by Borrowers in violation of the provisions of the Loan Documents;

(iv)any (a) Gross Revenue or other amounts paid under Leases that are prepaid more than one (1) month in advance, and (b) security deposits collected by or for any Borrower and that are not applied in accordance with the applicable Leases and are not returned to Tenants in accordance with such applicable Leases, in both cases, to the extent not turned over to (I) Administrative Agent upon foreclosure (whether judicial, non-judicial, or by power of sale) or a receivership sale, or conveyance in lieu of foreclosure, or (II) a receiver or trustee for the applicable Individual Property after the appointment of such receiver or trustee;

(v)any accrued Property Impositions and/or utility charges affecting the Property (whether or not the same have been billed to Borrowers) that are either unpaid by Borrowers or advanced by Administrative Agent and/or Lender under this Agreement, except to the extent that the Gross Revenue (for the twelve (12) months prior to Borrowers’ failure to make any such payments) is insufficient to pay such accrued Property Impositions and/or utility charges affecting the Property, to the extent Administrative Agent has received funds in a reserve or impound that is expressly set aside for payment of such Property Impositions affecting the Property (except to the extent that Administrative Agent’s access to such funds is restricted or constrained by applicable law, injunction or court order), or to the extent that such Property Impositions and/or utility charges accrue after the Termination Date with respect to the applicable Individual Property;

(vi)any Losses incurred or sustained by Administrative Agent and/or Lender in fulfilling the obligations of any Borrower, as lessor, under any Lease;

(vii)any Losses incurred or sustained by Administrative Agent and/or Lender (that would otherwise be covered by insurance) as a result of Borrowers’ failure to maintain any insurance required under the terms of any Loan Document, except to the extent that the Gross Revenue (for the twelve (12) months prior to such failure) is insufficient to pay such premiums (following the payment of the accrued Property Impositions and/or utility charges affecting the Property described in subsection (v) above), or to the extent Administrative Agent has received funds in a reserve or impound that is expressly set aside for payment of such insurance premiums (except to the extent that Administrative Agent’s access to such funds is restricted or constrained by applicable law, injunction or court order);

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(viii)any Losses incurred or sustained by Administrative Agent and/or Lender as a result of any fraud, misrepresentation, gross negligence or willful misconduct by Borrowers, Guarantor or any of their respective Affiliates or any representative, officer, director, partner, manager, member, shareholder, or trustee of Borrowers, Guarantor or any their respective Affiliates in connection with the Term Sheet or otherwise in connection with the Property, this Agreement or the other Loan Documents (including any ongoing financial or other reporting required pursuant to Section 7.1.6 or any request for action, approval or consent by Administrative Agent and/or Lender);

(ix)any Losses incurred or sustained by Administrative Agent and/or Lender as a result of any Mechanic’s Lien against or encumbering any Individual Property;

(x)any Losses incurred or sustained by Administrative Agent and/or Lender as a result of the failure to pay any recording, stamp, intangible or filing taxes, fees or charges (or any payments in lieu thereof) due in connection with the recordation or filing of the Security Instruments or the execution and delivery of the Notes, the Security Instruments, this Agreement, or any other Loan Document;

(xi)any Losses incurred or sustained by Administrative Agent and/or Lender as a result of any Borrower’s failure to, at all times, be a Single Purpose Entity.  For the avoidance of doubt, the recourse described in this clause (xii) shall not preclude recourse for substantive consolidation, as set forth in Section 12.3(vi)); 

(xii)any transfer taxes or other fees, charges or amounts in the nature of transfer taxes imposed upon Administrative Agent and/or Lender in connection with a foreclosure or other exercise of remedies upon or against any Individual Property or the recording of a deed in lieu of foreclosure or other similar instrument in lieu of a foreclosure upon or against any Individual Property; 

(xiii)any Losses suffered by Administrative Agent and/or Lender as a result of Borrowers’ making any REIT Distributions in accordance with Section 3.4.2(I), provided that the amount of such Losses shall not exceed the amount of such REIT Distributions made to Borrowers under Section 3.4.2(I), which amounts would have been deposited into the Excess Cash Subaccount for application pursuant to this Agreement if such REIT Distributions were not permitted under Section 3.4.2(I); and 

(xiv)following the consummation of a foreclosure sale, an assignment in lieu of foreclosure or any other enforcement action, in each case, with respect to the Pledge Collateral, any Losses suffered by Administrative Agent and/or Lender as a result of the denial of any claim against any owner’s title insurance policy for any Individual Property due to the imputation of the knowledge of any Borrower Owner Person to Administrative Agent and/or Lender (or Administrative Agent’s and/or Lender’s nominee or designee).

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12.3Springing Recourse Events

.  Notwithstanding anything to the contrary contained in this Agreement or any other Loan Document, the agreement contained in Section 12.1 to limit the personal liability of Borrowers to Borrowers’ interest in the Property, Chattels, Intangible Personalty, other Collateral and the Pledge Collateral shall become null and void and be of no further force and effect, and Borrowers and Guarantor shall be personally liable for the repayment of the Secured Obligations in the event:  

(i)of any breach or violation of Section 7.2.3(A) or Article 8;

(ii)that Borrowers forfeit all or any portion of the Property or other Collateral due to criminal activity pursuant to the operation or enforcement of any Legal Requirement or the decision of any Governmental Authority;

(iii)of any attempt (other than a good faith assertion, as an affirmative defense to foreclosure, that Borrowers have paid any and all amounts then due under the Loan Documents, in each case, made on a sound legal and factual basis, based upon detailed third-party documented evidence demonstrating that Borrowers have actually paid all such amounts) by any Borrower, Guarantor, any Cross-Collateralized Borrowers, or any other Borrower Owner Person to materially delay any foreclosure against any Individual Property, Chattels, Intangible Personalty, other Collateral, and or any Pledge Collateral, or any other exercise by Administrative Agent and/or Lender of Administrative Agent’s and/or  Lender’s remedies under the Loan Documents, including any claim that any Loan Document is invalid or unenforceable to an extent that would preclude any such foreclosure or other exercise of remedies;

(iv)that (a) any Borrower files a voluntary petition under the Bankruptcy Code or any other Bankruptcy Law, (b) the Property or any part thereof shall become an asset in (1) a voluntary bankruptcy or insolvency proceeding or (2) an involuntary bankruptcy or insolvency proceeding that is not dismissed within ninety (90) days of filing (other than an involuntary bankruptcy or insolvency petition filed by or at the direction of Administrative Agent and/or Lender), or (c) any Borrower, Guarantor or any other Borrower Control Person (x) consents to or otherwise acquiesces in or joins in or fails to oppose (to the extent that a good faith defense is available to any Borrower or such other Person) any involuntary bankruptcy or insolvency petition filed against any Borrower (other than an involuntary bankruptcy or insolvency petition filed by or at the direction of Administrative Agent and/or Lender), or (y) solicits (or causes to be solicited) or colludes in the filing of any involuntary bankruptcy or insolvency petition against any Borrower (other than an involuntary bankruptcy or insolvency petition filed by Administrative Agent and/or Lender or at the request or direction of Administrative Agent and/or Lender);

(v)of the appointment (other than by or at the direction of Administrative Agent and/or Lender) of a receiver, trustee, or liquidator with respect to any Borrower or the Property or any part thereof; 

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(vi)that any Borrower is substantively consolidated with any Affiliate of Borrowers in a bankruptcy or similar proceeding; 

(vii)that this Agreement, any of the Security Instruments, or any of the other Loan Documents is deemed a fraudulent conveyance or preference or is otherwise deemed void pursuant to any principles limiting the rights of creditors, whether such claims, demands or assertions are made under any Bankruptcy Law, including under Sections 544, 547 or 548 of the Bankruptcy Code or under any applicable state fraudulent conveyance statutes or similar laws;

(viii)of any execution, amendment, modification, assignment or termination by Borrowers of any Lease to any Required Tenant or any execution, or subsequent amendment, modification, assignment or termination by Borrowers of any Lease for any space currently occupied by any Required Tenant, in each case in violation of the terms and provisions of this Agreement and the other Loan Documents

12.4Limitation on Personal Liability

.  For the avoidance of doubt, no member (other than Guarantor), or individual officer, partner, director, trustee, asset manager, employee, agent or other representative of Borrowers or Guarantor shall have any personal liability under the Loan Documents or the Environmental Indemnity. The liability of Borrowers and Guarantor shall be limited to actual losses and shall not include any claims for special, indirect, exemplary or consequential damages except to the extent Administrative Agent and/or Lender are required to make payment therefor to a third party. Notwithstanding the foregoing, this Section 12.4 shall in no way limit the obligations of Guarantor under the Guaranty Agreement and/or the Environmental Indemnity Agreement.

 

ADMINISTRATIVE AGENT

13.1Appointment; Authorization and Definitions.

 

(a)Administrative Agent is hereby appointed by each Lender as Administrative Agent under this Agreement and under each other Loan Document. The Lenders may replace the Administrative Agent from time to time, in each case, pursuant to and in accordance with the terms and provisions as set forth in the Co-Lender Agreement (as defined below).  The Administrative Agent shall provide prompt written notice to Borrowers and Guarantor of any such replacement. Each Lender hereby irrevocably authorizes Administrative Agent to enter into the Loan Documents for the benefit of Lender, to act as agent for Lender with full power and authority to collect and administer the Loan, to exercise (or refrain from exercising) on behalf of Lender all rights and remedies of Lender under the Loan Documents, to take such actions as Lender is obligated or entitled to take under the provisions of this Agreement and the other Loan Documents and to exercise such powers as are set forth herein or therein, together with such other powers as are reasonably incidental thereto.  Except as specifically otherwise provided 

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herein, Administrative Agent shall have the power to issue consents, approvals and waivers, determine compliance with the terms and conditions of the Loan Documents as to whether any document, item or matter is satisfactory or acceptable and enforce any rights and remedies available to any Lender under the Loan Documents, at law, in equity or otherwise.  Administrative Agent, in its management and administration of the Loan, or in connection with the exercise of any rights and remedies under the Loan Documents, at law, in equity or otherwise agrees to use the same diligence and care as customarily used by Administrative Agent with respect to loans held by Administrative Agent entirely for its own account.    

(b)Notwithstanding the use of the defined term “Administrative Agent,” it is expressly understood and agreed that Administrative Agent shall not have a fiduciary relationship or any fiduciary responsibilities to any Lender by reason of this Agreement or any of the other Loan Documents and that Administrative Agent is merely acting as the contractual representative of Lender.  In its capacity as Lender’s contractual representative, Administrative Agent (i) is a “representative” of Lender within the meaning of Section 9-105 of the Uniform Commercial Code and (ii) is acting as an independent contractor, the rights and duties of which are limited to those expressly set forth in this Agreement and the other Loan Documents.  Each Lender hereby agrees to assert no claim against Administrative Agent on any agency theory or any other theory of liability for breach of fiduciary duty, all of which claims each Lender hereby irrevocably waives.  No implied covenants, responsibilities, duties, obligations or liabilities shall be read into this Agreement or the other Loan Documents or otherwise exist against or with respect to Administrative Agent. 

(c)As used in this Agreement and each other Loan Document, the use of “Administrative Agent”, “Lender” and/or “Lenders” shall mean, in each case as applicable, the Administrative Agent, Lender and/or Lenders that are a party to this Agreement, each such other Loan Document, and the Co-Lender Agreement from time to time pursuant to the terms and provisions of this Agreement, each such other Loan Document, and the Co-Lender Agreement.  

13.2Reliance on Administrative Agent.  

All acts of and communications by Administrative Agent, as agent for Lender, shall be deemed legally conclusive and binding on Lender; and Borrowers or any third party (including any Governmental Authority) shall be entitled to rely on any and all communications or acts of Administrative Agent with respect to the exercise of any rights or remedies and the granting of any consent, waiver or approval on behalf of Lender in all circumstances where an action by Lender is required or permitted pursuant to this Agreement or the provisions of any other Loan Document or by applicable Laws without the right or necessity of making any inquiry of any individual Lender as to the authority of Administrative Agent with respect to such matter.  In no event shall any of the foregoing limit the rights or obligations of any Lender with respect to any other Lender pursuant to this Article 13.  Each Lender acknowledges and agrees for the benefit of Administrative Agent and Borrowers that Administrative Agent shall be, and Borrowers shall be entitled to communicate with Administrative Agent as, the exclusive representative of Lender on all matters relating to the Loan, this Agreement, and each of the other Loan Documents.

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13.3Powers.

Administrative Agent shall have and may exercise such powers under the Loan Documents as are delegated to Administrative Agent by the terms of the Loan Documents, together with such powers as are reasonably incidental thereto.  Each Lender agrees that any action taken by Administrative Agent pursuant to this Article 13 in accordance with this Agreement, together with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all Lenders.  Administrative Agent shall not be considered, or be deemed, a separate agent of Lender hereunder, but is, and shall be deemed, an Administrative Agent acting in its capacity as an Administrative Agent, exercising such rights and powers under the Loan Documents as are specifically delegated to Administrative Agent or which Administrative Agent is otherwise entitled to take hereunder.  Administrative Agent shall have no implied duties to Lender, or any obligation to Lender to take any action, except any action specifically provided by the Loan Documents to be taken by Administrative Agent. 

 

13.4Rights as a Lender.

If at any time Administrative Agent is a Lender, then, Administrative Agent, in its capacity as a Lender, shall have the same rights, powers and obligations hereunder and under each other Loan Document as any Lender and may exercise the same as though it were not Administrative Agent, and the term “Lender” or “Lenders” shall, unless the context otherwise indicates, include Administrative Agent in its individual capacity.  Borrowers and each Lender acknowledge and agree that Administrative Agent, any Lender and/or their respective Affiliates may accept deposits from, lend money to, hold other investments in, and generally engage in any kind of banking, trust, debt, equity, advisory or other transaction or have other relationships, in addition to those contemplated by this Agreement or any other Loan Document, with Borrowers, Guarantor and any Affiliate of Borrowers or Guarantor.  Each Lender acknowledges that pursuant to such activities, Administrative Agent named herein and its Affiliates may receive information regarding Borrowers, Guarantor and their respective Affiliates (including information that may be subject to confidentiality obligations in favor of Borrowers, Guarantor and such Affiliates), and acknowledge and agree that Administrative Agent named herein and its Affiliates shall be under no obligation to provide such information to any Lender.

 

13.5Employment of Agents and Advisors.

 

(a)Administrative Agent may undertake or execute any of its duties hereunder and under any other Loan Document by or through its directors, officers, shareholders, members, partners, managers, employees, agents, affiliates and attorneys in fact and neither Administrative Agent nor any of the foregoing shall have any liability hereunder, except for any liability caused solely and directly by the gross negligence or willful misconduct of Administrative Agent as determined by a final decision of a court of competent jurisdiction.   

(b)Administrative Agent shall be entitled to rely upon any certification, notice, consent, resolution, certificate, affidavit, letter, e-mail, telegram, statement, paper, document or other communication believed by it to be genuine and correct and to have 

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been signed or sent by or on behalf of the proper Person or Persons, and to rely upon the advice of consultants (including accountants and other experts) selected by Administrative Agent. 

(c)Administrative Agent shall not have any liabilities or responsibilities to any Person on account of the failure of any Lender to perform its obligations hereunder or under any other Loan Document or to any Lender on account of the failure of such Person or any other Lender to perform its obligations under this Agreement or under any other Loan Document. 

13.6No Responsibility for Loans, Recitals, Etc.

Neither Administrative Agent nor any of its directors, officers, agents, shareholders, members, partners, managers, employees, attorneys-in-fact or Affiliates shall be responsible or liable for or have any duty to ascertain, inquire into, or verify (a) any recital, statement, warranty or representation made under or in connection with any Loan Document or any borrowing thereunder; (b) the performance or observance of any of the covenants or agreements of any party to any Loan Document, including, without limitation, any agreement by an obligor to furnish information directly to each Lender; (c) the satisfaction of any condition specified herein or in any other Loan Document; (d) the validity, effectiveness, genuineness or enforceability of any Loan Document or any other instrument or writing furnished in connection therewith; or (e) the value, sufficiency, creation, perfection or priority of any interest in any collateral security.

 

13.7No Representations; Lender Credit Decisions.

(a)Each Lender acknowledges and agrees that Administrative Agent has not made any representations or warranties, express or implied, with respect to any aspect of the Loan, including, without limitation (i) the existing or future solvency or financial condition or responsibility of Borrowers and Guarantor, (ii) the payment or collectability of the Loan, (iii) the validity, enforceability or legal effect of the Loan Documents, the Title Policy or the surveys furnished by Borrowers, or (iv) the validity or effectiveness of the Liens created by the Security Instruments or the other security interests contemplated by the Loan Documents.

(b)Each Lender has made or caused to be made an independent investigation of the Property, Borrowers and Guarantor and their creditworthiness, and all other matters affecting its decision to enter into the Loan Documents.  Each Lender acknowledges that Administrative Agent or its Affiliates is (or may be) a lender to the Guarantor or its Affiliates under other credit facilities and as a result may from time to time have information regarding the Guarantor or its Affiliates that is not (and will not be made) available to Lenders under the Loan.  Each Lender acknowledges that notwithstanding the fact that Administrative Agent may have made available to it certain information contained in Administrative Agent’s files and certain memoranda prepared by Administrative Agent for its general use with respect to the Loan, Administrative Agent has made no representations or warranties, oral or written, upon which any Lender has relied or is entitled to rely and no Lender has relied in any manner upon any such materials which may have been made available to it by Administrative Agent or upon any judgment, 

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determination or statements of Administrative Agent in entering into this Agreement or the other Loan Documents. 

(c)Each Lender acknowledges that it has, independently and without reliance upon Administrative Agent or any other Lender, and based on the financial statements and other information prepared by or on behalf of Borrowers or Guarantor and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and the other Loan Documents.  Each Lender also acknowledges and agrees that it will, independently and without reliance upon Administrative Agent, or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement and the other Loan Documents.  Except for notices, reports and other documents and information actually received by Administrative Agent and expressly required to be furnished to Lender by Administrative Agent, Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the affairs, business, prospects, operations, properties, financial and other condition or creditworthiness of Borrowers, Guarantor, any other Person, any asset manager or any Affiliate thereof which may come into the possession of Administrative Agent or any of its Affiliates.  Administrative Agent shall not be required to file this Agreement, any other Loan Document, or any document or instrument referred to herein or therein, for record or give notice of this Agreement, any other Loan Document, or any document or instrument referred to herein or therein, to any Person. 

13.8No Relation.

The relationship between Administrative Agent and Lender, and the relationship among Lender, is not intended by the parties to create, and shall not create, any trust, joint venture or partnership relation between them.

 

13.9Amendments Concerning Agency Functions.

Notwithstanding anything to the contrary contained in this Agreement, Administrative Agent shall not be bound by any waiver, amendment, supplement or modification of this Agreement or any other Loan Document that affects the duties, rights, and/or obligations of the Administrative Agent under this Agreement or any other Loan Document, unless Administrative Agent shall have consented to any such waiver, amendment, supplement or modification in writing.

 

13.10No Third Party Beneficiary.

The provisions of this Article 13 are solely for the benefit of Administrative Agent and Lender, and neither Borrower nor any other party shall have any rights as a third party beneficiary of any of the provisions hereof.

 

13.11Co-Lender Agreement.

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Borrowers  acknowledge  that  Administrative Agent and  any  other  Lender  hereunder  may  from  time  to  time  enter  into  one  or  more  agreements  (any  such  agreement  as  the same may be modified, amended, restated supplemented or replaced from time to time, a “Co-Lender Agreement”) governing the relationship among Lender with respect to the Loan and the Loan Documents.  Any such Co-Lender Agreements are intended solely for the benefit of Administrative Agent and Lender, and the Borrowers acknowledge that none of Borrowers, any Guarantor, and any Affiliate of Borrowers or any Guarantor is an intended third-party beneficiary of any Co- Lender Agreement and shall not be entitled to rely on any of the terms or provisions contained therein.  Neither Administrative Agent nor any Lender shall have any obligation to provide a copy of any Co-Lender Agreement to Borrowers, any Guarantor or any Affiliate of Borrowers or any Guarantor or to otherwise disclose to Borrowers or any other such party the contents of any Co-Lender Agreement.

 

13.12Modifications to This Article 13.  

Borrowers, Administrative Agent and Lender acknowledge and agree that, the provisions of this Article 13 govern the relationship among Lender and Administrative Agent and, except as expressly set forth in Sections 13.1(c) and 13.2, do not alter or otherwise modify the provisions of this Agreement and the other Loan Documents applicable to Borrowers or otherwise apply to Borrowers.  The provisions of this Article 13 may be amended or modified without Borrowers’ consent so long as such amendments or modifications do not alter any of Borrowers’ rights or obligations under this Agreement or any of the other Loan Documents or otherwise alter the terms of the Loan or the Loan Documents in any manner. 

 

13.13Conflicts

To the extent of any conflict between this Article 13 and any co-lender agreement, the terms and conditions of such co-lender agreement shall govern and control the rights and obligations of the Administrative Agent and Lender, as between or among such parties, as provided therein.

 

[End of text.  Signatures appear on the following pages.]

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, by their duly authorized representatives, all as of the day and year first above written.

	
 
	
ADMINISTRATIVE AGENT:

AIG ASSET MANAGEMENT (U.S.), LLC, a Delaware limited liability company, as Administrative Agent

By: /s/ Michael Medvin__________________

Name: Michael Medvin

Title:   Managing Director

 

LENDER:

	
 
	
AMERICAN GENERAL LIFE INSURANCE COMPANY, a Texas corporation

	
 
	
By:AIG Asset Management (U.S.), LLC, a Delaware limited liability company, its investment advisor

	
 
	
By:_/s/ Michael Medvin________________

	
 
	
Name:  Michael Medvin

	
 
	
Title:Managing Director

	
 
	
 

	
 
	
THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK, a New York corporation

	
 
	
By:AIG Asset Management (U.S.), LLC, a Delaware limited liability company, its investment advisor

	
 
	
By:_/s/ Michael Medvin________________

	
 
	
Name:  Michael Medvin

	
 
	
Title:Managing Director

 
THE VARIABLE ANNUITY LIFE INSURANCE COMPANY, a Texas corporationBy:AIG Asset Management (U.S.), LLC, a Delaware limited liability company, its investment advisorBy:_/s/ Michael Medvin______________Name:  Michael MedvinTitle:Managing  Director
 

153758634 Loan Agreement (CT/NJ Loan) - GTJ Portfolio Refinancing - AIG

 

 

 

 

153758634 Loan Agreement (CT/NJ Loan) - GTJ Portfolio Refinancing - AIG

 

BORROWERS:

WU/LH 470  BRIDGEPORT L.L.C., a Delaware limited liability company
GWL 4 MEADOW LLC, a Delaware limited liability company
WU/LH 12 CASCADE L.L.C., a Delaware limited liability company
WU/LH 15 EXECUTIVE L.L.C., a Delaware limited liability company
WU/LH 25 EXECUTIVE L.L.C., a Delaware limited liability company
WU/LH 35 EXECUTIVE L.L.C., a Delaware limited liability company
WU/LH 269 LAMBERT L.L.C., a Delaware limited liability company
Wu/LH 22 Marsh Hill L.L.C., a Delaware limited liability company
GWL 777 BROOK LLC, a Delaware limited liability company
GWL PLATT LLC, a Delaware limited liability company
WU/LH 100 AMERICAN L.L.C., a Delaware limited liability company
WU/LH 200 AMERICAN L.L.C., a Delaware limited liability company
WU/LH 400 AMERICAN L.L.C., a Delaware limited liability company

 

By: GTJ Realty, LP, a Delaware limited partnership,

       on behalf of each of the above named Borrowers as their sole member

 

        By:  GTJ GP, LLC, a Maryland limited liability company,

                its general partner

 

                By:  GTJ REIT, Inc., a Maryland real estate investment trust,

            its sole member

 

          By:      _/s/ Paul A. Cooper_______________________

          Name: Paul A. Cooper

          Title:   CEO 

 

 

STATE OF ______________)

) ss.:

COUNTY OF _____________)

On the ____ day of ___________ in the year 2022 before me, the undersigned, a Notary Public in and for said [State/Commonwealth], personally appeared, Paul A. Cooper, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her capacity, and that by his/her signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

_____________________________________________

(Signature and office of individual taking acknowledgment.)

Notary Public

My Commission Expires:

 

153758634 Loan Agreement (CT/NJ Loan) - GTJ Portfolio Refinancing - AIG

 

JOINDER OF SERVICER

The undersigned Servicer hereby executes this Joinder of Servicer in order to (1) acknowledge Lender’s security interest in the Account Collateral; (2) indicate Servicer’s agreement to be bound by (and comply with) the terms set forth in Article 3 (including the obligations of Servicer to hold and disburse the Account Collateral in accordance therewith), Article 4, and Article 5.

SERVICER:

CBRE Loan Services, Inc. 

 

 

By:_/s/ Christopher D. Gaas____________

Name: Christopher D. Gaas

Title:   Vice President

STATE OF ______________)

) ss.:

COUNTY OF _____________)

On the ____ day of July in the year 2022 before me, the undersigned, a Notary Public in and for said [State/Commonwealth], personally appeared, Christopher D. Gaas, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her capacity, and that by his/her signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

_____________________________________________

(Signature and office of individual taking acknowledgment.)

Notary Public

My Commission Expires:

 

 

153758634 Loan Agreement (CT/NJ Loan) - GTJ Portfolio Refinancing - AIGck1368757-ex103_65.htm

 

                                                                                                                              EXHIBIT 10.3

FIRST AMENDMENT TO FIRST AMENDED AND RESTATED CREDIT AGREEMENT, Note Assumption, Consolidation and Modification Agreement and AMENDMENT TO OTHER LOAN DOCUMENTS

THIS FIRST AMENDMENT TO FIRST AMENDED AND RESTATED CREDIT AGREEMENT, NOTE ASSUMPTION, CONSOLIDATION AND MODIFICATION AGREEMENT AND AMENDMENT TO OTHER LOAN DOCUMENTS (this “Amendment”), is made as of August 5, 2022, by and among GTJ REALTY, LP, a Delaware limited partnership (“Borrower”), GTJ REIT, INC., a Maryland corporation (“REIT”), GTJ GP, LLC, a Maryland limited liability company (“GP”), GWL 110 OLD COUNTY LLC, a Delaware limited liability company (“Old County”), GWL WINDSOR LAND LLC, a Delaware limited liability company (“Windsor Land”), 23-85 87TH STREET, LLC, a New York limited liability company (“87th Street”), 612 WORTMAN AVENUE, LLC, a New York limited liability company (“Wortman”; and together with 87th Street, collectively, the “Joining NY Guarantors” and each, a “Joining NY Guarantor”), WU/LH 950 BRIDGEPORT L.L.C., a Delaware limited liability company (“Bridgeport”; and together with the Joining NY Guarantors, collectively, the “Joining Guarantors” and each, a “Joining Guarantor”; and REIT, GP, Old County, Windsor Land and the Joining Guarantors are hereinafter referred to individually and collectively as “Guarantor”), KEYBANK NATIONAL ASSOCIATION, a national banking association (“KeyBank”), the other lending institutions from time to time a party to the Credit Agreement described below (together with KeyBank, the “Lenders”), and KEYBANK NATIONAL ASSOCIATION, a national banking association, as Agent for the Lenders (in such capacity, the “Agent”).

W I T N E S S E T H:

WHEREAS, Borrower, Agent, KeyBank and the other Lenders are parties to that certain First Amended and Restated Credit Agreement dated as of October 22, 2021 (the “Credit Agreement”), which Credit Agreement amended and restated in its entirety the Existing Credit Agreement (as defined in the Credit Agreement);

WHEREAS, Borrower executed and delivered to the Agent that certain Assignment of Interests dated as of December 2, 2015 (as the same has been varied, extended, supplemented, consolidated, amended, replaced, renewed, modified or restated prior to the effectiveness of this Amendment, including, without limitation, pursuant to that Omnibus Amendment to Loan Documents dated as of October 22, 2021 among Borrower, certain of the Guarantors and Agent (the “Omnibus Amendment”), the “Assignment of Interests”);

WHEREAS, Guarantor executed and delivered to Lender that certain Unconditional Guaranty of Payment and Performance dated as of December 2, 2015 (as the same has been varied, extended, supplemented, consolidated, amended, replaced, renewed, modified or restated prior to the effectiveness of this Amendment, including, without limitation, pursuant to the Omnibus Amendment, the “Guaranty”);

WHEREAS, Borrower and Guarantor executed and delivered to the Agent that certain Indemnity Agreement Regarding Hazardous Materials dated as of December 2, 2015 (as the same has been varied, extended, supplemented, consolidated, amended, replaced, renewed, modified or 

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restated prior to the effectiveness of this Amendment, including, without limitation, pursuant to the Omnibus Amendment, the “Indemnity Agreement”);

WHEREAS, Borrower, Agent and KeyBank, as “Depository” thereunder, entered into that certain Cash Collateral Agreement dated as of December 2, 2015 (as the same has been varied, extended, supplemented, consolidated, amended, replaced, renewed, modified or restated prior to the effectiveness of this Amendment, including, without limitation, pursuant to the Omnibus Amendment, the “Cash Collateral Agreement”);

WHEREAS, Borrower and Guarantor entered into that certain Contribution Agreement dated as of December 2, 2015 (as the same has been varied, extended, supplemented, consolidated, amended, replaced, renewed, modified or restated prior to the effectiveness of this Amendment, including, without limitation, pursuant to the Omnibus Amendment, the “Contribution Agreement”);

WHEREAS, Borrower and Guarantor have requested that the Lenders modify the Credit Agreement and certain of the other Loan Documents in certain respects, including, without limitation, by including that certain Real Estate described on Schedule 2 attached hereto (collectively, the “New York Mortgaged Properties”), each owned by a Joining NY Guarantor, as Mortgaged Properties under the Credit Agreement, which New York Mortgaged Properties are currently encumbered by the mortgages listed and described on Schedule 2 attached hereto (each an “ Assigned Mortgage” and collectively, the “Assigned Mortgages”), each securing indebtedness of the applicable Joining NY Guarantor in the aggregate principal amount set forth on Schedule 2 attached hereto, which indebtedness is evidenced by the corresponding promissory note(s) listed and described on Schedule 2 attached hereto (each, as “Assigned Note” and collectively, whether one or more, the “Assigned Notes”; and such aggregate outstanding indebtedness evidenced by the Assigned Notes, the “Assigned Indebtedness”), which Assigned Notes shall, upon the effectiveness hereof, (i) be irrevocably assigned in full by the holders thereof to the Agent (for the benefit of the Revolving Credit Lenders), (ii) have the Joining NY Guarantors removed as an obligor under such Assigned Notes, (iii) have Borrower added as the primary obligor to the Assigned Notes, and (iv) be consolidated with the indebtedness evidenced by the Revolving Credit Notes (as defined in the Credit Agreement) (the “Original Revolving Credit Notes”; and such aggregate indebtedness evidenced by the Original Revolving Credit Notes, the “Original Indebtedness”) into a consolidated indebtedness in the aggregate original principal amount of up to $40,000,000.00 (the “Consolidated Indebtedness”), and after Borrower shall have been added as an obligor to each Assigned Note, and the Assigned Indebtedness and the Original Indebtedness shall have been consolidated into the Consolidated Indebtedness, the Consolidated Indebtedness be split into new Consolidated, Amended and Restated Revolving Credit Notes for each of the Revolving Credit Lenders in the amounts of each Revolving Credit Lender’s Revolving Credit Commitment (such replacement Revolving Credit Notes evidencing such Consolidated Indebtedness, collectively, the “New Revolving Credit Notes”) in order to provide to each Lender a promissory note representing such Revolving Credit Lender’s portion of the Revolving Credit Commitment under the Credit Agreement (as amended hereby) in replacement of each such Revolving Credit Lender’s respective original Revolving Credit Note (as defined in the Credit Agreement); and

WHEREAS, the Agent and Lenders have agreed to such modifications on the terms and conditions set forth herein.

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NOW, THEREFORE, for and in consideration of the sum of Ten and No/100 ($10.00), the mutual covenants, promises, and agreements set forth hereinbelow, and for other good and valuable consideration, the receipt, adequacy, and sufficiency of which are hereby acknowledged, the parties do hereby covenant and agree as follows:

1.Definitions.  Capitalized terms used in this Amendment, but which are not otherwise expressly defined in this Amendment, shall have the respective meanings given thereto in the Credit Agreement (as amended hereby).

2.Modifications of the Credit Agreement.  The Borrower, Agent and the Lenders do hereby modify and amend the Credit Agreement by deleting from the Credit Agreement the text that is shown as a deletion or strike-through in the form of the Credit Agreement attached hereto as Schedule 1 and made a part hereof (the “Amended Credit Agreement”), and by inserting in the Credit Agreement the text shown as an insertion or underlined text in the Amended Credit Agreement, such that from and after the Effective Date (as hereinafter defined) the Credit Agreement is amended to read as set forth in the Amended Credit Agreement.   From and after the Effective Date, the Credit Agreement shall be the Credit Agreement, as amended by this Amendment.

3.Joinder.  Each of the Joining Guarantors (each, a “Joining Party”) hereby acknowledges, agrees and confirms that, by its execution of this Amendment, such Joining Party hereby becomes a “Subsidiary Guarantor” and a “Guarantor” under the Credit Agreement, the Guaranty, the Indemnity Agreement, and the other Loan Documents with respect to all the Obligations of the Borrower now or hereafter incurred under the Credit Agreement and the other Loan Documents, a “Guarantor” under the Contribution Agreement, and an “Assignor” under the Cash Collateral Agreement.  Each Joining Party agrees that such Joining Party is and shall be bound by, and hereby assumes, all representations, warranties, covenants, terms, conditions, duties and waivers applicable to a “Subsidiary Guarantor” and a “Guarantor” under the Credit Agreement, the Guaranty, the Indemnity Agreement, the other Loan Documents and the Contribution Agreement, and an “Assignor” under the Cash Collateral Agreement.  Each Joining Party represents and warrants to the Agent that, as of the Effective Date (as defined below), the representations and warranties contained in the Credit Agreement and the other Loan Documents applicable to a “Subsidiary Guarantor” or “Guarantor”, and an “Assignor” under the Cash Collateral Agreement, are true and correct in all material respects as applied to Joining Party as a Subsidiary Guarantor and a Guarantor on and as of the Effective Date as though made on that date.  As of the Effective Date, all covenants and agreements in the Loan Documents and the Contribution Agreement of the Guarantors apply to Joining Party and no Default or Event of Default shall exist or might exist upon the Effective Date in the event that Joining Party becomes a Guarantor.  Each Joining Party hereby agrees that, as of the Effective Date, the Guaranty, the Contribution Agreement, the Indemnity Agreement and the Cash Collateral Agreement heretofore delivered to the Agent and the Lenders shall be a joint and several obligation of Joining Party to the same extent as if executed and delivered by Joining Party, and upon request by the Agent, will promptly become a party to the Guaranty, the Contribution Agreement, the Indemnity Agreement and the Cash Collateral Agreement to confirm such obligation.

4.Modifications of the Assignment of Interests  The Borrower, Agent and the Lenders do hereby modify and amend the Assignment of Interests by adding the table set forth on Exhibit "A" attached to this Amendment and made a part hereof to the end of Exhibit "A" attached to the 

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Assignment of Interests.  Assignor and Agent hereby agree that the term “Company” and “Companies” as used in the Assignment of Interests shall include each of the Companies set forth on Exhibit “A” attached to this Amendment (each, an “Additional Company” and collectively, the “Additional Companies").  As security for the prompt payment and performance by Assignor (as defined in the Assignment of Interests) of the Secured Obligations (as defined in the Assignment of Interests), Assignor does hereby transfer, assign, pledge, convey, and grant to the Agent, and does hereby grant a security interest to the Agent in, all of Assignor’s right, title and interest in and to all “Collateral” referred to in Section 2 of the Assignment of Interests with respect to each of the Additional Companies, and Assignor hereby agrees that from and after the date hereof the Additional Companies shall be deemed part of the “Companies” under the Assignment of Interests.

5.Modification of the Guaranty. Guarantor and Agent do hereby modify and amend the Guaranty by deleting in its entirety paragraph (a) of the preamble to the Guaranty, appearing on the first (1st) page thereof, and inserting in lieu thereof the following:

“(a)the full and prompt payment when due, whether by acceleration or otherwise, either before or after maturity thereof, of the Revolving Credit Notes made by Borrower to the order of the Revolving Credit Lenders (as defined in the Credit Agreement) in the aggregate principal face amount of up to $40,000,000.00, and of the Term Loan Notes made by Borrower to the order of the Term Loan Lenders in the aggregate principal face amount of up to $50,000,000.00, and of the Swing Loan Note made by Borrower to the order of the Swing Loan Lender in the principal face amount of up to $10,000,000.00, together with interest as provided in the Revolving Credit Notes, the Term Loan Notes and the Swing Loan Note, and together with any replacements, supplements, renewals, modifications, consolidations, restatements, increases and extensions thereof; and”;

6.Reaffirmation of Security Documents; No Impairment.  Borrower hereby reaffirms as of the date hereof the Assignment of Interests and the Cash Collateral Agreement, each as amended hereby, and reaffirms the pledge and grant of the security interest in the respective Collateral therein described (including all Collateral with respect to the Additional Companies).  Without limiting the foregoing, the parties hereto hereby acknowledge and agree that this Amendment ratifies, renews and extends the Assignment of Interests and the Cash Collateral Agreement and the liens and security interests created thereby in their entirety, which liens and security interests continue in full force and effect from the original date such liens and security interests were granted without interruption, novation or discharge. Except as otherwise expressly provided herein, nothing herein contained shall in any way (a) impair or affect the validity and priority of the lien of the Security Documents (including, without limitation, the Assignment of Interests and the Cash Collateral Assignment); (b) alter, waive, annul or affect any provision, condition or covenant in the Loan Documents; or (c) affect or impair any rights, powers or remedies under the Loan Documents.

7.Note Assumption, Consolidation and Modification Agreement.  

(a)The Borrower, Guarantors, Agent and the Lenders hereby agree as follows, in the following order: 

(1)Release of Joining NY Guarantor as Obligors Under the Assigned Notes.  Borrower represents and warrants that the amount of the Assigned Indebtedness is as set 

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forth on Schedule 2 attached hereto.  On or prior to the date hereof, Borrower and Joining NY Guarantors have caused the holders of the Assigned Notes to irrevocably assign in full such Assigned Notes and the Assigned Indebtedness evidenced thereby to the Agent (in Agent’s capacity as the agent for the Revolving Credit Lenders), with payment for such Assigned Notes to the prior holders thereof having been made pursuant to an advance by the Revolving Credit Lenders of a Revolving Credit Loan to Borrower in the amount of the Assigned Indebtedness pursuant to the Amended Credit Agreement (the “Advance”), and such Assigned Notes and the Assigned Indebtedness evidenced thereby are now owned by Agent, for the benefit of the Revolving Credit Lenders.  Each Joining NY Guarantor is hereby released from its obligations arising from and after the Effective Date under the Assigned Note to which it is a party.  Notwithstanding the foregoing, each Joining NY Guarantor understands and acknowledges that, simultaneously herewith, each such Joining NY Guarantor is becoming a Guarantor under the Credit Agreement, the Guaranty and certain other Loan Documents and shall guarantee, inter alia, the payment in full of the Consolidated Indebtedness pursuant to the terms and conditions of the Guaranty. 

(2)Assumption of Assigned Notes by  Borrower.  Borrower is hereby made a party to each of the Assigned Notes, not as a surety but as a primary obligor, and Borrower agrees to pay the indebtedness and interest thereon at the rate of interest and on the terms set forth in the Assigned Notes.  In furtherance, and not in limitation, of the foregoing, Borrower hereby expressly assumes the unpaid balance due and owing on the Assigned Notes as set forth on Schedule 2, together with interest thereon as provided in the Assigned Notes, and together with all other monetary and non-monetary covenants, agreements and other obligations under such Assigned Notes, all with the same force and effect as if Borrower had been specifically named in the Assigned Notes as the original maker or borrower, as applicable.  The foregoing assumption by Borrower is absolute and unconditional and is not subject to any defenses, waivers, claims or offsets, nor may such assumption be affected or impaired by any agreement, condition, statement or representation of any Joining NY Guarantor or other borrower or any failure to perform the same, and Borrower hereby relinquishes, waives and releases any and all such defenses, claims, offsets, and causes of action.  Borrower hereby represents and warrants to the Agent and each Lender that there exists no defense, offset or counterclaim with respect to Borrower’s obligations under and of the Assigned Notes as set forth herein.

(3)Consolidation.  The Original Indebtedness and the Assigned Indebtedness are hereby consolidated into the Consolidated Indebtedness.  This Amendment shall not operate to discharge, satisfy, cancel, release or repay, or be deemed to be a substitution or novation of the Original Indebtedness or the Assigned Indebtedness heretofore evidenced by the Original Revolving Credit Notes and the Assigned Notes, respectively, and the Original Indebtedness and the Assigned Indebtedness, as consolidated into the Consolidated Indebtedness hereby, are hereby preserved, ratified and confirmed by the Borrower and Guarantors.

(4)New Revolving Credit Notes.  Borrower hereby acknowledges that it is indebted to each Revolving Credit Lender that is a payee under the Original Revolving Credit Notes in accordance with each such Revolving Credit Lender’s Original Revolving Credit Note, as same may be consolidated and modified hereby, and pursuant to the Credit Agreement.  The Original Revolving Credit Notes and the Assigned Notes, as consolidated and modified hereby, shall be, and hereby are, severed, split and divided into the New Revolving Credit Notes for each of the Revolving Credit Lenders in the amount of such Revolving Credit Lender’s Revolving 

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Credit Commitment. The Consolidated Indebtedness evidenced by the New Revolving Credit Notes constitutes the same outstanding principal indebtedness heretofore evidenced by the Original Revolving Credit Notes (which indebtedness includes the Advance made to finance the assignment of the Assigned Notes and the Assigned Indebtedness evidenced thereby to the Agent as provided in Section 7(a)(1) above), and the Assigned Notes and the New Revolving Credit Notes do not create or secure any new or further indebtedness.  The New Revolving Credit Notes consolidate, amend, restate, supersede and replace in all respects the Original Revolving Credit Notes and the Assigned Notes; however, such New Revolving Credit Notes are not intended to, and shall not be construed to, constitute a novation of indebtedness originally evidenced by the Original Revolving Credit Notes, the Credit Agreement or the other Loan Documents, or any of the obligations evidenced thereby. The Parties agree that nothing contained herein or in the instruments to be executed as herein provided shall be deemed to extinguish in any respect the indebtedness evidenced by the Original Revolving Credit Notes and the Assigned Notes.   For the avoidance of doubt, the parties hereby acknowledge and agree that the New Revolving Credit Notes shall be the “Revolving Credit Notes” referred to in the Credit Agreement, and Borrower shall pay the Consolidated Indebtedness evidenced thereby, together with all interest thereon, pursuant to and in accordance with the terms of such New Revolving Credit Notes, the Credit Agreement and the other Loan Documents.

(b)The Borrower, Guarantors, Agent and the Lenders hereby further agree as follows: 

(1)Mortgages. On the date hereof, Borrower and the Joining NY Guarantors have caused the holders of the Assigned Mortgages to irrevocably assign in full such Assigned Mortgages to the Agent and such Assigned Mortgages are now owned by Agent for the benefit of the Lenders. Each Joining NY Guarantor shall concurrently herewith execute and deliver to the Agent, for the benefit of the Lenders, an Amended and Restated Mortgage, Assignment of Leases and Rent, Security Agreement and Fixture Filing dated as of even date herewith (each, an “Amended and Restated Mortgage”, and collectively, the “Amended and Restated Mortgages”) in form and substance acceptable to the Agent, which Amended and Restated Mortgages shall amend, restate and supersede the Assigned Mortgages with respect to each of the New York Mortgaged Properties and shall be “Mortgages” under the Credit Agreement. Notwithstanding anything to the contrary contained herein or in the Amended and Restated Mortgages, it is the express intent of the parties that the Assigned Indebtedness evidenced by the Assigned Notes as secured by the Assigned Mortgages and the liens of said Assigned Mortgages shall continue in full force and effect and unimpaired by the consolidation and modifications set forth in this Amendment, the New Revolving Credit Notes and/or the Amended and Restated Mortgages, and the Amended and Restated Mortgages shall continue as security for such continuing obligations hereafter evidenced by the New Revolving Credit Notes.  

(2)Possible Future Severance and Assignment.  In connection with the release of any of the New York Mortgaged Properties pursuant to, and in accordance with, Sections 5.5 of the Credit Agreement (a “Released NY Property”), Agent shall, at the sole cost and expense of the Borrower and upon at least fifteen (15) business days’ prior written notice, agree to execute, for itself and on behalf of the Lenders, (i) any note severance agreement or similar instrument which is reasonably necessary to sever the outstanding principal balance of the Consolidated Indebtedness then secured by the Amended and Restated Mortgage attributable to such Released NY Property into a separate severed note in the same face principal amount, and an assignment of 

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such severed note to a person refinancing such indebtedness (an “Assignee Lender”), provided that (x) each Revolving Credit Lender’s New Revolving Credit Note shall continue in full force and effect unimpaired by any such severance and/or assignment, (y) Borrower and Guarantors shall execute and deliver to the Agent and the Lenders any additional agreements, instruments, notes or other documents reasonably required by the Agent to ratify and confirm the foregoing, and (z) Lenders shall, to the extent deemed reasonably necessary by Agent, join in the execution of any such note severance agreement or similar instrument contemplated by this clause (i), (ii) an assignment of the Amended and Restated Mortgage encumbering such Released NY Property to such Assignee Lender, and/or (iii) a release of the Amended and Restated Mortgage encumbering such Released NY Property; provided, in each case, that any such agreements, assignments, releases or other instruments executed by Agent pursuant to this Section 7(b)(2) shall be in form and substance reasonably acceptable to the Agent.  

(3)Mortgage Taxes.  Without limiting Borrower’s obligations under any of the Loan Documents, including, without limitation, Section 15 of the Credit Agreement, Borrower shall be solely responsible for paying any mortgage, recording, intangible, documentary stamp or other similar taxes, assessments or charges which are incurred or which the Agent otherwise reasonably determines to be payable with respect to any of the transactions contemplated by this Amendment, including, without limitation, the assignment of the Assigned Notes and/or the Assigned Mortgages to the Agent, the execution and delivery of this Amendment, the Amended and Restated Mortgages or the New Revolving Credit Notes, and/or any future severance, assignment, release or other modification of the Amended and Restated Mortgages, the New Revolving Credit Notes or any of the other Loan Documents. For the avoidance of any doubt, the provisions of Article 16 of the Credit Agreement (Indemnification) shall apply to this Amendment and the transactions contemplated hereby, including, without limitation, the assignment of the Assigned Notes and/or the Assigned Mortgages to the Agent, the execution and delivery of this Amendment, the Amended and Restated Mortgages or the New Revolving Credit Notes, and/or any future severance, assignment, release or other modification of the Amended and Restated Mortgages, the New Revolving Credit Notes or any of the other Loan Documents. The Agent and the Lenders are undertaking the transactions contemplated by this Section 7 solely as an accommodation to Borrower and Guarantor and it is expressly understood, acknowledged and agreed that the Agent and the Lenders are not making, and have not made or given, any representations, warranties, assurances or assertions, express or implied, with respect to any such taxes, assessments or other charges which are or may be incurred (or not incurred) in connection with any of the transactions contemplated by this Agreement.

8.Revolving Credit Commitments.  Borrower and Guarantors hereby acknowledge and agree that as of the Effective Date and following satisfaction of all conditions thereto as provided herein, the amount of each Lender’s Revolving Credit Commitment shall be the amount set forth on Schedule 1.1 attached hereto.  On the Effective Date, the outstanding principal balance of the Revolving Credit Loans shall be reallocated among the Revolving Credit Lenders such that the outstanding principal amount of Revolving Credit Loans owed to each Revolving Credit Lender shall be equal to such Revolving Credit Lender’s Revolving Credit Commitment Percentage of the outstanding principal amount of all Revolving Credit Loans.  The participation interests of the Revolving Credit Lenders in Swing Loans and Letters of Credit shall be similarly adjusted.  Each of those Revolving Credit Lenders whose Revolving Credit Commitment Percentage is increasing shall advance the funds to the Agent and the funds so advanced shall be distributed among the Revolving Credit Lenders whose Revolving Credit Commitment Percentage 

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is decreasing as necessary to accomplish the required reallocation of the outstanding Revolving Credit Loans.

9.References to Loan Documents.  All references in the Loan Documents to the Credit Agreement, the Assignment of Interests, the Guaranty, the Contribution Agreement, the Indemnity Agreement and the Cash Collateral Agreement shall be deemed a reference to the Assignment of Interests, the Guaranty, the Contribution Agreement, the Indemnity Agreement and the Cash Collateral Agreement as modified and amended herein or pursuant hereto.

10.Consent of Borrower and Guarantor.  By execution of this Amendment, Borrower and the Guarantor hereby expressly consent to the modifications and amendments relating to the Credit Agreement, the Assignment of Interests, the Guaranty, the Contribution Agreement, the Indemnity Agreement and the Cash Collateral Agreement as set forth herein or contemplated hereby and each and every modification or amendment of the Credit Agreement, the Assignment of Interests, the Guaranty, the Contribution Agreement, the Indemnity Agreement and the Cash Collateral Agreement prior to the date hereof, and Borrower and Guarantor hereby acknowledge, represent and agree that the Loan Documents, as expressly modified hereby and heretofore modified, and including without limitation the Guaranty, remain in full force and effect and constitute the valid and legally binding obligations of the Borrower and the Guarantor, respectively, enforceable against such Persons in accordance with their respective terms, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’  rights and general principles of equity, and that the Guaranty (as defined in the Credit Agreement) extends to and applies to the foregoing documents as modified and amended. 

11.Representations.  Borrower and Guarantor represent and warrant to the Agent and the Lenders as follows:

(a)Authorization.  The execution, delivery and performance of this Amendment, the Revolving Credit Notes and each of the other agreements or instruments executed in connection herewith and the transactions contemplated hereby and thereby (i) are within the authority of such Borrower and Guarantor, (ii) have been duly authorized by all necessary proceedings on the part of such Borrower and Guarantor, (iii) do not and will not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which such Borrower or Guarantor is subject or any judgment, order, writ, injunction, license or permit applicable to such Borrower or Guarantor, (iv) do not and will not conflict with or constitute a default (whether with the passage of time or the giving of notice, or both) under any provision of the partnership agreement or certificate, certificate of formation, operating agreement, articles of formation or other charter documents or bylaws of, or any mortgage, indenture, agreement, contract or other instrument binding upon, such Borrower or Guarantor or any of its properties or to which such Borrower or Guarantor is subject, (v) do not and will not result in or require the imposition of any lien or other encumbrance on any of the properties, assets or rights of such Borrower or Guarantor other than the liens and encumbrances created by the Loan Documents as amended hereby.

(b)Enforceability.  This Amendment, the Revolving Credit Notes and each of the other agreements or instruments executed in connection herewith to which Borrower or Guarantor is a party are the valid and legally binding obligations of Borrower and Guarantor 

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enforceable in accordance with the terms and provisions hereof, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and the effect of general principles of equity.

(c)Approvals.  The execution, delivery and performance of this Amendment, the Revolving Credit Notes and each of the other agreements or instruments executed in connection herewith and the transactions contemplated hereby and thereby do not require the approval or consent of any Person or the authorization, consent, approval of or any license or permit issued by, or any filing or registration with, or the giving of any notice to, any court, department, board, commission or other governmental agency or authority other than those already obtained and the filing of UCC financing statements in the appropriate records office with respect hereto.

(d)Reaffirmation.  Borrower and Guarantor hereby repeat and reaffirm all representations and warranties made by Borrower and Guarantor to the Agent in the Loan Documents on and as of the date hereof with the same force and effect as if such representations and warranties were set forth in this Amendment in full.  Borrower and Guarantor further reaffirm, represent and agree that, as of the date hereof, each and every representation and warranty made by the Borrower and Guarantor in the Loan Documents is true and correct in all material respects as of the date hereof, except to the extent of changes in factual circumstances which are expressly and specifically permitted by the Loan Documents (it being understood and agreed that any representation or warranty which by its terms is made by Borrower as of a specified date shall be required to be true and correct only as of such specified date).  

12.No Default.  By execution hereof, Borrower and Guarantor certify that Borrower and Guarantor are and will be in compliance with all covenants under the Loan Documents after the execution and delivery of this Amendment, and that no Default or Event of Default has occurred and is continuing.

13.Waiver of Claims.  Each of the Borrower and each Guarantor acknowledges, represents and agrees that it has no defenses, setoffs, claims, counterclaims or causes of action of any kind or nature whatsoever with respect to the Loan Documents, the administration or funding of the Loan or with respect to any acts or omissions of the Agent or any Lender, or any past or present officers, agents or employees of the Agent or any Lender, and the Borrower and each Guarantor does hereby expressly waive, release and relinquish any and all such defenses, setoffs, claims, counterclaims and causes of action, if any. Without limiting the foregoing, Borrower and Guarantors further acknowledge that neither the Agent nor any of the Lenders has assumed any obligations or liabilities under the Assigned Notes, the Assigned Mortgages or any of the other loan documents relating thereto (collectively, the “Assigned Loan Documents”). Each of Borrower and Guarantors represents, warrants, covenants and agrees that such Person has no defenses or offsets against any of the Assigned Indebtedness or any of the Assigned Loan Documents, hereby waives any right to claim any defenses or offsets against the Loans or any of the Loan Documents as a result thereof, and waives, releases, relinquishes and discharges the Agent and the Lenders from any and all claims, counterclaims, defenses, set-offs and causes of action, if any, relating to the Assigned Indebtedness and the Assigned Loan Documents.  

14.Ratification.  Except as hereinabove set forth, all terms, covenants and provisions of the Credit Agreement, Assignment of Interests, the Guaranty, the Contribution Agreement, the 

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Indemnity Agreement and the Cash Collateral Agreement remain unaltered and in full force and effect, and such Loan Documents as amended by this Amendment and the other documents executed and delivered in connection herewith, constitute the valid and legally binding obligation of the Borrower and Guarantor enforceable against Borrower and Guarantor in accordance with its respective terms.  The execution and delivery of this Amendment and the other documents executed in connection herewith does not constitute, and shall not be deemed to constitute, and there has not otherwise occurred or deemed to have occurred, a release, waiver, impairment or satisfaction of any Borrower’s or Guarantor’s obligations under the Loan Documents, and the parties hereto do hereby expressly ratify and confirm the Loan Documents and their respective obligations thereunder as modified and amended herein.  Nothing in this Amendment or in the other documents executed in connection herewith shall be deemed or construed to constitute, and there has not otherwise occurred, a novation, cancellation, satisfaction, release, impairment, extinguishment or substitution of the Obligations or the obligations of Borrower or any Guarantor under the Loan Documents.

15.Amendment as Loan Document.  This Amendment shall constitute a Loan Document.

16.Counterparts.  This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Amendment by signing any such counterpart.

17.Governing Law.  THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACTUAL OBLIGATION UNDER, AND SHALL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

18.Final Agreement.  This Amendment REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

19.Effective Date.  This Amendment shall be deemed effective and in full force and effect (the “Effective Date”) upon confirmation by the Agent of the satisfaction of the following conditions:

(a)the execution and delivery of this Amendment by Borrower, Guarantor, the Agent and the Lenders;

(b)the delivery to the Agent of the Assigned Notes and the Assigned Mortgages, together with such assignments, allonges and endorsements necessary to assign the same to the Agent as contemplated hereby, in each case, in form and substance reasonably acceptable to the Agent;

(c)the execution and delivery to the Agent of the New Revolving Credit Notes and the Amended and Restated Mortgages;  

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(d)receipt by the Agent and the Lenders of any documentation and other information requested by the Agent or any Lender to comply with its “know your customer” requirements and to confirm compliance with all applicable Sanctions Laws and Regulations, the United States Foreign Corrupt Practices Act and other Applicable Law, and if the Borrower qualifies as a “legal entity customer” within the meaning of the Beneficial Ownership Regulation, the Borrower shall have provided to the Agent (for further delivery by the Agent to the Lenders in accordance with its customary practice) a Beneficial Ownership Certification for the Borrower; in each case delivered at least five (5) Business Days prior to the Effective Date;

(e)the delivery to the Agent of a Compliance Certificate dated as of the Effective Date demonstrating compliance with each of the covenants calculated therein as of the most recent calendar quarter for which the Borrower has provided financial statements under §6.4 of the Amended Credit Agreement;

(f)the delivery to the Agent of an opinion of counsel to the Borrower and the Guarantor addressed to the Agent and the Lenders covering such matters as the Agent may reasonably request;

(g)receipt by the Agent of such other resolutions, certificates, documents, instruments and agreements as the Agent may reasonably request; and

(h)the Borrower shall have paid the fees and expenses of the Agent in connection with this Amendment and the matters addressed herein.

20.Interest.

  All interest accrued under the Credit Agreement prior to the Effective Date shall be due and payable upon the next Interest Payment Date at the rate provided in the Credit Agreement prior to the Effective Date. 

21.Electronic Signatures.  Delivery of an executed counterpart of a signature page to this Amendment by facsimile or as an attachment to an electronic mail message in .pdf, .jpeg, .TIFF or similar electronic format shall be effective as delivery of a manually executed counterpart of this Amendment for all purposes.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Amendment and any other Loan Document to be signed in connection with this Amendment, the other Loan Documents and the transactions contemplated hereby and thereby shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided that nothing herein shall require the Agent to accept electronic signatures in any form or format without its prior written consent.  For the purposes hereof, “Electronic Signatures” means an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record.  Each of the parties hereto represents and warrants to the other parties hereto that it has the corporate capacity and authority to execute the Amendment through electronic means and there are no restrictions for doing so in that party’s constitutive documents.  Without limiting the generality of the foregoing, each of Borrower and 

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Guarantor hereby (i) agrees that, for all purposes, including without limitation, in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among any of the Agent or the Lenders and any of Borrower or Guarantor, electronic images of this Agreement or any other Loan Document (in each case, including with respect to any signature pages thereto) shall have the same legal effect, validity and enforceability as any paper original, and (ii) waives any argument, defense or right to contest the validity or enforceability of any Loan Document based solely on the lack of paper original copies of such Loan Document, including with respect to any signature pages thereto.

[Remainder of this page intentionally left blank]

 

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IN WITNESS WHEREOF, the parties hereto, acting by and through their respective duly authorized officers and/or other representatives, have duly executed this Amendment, under seal, as of the day and year first above written.

BORROWER:

 

	
	
GTJ REALTY, LP, a Delaware limited partnership

By:GTJ GP, LLC, a Maryland limited liability company, its general partner

By:GTJ REIT, Inc., a Maryland corporation, its sole member

By: /s/ Paul A. Cooper
Name: Paul A. Cooper
Title: CEO

 

GUARANTOR:

GTJ GP, LLC, a Maryland limited liability company

	
 
	
By:
	
GTJ REIT, Inc., a Maryland corporation, its sole member

By: /s/ Paul A. Cooper
Name: Paul A. Cooper
Title: CEO

 

GTJ REIT, INC., a Maryland corporation 

By:/s/ Paul A. Cooper
Name:Paul A. Cooper
Title:CEO

 

 [Signatures Continued on Next Page]

Signature Page to First Amendment to First Amended and Restated Credit Agreement 

and Amendment to Other Loan Documents – KeyBank/GTJ

 

 

	
GWL 110 OLD COUNTY LLC, a Delaware limited liability company

By:GTJ REALTY, LP, a Delaware limited partnership, its sole member and manager

By:GTJ GP, LLC, a Maryland limited liability company, its general partner

By:GTJ REIT, Inc., a Maryland corporation, its sole member

By: /s/ Paul A. Cooper

Name: Paul A. Cooper

Title: CEO

	
(SEAL)

GWL WINDSOR LAND LLC, a Delaware limited liability company

By:GTJ REALTY, LP, a Delaware limited partnership, its sole member and manager

By:GTJ GP, LLC, a Maryland limited liability company, its general partner

By:GTJ REIT, Inc., a Maryland corporation, its sole member

By: /s/ Paul A. Cooper

Name: Paul A. Cooper

Title: CEO

(SEAL)

 

[Signatures Continued on Next Page]

 

 

 

 

 

Signature Page to First Amendment to First Amended and Restated Credit Agreement 

and Amendment to Other Loan Documents – KeyBank/GTJ

 

 

 

	
23-85 87TH STREET, LLC, a New York limited liability company

By:GTJ REALTY, LP, a Delaware limited partnership, its sole member and manager

By:GTJ GP, LLC, a Maryland limited liability company, its general partner

By:GTJ REIT, Inc., a Maryland corporation, its sole member

By: /s/ Paul A. Cooper

Name: Paul A. Cooper

Title: CEO

	
(SEAL)

612 WORTMAN AVENUE, LLC, a New York limited liability company

By:GTJ REALTY, LP, a Delaware limited partnership, its sole member and manager

By:GTJ GP, LLC, a Maryland limited liability company, its general partner

By:GTJ REIT, Inc., a Maryland corporation, its sole member

By: /s/ Paul A. Cooper

Name: Paul A. Cooper

Title: CEO

(SEAL)

 

[Signatures Continued on Next Page]

 

Signature Page to First Amendment to First Amended and Restated Credit Agreement 

and Amendment to Other Loan Documents – KeyBank/GTJ

 

 

	
WU/LH 950 BRIDGEPORT L.L.C., a Delaware limited liability company

By:GTJ REALTY, LP, a Delaware limited partnership, its sole member and manager

By:GTJ GP, LLC, a Maryland limited liability company, its general partner

By:GTJ REIT, Inc., a Maryland corporation, its sole member

By: /s/ Paul A. Cooper

Name: Paul A. Cooper

Title: CEO

	
(SEAL)

 

 

[Signatures Continued on Next Page]

Signature Page to First Amendment to First Amended and Restated Credit Agreement 

and Amendment to Other Loan Documents – KeyBank/GTJ

Conformed copy reflecting

First Amendment Dated August 5, 2022

 

AGENT AND LENDERS:

KEYBANK NATIONAL ASSOCIATION, a national banking association, as Agent and as a Lender

By: /s/ Tayven Hike

Name:  Tayven Hike

Title:  Senior Vice President

 

 

FIRST FINANCIAL BANK, as a Lender

 

By: /s/ John Wilgus
Name:  John Wilgus
Title:  Senior Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Schedule 1

AMENDED CREDIT AGREEMENT

(See Attached)

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FIRST AMENDED AND RESTATED CREDIT AGREEMENT

DATED AS OF OCTOBER 22, 2021

by and among

GTJ REALTY, LP,

as THE Borrower,

KEYBANK NATIONAL ASSOCIATION,

THE OTHER LENDERS WHICH ARE PARTIES TO THIS AGREEMENT

AND

OTHER LENDERS THAT MAY BECOME

PARTIES TO THIS AGREEMENT,

KEYBANK NATIONAL ASSOCIATION,

AS THE AGENT,

AND

KEYBANC CAPITAL MARKETS INC.,

AS LEAD ARRANGER

 

 

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FIRST AMENDED AND RESTATED Credit Agreement

THIS FIRST AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) is made as of October 22, 2021, by and among GTJ REALTY, LP, a Delaware limited partnership (the “Borrower”), KEYBANK NATIONAL ASSOCIATION (“KeyBank”), the other lending institutions which are parties to this Agreement as “Lenders”, and the other lending institutions that may become parties hereto as “Lenders” pursuant to §18, KEYBANK NATIONAL ASSOCIATION, as Agent for the Lenders (the “Agent”), and KEYBANC CAPITAL MARKETS INC., as Lead Arranger (the “Arranger”).

R E C I T A L S

WHEREAS, the Borrower, Agent and KeyBank entered into that certain Credit Agreement dated as of December 2, 2015, as amended by that certain First Amendment to Credit Agreement dated as of June 30, 2016, that certain Second Amendment to Credit Agreement and Other Loan Documents dated as of July 27, 2017, that certain Third Amendment to Credit Agreement and Other Loan Documents dated as of February 27, 2018, that certain Fourth Amendment to Credit Agreement and Other Loan Documents dated as of July 31, 2018, and that certain Fifth Amendment to Credit Agreement dated as of September 11, 2019 (the “Existing Credit Agreement”); and

WHEREAS, the parties hereto desire to amend and restate the Existing Credit Agreement in its entirety;

NOW, THEREFORE, in consideration of the recitals herein and mutual covenants and agreements contained herein, the parties hereto hereby amend and restate the Existing Credit Agreement in its entirety and covenant and agree as follows:

	
§1.
	
DEFINITIONS AND RULES OF INTERPRETATION

.

	
 
	
§1.1
	
Definitions

.  The following terms shall have the meanings set forth in this §l or elsewhere in the provisions of this Agreement referred to below:

23-85 87th Street.  The Real Estate located at 23-85 87th Street, East Elmhurst, New York and owned by 23-85 87th Street, LLC, a New York limited liability company.

612 Wortman.  The Real Estate located at 612 Wortman Avenue, Brooklyn, New York and owned by 612 Wortman Avenue, LLC, a New York limited liability company.

950 Bridgeport.  The Real Estate located at 950 Bridgeport Avenue, Milford, Connecticut and owned by WU/LH 950 Bridgeport L.L.C., a Delaware limited liability company.

Acknowledgments.  The Acknowledgments executed by a Guarantor or another Person in which Equity Interests have been pledged pursuant to the Loan Documents in favor of the Agent, acknowledging the pledge of Equity Interests in such Guarantor or other Person to the Agent, such Acknowledgments to be in form and substance satisfactory to the Agent, as the same may be modified, amended, restated or ratified.

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Additional Commitment Request Notice.  See §2.11(a).

Additional Guarantor.  Each additional Subsidiary of the Borrower which becomes a Subsidiary Guarantor pursuant to §5.4.

Adjusted Consolidated EBITDA.  With respect to any period of determination, the sum of (a) Consolidated EBITDA for the applicable period, less (b) the amount equal to Capital Reserves for such period.

Adjusted Daily Simple SOFR. With respect to a Daily Simple SOFR Loan, the greater of (1) the sum of (a) Daily Simple SOFR and (b) the applicable SOFR Index Adjustment and (2) the Floor.  

Adjusted Term SOFR. For any Available Tenor and Interest Period with respect to a Term SOFR Loan, an interest rate per annum equal to (a) Term SOFR for such Interest Period, plus (b) the applicable SOFR Index Adjustment; provided that if Adjusted Term SOFR as so determined would be less than the Floor, such rate shall be deemed to be equal to the Floor  for the purposes of this Agreement.

Adjusted Net Operating Income.  On any date of determination for the applicable Real Estate and with respect to any period, the sum of (i) Net Operating Income from such Real Estate for the trailing four (4) calendar quarter period, less (ii) the Capital Reserves for such period.  Notwithstanding the foregoing, for the calculation above for assets that have been owned by Borrower or a Subsidiary of Borrower for less than four (4) quarters, the calculation of Net Operating Income shall be calculated for the first (1st) calendar quarter after acquisition by multiplying the pro forma Net Operating Income for such Real Estate (as approved by Agent) for the first (1st) calendar quarter after such Real Estate is acquired by four (4), and thereafter by annualizing the most recent actual quarterly Net Operating Income for such Real Estate since it was acquired until there are four (4) calendar quarters of actual results.

Affected Financial Institution. Any (a) EEA Financial Institution or (b) UK Financial Institution.

Affected Lender.  See §4.14.

Affiliate.  An Affiliate, as applied to any Person, shall mean any other Person directly or indirectly controlling, controlled by, or under common control with, that Person.  For purposes of this definition, “control” (including, with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as applied to any Person, means (a) the possession, directly or indirectly, of the power to vote ten percent (10%) or more of the stock, shares, voting trust certificates, beneficial interest, partnership interests, member interests or other interests having voting power for the election of directors of such Person or otherwise to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities or by contract or otherwise, or (b) the ownership of (i) a general partnership interest, (ii) a managing member’s or manager’s interest in a limited liability company or (iii) a limited partnership interest or preferred stock (or other ownership interest) representing ten percent (10%) or more of the outstanding limited partnership interests, preferred stock or other ownership interests of such Person.

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Agent.  KeyBank National Association, acting as administrative agent for the Lenders, and its successors and assigns.

Agent Appraisal.  An MAI appraisal of the value of a parcel of Real Estate that is or is to become a Mortgaged Property (or as provided in §5.2(c), any other Real Estate), determined on an “as-is” value basis, performed by an independent appraiser selected by the Agent who is not an employee of REIT, the Borrower, any of their respective Subsidiaries, the Agent or a Lender, the form and substance of such appraisal and the identity of the appraiser to be in compliance with the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended, the rules and regulations adopted pursuant thereto and all other regulatory laws and policies (both regulatory and internal) applicable to the Lenders and otherwise acceptable to the Agent.

Agent’s Head Office.  The Agent’s head office located at 127 Public Square, Cleveland, Ohio 44114-1306, or at such other location as the Agent may designate from time to time by notice to the Borrower and the Lenders.

Agent’s Special Counsel.  Dentons US LLP or such other counsel as selected by the Agent.

Agreement.  This First Amended and Restated Credit Agreement, including the Schedules and Exhibits hereto.

Agreement Regarding Fees.  See §4.2.

Applicable Law.  All applicable provisions of constitutions, statutes, rules, regulations, guidelines and orders of all Governmental Authorities and all orders and decrees of all courts, tribunals and arbitrators.

Applicable Lending Office.  With respect to each Lender, the office designated by such Lender to the Agent as such Lender’s lending office for all purposes of this Agreement.  A Lender may have a different Applicable Lending Office for Base Rate Loans and SOFR Rate Loans.

Applicable Margin.  On any date, the Applicable Margin for SOFR Rate Revolving Credit Loans, Base Rate Revolving Credit Loans, SOFR Rate Term Loans and Base Rate Term Loans shall be a percentage per annum as set forth below based on the ratio of the Consolidated Total Indebtedness to Borrower’s Gross Asset Value:

	
Pricing Level
	
Ratio
	
Applicable Margin for 
SOFR Rate Revolving Credit Loans
	
Applicable Margin for 
Revolving Credit Base Rate Loans
	
Applicable Margin for 
SOFR Rate Term Loans
	
Applicable Margin for 
Term Base Rate Loans

	
Pricing Level 1
	
Less than 55%
	
2.40%
	
1.40%
	
2.35%
	
1.35%

	
Pricing Level 2
	
Equal to or greater than 55% but less than 60%
	
2.65%
	
1.65%
	
2.60%
	
1.60%

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Pricing Level
	
Ratio
	
Applicable Margin for 
SOFR Rate Revolving Credit Loans
	
Applicable Margin for 
Revolving Credit Base Rate Loans
	
Applicable Margin for 
SOFR Rate Term Loans
	
Applicable Margin for 
Term Base Rate Loans

	
Pricing Level 3
	
Equal to or greater than 60%
	
2.90%
	
1.90%
	
2.85%
	
1.85%

 

The Applicable Margin as of the First Amendment Date shall be at Pricing Level 1.  The Applicable Margin for each Base Rate Loan shall be determined by reference to the ratio of Consolidated Total Indebtedness to Gross Asset Value in effect from time to time, and the Applicable Margin for any Interest Period for all SOFR Rate Loans comprising part of the same borrowing shall be determined by reference to the ratio of Consolidated Total Indebtedness to Gross Asset Value in effect on the first (1st) day of such Interest Period.  The Applicable Margin shall not be adjusted based upon such ratio, if at all, until the first (1st) day of the first (1st) month following the delivery by REIT to the Agent of the Compliance Certificate after the end of a calendar quarter.  In the event that REIT shall fail to deliver to the Agent a quarterly Compliance Certificate on or before the date required by §7.4(c), then without limiting any other rights of the Agent and the Lenders under this Agreement, the Applicable Margin for Loans shall be at Pricing Level 3 until such failure is cured within any applicable cure period, or waived in writing by the Required Lenders in which event the Applicable Margin shall adjust, if necessary, on the first (1st) day of the first (1st) month following receipt of such Compliance Certificate.

In the event that the Agent, REIT or the Borrower determine that any financial statements previously delivered were incorrect or inaccurate (regardless of whether this Agreement or the Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period (an “Applicable Period”) than the Applicable Margin applied for such Applicable Period, then (a) the Borrower shall as soon as practicable deliver to the Agent the corrected financial statements for such Applicable Period, (b) the Applicable Margin shall be determined as if the Pricing Level for such higher Applicable Margin were applicable for such Applicable Period, and (c) the Borrower shall within three (3) Business Days of demand thereof by the Agent pay to the Agent the accrued additional amount owing as a result of such increased Applicable Margin for such Applicable Period, which payment shall be promptly applied by the Agent in accordance with this Agreement.

Appraisal.  An Agent Appraisal or Borrower Appraisal, as applicable.

Appraised Value.  The “as-is” value of a parcel of Real Estate determined by the most recent Appraisal of such Real Estate applicable to such Real Estate obtained pursuant to this Agreement.

Arranger.  As defined in the preamble hereto.

Assignment and Acceptance Agreement.  See §18.1.

Assignment of Interests.  Collectively, each of the Assignments of Interests executed by the Borrower or a Subsidiary Guarantor in favor of the Agent, each such agreement 

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to be substantially in the form of Exhibit L attached hereto, with such changes thereto as Agent may reasonably require, as any of the same may be modified, amended, restated or ratified.

Assignment of Leases and Rents.  Each of the assignments of leases and rents from the Borrower or a Subsidiary Guarantor that is an owner of a Mortgaged Property to the Agent, as it may be modified or amended, pursuant to which there shall be assigned to the Agent for the benefit of the Lenders a security interest in the interest of the Borrower or such Subsidiary Guarantor, as lessor with respect to all Leases of all or any part of such Mortgaged Property, each such assignment to be substantially in the form of Exhibit K hereto, with such changes thereto as Agent may reasonably require as a result of state law or practice or type of asset, as any of the same may be modified, amended, restated or ratified.

Authorized Officer.  Any of the following Persons:  Paul Cooper, Louis Sheinker, Ben Zimmerman and such other Persons as the Borrower shall designate in a written notice to the Agent.

Available Tenor. As of any date of determination and with respect to the then-current Benchmark, (x) if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement, or (y) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark, in each case, as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to §4.15(d).

Bail-In Action.  The exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

Bail-In Legislation.  (a) With respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

Balance Sheet Date.  March 31, 2022.

Bankruptcy Code.  Title 11, U.S.C.A., as amended from time to time or any successor statute thereto.

Base Rate.  The greatest of (i) the fluctuating annual rate of interest established from time to time by the Agent at the Agent’s Head Office as its “prime rate”, (ii) one half of one percent (0.5%) above the Federal Funds Effective Rate, (iii) Adjusted Term SOFR for a one month tenor in effect on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus one percent (1.0%), and (iv) one percent (1.0%) per annum.  The Base Rate is a reference rate used by the lender acting as Agent in determining interest rates on certain loans 

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and is not intended to be the lowest rate of interest charged by the lender acting as the Agent or any other lender on any extension of credit to any debtor.  Any change in the Base Rate due to a change in the prime rate, the Federal Funds Effective Rate or Adjusted Term SOFR shall be effective from and including the effective date of such change in the prime rate, the Federal Funds Effective Rate or Adjusted Term SOFR, respectively, without notice or demand of any kind.  

Base Rate Loans.  Collectively, (a) the Revolving Credit Base Rate Loans, (b) the Term Base Rate Loans, and (c) the Swing Loans, in each case, bearing interest calculated by reference to the Base Rate.

Benchmark.  Initially, with respect to (a) any Daily Simple SOFR Loan, Daily Simple SOFR, and (b) any Term SOFR Loan, Term SOFR; provided that if a Benchmark Transition Event has occurred with respect to the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to §4.15.

Benchmark Replacement.  With respect to any Benchmark Transition Event for the then-current Benchmark, the sum of: (i) the alternate benchmark rate that has been selected by the Agent as the replacement for such Benchmark giving due consideration to (A) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (B) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for such Benchmark for syndicated credit facilities denominated in U.S. Dollars at such time and (ii) the related Benchmark Replacement Adjustment, if any; provided that, if such Benchmark Replacement as so determined would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

Benchmark Replacement Adjustment.  With respect to any replacement of any then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Available Tenor, the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero), if any, that has been selected by the Agent giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. Dollar denominated syndicated credit facilities.

Benchmark Replacement Date. The earlier to occur of the following events with respect to the then-current Benchmark:

(a)in the case of clause (a) or (b) of the definition of “Benchmark Transition Event”, the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); or

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(b)in the case of clause (c) of the definition of “Benchmark Transition Event,” the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; provided that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

Benchmark Transition Event. With respect to the then-current Benchmark, the occurrence of one or more of the following events with respect to such Benchmark:

(a)a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

(b)a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York,  an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

(c)a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) or the regulatory supervisor for the administrator of such Benchmark (or such component thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.

For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

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Benchmark Transition Start Date. With respect to any Benchmark, in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication).

Benchmark Unavailability Period. With respect to any then-current Benchmark, the period (if any) (i) beginning at the time that a Benchmark Replacement Date with respect to such Benchmark pursuant to clauses (a) or (b) of that definition has occurred if, at such time, no Benchmark Replacement has replaced such Benchmark for all purposes hereunder and under any Loan Document in accordance with §4.15 and (ii) ending at the time that a Benchmark Replacement has replaced such Benchmark for all purposes hereunder and under any Loan Document in accordance with §4.15.

BHC Act Affiliate. With respect to any Person, means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such Person.

Beneficial Ownership Certification. As to each Borrower, a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation which is otherwise in form and substance satisfactory to the Agent or any Lender requesting the same.

Beneficial Ownership Regulation. 31 C.F.R. § 1010.230.

Borrower.  As defined in the preamble hereto.

Borrower Appraisal.  An MAI appraisal reasonably acceptable to the Agent of the value of Real Estate that is not a Mortgaged Property, determined on an “as-is” value basis, performed by an independent appraiser.

Breakage Costs.  See §4.7.

Building.  With respect to any Real Estate, all of the buildings, structures and improvements now or hereafter located thereon.

Business Day.  (i) any day other than Saturday, Sunday or any other day on which commercial banks in Cleveland, Ohio or New York, New York are authorized or required by law to close and (ii) with respect to any matters relating to SOFR Rate Loans, SOFR Business Day.

Capital Reserve.  With respect to any Person or property, a reserve for replacements and capital expenditures equal to $0.15 per square foot of space in any Building located on any of the Real Estate.

Capitalized Lease.  A lease under which the discounted future rental payment obligations of the lessee or the obligor are required to be capitalized on the balance sheet of such Person in accordance with GAAP.

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Capitalized Value.  With respect to any Stabilized Property owned by Borrower or any of its Subsidiaries or Unconsolidated Affiliates, an amount equal to (a) the Adjusted Net Operating Income from such Stabilized Property for the preceding four (4) calendar quarter period, divided by (b) six percent (6.00%).

Cash Collateral Agreement.  The Cash Collateral Account and Control Agreement among Agent, KeyBank as depository, Borrower and the Subsidiary Guarantors which own Mortgaged Properties, as any of the same may be modified, amended, restated or ratified.

Cash Equivalents.  As of any date, (a) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality thereof having maturities of not more than one year from such date, (b) time deposits and certificates of deposits having maturities of not more than one (1) year from such date and issued by any domestic commercial bank having (i) senior long term unsecured debt rated at least A or the equivalent thereof by S&P or A2 or the equivalent thereof by Moody’s and (ii) capital and surplus in excess of $100,000,000.00, (c) commercial paper rated at least A‐1 or the equivalent thereof by S&P or P-1 or the equivalent thereof by Moody’s and in either case maturing within one hundred twenty (120) days from such date, and (d) shares of any money market mutual fund rated at least AAA or the equivalent thereof by S&P or at least Aaa or the equivalent thereof by Moody’s.

CERCLA.  The federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended from time to time, and regulations promulgated thereunder.

Change of Control.  A Change of Control shall exist upon the occurrence of any of the following:

(a)any Person (including a Person’s Affiliates and associates) or group (as that term is understood under Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations thereunder) shall have acquired beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of a percentage (based on voting power, in the event different classes of stock or interests shall have different voting powers) of the voting stock or voting interests of REIT equal to at least thirty-five percent (35%); 

(b)as of any date a majority of the Board of Directors or Trustees or similar body (the “Board”) of REIT consists of individuals who were not either (i) directors or trustees of REIT as of the corresponding date of the previous year, or (ii) selected or nominated to become directors or trustees by the Board of REIT of which a majority consisted of individuals described in clause (i) above, or (iii) selected or nominated to become directors or trustees by the Board of REIT which majority consisted of individuals described in clause (i) above and individuals described in clause (ii) above; 

(c)the REIT, the Paul Cooper 2020 Dynasty Trust, the By-Pass Trust under Article THIRD of the Last Will and Testament of Jerome Cooper, Jeffrey Ravetz, the Estate of Sarah Ravetz, the Louis Sheinker 2020 Dynasty Trust,   VWU888, LLC, the Wu Family 2012 Gift Trust, and Lighthouse 100 William Operating LLC fail to own, directly or indirectly, at least fifty-one percent (51%) of the ownership interests of Borrower; 

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(d)any of Paul Cooper, Chief Executive Officer, or Louis Sheinker, Chief Operating Officer, shall cease to be an executive officer of the REIT holding the position described above and a competent and experienced officer shall not be approved by the Required Lenders within ninety (90) days of such event, which approval the Required Lenders shall not unreasonably withhold, condition or delay; 

(e)REIT, General Partner or the Borrower consolidates with, is acquired by, or merges into or with any Person (other than a merger permitted by §8.4); 

(f)General Partner fails to (i) be the sole general partner of Borrower, (ii) own, directly or indirectly, free of any lien, encumbrance or other adverse claim, at least one percent (1%) of the economic, voting and beneficial interest of the Borrower, or (iii) control the Borrower; 

(g)the Borrower fails to own, directly or indirectly, free of any lien, encumbrance or other adverse claim (other than any Lien of the Agent granted pursuant to the Loan Documents), at least one hundred percent (100%) of the economic, voting and beneficial interest of each Subsidiary Guarantor; or

(h)the REIT fails to (i) own directly, free of any lien, encumbrance or other adverse claim, at least one hundred percent (100%) of the economic, voting and beneficial interest of General Partner and at least twenty-five percent (25%) of the economic, voting and beneficial interest of Borrower or (ii) control the General Partner.

Closing Date.  The date of this Agreement.

CME.  CME Group Benchmark Administration Ltd.

Code.  The Internal Revenue Code of 1986, as amended, and all regulations and formal guidance issued thereunder.

Collateral.  All of the property, rights and interests of the Borrower, the Guarantor or any of their Subsidiaries which are or are intended to be subject to the security interests, liens and mortgages created by the Security Documents, including, without limitation, the Mortgaged Property and the Guaranty.

Collateral Account.  A special deposit account established by the Agent pursuant to §12.6 and under its sole dominion and control.

Commitment.  With respect to each Lender, the aggregate of (a) the Revolving Credit Commitment of such Lender, and (b) the Term Loan Commitment of such Lender. 

Commitment Increase.  An increase in the Total Revolving Credit Commitment and/or the Total Term Loan Commitment pursuant to §2.11.

Commitment Increase Date.  See §2.11(a).

Commitment Percentage.  With respect to each Lender, the percentage set forth on Schedule 1.1 hereto as such Lender’s percentage of the Total Commitment, as the same may be 

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changed from time to time in accordance with the terms of this Agreement; provided that if any of the Commitments of the Lenders have been terminated as provided in this Agreement, then the Commitment of each Lender shall be determined based on the Commitment Percentage of such Lender immediately prior to such termination and after giving effect to any subsequent assignments made pursuant to the terms hereof; provided, further, that with respect to any class of Term Loans, upon the funding of the Commitments of such class of Term Loans, the Commitment Percentage of such Term Loans with respect to each Lender shall be the percentage that each Lender’s aggregate Outstanding Term Loans of such class represent with respect to the aggregate Outstanding Term Loans of such class.

Commodity Exchange Act.  The Commodity Exchange Act (7 U.S.C. §1 et seq.), as amended from time to time, and any successor statute.

Communications.  See §7.4.

Compliance Certificate.  See §7.4(c).

Conforming Changes.  With respect to either the use or administration of Daily Simple SOFR or Term SOFR, or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Business Day,” the definition of “SOFR Business Day,” the definition of “Interest Period” or any similar or analogous definition (or the addition of a concept of “interest period”), timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of breakage provisions and other technical, administrative or operational matters) that the Agent decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Agent in a manner substantially consistent with market practice (or, if the Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Agent determines that no market practice for the administration of any such rate exists, in such other manner of administration as the Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

Condemnation Proceeds.  All compensation, awards, damages, judgments and proceeds awarded to the Borrower or a Subsidiary Guarantor by reason of any Taking, net of all reasonable and customary amounts actually expended to collect the same, including, without limitation, reasonable and customary amounts expended in negotiating, litigating, if appropriate, or investigating the amount of such compensation, awards, damages, judgments and proceeds.

Connection Income Taxes.  Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

Consolidated.  With reference to any term defined herein, that term as applied to the accounts of a Person and its Subsidiaries, determined on a consolidated basis in accordance with GAAP. 

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Consolidated Debt Yield. The ratio (expressed as a percentage) of (a) the Adjusted Net Operating Income of all of the Real Estate of REIT and its Subsidiaries determined on a Consolidated basis plus (without duplication) such Person’s Equity Percentage of Adjusted Net Operating Income of all of the Real Estate of its Unconsolidated Affiliates to (b) Consolidated Total Indebtedness.

Consolidated EBITDA.  With respect to any period, an amount equal to the EBITDA of REIT and its Subsidiaries for such period determined on a Consolidated basis plus (without duplication) such Person’s Equity Percentage of EBITDA of its Unconsolidated Affiliates.

Consolidated Fixed Charges.  With respect to any period, the sum of (a) Consolidated Interest Expense for such period, plus (b) all of the principal due and payable and principal paid with respect to Indebtedness of the REIT, the Borrower and their respective Subsidiaries during such period (and without double counting amounts funded with reserve accounts if payment to such reserve accounts has already been taken into account in determining Consolidated Fixed Charges), other than any balloon, bullet or similar principal payment which repays such Indebtedness in full and any voluntary prepayments, plus (c) all Preferred Distributions paid during such period.  Such Person’s Equity Percentage in the fixed charges referred to above of its Unconsolidated Affiliates shall be included (without duplication) in the determination of Consolidated Fixed Charges. 

Consolidated Interest Expense.  With respect to any period, without duplication, (a) total Interest Expense of REIT and its Subsidiaries determined on a Consolidated basis in accordance with GAAP for such period, plus (b) such Person’s Equity Percentage of Interest Expense of its Unconsolidated Affiliates for such period.

Consolidated Tangible Net Worth.  As of any date of determination, for the REIT and its Subsidiaries, an amount determined by subtracting the Consolidated Total Indebtedness from the Gross Asset Value.

Consolidated Total Indebtedness.  As of any date of determination, all Indebtedness of REIT and its Subsidiaries determined on a Consolidated basis and shall include (without duplication), such Person’s Equity Percentage of the Indebtedness of its Unconsolidated Affiliates.

Contribution Agreement.  The Contribution Agreement dated as of December 2, 2015, among the Borrower, REIT, General Partner and the Subsidiary Guarantors that are a party thereto as of the Closing Date, and each Additional Guarantor which may hereafter become a party thereto, as the same may be modified, amended, restated or ratified from time to time.

Continue, Continuation and Continued. Refers to a continuation of a SOFR Rate Loan for an additional Interest Period as provided in §4.1.

Conversion/Continuation Request.  A written notice given by the Borrower to the Agent of its election to convert or continue a Loan in accordance with §4.1, which notice shall specify (A) the Loan (or portion thereof) to be continued or converted, (B) the requested effective date of the continuation or conversion (which shall be a Business Day), (C) whether the resulting Loan is to be a Base Rate Loan, a Daily Simple SOFR Loan or a Term SOFR Loan, and (D) in the 

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case of a continuation or conversion resulting in a Term SOFR Loan, the Interest Period applicable thereto.

Covered Entity.  Any of the following: (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. §252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. §47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. §382.2(b).

Covered Party.  See §35.

Daily Simple SOFR.  For any day (a “SOFR Rate Day”), a rate per annum (rounded in accordance with the Agent’s customary practice) equal to SOFR for the day (such day, the “SOFR Determination Day”) that is five (5) SOFR Business Days (or such other period as determined by the Agent based on then prevailing market conventions) prior to (i) if such SOFR Rate Day is a SOFR Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a SOFR Business Day, the SOFR Business Day immediately preceding such SOFR Rate Day, in each case, as and when SOFR for such SOFR Rate Day is published by the Daily Simple SOFR Administrator on the SOFR Administrator’s Website.  If by 5:00 pm (New York City time) on the second (2nd) SOFR Business Day immediately following any SOFR Determination Day, SOFR in respect of such SOFR Determination Day has not been published on the SOFR Administrator’s Website and a Benchmark Replacement Date with respect to Daily Simple SOFR has not occurred, then SOFR for such SOFR Determination Day will be SOFR as published in respect of the first preceding SOFR Business Day for which such SOFR was published on the SOFR Administrator’s Website; provided, that any SOFR determined pursuant to this sentence shall be utilized for purposes of calculation of Daily Simple SOFR for no more than three (3) consecutive SOFR Rate Days.  Any change in Daily Simple SOFR due to a change in SOFR shall be effective from and including the effective date of such change in SOFR without notice to the Borrower.

Daily Simple SOFR Loan. Each Loan bearing interest at a rate based upon Daily Simple SOFR. 

Default.  See §12.1.

Default Rate.  See §4.11.

Default Right. Default Right shall have the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

Defaulting Lender.  Any Lender that, as reasonably determined by the Agent, (a) has failed to perform any of its funding obligations hereunder, including in respect of its Loans or participations in respect of Letters of Credit or Swing Loans, within two (2) Business Days of the date required to be funded by it hereunder and such failure is continuing, unless such failure arises out of such Lender’s good faith determination that a condition precedent to funding (specifically identified) has not been satisfied, (b) (i) has notified the Borrower or the Agent that it does not intend to comply with its funding obligations hereunder or (ii) has made a public statement to that effect with respect to its funding obligations under other agreements generally in which it commits to extend credit, unless with respect to this clause (b), such failure arises from such Lender’s good faith determination that a condition precedent to funding (specifically identified) has not been 

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satisfied, (c) has failed, within two (2) Business Days after request by the Agent, to confirm in a manner reasonably satisfactory to the Agent that it will comply with its funding obligations; provided that, notwithstanding the provisions of §2.13, such Lender shall cease to be a Defaulting Lender upon the Agent’s receipt of confirmation that such Defaulting Lender will comply with its funding obligations, (d) is subject to any Bail-In Action, or (e) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any bankruptcy, insolvency, reorganization, liquidation, conservatorship, assignment for the benefit of creditors, moratorium, receivership, rearrangement or similar debtor relief law of the United States or other applicable jurisdictions from time to time in effect, including any law for the appointment of the Federal Deposit Insurance Corporation or any other state or federal regulatory authority as receiver, conservator, trustee, administrator or any similar capacity, (ii) had a receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such capacity, charged with reorganization or liquidation of its business or a custodian appointed for it, (iii) taken any action in furtherance of, or indicated its consent to, approval of or acquiescence in any such proceeding or appointment, or (iv) become the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts of the United States or from the enforcement of judgments or writs of attachment of its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow, or disaffirm any contracts or agreements made with such Person.  Any determination by the Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to §2.13(g)) upon delivery of written notice of such determination to the Borrower and each Lender.

Derivatives Contract.  Any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement.  Not in limitation of the foregoing, the term “Derivatives Contract” includes any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement of similar type, including any such obligations or liabilities under any such master agreement.

Derivatives Termination Value.  In respect of any one or more Derivatives Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Derivatives Contracts, (a) for any date on or after the date such Derivatives Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a) above, the amount(s) 

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determined as the mark-to-market value(s) for such Derivatives Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Derivatives Contracts (which may include the Agent or any Lender).

Designated Person.  See §6.31.

Development Property.  Any Real Estate owned or acquired by the Borrower or its Subsidiaries or Unconsolidated Affiliates and on which construction, redevelopment or material rehabilitation of material improvements for use as an Industrial Property has commenced and is proceeding to completion without undue delay from permit denial, construction delays or otherwise, all pursuant to the ordinary course of business of Borrower and its Subsidiaries; provided that any Real Estate will no longer be considered a Development Property upon the earlier of (a) such property reaching an occupancy of at least 85% for the most recent completed calendar quarter or (b) four (4) complete fiscal quarters after issuance of the certificate of occupancy for such Real Estate.  Upon meeting the defined thresholds above, the asset will be considered to be a “Stabilized Property”.  As of the First Amendment Date, the Real Estate owned by GWL 110 Old County LLC located at 120 Old County Circle, Windsor Locks, CT and the Real Estate owned by GWL Windsor Land LLC located at 120 Old County Circle, Windsor Locks, CT are Development Properties. 

Directions.  See §14.14.

Distribution.  Any (a) dividend or other distribution, direct or indirect, on account of any Equity Interest of REIT or any of its Subsidiaries now or hereafter outstanding, except a dividend payable solely in Equity Interests of identical class to the holders of that class; (b) redemption, conversion, exchange, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any Equity Interest of REIT or any of its Subsidiaries now or hereafter outstanding; and (c) payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire any Equity Interests of REIT or any of its Subsidiaries now or hereafter outstanding.  Distributions from any Subsidiary of the Borrower to, directly or indirectly, the Borrower shall be excluded from this definition.

Dividing Person.  See the definition of “Division” in §1.1.

Division.  The division of the assets, liabilities and/or obligations of a Person (the “Dividing Person”) among two or more Persons (whether pursuant to a “plan of division” or similar arrangement), which may or may not include the Dividing Person and pursuant to which the Dividing Person may or may not survive.

Division Successor.  Any Person that, upon the consummation of a Division of a Dividing Person, holds all or any portion of the assets, liabilities and/or obligations previously held by such Dividing Person immediately prior to the consummation of such Division.  A Dividing Person which retains any of its assets, liabilities and/or obligations after a Division shall be deemed a Division Successor upon the occurrence of such Division.

Dollars or $.  Dollars in lawful currency of the United States of America.

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Drawdown Date.  The date on which any Loan is made or is to be made, and the date on which any Loan which is made prior to the Revolving Credit Maturity Date or the Term Loan Maturity Date, as applicable, is converted in accordance with §4.1.

EBITDA.  With respect to a Person any period, without duplication, the Consolidated Net Income (or Loss) of such Person and its Subsidiaries for such period (before deduction for minority interests in any of the Subsidiaries and excluding any adjustments for “straight-line rent accounting”); plus (A) the following items to the extent deducted in computing such Consolidated Net Income for such period:  (i) Consolidated Interest Expense for such period, (ii) Consolidated income tax expense for such period, (iii) Consolidated expenses associated with the upfront costs of acquisitions and not otherwise capitalized, (iv) Consolidated real estate depreciation, amortization, and other extraordinary and non-cash items for such period (except, in the case of such other non-cash items, to the extent that a cash payment will be required to be made in respect thereof in a future period), and (v) losses from discontinued operations; minus (B) the following items to the extent included in computing such Consolidated Net Income for such period: (i) all Consolidated gains (or plus all Consolidated losses) attributable to any sales or other dispositions of assets, debt restructurings or early retirement of debt in such period, and (ii) all income (or plus all losses) from all Unconsolidated Affiliates of such Person for such period; plus (or minus, as applicable), plus (C) the pro-rata share of any of the items described above in this definition that are attributable to any Unconsolidated Affiliates of such Person for such period.

EEA Financial Institution. (a) Any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

EEA Member Country.  Any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

EEA Resolution Authority.  Any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

Electronic System.  See §7.4.

Eligible Real Estate.  Real Estate which at all times satisfies the following requirements:

(a)which is wholly owned in fee by the Borrower or a Wholly Owned Subsidiary of Borrower that is a Subsidiary Guarantor;

(b)which is located within the contiguous forty-eight (48) States of the continental United States or the District of Columbia;

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(c)which is improved by an income producing Industrial Property, as to which all improvements related to the development of the Industrial Property have been completed and for which a certificate of occupancy or equivalent has been issued;

(d)as to which all of the representations set forth in §6 of this Agreement and in the other Loan Documents concerning such Real Estate are true and correct;

(e)such Real Estate is in compliance with all of the covenants in this Agreement and the other Loan Documents; 

(f)as to which the Agent has received and approved all Guarantor Qualification Documents required by the Agent, or will receive, and approve them prior to the acquisition of such Real Estate and inclusion of such property as a Mortgaged Property; and

(g)none of the Real Estate shall have any material title, survey, environmental, structural or other defects that would give rise to a materially adverse effect as to the value, use of, operation of or ability to sell or finance such property.

Eligible Real Estate Qualification Documents.  See Schedule 5.3B attached hereto.

Employee Benefit Plan.  Any employee benefit plan within the meaning of Section 3(3) of ERISA maintained or contributed to by REIT or any ERISA Affiliate, other than a Multiemployer Plan.

Environmental Engineer.  Any firm of independent professional engineers or other scientists generally recognized as expert in the detection, analysis and remediation of Hazardous Substances and related environmental matters and acceptable to the Agent in its reasonable discretion.

Environmental Laws.  As defined in the Indemnity Agreement.

Environmental Reports.  See §6.19.

EPA.  See §6.19(b).

Equity Interests.  With respect to any Person, (a) any share of capital stock of (or other ownership or profit interests in) such Person, (b) any warrant, option or other right for the purchase or other acquisition from such Person of (i) any share of capital stock of (or other ownership or profit interests in) such Person, or (ii) any security convertible into or exchangeable for any share of capital stock of (or other ownership or profit interests in) such Person or warrant, right or option for the purchase or other acquisition from such Person of such shares (or such other interests) and whether or not such share, warrant, option, right or other interest is authorized or otherwise existing on any date of determination, and (c) any other ownership or profit interest in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting.

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Equity Offering.  The issuance and sale after the Closing Date by REIT or any of its Subsidiaries of any equity securities of such Person (other than equity securities issued to REIT or any one or more of its Subsidiaries in their respective Subsidiaries).

Equity Percentage.  The aggregate ownership percentage of REIT or its Subsidiaries in each Unconsolidated Affiliate or Subsidiary that is not a Wholly-Owned Subsidiary, which shall be calculated as the greater of (a) such Person’s direct or indirect nominal capital ownership interest in the Unconsolidated Affiliate or Subsidiary that is not a Wholly-Owned Subsidiary as set forth in the Unconsolidated Affiliate’s or Subsidiaries’ organizational documents, and (b) such Person’s direct or indirect economic ownership interest in the Unconsolidated Affiliate or Subsidiary that is not a Wholly-Owned Subsidiary reflecting such Person’s current allocable share of income and expenses of the Unconsolidated Affiliate or Subsidiary that is not a Wholly-Owned Subsidiary.

ERISA.  The Employee Retirement Income Security Act of 1974, as amended and in effect from time to time and all regulations and formal guidelines issued thereunder.

ERISA Affiliate.  Any Person which is treated as a single employer with REIT or its Subsidiaries under Section 414 of the Code or Section 4001 of ERISA and any predecessor entity of any of them.

ERISA Reportable Event.  A reportable event with respect to a Guaranteed Pension Plan within the meaning of Section 4043 of ERISA and the regulations promulgated thereunder as to which the requirement of notice has not been waived or any other event with respect to which the Borrower, a Guarantor or an ERISA Affiliate could have liability under Section 4062(e) or Section 4063 of ERISA.

Erroneous Payment.  See §14.17(a).   

Erroneous Payment Deficiency Assignment.  See §14.17(d).

Erroneous Payment Impacted Class.  See §14.17(d).

Erroneous Payment Return Deficiency.  See §14.17(d).

Erroneous Payment Subrogation Rights.  See §14.17(d).

EU Bail-In Legislation Schedule.  The EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

Event of Default.  See §12.1.

Excluded Hedge Obligation.  With respect to any Guarantor, any Hedge Obligation, if, and to the extent that, all or a portion of the guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Hedge Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract 

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participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the guarantee of such Guarantor or the grant of such security interest becomes effective with respect to such Hedge Obligation.  If a Hedge Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Hedge Obligation that is attributable to swaps for which such guarantee or security interest is or becomes illegal.

Excluded Subsidiary.  Any Subsidiary of the Borrower which is prohibited from guaranteeing the Indebtedness of any other Person pursuant to (i) any document, instrument or agreement evidencing Secured Indebtedness permitted by this Agreement, (ii) a provision of such Subsidiary’s organizational documents, which provision is included as a condition to the extension of such Secured Indebtedness, or (iii) any joint venture agreement with an unaffiliated third Person.

Excluded Taxes.  Any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or its Commitment pursuant to an Applicable Law in effect on the date on which (i) such Lender acquires such interest in the Loan or its Commitment (other than pursuant to an assignment request by the Borrower under §4.14 as a result of costs sought to be reimbursed pursuant to §4.3 or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to §4.3, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with §4.3(g) and (d) any U.S. federal withholding Taxes imposed under FATCA.

Existing Credit Agreement.  As defined in the recitals to this Agreement.

FATCA.  Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

Federal Funds Effective Rate.  For any day, the rate per annum (rounded upward to the nearest one-hundredth of one percent (1/100 of 1%)) announced by the Federal Reserve Bank of Cleveland on such day as being the weighted average of the rates on overnight federal funds transactions arranged by federal funds brokers on the previous trading day, as computed and announced by such Federal Reserve Bank in substantially the same manner as such Federal Reserve Bank computes and announces the weighted average it refers to as the “Federal Funds Effective Rate.” Notwithstanding the foregoing, if the Federal Funds Effective Rate shall be less than zero, such rate shall be deemed zero for the purposes of this Agreement.  

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First Amendment Date.  August 5, 2022.

First Extension Option.  See §2.12(a).

Floor. A rate of interest equal to zero percent (0.0%) per annum.

Foreign Lender.  If the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes.

Fronting Exposure.  At any time there is a Defaulting Lender, (a) with respect to the Issuing Lender, such Defaulting Lender’s Revolving Credit Commitment Percentage of the outstanding Letter of Credit Liabilities other than Letter of Credit Liabilities as to which such Defaulting Lender’s participation obligation has been reallocated to other Revolving Credit Lenders or cash collateral or other credit support acceptable to the Issuing Lender shall have been provided in accordance with the terms hereof and (b) with respect to the Swing Loan Lender, such Defaulting Lender’s Revolving Credit Commitment Percentage of Swing Loans other than Swing Loans as to which such Defaulting Lender’s participation obligation has been reallocated to other Revolving Credit Lenders, repaid by the Borrower or for which cash collateral or other credit support acceptable to the Swing Loan Lender shall have been provided in accordance with the terms hereof.

Funds from Operations.  With respect to REIT and its Subsidiaries on a consolidated basis, Consolidated Net Income (or Loss) calculated in accordance with GAAP, excluding gains or losses from debt restructuring and sales of depreciable property, plus depreciation and amortization (excluding amortization of financing costs), and after adjustments for unconsolidated partnerships and joint ventures (with adjustments for unconsolidated partnerships and joint ventures calculated to reflect funds from operations on the same basis) and the payment of dividends on preferred stock, as interpreted by the National Association of Real Estate Investment Trusts in its April 1,2002, White Paper; provided, however, the following shall be excluded when calculating “Funds From Operations”: (i) non-cash adjustments for preferred stock issuance costs, (ii) non-cash adjustments for loan amortization costs, (iii) non-cash adjustments for impairment losses on real estate development assets, net of any tax benefit, and (iv) losses from discontinued operations.

GAAP.  Principles that are (a) consistent with the principles promulgated or adopted by the Financial Accounting Standards Board and its predecessors, as in effect from time to time and (b) consistently applied with past financial statements of the Person adopting the same principles.

General Partner.  GTJ GP, LLC, a Maryland limited liability company.

Governmental Authority.  Any national, state or local government (whether domestic or foreign), any political subdivision thereof or any other governmental, quasi‐governmental, judicial, public or statutory instrumentality, authority, body, agency, bureau, commission, board, department or other entity (including, without limitation, the Federal Deposit Insurance Corporation, the Comptroller of the Currency or the Federal Reserve Board, any central 

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bank or any comparable authority) or any arbitrator with authority to bind a party at law, and including any supra-national bodies such as the European Union or the European Central Bank.

Gross Asset Value.  On a Consolidated basis for REIT and its Subsidiaries, the sum of (without duplication with respect to any Real Estate):

(h)With respect to any Real Estate owned by Borrower and its Subsidiaries that is a Stabilized Property and which is either owned (i) as of the Closing Date or (ii) for not less than the prior twelve (12) consecutive month period most recently ended, the Capitalized Value of such Real Estate;

(i)with respect to any Real Estate owned by Borrower and its Subsidiaries that is a Stabilized Property and which is not included in clause (a) above, the lesser of (i) Capitalized Value of such Real Estate and (ii) the Appraised Value of such Real Estate; provided that if pursuant to §5.3 Agent has not obtained an Appraisal of any Real Estate, such Real Estate shall, until such Appraisal is obtained and approved, be valued at the lesser of (x) Capitalized Value of such Real Estate and (y) the undepreciated book value determined in accordance with GAAP of such Real Estate; plus

(j)with respect to all Development Properties owned by Borrower and its Subsidiaries, the undepreciated book value determined in accordance with GAAP of such Development Properties; plus

(k)with respect to all Land Assets owned by Borrower and its Subsidiaries, the undepreciated book value determined in accordance with GAAP of such Land Assets; plus

(l)the GAAP book value of all Unrestricted Cash and Cash Equivalents of REIT and its Subsidiaries as of the date of determination.

Gross Asset Value will be adjusted, as appropriate, for acquisitions, dispositions and other changes to the portfolio during the calendar quarter most recently ended prior to a date of determination.  Additionally, without limiting or affecting any other provision hereof, Gross Asset Value shall not include any income or value associated with Real Estate which is not operated or intended to be operated principally as an Industrial Property.  All income, expense and value associated with assets included in Gross Asset Value disposed of during the calendar quarter period most recently ended prior to a date of determination will be eliminated from calculations.  Gross Asset Value will be adjusted to only include an amount equal to REIT's or any of its Subsidiaries’ Equity Percentage of the Gross Asset Value attributable to any of the items listed above in this definition owned by an Unconsolidated Affiliate.

Guaranteed Pension Plan.  Any employee pension benefit plan within the meaning of Section 3(2) of ERISA maintained or contributed to by REIT or any ERISA Affiliate the benefits of which are guaranteed on termination in full or in part by the PBGC pursuant to Title IV of ERISA, other than a Multiemployer Plan.

Guarantor.  Collectively, REIT, General Partner, each Subsidiary Guarantor and each Additional Guarantor, and individually any one of them.

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Guarantor Qualification Documents.  See Schedule 5.3A attached hereto.

Guaranty.  The Unconditional Guaranty of Payment and Performance dated as of December 2, 2015 made by REIT, General Partner, the Subsidiary Guarantors that are a party thereto as of the Closing Date, and each Additional Guarantor in favor of the Agent and the Lenders, as the same may be modified, amended, restated or ratified, such Guaranty to be in form and substance satisfactory to the Agent.

Hazardous Substances.  As defined in the Indemnity Agreement.

Hedge Obligations.  All obligations of Borrower to any Lender Hedge Provider to make any payments under any agreement with respect to an interest rate swap, collar, cap or floor or a forward rate agreement or other agreement regarding the hedging of interest rate risk exposure relating to the Obligations, and any confirming letter executed pursuant to such hedging agreement, and which shall include, without limitation, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act, all as amended, restated or otherwise modified.  Under no circumstances shall any of the Hedge Obligations secured or guaranteed by any Loan Document as to a Guarantor include any obligation that constitutes an Excluded Hedge Obligation of such Guarantor.

Increase Notice.  See §2.11(a).

Indebtedness.  With respect to a Person, at the time of computation thereof, all of the following (without duplication):  (a) all obligations of such Person in respect of money borrowed (other than trade debt incurred in the ordinary course of business which is not more than sixty (60) days past due); (b) all obligations of such Person, whether or not for money borrowed (i) represented by notes payable, or drafts accepted, in each case representing extensions of credit, (ii) evidenced by bonds, debentures, notes or similar instruments, or (iii) constituting purchase money indebtedness, conditional sales contracts, title retention debt instruments or other similar instruments, upon which interest charges are customarily paid or that are issued or assumed as full or partial payment for property or services rendered; (c) obligations of such Person as a lessee or obligor under a Capitalized Lease; (d) all reimbursement obligations of such Person under any letters of credit or acceptances (whether or not the same have been presented for payment); (e) all Off-Balance Sheet Obligations of such Person; (f) all obligations of such Person in respect of any purchase obligation, repurchase obligation, takeout commitment or forward equity commitment, in each case evidenced by a binding agreement (excluding any such obligation to the extent the obligation can be satisfied solely by the issuance of Equity Interests); (g) net obligations under any Derivatives Contract not entered into as a hedge against existing Indebtedness, in an amount equal to the Derivatives Termination Value thereof; (h) all Indebtedness of other Persons which such Person has guaranteed or is otherwise recourse to such Person (except for guaranties of customary exceptions for fraud, misapplication of funds, environmental indemnities, violations of “special purpose entity” covenants and other similar exceptions to recourse liability until a claim is made with respect thereto, and then shall be included only to the extent of the amount of such claim, including liability of a general partner in respect of liabilities of a partnership in which it is a general partner which would constitute “Indebtedness” hereunder, any obligation to supply funds to or in any manner to invest directly or indirectly in a Person, to maintain working capital or 

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equity capital of a Person or otherwise to maintain net worth, solvency or other financial condition of a Person, to purchase indebtedness, or to assure the owner of indebtedness against loss, including, without limitation, through an agreement to purchase property, securities, goods, supplies or services for the purpose of enabling the debtor to make payment of the indebtedness held by such owner or otherwise; (i) all Indebtedness of another Person secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property or assets owned by such Person, even though such Person has not assumed or become liable for the payment of such Indebtedness or other payment obligation; (j) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Mandatorily Redeemable Stock issued by such Person or any other Person, valued at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; and (k) such Person’s pro rata share of the Indebtedness (based upon its Equity Percentage) of any Unconsolidated Affiliate of such Person.  For the avoidance of doubt, if a Person has guaranteed Indebtedness of an Unconsolidated Affiliate, the greater of the Indebtedness guaranteed or the Equity Percentage of such Indebtedness shall be included in Indebtedness.  Indebtedness shall be adjusted to remove any impact of intangibles pursuant to FAS 141, as issued by the Financial Accounting Standards Board in June of 2001.

Indemnified Taxes.  (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower or any Guarantor under any Loan Document and (b) to the extent not otherwise described in the immediately preceding clause (a), Other Taxes.

Indemnity Agreement.  The Indemnity Agreement Regarding Hazardous Materials dated as of December 2, 2015 made by the Borrower and Guarantors, in favor of the Agent and the Lenders, as the same may be modified, amended, restated or ratified, pursuant to which each of the Borrower and the Guarantors agrees to indemnify the Agent and the Lenders with respect to Hazardous Substances and Environmental Laws.

Industrial Property.  Any Real Estate that is an industrial property designed to be used primarily for one of the following purposes: warehouse, distribution, office flex (light manufacturing or research and development), or trans-shipment.  With respect to Real Estate owned by REIT and its Subsidiaries as of the Closing Date, an Industrial Property shall also include the uses of such Real Estate as of the Closing Date; provided, however, that any Real Estate that is used as a bank branch or for any retail purpose shall not be considered to be an Industrial Property. 

Information Materials.  See §7.4.

Insurance Proceeds.  All insurance proceeds, damages and claims and the right thereto under any insurance policies relating to any portion of any Mortgaged Property, net of all reasonable and customary amounts actually expended to collect the same, including, without limitation, reasonable and customary amounts expended in negotiating, litigating, if appropriate, or investigating the amount of such insurance, proceeds, damages and claims.

Interest Expense.  With respect to any period, with respect to REIT and its Subsidiaries, without duplication, the sum of (x) total interest expense paid, incurred, capitalized 

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or accrued on Indebtedness (whether direct, indirect or contingent, and including without limitation, interest expense attributable to Capitalized Leases, amounts attributable to interest incurred under Derivatives Contracts, interest on all convertible debt, and commissions, discount fees and other charges in connection with standby letters of credit and similar instruments, but excluding amortization of financing costs) of REIT and its Subsidiaries, on a consolidated basis, during such period, determined in accordance with GAAP, plus (y) the portion of the upfront costs and expenses for Derivatives Contracts relating to interest rate hedges entered into (to the extent not included in Interest Expense) fairly allocated to such Derivatives Contracts as expenses for such period, as determined in accordance with GAAP; provided, that, included in Interest Expense will be all interest expense accrued by REIT and its Subsidiaries during such period, even if not payable on or before the Maturity Date, and excluded from Interest Expense will be all amortization of costs for the issuance of debt and interest accrued under any intracompany debt that is subordinated to the Indebtedness pursuant to a subordination agreement reasonably satisfactory to Agent and all upfront fees, arrangement fees, commitment fees, commissions and similar charges associated with the issuance of Indebtedness.  Interest Expense shall include (without duplication) the Equity Percentage of Interest Expense for the Unconsolidated Affiliates of REIT and its Subsidiaries.

Interest Hedge.  See §7.22.

Interest Payment Date.  As to each Base Rate Loan and each Daily Simple SOFR Loan, the first day of each calendar month during the term of such Loan.  As to each Term SOFR Loan, the last day of each Interest Period relating thereto; provided that in the event that the Interest Period for a Term SOFR Loan shall be for a period in excess of one (1) month, then interest shall also be payable on the monthly anniversary of the commencement of such Interest Period. 

Interest Period.  With respect to each Term SOFR Loan, a period of one, three or six months as selected by the Borrower; provided, however, that (i) the initial Interest Period for any borrowing of a Term SOFR Loan shall commence on the date of such borrowing (the date of a borrowing resulting from a Conversion or Continuation shall be the date of such Conversion or Continuation) and each Interest Period occurring thereafter in respect of such borrowing shall commence on the first day after the last day of the next preceding Interest Period; (ii) if any Interest Period begins on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period, such Interest Period shall end on the last Business Day of such calendar month; (iii) if any Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day; provided, however, that if any Interest Period would otherwise expire on a day that is not a Business Day but is a day of the month after which no further Business Day occurs in such month, such Interest Period shall expire on the next preceding Business Day; (iv) no Interest Period for any Term SOFR Loan may be selected that would end after the Revolving Credit Maturity Date or the Term Loan Maturity Date, as the case may be; and (v) if, upon the expiration of any Interest Period, the Borrower has failed to (or may not) elect a new Interest Period to be applicable to the respective borrowing of Term SOFR Loans as provided above, the Borrower shall be deemed to have elected to convert such borrowing to Base Rate Loans effective as of the expiration date of such current Interest Period. 

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Investments.  With respect to any Person, all shares of capital stock, evidences of Indebtedness and other securities issued by any other Person and owned by such Person, all loans, advances, or extensions of credit to, or contributions to the capital of, any other Person, all purchases of the securities or business or integral part of the business of any other Person and commitments and options to make such purchases, all interests in real property, and all other investments; provided, however, that the term “Investment” shall not include (x) equipment, inventory and other tangible personal property acquired in the ordinary course of business, or (y) current trade and customer accounts receivable for services rendered in the ordinary course of business and payable in accordance with customary trade terms.  In determining the aggregate amount of Investments outstanding at any particular time:  (a) there shall be included as an Investment all interest accrued with respect to Indebtedness constituting an Investment unless and until such interest is paid; (b) there shall be deducted in respect of each Investment any amount received as a return of capital; (c) there shall not be deducted in respect of any Investment any amounts received as earnings on such Investment, whether as dividends, interest or otherwise, except that accrued interest included as provided in the foregoing clause (a) shall be deducted when paid; and (d) there shall not be deducted in respect of any Investment any decrease in the value thereof.

Issuing Lender.  KeyBank, in its capacity as the Revolving Credit Lender issuing the Letters of Credit and any successor thereto.

Joinder Agreement.  The Joinder Agreement with respect to the Guaranty, the Contribution Agreement, the Cash Collateral Agreement, and the Indemnity Agreement to be executed and delivered pursuant to §5.4 by any Additional Guarantor, such Joinder Agreement to be substantially in the form of Exhibit A hereto.

KCM.  KeyBanc Capital Markets Inc.

KeyBank.  As defined in the preamble hereto.

Land Assets  Land to be developed as an Industrial Property with respect to which the commencement of grading, construction of improvements (other than improvements that are not material and are temporary in nature) or infrastructure has not yet commenced and for which no such work is reasonably scheduled to commence within the following twelve (12) months.

Leases.  Leases, licenses and agreements, whether written or oral, relating to the use or occupation of space in any Building or of any Real Estate.

Lender Hedge Provider.  With respect to any Hedge Obligations, any counterparty thereto that, at the time the applicable hedge agreement was entered into, was a Lender or an Affiliate of a Lender.

Lenders.  KeyBank, the other lending institutions which are party hereto and any other Person which becomes an assignee of any rights of a Lender pursuant to this Agreement (but not including any participant as described in §18).  The Issuing Lender shall be a Lender, as applicable.  The Swing Loan Lender shall be a Lender.

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Letter of Credit.  Any standby letter of credit issued at the request of the Borrower and for the account of the Borrower in accordance with §2.10.

Letter of Credit Commitment.  An amount equal to Ten Million and No/100 Dollars ($10,000,000.00), as the same may be changed from time to time in accordance with the terms of this Agreement.

Letter of Credit Liabilities.  At any time and in respect of any Letter of Credit, the sum of (a) the maximum undrawn face amount of such Letter of Credit plus (b) the aggregate unpaid principal amount of all drawings made under such Letter of Credit which have not been repaid (including repayment by a Revolving Credit Loan).  For purposes of this Agreement, a Revolving Credit Lender (other than the Revolving Credit Lender acting as the Issuing Lender) shall be deemed to hold a Letter of Credit Liability in an amount equal to its participation interest in the related Letter of Credit under §2.10, and the Revolving Credit Lender acting as the Issuing Lender shall be deemed to hold a Letter of Credit Liability in an amount equal to its retained interest in the related Letter of Credit after giving effect to the acquisition by the Revolving Credit Lenders other than the Revolving Credit Lender acting as the Issuing Lender of their participation interests under §2.10.

Letter of Credit Request.  See §2.10(a).

Lien.  See §8.2.

Liquidity.  As of any date of determination, the sum of (a) Borrower’s Unrestricted Cash and Cash Equivalents plus (b) the amount of the Revolving Credit Loans then available to be borrowed by Borrower pursuant to the terms of this Agreement.

Loan Documents.  This Agreement, the Notes, the Guaranty, each Letter of Credit Request, the Security Documents, the Subordination of Management Agreement, the Agreement Regarding Fees and all other documents, instruments or agreements now or hereafter executed or delivered by or on behalf of the Borrower or any Guarantor in connection with the Loans.

Loan Request.  See §2.7.

Loan and Loans.  An individual loan or the aggregate loans (including a Revolving Credit Loan (or Revolving Credit Loans) and a Term Loan (or Term Loans)), as the case may be, in the maximum principal amount of the Total Commitment (subject to increase as provided in §2.11) to be made by the Lenders hereunder as more particularly described in §2.  All Loans shall be made in Dollars.  Amounts drawn under a Letter of Credit shall also be considered Revolving Credit Loans as provided in §2.10(f).

Management Agreements.  Agreements to which any Person that owns a Mortgaged Property is a party, whether written or oral, providing for the management of any of the Mortgaged Property.

Mandatorily Redeemable Stock.  With respect to any Person, any Equity Interest of such Person which by the terms of such Equity Interest (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable), upon the happening of any event 

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or otherwise (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise (other than an Equity Interest to the extent redeemable in exchange for common stock or other equivalent common Equity Interests), (b) is convertible into or exchangeable or exercisable for Indebtedness or Mandatorily Redeemable Stock, or (c) is redeemable at the option of the holder thereof, in whole or in part (other than an Equity Interest which is redeemable solely in exchange for common stock or other equivalent common Equity Interests).

Material Adverse Effect.  A material adverse effect on (a) the business, properties, assets, condition (financial or otherwise), prospects or results of operations of REIT and its Subsidiaries, taken as a whole; (b) the ability of the Borrower or any Guarantor to perform any of its material obligations under the Loan Documents; or (c) the validity or enforceability of any of the Loan Documents or the creation, perfection and priority of any Liens of the Agent in the Collateral; or (d) the rights or remedies of the Agent or the Lenders thereunder.

Material Subsidiary.  Any Subsidiary of Borrower that is not an Excluded Subsidiary.

Maturity Date.  Either the Revolving Credit Maturity Date or the Term Loan Maturity Date, as the context may require.

Minimum Loan Amounts. An amount (i) with respect to any Base Rate Loan or Daily Simple SOFR Loan, of at least $1,000,000, with minimum increments thereafter of $250,000, (ii) with respect to any Term SOFR Loan, of at least $1,000,000, with minimum increments thereafter of $1,000,000, and (iii) with respect to Swing Loans, of at least $1,000,000, with minimum increments thereafter of $250,000, or, in each case, such lesser amounts as agreed to by the Agent.

Moody’s.  Moody’s Investor Service, Inc., and any successor thereto.

Mortgages.  The Mortgages, Deeds to Secure Debt and/or Deeds of Trust from the Borrower or a Subsidiary Guarantor to the Agent for the benefit of the Agent and the Lenders (or to trustees named therein acting on behalf of the Agent for the benefit of the Agent and the Lenders), as the same may be modified, amended, restated or ratified, pursuant to which a Borrower or a Guarantor has conveyed or granted a mortgage lien upon or a conveyance in fee simple (or of a leasehold, if applicable) of any Mortgaged Property, as security for the Obligations, each such Mortgage to be substantially in the form of Exhibit J, with such changes as Agent may reasonably require as a result of state law or practice or type of asset.

Mortgaged Property or Mortgaged Properties.  The Real Estate owned by a Borrower or a Subsidiary Guarantor that is security for the Obligations pursuant to the Mortgages.  Notwithstanding anything in the Loan Documents to the contrary, in the event that proceeds of the Loan or a Letter of Credit are used, in whole or in part, to acquire such Real Estate or to refinance indebtedness secured by such Real Estate, and the Mortgage is not delivered until after acquisition or refinance of the applicable Real Estate as provided in §5.3, such Real Estate shall for all purposes of the Loan Documents be deemed to be a Mortgaged Property as of the date of the acquisition or refinance of such Real Estate by Borrower or such Subsidiary. As of the First 

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Amendment Date, 23-85 87th Street, 612 Wortman and 950 Bridgeport shall each be included as Mortgaged Properties, subject to the release thereof pursuant to §5.5. 

Multiemployer Plan.  Any multiemployer plan within the meaning of Section 3(37) of ERISA maintained or contributed to by REIT or any ERISA Affiliate.

Negative Pledge.  See §7.19(a)(i).

Net Disposition Proceeds.  See §5.5(e).

Net Income (or Loss).  With respect to any Person (or any asset of any Person) with respect to any period, the net income (or loss) of such Person (or attributable to such asset), determined in accordance with GAAP.

Net Offering Proceeds.  The total gross cash proceeds received by REIT or any of its Subsidiaries as a result of an Equity Offering or as a result of receipt of any contribution of capital less the customary and reasonable costs, expenses and discounts paid by REIT or such Subsidiary in connection therewith.

Net Operating Income.  For any Real Estate and for a given period, an amount equal to the sum of (a) the gross revenues from such Real Estate for such Real Estate for such period received in the ordinary course of business from tenants (excluding (i) pre-paid rents and revenues and security deposits except to the extent applied in satisfaction of tenants’ obligations for rent and (ii) all rents common area reimbursements and other income for such Real Estate received from tenants in default of obligations under their Lease or with respect to Leases as to which the tenant or any guarantor thereunder is subject to any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution, liquidation or similar debtor relief proceeding), minus (b) all expenses paid or accrued and related to the ownership, operation or maintenance of such Real Estate for such period, including, but not limited to, taxes, assessments and the like, insurance, utilities, payroll costs, maintenance, repair and landscaping expenses, marketing expenses, and general and administrative expenses (including an appropriate allocation for legal, accounting, advertising, marketing and other expenses incurred in connection with such Real Estate, but specifically excluding general overhead expenses of REIT and its Subsidiaries, any property management fees, debt service charges, income taxes, depreciation, amortization, other non-cash expenses, and any extraordinary, non-recurring expense associated with any financing, merger, acquisition, divestiture or other capital transaction) in each case, in connection with such Real Estate), minus (c) actual property management expenses of such Real Estate.

Non-Consenting Lender.  See §18.8.

Non-Defaulting Lender.  At any time, any Lender that is not a Defaulting Lender at such time.

Non-Recourse Exclusions.  With respect to any Non-Recourse Indebtedness of any Person, any usual and customary exclusions from the non‐recourse limitations governing such Indebtedness, including, without limitation, exclusions for claims that (a) are based on fraud, intentional or material misrepresentation, misapplication of funds, gross negligence or willful misconduct, (b) result from intentional mismanagement of or waste at the Real Property securing 

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such Non-Recourse Indebtedness, (c) arise from the presence of Hazardous Substances on the Real Property securing such Non-Recourse Indebtedness, (d) are the result of any unpaid real estate taxes and assessments (whether contained in a loan agreement, promissory note, indemnity agreement or other document) or (e) result from the borrowing Subsidiary and/or its assets becoming the subject of a voluntary or involuntary bankruptcy, insolvency or similar proceeding.

Non-Recourse Indebtedness.  With respect to a Person, (a) Indebtedness for borrowed money in respect of which recourse for payment (except for Non‐Recourse Exclusions until a claim is made with respect thereto, and then such Indebtedness shall not constitute Non‐Recourse Indebtedness only to the extent of the amount of such claim) is contractually limited to specific assets of such Person encumbered by a Lien securing such Indebtedness or (b) if such Person is a Single Asset Entity, any Indebtedness solely of such Person. A loan secured by multiple properties owned by Single Asset Entities shall be considered Non-Recourse Indebtedness of such Single Asset Entities even if such Indebtedness is cross defaulted and cross collateralized with the loans to such other Single Asset Entities.

Notes.  Collectively, the Revolving Credit Notes, the Term Loan Notes and the Swing Loan Note.

Notice.  See §19.

Obligations.  All indebtedness, obligations and liabilities of the Borrower or any Guarantor to any of the Lenders or the Agent, individually or collectively, under this Agreement or any of the other Loan Documents or in respect of any of the Loans, the Notes or the Letters of Credit, or other instruments at any time evidencing any of the foregoing, whether existing on the date of this Agreement or arising or incurred hereafter, or whether arising before or after any bankruptcy or insolvency proceeding, direct or indirect, joint or several, absolute or contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, arising by contract, operation of law or otherwise. Without limiting any of the foregoing, the Obligations shall include the Borrower’s or any Guarantor’s obligations to pay, discharge and satisfy any Erroneous Payment Subrogation Rights.

OFAC.  Office of Foreign Asset Control of the Department of the Treasury of the United States of America, or any successor thereto carrying out similar functions.

Off-Balance Sheet Obligations.  Liabilities and obligations of REIT or any of its Subsidiaries or any other Person in respect of “off-balance sheet arrangements” (as defined in Item 303(a)(4)(ii) of Regulation S-K promulgated under the Securities Act, which REIT would be required to disclose in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of REIT's report on Form 10-Q or Form 10-K (or their equivalents) which REIT is required to file with the SEC or would be required to file if it were subject to the jurisdiction of the SEC (or any Governmental Authority substituted therefor).

Other Connection Taxes.  With respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising solely from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security 

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interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

Other Taxes.  All present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to §4.14 as a result of costs sought to be reimbursed pursuant to §4.3).

Outstanding.  With respect to the Loans, the aggregate unpaid principal thereof as of any date of determination.  With respect to Letters of Credit, the aggregate undrawn face amount of issued Letters of Credit.

Participant Register.  See §18.4.

Patriot Act.  The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, as the same may be amended from time to time, and corresponding provisions of future laws.

PBGC.  The Pension Benefit Guaranty Corporation created by Section 4002 of ERISA and any successor entity or entities having similar responsibilities.

Permits.  With respect to any Person, any permit, approval, authorization, license, registration, certificate, concession, grant, franchise, variance or permission from, and any other contractual obligations with, any Governmental Authority, in each case whether or not having the force of law and applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

Permitted Liens.  Liens, security interests and other encumbrances permitted by §8.2.

Person.  Any individual, corporation, limited liability company, partnership, trust, unincorporated association, business, or other legal entity, and any government or any governmental agency or political subdivision thereof.

Plan Assets.  Assets of any employee benefit plan subject to Part 4, Subtitle B, Title I of ERISA.

Preferred Distributions.  With respect to any period and without duplication, all Distributions paid, declared but not yet paid or otherwise due and payable during such period on Preferred Securities issued by REIT or any of its Subsidiaries.  Preferred Distributions shall not include dividends or distributions:  (a) paid or payable solely in Equity Interests (other than Mandatorily Redeemable Stock) of identical class payable to holders of such class of Equity Interests; (b) paid or payable to the Borrower or any of its Subsidiaries; or (c) constituting or resulting in the redemption of Preferred Securities, other than scheduled redemptions not constituting balloon, bullet or similar redemptions in full.

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Preferred Securities.  With respect to any Person, Equity Interests in such Person which are entitled to preference or priority over any other Equity Interest in such Person in respect of the payment of dividends or distribution of assets upon liquidation, or both.

Public Lender.  See §7.4.

QFC. QFC shall have the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

QFC Credit Support. See §35.

Real Estate.  All real property, including, without limitation, the Mortgaged Properties, at the time of determination then owned or leased (as lessee or sublessee) in whole or in part or operated by REIT or any of its Subsidiaries, or an Unconsolidated Affiliate of the Borrower and which is located in the United States of America or the District of Columbia.

Recipient.  The Agent and any Lender.

Record.  The grid attached to any Note, or the continuation of such grid, or any other similar record, including computer records, maintained by the Agent with respect to any Loan referred to in such Note.

Recourse Indebtedness.  As of any date of determination, any Indebtedness (whether secured or unsecured) which is recourse to REIT or any of its Subsidiaries.  Recourse Indebtedness shall not include Non‐Recourse Indebtedness, but shall include any Non-Recourse Exclusions at such time a written claim is made with respect thereto.

Register.  See §18.2.

REIT.  GTJ REIT, Inc., a Maryland  corporation.

REIT Status.  With respect to a Person, its status as a real estate investment trust as defined in Section 856(a) of the Code.

Related Fund.  With respect to any Lender which is a fund that invests in loans, any Affiliate of such Lender or any other fund that invests in loans that is managed by the same investment advisor as such Lender or by an Affiliate of such Lender or such investment advisor.

Release.  Any releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, disposing or dumping (other than the storing of materials in reasonable quantities to the extent necessary for the operation of property in the ordinary course of business, and in any event in compliance with all Environmental Laws) of Hazardous Substances.

Relevant Governmental Body. The Federal Reserve Board or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board or the Federal Reserve Bank of New York, or any successor thereto.

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Rent Roll.  A report prepared by the Borrower showing for all Real Estate, owned or leased by the Borrower or its Subsidiaries, its occupancy, lease expiration dates, lease rent and other information, including, without limitation, identification of vacant units and market rents, in substantially the form presented to the Agent prior to the date hereof or in such other form as may be reasonably acceptable to the Agent.

Representative.  See §14.16.

Required Lenders.  As of any date, the Lender or Lenders whose aggregate Commitment Percentage is equal to or greater than sixty-six and 7/10 percent (66.7%) of the Total Commitment; provided that in determining said percentage at any given time, all then existing Defaulting Lenders will be disregarded and excluded and the Commitment Percentages of the Lenders shall be redetermined for voting purposes only to exclude the Commitment Percentages of such Defaulting Lenders; provided that if there are three (3) or fewer Lenders, then Required Lenders shall mean two (2) Lenders that are Non-Defaulting Lenders (or if there shall not be two (2) Lenders that are Non-Defaulting Lenders, then such fewer number of Lenders that are Non-Defaulting Lenders.

Required Revolving Credit Lenders.  As of any date, the Revolving Credit Lender or Revolving Credit Lenders whose aggregate Revolving Credit Commitment Percentage is equal to or greater than sixty-six and 7/10 percent (66.7%) of the Total Revolving Credit Commitment; provided that in determining said percentage at any given time, all then existing Defaulting Lenders will be disregarded and excluded and the Revolving Credit Commitment Percentages of the Revolving Credit Lenders shall be redetermined for voting purposes only to exclude the Revolving Credit Commitment Percentages of such Defaulting Lenders; provided that if there are three (3) or fewer Revolving Credit Lenders, then Required Revolving Credit Lenders shall mean two (2) Revolving Credit Lenders that are Non-Defaulting Lenders (or if there shall not be two (2) Revolving Credit Lenders that are Non-Defaulting Lenders, then such fewer number of Revolving Credit Lenders that are Non-Defaulting Lenders.

Required Term Loan Lenders.  As of any date, the Term Loan Lender or Term Loan Lenders whose aggregate Term Loan Commitment Percentage is equal to or greater than sixty-six and 7/10 percent (66.7%) of the Total Term Loan Credit Commitment; provided that in determining said percentage at any given time, all then existing Defaulting Lenders will be disregarded and excluded and the Term Loan Commitment Percentages of the Term Loan Lenders shall be redetermined for voting purposes only to exclude the Term Loan Commitment Percentages of such Defaulting Lenders; provided that if there are three (3) or fewer Term Loan Lenders, then Required Term Loan Lenders shall mean two (2) Term Loan Lenders that are Non-Defaulting Lenders (or if there shall not be two (2) Term Loan Lenders that are Non-Defaulting Lenders, then such fewer number of Term Loan Lenders that are Non-Defaulting Lenders.

Reserve Percentage.  For any Interest Period, that percentage which is specified three (3) Business Days before the first day of such Interest Period by the Board of Governors of the Federal Reserve System (or any successor) or any other Governmental Authority with jurisdiction over the Agent or any Lender for determining the maximum reserve requirement (including, but not limited to, any marginal reserve requirement) for the Agent or any Lender with respect to liabilities constituting of or including (among other liabilities) Eurocurrency liabilities 

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in an amount equal to that portion of the Loan affected by such Interest Period and with a maturity equal to such Interest Period.

Resolution Authority. An EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

Revolving Credit Base Rate Loans.  Revolving Credit Loans bearing interest calculated by reference to the Base Rate.

Revolving Credit Commitment.  With respect to each Revolving Credit Lender, the amount set forth on Schedule 1.1 hereto as the amount of such Revolving Credit Lender’s Revolving Credit Commitment to make or maintain Revolving Credit Loans to the Borrower, and to participate in Letters of Credit for the account of the Borrower, as the same may be changed from time to time in accordance with the terms of this Agreement.

Revolving Credit Commitment Percentage.  With respect to each Revolving Credit Lender, the percentage set forth on Schedule 1.1 hereto as such Revolving Credit Lender’s percentage of the Total Revolving Credit Commitment, as the same may be changed from time to time in accordance with the terms of this Agreement; provided that if the Total Revolving Credit Commitment has been terminated as provided in this Agreement, then the Revolving Credit Commitment Percentage of each Revolving Credit Lender shall be determined based on the Revolving Credit Commitment Percentage of such Revolving Credit Lender immediately prior to such termination and after giving effect to any subsequent assignments made pursuant to the terms hereof.

Revolving Credit Extension Request.  See §2.12(a).

Revolving Credit Lenders.  Collectively, the Lenders which have a Revolving Credit Commitment; the initial Revolving Credit Lenders being identified on Schedule 1.1 hereto.

Revolving Credit Loan or Loans.  An individual Revolving Credit Loan or the aggregate Revolving Credit Loans, as the case may be, in the maximum principal amount of the Total Revolving Credit Commitment to be made by the Revolving Credit Lenders hereunder as more particularly described in §2.  Without limiting the foregoing, Revolving Credit Loans shall also include Revolving Credit Loans made pursuant to §2.10(f).

Revolving Credit Maturity Date.  August 5, 2025, as such date may be extended as provided in §2.12(a), or such earlier date on which the Revolving Credit Loans shall become due and payable pursuant to the terms hereof.

Revolving Credit Notes.  See §2.1(b).

Sanctions Laws and Regulations.  Any applicable sanctions, prohibitions or requirements imposed by any applicable executive order or by any applicable sanctions program administered by OFAC, the United States Department of State, the Office of the United States Treasury, the United Nations Security Council, the European Union or Her Majesty’s Treasury.

S&P.  Standard & Poor’s Ratings Group, and any successor thereto.

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SEC.  The federal Securities and Exchange Commission.

Second Extension Option.  See §2.12(a).

Secured Indebtedness.  With respect to REIT and its Subsidiaries as of any given date, the aggregate principal amount of all Indebtedness of such Persons outstanding at such date and that is secured in any manner by any Lien.  Secured Indebtedness shall not include the Obligations.

Secured Recourse Indebtedness.  As of any date of determination, any Secured Indebtedness which is recourse to REIT or any of its Subsidiaries.  Secured Recourse Indebtedness shall not include the Obligations.

Securities Act.  The Securities Act of 1933, as amended from time to time, together with all rules and regulations issued thereunder.

Security Documents.  Collectively, the Joinder Agreements, the Assignment of Interests, the Acknowledgments, the Mortgages, the Assignments of Leases and Rents, the Cash Collateral Agreement, the Indemnity Agreement, the Guaranty, the UCC-1 financing statements and any further collateral assignments to the Agent for the benefit of the Lenders.

Single Asset Entity.  A bankruptcy remote, single purpose entity which (i) is a Subsidiary of the Borrower, (ii) is not a Subsidiary Guarantor that owns a Mortgaged Property or an owner of a direct or indirect interest in a Subsidiary Guarantor that owns a Mortgaged Property, and (iii) owns real property and related assets which are security for Indebtedness of such entity, and which Indebtedness does not constitute Indebtedness of any other Person except as provided in the definition of Non‐Recourse Indebtedness (except for Non‐Recourse Exclusions).

SOFR.  A rate equal to the secured overnight financing rate administered by the SOFR Administrator. 

SOFR Administrator.  The Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate). 

SOFR Administrator’s Website.  The website of the Federal Reserve Bank of New York currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.  

SOFR Business Day.  Any day except for (i) a Saturday, (ii) a Sunday or (iii) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities. 

SOFR Determination Day.  The meaning specified in the definition of “Daily Simple SOFR”. 

SOFR Index Adjustment.  For any calculation with respect to a Daily Simple SOFR Loan or a Term SOFR Loan, a percentage equal to 0.10% per annum. 

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SOFR Rate Day.  The meaning specified in the definition of “Daily Simple SOFR”. 

SOFR Rate Loan.  Each Loan bearing interest at a rate based upon (a) Adjusted Term SOFR (other than pursuant to clause (iii) of the definition of “Base Rate”) or (b) Adjusted Daily Simple SOFR. 

SOFR Rate Revolving Credit Loans. Revolving Credit Loans bearing interest calculated by references to Adjusted Daily Simple SOFR or Adjusted Term SOFR.

SOFR Rate Term Loans. Term Loans bearing interest calculated by references to Adjusted Daily Simple SOFR or Adjusted Term SOFR.

Stabilized Property.  A completed Industrial Property (a) on which all improvements related to the development of such Real Estate (other than tenant improvements) have been substantially completed and which has an occupancy rate of at least eighty-five percent (85.0%) for one calendar quarter, or (b) as to which four (4) calendar quarters have elapsed from the receipt of the certificate of occupancy for such project.  A property may also become a Stabilized Property as provided in the definition of Development Property.  Once a property becomes a Stabilized Property under this Agreement, it shall remain a Stabilized Property. 

State.  A state of the United States of America and the District of Columbia.

Subordination of Management Agreement.  An agreement pursuant to which a manager of any Mortgaged Property subordinates its rights under a Management Agreement to the Loan Documents, as the same may be modified, amended, restated or ratified, such agreement to be in the form and substance satisfactory to Agent.

Subsidiary.  For any Person, any corporation, partnership, limited liability company or other entity of which at least a majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other persons performing similar functions of such corporation, partnership, limited liability company or other entity (without regard to the occurrence of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person, and shall include all Persons the accounts of which are consolidated with those of such Person pursuant to GAAP.  Notwithstanding any ownership interest in the Borrower, the Borrower shall at all times be considered a Subsidiary of REIT.

Subsidiary Guarantor.  Each Person, other than REIT and General Partner, that is a party to the Guaranty as of the First Amendment Date and each Additional Guarantor.

Supported QFC. See §35.

Survey.  An instrument survey of each parcel of Real Estate prepared by a registered land surveyor, certified to Agent, which shall show the location of all buildings, structures, easements and utility lines on such property, shall be sufficient to remove the standard survey exception from the relevant Title Policy, shall show that all buildings and structures are within the lot lines of such Real Estate and shall not show any encroachments by others (or to the extent any 

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encroachments are shown, such encroachments shall be acceptable to the Agent in its reasonable discretion), shall show rights of way, adjoining sites, establish building lines and street lines, the distance to and names of the nearest intersecting streets and such other details as the Agent may reasonably require; and shall show whether or not such Real Estate is located in a flood hazard district as established by the Federal Emergency Management Agency or any successor agency or is located in any flood plain, flood hazard or wetland protection district established under federal, state or local law and shall otherwise be in form and substance reasonably satisfactory to the Agent.

Swing Loan.  See §2.5(a).

Swing Loan Commitment.  An amount equal to Ten Million and No/100 Dollars ($10,000,000.00), as the same may be changed from time to time in accordance with the terms of this Agreement.

Swing Loan Lender.  KeyBank, in its capacity as Swing Loan Lender and any successor thereof.

Swing Loan Note.  See §2.5(b).

Taking.  The taking or appropriation (including by deed in lieu of condemnation) of any Mortgaged Property, or any part thereof or interest therein, whether permanently or temporarily, for public or quasi-public use under the power of eminent domain, by reason of any public improvement or condemnation proceeding, or in any other manner or any damage or injury or diminution in value through condemnation, inverse condemnation or other exercise of the power of eminent domain.

Taxes.  All present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

Term Base Rate Loans.  The Term Loans bearing interest by reference to the Base Rate.

Term Loan or Term Loans.  An individual Term Loan or the aggregate Term Loans, as the case may be, made by the Term Loan Lenders hereunder.

Term Loan Commitment.  With respect to each Term Loan Lender, the amount set forth on Schedule 1.1 hereto as the amount of such Term Loan Lender’s Term Loan Commitment to make Term Loans to the Borrower on the Closing Date or on any Commitment Increase Date, as the case may be, as the same may be changed from time to time in accordance with the terms of this Agreement.

Term Loan Commitment Percentage.  With respect to each Term Loan Lender, the percentage set forth on Schedule 1.1 hereto as such Term Loan Lender’s percentage of the aggregate Term Loan to the Borrower, as the same may be changed from time to time in accordance with the terms of this Agreement; provided that with respect to any class of Term Loans, upon the funding of the Commitments of such class of Term Loans, the Commitment Percentage of such Term Loans with respect to each Lender shall be the percentage that each 

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Lender’s aggregate Outstanding Term Loans of such class represent with respect to the aggregate Outstanding Term Loans of such class.

Term Loan Extension Request.  See §2.12(b).

Term Loan Lenders.  Collectively, the Lenders which have a Term Loan Commitment; the initial Term Loan Lenders being identified on Schedule 1.1 hereto.

Term Loan Maturity Date.  August 5, 2026, as such date may be extended as provided in §2.12(b), or such earlier date on which the Term Loans shall become due and payable pursuant to the terms hereof.

Term Loan Note.  A promissory note executed by the Borrower in favor of a Term Loan Lender in the principal face amount equal to such Term Loan Lender’s Term Loan Commitment, in substantially the form of Exhibit B-2 hereto.

Term SOFR.  (a) For any calculation with respect to a Term SOFR Loan, the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Period on the day (such day, the “Lookback Day”) that is two SOFR Business Days prior to the first day of such Interest Period (and rounded in accordance with the Agent’s customary practice), as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on any Lookback Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding SOFR Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding SOFR Business Day is not more than three SOFR Business Days prior to such Lookback Day, and (b) for any calculation with respect to a Base Rate Loan, the Term SOFR Reference Rate for a tenor of one month on the day that is two SOFR Business Days prior to the date the Base Rate is determined, subject to the proviso provided above.

Term SOFR Administrator.  CME (or a successor administrator of the Term SOFR Reference Rate, as selected by the Agent in its reasonable discretion). 

Term SOFR  Loans.  The Loans bearing interest at a rate based upon Adjusted Term SOFR (other than pursuant to clause (iii) of the definition of Base Rate).

Term SOFR Reference Rate.  The forward-looking term rate based on SOFR.

Title Insurance Company.  Any title insurance company or companies approved by the Agent and the Borrower.

Title Policy.  With respect to each of the Mortgaged Properties, an ALTA standard form title insurance policy (or, if such form is not available, an equivalent, legally promulgated form of mortgagee title insurance policy reasonably acceptable to the Agent) issued by a Title Insurance Company (with such reinsurance as the Agent may reasonably require, any such reinsurance to be with direct access endorsements to the extent available under applicable law) in 

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an amount as the Agent may reasonably require based upon the fair market value of the applicable Mortgaged Property insuring the priority of the Mortgage thereon and that the Borrower or a Subsidiary Guarantor, as applicable, holds marketable or indefeasible (with respect to Texas) fee simple title or a valid and subsisting leasehold interest to such parcel, subject only to the encumbrances acceptable to Agent in its reasonable discretion and which shall not contain standard exceptions for mechanics liens, persons in occupancy (other than tenants as tenants only under Leases) or matters which would be shown by a survey, shall not insure over any matter except to the extent that any such affirmative insurance is acceptable to the Agent in its reasonable discretion, and shall contain (a) a revolving credit endorsement and (b) such other endorsements and affirmative insurance as the Agent may reasonably require and is available in the State in which the Mortgaged Property is located, including but not limited to (i) a comprehensive endorsement, (ii) a variable rate of interest endorsement, (iii) a usury endorsement, (iv) a doing business endorsement, (v) an ALTA form 3.1 zoning endorsement, (vi) a “tie-in” endorsement relating to all Title Policies issued by such Title Insurance Company in respect of other Mortgaged Properties, (vii) “first loss” and “last dollar” endorsements, and (viii) a utility location endorsement; provided, however, that with respect to a Mortgaged Property as to which Agent has not yet recorded the Mortgage, the “Title Policy” shall be an owner’s policy of title insurance, in a form satisfactory to the Agent, containing only exceptions satisfactory to the Agent, supplemented by a current “date down” or “nothing further” certificate (or if such endorsement or certificate is not available a current mortgagee’s title commitment in favor of the Agent) provided by an issuer satisfactory to the Agent, evidencing the state of title to the Mortgaged Property, as of a date not earlier than thirty (30) days prior to delivery thereof to the Agent or such later date as may be required by any other provision hereof (it being acknowledged that a Title Policy relating to a Mortgaged Property shall not be considered in full force and effect if such a current satisfactory supplement has not been delivered within a period of one year).

Titled Agents.  The Arranger, and any syndication agent or documentation agent.

Total Commitment.  The sum of the Total Revolving Credit Commitment and the Total Term Loan Commitment, as each is in effect from time to time.  As of the First Amendment Date, the Total Commitment is Ninety Million and No/100 Dollars ($90,000,000.00).  The Total Commitment may increase in accordance with §2.11.

Total Revolving Credit Commitment.  The sum of the Revolving Credit Commitments of the Revolving Credit Lenders, as in effect from time to time.  As of the First Amendment Date, the Total Revolving Credit Commitment is Forty Million and No/100 Dollars ($40,000,000.00).  The Total Revolving Credit Commitment may increase in accordance with §2.11.

Total Term Loan Commitment.  The sum of the Term Loan Commitments of the Term Loan Lenders, as in effect from time to time.  As of the First Amendment Date, the Total Term Loan Commitment is Fifty Million and No/100 Dollars ($50,000,000.00).  The Total Term Loan Commitment may increase in accordance with §2.11.

Type.  Any type of Loan determined with respect to the interest option applicable thereto, which in each case shall be a Base Rate Loan, a Daily Simple SOFR Loan or a Term SOFR Loan.

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UK Financial Institution. Any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended form time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any Person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

UK Resolution Authority. The Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

Unadjusted Benchmark Replacement. The applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

Unconsolidated Affiliate.  In respect of any Person, any other Person in whom such Person holds an Investment, which Investment is accounted for in the financial statements of such Person on an equity basis of accounting and whose financial results would not be consolidated under GAAP with the financial results of such first Person on the consolidated financial statements of such first Person if such financial statements were prepared in accordance with the full consolidation method of GAAP as of such date.

Unhedged Variable Rate Debt.  Any Indebtedness with respect to which the interest is not fixed (or hedged to a fixed rate) for the entire term of such Indebtedness to maturity.

Unpledgeable Interest.  Any Equity Interest of Borrower in a Subsidiary or Unconsolidated Affiliate, which Equity Interests may not be pledged as security to any Person pursuant to restrictions contained in (a) any document, instrument or agreement evidencing Secured Indebtedness permitted by this Agreement, (b) such Subsidiary’s or Unconsolidated Affiliate’s organizational documents included as a condition to the extension of such Secured Indebtedness, or (c) any joint venture agreement with an unaffiliated third Person (provided that any portion of such Equity Interest that is not so restricted shall not be considered an Unpledgeable Interest).

Unrestricted Cash and Cash Equivalents.  As of any date of determination, the sum of (a) the aggregate amount of Unrestricted cash and (b) the aggregate amount of Unrestricted Cash Equivalents (valued at fair market value).  As used in this definition, “Unrestricted” means the specified asset is readily available for the satisfaction of any and all obligations of such Person and is not subject to any Lien, claim, cash trap, restriction, escrow or reserve.  For the avoidance of doubt, Unrestricted Cash and Cash Equivalents shall not include any tenant security deposits or other restricted deposits.

Unused Fee.  See §2.3.

Unused Fee Percentage.  With respect to any day during a calendar quarter, (i) 0.15% per annum if the sum of the Loans and the face amount of Letters of Credit Outstanding on such day is 50% or more of the Total Commitment, or (ii) 0.20% per annum if the sum of the Loans and the face amount of Letters of Credit Outstanding on such day is less than 50% of the Total Commitment.

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U.S. Person.  Any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.

U.S. Special Resolution Regimes. See §35.

U.S. Tax Compliance Certificate.  See §4.3(g)(ii)(B)(iii).

Wholly-Owned Subsidiary.  As to the Borrower or REIT, any Subsidiary of the Borrower or REIT that is directly or indirectly owned one hundred percent (100%) by the Borrower or REIT, respectively.

Withholding Agent.  The REIT, the Borrower, any other Guarantor and the Agent, as applicable.

Write-Down and Conversion Powers.  (a) With respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that Person or any other Person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

	
 
	
§1.2
	
Rules of Interpretation

.

(a)A reference to any document or agreement shall include such document or agreement as amended, modified, supplemented or restated from time to time in accordance with its terms and the terms of this Agreement.

(b)The singular includes the plural and the plural includes the singular.

(c)A reference to any law includes any amendment or modification of such law.

(d)A reference to any Person includes its permitted successors and permitted assigns (and each Division Successor shall be treated as the Dividing Person in existence immediately prior to such Division).

(e)Accounting terms not otherwise defined herein have the meanings assigned to them by GAAP applied on a consistent basis by the accounting entity to which they refer.

(f)The words “include”, “includes” and “including” are not limiting.

(g)The words “approval” and “approved”, as the context requires, means an approval in writing given to the party seeking approval after full and fair disclosure to the party 

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giving approval of all material facts necessary in order to determine whether approval should be granted.

(h)All terms not specifically defined herein or by GAAP, which terms are defined in the Uniform Commercial Code as in effect in the State of New York, have the meanings assigned to them therein.

(i)Reference to a particular “§”, refers to that section of this Agreement unless otherwise indicated.

(j)The words “herein”, “hereof”, “hereunder” and words of like import shall refer to this Agreement as a whole and not to any particular section or subdivision of this Agreement.

(k)In the event of any change in GAAP after the date hereof or any other change in accounting procedures pursuant to §7.3 which would affect the computation of any financial covenant, ratio or other requirement set forth in any Loan Document, then upon the request of the Borrower or the Agent, the Borrower, the Guarantors, the Agent and the Lenders shall negotiate promptly, diligently and in good faith in order to amend the provisions of the Loan Documents such that such financial covenant, ratio or other requirement shall continue to provide substantially the same financial tests or restrictions of the Borrower and the Guarantors as in effect prior to such accounting change, as determined by the Required Lenders in their good faith judgment.  Until such time as such amendment shall have been executed and delivered by the Borrower, the Guarantors, the Agent and the Required Lenders, such financial covenants, ratio and other requirements, and all financial statements and other documents required to be delivered under the Loan Documents, shall be calculated and reported as if such change had not occurred.

(l)Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made (i) without giving effect to any election under Accounting Standards Codification 825-10-25 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the REIT or any of its Subsidiaries at “fair value”, as defined therein, (ii) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof

(m)To the extent that any of the representations and warranties contained in this Agreement or any other Loan Document is qualified by “Material Adverse Effect” or any other materiality qualifier, then any further qualifier as to representations and warranties being true and correct “in all material respects” contained elsewhere in the Loan Documents shall not apply with respect to any such representations and warranties. 

(n)The interest rate on Loans denominated in Dollars may be determined by reference to a benchmark rate that is, or may in the future become, the subject of regulatory reform 

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or cessation.  The Agent does not warrant or accept responsibility for, and shall not have any liability with respect to (a) the continuation of, administration of, submission of, calculation of or any other matter related to the Base Rate, Daily Simple SOFR, Adjusted Daily Simple SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, or any component definition thereof or rates referred to in the definition thereof, or any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement) will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, the Base Rate, Daily Simple SOFR, Adjusted Daily Simple SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes.  The Agent and its affiliates or other related entities may engage in transactions that affect the calculation of the Base Rate, Daily Simple SOFR, Adjusted Daily Simple SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower.  The Agent may select information sources or services in its reasonable discretion to ascertain the Base Rate, Daily Simple SOFR, Adjusted Daily Simple SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR or any other Benchmark, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.  The Agent will, in keeping with industry practice, continue using its current rounding practices in connection with the Base Rate, Daily Simple SOFR, Adjusted Daily Simple SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR.  In connection with the use or administration of Daily Simple SOFR and Term SOFR, the Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.  The Agent will promptly notify the Borrower and the Lenders of the effectiveness of any Conforming Changes in connection with the use or administration of Daily Simple SOFR and Term SOFR. 

	
§2.
	
THE CREDIT FACILITY

.

	
 
	
§2.1
	
Revolving Credit Loans

.

(a)Subject to the terms and conditions set forth in this Agreement, each of the Revolving Credit Lenders severally agrees to lend to the Borrower, and the Borrower may borrow (and repay and reborrow) from time to time between the Closing Date and the Revolving Credit Maturity Date upon notice by the Borrower to the Agent given in accordance with §2.7, such sums as are requested by the Borrower for the purposes set forth in §2.9 up to a maximum aggregate principal amount outstanding (after giving effect to all amounts requested) at any one time equal to the sum of such Revolving Credit Lender’s Revolving Credit Commitment; provided, that, in all events no Default or Event of Default shall have occurred and be continuing; and provided, further, that the outstanding principal amount (after giving effect to all amounts requested) of the 

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Revolving Credit Loans, Term Loans, Swing Loans and Letter of Credit Liabilities shall not at any time exceed the Total Commitment.  The Revolving Credit Loans shall be made pro rata in accordance with each Revolving Credit Lender’s Revolving Credit Commitment Percentage.  Each request for a Revolving Credit Loan hereunder shall constitute a representation and warranty by the Borrower that all of the conditions required of the Borrower set forth in §§10 and 11 have been satisfied on the date of such request.  The Agent may assume that the conditions in §§10 and 11 have been satisfied unless it receives prior written notice from a Revolving Credit Lender that such conditions have not been satisfied.  No Revolving Credit Lender shall have any obligation to make Revolving Credit Loans to the Borrower or participate in Letter of Credit Liabilities in the maximum aggregate principal outstanding balance of more than the lesser of the amount equal to its Revolving Credit Commitment Percentage of the Revolving Credit Commitments and the principal face amount of its Revolving Credit Note.  Notwithstanding anything in this Agreement to the contrary, the Borrower shall not be entitled to obtain a disbursement of any Revolving Credit Loan or a Letter of Credit for, and shall not use any of the proceeds of any Revolving Credit Loan or any Letter of Credit, directly or indirectly, in whole or in part, to acquire Real Estate or an interest therein or to refinance indebtedness secured by such Real Estate, unless simultaneously therewith the terms of §5.3 are complied with and Agent receives the documents and items required thereunder.

(b)The Revolving Credit Loans shall be evidenced by separate promissory notes of the Borrower in substantially the form of Exhibit B-1 hereto (collectively, the “Revolving Credit Notes”), dated of even date with this Agreement (except as otherwise provided in §18.3) and completed with appropriate insertions.  One Revolving Credit Note shall be payable to the order of each Revolving Credit Lender in the principal amount equal to such Revolving Credit Lender’s Revolving Credit Commitment or, if less, the outstanding amount of all Revolving Credit Loans made by such Revolving Credit Lender, plus interest accrued thereon, as set forth below.  The Borrower irrevocably authorizes the Agent to make or cause to be made, at or about the time of the Drawdown Date of any Revolving Credit Loan or the time of receipt of any payment of principal thereof, an appropriate notation on the Agent’s Record reflecting the making of such Revolving Credit Loan or (as the case may be) the receipt of such payment.  The outstanding amount of the Revolving Credit Loans set forth on the Agent’s Record shall be prima facie evidence of the principal amount thereof owing and unpaid to each Revolving Credit Lender, but the failure to record, or any error in so recording, any such amount on the Agent’s Record shall not limit or otherwise affect the obligations of the Borrower hereunder or under any Revolving Credit Note to make payments of principal of or interest on any Revolving Credit Note when due.  By delivery of this Agreement and any Revolving Credit Note, there shall not be deemed to have occurred, and there has not otherwise occurred, any payment, satisfaction or novation of the Indebtedness evidenced by the Existing Credit Agreement or the “Revolving Credit Notes” described in the Existing Credit Agreement, which Indebtedness is instead allocated among the Revolving Credit Lenders as of the date hereof in accordance with their respective Revolving Credit Commitment Percentages, and is evidenced by this Agreement and the Revolving Credit Notes, and the Revolving Credit Lenders shall as of the date hereof make such adjustments to the outstanding Revolving Credit Loans of such Revolving Credit Lenders so that such outstanding Revolving Credit Loans are consistent with their respective Revolving Credit Commitment Percentages.  Any and all Revolving Credit Notes or Swing Loan Notes issued on the Closing Date in connection with this Agreement to Lenders holding Revolving Credit Notes or Swing Loan 

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Notes issued under the Existing Credit Agreement replace and are in lieu of such Revolving Credit Notes or Swing Loan Notes issued under the Existing Credit Agreement.

	
 
	
§2.2
	
Commitment to Lend Term Loan.  

(a)Subject to the terms and conditions set forth in this Agreement, each of the Term Loan Lenders severally agrees to lend to the Borrower on the Closing Date a Term Loan for the purposes set forth in §2.9 up to a maximum aggregate principal amount outstanding (after giving effect to all amounts requested) at any one time equal to the sum of such Term Loan Lender’s Term Loan Commitment; provided, that, in all events no Default or Event of Default shall have occurred and be continuing; and provided, further, that the outstanding principal amount (after giving effect to all amounts requested) of the Revolving Credit Loans, Term Loans, Swing Loans and Letter of Credit Liabilities shall not at any time exceed the Total Commitment.  Notwithstanding anything in this Agreement to the contrary, the Borrower shall not be entitled to obtain a disbursement of any Term Loan for, and shall not use any of the proceeds of any Term Loan, directly or indirectly, in whole or in part, to acquire Real Estate or an interest therein or to refinance indebtedness secured by such Real Estate, unless simultaneously therewith the terms of §5.3 are complied with and Agent receives the documents and items required thereunder.

(b)The Term Loans shall be evidenced by the Term Loan Notes, dated as of even date with this Agreement (except as otherwise provided in §2.11(c) and §18.3).  One Term Loan Note shall be payable to each Term Loan Lender in the principal amount equal to such Term Loan Lender’s Term Loan Commitment. Except for any additional Term Loans made as a result of any increase in the Total Term Loan Commitment pursuant to §2.11, the Borrower shall not have the right to draw down any Term Loans after the Closing Date.  Any additional Term Loans made as a result of any increase in the Total Term Loan Commitment pursuant to §2.11 shall be made on the applicable Commitment Increase Date and each Term Loan Lender which elects to increase its, or acquire, a Term Loan Commitment pursuant to §2.11 severally and not jointly agrees to make a Term Loan to the Borrower on such Commitment Increase Date in an amount equal to (a) with respect to any existing Term Loan Lender, the amount by which such Lender’s Term Loan Commitment increases on the applicable Commitment Increase Date, and (b) with respect to any new Term Loan Lender, the amount of such new Lender’s Term Loan Commitment, provided, that, in all events no Default or Event of Default shall have occurred and be continuing; and provided, further, that the outstanding principal amount (after giving effect to all amounts requested) of the Revolving Credit Loans, Term Loans, Swing Loans and Letter of Credit Liabilities shall not at any time exceed the Total Commitment.  No Term Loan Lender shall have any obligation to make Term Loans to the Borrower in a maximum aggregate principal outstanding balance of more than the lesser of the amount equal to its Term Loan Commitment Percentage of the Term Loan Commitments and the principal face amount of its Term Loan Note.

	
 
	
§2.3
	
Unused Fee

.  The Borrower agrees to pay to the Agent for the account of the Revolving Credit Lenders (other than a Defaulting Lender for such period of time as such Revolving Credit Lender is a Defaulting Lender) in accordance with their respective Revolving Credit Commitment Percentages a facility unused fee (the “Unused Fee”) calculated by multiplying the Unused Fee Percentage applicable to such day, calculated as a per diem rate, times the excess of the Total Revolving Credit Commitment over the outstanding principal amount of Revolving Credit 

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Loans, Swing Loans and the face amount of Letters of Credit Outstanding on such day.  The Unused Fee shall be payable quarterly in arrears on the first (1st) day of each calendar quarter for the immediately preceding calendar quarter or portion thereof, and on any earlier date on which the Revolving Credit Commitments shall be reduced or shall terminate as provided in §2.4, with a final payment on the Revolving Credit Maturity Date.

	
 
	
§2.4
	
Reduction and Termination of the Revolving Credit Commitments

.  The Borrower shall have the right at any time and from time to time upon five (5) Business Days’ prior written notice to the Agent to reduce the Total Revolving Credit Commitment, by $5,000,000.00 or an integral multiple of $1,000,000.00 in excess thereof (provided that (X) such required notice and minimum amounts shall not apply to any reduction of the Total Revolving Credit Commitment pursuant to §5.5(e), and (Y) in no event shall the Total Revolving Credit Commitment be reduced in such manner to an amount less than $10,000,000.00) or to terminate entirely the Revolving Credit Commitments, whereupon the Revolving Credit Commitments of the Revolving Credit Lenders shall be reduced pro rata in accordance with their respective Revolving Credit Commitment Percentages of the amount specified in such notice or, as the case may be, terminated, any such termination or reduction to be without penalty except as otherwise set forth in §4.7; provided, however, that no such termination or reduction shall be permitted if, after giving effect thereto, the sum of Outstanding Revolving Credit Loans, the Outstanding Swing Loans and the Letter of Credit Liabilities would exceed the Revolving Credit Commitments of the Revolving Credit Lenders as so terminated or reduced.  Promptly after receiving any notice from the Borrower delivered pursuant to this §2.4, the Agent will notify the Revolving Credit Lenders of the substance thereof.  Any reduction of the Revolving Credit Commitments shall also result in a proportionate reduction (rounded to the next lowest integral multiple of $100,000.00) in the maximum amount of Swing Loans and Letters of Credit.  Upon the effective date of any such reduction or termination, the Borrower shall pay to the Agent for the respective accounts of the Revolving Credit Lenders the full amount of any fee under §2.3 then accrued on the amount of the reduction.  No reduction or termination of the Revolving Credit Commitments may be reinstated.

	
 
	
§2.5
	
Swing Loan Commitment

.

(a)Subject to the terms and conditions set forth in this Agreement, the Swing Loan Lender agrees to lend to the Borrower (the “Swing Loans”), and the Borrower may borrow (and repay and reborrow) from time to time between the Closing Date and the date which is five (5) Business Days prior to the Revolving Credit Maturity Date upon notice by the Borrower to the Swing Loan Lender given in accordance with this §2.5, such sums as are requested by the Borrower for the purposes set forth in §2.9 in an aggregate principal amount at any one time outstanding not exceeding the Swing Loan Commitment; provided that in all events (i) no Default or Event of Default shall have occurred and be continuing; and (ii) the outstanding principal amount of the Revolving Credit Loans, Term Loans and Swing Loans (after giving effect to all amounts requested) plus Letter of Credit Liabilities shall not at any time exceed the Total Commitment.  Notwithstanding anything to the contrary contained in this §2.5, the Swing Loan Lender shall not 

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be obligated to make any Swing Loan at a time when any other Revolving Credit Lender is a Defaulting Lender, unless the Swing Loan Lender is satisfied that the participation therein will otherwise be fully allocated to the Revolving Credit Lenders that are Non-Defaulting Lenders consistent with §2.13(c) and the Defaulting Lender shall not participate therein, except to the extent the Swing Loan Lender has entered into arrangements with the Borrower or such Defaulting Lender that are satisfactory to the Swing Loan Lender in its good faith determination to eliminate the Swing Loan Lender’s Fronting Exposure with respect to any such Defaulting Lender, including the delivery of cash collateral.  Swing Loans shall constitute “Revolving Credit Loans” for all purposes hereunder.  The funding of a Swing Loan hereunder shall constitute a representation and warranty by the Borrower that all of the conditions set forth in §§10 and 11 have been satisfied on the date of such funding.  The Swing Loan Lender may assume that the conditions in §§10 and 11 have been satisfied unless the Swing Loan Lender has received written notice from a Revolving Credit Lender that such conditions have not been satisfied.  Each Swing Loan shall be due and payable within one (1) Business Day of demand by Agent but in any event no later than five (5) Business Days of the date such Swing Loan was provided and the Borrower hereby agrees (to the extent not repaid as contemplated by §2.5(d)) to repay each Swing Loan on or before the date that is five (5) Business Days from the date such Swing Loan was provided.  A Swing Loan may not be refinanced with another Swing Loan.  There shall not be deemed to have occurred, and there has not otherwise occurred, any payment, satisfaction or novation of the indebtedness, if any, evidenced by the “Swing Loan Note,” as defined in the Existing Credit Agreement, which indebtedness is instead evidenced by the Swing Loan Note.

(b)The Swing Loans shall be evidenced by a separate promissory note of the Borrower in substantially the form of Exhibit C hereto (the “Swing Loan Note”), dated the date of this Agreement and completed with appropriate insertions.  The Swing Loan Note shall be payable to the order of the Swing Loan Lender in the principal face amount equal to the Swing Loan Commitment and shall be payable as set forth below.  The Borrower irrevocably authorizes the Swing Loan Lender to make or cause to be made, at or about the time of the Drawdown Date of any Swing Loan or at the time of receipt of any payment of principal thereof, an appropriate notation on the Swing Loan Lender’s Record reflecting the making of such Swing Loan or (as the case may be) the receipt of such payment.  The outstanding amount of the Swing Loans set forth on the Swing Loan Lender’s Record shall be prima facie evidence of the principal amount thereof owing and unpaid to the Swing Loan Lender, but the failure to record, or any error in so recording, any such amount on the Swing Loan Lender’s Record shall not limit or otherwise affect the obligations of the Borrower hereunder or under the Swing Loan Note to make payments of principal of or interest on any Swing Loan Note when due.

(c)The Borrower shall request a Swing Loan by delivering to the Swing Loan Lender a Loan Request executed by an Authorized Officer no later than 11:00 a.m.  (Cleveland time) on the requested Drawdown Date specifying the amount of the requested Swing Loan (which shall be in the Minimum Loan Amounts) and providing the wire instructions for the delivery of the Swing Loan proceeds.  The Loan Request shall also contain the statements and certifications required by §2.7(a), (b) and (c).  Each such Loan Request shall be irrevocable and binding on the Borrower and shall obligate the Borrower to accept such Swing Loan on the Drawdown Date.  Notwithstanding anything herein to the contrary, a Swing Loan shall be a Base Rate Loan and shall bear interest at the Base Rate plus the Applicable Margin.  The proceeds of the Swing Loan will 

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be disbursed by wire by the Swing Loan Lender to the Borrower no later than 1:00 p.m.  (Cleveland time) on the Drawdown Date.

(d)The Swing Loan Lender shall, within two (2) Business Days after the Drawdown Date with respect to such Swing Loan, request each Revolving Credit Lender to make a Revolving Credit Loan pursuant to §2.1 in an amount equal to such Revolving Credit Lender’s Revolving Credit Commitment Percentage of the amount of the Swing Loan outstanding on the date such notice is given.  In the event that the Borrower does not notify the Agent in writing otherwise on or before noon (Cleveland Time) on the Business Day of the Drawdown Date with respect to such Swing Loan, the Agent shall notify the Revolving Credit Lenders that such Revolving Credit Loan shall be a Term SOFR Loan with an Interest Period of one (1) month, provided that the making of such Term SOFR Loan will not be in contravention of any other provision of this Agreement, or if the making of a Term SOFR Loan would be in contravention of this Agreement, then such notice shall indicate that such loan shall be a Base Rate Loan.  The Borrower hereby irrevocably authorizes and directs the Swing Loan Lender to so act on its behalf, and agrees that any amount advanced to the Agent for the benefit of the Swing Loan Lender pursuant to this §2.5(d) shall be considered a Revolving Credit Loan pursuant to §2.1.  Unless any of the events described in §§12.1(g), 12.1(h) or 12.1(i) shall have occurred (in which event the procedures of §2.5(e) shall apply), each Revolving Credit Lender shall make the proceeds of its Revolving Credit Loan available to the Swing Loan Lender for the account of the Swing Loan Lender at the Agent’s Head Office prior to 12:00 noon (Cleveland time) in funds immediately available no later than one (1) Business Day after the date such request was made by the Swing Loan Lender just as if the Revolving Credit Lenders were funding directly to the Borrower, so that thereafter such Obligations shall be evidenced by the Revolving Credit Notes.  The proceeds of such Revolving Credit Loan shall be immediately applied to repay the Swing Loans.

(e)If for any reason a Swing Loan cannot be refinanced by a Revolving Credit Loan pursuant to §2.5(d), each Revolving Credit Lender will, on the date such Revolving Credit Loan pursuant to §2.5(d) was to have been made, purchase an undivided participation interest in the Swing Loan in an amount equal to its Revolving Credit Commitment Percentage of such Swing Loan.  Each Revolving Credit Lender will immediately transfer to the Swing Loan Lender in immediately available funds the amount of its participation and upon receipt thereof the Swing Loan Lender will deliver to such Revolving Credit Lender a Swing Loan participation certificate dated the date of receipt of such funds and in such amount.

(f)The Agent shall notify the Borrower of any Revolving Credit Loans made pursuant to §2.5(d) or participations in any Swing Loan acquired pursuant to §2.5(e), and thereafter payments in respect of such Swing Loan shall be made to the Agent and not to the Swing Loan Lender.  Subject to §2.13, any amounts received by the Swing Loan Lender from the Borrower (or other party on behalf of the Borrower) in respect of a Swing Loan after receipt by the Swing Loan Lender of the proceeds of Revolving Credit Loans made pursuant to §2.5(d) with respect to such Swing Loan shall be remitted to the Agent, and be promptly remitted by the Agent to the Revolving Credit Lenders that shall have made such Revolving Credit Loans pursuant to §2.5(d) and to the Swing Loan Lender, as their interests may appear; provided, however, that in the event that such payment received by the Swing Loan Lender is required to be returned, such Revolving Credit Lender will return to the Swing Loan Lender any portion thereof previously distributed by the Swing Loan Lender to it.  Subject to §2.13, if at any time after the Swing Loan Lender has received 

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from any Revolving Credit Lender such Revolving Credit Lender’s participation interest in a Swing Loan, the Swing Loan Lender receives any payment on account thereof, the Swing Loan Lender will distribute to such Revolving Credit Lender its participation interest in such amount (appropriately adjusted in the case of interest payments to reflect the period of time during which such Revolving Credit Lender’s participating interest was outstanding and funded); provided, however, that in the event that such payment received by the Swing Loan Lender is required to be returned, such Revolving Credit Lender will return to the Swing Loan Lender any portion thereof previously distributed by the Swing Loan Lender to it.

(g)Each Revolving Credit Lender’s obligation to fund a Revolving Credit Loan as provided in §2.5(d) or to purchase participation interests pursuant to §2.5(e) shall be absolute and unconditional and shall not be affected by any circumstance, including, without limitation, (a) any setoff, counterclaim, recoupment, defense or other right which such Revolving Credit Lender or the Borrower may have against the Swing Loan Lender, the Borrower or anyone else for any reason whatsoever; (b) the occurrence or continuance of a Default or an Event of Default; (c) any adverse change in the condition (financial or otherwise) of REIT or any of its Subsidiaries; (d) any breach of this Agreement or any of the other Loan Documents by the Borrower or any Guarantor or any Lender; or (e) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.  Any portions of a Swing Loan not so purchased or converted may be treated by the Agent and the Swing Loan Lender as against such Revolving Credit Lender as a Revolving Credit Loan which was not funded by the non‐purchasing Revolving Credit Lender, thereby making such Lender a Defaulting Lender.  Each Swing Loan, once so sold or converted, shall cease to be a Swing Loan for the purposes of this Agreement, but shall be a Revolving Credit Loan made by each Revolving Credit Lender under its Revolving Credit Commitment.

	
 
	
§2.6
	
Interest on Loans

.

(a)Each Revolving Credit Base Rate Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending on the date on which such Revolving Credit Base Rate Loan is repaid or converted to a Revolving Credit Loan of another Type at the rate per annum equal to the sum of the Base Rate plus the Applicable Margin for Revolving Credit Base Rate Loans.

(b)Each Revolving Credit Loan that is (X) a Daily Simple SOFR Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending on the date on which such Daily Simple SOFR Loan is repaid or is converted to a Revolving Credit Loan of another Type at the rate per annum equal to the sum of Adjusted Daily Simple SOFR plus the Applicable Margin for SOFR Rate Revolving Credit Loans, and (Y) a Term SOFR Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending on the last day of each Interest Period with respect thereto at the rate per annum equal to the sum of Adjusted Term SOFR determined for such Interest Period plus the Applicable Margin for SOFR Rate Revolving Credit Loans.

(c)Each Term Base Rate Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending on the date on which such Term Base Rate Loan is repaid or is converted to a Loan of another Type at a rate per annum equal to the sum of the Base Rate plus the Applicable Margin for Term Base Rate Loans.

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(d)Each Term Loan that is (X) a Daily Simple SOFR Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending on the date on which such Daily Simple SOFR Loan is repaid or is converted to a Loan of another Type at the rate per annum equal to the sum of Adjusted Daily Simple SOFR plus the Applicable Margin for SOFR Rate Term Loans, and (Y) a Term SOFR Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending on the last day of each Interest Period with respect thereto at the rate per annum equal to the sum of Adjusted Term SOFR determined for such Interest Period plus the Applicable Margin for SOFR Rate Term Loans.

(e)The Borrower promises to pay in Dollars interest on each Loan in arrears on each Interest Payment Date with respect thereto and, with respect to the Revolving Credit Loans, on any earlier date on which the Revolving Credit Commitments shall terminate or be reduced as provided in §2.4.

(f)Base Rate Loans and SOFR Rate Loans may be converted to Loans of the other Type as provided in §4.1.

	
 
	
§2.7
	
Requests for Revolving Credit Loans

.  Except with respect to the initial Revolving Credit Loan on the Closing Date, if any, the Borrower shall give to the Agent written notice executed by an Authorized Officer in the form of Exhibit D hereto (or telephonic notice confirmed in writing in the form of Exhibit D hereto) of each Revolving Credit Loan requested hereunder (a “Loan Request”) by 11:00 a.m.  (Cleveland time) one (1) Business Day prior to the proposed Drawdown Date with respect to Revolving Credit Base Rate Loans and three (3) Business Days prior to the proposed Drawdown Date with respect to SOFR Rate Loans.  Each such notice shall specify with respect to the requested Revolving Credit Loan the proposed principal amount of such Revolving Credit Loan, the Type of Revolving Credit Loan, the initial Interest Period (if applicable) for such Revolving Credit Loan and the Drawdown Date.  Each such notice shall also contain (a) a general statement as to the purpose for which such advance shall be used (which purpose shall be in accordance with the terms of §2.9), and (b) a certification by the chief  executive officer, president or chief financial officer of the REIT that the Borrower and Guarantors are and will be in compliance with all covenants under the Loan Documents after giving effect to the making of such Revolving Credit Loan.  Promptly upon receipt of any such notice, the Agent shall notify each of the Revolving Credit Lenders thereof.  Each such Loan Request shall be irrevocable and binding on the Borrower and shall obligate the Borrower to accept the Revolving Credit Loan requested from the Revolving Credit Lenders on the proposed Drawdown Date.  Nothing herein shall prevent the Borrower from seeking recourse against any Revolving Credit Lender that fails to advance its proportionate share of a requested Revolving Credit Loan as required by this Agreement.  Each Loan Request shall be in the Minimum Loan Amounts; provided, however, that there shall be no more than ten (10) SOFR Rate Loans outstanding at any one time.

	
 
	
§2.8
	
Funds for Loans

.

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(a)Not later than 1:00 p.m.  (Cleveland time) on the proposed Drawdown Date of any Revolving Credit Loans or Term Loans, each of the Revolving Credit Lenders or Term Loan Lenders, as applicable, will make available to the Agent, at the Agent’s Head Office, in immediately available funds, the amount of such Lender’s Commitment Percentage of the amount of the requested Loans which may be disbursed pursuant to §2.1 or §2.2.  Upon receipt from each such Revolving Credit Lender or Term Loan Lender, as applicable, of such amount, and upon receipt of the documents required by §10 and §11 and the satisfaction of the other conditions set forth therein, to the extent applicable, the Agent will make available to the Borrower the aggregate amount of such Revolving Credit Loans or Term Loans made available to the Agent by the Revolving Credit Lenders or Term Loan Lenders, as applicable, by crediting such amount to the account of the Borrower maintained at the Agent’s Head Office.  The failure or refusal of any Revolving Credit Lender or Term Loan Lender to make available to the Agent at the aforesaid time and place on any Drawdown Date the amount of its Commitment Percentage of the requested Loans shall not relieve any other Revolving Credit Lender or Term Loan Lender from its several obligation hereunder to make available to the Agent the amount of such other Lender’s Commitment Percentage of any requested Loans, including any additional Revolving Credit Loans that may be requested subject to the terms and conditions hereof to provide funds to replace those not advanced by the Lender so failing or refusing.

(b)Unless the Agent shall have been notified by any Lender prior to the applicable Drawdown Date of any Revolving Credit Loans, or on the Closing Date or Commitment Increase Date (if applicable) with respect to any Term Loans, that such Lender will not make available to the Agent such Lender’s Revolving Credit Commitment Percentage of a proposed Revolving Credit Loan or such Lender’s Term Loan Commitment Percentage of a proposed Term Loan, the Agent may in its discretion assume that such Lender has made such Loan(s) available to the Agent in accordance with the provisions of this Agreement and the Agent may, if it chooses, in reliance upon such assumption make such Loan available to the Borrower, and such Lender shall be liable to the Agent for the amount of such advance.  If such Lender does not pay such corresponding amount upon the Agent’s demand therefor, the Agent will promptly notify the Borrower, and the Borrower shall promptly pay such corresponding amount to the Agent.  The Agent shall also be entitled to recover from the Lender or the Borrower, as the case may be, interest on such corresponding amount in respect of each day from the date such corresponding amount was made available by the Agent to the Borrower to the date such corresponding amount is recovered by the Agent at a per annum rate equal to (i) from the Borrower at the applicable rate for such Loan or (ii) from a Lender at the Federal Funds Effective Rate plus one percent (1%).

	
 
	
§2.9
	
Use of Proceeds

.  Subject to the following sentence, the Borrower will use the proceeds of the Loans solely for (a) payment of closing costs in connection with this Agreement, (b) repayment of Indebtedness, (c) acquisitions, development and capital improvements, (d) general corporate and working capital purposes, and (e) purchase contract deposits and, subject to §8.7, stock repurchases.

	
 
	
§2.10
	
Letters of Credit

.

(a)Subject to the terms and conditions set forth in this Agreement, at any time and from time to time from the Closing Date through the day that is ninety (90) days prior to the Revolving Credit Maturity Date, the Issuing Lender shall issue such Letters of Credit as the 

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Borrower may request upon the delivery of a written request in the form of Exhibit E hereto (a “Letter of Credit Request”) to the Issuing Lender, provided that (i) no Default or Event of Default shall have occurred and be continuing, (ii) upon issuance of such Letter of Credit, the Letter of Credit Liabilities shall not exceed the Letter of Credit Commitment, (iii) in no event shall the sum of the outstanding principal amount of the Revolving Credit Loans, Swing Loans and Letter of Credit Liabilities (after giving effect to any requested Letters of Credit) exceed the Total Revolving Credit Commitment, (iv) the conditions set forth in §§10 and 11 shall have been satisfied, and (v) in no event shall any amount drawn under a Letter of Credit be available for reinstatement or a subsequent drawing under such Letter of Credit.  Notwithstanding anything to the contrary contained in this §2.10, the Issuing Lender shall not be obligated to issue, amend, extend, renew or increase any Letter of Credit at a time when any other Revolving Credit Lender is a Defaulting Lender, unless the Issuing Lender is satisfied that the participation therein will otherwise be fully allocated to the Revolving Credit Lenders that are Non-Defaulting Lenders consistent with §2.13(c) and the Defaulting Lender shall have no participation therein, except to the extent the Issuing Lender has entered into arrangements with the Borrower or such Defaulting Lender which are satisfactory to the Issuing Lender in its good faith determination to eliminate the Issuing Lender’s Fronting Exposure with respect to any such Defaulting Lender, including the delivery of cash collateral.  The Issuing Lender may assume that the conditions in §§10 and 11 have been satisfied unless it receives written notice from a Revolving Credit Lender that such conditions have not been satisfied.  Each Letter of Credit Request shall be executed by an Authorized Officer of the Borrower.  The Issuing Lender shall be entitled to conclusively rely on such Person’s authority to request a Letter of Credit on behalf of the Borrower.  The Issuing Lender shall have no duty to verify the authenticity of any signature appearing on a Letter of Credit Request.  The Borrower assumes all risks with respect to the use of the Letters of Credit.  Unless the Issuing Lender and the Required Revolving Credit Lenders otherwise consent, the term of any Letter of Credit shall not exceed a period of time commencing on the issuance of the Letter of Credit and ending one year after the date of issuance thereof (or such longer period as Issuing Lender may approve); provided, however, that a Letter of Credit may contain a provision providing for the automatic extension of the expiration date in the absence of a notice of non-renewal from the Issuing Lender but in no event shall any such provision permit the extension of the expiration date of such Letter of Credit beyond the Revolving Credit Maturity Date; provided further, that a Letter of Credit may, as a result of its express terms or as the result of the effect of an automatic extension provision, have an expiration of not more than one year beyond the Revolving Credit Maturity Date so long as the Borrower delivers to the Issuing Lender no later than thirty (30) days prior to the Revolving Credit Maturity Date cash collateral for such Letter of Credit for deposit into the Collateral Account in an amount equal to the maximum amount available to be drawn under such Letter of Credit.  The amount available to be drawn under any Letter of Credit shall reduce on a dollar-for-dollar basis the amount available to be drawn under the Total Revolving Credit Commitment as a Revolving Credit Loan.

(b)Each Letter of Credit Request shall be submitted to the Issuing Lender at least five (5) Business Days (or such shorter period as the Issuing Lender may approve) prior to the date upon which the requested Letter of Credit is to be issued.  Each such Letter of Credit Request shall contain (i) a statement as to the purpose for which such Letter of Credit shall be used (which purpose shall be in accordance with the terms of this Agreement), and (ii) a certification by the chief executive officer, president or chief financial officer of the REIT that the Borrower and Guarantors are and will be in compliance with all covenants under the Loan Documents after 

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giving effect to the issuance of such Letter of Credit.  The Borrower shall further deliver to the Issuing Lender such additional applications (which application as of the date hereof is in the form of Exhibit F attached hereto) and documents as the Issuing Lender may require, in conformity with the then standard practices of its letter of credit department, in connection with the issuance of such Letter of Credit; provided that in the event of any conflict, the terms of this Agreement shall control.

(c)The Issuing Lender shall, subject to the conditions set forth in this Agreement, issue the Letter of Credit on or before five (5) Business Days following receipt of the documents last due pursuant to §2.10(b).  Each Letter of Credit shall be in form and substance reasonably satisfactory to the Issuing Lender in its reasonable discretion.

(d)Upon the issuance of a Letter of Credit, each Revolving Credit Lender shall be deemed to have purchased a participation therein from the Issuing Lender in an amount equal to its respective Revolving Credit Commitment Percentage of the amount of such Letter of Credit.  No Revolving Credit Lender’s obligation to participate in a Letter of Credit shall be affected by any other Revolving Credit Lender’s failure to perform as required herein with respect to such Letter of Credit or any other Letter of Credit.

(e)Upon the issuance of each Letter of Credit, the Borrower shall pay to the Issuing Lender (i) for its own account, a Letter of Credit fronting fee calculated at the rate equal to one-eighth of one percent (0.125%) per annum of the face amount of such Letter of Credit (which fee shall not be less than $1,500 in any event) and an administrative charge of $250, and (ii) for the accounts of the Revolving Credit Lenders (including the Issuing Lender) in accordance with their respective percentage shares of participation in such Letter of Credit, a Letter of Credit fee calculated at the rate per annum equal to the Applicable Margin then applicable to SOFR Rate Loans on the face amount of such Letter of Credit.  Such fees shall be payable in quarterly installments in arrears with respect to each Letter of Credit on the first day of each calendar quarter following the date of issuance and continuing on each quarter or portion thereof thereafter, as applicable, or on any earlier date on which the Revolving Credit Commitments shall terminate and on the expiration or return of any Letter of Credit.  In addition, the Borrower shall pay to the Issuing Lender for its own account within five (5) days of demand of the Issuing Lender the standard issuance, documentation and service charges for Letters of Credit issued from time to time by the Issuing Lender.

(f)In the event that any amount is drawn under a Letter of Credit by the beneficiary thereof, the Borrower shall reimburse the Issuing Lender by having such amount drawn treated as an outstanding Revolving Credit Base Rate Loan under this Agreement (the Borrower being deemed to have requested a Revolving Credit Base Rate Loan on such date in an amount equal to the amount of such drawing and such amount drawn shall be treated as an outstanding Revolving Credit Base Rate Loan under this Agreement) and the Agent shall promptly notify each Revolving Credit Lender by telecopy, email, telephone (confirmed in writing) or other similar means of transmission, and each Revolving Credit Lender shall promptly and unconditionally pay to the Agent, for the Issuing Lender’s own account, an amount equal to such Revolving Credit Lender’s Revolving Credit Commitment Percentage of such Letter of Credit (to the extent of the amount drawn).  If and to the extent any Revolving Credit Lender shall not make such amount available on the Business Day on which such draw is funded, such Revolving Credit Lender agrees 

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to pay such amount to the Agent forthwith on demand, together with interest thereon, for each day from the date on which such draw was funded until the date on which such amount is paid to the Agent, at the Federal Funds Effective Rate until three (3) days after the date on which the Agent gives notice of such draw and at the Federal Funds Effective Rate plus one percent (1%) for each day thereafter.  Further, such Revolving Credit Lender shall be deemed to have assigned any and all payments made of principal and interest on its Revolving Credit Loans, amounts due with respect to its participations in Letters of Credit and any other amounts due to it hereunder to the Agent to fund the amount of any drawn Letter of Credit which such Revolving Credit Lender was required to fund pursuant to this §2.10(f) until such amount has been funded (as a result of such assignment or otherwise).  In the event of any such failure or refusal, the Revolving Credit Lenders not so failing or refusing shall be entitled to a priority secured position for such amounts as provided in §12.5.  The failure of any Revolving Credit Lender to make funds available to the Agent in such amount shall not relieve any other Revolving Credit Lender of its obligation hereunder to make funds available to the Agent pursuant to this §2.10(f).

(g)If after the issuance of a Letter of Credit pursuant to §2.10(c) by the Issuing Lender, but prior to the funding of any portion thereof by a Revolving Credit Lender, for any reason a drawing under a Letter of Credit cannot be refinanced as a Revolving Credit Loan, each Revolving Credit Lender will, on the date such Revolving Credit Loan pursuant to §2.10(f) was to have been made, purchase an undivided participation interest in the Letter of Credit in an amount equal to its Revolving Credit Commitment Percentage of the amount of such Letter of Credit.  Each Revolving Credit Lender will immediately transfer to the Issuing Lender in immediately available funds the amount of its participation and upon receipt thereof the Issuing Lender will deliver to such Revolving Credit Lender a Letter of Credit participation certificate dated the date of receipt of such funds and in such amount.

(h)Whenever at any time after the Issuing Lender has received from any Revolving Credit Lender any such Revolving Credit Lender’s payment of funds under a Letter of Credit and thereafter the Issuing Lender receives any payment on account thereof, then the Issuing Lender will distribute to such Revolving Credit Lender its participation interest in such amount (appropriately adjusted in the case of interest payments to reflect the period of time during which such Revolving Credit Lender’s participation interest was outstanding and funded); provided, however, that in the event that such payment received by the Issuing Lender is required to be returned, such Revolving Credit Lender will return to the Issuing Lender any portion thereof previously distributed by the Issuing Lender to it.

(i)The issuance of any supplement, modification, amendment, renewal or extension to or of any Letter of Credit shall be treated in all respects the same as the issuance of a new Letter of Credit.

(j)The Borrower assumes all risks of the acts, omissions, or misuse of any Letter of Credit by the beneficiary thereof.  Neither the Agent, the Issuing Lender nor any Lender will be responsible for (i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any Letter of Credit or any document submitted by any party in connection with the issuance of any Letter of Credit, even if such document should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) the form, validity, sufficiency, accuracy, genuineness or legal effect of any instrument transferring or assigning or purporting to transfer or 

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assign any Letter of Credit or the rights or benefits thereunder or proceeds thereof in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) failure of any beneficiary of any Letter of Credit to comply fully with the conditions required in order to demand payment under a Letter of Credit; (iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telecopy, email or otherwise; (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission or otherwise of any document or draft required by or from a beneficiary in order to make a disbursement under a Letter of Credit or the proceeds thereof; (vii) for the misapplication by the beneficiary of any Letter of Credit of the proceeds of any drawing under such Letter of Credit; and (viii) for any consequences arising from causes beyond the control of the Agent or any Lender.  None of the foregoing will affect, impair or prevent the vesting of any of the rights or powers granted to the Agent, the Issuing Lender or the Lenders hereunder.  In furtherance and extension and not in limitation or derogation of any of the foregoing, any act taken or omitted to be taken by the Agent, the Issuing Lender or the other Lenders in good faith will be binding on the Borrower and will not put the Agent, the Issuing Lender or the other Lenders under any resulting liability to the Borrower; provided nothing contained herein shall relieve the Issuing Lender for liability to the Borrower arising as a result of the gross negligence or willful misconduct of the Issuing Lender as determined by a court of competent jurisdiction after the exhaustion of all applicable appeal periods.

	
 
	
§2.11
	
Increase in Total Commitment

.

(a)Subject to the terms and conditions set forth in this §2.11, the Borrower shall have the option at any time and from time to time before the Revolving Credit Maturity Date (as the same may be extended pursuant to §2.12(a) below) or the Term Loan Maturity Date (as the same may be extended pursuant to §2.12(b) below), as applicable, to request an increase in the Total Revolving Credit Commitment and/or the Total Term Loan Credit Commitment by giving written notice to the Agent (an “Increase Notice”; and the amount of such requested increase is the “Commitment Increase”), provided that any such individual increase must be in a minimum amount of $10,000,000.00 and increments of $5,000,000.00 in excess thereof, and the Total Commitment shall not exceed $125,000,000.00.  Upon receipt of any Increase Notice, the Agent shall consult with the Arranger and shall notify the Borrower of the amount of the facility fees to be paid to any Lenders who provide an additional Revolving Credit Commitment and/or Term Loan Commitment, as applicable, in connection with such increase in the Revolving Credit Commitment and/or Term Loan Commitment, as applicable, pursuant to the Agreement Regarding Fees. If the Borrower agrees to pay the facility fees so determined (and/or such other fees as may be agreed to by the Borrower and the Agent), the Agent shall send a notice to all Revolving Credit Lenders and/or Term Loan Lenders, as applicable (the “Additional Commitment Request Notice”) informing them of the Borrower’s request to increase the Total Revolving Credit Commitment and/or the Total Term Loan Commitment, as applicable, and of the facility fees to be paid with respect thereto.  Each Revolving Credit Lender and/or Term Loan Lender, as applicable, who desires to provide an additional Revolving Credit Commitment and/or Term Loan Commitment, as applicable, upon such terms shall provide the Agent with a written commitment letter specifying the amount of such additional Revolving Credit Commitment and/or Term Loan Commitment, as applicable, which it is willing to provide prior to such deadline as may be specified in the Additional Commitment Request Notice.  If the requested increase is oversubscribed then the Agent and the Arranger shall allocate the Commitment Increase among the Revolving Credit Lenders and/or Term Loan Lenders, as applicable, who provide such commitment letters on such 

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basis as the Agent and the Arranger, shall determine following consultation with the Borrower.  If the additional Revolving Credit Commitments and/or Term Loan Commitments, as applicable, so provided are not sufficient to provide the full amount of the Revolving Credit Commitment Increase and/or the Term Loan Commitment Increase, as applicable, that is requested by the Borrower, then the Agent, the Arranger, or the Borrower may, but shall not be obligated to, invite one or more banks or lending institutions (which banks or lending institutions shall be reasonably acceptable to the Agent, the Arranger, and the Borrower) to become a Revolving Credit Lender and/or Term Loan Lender, as applicable, and provide an additional Revolving Credit Commitment and/or Term Loan Commitment, as applicable.  The Agent shall provide all Revolving Credit Lenders and/or Term Loan Lenders, as applicable, with a notice setting forth the amount, if any, of the additional Revolving Credit Commitment and/or Term Loan Commitment, as applicable, to be provided by each Revolving Credit Lender and/or Term Loan Lender, as applicable, and the revised Revolving Credit Commitment Percentages and/or Term Loan Commitment Percentages, as applicable, which shall be applicable after the effective date of the Revolving Credit Commitment Increase and/or Term Loan Commitment Increase, as applicable, specified therein (each, a “Commitment Increase Date”).  In no event shall any Lender be obligated to provide an additional Revolving Credit Commitment and/or Term Loan Commitment.

(b)On any Commitment Increase Date the outstanding principal balance of the Revolving Credit  Loans shall be reallocated among the Revolving Credit Lenders such that after the applicable Commitment Increase Date the outstanding principal amount of Revolving Credit Loans owed to each Revolving Credit Lender shall be equal to such Lender’s Revolving Credit Commitment Percentage (as in effect after the applicable Commitment Increase Date) of the outstanding principal amount of all Revolving Credit Loans.  The participation interests of the Revolving Credit Lenders in Swing Loans and Letters of Credit shall be similarly adjusted.  On any Commitment Increase Date, those Revolving Credit Lenders whose Revolving Credit Commitment Percentage is increasing shall advance the funds to the Agent and the funds so advanced shall be distributed among the Revolving Credit Lenders whose Revolving Credit Commitment Percentage is decreasing as necessary to accomplish the required reallocation of the outstanding Revolving Credit Loans.  To the extent such reallocation results in certain Lenders receiving funds which are applied to Term SOFR Loans prior to the last day of the applicable Interest Period, then the Borrower shall pay to the Agent for the account of the affected Lenders the Breakage Costs for each such Lender; provided, however, each Lender agrees to apply any amounts received by them pursuant to this §2.11(b) first to the principal of any Base Rate Loans held by such Lender, second to the principal of any Daily Simple SOFR Loans held by such Lender, and then to the principal of Term SOFR Loans held by such Lender.

(c)Upon the effective date of each increase in the Total Commitment pursuant to this §2.11, (i) the Agent may unilaterally revise Schedule 1.1 to reflect the name and address, Commitment and Commitment Percentage of each Lender following such increase and the Borrower shall execute and deliver to the Agent new Revolving Credit Notes or Term Loan Notes, as applicable, for each Lender whose Commitment has changed so that the principal amount of such Lender’s Revolving Credit Note or Term Loan Note, as applicable, shall equal its Commitment.  The Agent shall deliver such replacement Revolving Credit Note and/or Term Loan Note, as applicable, to the respective Lenders in exchange for the Revolving Credit Notes and/or Term Loan Notes replaced thereby which shall be surrendered by such Lenders.  Such new Revolving Credit Notes and/or Term Loan Notes, as applicable, shall provide that they are 

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replacements for the surrendered Revolving Credit Notes and/or Term Loan Notes, as applicable, and that they do not constitute a novation, shall be dated as of the applicable Commitment Increase Date and shall otherwise be in substantially the form of the replaced Revolving Credit Notes or Term Loan Notes, as applicable.  In connection with the issuance of any new Revolving Credit Notes and/or Term Loan Notes, as applicable, pursuant to this §2.11(c), the Borrower shall deliver an opinion of counsel, addressed to the Lenders and the Agent, relating to the due authorization, execution and delivery of such new Revolving Credit Notes and/or Term Loan Notes, as applicable, and the enforceability thereof, in form and substance substantially similar to the opinion delivered in connection with the first disbursement under this Agreement.  The surrendered Revolving Credit Notes and/or Term Loan Notes, as applicable, shall be canceled and returned to the Borrower.

(d)Notwithstanding anything to the contrary contained herein, the obligation of the Agent and the Revolving Credit Lenders to increase the Total Revolving Credit Commitment, and/or the Agent and the Term Loan Lenders to increase the Total Term Loan Commitment, as applicable, pursuant to this §2.11 shall be conditioned upon satisfaction of the following conditions precedent which must be satisfied prior to the effectiveness of any increase of the Total Revolving Credit Commitment or the Total Term Loan Commitment, as applicable:

(i)Payment of Activation Fee.  The Borrower shall pay (A) to the Agent and the Arranger certain arrangement and other fees with respect to the applicable Commitment Increase pursuant to the Agreement Regarding Fees (or, if applicable, pursuant to a separate fee agreement to be entered into among the Borrower, the Agent and the Arranger prior to the applicable Commitment Increase Date), and (B) to the Arranger such facility fees as the Revolving Credit Lenders or Term Loan Lenders who are providing an additional Revolving Credit Commitment or Term Loan Commitment, as applicable, may require to increase the aggregate Revolving Credit Commitment or Term Loan Commitment, as applicable, which fees shall, when paid, be fully earned and non-refundable under any circumstances.  The Arranger shall pay to the Lenders acquiring the applicable Commitment Increase certain fees pursuant to their separate agreement; and

(ii)No Default.  On the date any such increase becomes effective, both immediately before and after the Total Revolving Credit Commitment or Total Term Loan Commitment is increased, there shall exist no Default or Event of Default; and

(iii)Representations True.  The representations and warranties made by the Borrower, the Guarantors and their respective Subsidiaries in the Loan Documents or otherwise made by or on behalf of such Persons in connection therewith or after the date thereof shall have been true and correct in all material respects when made and shall also be true and correct in all material respects on the date of such Increase Notice and on the date the Total Revolving Credit Commitment or Total Term Loan Commitment is increased (although any representations and warranties which expressly relate to a given date or period shall be required only to be true and correct in all material respects as of the respective date or for the respective period, as the case may be) (in each case, without duplication of any materiality qualifier contained therein), both immediately before and after the Total Revolving Credit Commitment or Total Term Loan Commitment is increased; and 

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(iv)Beneficial Ownership Certification.  If requested by the Agent or any Lender, the Borrower shall have delivered, at least five (5) Business Days prior to the Commitment Increase Date, to the Agent (and any such Lender) a completed and executed Beneficial Ownership Certification; and 

(v)Additional Documents and Expenses.  The Borrower and the Guarantors shall execute and deliver to the Agent and the Lenders such additional documents (including, without limitation, amendments to the Security Documents (if applicable)), instruments, certifications and opinions as the Agent may reasonably require (including, without limitation, in the case of the Borrower, a Compliance Certificate, demonstrating compliance with all covenants, representations and warranties set forth in the Loan Documents after giving effect to the increase) and the Borrower shall pay the cost of any updated UCC searches, title endorsements, all recording and filing costs and fees, and any and all intangible taxes or other documentary taxes, assessments or charges or any similar fees, taxes or expenses which are incurred by the Agent, the Arranger or the Lenders in connection with such increase. 

(e)Amendments. The Agent and the Borrower may, without the consent of any Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the opinion of the Agent and the Borrower, to effect the increase in Commitments pursuant to this §2.11, including, without limitation, establishing pricing, commitment fees and the maturity of any new Commitments and Loans, incorporation of a new pari passu revolving credit or term loan tranche and amendments in respect of borrowing and prepayment procedures for any new pari passu revolving credit or term loan tranche (provided, however, that in no event shall the maturity date of any new Term Loans occur prior to the maturity date applicable to any of the Revolving Credit Loans).  The provisions of this §2.11 shall supersede any provisions in §27 to the contrary.

	
 
	
§2.12
	
Extension of Maturity Date

.  

(a)Extension of Revolving Credit Maturity Date.  The Borrower shall have the right and option to extend the Revolving Credit Maturity Date in respect of the Total Revolving Credit Commitment or portion thereof, if reduced in accordance with §2.4, a total of two (2) times for a period of twelve (12) months each upon satisfaction of the following conditions precedent, which must be satisfied prior to the effectiveness of any extension of the Revolving Credit Maturity Date:

(i)Revolving Credit Extension Request.  The Borrower shall deliver written notice of such request (the “Revolving Credit Extension Request”) to the Agent not earlier than the date which is ninety (90) days and not later than the date which is forty-five (45) days prior to the then applicable Revolving Credit Maturity Date (as determined without regard to such extension).  Any such Revolving Credit Extension Request shall be irrevocable and binding on the Borrower. 

(ii)Payment of Extension Fee.  The Borrower shall pay to the Agent for the pro rata accounts of the Revolving Credit Lenders in accordance with their respective Revolving Credit Commitments an extension fee in an amount equal to twenty (20) basis points on the Total Revolving Credit Commitment in effect on the Revolving Credit Maturity Date (as 

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determined without regard to such extension), which fee shall, when paid, be fully earned and non-refundable under any circumstances. 

(iii)No Default.  On the date the Revolving Credit Extension Request is given and on the Revolving Credit Maturity Date (as determined without regard to such extension) there shall exist no Default or Event of Default. 

(iv)Representations and Warranties.  The representations and warranties made by the Borrower and the Guarantors in the Loan Documents or otherwise made by or on behalf of the Borrower and the Guarantors in connection therewith or after the date thereof shall have been true and correct in all material respects when made and shall also be true and correct in all material respects on the date the Revolving Credit Extension Request is given and on the Revolving Credit Maturity Date (as determined without regard to such extension), although any representations and warranties which expressly relate to a given date or period shall be required only to be true and correct in all material respects as of the respective date or for the respective period, as the case may be (in each case, without duplication of any materiality qualifier contained therein);

(v)Pro Forma Covenant Compliance.  Borrower shall have delivered to Agent evidence reasonably satisfactory to Agent that Borrower will be in pro forma compliance with all the covenants set forth in §9 immediately after giving effect to the extension; 

(vi)Beneficial Ownership Certification.  If requested by the Agent or any Lender, each Borrower shall have delivered, at least five (5) Business Days prior to the Revolving Credit Maturity Date (as determined without regard to such extension), to the Agent (and any such Lender) a completed and executed Beneficial Ownership Certification.

(vii)Additional Documents and Expenses.  The Borrower and the Guarantors shall execute and deliver to Agent and Lenders such additional consents and affirmations and other documents (including, without limitation, amendments to the Security Documents) as the Agent may reasonably require, and the Borrower shall pay the cost of any updated UCC searches, title endorsements, all recording and filing costs and fees, and any and all intangible taxes or other documentary taxes, assessments or charges or any similar fees, taxes or expenses which are incurred by the Agent, the Arranger or the Lenders in connection with such extension.

For purposes of clarity, if the Borrower exercises its first right and option as provided above to extend the Revolving Credit Maturity Date pursuant to this §2.12(a) (the “First Extension Option”), the Revolving Credit Maturity Date shall be extended to August 5, 2026, and if the Borrower subsequently exercises its second right and option as provided above to extend the Revolving Credit Maturity Date pursuant to this §2.12(a) (the “Second Extension Option”), then the Revolving Credit Maturity Date shall be extended to August 5, 2027.  Borrower may only exercise the Second Extension Option if it has exercised the First Extension Option in accordance with this §2.12(a).  Any extension of the Revolving Credit Maturity Date pursuant to this §2.12(a) shall become effective on the day that all the conditions in this §2.12(a) with respect to such Revolving Credit Extension Request are satisfied (which may be prior to the then-applicable Revolving Credit Maturity Date), provided that such conditions must be satisfied within the time 

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period provided in each such condition, and, in any event, on or prior to the then-applicable Revolving Credit Maturity Date (as determined without regard to such extension).  

(b)Extension of Term Loan Maturity Date.  The Borrower shall have the right and option to extend the Term Loan Maturity Date in respect of the Total Term Loan Commitment or portion thereof, if reduced in accordance with §2.4, a total of one (1) time for a period of twelve (12) months upon satisfaction of the following conditions precedent, which must be satisfied prior to the effectiveness of any extension of the Term Loan Maturity Date:

(i)Term Loan Extension Request.  The Borrower shall deliver written notice of such request (the “Term Loan Extension Request”) to the Agent not earlier than the date which is ninety (90) days and not later than the date which is forty-five (45) days prior to the then applicable Term Loan Maturity Date (as determined without regard to such extension).  Any such Term Loan Extension Request shall be irrevocable and binding on the Borrower. 

(ii)Payment of Extension Fee.  The Borrower shall pay to the Agent for the pro rata accounts of the Term Loan Lenders in accordance with their respective Term Loan Commitments an extension fee in an amount equal to twenty (20) basis points on the aggregate outstanding principal amount of the Term Loans on the Term Loan Maturity Date (as determined without regard to such extension), which fee shall, when paid, be fully earned and non-refundable under any circumstances. 

(iii)No Default.  On the date the Term Loan Extension Request is given and on the Term Loan Maturity Date (as determined without regard to such extension) there shall exist no Default or Event of Default. 

(iv)Representations and Warranties.  The representations and warranties made by the Borrower and the Guarantors in the Loan Documents or otherwise made by or on behalf of the Borrower and the Guarantors in connection therewith or after the date thereof shall have been true and correct in all material respects when made and shall also be true and correct in all material respects on the date the Term Loan Extension Request is given and on the Term Loan Maturity Date (as determined without regard to such extension), although any representations and warranties which expressly relate to a given date or period shall be required only to be true and correct in all material respects as of the respective date or for the respective period, as the case may be (in each case, without duplication of any materiality qualifier contained therein);

(v)Pro Forma Covenant Compliance.  Borrower shall have delivered to Agent evidence reasonably satisfactory to Agent that Borrower will be in pro forma compliance with all the covenants set forth in §9 immediately after giving effect to the extension; 

(vi)Beneficial Ownership Certification.  If requested by the Agent or any Lender, each Borrower shall have delivered, at least five (5) Business Days prior to the Term Loan Maturity Date (as determined without regard to such extension), to the Agent (and any such Lender) a completed and executed Beneficial Ownership Certification.

(vii)Additional Documents and Expenses.  The Borrower and the Guarantors shall execute and deliver to Agent and Lenders such additional consents and affirmations and other documents (including, without limitation, amendments to the Security 

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Documents) as the Agent may reasonably require, and the Borrower shall pay the cost of any updated UCC searches, title endorsements, all recording and filing costs and fees, and any and all intangible taxes or other documentary taxes, assessments or charges or any similar fees, taxes or expenses which are incurred by the Agent, the Arranger or the Lenders in connection with such extension. 

For purposes of clarity, if the Borrower exercises its option to extend the Term Loan Maturity Date pursuant to this §2.12(b), the Term Loan Maturity Date shall be extended to August 5, 2027.  Any extension of the Term Loan Maturity Date pursuant to this §2.12(b) shall become effective on the day that all the conditions in this §2.12(b) with respect to such Term Loan Extension Request are satisfied (which may be prior to the then-applicable Term Loan Maturity Date), provided that such conditions must be satisfied within the time period provided in each such condition, and, in any event, on or prior to the then-applicable Term Loan Maturity Date (as determined without regard to such extension).  

 

	
 
	
§2.13
	
Defaulting Lenders

.

(a)If for any reason any Lender shall be a Defaulting Lender, then, in addition to the rights and remedies that may be available to the Agent or the Borrower under this Agreement or applicable law, such Defaulting Lender’s right to participate in the administration of the Loans, this Agreement and the other Loan Documents, including without limitation, any right to vote in respect of, to consent to or to direct any action or inaction of the Agent or to be taken into account in the calculation of the Required Lenders, Required Revolving Credit Lenders, Required Term Loan Lenders, all of the Lenders or affected Lenders, shall, except as specifically provided in §27, be suspended during the pendency of such failure or refusal.  If a Lender is a Defaulting Lender because it has failed to make timely payment to the Agent of any amount required to be paid to the Agent hereunder (without giving effect to any notice or cure periods), in addition to other rights and remedies which the Agent or the Borrower may have under the immediately preceding provisions or otherwise, the Agent shall be entitled (i) to collect interest from such Defaulting Lender on such delinquent payment for the period from the date on which the payment was due until the date on which the payment is made at the Federal Funds Effective Rate plus one percent (1%), (ii) to withhold or setoff and to apply in satisfaction of the defaulted payment and any related interest, any amounts otherwise payable to such Defaulting Lender under this Agreement or any other Loan Document and (iii) to bring an action or suit against such Defaulting Lender in a court of competent jurisdiction to recover the defaulted amount and any related interest.  Any amounts received by the Agent in respect of a Defaulting Lender’s Loans shall be applied as set forth in §2.13(d).

(b)Any Non-Defaulting Lender may, but shall not be obligated, in its sole discretion, to acquire all or a portion of a Defaulting Lender’s Commitments.  Any Lender desiring to exercise such right shall give written notice thereof to the Agent and the Borrower no sooner than two (2) Business Days and not later than five (5) Business Days after such Defaulting Lender became a Defaulting Lender.  If more than one Lender exercises such right, each such Lender shall have the right to acquire an amount of such Defaulting Lender’s Commitments in proportion to the Commitments of the other Lenders exercising such right.  If after such fifth Business Day, the Lenders have not elected to purchase all of the Commitments of such Defaulting Lender, then the 

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Borrower (so long as no Default or Event of Default exists) or the Required Lenders may, by giving written notice thereof to the Agent, such Defaulting Lender and the other Lenders, demand that such Defaulting Lender assign its Commitments to an eligible assignee subject to and in accordance with the provisions of §18.1 for the purchase price provided for below.  No party hereto shall have any obligation whatsoever to initiate any such replacement or to assist in finding an eligible assignee.  Upon any such purchase or assignment, and any such demand with respect to which the conditions specified in §18.1 have been satisfied, the Defaulting Lender’s interest in the Loans and its rights hereunder (but not its liability in respect thereof or under the Loan Documents or this Agreement to the extent the same relate to the period prior to the effective date of the purchase) shall terminate on the date of purchase, and the Defaulting Lender shall promptly execute all documents reasonably requested to surrender and transfer such interest to the purchaser or assignee thereof, including an appropriate Assignment and Acceptance Agreement.  The purchase price for the Commitments of a Defaulting Lender shall be equal to the amount of the principal balance of the Loans outstanding and owed by the Borrower to the Defaulting Lender plus any accrued but unpaid interest thereon and accrued but unpaid fees.  Prior to payment of such purchase price to a Defaulting Lender, the Agent shall apply against such purchase price any amounts retained by the Agent pursuant to §2.13(d).

(c)During any period in which there is a Defaulting Lender, all or any part of such Defaulting Lender’s obligation to acquire, refinance or fund participations in Letters of Credit pursuant to §2.10(g) or Swing Loans pursuant to §2.5(e) shall be reallocated among the Revolving Credit Lenders that are Non-Defaulting Lenders in accordance with their respective Revolving Credit Commitment Percentages (computed without giving effect to the Revolving Credit Commitment of such Defaulting Lender; provided that (i) each such reallocation shall be given effect only if, at the date the applicable Revolving Credit Lender becomes a Defaulting Lender, no Default or Event of Default exists, (ii) the conditions set forth in §§10 and 11 are satisfied at the time of such reallocation (and, unless the Borrower shall have notified the Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied at the time), (iii) the representations and warranties in the Loan Documents shall be true and correct in all material respects on and as of the date of such reallocation with the same effect as though made on and as of such date, and (iv) the aggregate obligation of each Revolving Credit Lender that is a Non-Defaulting Lender to acquire, refinance or fund participations in Letters of Credit and Swing Loans shall not exceed the positive difference, if any, of (a) the Revolving Credit Commitment of that Non-Defaulting Lender minus (b) the sum of (1) the aggregate outstanding principal amount of the Revolving Credit Loans of that Revolving Credit Lender plus (2) such Revolving Credit Lender’s pro rata portion in accordance with its Revolving Credit Commitment Percentage of outstanding Letter of Credit Liabilities and Swing Loans.  Subject to §34, no reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation.

(d)Any payment of principal, interest, fees or other amounts received by the Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, or otherwise, and including any amounts made available to the Agent for the account of such Defaulting Lender pursuant to §13), shall be applied at such time or times as may be determined by the Agent as follows:  first, to the payment of any amounts owing by such Defaulting Lender 

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to the Agent (other than with respect to Letter of Credit Liabilities) hereunder; second, to the payment of any amounts owing by such Defaulting Lender to the Issuing Lender (with respect to Letter of Credit Liabilities) and/or the Swing Loan Lender hereunder; third, if so determined by the Agent or requested by the Issuing Lender or the Swing Loan Lender, to be held as cash collateral for future funding obligations of such Defaulting Lender of any participation in any Letter of Credit or Swing Loan; fourth, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Agent; fifth, if so determined by the Agent and the Borrower, to be held in a non-interest bearing deposit account and released pro rata in order to (x) satisfy obligations of such Defaulting Lender to fund Loans or participations under this Agreement and (y) be held as cash collateral for future funding obligations of such Defaulting Lender of any participation in any Letter of Credit or Swing Loan; sixth, to the payment of any amounts owing to the Agent or the Lenders (including the Issuing Lender and the Swing Loan Lender) as a result of any judgment of a court of competent jurisdiction obtained by the Agent or any Lender (including the Issuing Lender and the Swing Loan Lender) against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (i) such payment is a payment of the principal amount of any Revolving Credit Loans, Term Loans or funded participations in Letters of Credit or Swing Loans in respect of which such Defaulting Lender has not fully funded its appropriate share and (ii) such Revolving Credit Loans, Term Loans or funded participations in Letters of Credit or Swing Loans were made at a time when the conditions set forth in §§10 and 11, to the extent required by this Agreement, were satisfied or waived, such payment shall be applied solely to pay the Revolving Credit Loans or Term Loans of, and funded participations in Letters of Credit or Swing Loans owed to, all Non-Defaulting Lenders on a pro rata basis until such time as all Revolving Credit Loans, Term Loans and funded and unfunded participations in Letters of Credit and Swing Loans are held by the Revolving Credit Lenders and Term Loan Lenders, as applicable, pro rata in accordance with their Revolving Credit Commitment Percentages or Term Loan Commitment Percentages, as applicable, without regard to §2.13(c), prior to being applied to the payment of any Revolving Credit Loans or Term Loans of, or funded participations in Letters of Credit or Swing Loans owed to, such Defaulting Lender.  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post cash collateral pursuant to this §2.13(d) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto, and to the extent allocated to the repayment of principal of the Loans, shall not be considered outstanding principal under this Agreement.

(e)Within five (5) Business Days of demand by the Issuing Lender or the Swing Loan Lender from time to time, the Borrower shall deliver to the Agent for the benefit of the Issuing Lender and the Swing Loan Lender cash collateral in an amount sufficient to cover all Fronting Exposure with respect to the Issuing Lender and the Swing Loan Lender (after giving effect to §§2.5(a), 2.10(a) and 2.13(c)) on terms satisfactory to the Issuing Lender and/or the Swing Loan Lender in its good faith determination (and such cash collateral shall be in Dollars).  Any such cash collateral shall be deposited in the Collateral Account as collateral (solely for the benefit 

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of the Issuing Lender and/or the Swing Loan Lender) for the payment and performance of each Defaulting Lender’s pro rata portion in accordance with their respective Revolving Credit Commitment Percentages of outstanding Letter of Credit Liabilities and Swing Loans.  Moneys in the Collateral Account deposited pursuant to this §2.13(e) shall be applied by the Agent to reimburse the Issuing Lender and/or the Swing Loan Lender immediately for each Defaulting Lender’s pro rata portion in accordance with their respective Revolving Credit Commitment Percentages of any funding obligation with respect to a Letter of Credit or Swing Loan which has not otherwise been reimbursed by the Borrower or such Defaulting Lender.

(f)(i)Each Revolving Credit Lender that is a Defaulting Lender shall not earn and shall not be entitled to receive any Unused Fee pursuant to §2.3 for any period during which that Lender is a Defaulting Lender.

(i)Each Revolving Credit Lender that is a Defaulting Lender shall not earn and shall not be entitled to receive Letter of Credit fees pursuant to §2.10(e) for any period during which that Lender is a Defaulting Lender.

(ii)With respect to any Unused Fee or Letter of Credit fees not required to be paid to any Defaulting Lender pursuant to clause (i) or (ii) above, the Borrower shall (x) pay to each Non-Defaulting Lender that is a Revolving Credit Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender’s participation in Letter of Credit Liabilities or Swing Loans that has been reallocated to such Non-Defaulting Lender pursuant to §2.13(c), (y) pay to the Issuing Lender and the Swing Loan Lender the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to the Issuing Lender’s or the Swing Loan Lender’s Fronting Exposure to such Defaulting Lender and (z) not be required to pay any remaining amount of any such fee.

(g)If the Borrower (so long as no Default or Event of Default exists) and the Agent agree in writing in their sole discretion that a Defaulting Lender should no longer be deemed to be a Defaulting Lender, the Agent will so notify the parties hereto, whereupon as of the date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any cash collateral), that Lender will, to the extent applicable, purchase that portion of outstanding Revolving Credit Loans or Term Loans, as applicable, of the other Lenders or take such other actions as the Agent may determine to be necessary to cause the Revolving Credit Loans and funded and unfunded participations in Letters of Credit and Swing Loans, or Term Loans, as applicable, to be held on a pro rata basis by the Lenders in accordance with their Revolving Credit Commitments or Term Loan Commitments, as the case may be (without giving effect to §2.13(c)), whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while such Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from such Lender’s having been a Defaulting Lender. 

§2.14Evidence of Debt

.  The indebtedness of the Borrower resulting from the Loans made by each Lender from time to time shall be evidenced by one or more accounts or records maintained by such Lender and the Agent in the ordinary course of business, including, without 

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limitation, the amounts of principal and interest payable and paid to such Lender from time to time hereunder.  The Borrower hereby irrevocably authorizes the Agent and the Lenders to make, or cause to be made, at or about the time of the Drawdown Date of any Loan or at the time of receipt of any payment thereof, an appropriate notation on the Agent’s and the Lender’s records reflecting the making of such Loan or (as the case may be) the receipt of such payment.  The Agent shall maintain accounts or records in accordance with its usual practice in which it shall record:  (i) the date and the amount of each Loan made hereunder, the Type of such Loan, and, if appropriate, the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder, and (iii) the amount of any sum received by the Agent hereunder from the Borrower and each Lender’s share thereof.  The accounts or records maintained by the Agent and each Lender shall be prima facie evidence of the existence and amounts of the Obligations recorded therein and shall be conclusive absent manifest error of the amount of the Loans made by the Lenders to the Borrower and the interest and payments thereon.  Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder or under the Notes, if any, to pay any amount owing with respect to the Obligations.  In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Agent in respect of such matters, the accounts and records of the Agent shall control in the absence of manifest error.  The Borrower agrees that upon the request of any Lender made through the Agent (whether for purposes of pledge, enforcement or otherwise), the Borrower shall promptly execute and deliver to such Lender (through the Agent) a Revolving Credit Note, a Term Loan Note and/or a Swing Loan Note, as applicable, payable to the order of such Lender, which shall evidence such Lender’s Loans in addition to such accounts or records.  Each Lender may attach schedules to its Notes and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto.  All references to Notes in the Loan Documents shall mean Notes, if any, to the extent issued hereunder.  

	
§3.
	
REPAYMENT OF THE LOANS

.

	
 
	
§3.1
	
Stated Maturity

	
 
	
§3.2
	
.  

(a)The Borrower promises to pay on the Revolving Credit Maturity Date and there shall become absolutely due and payable on the Revolving Credit Maturity Date all of the Revolving Credit Loans, Swing Loans and other Letter of Credit Liabilities Outstanding on such date, together with any and all accrued and unpaid interest thereon.

(b)The Borrower promises to pay on the Term Loan Maturity Date and there shall become absolutely due and payable on the Term Loan Maturity Date all of the Term Loans Outstanding on such date, together with any and all accrued and unpaid interest thereon.  The principal amount of the Term Loans shall not amortize prior to the Term Loan Maturity Date.

	
 
	
§3.2
	
Mandatory Prepayments.

(a)If at any time (i) the sum of the aggregate outstanding principal amount of the Revolving Credit Loans, the Swing Loans and the Letter of Credit Liabilities exceeds the Total Revolving Credit Commitment, or (ii) the sum of the aggregate outstanding principal amount of the Revolving Credit Loans, the Term Loans, the Swing Loans and the Letter of Credit Liabilities 

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exceeds the Total Commitment, then the Borrower shall, within five (5) Business Days of such occurrence, pay the amount of such excess to the Agent for the respective accounts of the Revolving Credit Lenders (in the case of clause (i)) or all of the Lenders (in the case of clause (ii)), as applicable, for application to the Revolving Credit Loans and Term Loans as provided in §3.4, together with any additional amounts payable pursuant to §4.7, except that the amount of any Swing Loans shall be paid solely to the Swing Loan Lender.

(b)Subject to §7.7(g), in the event there shall have occurred a casualty or Taking with respect to any Mortgaged Property, the Borrower shall prepay the Loans concurrently with the date of receipt by Borrower, such Subsidiary Guarantor or the Agent of any Insurance Proceeds or Condemnation Proceeds in respect of such casualty or Taking. 

	
 
	
§3.3
	
Optional Prepayments

.

(a)The Borrower shall have the right, at its election, to prepay the outstanding amount of the Revolving Credit Loans, Term Loans and Swing Loans, as a whole or in part, at any time without penalty or premium; provided, that if any prepayment of the outstanding amount of any Term SOFR Loans pursuant to this §3.3 is made on a date that is not the last day of the Interest Period relating thereto, such prepayment shall be accompanied by the payment of any amounts due pursuant to §4.7.

(b)The Borrower shall give the Agent, no later than 10:00 a.m.  (Cleveland time) at least three (3) days’ prior written notice of any prepayment pursuant to this §3.3, in each case specifying the proposed date of prepayment of the Loans and the principal amount to be prepaid (provided that any such notice may be revoked or modified upon one (1) day’s prior notice to the Agent).  Notwithstanding the foregoing, no prior notice shall be required for the prepayment of any Swing Loan.

	
 
	
§3.4
	
Partial Prepayments

.  Each prepayment of the Loans under §3.3 shall be in a minimum amount of $1,000,000.00 or an integral multiple of $100,000.00 in excess thereof, shall be accompanied by the payment of accrued interest on the principal prepaid to the date of payment.  Each partial payment under §§3.2 and 3.3 shall be applied, first, pro rata to the principal of any Outstanding Swing Loans, then, in the absence of instruction by the Borrower, second, pro rata to the principal of any Outstanding Revolving Credit Loans, and, third, pro rata to the principal of any Outstanding Term Loans (and with respect to each category of Loans, first, pro rata to the principal of Base Rate Loans, second, pro rata to the principal of Daily Simple SOFR Loans, and third, pro rata, to the principal of Term SOFR Loans).

	
 
	
§3.5
	
Effect of Prepayments

.  Amounts of the Revolving Credit Loans prepaid under §§3.2 and 3.3 prior to the Maturity Date may be reborrowed as provided in §2, subject to any reduction of the Commitment provided for in this Agreement. Any portion of the Term Loans that is prepaid may not be reborrowed.

	
§4.
	
CERTAIN GENERAL PROVISIONS

.

	
 
	
§4.1
	
Conversion Options

.

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(a)The Borrower may elect from time to time to convert any of its outstanding Revolving Credit Loans or Term Loans to a Revolving Credit Loan or Term Loan, respectively, of another Type and such Revolving Credit Loans or Term Loans shall thereafter bear interest as a Base Rate Loan or a SOFR Rate Loan, as applicable; provided that (i) with respect to any such conversion of a SOFR Rate Loan to a Base Rate Loan or, if applicable, any such conversion of a SOFR Rate Loan that is a Term SOFR Loan to a Daily Simple SOFR Loan, the Borrower shall give the Agent a Conversion/Continuation Request with respect to such election at least three (3) Business Days prior to the requested date of such conversion, and such conversion shall only be made on (X) the last day of the Interest Period with respect to any such SOFR Rate Loan that is a Term SOFR Loan, or (Y) the applicable Interest Payment Date with respect to any such SOFR Rate Loan that is a Daily Simple SOFR Loan, and, in each case after giving effect to the making of such Loan, there shall be no more than ten (10) SOFR Rate Loans; (ii) with respect to any such conversion of a Base Rate Loan to a SOFR Rate Loan of any Type or, if applicable, any such conversion of a SOFR Rate Loan that is a Daily Simple SOFR Loan to a Term SOFR Loan (provided, that, such conversion shall only be made on the applicable Interest Payment Date with respect to such Daily Simple SOFR Loan), the Borrower shall give the Agent a Conversion/Continuation Request with respect to such election at least three (3) Business Days prior to the requested date of such conversion, the principal amount of the Loan so converted shall be in a Minimum Loan Amount and, after giving effect to the making of such Loan, there shall be no more than ten (10) SOFR Rate Loans outstanding at any one time, unless otherwise consented to in writing by all of the Lenders; and (iii) no Loan may be converted into a SOFR Rate Loan when any Default or Event of Default has occurred and is continuing.  All or any part of the outstanding Revolving Credit Loans or Term Loans of any Type may be converted as provided herein, provided that no partial conversion shall result in a Base Rate Loan in a principal amount of less than the Minimum Loan Amount.  On the date on which such conversion is being made, each Lender shall take such action as is necessary to transfer its Commitment Percentage of such Loans to its Applicable Lending Office, as the case may be.  Each Conversion/Continuation Request relating to the conversion of a Base Rate Loan to a SOFR Rate Loan shall be irrevocable by the Borrower.

(b)Any SOFR Rate Loan may be continued as such Type upon the expiration of an Interest Period with respect thereto (for a Term SOFR Loan) or following the Interest Payment Date with respect thereto (for a Daily Simple SOFR Loan) by compliance by the Borrower with the terms of §4.1; provided that no SOFR Rate Loan may be continued as such when any Default or Event of Default has occurred and is continuing, but shall be automatically converted to a Base Rate Loan on the last day of the Interest Period relating thereto ending during the continuance of any Default or Event of Default (for a Term SOFR Loan) or on the next Interest Payment Date occurring during the continuance of any Default or Event of Default (for a Daily Simple SOFR Loan).

(c)In the event that the Borrower does not notify the Agent of its election hereunder with respect to (i) any Term SOFR Loan, such Loan shall be automatically continued at the end of the applicable Interest Period as a Term SOFR Loan with an Interest Period of one (1) month, or (ii) any Daily Simple SOFR Loan, such Loan shall be automatically continued as a Daily Simple SOFR Loan; provided that if a Default or Event of Default has occurred and is continuing, such Term SOFR Loan or Daily Simple SOFR Loan, as the case may be, shall be converted to a 

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Base Rate Loan at the end of the applicable Interest Period (for a Term SOFR Loan) or on the next Interest Payment Date (for a Daily Simple SOFR Loan).  

	
 
	
§4.2
	
Fees

.  The Borrower agrees to pay to KeyBank, the Agent and the Arranger for their own account certain fees for services rendered or to be rendered in connection with the Loans as provided pursuant to that certain fee letter dated as of August 5, 2022 among the Borrower, KeyBank and the Arranger (the “Agreement Regarding Fees”).  All such fees shall be fully earned when paid and nonrefundable under any circumstances.

	
 
	
§4.3
	
Funds for Payments

.

(a)All payments of principal, interest, facility fees, Letter of Credit fees, closing fees and any other amounts due hereunder or under any of the other Loan Documents shall be made to the Agent, for the respective accounts of the Lenders and the Agent, as the case may be, at the Agent’s Head Office, not later than 2:00 p.m. (Cleveland time) on the day when due, in each case in lawful money of the United States in immediately available funds.  The Agent is hereby authorized to charge the accounts of the Borrower with KeyBank set forth on Schedule 4.3, on the dates when the amount thereof shall become due and payable, with the amounts of the principal of and interest on the Loans and all fees, charges, expenses and other amounts owing to the Agent and/or the Lenders (including the Swing Loan Lender) under the Loan Documents.  Subject to the foregoing, all payments made to the Agent on behalf of the Lenders, and actually received by the Agent, shall be deemed received by the Lenders on the date actually received by the Agent.

(b)All payments by the Borrower hereunder and under any of the other Loan Documents shall be made without setoff or counterclaim, and free and clear of and without deduction or withholding for any Taxes, except as required by Applicable Law. If any Applicable Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower or other applicable Guarantor shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this §4.3) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

(c)The Borrower and the Guarantors shall timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the Agent timely reimburse it for the payment of, any Other Taxes.

(d)The Borrower and the Guarantors shall jointly and severally indemnify each Recipient, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this §4.3) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or 

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not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error; provided that the determinations in such statement are made on a reasonable basis and in good faith.

(e)Each Lender shall severally indemnify the Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower or a Guarantor has not already indemnified the Agent for such Indemnified Taxes and without limiting the obligation of the Borrower and the Guarantors to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of §18.4 relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Agent to the Lender from any other source against any amount due to the Agent under this subsection.

(f)As soon as practicable after any payment of Taxes by the Borrower or any Guarantor to a Governmental Authority pursuant to this §4.3, the Borrower or such Guarantor shall deliver to the Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Agent. 

(g) 

(i)Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Agent, at the time or times reasonably requested by the Borrower or the Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrower or the Agent as will enable the Borrower or the Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in the immediately following clauses (ii)(A), (ii)(B) and (ii)(D)) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

(ii)Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person:

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(A)any Lender that is a U.S. Person shall deliver to the Borrower and the Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Agent), an electronic copy (or an original if requested by the Borrower or the Agent) of an executed IRS Form W-9 (or any successor form) certifying that such Lender is exempt from U.S. federal backup withholding tax;

(B)any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Agent), whichever of the following is applicable:

(I)in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, an electronic copy (or an original if requested by the Borrower or the Agent) of an executed IRS Form W-8BEN or W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

(II)an electronic copy (or an original if requested by the Borrower or the Agent) of an executed IRS Form W-8ECI;

(III)in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit I-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN or W-8BEN-E; or

(IV)to the extent a Foreign Lender is not the beneficial owner, an electronic copy (or an original if requested by the Borrower or the Agent) of an executed IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit I-2 or Exhibit I-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit I-4 on behalf of each such direct and indirect partner;

(C)any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the 

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Agent), an electronic copy (or an original if requested by the Borrower or the Agent) of any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrower or the Agent to determine the withholding or deduction required to be made; and

(D)if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Agent at the time or times prescribed by Applicable Law and at such time or times reasonably requested by the Borrower or the Agent such documentation prescribed by Applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Agent as may be necessary for the Borrower and the Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Agent in writing of its legal inability to do so.

(h)If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this §4.3 (including by the payment of additional amounts pursuant to this §4.3), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this §4.3 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this subsection (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this subsection, in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this subsection the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund has not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This subsection shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it reasonably deems confidential) to the indemnifying party or any other Person.

(i)Each party’s obligations under this §4.3 shall survive the resignation or replacement of the Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

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(j)The obligations of the Borrower to the Lenders under this Agreement with respect to Letters of Credit (and of the Revolving Credit Lenders to make payments to the Issuing Lender with respect to Letters of Credit and to the Swing Loan Lender with respect to Swing Loans) shall be absolute, unconditional and irrevocable, and shall be paid and performed strictly in accordance with the terms of this Agreement, under all circumstances whatsoever, including, without limitation, the following circumstances:  (i) any lack of validity or enforceability of this Agreement, any Letter of Credit or any of the other Loan Documents; (ii) any improper use which may be made of any Letter of Credit or any improper acts or omissions of any beneficiary or transferee of any Letter of Credit in connection therewith; (iii) the existence of any claim, set-off, defense or any right which the Borrower or any of its Subsidiaries or Affiliates may have at any time against any beneficiary or any transferee of any Letter of Credit (or persons or entities for whom any such beneficiary or any such transferee may be acting) or the Lenders (other than the defense of payment to the Lenders in accordance with the terms of this Agreement) or any other person, whether in connection with any Letter of Credit, this Agreement, any other Loan Document, or any unrelated transaction; (iv) any draft, demand, certificate, statement or any other documents presented under any Letter of Credit proving to be insufficient, forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect whatsoever; (v) any breach of any agreement between the Borrower, any Guarantor or any of their Subsidiaries or Affiliates and any beneficiary or transferee of any Letter of Credit; (vi) any irregularity in the transaction with respect to which any Letter of Credit is issued, including any fraud by the beneficiary or any transferee of such Letter of Credit; (vii) payment by the Issuing Lender under any Letter of Credit against presentation of a sight draft, demand, certificate or other document which does not comply with the terms of such Letter of Credit, provided that such payment shall not have constituted gross negligence or willful misconduct on the part of the Issuing Lender as determined by a court of competent jurisdiction after the exhaustion of all applicable appeal periods; (viii) any non-application or misapplication by the beneficiary of a Letter of Credit of the proceeds of such Letter of Credit; (ix) the legality, validity, form, regularity or enforceability of the Letter of Credit; (x) the failure of any payment by the Issuing Lender to conform to the terms of a Letter of Credit (if, in the Issuing Lender’s good faith judgment, such payment is determined to be appropriate); (xi) the surrender or impairment of any security for the performance or observance of any of the terms of any of the Loan Documents; (xii) the occurrence of any Default or Event of Default; and (xiii) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing.

	
 
	
§4.4
	
Computations

.  All computations of interest on the Loans and of other fees to the extent applicable shall be based on a 360‐day year (or a 365 or 366 day year, as applicable, in the case of Base Rate Loans) and paid for the actual number of days elapsed.  Except as otherwise provided in the definition of the term “Interest Period” with respect to Term SOFR Loans, whenever a payment hereunder or under any of the other Loan Documents becomes due on a day that is not a Business Day, the due date for such payment shall be extended to the next succeeding Business Day, and interest shall accrue during such extension.  The Outstanding Loans and Letter of Credit Liabilities as reflected on the records of the Agent from time to time shall be considered prima facie evidence of such amount absent manifest error.

	
 
	
§4.5
	
Temporary Inability to Determine Rates

.  If (A) the Agent determines (which determination shall be conclusive and binding absent manifest error) that Adjusted 

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Daily Simple SOFR or Adjusted Term SOFR cannot be determined pursuant to the definition thereof or (B) the Required Lenders determine that for any reason in connection with any request for a SOFR Rate Loan or a conversion thereto or a continuation thereof that Adjusted Daily Simple SOFR or Adjusted Term SOFR for any requested Interest Period with respect to a proposed Term SOFR Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan, and the Required Lenders have provided notice of such determination to the Agent, in each case of (A) and (B), on or prior to the first day of any Interest Period, the Agent will promptly so notify the Borrower and each Lender. Upon notice thereof by the Agent to the Borrower, (i) any obligation of the Lenders to make or continue the applicable SOFR Rate Loans or to convert Base Rate Loans to SOFR Rate Loans shall be suspended (to the extent of the affected Interest Periods) until the Agent revokes such notice and (ii) if such determination affects the calculation of the Base Rate, the Agent shall during the period of such suspension compute the Base Rate without reference to clause (iii) of the definition of “Base Rate” until the Agent revokes such notice. Upon receipt of such notice, (i) the Borrower may revoke any pending request for a borrowing of, conversion to or continuation of any applicable SOFR Rate Loans (to the extent of the affected SOFR Rate Loans or affected Interest Periods) or, failing that, the Borrower will be deemed to have converted any such request into a request for a borrowing of or conversion to Base Rate Loans in the amount specified therein and (ii) any outstanding affected SOFR Rate Loans will be deemed to have been converted into Base Rate Loans at the end of the applicable Interest Period. Upon any such conversion, the Borrower shall also pay accrued interest on the amount so converted, together with any additional amounts required pursuant to §4.7. If the Agent determines (which determination shall be conclusive and binding absent manifest error) that “Adjusted Term SOFR” cannot be determined pursuant to the definition thereof on any given day, the interest rate on Base Rate Loans shall be determined by the Agent without reference to clause (iii) of the definition of “Base Rate” until the Agent revokes such determination. 

	
 
	
§4.6
	
Illegality

.  Notwithstanding any other provisions herein, if any present or future law, regulation, treaty or directive or the interpretation or application thereof shall make it unlawful, or any central bank or other Governmental Authority having jurisdiction over a Lender or its Applicable Lending Office shall assert that it is unlawful, for any Lender to make or maintain SOFR Rate Loans, such Lender shall forthwith give notice of such circumstances to the Agent and the Borrower and thereupon (a) the commitment of the Lenders to make SOFR Rate Loans shall forthwith be suspended and any Loan Request with respect to such borrowing shall be ineffective, and (b)(i) any such Term SOFR Loan then outstanding shall be converted automatically into (X) a Daily Simple SOFR Loan so long as the Adjusted Daily Simple SOFR is not also the subject of this §4.6 or (Y) a Base Rate Loan if the Adjusted Daily Simple SOFR also is the subject of this §4.6, in each case, on the last day of each Interest Period applicable to such Term SOFR Loan (or the next succeeding Business Day if such day is not a Business Day) or within such earlier period as may be required by law, and (ii) any such Daily Simple SOFR Loan then outstanding shall be converted automatically into a Base Rate Loan upon 

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the occurrence of such event or within such earlier period as may be required by law. Notwithstanding the foregoing, before giving such notice, the applicable Lender shall designate a different lending office if such designation will void the need for giving such notice and will not, in the judgment of such Lender, be otherwise materially disadvantageous to such Lender or increase any costs payable by the Borrower hereunder.

	
 
	
§4.7
	
Breakage Compensation

.  The Borrower shall compensate each Lender upon its written request (which request shall set forth the detailed basis for requesting and the method of calculating such compensation), for all reasonable losses, costs, expenses and liabilities (including, without limitation, any loss, cost, expenses or liability incurred by reason of the liquidation or reemployment of deposits or other funds required by such Lender to fund its SOFR Rate Loans) which such Lender may sustain in connection with any of the following: (i) if for any reason (other than a default by such Lender or the Agent) a borrowing of SOFR Rate Loans does not occur on a date specified therefor in a Loan Request or a Notice of Continuation or Conversion (whether or not withdrawn by the Borrower or deemed to be withdrawn or ineffective pursuant to the terms of this Agreement); (ii) if any repayment, prepayment, Conversion or Continuation of any SOFR Rate Loan occurs on a date that is not the last day of an Interest Period or Interest Payment Date applicable thereto; (iii) if any prepayment of any of its SOFR Rate Loans is not made on any date specified in a notice of prepayment given by the Borrower; (iv) as a result of an assignment by a Lender of any SOFR Rate Loan other than on the last day of the Interest Period applicable thereto pursuant to a request by the Borrower in accordance herewith or (v) as a consequence of (y) any other default by the Borrower to repay or prepay any SOFR Rate Loans when required by the terms of this Agreement (collectively, “Breakage Costs”). The written request of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such request within fifteen (15) days of receipt of written notice thereof, or such earlier date as may be required by this Agreement. 

	
 
	
§4.8
	
Additional Costs, Etc.

.  Notwithstanding anything herein to the contrary, if any present or future Applicable Law, which expression, as used herein, includes statutes, rules and regulations thereunder and interpretations thereof by any competent court or by any governmental or other regulatory body or official charged with the administration or the interpretation thereof and requests, directives, instructions and notices at any time (or from time to time) hereafter made upon or otherwise issued to any Lender or the Agent by any central bank or other fiscal, monetary or other authority (whether or not having the force of law), shall:

(a)subject any Lender or the Agent to any tax, levy, impost, duty, charge, fee, deduction or withholding of any nature with respect to this Agreement, the other Loan Documents, such Lender’s Commitment, a Letter of Credit or the Loans (other than for Indemnified Taxes, Taxes described in clauses (b) through (d) of the definition of Excluded Taxes, and Connection Income Taxes), or

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(b)materially change the basis of taxation (except for changes in taxes on gross receipts, income or profits or its franchise tax) of payments to any Lender of the principal of or the interest on any Loans or any other amounts payable to any Lender under this Agreement or the other Loan Documents, or

(c)impose or increase or render applicable any special deposit, compulsory loan, insurance charge, reserve, assessment, liquidity, capital adequacy or other similar requirements (whether or not having the force of law and which are not already reflected in any amounts payable by the Borrower hereunder) against assets held by, or deposits in or for the account of, or loans by, or commitments of an office of any Lender, or

(d)impose on any Lender or the Agent any other conditions or requirements with respect to this Agreement, the other Loan Documents, the Loans, such Lender’s Commitment, a Letter of Credit or any class of loans or commitments of which any of the Loans or such Lender’s Commitment forms a part; and the result of any of the foregoing is:

(i)to increase the cost to any Lender of making, continuing, converting to, funding, issuing, renewing, extending or maintaining any of the Loans, the Letters of Credit or such Lender’s Commitment, or

(ii)to reduce the amount of principal, interest or other amount payable to any Lender or the Agent hereunder on account of such Lender’s Commitment or any of the Loans or the Letters of Credit, or

(iii)to require any Lender or the Agent to make any payment or to forego any interest or other sum payable hereunder, the amount of which payment or foregone interest or other sum is calculated by reference to the gross amount of any sum receivable or deemed received by such Lender or the Agent from the Borrower hereunder,

then, and in each such case, the Borrower will, within fifteen (15) days of demand made by such Lender or (as the case may be) the Agent at any time and from time to time and as often as the occasion therefor may arise, pay to such Lender or the Agent such additional amounts as such Lender or the Agent shall determine in good faith to be sufficient to compensate such Lender or the Agent for such additional cost, reduction, payment or foregone interest or other sum.  Each Lender and the Agent in determining such amounts may use any reasonable averaging and attribution methods generally applied by such Lender or the Agent.

	
 
	
§4.9
	
Capital Adequacy

.  If after the date hereof any Lender determines that (a) the adoption of or change in any Applicable Law regarding liquidity or capital requirements for banks or bank holding companies or any change in the interpretation or application thereof by any Governmental Authority charged with the administration thereof, or (b) compliance by such Lender or its parent bank holding company with any guideline, request or directive of any such entity regarding liquidity or capital adequacy (whether or not having the force of law), has the effect of reducing the return on such Lender’s or such holding company’s capital as a consequence of such Lender’s commitment to make Loans or participate in Letters of Credit hereunder to a level below that which such Lender 

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or holding company could have achieved but for such adoption, change or compliance (taking into consideration such Lender’s or such holding company’s then existing policies with respect to capital adequacy and assuming the full utilization of such entity’s capital) by any amount deemed by such Lender to be material, then such Lender may notify the Borrower thereof.  The Borrower agrees to pay to such Lender the amount of such reduction in the return on capital as and when such reduction is determined, upon presentation by such Lender of a statement of the amount setting forth the Lender’s calculation thereof.  In determining such amount, such Lender may use any reasonable averaging and attribution methods generally applied by such Lender.  For purposes of §4.8 and this §4.9, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, publications, orders, guidelines and directives thereunder or issued in connection therewith and all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall be deemed to have been adopted and gone into effect after the date hereof regardless of when adopted, enacted or issued.

	
 
	
§4.10
	
Intentionally Omitted

.  

	
 
	
§4.11
	
Default Interest; Late Charge

.  Following the occurrence and during the continuance of any Event of Default, and regardless of whether or not the Agent or the Lenders shall have accelerated the maturity of the Loans, all Loans shall bear interest payable on demand at a rate per annum equal to the sum of the Base Rate plus the Applicable Margin plus two percent (2.0%) (the “Default Rate”), until such amount shall be paid in full (after as well as before judgment) and the fee payable with respect to Letters of Credit shall be increased to a rate equal to two percent (2.0%) above the Letter of Credit fee that would otherwise be applicable to such time, if any of such amounts shall exceed the maximum rate permitted by law, then at the maximum rate permitted by law.  In addition, the Borrower shall pay a late charge equal to four percent (4%) of any amount of interest and/or principal payable on the Loans or any other amounts payable hereunder or under the other Loan Documents, which is not paid by the Borrower within ten (10) days of the date when due (or, in the case of amounts due at the Maturity Date, within fifteen (15) Business Days of such date).

	
 
	
§4.12
	
Certificate

.  A certificate setting forth any amounts payable pursuant to §4.7, §4.8, §4.9 or §4.11 and a reasonably detailed explanation of such amounts which are due, submitted by any Lender or the Agent to the Borrower, shall be conclusive in the absence of manifest error, and shall be promptly provided to the Agent and the Borrower upon their written request.

	
 
	
§4.13
	
Limitation on Interest

.  Notwithstanding anything in this Agreement or the other Loan Documents to the contrary, all agreements between or among the Borrower, the Guarantors, the Lenders and the Agent, whether now existing or hereafter arising and whether written or oral, are hereby limited so that in no contingency, 

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whether by reason of acceleration of the maturity of any of the Obligations or otherwise, shall the interest contracted for, charged or received by the Lenders exceed the maximum amount permissible under applicable law.  If, from any circumstance whatsoever, interest would otherwise be payable to the Lenders in excess of the maximum lawful amount, the interest payable to the Lenders shall be reduced to the maximum amount permitted under applicable law; and if from any circumstance the Lenders shall ever receive anything of value deemed interest by applicable law in excess of the maximum lawful amount, an amount equal to any excessive interest shall be applied to the reduction of the principal balance of the Obligations and to the payment of interest or, if such excessive interest exceeds the unpaid balance of principal of the Obligations, such excess shall be refunded to the Borrower.  All interest paid or agreed to be paid to the Lenders shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full period until payment in full of the principal of the Obligations (including the period of any renewal or extension thereof) so that the interest thereon for such full period shall not exceed the maximum amount permitted by applicable law.  This §4.13 shall control all agreements between or among the Borrower, the Guarantors, the Lenders and the Agent.

	
 
	
§4.14
	
Certain Provisions Relating to Increased Costs and Non-Funding Lenders

.  If a Lender gives notice of the existence of the circumstances set forth in §4.6 or any Lender requests compensation for any losses or costs to be reimbursed pursuant to any one or more of the provisions of §4.3(b) (as a result of the imposition of U.S. withholding taxes on amounts paid to such Lender under this Agreement), §4.8 or §4.9, then, upon request of Borrower, such Lender, as applicable, shall use reasonable efforts in a manner consistent with such institution’s practice in connection with loans like the Loan of such Lender to eliminate, mitigate or reduce amounts that would otherwise be payable by Borrower under the foregoing provisions, provided that such action would not be otherwise prejudicial to such Lender, including, without limitation, by designating another of such Lender’s offices, branches or affiliates; the Borrower agreeing to pay all reasonably incurred costs and expenses incurred by such Lender in connection with any such action.  Notwithstanding anything to the contrary contained herein, if no Default or Event of Default shall have occurred and be continuing, and if any Lender (a) has given notice of the existence of the circumstances set forth in §4.6 or has requested payment or compensation for any losses or costs to be reimbursed pursuant to any one or more of the provisions of §4.3(b) (as a result of the imposition of U.S. withholding taxes on amounts paid to such Lender under this Agreement), §4.8 or §4.9 and following the request of Borrower has been unable to take the steps described above to mitigate such amounts (each, an “Affected Lender”) or (b) has failed to make available to Agent its pro rata share of any Loan or participation in a Letter of Credit and such failure has not been cured (a “Non-Funding Lender”), then, within thirty (30) days after such notice or request for payment or compensation or failure to fund, as applicable, Borrower shall have the one-time right as to such Affected Lender or Non-Funding Lender, as applicable, to be exercised by delivery of written notice delivered to the Agent and the Affected Lender or Non-Funding Lender, as applicable, within thirty (30) days of receipt of 

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such notice or failure to fund, as applicable, to elect to cause the Affected Lender or Non-Funding Lender, as applicable, to transfer its Commitment.  The Agent shall promptly notify the remaining Lenders that each of such Lenders shall have the right, but not the obligation, to acquire a portion of the Commitment, pro rata based upon their relevant Commitment Percentages, of the Affected Lender or Non-Funding Lender, as applicable (or if any of such Lenders does not elect to purchase its pro rata share, then to such remaining Lenders in such proportion as approved by the Agent).  In the event that the Lenders do not elect to acquire all of the Affected Lender’s or Non-Funding Lender’s Commitment, then the Agent shall endeavor to obtain a new Lender to acquire such remaining Commitment.  Upon any such purchase of the Commitment of the Affected Lender or Non-Funding Lender, as applicable, the Affected Lender’s or Non-Funding Lender’s interest in the Obligations and its rights hereunder and under the Loan Documents shall terminate at the date of purchase, and the Affected Lender or Non-Funding Lender, as applicable, shall promptly execute all documents reasonably requested to surrender and transfer such interest.  The purchase price for the Affected Lender’s or Non-Funding Lender’s Commitment shall equal any and all amounts outstanding and owed by Borrower to the Affected Lender or Non-Funding Lender, as applicable, including principal, prepayment premium or fee, and all accrued and unpaid interest or fees.

	
 
	
§4.15
	
Permanent Inability to Determine Rate; Benchmark Replacement.  

(a)Benchmark Replacement.  Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event, the Agent and the Borrower may amend this Agreement to replace the then-current Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Agent has posted such proposed amendment to all Lenders and the Borrower so long as the Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders. No replacement of the then-current Benchmark with a Benchmark Replacement pursuant to this §4.15 will occur prior to the applicable Benchmark Transition Start Date. Unless and until a Benchmark Replacement is effective in accordance with this clause (a), all Loans shall be converted into Base Rate Loans in accordance with the provisions of Section 4.6 above.

(b)Benchmark Replacement Conforming Changes.  In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

(c)Notices; Standards for Decisions and Determinations.  The Agent will promptly notify the Borrower and the Lenders of the implementation of any Benchmark Replacement and the effectiveness of any Conforming Changes.  The Agent will notify the 

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Borrower and the removal or reinstatement of any tenor of a Benchmark. Any determination, decision or election that may be made by the Agent or Lenders pursuant to this §4.15, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this §4.15.

(d)Unavailability of Tenor of Benchmark.  Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if any then-current Benchmark is a term rate (including the Term SOFR Reference Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Agent in its reasonable discretion or (B) the administrator of such Benchmark or the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is not or will not be representative or in compliance with or aligned with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks, then the Agent may modify the definition of “Interest Period” (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such unavailable, non-representative, non-compliant or non-aligned tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is not or will not be representative or incompliance with or aligned with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks for a Benchmark (including a Benchmark Replacement), then the Agent may modify the definition of “Interest Period” (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor. 

(e)Benchmark Unavailability Period.  Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for the applicable SOFR Rate Loan of, conversion to or continuation of SOFR Rate Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Loans. During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of Base Rate based upon Adjusted Term SOFR (or then-current Benchmark) will not be used in any determination of Base Rate. 

	
§5.
	
COLLATERAL SECURITY; GUARANTORS

.

	
 
	
§5.1
	
Collateral

.  The Obligations shall be secured by a perfected first priority lien and security interest to be held by the Agent for the benefit of the Lenders on the Collateral, pursuant to the terms of the Security Documents.

	
 
	
§5.2
	
Appraisal

.

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(a)The Agent shall on behalf of the Lenders obtain current Agent Appraisals of each of the Mortgaged Properties (other than 23-85 87th Street, 612 Wortman and 950 Bridgeport); provided, however, that so long as no Event of Default has occurred and is continuing, Borrower shall not be obligated to pay for the cost of, and the Agent shall not be required to obtain on behalf of the Lenders, any Appraisal of Real Estate which is then a Mortgaged Property if the Mortgaged Property is released as Collateral pursuant to §5.5 within six (6) months after the date such Real Estate first became a Mortgaged Property (provided, that, if any of 23-85 87th Street, 612 Wortman and 950 Bridgeport are not released as Collateral pursuant to §5.5 within six (6) months after the date such Real Estate first became a Mortgaged Property, then the Agent shall have the right, but not the obligation, to obtain an Appraisal for such Real Estate at Borrower’s sole cost and expense).  In any such case, said Agent Appraisals will be ordered by Agent and used to determine the current Appraised Value of the Mortgaged Properties, and the Borrower shall pay to Agent within ten (10) days after written demand all reasonable costs of such Agent Appraisals.

(b)[Intentionally Omitted.]  

(c)The Agent may obtain new Agent Appraisals or an update to existing Agent Appraisals with respect to the Mortgaged Properties, or any of them (including, without limitation, 23-85 87th Street, 612 Wortman or 950 Bridgeport to the extent the same are Mortgaged Properties hereunder), as the Agent shall determine (i) at any time that the regulatory requirements of any Lender generally applicable to real estate loans of the category made under this Agreement as reasonably interpreted by such Lender shall require more frequent Agent Appraisals, (ii) at any time following and during the continuance of an Event of Default, or (iii) if the Agent reasonably believes that there has been a casualty, Taking or material adverse change or deterioration with respect to any Mortgaged Property, including, without limitation, a material change in the market in which any Mortgaged Property is located.  The expense of such Agent Appraisals and/or updates performed pursuant to this §5.2(c) shall be borne by the Borrower and payable to the Agent within ten (10) days of demand; provided the Borrower shall not be obligated to pay for an Agent Appraisal of a Mortgaged Property obtained pursuant to this §5.2(c) more often than once in any period of twelve (12) months if no Event of Default exists.

(d)The Borrower acknowledges that the Agent has the right to approve any Appraisal performed pursuant to this Agreement.  The Borrower further agrees that the Lenders and the Agent do not make any representations or warranties with respect to any such Appraisal and shall have no liability as a result of or in connection with any such Appraisal for statements contained in such Appraisal, including without limitation, the accuracy and completeness of information, estimates, conclusions and opinions contained in such Appraisal, or variance of such Appraisal from the fair value of such property that is the subject of such Appraisal given by the local tax assessor’s office, or the Borrower’s idea of the value of such property.

	
 
	
§5.3
	
Additional Collateral.

(a)In the event that Borrower desires to use proceeds of the Loans or any Letter of Credit to directly or indirectly acquire Real Estate or any interest therein or to refinance indebtedness secured thereby, such Real Estate shall be required to become a Mortgaged Property as a condition thereto.  No Real Estate shall be included as a Mortgaged Property unless and until the following conditions precedent shall have been satisfied:

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(i)such Real Estate shall be Eligible Real Estate;

(ii)if such Real Estate is owned by a Wholly-Owned Subsidiary of the Borrower, said Wholly-Owned Subsidiary shall have executed a Joinder Agreement and satisfied the conditions of §5.4;

(iii)the Borrower or the Wholly-Owned Subsidiary which is the owner of the Real Estate shall have executed and delivered to the Agent all Guarantor Qualification Documents, all of which instruments, documents or agreements shall, to the extent required by this Agreement, be in form and substance reasonably satisfactory to the Agent; and

(iv)after giving effect to the inclusion of such Eligible Real Estate, each of the representations and warranties made by or on behalf of the Borrower or the Guarantors or any of their respective Subsidiaries contained in this Agreement, the other Loan Documents or in any document or instrument delivered pursuant to or in connection with this Agreement shall be true in all material respects both as of the date as of which it was made and shall also be true as of the time of the addition of such Mortgaged Property with the same effect as if made at and as of that time, except to the extent of changes resulting from transactions permitted by the Loan Documents (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct only as of such specified date), and no Default or Event of Default shall have occurred and be continuing and the Agent shall have received a certificate of the Borrower to such effect.  For the avoidance of doubt, the delivery by Borrower to Agent of the Guarantor Qualification Documents or the Eligible Real Estate Qualification Documents shall not modify any representation, warranty or covenant in this Agreement or the other Loan Documents.

(b)If such Real Estate is owned by a Wholly Owned Subsidiary of Borrower, then Borrower shall pledge to Agent 100% of the Equity Interests in the Wholly Owned Subsidiary owning or leasing the Real Estate pursuant to the Assignment of Interests and as provided in Schedule 5.3.  

(c)Borrower shall on or before the date that is ninety (90) days (unless extended in the Agent’s sole discretion, but in any case, not to exceed one hundred and twenty (120) days) following the date of acquisition of any Real Estate by Borrower or such Subsidiary which becomes a Mortgaged Property or following the disbursement of any proceeds of the Loan to be used to refinance indebtedness secured thereby, cause to be executed and delivered to the Agent all Eligible Real Estate Qualification Documents, all of which to the extent required by this Agreement, shall be in form and substance satisfactory to Agent.  

(d)The Mortgage and Assignment of Leases and Rents for each Mortgaged Property shall be effective upon the delivery thereof, but shall not be recorded until the occurrence of an Event of Default (except with respect to 23-85 87th Street and 612 Wortman, for which the Mortgages, Assignments of Leases and Rents, UCC financing statements and fixture filings shall be recorded and/or filed, as applicable, on or about the First Amendment Date).  Upon the occurrence of an Event of Default, the Agent may, and upon the direction of the Required Lenders, shall, record the Mortgage and Assignment of Leases and Rents and file UCC financing statements and fixture filings with respect to the Mortgaged Properties as deemed necessary by Agent in the 

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public records without any further action of or notice to the Borrower or any other party and without waiving such Event of Default.  In addition, the Borrower shall promptly deliver or cause to be delivered to the Agent such further documents as may be reasonably requested by the Agent relating to such Real Estate, including without limitation, owner’s affidavits, updated legal opinions and copies of leases and such changes to the Mortgage and Assignment of Leases and Rents as may be necessary or desirable to comply with changes in applicable law.  In connection with the recording of the Mortgage and Assignment of Leases and Rents for any Mortgaged Property as provided herein, the Agent may obtain, at the Borrower’s sole cost and expense, a mortgagee’s title insurance policy with respect to each Mortgaged Property encumbered by such Mortgage and Assignment of Leases and Rents in such amount as is determined by the Agent.  The Borrower shall upon demand pay the cost of any such mortgagee’s title insurance policy, the cost of any updated UCC searches, all recording costs and fees, and any and all intangible taxes or other documentary or mortgage taxes, assessments or charges which are demanded in connection with the recording of any of the Mortgages or Assignments of Leases and Rents.  In addition, the Borrower shall pay within five (5) days after demand any and all costs, fees, intangible tax, documentary or mortgage tax, assessments or charges as are demanded by any governmental authority by reason of any Mortgage or Assignment of Leases and Rents to Agent prior to the recording of the same.  In the event that the Borrower fails to pay such amounts as provided in this section, then the Banks may advance such amounts as are required to be paid as Loans hereunder, which Loans shall bear interest at the Default Rate.

(e)Within ten (10) days of the Borrower acquiring, forming, holding or otherwise receiving or owning after the Closing Date any Equity Interest in a Subsidiary or Unconsolidated Affiliates (other than an Equity Interest in a Subsidiary that is covered by §5.4(a) or that is an Unpledgeable Interest), the Borrower shall cause to be delivered to the Agent each of the following in form and substance reasonably satisfactory to the Agent:  (i) a supplement or amendment to the Assignment of Interests (or if no Assignment of Interests has been executed by the applicable party, then the Assignment of Interests) executed by the Borrower or the applicable Subsidiary, subjecting such Equity Interest (or interest therein) to the Lien of the Assignment of Interests; (ii) all original existing certificates, if any, representing shares of Equity Interests pledged pursuant to the Assignment of Interests, together with an undated stock or similar power for each such certificate executed in blank by a duly authorized officer of Borrower or such Subsidiary, together with an Acknowledgement substantially in the form of Exhibit G to the Assignment of Interests, duly executed by any issuer of such Equity Interest; (iii) all formation and organizational agreements relating to any Person to which such pledged Equity Interest relate as Agent may reasonably require; (iv) results from a recent UCC lien search as to Borrower or the applicable Subsidiary in such jurisdictions as Agent may designate, which results shall be satisfactory to Agent; and (v) such certified organizational documents, updated good standing certificates, resolutions, incumbency certificates, legal opinions and other documents as Agent may reasonably require.

	
 
	
§5.4
	
Additional Guarantors; Release of Guarantors

.

(a)In the event that the Borrower shall request that certain Real Estate of a Wholly-Owned Subsidiary of the Borrower be included as a Mortgaged Property as contemplated by §5.3(a) and such Real Estate is included as a Mortgaged Property in accordance with the terms hereof, the Borrower shall, as a condition to such Real Estate being included as a Mortgaged 

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Property, cause each such Wholly-Owned Subsidiary, to execute and deliver to the Agent a Joinder Agreement, and such Subsidiary shall become a Guarantor hereunder and thereunder.  In addition, in the event any Subsidiary of the Borrower shall constitute a Material Subsidiary, the Borrower shall promptly cause such Subsidiary to execute and deliver to Agent a Joinder Agreement, and such Subsidiary shall become a Guarantor hereunder and thereunder.  Each such Subsidiary shall be specifically authorized, in accordance with its respective organizational documents, to be a Guarantor hereunder and thereunder and to execute the Contribution Agreement and such Security Documents as the Agent may require.  The Borrower shall further cause all representations, covenants and agreements in the Loan Documents with respect to the Guarantors to be true and correct with respect to each such Subsidiary.  In connection with the delivery of such Joinder Agreement, the Borrower shall deliver to the Agent such organizational agreements, resolutions, consents, opinions and other documents and instruments as the Agent may reasonably require.

(b)In the event that all Mortgaged Properties owned by a Subsidiary Guarantor shall have been released as Collateral for the Obligations and Hedge Obligations in accordance with the terms of this Agreement, then such Subsidiary Guarantor shall be released by Agent from liability under this Agreement, provided that such Subsidiary Guarantor is not otherwise required to be a Guarantor.

(c)The Borrower may request in writing that the Agent release, and upon receipt of such request the Agent shall release (subject to the terms hereof), a Subsidiary Guarantor that is a Guarantor solely by virtue of being a Material Subsidiary from the Guaranty so long as:  (i) no Default or Event of Default shall then be in existence or would occur as a result of such release; (ii) the Agent shall have received such written request at least ten (10) Business Days (or such shorter period as Agent may approve) prior to the requested date of release; (iii) such Subsidiary Guarantor is not the owner of a Mortgaged Property; and (iv) the Borrower shall deliver to Agent evidence reasonably satisfactory to Agent that (A) the Borrower has disposed of or simultaneously with such release will dispose of its entire interest in such Guarantor or that all of the assets of such Guarantor will be disposed of in compliance with the terms of this Agreement, and if such transaction involves the disposition by such Guarantor of all  of its assets, the net cash proceeds, if any, from such disposition are being distributed to the Borrower in connection with such disposition, or (B) such Guarantor will be the borrower with respect to Secured Indebtedness that is not prohibited under this Agreement, which Indebtedness will be secured by a Lien on the assets of such Guarantor, and the provisions of such Secured Indebtedness make such Subsidiary Guarantor an Excluded Subsidiary, or (C) the Borrower has contributed or simultaneously with such release will contribute its entire direct or indirect interest in such Guarantor to an Unconsolidated Affiliate in compliance with the terms of this Agreement, or (D) such Guarantor is an Excluded Subsidiary.  Delivery by the Borrower to the Agent of any such request for a release shall constitute a representation by the Borrower that the matters set forth in the preceding sentence (both as of the date of the giving of such request and as of the date of the effectiveness of such request) are true and correct with respect to such request.

(d)The provisions of §5.4(b) and (c) shall not entitle Borrower, General Partner or REIT to any release from the Loan Documents.

	
 
	
§5.5
	
Partial Release of Collateral

.  Provided no Default or Event of Default shall have occurred hereunder and be continuing (or would exist immediately after giving 

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effect to the transactions contemplated by this §5.5), the Agent shall release a Mortgaged Property or Equity Interests from the lien or security title of the Security Documents encumbering the same (and if such Collateral is a Mortgaged Property, such release shall include the Equity Interests in the applicable Subsidiary Guarantor) upon the request of the Borrower in connection with a sale or other permanent disposition or refinancing of such Mortgaged Property or other Real Estate to which the Equity Interests relate, as applicable, subject to and upon the following terms and conditions:

(a)the Borrower shall deliver to the Agent written notice of its desire to obtain such release no later than ten (10) days prior to the date on which such release is to be effected;

(b)the Borrower shall submit to the Agent with such request a Compliance Certificate prepared using the financial statements of the Borrower most recently provided or required to be provided to the Agent under §6.4 or §7.4 adjusted in the best good faith estimate of the Borrower to give effect to the proposed release and demonstrating that no Default or Event of Default with respect to the covenants referred to therein shall exist after giving effect to such release;

(c)all release documents to be executed by the Agent shall be in form and substance reasonably satisfactory to the Agent; provided, that, with respect to any release of the Collateral for the 23-85 87th Street and 612 Wortman Mortgaged Properties pursuant to this §5.5 or §5.6 below, at Borrower’s request, Agent agrees to deliver an assignment of one or more of the Security Documents securing such Mortgaged Property, without recourse, covenant or warranty of any nature, express or implied (other than as to authority and that the assignor is then the current holder of the Security Documents being assigned), to the holder of any mortgage providing a refinancing of such Mortgaged Property (other than Borrower, an affiliate of Borrower or a nominee of Borrower); provided, that, any such assignment shall be conditioned on the following, (i) payment by Borrower of Agent’s reasonable fees and out-of-pocket expenses incurred in connection with such assignment (including without limitation, Agent’s reasonable attorneys’ fees for the preparation, delivery and performance of such an assignment); (ii) Borrower shall have caused the delivery of an executed Statement of Oath under Section 275 of the New York Real Property Law; (iii) such an assignment is not then prohibited by any federal, state or local law, rule, regulation, order, or by any other governmental authority; (iv) Borrower shall provide such other items, information and documents which are customarily provided for such assignments and reasonably necessary in the determination of Lender to effectuate such assignment, and (v) Borrower shall be responsible for all taxes, recording fees and other charges payable in connection with any such assignment; 

(d)the Borrower shall pay all reasonable costs and expenses of the Agent in connection with such release, including without limitation, reasonable attorney’s fees;

(e)the Borrower shall pay to the Agent for the account of the Lenders a release price, which payment shall be applied to reduce the outstanding principal balance of the Loans as provided in §3.4, in an amount equal to the gross amount received by Borrower or its Subsidiary in connection with such sale, disposition or refinancing less normal and customary closing costs paid to third parties (such amount, the “Net Disposition Proceeds”); provided, further, that in 

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connection with the release of 950 Bridgeport as a Mortgaged Property, any portion of the Net Disposition Proceeds that are applied to reduce the outstanding principal balance of the Swing Loans or the Revolving Credit Loans (either at the instruction of the Borrower or, in the absence of such instruction, as provided in §3.4) shall also result in a pro rata reduction of the Total Revolving Credit Commitment (unless and until the Total Commitment has been reduced to $70,000,000.00 or less); and provided, however, that in connection with, and as a condition to, the release of either or both of 23-85 87th Street and 612 Wortman as Mortgaged Properties, (i) the release price shall be the amount (if any) which, when applied to the outstanding principal balance of the Term Loans, Swing Loans and/or Revolving Credit Loans, would result in an aggregate outstanding principal balance of such of the Term Loans, Swing Loans and/or Revolving Credit Loans being $70,000,000.00 or less, and (ii) any portion of such release price determined in accordance with the foregoing clause (i) that is applied to the outstanding principal balance of the Swing Loans or the Revolving Credit Loans (either at the instruction of the Borrower or, in the absence of such instruction, as provided in §3.4) shall also result in a pro rata reduction of the Total Revolving Credit Commitment, such that after giving effect to such prepayment and reduction, if any, the Total Commitment shall be no more than $70,000,000.00; and      

(f)if such release is requested in connection with a financing or refinancing of such Mortgaged Property or other Real Estate, Borrower shall have complied with the terms of the Agreement Regarding Fees.

	
 
	
§5.6
	
Release of Collateral

.  Upon the refinancing or repayment of the Obligations in full and termination of the obligation to provide additional Loans or issue Letters of Credit to Borrower, then the Agent shall release the Collateral from the lien and security interest of the Security Documents and release the Borrower and Guarantors (other than with respect to obligations that survive termination of this Agreement), provided that Agent has not received a notice from the Representative or the holder of the Hedge Obligations that any Hedge Obligation is then due and payable to the holder thereof.  

	
 
	
§5.7
	
Non-Encumbrance

.  Without implying any limitation upon the generality of §8.2, the Borrower will not, and will not permit any other Person to, create or incur or suffer to be created or incurred or to exist any lien, encumbrance, mortgage, pledge, negative pledge, change, restriction or other security interest of any kind upon any Mortgaged Property described in any Mortgage (whether now owned or hereafter acquired), except for matters set forth in the Title Policies relating to such Mortgaged Property submitted to and approved by the Agent.

	
§6.
	
REPRESENTATIONS AND WARRANTIES

.

The Borrower represents and warrants to the Agent and the Lenders as follows.

	
 
	
§6.1
	
Corporate Authority, Etc.

.

(a)Incorporation; Good Standing.  REIT is a Maryland corporation duly organized pursuant to articles of incorporation filed with the Maryland Secretary of State, and is validly existing and in good standing under the laws of Maryland.  REIT conducts its business in 

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a manner which enables it to qualify as a real estate investment trust under, and to be entitled to the benefits of, Section 856 of the Code, and has elected to be treated as and is entitled to the benefits of a real estate investment trust thereunder.  The Borrower is a Delaware limited partnership duly organized pursuant to its certificate of limited partnership filed with the Delaware Secretary of State, and is validly existing and in good standing under the laws of Delaware.  The Borrower (i) has all requisite power to own its property and conduct its business as now conducted and as presently contemplated, and (ii) is in good standing and is duly authorized to do business in the jurisdiction of its organization and where any Real Estate owned by it is located and in each other jurisdiction where a failure to be so qualified in such other jurisdiction could have a Material Adverse Effect.

(b)Subsidiaries.  Each of the Guarantors and each of the Subsidiaries of the Borrower and the Guarantors (i) is a corporation, limited partnership, general partnership, limited liability company or trust duly organized under the laws of its State of organization and is validly existing and in good standing under the laws thereof, (ii) has all requisite power to own its property and conduct its business as now conducted and as presently contemplated and (iii) is in good standing and is duly authorized to do business in each jurisdiction where it is organized and where any Real Estate owned by it is located and in each other jurisdiction where a failure to be so qualified could reasonably be expected to have a Material Adverse Effect.

(c)Authorization.  The execution, delivery and performance of this Agreement and the other Loan Documents to which any of the Borrower or any Guarantor is a party and the transactions contemplated hereby and thereby (i) are within the authority of such Person, (ii) have been duly authorized by all necessary proceedings on the part of such Person, (iii) do not and will not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which such Person is subject or any judgment, order, writ, injunction, license or permit applicable to such Person, (iv) do not and will not conflict with or constitute a default (whether with the passage of time or the giving of notice, or both) under any provision of the partnership agreement, operating agreement, articles of incorporation or other charter documents or bylaws of, or any agreement or other instrument binding upon, such Person or any of its properties, (v) do not and will not result in or require the imposition of any lien or other encumbrance on any of the properties, assets or rights of such Person other than the liens and encumbrances in favor of the Agent contemplated by this Agreement and the other Loan Documents, and (vi) do not require the approval or consent of any Person other than those already obtained and delivered to the Agent.

(d)Enforceability.  This Agreement and the other Loan Documents to which any of the Borrower or any Guarantor is a party are valid and legally binding obligations of such Person enforceable in accordance with the respective terms and provisions hereof and thereof, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’  rights and general principles of equity.

	
 
	
§6.2
	
Governmental Approvals

.  The execution, delivery and performance of this Agreement and the other Loan Documents to which the Borrower or any Guarantor is a party and the transactions contemplated hereby and thereby do not require the approval or consent of, or filing or registration with, or the giving of any notice to, 

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any court, department, board, governmental agency or authority other than those already obtained, the filing of the Security Documents in the appropriate records office with respect thereto, and filings after the First Amendment Date of disclosures with the SEC.

	
 
	
§6.3
	
Title to Properties

.  Except as indicated on Schedule 6.3 hereto, REIT and its Subsidiaries own or lease all of the assets reflected in the consolidated balance sheet of the REIT as of the Balance Sheet Date or acquired or leased since that date (except property and assets sold or otherwise disposed of in the ordinary course of business since that date) subject to no rights of others, including any mortgages, leases pursuant to which REIT or any of its Subsidiaries or any of their respective Affiliates is the lessee, conditional sales agreements, title retention agreements, liens or other encumbrances except Permitted Liens.

	
 
	
§6.4
	
Financial Statements

.  The Borrower has furnished to the Agent:  (a) the consolidated balance sheet balance sheet of REIT and its Subsidiaries as of the Balance Sheet Date and the related consolidated statement of income and cash flow as of the Balance Sheet Date certified by the chief financial officer of REIT, (b) an unaudited statement of Net Operating Income for the period ending March 31, 2022, reasonably satisfactory in form to the Agent and certified by the chief financial officer of REIT as fairly presenting the Net Operating Income for such periods, and (c) certain other financial information relating to the Borrower, the Guarantors and the Collateral, including, without limitation, the Real Estate.  The balance sheet and statements referred to in clauses (a) and (b) above have been prepared in accordance with generally accepted accounting principles and fairly present the consolidated financial condition of REIT and its Subsidiaries as of such dates and the consolidated results of the operations of REIT and its Subsidiaries for such periods.  There are no liabilities, contingent or otherwise, of REIT or any of its Subsidiaries involving material amounts not disclosed in said financial statements and the related notes thereto.

	
 
	
§6.5
	
No Material Changes

.  Since the Balance Sheet Date or the date of the most recent financial statements delivered pursuant to §7.4 (with the date which is the most recent being applicable), there has occurred no materially adverse change in the financial condition, operations, business or assets of REIT and its Subsidiaries taken as a whole as shown on or reflected in the consolidated balance sheets of REIT as of the Balance Sheet Date, or its consolidated statement of income or cash flows as of the Balance Sheet Date, other than changes in the ordinary course of business that have not and could not reasonably be expected to have a Material Adverse Effect.  As of the First Amendment Date, except as set forth on Schedule 6.5 hereto, there has occurred no materially adverse change in the financial condition, operations, business or assets of REIT, its Subsidiaries or any of the Real Estate from the condition shown on the financial statements delivered to the Agent pursuant to §6.4 other than changes in the ordinary course of business that have not had any materially adverse effect either individually or in the aggregate on the business, assets, operations or financial condition of REIT and its Subsidiaries, considered as a whole, or of any of the Real Estate.

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§6.6
	
Franchises, Patents, Copyrights, Etc.

.  The Borrower, the Guarantors and their respective Subsidiaries possess all franchises, patents, copyrights, trademarks, trade names, service marks, licenses and permits, and rights in respect of the foregoing, adequate for the conduct of their business substantially as now conducted without known conflict with any rights of others.  Except as set forth on Schedule 6.6 hereto or in any Mortgage accepted after the First Amendment Date, none of the Mortgaged Properties is owned or operated by the Borrower or its Subsidiaries under or by reference to any trademark, trade name, service mark or logo, and none of the trademarks, tradenames, service marks or logos are registered or subject to any license or provision of law limiting their assignability or use except as specifically set forth on Schedule 6.6 or in any Mortgage accepted after the First Amendment Date.

	
 
	
§6.7
	
Litigation

.  Except as stated on Schedule 6.7, there are no actions, suits, proceedings or investigations of any kind pending or to the knowledge of the Borrower threatened against the Borrower, any Guarantor or any of their respective Subsidiaries before any court, tribunal, arbitrator, mediator or administrative agency or board which question the validity of this Agreement or any of the other Loan Documents, any action taken or to be taken pursuant hereto or thereto, the Collateral or any lien, security title or security interest created or intended to be created pursuant hereto or thereto, or which if adversely determined could reasonably be expected to have a Material Adverse Effect.  Except as set forth on Schedule 6.7, as of the First Amendment Date there are no judgments, final orders or awards outstanding against or affecting the Borrower, any Guarantor, any of their respective Subsidiaries or any Collateral.  No injunction, writ, temporary restraining order or any order of any nature has been issued by any court or other Governmental Authority purporting to enjoin or restrain the execution, delivery or performance of this Agreement or any other Loan Document, or directing that the transactions provided for herein or therein not be consummated as herein or therein provided.

	
 
	
§6.8
	
No Material Adverse Contracts, Etc.

.  None of the Borrower, any Guarantor or any of their respective Subsidiaries is subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation that has or is expected in the future to have a Material Adverse Effect.  None of the Borrower, any Guarantor or any of their respective Subsidiaries is a party to any contract or agreement that has or could reasonably be expected to have a Material Adverse Effect.

	
 
	
§6.9
	
Compliance with Other Instruments, Laws, Etc.

.  None of the Borrower, any Guarantor or any of their respective Subsidiaries is in violation of any provision of its charter or other organizational documents, bylaws, or any agreement or instrument to which it is subject or by which it or any of its properties is bound or any decree, order, judgment, statute, license, rule or regulation, in any of the foregoing cases in a manner that has had or could reasonably be expected to have a Material Adverse Effect.

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§6.10
	
Tax Status

.  Each of the Borrower, the Guarantors and their respective Subsidiaries (a) has made or filed all federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject or has obtained an extension for filing, (b) has paid prior to delinquency all taxes and other governmental assessments and charges shown or determined to be due on such returns, reports and declarations except those which are being contested in good faith and by appropriate proceedings as permitted by this Agreement, and (c) has set aside on its books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply.  Except as set forth on Schedule 6.10, there are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers or partners of such Person know of no basis for any such claim.  Except as set forth on Schedule 6.10, there are no audits pending or to the knowledge of the Borrower threatened with respect to any tax returns filed by the Borrower, any Guarantor or their respective Subsidiaries.  The taxpayer identification number for REIT is 20-5188065, the taxpayer identification number for the General Partner is 45-5323164 and the taxpayer identification number for the Borrower is 38-3887995.

	
 
	
§6.11
	
No Event of Default

.  No Default or Event of Default has occurred and is continuing.

	
 
	
§6.12
	
Investment Company Act

.  None of the Borrower, the Guarantors or any of their respective Subsidiaries is an “investment company”, or an “affiliated company” or a “principal underwriter” of an “investment company”, as such terms are defined in the Investment Company Act of 1940.

	
 
	
§6.13
	
Setoff, Etc.

.  The Collateral and the rights of the Agent and the Lenders with respect to the Collateral are not subject to any setoff, claims, withholdings or other defenses by the Borrower or any of its Subsidiaries or Affiliates or, to the best knowledge of the Borrower, any other Person.

	
 
	
§6.14
	
Certain Transactions

.  Except as disclosed on Schedule 6.14 hereto, none of the partners, officers, trustees, managers, members, directors, or employees of the Borrower, any Guarantor or any of their respective Subsidiaries is, nor shall any such Person become, a party to any transaction with the Borrower, any Guarantor or any of their respective Subsidiaries or Affiliates (other than for services as partners, managers, members, employees, officers and directors), including any agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any partner, officer, trustee, director or such employee or, to the knowledge of the Borrower, any corporation, partnership, trust or other entity in which any partner, officer, trustee, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, which are on terms less favorable to the Borrower, a Guarantor or any of their respective Subsidiaries than those that would be obtained in a comparable arms-length transaction.

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§6.15
	
Employee Benefit Plans

.  The Borrower, each Guarantor and each ERISA Affiliate has fulfilled its obligation, if any, under the minimum funding standards of ERISA and the Code with respect to each Employee Benefit Plan, Multiemployer Plan or Guaranteed Pension Plan and is in compliance in all material respects with the presently applicable provisions of ERISA and the Code with respect to each Employee Benefit Plan, Multiemployer Plan or Guaranteed Pension Plan.  Neither the Borrower, any Guarantor nor any ERISA Affiliate has (a) sought a waiver of the minimum funding standard under Section 412 of the Code in respect of any Employee Benefit Plan, Multiemployer Plan or Guaranteed Pension Plan, (b) failed to make any contribution or payment to any Employee Benefit Plan, Multiemployer Plan or Guaranteed Pension Plan, or made any amendment to any Employee Benefit Plan, Multiemployer Plan or Guaranteed Pension Plan, which has resulted or could result in the imposition of a Lien or the posting of a bond or other security under ERISA or the Code, or (c) incurred any liability under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA.  None of the assets of REIT or any of its Subsidiaries, including, without limitation, any Mortgaged Property or other Collateral, constitutes a “plan asset” of any Employee Plan, Multiemployer Plan or Guaranteed Pension Plan.

	
 
	
§6.16
	
Disclosure

.  All of the representations and warranties made by or on behalf of the Borrower, the Guarantors and their respective Subsidiaries in this Agreement and the other Loan Documents or any document or instrument delivered to the Agent or the Lenders pursuant to or in connection with any of such Loan Documents are true and correct in all material respects, and neither the Borrower nor any Guarantor has failed to disclose such information as is necessary to make such representations and warranties not misleading.  All information contained in this Agreement, the other Loan Documents or otherwise furnished to or made available to the Agent or the Lenders by or on behalf of the Borrower, any Subsidiary or any Guarantor, as supplemented to date, taken as a whole, is and, when delivered, will be true and correct in all material respects and, as supplemented to date, does not, and when delivered will not (to Borrower’s knowledge), contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein not misleading.  The written information, reports and other papers and data with respect to the Borrower, any Subsidiary, any Guarantor or the Collateral, including, without limitation, the Mortgaged Properties (other than projections and estimates) furnished to the Agent or the Lenders in connection with this Agreement or the obtaining of the Commitments of the Lenders hereunder was, at the time so furnished, taken as a whole, complete and correct in all material respects, or has been subsequently supplemented by other written information, reports or other papers or data, to the extent necessary to give in all material respects a true and accurate knowledge of the subject matter in all material respects; provided that such representation shall not apply to (a) the accuracy of any appraisal, title commitment, survey, or engineering and environmental reports prepared by third parties or legal conclusions or analysis provided by the Borrower’s or the Guarantors’ counsel (although the Borrower and the Guarantors have no reason to believe that the Agent and the Lenders may not rely on the accuracy thereof) or (b) budgets, projections and other forward-looking speculative 

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information prepared in good faith by the Borrower (except to the extent the related assumptions were when made manifestly unreasonable).

	
 
	
§6.17
	
Trade Name; Place of Business

.  Neither the Borrower nor any Guarantor uses any trade name and conducts business under any name other than its actual name set forth in the Loan Documents.  The principal place of business of the Borrower is 60 Hempstead Avenue, Suite 718, West Hempstead, New York 11552.

	
 
	
§6.18
	
Regulations T, U and X

.  No portion of any Loan is to be used for the purpose of purchasing or carrying any “margin security” or “margin stock” as such terms are used in Regulations T, U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R.  Parts 220, 221 and 224.  Neither the Borrower nor any Guarantor is engaged, nor will it engage, principally or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any “margin security” or “margin stock” as such terms are used in Regulations T, U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R.  Parts 220, 221 and 224.

	
 
	
§6.19
	
Environmental Compliance

.  The Borrower, in the case of Mortgaged Properties acquired after the First Amendment Date will obtain and provide to the Agent, written environmental site assessment reports of the Environmental Engineer, which reports shall be in form and substance satisfactory to the Agent (collectively, the “Environmental Reports”).  Except as set forth in the executive summaries attached as Schedule 6.19 hereto with respect to the Real Estate of the Borrower and its Subsidiaries owned as of the First Amendment Date or in the Environmental Reports with respect to Mortgaged Properties, the Borrower makes the following representations and warranties:

(a)None of the Borrower, the Guarantors or their respective Subsidiaries nor any manager of the Real Estate, nor any tenant or operations thereon, is in violation, or alleged violation, of any judgment, decree, order, law, license, rule or regulation pertaining to environmental matters, including without limitation, those arising under any Environmental Law, which violation (i) involves Real Estate (other than the Mortgaged Properties) and has had or could reasonably be expected to have a Material Adverse Effect or (ii) involves a Mortgaged Property.

(b)None of the Borrower, any Guarantor nor any of their respective Subsidiaries has received notice from any third party including, without limitation, any Governmental Authority, (i) that it has been identified by the United States Environmental Protection Agency (“EPA”) as a potentially responsible party under CERCLA with respect to a site listed on the National Priorities List, 40 C.F.R. Part 300 Appendix B (1986); (ii) that any Hazardous Substance(s) which it has generated, transported or disposed of have been found at any site at which a federal, state or local agency or other third party has conducted or has ordered that the Borrower, any Guarantor or any of their respective Subsidiaries conduct a remedial investigation, removal or other response action pursuant to any Environmental Law; or (iii) that it is or shall be a named party to any claim, action, cause of action, complaint, or legal or administrative proceeding (in each case, contingent or otherwise) arising out of any third party’s incurrence of costs, expenses, losses or damages of any kind whatsoever in connection with the 

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release of Hazardous Substances, which in any case (i) involves Real Estate (other than the Mortgaged Properties) and has had or could reasonably be expected to have a Material Adverse Effect or (ii) involves a Mortgaged Property.

(c)(i) no portion of the Real Estate has been used for the handling, processing, storage or disposal of Hazardous Substances except in accordance with applicable Environmental Laws, and no underground tank or other underground storage receptacle for Hazardous Substances is located on any portion of the Real Estate except those which are being operated and maintained in compliance with Environmental Laws; (ii) in the course of any activities conducted by the Borrower, the Guarantors, their respective Subsidiaries or the tenants of their properties, no Hazardous Substances have been generated or are being used on the Real Estate except in the ordinary course of the Borrower’s, the Guarantors’ and their respective Subsidiaries’ respective businesses or the tenant’s residency and in accordance with applicable Environmental Laws; (iii) there has been no past or present Release or threatened Release of Hazardous Substances on, upon, into or from the Real Estate; (iv) there have been no Releases on, upon, from or into any real property in the vicinity of any of the Real Estate which, through soil or groundwater contamination, may have come to be located on the Real Estate; and (v) any Hazardous Substances that have been generated on any of the Real Estate have been transported off‐site in accordance with all applicable Environmental Laws (except with respect to the foregoing in this §6.19(c) as to any Real Estate (other than the Mortgaged Properties) where the foregoing has not had or could not reasonably be expected to have a Material Adverse Effect).

(d)none of the Borrower, the Guarantors, their respective Subsidiaries nor the Real Estate is subject to any applicable Environmental Law requiring the performance of Hazardous Substances site assessments, or the removal or remediation of Hazardous Substances, or the giving of notice to any governmental agency or the recording or delivery to other Persons of an environmental disclosure document or statement in each case by virtue of the transactions set forth herein and contemplated hereby, or as a condition to the recording of the Mortgages or to the effectiveness of any other transactions contemplated hereby, except for such matters with which the Borrower, the Guarantors, their respective Subsidiaries shall have complied with as of the First Amendment Date.

(e)There are no existing or closed sanitary landfills, solid waste disposal sites, or hazardous waste treatment, storage or disposal facilities (i) on or affecting the Real Estate (other than the Mortgaged Properties) except where such existence has not had or could not be reasonably be expected to have a Material Adverse Effect, or (ii) on or affecting a Mortgaged Property.

(f)There has been no claim by any party that any use, operation, or condition of the Real Estate has caused any nuisance or any other liability or adverse condition on any other property, nor is there any basis for such a claim.

	
 
	
§6.20
	
Subsidiaries; Organizational Structure

.  Schedule 6.20(a) sets forth, as of the First Amendment Date, all of the Subsidiaries of REIT, the form and jurisdiction of organization of each of the Subsidiaries, and REIT’s direct and indirect ownership interests therein.  Schedule 6.20(b) sets forth, as of the First Amendment Date, all of the Unconsolidated Affiliates of the REIT and its Subsidiaries, the form and jurisdiction of organization of each of the Unconsolidated Affiliates, REIT’s or its 

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Subsidiary’s ownership interest therein and the other owners of the applicable Unconsolidated Affiliate.  No Person owns any legal, equitable or beneficial interest in any of the Persons set forth on Schedules 6.20(a) and 6.20(b) except as set forth on such Schedules.

	
 
	
§6.21
	
Intentionally Omitted

.

	
 
	
§6.22
	
Property

.  Except as set forth in the property condition reports listed on Schedule 6.22, (i) all of the Mortgaged Properties, and all major building systems located thereon, are structurally sound, in good condition and working order and free from material defects, subject to ordinary wear and tear, (ii) all of the other Real Estate of the Borrower, the Guarantors and their respective Subsidiaries is structurally sound, in good condition and working order, subject to ordinary wear and tear, except where such defects have not had and could not reasonably be expected to have a Material Adverse Effect, (iii) the Real Estate, and the use and operation thereof, is in material compliance with all applicable federal and state law and governmental regulations and any local ordinances, orders or regulations, including without limitation, laws, regulations and ordinances relating to zoning, building codes, subdivision, fire protection, health, safety, handicapped access, historic preservation and protection, wetlands and tidelands (but excluding for purposes of this §6.22, Environmental Laws) except where a failure to so comply as to Real Estate other than Mortgaged Properties has not and could not reasonably be expected to have a Material Adverse Effect, (iv) all utilities necessary for the use and operation of the Mortgaged Properties are installed to the property lines of the Mortgaged Properties through dedicated public rights of way or through perpetual private easements approved by the Agent with respect to which, as applicable, the applicable Mortgage creates a valid and enforceable first lien and, except in the case of drainage facilities, are connected to the Building located thereon with valid permits and are adequate to service the Building in compliance with applicable law, (v) the streets abutting the Real Estate are dedicated and accepted public roads, to which the Real Estate in each case has direct access or are perpetual private ways (with direct access to public roads) to which the Real Estate have direct access approved by the Agent and with respect to which, as applicable, the applicable Mortgage creates a valid and enforceable first lien, (vi) there are no unpaid or outstanding real estate or other taxes or assessments on or against any of the Real Estate which are payable by the Borrower, any Guarantor or any of their respective Subsidiaries (except only real estate or other taxes or assessments, that are not yet delinquent or are being protested as permitted by this Agreement), (vii) each Real Estate asset is separately assessed for purposes of real estate tax assessment and payment, (viii) there are no pending, or to the knowledge of the Borrower, threatened or contemplated, eminent domain proceedings against any Real Estate except as disclosed to Agent pursuant to §7.7, (ix) none of the Real Estate is now damaged as a result of any fire, explosion, accident, flood or other casualty except as disclosed to Agent pursuant to §7.7, (x) none of the Borrower, the Guarantors or any of their respective Subsidiaries has received any outstanding notice from any insurer or its agent requiring performance of any work with respect to any of the Real Estate, or canceling or threatening to cancel any policy of 

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insurance, and each of the Real Estate Properties complies with the material requirements of all of the Borrower’s, Guarantors’ and their respective Subsidiaries’ insurance carriers, (xi) no person or entity has any right or option to acquire any Real Estate or any portion thereof or interest therein, (xii) neither the Borrower nor any Guarantor is a party to any Management Agreements for any of the Real Estate except as has been delivered to the Agent and with respect to which the provisions of §7.12 have been complied with, and (xiii) there are no defaults or material claims or any bases for defaults or material claims in respect of any Real Estate or its operation by any party to any Management Agreement.

	
 
	
§6.23
	
Brokers

.  None of REIT nor any of its Subsidiaries has engaged or otherwise dealt with any broker, finder or similar entity in connection with this Agreement or the Loans contemplated hereunder.

	
 
	
§6.24
	
Other Debt

.  As of the date of this Agreement, (a) none of the Borrower, any Guarantor nor any of their respective Subsidiaries is in default of (i) the payment of any Indebtedness, the performance of any related agreement, mortgage, deed of trust, security agreement, financing agreement, indenture or lease to which any of them is a party, and (b) no Indebtedness of the Borrower, any Guarantor or any of their respective Subsidiaries has been accelerated.  Neither the Borrower nor any Guarantor is a party to or bound by any agreement, instrument or indenture that may require the subordination in right or time or payment of any of the Obligations to any other indebtedness or obligation of the Borrower or any Guarantor.  Schedule 6.24 hereto sets forth all agreements, mortgages, deeds of trust, financing agreements or other material agreements binding upon the Borrower and each Guarantor or their respective properties and entered into by the Borrower and/or such Guarantor as of the date of this Agreement with respect to any Indebtedness of the Borrower or any Guarantor in an amount greater than $1,000,000.00, and the Borrower has provided the Agent with such true, correct and complete copies thereof.

	
 
	
§6.25
	
Solvency

.  After giving effect to the transactions contemplated by this Agreement and the other Loan Documents, including all Loans made or to be made hereunder, neither the Borrower nor any Guarantor is insolvent on a balance sheet basis such that the sum of such Person’s assets exceeds the sum of such Person’s liabilities, the Borrower and each Guarantor is able to pay its debts as they become due, and the Borrower and each Guarantor has sufficient capital to carry on its business.

	
 
	
§6.26
	
No Bankruptcy Filing

.  Neither the Borrower nor any Guarantor is contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency laws or for the liquidation of its assets or property, and the Borrower has no knowledge of any Person contemplating the filing of any such petition against it or any Guarantor.

	
 
	
§6.27
	
No Fraudulent Intent

.  Neither the execution and delivery of this Agreement or any of the other Loan Documents nor the performance of any actions required hereunder or thereunder is being undertaken by the Borrower, any Guarantor or any 

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of their respective Subsidiaries with or as a result of any actual intent by any of such Persons to hinder, delay or defraud any entity to which any of such Persons is now or will hereafter become indebted.

	
 
	
§6.28
	
Transaction in Best Interests of the Borrower and Guarantors; Consideration

.  The transaction evidenced by this Agreement and the other Loan Documents is in the best interests of the Borrower, each Guarantor and their respective Subsidiaries.  The Borrower and the Guarantors are engaged in common business enterprises related to those of the Borrower and each Guarantor will derive substantial direct and indirect benefit from the effectiveness and existence of this Agreement.  The direct and indirect benefits to inure to the Borrower, each Guarantor and their respective Subsidiaries pursuant to this Agreement and the other Loan Documents constitute substantially more than “reasonably equivalent value” (as such term is used in  Section 548 of the Bankruptcy Code) and “valuable consideration,” “fair value,” and “fair consideration” (as such terms are used in any applicable state fraudulent conveyance law), in exchange for the benefits to be provided by the Borrower, the Guarantors and their respective Subsidiaries pursuant to this Agreement and the other Loan Documents, and but for the willingness of each Guarantor to guaranty the Loan, the Borrower would be unable to obtain the financing contemplated hereunder which financing will enable the Borrower, each Guarantor and their respective Subsidiaries to have available financing to conduct and expand their business.

	
 
	
§6.29
	
Contribution Agreement

.  The Borrower and the Guarantors have executed and delivered the Contribution Agreement, and the Contribution Agreement constitutes the valid and legally binding obligations of such parties enforceable against them in accordance with the terms and provisions thereof, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and except to the extent that availability of the remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding therefor may be brought.

	
 
	
§6.30
	
Representations and Warranties of Guarantors

.  The Borrower has no knowledge that any of the representations or warranties of any Guarantor contained in any Loan Document to which such Guarantor is a party are untrue or inaccurate in any material respect.

	
 
	
§6.31
	
OFAC

.  None of the Borrower, nor any Guarantor, nor any of such Persons’ respective Subsidiaries, or any of such Persons’ respective directors, officers, or, to the knowledge of the Borrower, employees, agents, advisors or Affiliates of the Borrower or any Guarantor (a) is (or will be) a Person: (i) that is, or is owned or controlled by Persons that are:  (x) the subject or target of any Sanctions Laws and Regulations or (y) located, organized or resident in a country or territory that is, or whose government is, the subject of Sanctions Laws and Regulations, including, without limitation Crimea, Cuba, Iran, North Korea and Syria or (ii) with whom any Lender is restricted from doing business under OFAC (including, those Persons 

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named on OFAC’s Specially Designated and Blocked Persons list) or under any statute, executive order (including the September 24, 2001 Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action and (b) is not and shall not engage in any dealings or transactions or otherwise be associated with any such Person described in the foregoing clause (a) (any such Person, a “Designated Person”).  In addition, the Borrower hereby agrees to provide to the Lenders any additional information that a Lender reasonably deems necessary from time to time in order to ensure compliance with all applicable laws (including, without limitation, any Sanctions Laws and Regulations) concerning money laundering and similar activities.  Neither Borrower, nor any Guarantor, nor any of such Person’s respective Subsidiaries, nor any of such Persons’ respective directors, officers, or, to the knowledge of Borrower, employees, agents, advisors or Affiliates of Borrower or any Guarantor, has engaged in any activity or conduct which would violate any applicable anti-bribery, anti-corruption or anti-money laundering laws or regulations in any applicable jurisdiction, including without limitation, any Sanctions Laws and Regulations.

	
 
	
§6.32
	
Guaranty; Assignment of Interests

.  There is no Material Subsidiary that is not a party to the Guaranty, and there is no Equity Interest that is not an Unpledgeable Interest that has not been pledged to Agent pursuant to the Assignment of Interests.

	
§7.
	
AFFIRMATIVE COVENANTS

.

The Borrower covenants and agrees that, so long as any Loan, Note or Letter of Credit is outstanding or any Lender has any obligation to make any Loans or issue Letters of Credit:

	
 
	
§7.1
	
Punctual Payment

.  The Borrower will duly and punctually pay or cause to be paid the principal and interest on the Loans and all interest and fees provided for in this Agreement, all in accordance with the terms of this Agreement and the Notes, as well as all other sums owing pursuant to the Loan Documents.

	
 
	
§7.2
	
Maintenance of Office

.  The Borrower and each Guarantor will maintain their respective chief executive office at 60 Hempstead Avenue, Suite 718, West Hempstead, New York 11552, or at such other place in the United States of America as the Borrower or any Guarantor shall designate upon thirty (30) days prior written notice to the Agent and the Lenders, where notices, presentations and demands to or upon the Borrower or such Guarantor in respect of the Loan Documents may be given or made.

	
 
	
§7.3
	
Records and Accounts

.  The Borrower and each Guarantor will (a) keep, and cause each of their respective Subsidiaries to keep true and accurate records and books of account in which full, true and correct entries will be made in accordance with GAAP and (b) maintain adequate accounts and reserves for all taxes (including income taxes), depreciation and amortization of its properties and the properties of their respective Subsidiaries, contingencies and other reserves.  Neither the Borrower, any Guarantor nor any of their respective Subsidiaries shall, without the 

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prior written consent of the Agent, (x) make any material change to the accounting policies/principles used by such Person in preparing the financial statements and other information described in §6.4 or §7.4, or (y) change its fiscal year.  The Agent and the Lenders acknowledge that REIT's fiscal year is a calendar year.  The REIT’s interest in the Borrower shall always be such that the Borrower and its Subsidiaries shall be consolidated with the REIT in accordance with GAAP.

	
 
	
§7.4
	
Financial Statements, Certificates and Information

.  The Borrower will deliver or cause to be delivered to the Agent, in form and substance satisfactory to the Agent, with sufficient copies for each of the Lenders:

(a)within ten (10) days of the filing of REIT's Form 10-K with the SEC, if applicable, but in any event not later than ninety (90) days after the end of each calendar year, the audited consolidated balance sheet of REIT and its Subsidiaries at the end of such year, and the related audited consolidated statements of income, shareholders’ equity, changes in capital and cash flows for such year, setting forth in comparative form the figures for the previous fiscal year and all such statements to be in reasonable detail, prepared in accordance with GAAP, together with a certification by the chief financial officer, chief executive officer, treasurer or chief accounting officer of the REIT, that the information contained in such financial statements fairly presents the financial position of REIT and its Subsidiaries, and accompanied by an auditor’s report prepared without qualification as to the scope of the audit by an independent nationally recognized accounting firm reasonably approved by the Agent and who shall have authorized REIT to deliver such financial statements and certifications thereof to the Agent and the Lenders;

(b)within ten (10) days of the filing of REIT's Form 10-Q with the SEC, if applicable, but in any event not later than forty-five (45) days after the end of each of the first three (3) calendar quarters of each year, copies of the unaudited consolidated balance sheet of REIT and its Subsidiaries, at the end of such quarter, and the related unaudited consolidated statements of income, unaudited consolidated balance sheet and cash flows for the portion of REIT's fiscal year then elapsed, all in reasonable detail and prepared in accordance with GAAP, together with a certification by the chief financial officer, chief executive officer, treasurer or chief accounting officer of REIT that the information contained in such financial statements fairly presents the financial position of REIT and its Subsidiaries on the date thereof (subject to year-end adjustments);

(c)simultaneously with the delivery of the financial statements referred to in §§7.4(a) and 7.4(b), (i) a statement (a “Compliance Certificate”) certified by the chief financial officer, chief executive officer, treasurer or chief accounting officer of REIT in the form of Exhibit G hereto (or in such other form as the Agent may approve from time to time) setting forth in reasonable detail computations evidencing compliance or non-compliance (as the case may be) with the covenants contained in §9 and the other covenants described in such certificate and (if applicable) setting forth reconciliations to reflect changes in GAAP since the Balance Sheet Date, (ii) a statement of Funds from Operations for the relevant period, and (iii) a projection for the current and next three (3) succeeding calendar quarters of compliance with the covenants described in the Compliance Certificate.  All income, expense and value associated with Real Estate or other Investments acquired or disposed of during any quarter will be adjusted, where applicable;

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(d)simultaneously with the delivery of the financial statements referred to in §§7.4(a) and 7.4(b), (i) a Rent Roll for each of the Real Estate in form satisfactory to the Agent as of the end of each calendar quarter (including the fourth calendar quarter in each year), and (ii) an operating statement for each of the Mortgaged Properties for each such calendar quarter and year to date and a consolidated operating statement for the Real Estate for each such calendar quarter and year to date (such statements and reports to be in form reasonably satisfactory to the Agent);

(e)simultaneously with the delivery of the financial statements referred to in §§7.4(a) and 7.4(b) above, a statement (i) listing the Real Estate owned by REIT and its Subsidiaries (or in which REIT or any of its Subsidiaries owns an interest) and stating the location thereof, the date acquired and the acquisition cost, the Net Operating Income, square footage and occupancy, and whether such Real Estate constitutes a Land Asset or a Development Property, and (ii) listing the Indebtedness of REIT and its Subsidiaries (excluding Indebtedness of the type described in §§8.1(a), 8.1(c), 8.1(d) and 8.1(f)), which statement shall include, without limitation, a statement of the original principal amount of such Indebtedness and the current amount outstanding, the holder thereof, the maturity date and any extension options, the interest rate, the collateral provided for such Indebtedness and whether such Indebtedness is Secured Indebtedness, Recourse Indebtedness or Non-Recourse Indebtedness;

(f)contemporaneously with the filing or mailing thereof, copies of all material of a financial nature, reports, proxy statements and all other information sent to the owners of the Borrower or REIT;

(g)promptly following the Agent’s request, after they are filed with the Internal Revenue Service, copies of all annual federal income tax returns and amendments thereto of the Borrower and REIT;

(h)promptly upon the filing thereof, copies of all registration statements (other than the exhibits thereto and any registration statements on Form S-8 or its equivalent) and annual, quarterly, monthly, special (8-K) or other reports or information that REIT or any of its Subsidiaries shall file with the SEC;

(i)notice of any audits pending or threatened in writing with respect to any tax returns filed by REIT or any of its Subsidiaries promptly following notice of such audit;

(j)evidence reasonably satisfactory to the Agent of the timely payment of all real estate taxes for the Real Estate;

(k)promptly following the occurrence thereof, written notice to the Agent of any new or additional Indebtedness or Liens on any Real Estate directly or indirectly owned by Borrower;

(l)within five (5) Business Days of receipt, copies of any written claim made with respect to any Non-Recourse Exclusion; and

(m)from time to time, such other financial data and information in the possession of REIT or its Subsidiaries (including without limitation auditors’ management letters, status of litigation or investigations against REIT or any of its Subsidiaries and any settlement 

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discussions relating thereto, property inspection and environmental reports and information as to zoning and other legal and regulatory changes affecting REIT or any of its Subsidiaries) as the Agent may reasonably request.

The Borrower shall cooperate with the Agent in connection with the publication of certain materials and/or information provided by or on behalf of the Borrower.  Documents required to be delivered pursuant to the Loan Documents shall be delivered by or on behalf of the Borrower to the Agent and the Lenders (collectively, “Information Materials”) pursuant to this Section.  Any material to be delivered pursuant to this §7.4 may be delivered electronically directly to Agent and the Lenders provided that such material is in a format reasonably acceptable to Agent, and such material shall be deemed to have been delivered to Agent and the Lenders upon Agent’s receipt thereof.  Upon the request of Agent, the Borrower shall deliver paper copies thereof to Agent and the Lenders.  Notwithstanding anything to the contrary in this §7.4, the Borrower shall not be required to deliver any 10-K or 10-Q of REIT to Agent if such 10-K or 10‐Q is publicly available on the SEC’s EDGAR Website  The Borrower and the Guarantors authorize Agent and Arranger to disseminate any such materials, including without limitation the Information Materials through the use of Intralinks, SyndTrak or any other electronic information dissemination system (an “Electronic System”).  Any such Electronic System is provided “as is” and “as available.”  The Agent and the Arranger do not warrant the adequacy of any Electronic System and expressly disclaim liability for errors or omissions in any notice, demand, communication, information or other material provided by or on behalf of Borrower that is distributed over or by any such Electronic System (“Communications”).  No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by Agent or the Arranger in connection with the Communications or the Electronic System.  In no event shall the Agent, the Arranger or any of their directors, officers, employees, agents or attorneys have any liability to the Borrower or the Guarantors, any Lender or any other Person for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower’s, any Guarantors’, the Agent’s or any Arranger’s transmission of Communications through the Electronic System, and the Borrower and the Guarantors release Agent, the Arranger and the Lenders from any liability in connection therewith.  The Borrower acknowledges that certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with respect to the Borrower, its Subsidiaries or its Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market related activities with respect to such Persons’ securities.  All of the Information Materials delivered by the Borrower hereunder shall be deemed to be private information and shall not be shared with such Public Lenders, except for any Information Materials that are (a) filed with a Governmental Authority and are available to the public, or (b) clearly and conspicuously identified by the Borrower as “PUBLIC”, which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof.  By marking Information Materials “PUBLIC,” the Borrower shall be deemed to have authorized the Agent, the Lenders and the Arrangers to treat such Information Materials as not containing any material non-public information with respect to the Borrower, its Subsidiaries, its Affiliates or their respective securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Information Materials constitute confidential information, they shall be treated as provided in §18.7).  The Borrower agrees that (i) all Information Materials marked “PUBLIC” by the Borrower are 

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permitted to be made available through a portion of any electronic dissemination system designated “Public Investor” or a similar designation, and (ii) the Agent and the Arrangers shall be entitled to treat any Information Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of any electronic dissemination system not designated “Public Investor” or a similar designation.

	
 
	
§7.5
	
Notices

.

(a)Defaults.  The Borrower will promptly upon becoming aware of same notify the Agent in writing of the occurrence of any Default or Event of Default, which notice shall describe such occurrence with reasonable specificity and shall state that such notice is a “notice of default”.  If any Person shall give any notice of the existence of a claimed default or take any other action in respect of a claimed default (whether or not constituting an Event of Default) under this Agreement or under any note, evidence of indebtedness, indenture or other obligation to which or with respect to which the Borrower, any Guarantor or any of their respective Subsidiaries is a party or obligor, whether as principal or surety, and such default would permit the holder of such note or obligation or other evidence of indebtedness to accelerate the maturity thereof, which acceleration would either cause a Default or have a Material Adverse Effect, the Borrower shall forthwith give written notice thereof to the Agent and each of the Lenders, describing the notice or action and the nature of the claimed default.

(b)Environmental Events.  The Borrower will give notice to the Agent within five (5) Business Days of becoming aware of (i) any potential or known Release, or threat of Release, of any Hazardous Substances in violation of any applicable Environmental Law; (ii) any violation of any Environmental Law that the Borrower, any Guarantor or any of their respective Subsidiaries reports in writing or is reportable by such Person in writing (or for which any written report supplemental to any oral report is made) to any federal, state or local environmental agency or (iii) any inquiry, proceeding, investigation, or other action, including a notice from any agency of potential environmental liability, of any federal, state or local environmental agency or board, that in any case involves (A) any Mortgaged Property, (B) any other Real Estate and could reasonably be expected to have a Material Adverse Effect or (C) the Agent’s liens or security title on the Collateral pursuant to the Security Documents.

(c)Notification of Claims Against Collateral.  The Borrower will give notice to the Agent in writing within five (5) Business Days of becoming aware of any material setoff, claims (including, with respect to any Mortgaged Property, environmental claims), withholdings or other defenses to which any of the Collateral, or the rights of the Agent or the Lenders with respect to the Collateral, are subject.

(d)Notice of Litigation and Judgments.  The Borrower will give notice to the Agent in writing within five (5) Business Days of becoming aware of any litigation or proceedings threatened in writing or any pending litigation and proceedings affecting the Borrower, any Guarantor or any of their respective Subsidiaries or to which the Borrower, any Guarantor or any of their respective Subsidiaries is or is to become a party involving an uninsured claim against the Borrower, any Guarantor or any of their respective Subsidiaries that could either reasonably be expected to cause a Default or could reasonably be expected to have a Material Adverse Effect and stating the nature and status of such litigation or proceedings.  The Borrower will give notice 

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to the Agent, in writing, in form and detail reasonably satisfactory to the Agent and each of the Lenders, within ten (10) days of any judgment not covered by insurance, whether final or otherwise, against the REIT or any of its Subsidiaries in an amount in excess of $2,500,000.00.

(e)Notice of Defaults Under Organizational Agreements.  The Borrower will, within five (5) Business Days of notice or receipt, provide to the Agent copies of any and all written notices of default under any partnership agreement, operating agreement or other organizational agreement to which Borrower or any of its Subsidiaries is a party or of any failure by the Borrower or any of its Subsidiaries to perform any material obligation under any such partnership agreement, operating agreement or other organizational agreement.

(f)ERISA.  The Borrower will give notice to the Agent within five (5) Business Days after REIT or any ERISA Affiliate (i) gives or is required to give notice to the PBGC of any “reportable event” (as defined in Section 4043 of ERISA) with respect to any Guaranteed Pension Plan, Multiemployer Plan or Employee Benefit Plan, or knows that the plan administrator of any such plan has given or is required to give notice of any such reportable event; (ii) gives a copy of any notice of complete or partial withdrawal liability under Title IV of ERISA; or (iii) receives any notice from the PBGC under Title IV or ERISA of an intent to terminate or appoint a trustee to administer any such plan.

(g)Intentionally Omitted.

(h)Notification of Lenders.  Within five (5) Business Days after receiving any notice under this §7.5, the Agent will forward a copy thereof to each of the Lenders, together with copies of any certificates or other written information that accompanied such notice.

	
 
	
§7.6
	
Existence; Maintenance of Properties

.

(a)Except as permitted under §§8.4 and 8.8, the Borrower and each Guarantor will (i) preserve and keep in full force and effect their legal existence in the jurisdiction of its incorporation or formation, and shall not consummate, nor shall any of its partners, members or managers, take any action in furtherance of or consummate, a Division, and (ii) will cause each of their respective Subsidiaries that are not Guarantors to preserve and keep in full force and effect their legal existence in the jurisdiction of its incorporation or formation except where such failure has not had and could not reasonably be expected to have a Material Adverse Effect.  The Borrower and each Guarantor will preserve and keep in full force all of their rights and franchises and those of their respective Subsidiaries, the preservation of which is necessary to the conduct of their business (except with respect to Subsidiaries of the Borrower that are not Guarantors, where such failure has not had and could not reasonably be expected to have a Material Adverse Effect).  REIT shall at all times comply with all requirements and applicable laws and regulations necessary to maintain REIT Status and shall continue to receive REIT Status.  The Borrower shall continue to own directly or indirectly one hundred percent (100%) of the Subsidiary Guarantors.

(b)The Borrower and each Guarantor (i) will cause all of its properties and those of its Subsidiaries used or useful in the conduct of its business or the business of its Subsidiaries to be maintained and kept in good condition, repair and working order (ordinary wear 

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and tear excepted) and supplied with all necessary equipment, and (ii) will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof.

	
 
	
§7.7
	
Insurance; Condemnation

.

(a)The Borrower and each Subsidiary Guarantor will, at its expense, procure and maintain for the benefit of the Borrower, each such Subsidiary Guarantor and the Agent, insurance policies issued by such insurance companies, in such amounts, in such form and substance, and with such coverages, endorsements, deductibles and expiration dates as are acceptable to the Agent, providing the following types of insurance covering each Mortgaged Property:

(i)“Cause of Loss-Special Form” property insurance (including broad form flood, broad form earthquake, coverage from loss or damage arising from acts of terrorism, and comprehensive boiler and machinery coverages) on each Building and the contents therein of the Borrower and its Subsidiaries in an amount not less than one hundred percent (100%) of the full replacement cost of each Building and the contents therein of the Borrower and its Subsidiaries or such other amount as the Agent may approve, with deductibles not to exceed $100,000.00 for any one occurrence, with a replacement cost coverage endorsement, an agreed amount endorsement, and, if requested by the Agent, a contingent liability from operation of building laws endorsement in such amounts as the Agent may require.  Full replacement cost as used herein means the cost of replacing the Building (exclusive of the cost of excavations, foundations and footings below the lowest basement floor) and the contents therein of the Borrower and its Subsidiaries without deduction for physical depreciation thereof;

(ii)During the course of construction or repair of any Building, the insurance required by clause (i) above shall be written on a builders risk, completed value, non-reporting form, meeting all of the terms required by clause (i) above, covering the total value of work performed, materials, equipment, machinery and supplies furnished, existing structures, and temporary structures being erected on or near the Mortgaged Property, including coverage against collapse and damage during transit or while being stored off-site, and containing a soft costs (including loss of rents) coverage endorsement and a permission to occupy endorsement;

(iii)Flood insurance if at any time any Building is located in any federally designated “special hazard area” (including any area having special flood, mudslide and/or flood-related erosion hazards, and shown on a Flood Hazard Boundary Map or a Flood Insurance Rate Map published by the Federal Emergency Management Agency as Zone A, AO, Al-30, AE, A99, AH, VO, V1-30, VE, V, M or E) and the broad form flood coverage required by clause (i) above is not available, in an amount equal to the full replacement cost or the maximum amount then available under the National Flood Insurance Program;

(iv)Rent loss insurance in an amount sufficient to recover at least the total estimated gross receipts from all sources of income, including without limitation, rental income, for the Mortgaged Property for a twelve (12) month period;

(v)Commercial general liability insurance against claims for personal injury (to include, without limitation, bodily injury and personal and advertising injury) and 

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property damage liability, all on an occurrence basis, if commercially available, with such coverages as the Agent may reasonably request (including, without limitation, contractual liability coverage, completed operations coverage for a period of two (2) years following completion of construction of any improvements on the Mortgaged Property, and coverages equivalent to an ISO broad form endorsement), with a general aggregate limit of not less than $2,000,000.00, a completed operations aggregate limit of not less than $2,000,000.00, and a combined single “per occurrence” limit of not less than $1,000,000.00 for bodily injury and property damage and medical payments;

(vi)During the course of construction or repair of any improvements on the Mortgaged Property, the general contractor selected to oversee such improvements shall provide commercial general liability insurance (including completed operations coverage) naming Borrower as an additional insured, or in lieu thereof, may provide for such coverage by way of an owner’s contingent or protective liability insurance covering claims not covered by or under the terms or provisions of the insurance required by clause (v) above;

(vii)Employer’s liability insurance with respect to the Borrower’s employees (or if the Borrower have no employees, with respect to the employees of the managers under the Management Agreements);

(viii)Umbrella liability insurance with limits of not less than $25,000,000.00 to be in excess of the limits of the insurance required by clauses (v), (vi) and (vii) above, with coverage at least as broad as the primary coverages of the insurance required by clauses (v), (vi) and (vii) above, with any excess liability insurance to be at least as broad as the coverages of the lead umbrella policy.  All such policies shall be endorsed to provide defense coverage obligations;

(ix)Workers’ compensation insurance for all employees of the Borrower or its Subsidiaries engaged on or with respect to the Mortgaged Property with limits as required by applicable law (or if Borrower have no employees, for all employees of the managers under the Management Agreements); and

(x)Such other insurance in such form and in such amounts as may from time to time be reasonably required by the Agent against other insurable hazards and casualties which at the time are commonly insured against in the case of properties of similar character and location to the Mortgaged Property.

The Borrower shall pay all premiums on insurance policies.  The insurance policies with respect to all Mortgaged Properties provided for in clauses (v), (vi) and (viii) above shall name the Agent and each Lender as an additional insured and shall contain a cross liability/severability endorsement.  The insurance policies provided for in clauses (i), (ii), (iii), (iv) and (vi) above shall name the Agent as mortgagee and loss payee, shall be first payable in case of loss to the Agent, and shall contain mortgage clauses and lender’s loss payable endorsements in form and substance acceptable to the Agent.  The Borrower shall deliver certificates of insurance evidencing all such policies to the Agent, and the Borrower shall promptly furnish to the Agent all renewal notices and evidence that all premiums or portions thereof then due and payable have been paid.  Borrower shall provide to Agent a duplicate original or certified copy of the insurance 

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policies required hereunder promptly after the original policy is received by Borrower.  Not less than ten (10) days prior to the expiration date of the policies, as the same may be reduced by Agent, the Borrower shall deliver to the Agent evidence of continued coverage, as may be satisfactory to the Agent, and within five (5) Business Days after the renewal date of such policies, the Borrower shall deliver a certificate of insurance to Agent, in form and substance satisfactory to the Agent.

(b)All policies of insurance required by this Agreement shall contain clauses or endorsements to the effect that (i) no act or omission of the Borrower or any Subsidiary or anyone acting for the Borrower or any Subsidiary (including, without limitation, any representations made in the procurement of such insurance), which might otherwise result in a forfeiture of such insurance or any part thereof, no occupancy or use of the Real Estate for purposes more hazardous than permitted by the terms of the policy, and no foreclosure or any other change in title to the Real Estate or any part thereof, shall affect the validity or enforceability of such insurance insofar as the Agent is concerned, (ii) the insurer waives any right of set off, counterclaim, subrogation, or any deduction in respect of any liability of the Borrower or any Subsidiary and the Agent, (iii) such insurance is primary and without right of contribution from any other insurance which may be available, (iv) such policies shall not be modified so as to reduce or in any way negatively affect insurance coverage on any Mortgaged  Property, canceled or terminated prior to the scheduled expiration date thereof without the insurer thereunder giving at least thirty (30) days prior written notice to the Agent by certified or registered mail; provided, however, that only ten (10) days prior written notice to Agent shall be required if such cancellation or termination is due to non-payment of any insurance premium, and (v) that the Agent or the Lenders shall not be liable for any premiums thereon or subject to any assessments thereunder, and shall in all events be in amounts sufficient to avoid any coinsurance liability.

(c)The insurance required by this Agreement may be effected through a blanket policy or policies covering additional locations and property of the Borrower and other Persons not included in the Mortgaged Properties, provided that such blanket policy or policies comply with all of the terms and provisions of this §7.7, including, without limitation, the Agent’s determination based on a review of the schedule of locations and values that the amount of such coverage is sufficient in light of the other risks and properties insured under the blanket policy.

(d)All policies of insurance required by this Agreement shall be issued by companies licensed to do business in the State where the policy is issued and also in the States where the Real Estate is located and shall be issued by companies having a rating in Best’s Key Rating Guide of at least “A” and a financial size category of at least “X”.

(e)Neither the Borrower nor any Subsidiary shall carry separate insurance, concurrent in kind or form or contributing in the event of loss, with any insurance required under this Agreement unless such insurance complies with the terms and provisions of this §7.7.

(f)In the event of any loss or damage to or Taking of any Mortgaged Property, the Borrower or the applicable Guarantor shall give prompt written notice to the insurance carrier and the Agent.  Each of the Borrower and the Guarantors hereby irrevocably authorizes and empowers the Agent, at the Agent’s option and in the Agent’s sole discretion or at the request of the Required Lenders in their sole discretion, as its attorney in fact, to make proof of such loss, to adjust and compromise any claim under insurance policies or as a result of a Taking, to appear in 

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and prosecute any action arising from such insurance policies or as a result of a Taking, to collect and receive Insurance Proceeds and Condemnation Proceeds, and to deduct therefrom the Agent’s reasonable expenses incurred in the collection of such Insurance Proceeds and Condemnation Proceeds; provided, however, that so long as no Default or Event of Default has occurred and is continuing and so long as the Borrower or any Guarantor shall in good faith diligently pursue such claim, the Borrower or such Guarantor may make proof of loss and appear in any proceedings or negotiations with respect to the adjustment of such claim, except that the Borrower or such Guarantor may not settle, adjust or compromise any such claim without the prior written consent of the Agent, which consent shall not be unreasonably withheld or delayed; provided, further, that the Borrower or such Guarantor may make proof of loss and adjust and compromise any claim under casualty insurance policies which is in an amount less than $1,000,000.00 so long as no Default or Event of Default has occurred and is continuing and so long as the Borrower or such Guarantor shall in good faith diligently pursue such claim.  The Borrower and each Guarantor further authorize the Agent, at the Agent’s option, to (i) apply the balance of such Insurance Proceeds and Condemnation Proceeds to the payment of the Obligations whether or not then due, or (ii) if the Agent shall require the reconstruction or repair of the Mortgaged Property, to hold the balance of such proceeds as trustee to be used to pay taxes, charges, sewer use fees, water rates and assessments which may be imposed on the Mortgaged Property and the Obligations as they become due during the course of reconstruction or repair of the Mortgaged Property and to reimburse the Borrower or such Guarantor, in accordance with such terms and conditions as the Agent may prescribe, for, or to pay directly, the costs of reconstruction or repair of the Mortgaged Property, and upon completion of such reconstruction or repair to pay any excess Insurance Proceeds to the Borrower, provided that (i) upon completion of such reconstruction or repair, such Mortgaged Property is in compliance with all applicable state, federal and local laws, ordinances and regulations, including, without limitation, all building and zoning laws, ordinances and regulations and (ii) no Defaults or Events of Default exist or are continuing under this Agreement on the date of such payment to the Borrower.

(g)Notwithstanding the foregoing or anything to the contrary contained in the Mortgages, the Agent shall make net Insurance Proceeds and Condemnation Proceeds available to the Borrower or such Guarantor to reconstruct and repair the Mortgaged Property, in accordance with such terms and conditions as the Agent may prescribe in the Agent’s discretion for the disbursement of the proceeds, provided that (i) the cost of such reconstruction or repair is not estimated by the Agent to exceed twenty-five percent (25%) of the replacement cost of the damaged Building (as reasonably estimated by the Agent), (ii) no Default or Event of Default shall have occurred and be continuing, (iii) the Borrower or such Guarantor shall have provided to the Agent additional cash security in an amount equal to the amount reasonably estimated by the Agent to be the amount in excess of such proceeds which will be required to complete such repair or restoration, (iv) the Agent shall have approved the plans and specifications, construction budget, construction contracts, and construction schedule for such repair or restoration and reasonably determined that the repaired or restored Mortgaged Property will provide the Agent with adequate security for the Obligations (provided that the Agent shall not disapprove such plans and specifications if the Building is to be restored to substantially its condition immediately prior to such damage), (v) the Borrower or such Guarantor shall have delivered to the Agent written agreements binding upon not less than eighty percent (80%) of the tenants or other parties having present or future rights to possession of any portion of the affected Mortgaged Property or having any right to require repair, restoration or completion of the Mortgaged Property or any portion 

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thereof (determined by reference to those tenants that in the aggregate occupy or have rights to occupy not less than eighty percent (80%) of the net rentable area of the Building so damaged), agreeing upon a date for delivery of possession of the Mortgaged Property or their respective portions thereof, to permit time which is sufficient in the judgment of the Agent for such repair or restoration and approving the plans and specifications for such repair or restoration, or other evidence satisfactory to the Agent that none of such tenants or other parties may terminate their Leases as a result of such casualty or as a result of having a right to approve the plans and specifications for such repair or restoration, (vi) the Agent shall reasonably determine that such repair or reconstruction can be completed prior to the Maturity Date, (vii) the Agent shall receive evidence reasonably satisfactory to it that any such restoration, repair or rebuilding complies in all respects with any and all applicable state, federal and local laws, ordinances and regulations, including without limitation, zoning laws, ordinances and regulations, and that all required permits, licenses and approvals relative thereto have been or will be issued in a manner so as not to materially impede the progress of restoration, (viii) the Agent shall receive evidence reasonably satisfactory to it that the insurer under such policies of fire or other casualty insurance does not assert any defense to payment under such policies against the Borrower, any Guarantor or the Agent, and (ix) with respect to any Taking, (a) the value of the land taken under such condemnation is less than $500,000.00; (b) less than five percent (5%) of the land is taken; (c) the land that is taken is located along the perimeter or periphery of the land; (d) access to the Mortgaged Property is not affected in any way by the Taking; (e) no portion of the improvements are taken.  Any excess Insurance Proceeds shall be paid to the Borrower, or if a Default or Event of Default has occurred and is continuing, such proceeds shall be applied to the payment of the Obligations, unless in either case by the terms of the applicable insurance policy the excess proceeds are required to be returned to such insurer.  Any excess Condemnation Proceeds shall be applied to the payment of the Obligations.  In no event shall the provisions of this Section be construed to extend the Maturity Date or to limit in any way any right or remedy of the Agent upon the occurrence of an Event of Default hereunder.  If the Mortgaged Property is sold or the Mortgaged Property is acquired by the Agent, all right, title and interest of the Borrower and any Guarantor in and to any insurance policies to the extent that they relate to Mortgaged Properties and unearned premiums thereon and in and to the proceeds thereof resulting from loss or damage to the Mortgaged Property prior to the sale or acquisition shall pass to the Agent or any other successor in interest to the Borrower or purchaser of the Mortgaged Property.

(h)The Borrower, the Guarantors and their respective Subsidiaries (as applicable) will, at their expense, procure and maintain insurance covering the Borrower, the Guarantors and their respective Subsidiaries (as applicable) and the Real Estate other than the Mortgaged Properties in such amounts and against such risks and casualties as are customary for properties of similar character and location, due regard being given to the type of improvements thereon, their construction, location, use and occupancy.

(i)The Borrower and the Guarantors will provide to the Agent for the benefit of the Lenders Title Policies for all of the Mortgaged Properties.

	
 
	
§7.8
	
Taxes; Liens

.  The Borrower and the Guarantors will, and will cause their respective Subsidiaries to, duly pay and discharge, or cause to be paid and discharged, before the same shall become delinquent, all taxes, assessments and other governmental charges imposed upon them or upon the Mortgaged Properties or the other Real 

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Estate, sales and activities, or any part thereof, or upon the income or profits therefrom as well as all claims for labor, materials or supplies that if unpaid might by law become a lien or charge upon any of its property or other Liens affecting any of the Collateral or other property of the Borrower, the Guarantors or their respective Subsidiaries and all non-governmental assessments, levies, maintenance and other charges, whether resulting from covenants, conditions and restrictions or otherwise, water and sewer rents and charges assessments on any water stock, utility charges and assessments and owner association dues, fees and levies, provided that any such tax, assessment, charge or levy or claim need not be paid if the validity or amount thereof shall currently be contested in good faith by appropriate proceedings which shall suspend the collection thereof with respect to such property and the Borrower or applicable Guarantor shall not be subject to any fine, suspension or loss of privileges or rights by reason of such proceeding, neither such property nor any portion thereof or interest therein would be in any danger of sale, forfeiture, loss or suspension of operation  by reason of such proceeding and the Borrower, such Guarantor or any such Subsidiary shall have set aside on its books adequate reserves in accordance with GAAP (or if such aggregate amount so contested relates to a Mortgaged Property and equals or exceeds $100,000, then Borrower shall have deposited with Agent as additional Collateral adequate reserves as reasonably determined by Agent); and provided, further, that forthwith upon the commencement of proceedings to foreclose any lien that may have attached as security therefor, the Borrower, such Guarantor or any such Subsidiary either (i) will provide a bond issued by a surety reasonably acceptable to the Agent and sufficient to stay all such proceedings or (ii) if no such bond is provided, will pay each such tax, assessment, charge or levy.  Borrower shall deliver to the Agent evidence of payment of taxes, other assessments, levies and charges described in this §7.8 with respect to the Mortgaged Properties not later than ten (10) Business Days prior to the date upon which such amounts are due and payable unless the same are being contested in accordance with the terms hereof and the other Loan Documents.

	
 
	
§7.9
	
Inspection of Properties and Books

.  The Borrower and the Guarantors will, and will cause their respective Subsidiaries to, permit the Agent and the Lenders, at the Lender’s expense (except during the continuance of an Event of Default, in which case at the Borrower’s expense), and upon reasonable prior notice, to visit and inspect any of the properties of the Borrower, each Guarantor or any of their respective Subsidiaries (subject to the rights of tenants under their Leases), to examine the books of account of the Borrower, any Guarantor and their respective Subsidiaries (and to make copies thereof and extracts therefrom) and to discuss the affairs, finances and accounts of the Borrower, any Guarantor and their respective Subsidiaries with, and to be advised as to the same by, their respective officers, partners or members, all at such reasonable times and intervals as the Agent or any Lender may reasonably request, provided that so long as no Default or Event of Default shall have occurred and be continuing, the Borrower shall not be required to pay for such visits and inspections more often than once in any twelve (12) month period.  The Lenders shall use good faith efforts to coordinate such visits and 

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inspections so as to minimize the interference with and disruption to the normal business operations of such Persons.

	
 
	
§7.10
	
Compliance with Laws, Contracts, Licenses, and Permits

.  The Borrower and the Guarantors will, and will cause each of their respective Subsidiaries to, comply in all material respects with (a) all applicable laws and regulations now or hereafter in effect wherever its business is conducted, including all Environmental Laws, (b) the provisions of its corporate charter, partnership agreement, limited liability company agreement or declaration of trust, as the case may be, and other charter documents and bylaws, (c) all agreements and instruments to which it is a party or by which it or any of its properties may be bound, (d) all applicable decrees, orders, and judgments, and (e) all licenses and permits required by applicable laws and regulations for the conduct of its business or the ownership, use or operation of its properties.  If any authorization, consent, approval, permit or license from any officer, agency or instrumentality of any government shall become necessary or required in order that the Borrower, any Guarantor or their respective Subsidiaries may fulfill any of its obligations hereunder, the Borrower, such Guarantor or such Subsidiary will promptly take or cause to be taken all steps necessary to obtain such authorization, consent, approval, permit or license and furnish the Agent and the Lenders with evidence thereof.  The Borrower shall develop and implement such programs, policies and procedures as are necessary to comply with the Patriot Act and shall promptly advise the Agent in writing in the event that the Borrower shall determine that any investors in the Borrower are in violation of such act.

	
 
	
§7.11
	
Further Assurances

.  The Borrower and each Guarantor will and will cause each of their respective Subsidiaries to, cooperate with the Agent and the Lenders and execute such further instruments and documents as the Lenders or the Agent shall reasonably request to carry out to their satisfaction the transactions contemplated by this Agreement and the other Loan Documents.

	
 
	
§7.12
	
Management

.  The Borrower shall not and shall not permit any Subsidiary Guarantor to enter into any Management Agreement for any Mortgaged Property without the prior written consent of the Agent (which shall not be unreasonably withheld), and after such approval, no such Management Agreement shall be modified in any material respect or terminated without the Agent’s prior written approval, such approval not to be unreasonably withheld.  The Agent may condition any approval of a manager engaged by the Borrower or a Subsidiary Guarantor or a Management Agreement with respect to a Mortgaged Property upon the execution and delivery to the Agent of a Subordination of Management Agreement.  The Borrower shall not and shall not permit any Subsidiary Guarantor or any other Subsidiary to increase any management fee payable under a Management Agreement after the date the applicable Real Estate becomes a Mortgaged Property without the prior written consent of the Agent.

	
 
	
§7.13
	
Leases of the Property

.  Neither the Borrower nor any Subsidiary Guarantor will without the prior written consent of Agent (a) lease all or any portion of the Real Estate other than as an Industrial Property in the ordinary course of business 

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consistent with prudent leasing and management standards, or (b) amend, waive, terminate, cancel, or accept the surrender of, any lease or other occupancy agreement at any Mortgaged Property except in the ordinary course of leasing and managing an Industrial Property consistent with prudent leasing and management standards.

	
 
	
§7.14
	
Business Operations

.  REIT and its Subsidiaries shall operate their respective businesses in substantially the same manner and in substantially the same fields and lines of business as such business is now conducted and such other lines of business that are reasonably related or incidental thereto and in compliance with the terms and conditions of this Agreement and the Loan Documents.  Neither REIT nor the Borrower will, or permit any of their respective Subsidiaries to, directly or indirectly, engage in any line of business other than the acquisition, ownership, operation and development of Industrial Properties.

	
 
	
§7.15
	
Registered Service Mark

.  Without prior written notice to the Agent, except with respect to the trademarks, tradenames, service marks or logos listed on Schedule 6.6 hereto or in any Mortgage with respect to any Mortgaged Property, none of the Mortgaged Properties shall be owned or operated by the Borrower or any Guarantor under any trademark, tradename, service mark or logo.  In the event any of the Mortgaged Properties shall be owned or operated under any tradename, trademark, service mark or logo, not listed on Schedule 6.6 hereto or in any Mortgage with respect to any Mortgaged Property, the Borrower or the applicable Guarantor shall enter into such agreements with the Agent in form and substance reasonably satisfactory to the Agent, as the Agent may reasonably require to grant the Agent a perfected first priority security interest therein and to grant to the Agent or any successful bidder at a foreclosure sale of such Mortgaged Property the right and/or license to continue operating such Mortgaged Property under such tradename, trademark, service mark or logo as determined by the Agent.

	
 
	
§7.16
	
Ownership of Real Estate

.  Without the prior written consent of the Agent, all Real Estate and all interests (whether direct or indirect) of REIT, General Partner or the Borrower in any Real Estate assets or other assets now owned or leased or acquired or leased after the date hereof shall be owned or leased directly by the Borrower or a Wholly-Owned Subsidiary of the Borrower; provided, however that the Borrower shall be permitted to own or lease interests in Real Estate through non‐Wholly-Owned Subsidiaries and Unconsolidated Affiliates of the Borrower as permitted by §8.3(l).

	
 
	
§7.17
	
Distributions of Income to the Borrower

.  The Borrower shall cause all of its Subsidiaries (subject to the terms of any loan documents under which such Subsidiary is the borrower) to promptly distribute to the Borrower (but not less frequently than once each calendar quarter, unless otherwise approved by the Agent), whether in the form of dividends, distributions or otherwise, all profits, proceeds or other income relating to or arising from its Subsidiaries’ use, operation, financing, refinancing, sale or other disposition of their respective assets and properties after (a) the payment by each Subsidiary of its debt service, operating 

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expenses, capital improvements and leasing commissions for such quarter and (b) the establishment of reasonable reserves for the payment of operating expenses not paid on at least a quarterly basis and capital improvements and tenant improvements to be made to such Subsidiary’s assets and properties approved by such Subsidiary in the course of its business consistent with its past practices.

	
 
	
§7.18
	
Plan Assets

.  The Borrower, the Guarantors and each of their respective Subsidiaries will do, or cause to be done, all things necessary to ensure that none of its Real Estate or other assets will be deemed to be Plan Assets at any time.

	
 
	
§7.19
	
Intentionally Omitted.

	
 
	
§7.20
	
Intentionally Omitted.

	
 
	
§7.21
	
Sanctions Laws and Regulations; Anti-Bribery and Anti-Money Laundering

.  The Borrower shall not, directly or indirectly, use the proceeds of the Loans or any Letter of Credit or lend, contribute or otherwise make available such proceeds to any Guarantor, Subsidiary, Unconsolidated Affiliate or other Person (i) to fund any activities or business of or with any Designated Person, or in any country or territory, that at the time of such funding is itself the subject of territorial sanctions under applicable Sanctions Laws and Regulations, (ii) in any manner that would result in a violation of applicable Sanctions Laws and Regulations or applicable anti-bribery, anti-corruption or anti-money laundering laws or regulations in any applicable jurisdiction by any party to this Agreement, or (iii) in any manner that would cause the Borrower, the Guarantors or any of their respective Subsidiaries to violate the United States Foreign Corrupt Practices Act.  None of the funds or assets of the Borrower or Guarantors that are used to pay any amount due pursuant to this Agreement shall constitute funds obtained from transactions with or relating to Designated Persons or countries which are themselves the subject of territorial sanctions under applicable Sanctions Laws and Regulations.  Borrower shall maintain policies and procedures designed to achieve compliance with Sanctions Laws and Regulations.

	
 
	
§7.22
	
Assignment of Interest Rate Protection

.  In the event that the Borrower shall enter into an interest rate cap, swap, collar or other interest rate protection agreement with a Lender Hedge Provider (the “Interest Hedge”), then as a condition to the obligations of Borrower with respect thereto constituting Hedge Obligations for the purposes of the Loan Documents, Borrower shall execute and deliver to Agent a collateral assignment of such Interest Hedge in form and substance reasonably satisfactory to Agent, and shall further deliver such legal opinions as to Borrower, and consents to and acknowledgments of such pledge by the provider of the Interest Hedge, as Agent may reasonably require.  For the avoidance of doubt, unless the provisions of this §7.22 are complied with, no Lender Hedge Provider shall have any right or benefit under or from the Loan Documents or the Collateral. 

	
 
	
§7.23
	
Beneficial Ownership

.  Promptly following any change in beneficial ownership of the Borrower that would render any statement in an existing Beneficial Ownership 

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Certification untrue or inaccurate, the Borrower shall furnish to the Agent (for further delivery by the Agent to the Lenders in accordance with its customary practice) an updated Beneficial Ownership Certification for the Borrower. 

	
§8.
	
NEGATIVE COVENANTS

.

The Borrower covenants and agrees that, so long as any Loan, Note or Letter of Credit is outstanding or any of the Lenders has any obligation to make any Loans or issue any Letter of Credit:

	
 
	
§8.1
	
Restrictions on Indebtedness

.  The Borrower will not, and will not permit any Guarantor or their respective Subsidiaries to, create, incur, assume, guarantee or be or remain liable, contingently or otherwise, with respect to any Indebtedness other than:

(a)Indebtedness to the Lenders arising under any of the Loan Documents;

(b)Indebtedness to the Lender Hedge Providers in respect of any Hedge Obligations;

(c)current liabilities of the Borrower, the Guarantors or their respective Subsidiaries incurred in the ordinary course of business but not incurred through (i) the borrowing of money, or (ii) the obtaining of credit except for credit on an open account basis customarily extended and in fact extended in connection with normal purchases of goods and services;

(d)Indebtedness in respect of taxes, assessments, governmental charges or levies and claims for labor, materials and supplies to the extent that payment therefor shall not at the time be required to be made in accordance with the provisions of §7.8;

(e)Indebtedness in respect of judgments only to the extent, for the period and for an amount not resulting in a Default;

(f)endorsements for collection, deposit or negotiation and warranties of products or services, in each case incurred in the ordinary course of business;

(g)Intentionally Omitted; and

(h)subject to the provisions of §9, Non-Recourse Indebtedness.

Notwithstanding anything in this Agreement to the contrary, (i) none of the Indebtedness described in §8.1(h) above shall have any of the Mortgaged Properties or any interest therein or any direct or indirect ownership interest in the Borrower or any Subsidiary Guarantor as collateral, a borrowing base, asset pool or any similar form of credit support for such Indebtedness, (ii) none of the Subsidiary Guarantors which own a Mortgaged Property shall create, incur, assume, guarantee or be or remain liable, contingently or otherwise, with respect to any Indebtedness (including, without limitation, pursuant to any conditional or limited guaranty or indemnity agreement creating liability with respect to usual and customary exclusions from the non-recourse limitations governing the Non-Recourse Indebtedness of any Person, or otherwise) other than 

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Indebtedness described in §§8.1(a), 8.1(b), 8.1(c), 8.1(d), 8.1(e) and 8.1(f), (iii) none of the Borrower, the Guarantors or any of their respective Subsidiaries shall create, incur, assume, guarantee or be or remain liable, contingently or otherwise, with respect to any Recourse Indebtedness, any Unsecured Indebtedness, any Indebtedness (other than the Obligations) secured by Equity Interests or rights to Distributions (so-called “mezzanine financing”), structurally subordinated Indebtedness or second priority Liens, or any revolving credit facilities (other than this Agreement)); and (iv) none of the Real Estate of REIT and its Subsidiaries as of the Closing Date shall have any Indebtedness of the type described in §8.1(f) except for the Indebtedness existing as of the Closing Date that is secured by such Real Estate.

	
 
	
§8.2
	
Restrictions on Liens, Etc.

.  The Borrower will not, and will not permit any Guarantor or their respective Subsidiaries to (a) create or incur or suffer to be created or incurred or to exist any lien, security title, encumbrance, mortgage, deed of trust, security deed, pledge, negative pledge, charge, restriction or other security interest of any kind upon any of their respective property or assets of any character whether now owned or hereafter acquired, or upon the income or profits therefrom; (b) transfer any of their property or assets or the income or profits therefrom for the purpose of subjecting the same to the payment of Indebtedness or performance of any other obligation in priority to payment of its general creditors; (c) acquire any property or assets upon conditional sale or other title retention or purchase money security agreement, device or arrangement (or any financing lease having substantially the same economic effect as any of the foregoing); (d) suffer to exist for a period of more than thirty (30) days after the same shall have been incurred any Indebtedness or claim or demand against any of them that if unpaid could by law or upon bankruptcy or insolvency, or otherwise, be given any priority whatsoever over any of their general creditors; (e) sell, assign, pledge or otherwise transfer any accounts, contract rights, general intangibles, chattel paper or instruments, with or without recourse; (f) in the case of securities, create or incur or suffer to be created or incurred any purchase option, call or similar right with respect to such securities; or (g) incur or maintain any obligation to any holder of Indebtedness of any of such Persons which prohibits the creation or maintenance of any lien securing the Obligations (collectively, “Liens”); provided that notwithstanding anything to the contrary contained herein, the Borrower, any Guarantor or any such Subsidiary may create or incur or suffer to be created or incurred or to exist:

(i)Liens on properties to secure taxes, assessments and other governmental charges (excluding any Lien imposed pursuant to any of the provisions of ERISA or pursuant to any Environmental Laws) or claims for labor, material or supplies incurred in the ordinary course of business in respect of obligations not then delinquent or which are being contested as permitted under this Agreement;

(ii)Liens on assets other than (A) the Collateral or (B) any direct or indirect interest of the Borrower, any Guarantor or any Subsidiary of the Borrower in any Guarantor which owns a Mortgaged Property or in any other Subsidiary, in respect of judgments permitted by §8.1(e);

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(iii)deposits or pledges made in connection with, or to secure payment of, workers’ compensation, unemployment insurance, old age pensions or other social security obligations;

(iv)encumbrances on Real Estate other than Mortgaged Properties consisting of easements, rights of way, zoning restrictions, leases and other occupancy agreements, restrictions on the use of real property and defects and irregularities in the title thereto, landlord’s or lessor’s liens under leases to which the Borrower or a Subsidiary of such Person is a party, and other minor non-monetary liens or encumbrances none of which interferes materially with the use of the property affected in the ordinary conduct of the business of the Borrower or any such Subsidiary, which defects do not individually or in the aggregate have a Material Adverse Effect;

(v)direct liens on Real Estate (other than the Mortgaged Properties or other Collateral) to secure Indebtedness of Borrower or Subsidiaries of the Borrower that are not Subsidiary Guarantors which own a Mortgaged Property permitted by §8.1(h);

(vi)rights of setoff or bankers’ liens upon deposits of cash in favor of banks or other depository institutions, solely to the extent incurred in connection with the maintenance of such deposit accounts in the ordinary course of business;

(vii)Liens of Capitalized Leases on the property leased thereby;

(viii)Liens in favor of the Agent and the Lenders under the Loan Documents to secure the Obligations and the Hedge Obligations; and

(ix)Leases, liens and encumbrances on a Mortgaged Property expressly permitted under the terms of the Mortgage relating thereto.

Notwithstanding anything in this Agreement to the contrary, (i) no Guarantor shall create or incur or suffer to be created or incurred or to exist any Lien other than Liens contemplated in (i) with respect to any Subsidiary Guarantor that directly or indirectly owns a Mortgaged Property, §§8.2(i), 8.2(vi), 8.2(viii) and 8.2(ix), and (ii) with respect to REIT and General Partner, §§8.2(i) and 8.2(vi), and (ii) neither Borrower, any Guarantor nor any of their respective Subsidiaries shall grant any Liens secured by Equity Interests or any distributions or any other rights or interests relating thereto except for Liens granted to Agent under the Loan Documents.

	
 
	
§8.3
	
Restrictions on Investments

.  Neither the Borrower will, nor will it permit any Guarantor or any of its Subsidiaries to, make or permit to exist or to remain outstanding any Investment except Investments in:

(a)marketable direct or guaranteed obligations of the United States of America that mature within one (1) year from the date of purchase by the REIT or its Subsidiary;

(b)marketable direct obligations of any of the following:  Federal Home Loan Mortgage Corporation, Student Loan Marketing Association, Federal Home Loan Banks, Federal National Mortgage Association, Government National Mortgage Association, Bank for Cooperatives, Federal Intermediate Credit Banks, Federal Financing Banks, Export-Import Bank 

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of the United States, Federal Land Banks, or any other agency or instrumentality of the United States of America;

(c)demand deposits, certificates of deposit, bankers acceptances and time deposits of United States banks having total assets in excess of $100,000,000; provided, however, that the aggregate amount at any time so invested with any single bank having total assets of less than $1,000,000,000 will not exceed $200,000;

(d)commercial paper assigned the highest rating by two (2) or more national credit rating agencies and maturing not more than ninety (90) days from the date of creation thereof;

(e)bonds or other obligations having a short term unsecured debt rating of not less than A-1+ by S&P and P-1+ by Moody’s and having a long term debt rating of not less than A by S&P and A1 by Moody’s issued by or by authority of any state of the United States, any territory or possession of the United States, including the Commonwealth of Puerto Rico and agencies thereof, or any political subdivision of any of the foregoing;

(f)repurchase agreements having a term not greater than ninety (90) days and fully secured by securities described in the foregoing §§8.3(a), 8.3(b) or 8.3(c) with banks described in the foregoing §8.3(c) or with financial institutions or other corporations having total assets in excess of $500,000,000; and

(g)shares of so-called “money market funds” registered with the SEC under the Investment Company Act of 1940 which maintain a level per-share value, invest principally in investments described in the foregoing §§8.3(a) through 8.3(f) and have total assets in excess of $50,000,000.

(h)the acquisition of fee interests by the Borrower or its Subsidiaries in (i) Real Estate which is utilized as an Industrial Property located in the continental United States or the District of Columbia and businesses and investments incidental thereto, and (ii) subject to the restrictions set forth in this §8.3, the acquisition of Land Assets to be developed for the foregoing purpose;

(i)Investments by the Borrower in Subsidiaries that are directly or indirectly one hundred percent (100%) owned by the Borrower, which in turn own Investments permitted by this §8.3;

(j)Investments in Land Assets; provided that the aggregate amount of such Investments shall not exceed five percent (5%) of Gross Asset Value;

(k)Investments in non-Wholly-Owned Subsidiaries and Unconsolidated Affiliates, which in turn own Investments permitted by this §8.3; provided that the aggregate amount of such Investments shall not exceed ten percent (10%) of Gross Asset Value; and

(l)Investments in Development Properties for properties of the type described in §8.3(h)(i), provided that the aggregate construction and development budget for Development Properties (including land) shall not exceed ten percent (10%) of Gross Asset Value.

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(m)Investments in real estate assets that are not an Industrial Property; provided that the aggregate amount of such Investments shall not exceed five percent (5.0%) of Gross Asset Value.

Notwithstanding the foregoing, in no event shall the aggregate value of the holdings of the Borrower, any Guarantor and their Subsidiaries in the Investments described in §8.3(j), (k), (l) and (m) exceed twenty-five percent (25%) of Gross Asset Value at any time.

For the purposes of this §8.3, the Investment of REIT or any of its Subsidiaries in any Unconsolidated Affiliates will equal (without duplication) the sum of (i) such Person’s Equity Percentage of their Unconsolidated Affiliates’ Investments valued in the manner set forth for the determination of Gross Asset Value, or if not included therein, valued at the GAAP book value.

	
 
	
§8.4
	
Merger, Consolidation

.  Other than with respect to or in connection with any disposition permitted under §8.8, the Borrower will not, nor will it permit the Guarantors or any of their respective Subsidiaries to, dissolve, liquidate, dispose of all or substantially all of its assets or business (including, without limitation, by way of a Division), merge, reorganize, consolidate or do any other business combination, individually or in a series of transactions which may have a similar effect as any of the foregoing, in each case without the prior written consent of the Required Lenders.  Notwithstanding the foregoing, so long as no Default or Event of Default has occurred and is continuing immediately before and after giving effect thereto, the following shall be permitted without the consent of the Agent or any Lender:  (i) the merger or consolidation of one or more of the Subsidiaries of the Borrower (other than any Subsidiary that is a Guarantor) with and into the Borrower (it being understood and agreed that in any such event the Borrower will be the surviving Person), (ii) the merger or consolidation of two or more Subsidiaries of the Borrower; provided that no such merger or consolidation shall involve any Subsidiary that is a Guarantor unless such Guarantor will be the surviving Person, and (iii) the liquidation or dissolution of any Subsidiary of the Borrower that does not own any assets so long as such Subsidiary is not a Guarantor (or if such Subsidiary is a Guarantor, so long as the Borrower and such Subsidiary comply with the provisions of §5.4).  Nothing in this §8.4 shall prohibit the dissolution of a Subsidiary which has disposed of its assets in accordance with this Agreement.  A Subsidiary of the Borrower may sell all of its assets (and may effectuate such sale by merger or consolidation with another Person, with such other Person being the surviving entity) subject to compliance with the terms of this Agreement (including, without limitation, §§5.4 and 8.8), and after any such permitted sale, may dissolve.

	
 
	
§8.5
	
Sale and Leaseback

.  The Borrower will not, and will not permit its Subsidiaries, to enter into any arrangement, directly or indirectly, whereby the Borrower or any such Subsidiary shall sell or transfer any Real Estate owned by it in order that then or thereafter the Borrower or any such Subsidiary shall lease back such Real Estate without the prior written consent of the Agent, such consent not to be unreasonably withheld.

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§8.6
	
Compliance with Environmental Laws

.  Except to the extent disclosed in the Environmental Reports or on Schedule 6.19, none of the Borrower nor any Guarantor will, nor will any of them permit any of their respective Subsidiaries or any other Person to, do any of the following:  (a) use any of the Real Estate or any portion thereof as a facility for the handling, processing, storage or disposal of Hazardous Substances, except for quantities of Hazardous Substances used in the ordinary course of operating Industrial Properties as permitted under this Agreement and in material compliance with all applicable Environmental Laws, §8.7 cause or permit to be located on any of the Real Estate any underground tank or other underground storage receptacle for Hazardous Substances except in compliance with Environmental Laws, §8.7 generate any Hazardous Substances on any of the Real Estate except in compliance with Environmental Laws, §8.7 conduct any activity at any Real Estate or use any Real Estate in any manner that could reasonably be contemplated to cause a Release of Hazardous Substances on, upon or into the Real Estate or any surrounding properties or any threatened Release of Hazardous Substances which could reasonably be expected to give rise to liability under CERCLA or any other Environmental Law, or §8.7 directly or indirectly transport or arrange for the transport of any Hazardous Substances (except in compliance with all Environmental Laws), except, with respect to any Real Estate that is not a Mortgaged Property, where any such use, generation, conduct or other activity has not had and could not reasonably be expected to have a Material Adverse Effect.

The Borrower and the Guarantors shall, and shall cause their respective Subsidiaries to:

(i)in the event of any change in Environmental Laws governing the assessment, release or removal of Hazardous Substances, take all reasonable action (including, without limitation, the conducting of engineering tests at the sole expense of the Borrower) to confirm that no Hazardous Substances are or ever were Released or disposed of on the Real Estate in violation of applicable Environmental Laws; and

(ii)if any Release or disposal of Hazardous Substances which any Person may be legally obligated to contain, correct or otherwise remediate or which may otherwise expose it to liability shall occur or shall have occurred on any Real Estate (including, without limitation, any such Release or disposal occurring prior to the acquisition or leasing of such Real Estate by the Borrower or any Guarantor), the Borrower shall, after obtaining knowledge thereof, cause the prompt containment and removal of such Hazardous Substances and remediation of the Real Estate in full compliance with all applicable Environmental Laws; provided, that each of the Borrower and a Guarantor shall be deemed to be in compliance with Environmental Laws for the purpose of this clause (ii) so long as it or a responsible third party with sufficient financial resources is taking reasonable action to remediate or manage any event of noncompliance to the reasonable satisfaction of the Agent and no action shall have been commenced or filed by any enforcement agency.  The Agent may engage its own Environmental Engineer to review the environmental assessments and the compliance with the covenants contained herein.

(iii)At any time after an Event of Default shall have occurred hereunder, the Agent may at its election (and will at the request of the Required Lenders) obtain such 

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environmental assessments of any or all of the Real Estate prepared by an Environmental Engineer as may be necessary or advisable for the purpose of evaluating or confirming (A) whether any Hazardous Substances are present in the soil or water at or adjacent to any such Real Estate and (B) whether the use and operation of any such Real Estate complies with all Environmental Laws to the extent required by the Loan Documents.  Additionally, at any time that the Agent or the Required Lenders shall have reasonable grounds to believe that a Release or threatened Release of Hazardous Substances which any Person may be legally obligated to contain, correct or otherwise remediate or which otherwise may expose such Person to liability may have occurred, relating to any Real Estate, or that any of the Real Estate is not in compliance with Environmental Laws to the extent required by the Loan Documents, the Borrower shall promptly upon the request of the Agent obtain and deliver to the Agent such environmental assessments of such Real Estate prepared by an Environmental Engineer as may be necessary or advisable for the purpose of evaluating or confirming (A) whether any Hazardous Substances are present in the soil or water at or adjacent to such Real Estate and (B) whether the use and operation of such Real Estate comply with all Environmental Laws to the extent required by the Loan Documents.  Environmental assessments may include detailed visual inspections of such Real Estate including, without limitation, any and all storage areas, storage tanks, drains, dry wells and leaching areas, and the taking of soil samples, as well as such other investigations or analyses as are reasonably necessary or appropriate for a complete determination of the compliance of such Real Estate and the use and operation thereof with all applicable Environmental Laws.  All environmental assessments contemplated by this §8.6 shall be at the sole cost and expense of the Borrower.

	
 
	
§8.7
	
Distributions

.  

(a)The Borrower shall not pay any Distribution to the partners, members or other owners of the Borrower, and General Partner and REIT shall not pay any Distribution to their partners, members or other owners, to the extent that the aggregate amount of such Distributions paid, when added to the aggregate amount of all other Distributions paid in any period of four (4) consecutive calendar quarters, exceeds ninety-five percent (95%) of such Person’s Funds from Operations for such period; provided that the limitations contained in this §8.7(a) shall not preclude Distributions in an amount equal to the minimum distributions required under the Code to maintain the REIT Status of REIT (and in such event a corresponding distribution to the partners of Borrower in such amount), as evidenced by a certification of the principal financial or accounting officer of REIT containing calculations in detail reasonably satisfactory in form and substance to the Agent.

(b)If a Default or Event of Default shall have occurred and be continuing, the Borrower, General Partner and REIT shall make no Distributions to their respective partners, members or other owners, other than Distributions in an amount equal to the minimum distributions required under the Code to maintain the REIT Status of the REIT (and in such event a corresponding distribution to the partners of Borrower in such amount), as evidenced by a certification of the principal financial or accounting officer of the REIT containing calculations in detail reasonably satisfactory in form and substance to the Agent.

(c)Notwithstanding the foregoing, at any time when an Event of Default under §§12.1(a) or 12.1(b) shall have occurred and be continuing, an Event of Default under §§12.1(g), 12.1(h) or 12.1(i) shall have occurred and be continuing, or the maturity of the Obligations has 

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been accelerated, neither the Borrower, General Partner nor REIT shall make any Distributions whatsoever, directly or indirectly.

	
 
	
§8.8
	
Asset Sales

.  The Borrower will not, and will not permit the Guarantors or their respective Subsidiaries to, sell, transfer or otherwise dispose of (a) all or substantially all of their assets or (b) any material asset other than pursuant to a bona fide arm’s length transaction.

	
 
	
§8.9
	
Restriction on Prepayment of Indebtedness

.  The Borrower and the Guarantors will not, and will not permit their respective Subsidiaries to, (a) during the existence of any Default or Event of Default, prepay, redeem, defease, purchase or otherwise retire the principal amount, in whole or in part, of any Indebtedness other than the Obligations; provided, that the foregoing shall not prohibit (x) the prepayment of Indebtedness which is financed solely from the proceeds of a new loan which would otherwise be permitted by the terms of §8.1, and (y) the prepayment, redemption, defeasance or other retirement of the principal of Indebtedness secured by Real Estate which is satisfied solely from the proceeds of a sale of the Real Estate securing such Indebtedness; or (b) modify any document evidencing any Indebtedness (other than the Obligations) to accelerate the maturity date or required payments of principal of such Indebtedness during the existence of an Event of Default.

	
 
	
§8.10
	
Zoning and Contract Changes and Compliance

.  Neither the Borrower nor any Guarantor shall (a) initiate or consent to any zoning reclassification of any of the Real Estate or seek any variance under any existing zoning ordinance or use or permit the use of any Real Estate in any manner that could result in such use becoming a non-conforming use under any zoning ordinance or any other applicable land use law, rule or regulation or (b) initiate any change in any laws, requirements of governmental authorities or obligations created by private contracts and Leases which now or hereafter may materially adversely affect the ownership, occupancy, use or operation of any Real Estate.

	
 
	
§8.11
	
Derivatives Contracts

.  Neither the Borrower, the Guarantors nor any of their respective Subsidiaries shall contract, create, incur, assume or suffer to exist any Derivatives Contracts except for Hedge Obligations and interest rate swap, collar, cap or similar agreements providing interest rate protection and currency swaps and currency options made in the ordinary course of business and permitted pursuant to §8.1.

	
 
	
§8.12
	
Transactions with Affiliates

.  The Borrower shall not, and shall not permit any Guarantor or Subsidiary of any of them to, permit to exist or enter into, any transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate (but not including the Borrower or any Guarantor), except (i) transactions set forth on Schedule 6.14 attached hereto and (ii) transactions in the ordinary course of business pursuant to the reasonable requirements of the business of such Person and upon fair and reasonable terms 

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which are no less favorable to such Person than would be obtained in a comparable arm’s length transaction with a Person that is not an Affiliate.

	
 
	
§8.13
	
[Intentionally Omitted.]

	
 
	
§8.14
	
Equity Pledges

.  Notwithstanding anything in this Agreement to the contrary, neither the Borrower, the General Partner nor the REIT will create or incur or suffer to be created or incurred any Lien on any legal, equitable or beneficial interest of the REIT in the General Partner or the Borrower, of General Partner in the Borrower, or of Borrower in any Subsidiary Guarantor, including, without limitation, any Distributions or rights to Distributions on account thereof.

	
 
	
§8.15
	
Management Fees

.  The Borrower shall not pay, and shall not permit any Guarantor to pay, any management fees or other payments under any Management Agreement for any Mortgaged Property to the Borrower, any other manager that is an Affiliate of the Borrower or any other manager, in the event that a Default or an Event of Default shall have occurred and be continuing.

	
§9.
	
FINANCIAL COVENANTS

.

The Borrower covenants and agrees that, so long as any Loan, Note or Letter of Credit is outstanding or any Lender has any obligation to make any Loans or issue any Letter of Credit:

	
 
	
§9.1
	
Minimum Occupancy

.  All Buildings located on the Real Estate, collectively, shall at all times be at least eighty-five percent (85.0%) leased pursuant to arms-length leases to tenants that are not an Affiliate of Borrower and that are not in default under their leases. 

	
 
	
§9.2
	
Consolidated Total Indebtedness to Gross Asset Value

.  The Borrower will not at any time permit the ratio of Consolidated Total Indebtedness to Gross Asset Value (expressed as a percentage) to exceed sixty-five (65%).

	
 
	
§9.3
	
Adjusted Consolidated EBITDA to Consolidated Fixed Charges

.  The Borrower will not at any time permit the ratio of Adjusted Consolidated EBITDA determined for the most recently ended four (4) calendar quarters to Consolidated Fixed Charges for the most recently ended four (4) calendar quarters to be less than 1.55 to 1.

	
 
	
§9.4
	
Minimum Consolidated Tangible Net Worth

.  The Borrower will not at any time permit Consolidated Tangible Net Worth to be less than the sum of (i) $310,504,331.00, plus (ii) seventy-five percent (75.0%) of the sum of any additional Net Offering Proceeds after the date of this Agreement.

	
 
	
§9.5
	
Liquidity

.  The Borrower shall have Liquidity at all times of not less than Five Million and No/100 Dollars ($5,000,000.00).

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§9.6
	
Unhedged Variable Rate Debt

.  The Borrower will not at any time permit the Unhedged Variable Rate Debt of the REIT and its Subsidiaries on a Consolidated basis to exceed twenty percent (20%) of Gross Asset Value. 

	
 
	
§9.7
	
Consolidated Debt Yield

.  The Borrower will not at any time permit Consolidated Debt Yield to be less than eight percent (8.0%). 

	
§10.
	
CLOSING CONDITIONS

.

The obligation of the Lenders to make the Loans or issue the Letter(s) of Credit shall be subject to the satisfaction of the following conditions precedent:

	
 
	
§10.1
	
Loan Documents

.  Each of the Loan Documents shall have been duly executed and delivered by the respective parties thereto and shall be in full force and effect.  The Agent shall have received a fully executed counterpart of each such document, except that each Revolving Credit Lender shall have received the fully-executed original of its Revolving Credit Note and each Term Loan Lender shall have received the fully-executed original of its Term Loan Note.

	
 
	
§10.2
	
Certified Copies of Organizational Documents

.  The Agent shall have received from the Borrower and each Guarantor a copy, certified as of a recent date by the appropriate officer of each State in which such Person is organized and (with respect to Borrower or any Guarantor that any Real Estate) in which such Real Estate is located and a duly authorized officer, partner or member of such Person, as applicable, to be true and complete, of the partnership agreement, corporate charter or operating agreement and/or other organizational agreements of the Borrower and each such Guarantor, as applicable, and its qualification to do business, as applicable, as in effect on such date of certification.

	
 
	
§10.3
	
Resolutions

.  All action on the part of the Borrower and each Guarantor, as applicable, necessary for the valid execution, delivery and performance by such Person of this Agreement and the other Loan Documents to which such Person is or is to become a party shall have been duly and effectively taken, and evidence thereof reasonably satisfactory to the Agent shall have been provided to the Agent.

	
 
	
§10.4
	
Incumbency Certificate; Authorized Signers

.  The Agent shall have received from the Borrower and each Guarantor an incumbency certificate, dated as of the Closing Date, signed by a duly authorized officer of such Person and giving the name and bearing a specimen signature of each individual who shall be authorized to sign, in the name and on behalf of such Person, each of the Loan Documents to which such Person is or is to become a party.

	
 
	
§10.5
	
Opinion of Counsel

.  The Agent shall have received an opinion addressed to the Lenders and the Agent and dated as of the Closing Date from counsel to the Borrower and each Guarantor in form and substance reasonably satisfactory to the Agent.

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§10.6
	
Payment of Fees

.  The Borrower shall have paid to the Agent the fees payable pursuant to §4.2.

	
 
	
§10.7
	
Performance; No Default

.  The Borrower and each Guarantor shall have performed and complied with all terms and conditions herein required to be performed or complied with by it on or prior to the Closing Date, and on the Closing Date there shall exist no Default or Event of Default.

	
 
	
§10.8
	
Representations and Warranties

.  The representations and warranties made by the Borrower and each Guarantor in the Loan Documents or otherwise made by or on behalf of the Borrower, the Guarantors and their respective Subsidiaries in connection therewith or after the date thereof shall have been true and correct in all material respects when made and shall also be true and correct in all material respects on the Closing Date.

	
 
	
§10.9
	
Proceedings and Documents

.  All proceedings in connection with the transactions contemplated by this Agreement and the other Loan Documents shall be reasonably satisfactory to the Agent and the Agent’s counsel in form and substance, and the Agent shall have received all information and such counterpart originals or certified copies of such documents and such other certificates, opinions, assurances, consents, approvals or documents as the Agent and the Agent’s counsel may reasonably require.

	
 
	
§10.10
	
KYC

.  The Borrower and each Guarantor shall have provided to the Agent and the Lenders the documentation and other information requested by the Agent or any Lender to comply with its “know your customer” requirements and to confirm compliance with all applicable Sanctions Laws and Regulations, the United States Foreign Corrupt Practices Act and other Applicable Law, and if the Borrower qualifies as a “legal entity customer” within the meaning of the Beneficial Ownership Regulation, the Borrower shall have provided to the Agent (for further delivery by the Agent to the Lenders in accordance with its customary practice) a Beneficial Ownership Certification for the Borrower; in each case delivered at least five (5) Business Days prior to the Closing Date.

	
 
	
§10.11
	
Compliance Certificate

.  The Agent shall have received a Compliance Certificate dated as of the date of the Closing Date demonstrating compliance with each of the covenants calculated therein as of the most recent calendar quarter for which the Borrower has provided financial statements under §6.4. 

	
 
	
§10.12
	
Appraisals

.  The Agent shall have received Borrower Appraisals of each Real Estate asset in form and substance reasonably satisfactory to the Agent.

	
 
	
§10.13
	
Consents

.  The Agent shall have received evidence reasonably satisfactory to the Agent that all necessary stockholder, partner, member or other consents required in connection with the consummation of the transactions contemplated by this Agreement and the other Loan Documents have been obtained.

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§10.14
	
Contribution Agreement

.  The Agent shall have received a fully executed counterpart of the Contribution Agreement.

	
 
	
§10.15
	
Insurance

.  The Agent shall have received certificates evidencing that the Agent and the Lenders are named as mortgagee and/or additional insured, as applicable, on all policies of insurance as required by this Agreement or the other Loan Documents.

	
 
	
§10.16
	
Other

.  The Agent shall have reviewed such other documents, instruments, certificates, opinions, assurances, consents and approvals as the Agent or the Agent’s Special Counsel may reasonably have requested.

	
§11.
	
CONDITIONS TO ALL BORROWINGS

.

The obligations of the Lenders to make any Loan or issue any Letter of Credit, whether on or after the Closing Date, shall also be subject to the satisfaction of the following conditions precedent:

	
 
	
§11.1
	
Prior Conditions Satisfied

.  All conditions set forth in §10 shall continue to be satisfied as of the date upon which any Loan is to be made or any Letter of Credit is to be issued.

	
 
	
§11.2
	
Representations True; No Default

.  Each of the representations and warranties made by or on behalf of the Borrower, the Guarantors or any of their respective Subsidiaries contained in this Agreement, the other Loan Documents or in any document or instrument delivered pursuant to or in connection with this Agreement shall be true and correct in all material respects both as of the date as of which they were made and shall also be true and correct in all material respects as of the time of the making of such Loan or the issuance of such Letter of Credit, with the same effect as if made at and as of that time, except to the extent of changes resulting from transactions permitted by the Loan Documents (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct only as of such specified date), and no Default or Event of Default shall have occurred and be continuing.

	
 
	
§11.3
	
Borrowing Documents

.  The Agent shall have received a fully completed Loan Request for such Loan and the other documents and information as required by §2.7, or a fully completed Letter of Credit Request required by §2.10, as applicable.

	
 
	
§11.4
	
Endorsement to Title Policy

.  To the extent the Agent is a beneficiary of any Mortgage, at such times as the Agent shall determine in its discretion at any time, to the extent available under applicable law, a “date down” endorsement to each Title Policy indicating no change in the state of title and containing no survey exceptions not approved by the Agent, which endorsement shall, expressly or by virtue of a proper “revolving credit” clause or endorsement in each Title Policy, increase the coverage of each Title Policy to the aggregate amount of all Loans advanced and outstanding and Letters of Credit issued and outstanding (provided that the amount of coverage under an individual Title Policy for an individual 

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Mortgaged Property need not equal the aggregate amount of all Loans), or if such endorsement is not available, such other evidence and assurances as the Agent may reasonably require (which evidence may include, without limitation, an affidavit from the Borrower stating that there have been no changes in title from the date of the last effective date of the Title Policy).

	
 
	
§11.5
	
Future Advances Tax Payment

.  To the extent the Agent is a beneficiary of any Mortgage, as a condition precedent to any Lender’s obligations to make any Loans available to the Borrower hereunder, the Borrower will pay to the Agent any mortgage, recording, intangible, documentary stamp or other similar taxes and charges which the Agent reasonably determines to be payable as a result of such Loan to any state or any county or municipality thereof in which any of the Mortgaged Properties is located, and deliver to the Agent such affidavits or other information which the Agent reasonably determines to be necessary in connection with such payment in order to insure that the Mortgages on the Mortgaged Properties located in such state secure the Borrower’s obligation with respect to the Loans then being requested by the Borrower.  The provisions of this §11.5 shall not limit the Borrower’s obligations under other provisions of the Loan Documents, including §15.

	
§12.
	
EVENTS OF DEFAULT; ACCELERATION; ETC.

.

	
 
	
§12.1
	
Events of Default and Acceleration

.  If any of the following events (“Events of Default” or, if the giving of notice or the lapse of time or both is required, then, prior to such notice or lapse of time, “Defaults”) shall occur:

(a)the Borrower shall fail to pay any principal of the Loans when the same shall become due and payable, whether at the stated date of maturity or any accelerated date of maturity or at any other date fixed for payment;

(b)the Borrower shall fail to pay any interest on the Loans, any reimbursement obligations with respect to the Letters of Credit or any fees or other sums due hereunder or under any of the other Loan Documents when the same shall become due and payable, whether at the stated date of maturity or any accelerated date of maturity or at any other date fixed for payment;

(c)the Borrower shall fail to perform any term, covenant or agreement contained in §9;

(d)any of the Borrower, the Guarantors or any of their respective Subsidiaries shall fail to perform any other term, covenant or agreement contained herein or in any of the other Loan Documents which they are required to perform (other than those specified in the other subsections or clauses of this §12 or in the other Loan Documents);

(e)any representation or warranty made by or on behalf of the Borrower, the Guarantors or any of their respective Subsidiaries in this Agreement or any other Loan Document, or any report, certificate, financial statement, request for a Loan, Letter of Credit Request, or in any other document or instrument delivered pursuant to or in connection with this Agreement, any advance of a Loan, the issuance of any Letter of Credit or any of the other Loan Documents shall 

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prove to have been false in any material respect upon the date when made or deemed to have been made or repeated;

(f)the Borrower, any Guarantor or any of their Subsidiaries shall fail to pay when due (including, without limitation, at maturity), or within any applicable period of grace, any obligation for borrowed money or credit received or other Indebtedness (including under any Derivatives Contract), or shall fail to observe or perform any term, covenant or agreement contained in any agreement by which it is bound, evidencing or securing any obligation for borrowed money or credit received or other Indebtedness (including under any Derivatives Contract) for such period of time as would permit (assuming the giving of appropriate notice if required) the holder or holders thereof or of any obligations issued thereunder to accelerate the maturity thereof or require the prepayment, redemption, purchase, termination or other settlement thereof; provided, however, that the events described in this §12.1(f) shall not constitute an Event of Default unless such failure to perform, together with other failures to perform as described in §12.1(f), involves singly or in the aggregate obligations totaling $25,000,000.00 of Indebtedness or more;

(g)any of the Borrower, the Guarantors, or any of their respective Subsidiaries, (i) shall make an assignment for the benefit of creditors, or admit in writing its general inability to pay or generally fail to pay its debts as they mature or become due, or shall petition or apply for the appointment of a trustee or other custodian, liquidator or receiver for it or any substantial part of its assets, (ii) shall commence any case or other proceeding relating to it under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar law of any jurisdiction, now or hereafter in effect, or (iii) shall take any action to authorize or in furtherance of any of the foregoing;

(h)a petition or application shall be filed for the appointment of a trustee or other custodian, liquidator or receiver of any of the Borrower, the Guarantors, or any of their respective Subsidiaries or any substantial part of the assets of any thereof, or a case or other proceeding shall be commenced against any such Person under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar law of any jurisdiction, now or hereafter in effect, and any such Person shall indicate its approval thereof, consent thereto or acquiescence therein or such petition, application, case or proceeding shall not have been dismissed within sixty (60) days following the filing or commencement thereof;

(i)a decree or order is entered appointing a trustee, custodian, liquidator or receiver for any of the Borrower, the Guarantors, or any of their respective Subsidiaries or adjudicating any such Person, bankrupt or insolvent, or approving a petition in any such case or other proceeding, or a decree or order for relief is entered in respect of any such Person in an involuntary case under federal bankruptcy laws as now or hereafter constituted;

(j)there shall remain in force, undischarged, unsatisfied and unstayed, for more than thirty (30) days, whether or not consecutive, one (1) or more uninsured or unbonded final judgments against the Borrower, any Guarantor or any of their respective Subsidiaries that, either individually or in the aggregate, exceed $10,000,000.00 per occurrence or during any twelve (12) month period;

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(k)any of the Loan Documents or the Contribution Agreement shall be disavowed, canceled, terminated, revoked or rescinded otherwise than in accordance with the terms thereof or the express prior written agreement, consent or approval of the Lenders, or any action at law, suit in equity or other legal proceeding to disavow, cancel, revoke, rescind or challenge or content the validity or enforceability of any of the Loan Documents or the Contribution Agreement shall be commenced by or on behalf of the Borrower or any Guarantor, or any court or any other governmental or regulatory authority or agency of competent jurisdiction shall make a determination, or issue a judgment, order, decree or ruling, to the effect that any one or more of the Loan Documents or the Contribution Agreement is illegal, invalid or unenforceable in accordance with the terms thereof;

(l)any dissolution, termination, partial or complete liquidation, merger or consolidation of the Borrower, any Guarantor or any of their respective Subsidiaries shall occur or any sale, transfer or other disposition of the assets of the Borrower, any Guarantor or any of their respective Subsidiaries shall occur, in each case, other than as permitted under the terms of this Agreement or the other Loan Documents;

(m)with respect to any Guaranteed Pension Plan, an ERISA Reportable Event shall have occurred and the Required Lenders shall have determined in their reasonable discretion that such event reasonably could be expected to result in liability of the Borrower, the Guarantors or any of their respective Subsidiaries to the PBGC or such Guaranteed Pension Plan in excess of $10,000,000.00 and (x) such event in the circumstances occurring reasonably could constitute grounds for the termination of such Guaranteed Pension Plan by the PBGC or for the appointment by the appropriate United States District Court of a trustee to administer such Guaranteed Pension Plan; or (y) a trustee shall have been appointed by the United States District Court to administer such Plan; or (z) the PBGC shall have instituted proceedings to terminate such Guaranteed Pension Plan;

(n)the Borrower, any Guarantor or any of their respective Subsidiaries or any shareholder, officer, director, partner or member of any of them shall be indicted for a federal crime, a punishment for which could include the forfeiture of (i) any assets of the Borrower or any of their respective Subsidiaries which in the good faith judgment of the Required Lenders could reasonably be expected to have a Material Adverse Effect, or (ii) the Collateral;

(o)any Guarantor denies that it has any liability or obligation under the Guaranty or any other Loan Document, or shall notify the Agent or any of the Lenders of such Guarantor’s intention to attempt to cancel or terminate the Guaranty or any other Loan Document, or shall fail to observe or comply with any term, covenant, condition or agreement under any Guaranty or any other Loan Document;

(p)any Change of Control shall occur; or

(q)an Event of Default under any of the other Loan Documents shall occur;

then, and in any such event, the Agent may, and, upon the request of the Required Lenders, shall by notice in writing to the Borrower declare all amounts owing with respect to this Agreement, the Notes, the Letters of Credit and the other Loan Documents to be, and they shall thereupon forthwith 

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become, immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrower; provided that in the event of any Event of Default specified in §§12.1(g), 12.1(h) or 12.1(i), all such amounts shall become immediately due and payable automatically and without any requirement of presentment, demand, protest or other notice of any kind from any of the Lenders or the Agent, the Borrower hereby expressly waiving any right to notice of intent to accelerate and notice of acceleration.  Upon demand by the Agent or the Required Revolving Credit Lenders in their absolute and sole discretion after the occurrence and during the continuance of an Event of Default, and regardless of whether the conditions precedent in this Agreement for a Revolving Credit Loan have been satisfied, the Revolving Credit Lenders will cause a Revolving Credit Loan to be made in the undrawn amount of all Letters of Credit.  The proceeds of any such Revolving Credit Loan will be pledged to and held by the Agent as security for any amounts that become payable under the Letters of Credit and all other Obligations and Hedge Obligations.  In the alternative, if demanded by the Agent in its absolute and sole discretion after the occurrence and during the continuance of an Event of Default, the Borrower will deposit into the Collateral Account and pledge to the Agent cash in an amount equal to the amount of all undrawn Letters of Credit.  Such amounts will be pledged to and held by the Agent for the benefit of the Revolving Credit Lenders as security for any amounts that become payable under the Letters of Credit and all other Obligations and Hedge Obligations.  Upon any draws under Letters of Credit, at the Agent’s sole discretion, the Agent may apply any such amounts to the repayment of amounts drawn thereunder and upon the expiration of the Letters of Credit any remaining amounts will be applied to the payment of all other Obligations and Hedge Obligations or if there are no outstanding Obligations and Hedge Obligations and the Revolving Credit Lenders have no further obligation to make Revolving Credit Loans or issue Letters of Credit or if such excess no longer exists, such proceeds deposited by the Borrower will be released to the Borrower.

	
 
	
§12.2
	
Certain Cure Periods; Limitation of Cure Periods

.  Notwithstanding anything contained in §12.1 to the contrary, (i) no Event of Default shall exist hereunder upon the occurrence of any failure described in §12.1(b) in the event that the Borrower cures such Default within five (5) Business Days after the date such payment is due (or, with respect to any payments other than interest on the Loans, any reimbursement obligations with respect to the Letters of Credit or any fees due under the Loan Documents, within five (5) Business Days after written notice thereof shall have been given to the Borrower by the Agent), provided, however, that the Borrower shall not be entitled to receive more than two (2) grace or cure periods in the aggregate pursuant to this clause (i) in any period of 365 days ending on the date of any such occurrence of Default, and provided further, that no such cure period shall apply to any payments due upon the maturity of the Notes, and (ii) no Event of Default shall exist hereunder upon the occurrence of any failure described in §12.1(d) in the event that the Borrower cures (or causes to be cured) such Default within thirty (30) days following receipt of written notice of such default, provided that the provisions of this clause (ii) shall not pertain to defaults consisting of a failure to provide insurance as required by §7.7, to any default (whether of the Borrower, any Guarantor or any Subsidiary thereof) consisting of a failure to comply with §§5.3, 7.4(c), 7.14, 7.17, 7.18, 8.1, 8.2, 8.3, 8.4, 8.7, 8.8, 8.9 or 8.14 or to any Default excluded from any provision of cure of defaults contained in any other of the Loan Documents.

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§12.3
	
Termination of Commitments

.  If any one or more Events of Default specified in §12.1(g), 12.1(h) or 12.1(i) shall occur, then immediately and without any action on the part of the Agent or any Lender any unused portion of the credit hereunder shall terminate and the Lenders shall be relieved of all obligations to make Loans or issue Letters of Credit to the Borrower.  If any other Event of Default shall have occurred, the Agent may, and upon the election of the Required Revolving Credit Lenders, shall, by notice to the Borrower terminate the obligation to make Revolving Credit Loans to and issue Letters of Credit for the Borrower.  No termination under this §12.3 shall relieve the Borrower or the Guarantors of their obligations to the Lenders arising under this Agreement or the other Loan Documents.

	
 
	
§12.4
	
Remedies

.  In case any one or more Events of Default shall have occurred and be continuing, and whether or not the Lenders shall have accelerated the maturity of the Loans pursuant to §12.1, the Agent, on behalf of the Lenders may, and upon the direction of the Required Lenders, shall proceed to protect and enforce their rights and remedies under this Agreement, the Notes and/or any of the other Loan Documents by suit in equity, action at law or other appropriate proceeding, including to the full extent permitted by applicable law the specific performance of any covenant or agreement contained in this Agreement and the other Loan Documents, the obtaining of the ex parte appointment of a receiver, requiring the establishment of a hard lockbox and cash management system with Agent, and, if any amount shall have become due, by declaration or otherwise, the enforcement of the payment thereof.  No remedy herein conferred upon the Agent or the holder of any Note is intended to be exclusive of any other remedy and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or any other provision of law.  Notwithstanding the provisions of this Agreement providing that the Loans may be evidenced by multiple Notes in favor of the Lenders, the Lenders acknowledge and agree that only the Agent may exercise any remedies arising by reason of a Default or Event of Default.  If the Borrower or any Guarantor fails to perform any agreement or covenant contained in this Agreement or any of the other Loan Documents beyond any applicable period for notice and cure, the Agent may itself perform, or cause to be performed, any agreement or covenant of such Person contained in this Agreement or any of the other Loan Documents which such Person shall fail to perform, and the out-of-pocket costs of such performance, together with any reasonable expenses, including reasonable attorneys’ fees actually incurred (including attorneys’ fees incurred in any appeal) by the Agent in connection therewith, shall be payable by the Borrower upon demand and shall constitute a part of the Obligations and shall if not paid within five (5) days after demand bear interest at the Default Rate.  In the event that all or any portion of the Obligations is collected by or through an attorney-at-law, the Borrower shall pay all costs of collection including, but not limited to, reasonable attorney’s fees.

	
 
	
§12.5
	
Distribution of Collateral Proceeds

.  In the event that, following the occurrence and during the continuance of any Event of Default, any monies are received in connection with the enforcement of any of the Loan Documents, or otherwise with 

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respect to the realization upon any of the Collateral or other assets of the Borrower or the Guarantors, such monies shall be distributed for application as follows:

(a)First, to the payment of, or (as the case may be) the reimbursement of the Agent for or in respect of, all reasonable out-of-pocket costs, expenses, disbursements and losses which shall have been paid or incurred or sustained by the Agent to protect or preserve the Collateral or in connection with the collection of such monies by the Agent, for the exercise, protection or enforcement by the Agent of all or any of the rights, remedies, powers and privileges of the Agent or the Lenders under this Agreement or any of the other Loan Documents or in respect of the Collateral or in support of any provision of adequate indemnity to the Agent against any taxes or liens which by law shall have, or may have, priority over the rights of the Agent or the Lenders to such monies;

(b)Second, to all other Obligations and Hedge Obligations (including any interest, expenses or other obligations incurred after the commencement of a bankruptcy) in such order or preference as the Required Lenders shall determine; provided, that (i) Swing Loans shall be repaid first, (ii) distributions in respect of such other Obligations shall include, on a pari passu basis, any Agent’s fee payable pursuant to §4.2, (iii) in the event that any Lender is a Defaulting Lender, payments to such Lender shall be governed by §2.13, and (iv) except as otherwise provided in clause (iii), Obligations owing to the Lenders with respect to each type of Obligation such as interest, principal, fees and expenses and Hedge Obligations (but excluding the Swing Loans) shall be made among the Lenders and Lender Hedge Providers, pro rata, and as between the Revolving Credit Loans and Term Loans pro rata; and provided, further that the Required Lenders may in their discretion make proper allowance to take into account any Obligations not then due and payable; and

(c)Third, the excess, if any, shall be returned to the Borrower or to such other Persons as are entitled thereto.

	
 
	
§12.6
	
Collateral Account

.

(a)As collateral security for the prompt payment in full when due of all Letter of Credit Liabilities, Swing Loans and the other Obligations and Hedge Obligations, the Borrower hereby pledges and grants to the Agent, for the ratable benefit of the Agent and the Lenders as provided herein, a security interest in all of its right, title and interest in and to the Collateral Account and the balances from time to time in the Collateral Account (including any interest provided for below).  The balances from time to time in the Collateral Account shall not constitute payment of any Letter of Credit Liabilities or Swing Loans until applied by the Agent as provided herein.  Anything in this Agreement to the contrary notwithstanding, funds held in the Collateral Account shall be subject to withdrawal only as provided in this §12.6.

(b)Amounts on deposit in the Collateral Account shall not be invested by the Agent, and will earn interest at a rate paid by Agent with respect to similar accounts, and shall be held in the name of and be under the sole dominion and control of the Agent for the ratable benefit of the Lenders.  The Agent shall exercise reasonable care in the custody and preservation of any funds held in the Collateral Account and shall be deemed to have exercised such care if such funds are accorded treatment substantially equivalent to that which the Agent accords other funds 

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deposited with the Agent, it being understood that the Agent shall not have any responsibility for taking any necessary steps to preserve rights against any parties with respect to any funds held in the Collateral Account.

(c)If a drawing pursuant to any Letter of Credit occurs on or prior to the expiration date of such Letter of Credit, the Borrower and the Lenders authorize the Agent to use the monies deposited in the Collateral Account to make payment to the beneficiary with respect to such drawing or the payee with respect to such presentment.  If a Swing Loan is not refinanced as a Revolving Credit Loan as provided in §2.5 above, then the Agent is authorized to use monies deposited in the Collateral Account to make payment to the Swing Loan Lender with respect to any participation not funded by a Defaulting Lender.

(d)If an Event of Default exists, the Required Revolving Credit Lenders may, in their discretion, at any time and from time to time, instruct the Agent to liquidate or withdraw any amounts in the Collateral Account and apply proceeds thereof to the Obligations and Hedge Obligations in accordance with §12.5.

(e)So long as no Default or Event of Default exists, and to the extent amounts on deposit in the Collateral Account exceed the aggregate amount of the Letter of Credit Liabilities then due and owing and the pro rata share of any Letter of Credit Obligations and Swing Loans of any Defaulting Lender after giving effect to §2.13(c), the Agent shall, from time to time, at the request of the Borrower, deliver to the Borrower within ten (10) Business Days after the Agent’s receipt of such request from the Borrower, against receipt but without any recourse, warranty or representation whatsoever, such of the balances in the Collateral Account as exceed the aggregate amount of the Letter of Credit Liabilities and Swing Loans at such time.

(f)The Borrower shall pay to the Agent from time to time such fees as the Agent normally charges for similar services in connection with the Agent’s administration of the Collateral Account.  The Borrower authorizes the Agent to file such financing statements as the Agent may reasonably require in order to perfect the Agent’s security interest in the Collateral Account, and the Borrower shall promptly upon demand execute and deliver to the Agent such other documents as the Agent may reasonably request to evidence its security interest in the Collateral Account.

	
§13.
	
SETOFF

.

Regardless of the adequacy of any Collateral, during the continuance of any Event of Default, any deposits (general or specific, time or demand, provisional or final, regardless of currency, maturity, or the branch where such deposits are held) or other sums credited by or due from any Lender to the Borrower or the Guarantors and any securities or other property of the Borrower or the Guarantors in the possession of such Lender may, without notice to the Borrower or any Guarantor (any such notice being expressly waived by the Borrower and each Guarantor) but with the prior written approval of the Agent, be applied to or set off against the payment of Obligations and any and all other liabilities, direct, or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, of the Borrower or the Guarantors to such Lender under the Loan Documents.  Each of the Lenders agree with each other Lender that if such Lender shall receive from the Borrower or the Guarantors, whether by voluntary payment, exercise of the 

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right of setoff, or otherwise, and shall retain and apply to the payment of the Note or Notes held by such Lender (but excluding the Swing Loan Note) any amount in excess of its ratable portion of the payments received by all of the Lenders with respect to the Notes held by all of the Lenders, such Lender will make such disposition and arrangements with the other Lenders with respect to such excess, either by way of distribution, pro tanto assignment of claims, subrogation or otherwise as shall result in each Lender receiving in respect of the Notes held by it its proportionate payment as contemplated by this Agreement; provided that if all or any part of such excess payment is thereafter recovered from such Lender, such disposition and arrangements shall be rescinded and the amount restored to the extent of such recovery, but without interest.  In the event that any Defaulting Lender shall exercise any such right of setoff, (a) all amounts so set off shall be paid over immediately to the Agent for further application in accordance with the provisions of this Agreement and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Agent and the Lenders, and (b) such Defaulting Lender shall provide promptly to the Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff.

	
§14.
	
the Agent

.

	
 
	
§14.1
	
Authorization

.  The Agent is authorized to take such action on behalf of each of the Lenders and to exercise all such powers as are hereunder and under any of the other Loan Documents and any related documents delegated to the Agent, together with such powers as are reasonably incident thereto, provided that no duties or responsibilities not expressly assumed herein or therein shall be implied to have been assumed by the Agent.  The obligations of the Agent hereunder are primarily administrative in nature, and nothing contained in this Agreement or any of the other Loan Documents shall be construed to constitute the Agent as a trustee for any Lender or to create an agency or fiduciary relationship.  The Agent shall act as the contractual representative of the Lenders hereunder, and notwithstanding the use of the term “Agent”, it is understood and agreed that the Agent shall not have any fiduciary duties or responsibilities to any Lender by reason of this Agreement or any other Loan Document and is acting as an independent contractor, the duties and responsibilities of which are limited to those expressly set forth in this Agreement and the other Loan Documents.  The Borrower and any other Person shall be entitled to conclusively rely on a statement from the Agent that it has the authority to act for and bind the Lenders pursuant to this Agreement and the other Loan Documents.

	
 
	
§14.2
	
Employees and Agents

.  The Agent may exercise its powers and execute its duties by or through employees or agents and shall be entitled to take, and to rely on, advice of counsel concerning all matters pertaining to its rights and duties under this Agreement and the other Loan Documents.  The Agent may utilize the services of such Persons as the Agent may reasonably determine, and all reasonable fees and expenses of any such Persons shall be paid by the Borrower.

	
 
	
§14.3
	
No Liability

.  Neither the Agent nor any of its shareholders, directors, officers or employees nor any other Person assisting them in their duties nor any agent, or employee thereof, shall be liable for (a) any waiver, consent or approval given or 

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any action taken, or omitted to be taken, in good faith by it or them hereunder or under any of the other Loan Documents, or in connection herewith or therewith, or be responsible for the consequences of any oversight or error of judgment whatsoever, except that the Agent or such other Person, as the case may be, shall be liable for losses due to its willful misconduct or gross negligence as finally determined by a court of competent jurisdiction after the expiration of all applicable appeal periods or (b) any action taken or not taken by the Agent with the consent or at the request of the Required Lenders, the Required Revolving Credit Lenders or the Required Term Loan Lenders, as applicable.  The Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, unless the Agent has received notice from a Lender or the Borrower referring to the Loan Documents and describing with reasonable specificity such Default or Event of Default and stating that such notice is a “notice of default”.

	
 
	
§14.4
	
No Representations

.  The Agent shall not be responsible for the execution or validity or enforceability of this Agreement, the Notes, any of the other Loan Documents or any instrument at any time constituting, or intended to constitute, collateral security for the Notes, or for the value of any such collateral security or for the validity, enforceability or collectability of any such amounts owing with respect to the Notes, or for any recitals or statements, warranties or representations made herein, or any agreement, instrument or certificate delivered in connection therewith or in any of the other Loan Documents or in any certificate or instrument hereafter furnished to it by or on behalf of the Borrower, the Guarantors or any of their respective Subsidiaries, or be bound to ascertain or inquire as to the performance or observance of any of the terms, conditions, covenants or agreements herein or in any of the other Loan Documents.  The Agent shall not be bound to ascertain whether any notice, consent, waiver or request delivered to it by the Borrower, the Guarantors or any holder of any of the Notes shall have been duly authorized or is true, accurate and complete.  The Agent has not made nor does it now make any representations or warranties, express or implied, nor does it assume any liability to the Lenders, with respect to the creditworthiness or financial condition of the Borrower, the Guarantors or any of their respective Subsidiaries, or the value of the Collateral or any other assets of the Borrower, any Guarantor or any of their respective Subsidiaries.  Each Lender acknowledges that it has, independently and without reliance upon the Agent or any other Lender, and based upon such information and documents as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will, independently and without reliance upon the Agent or any other Lender, based upon such information and documents as it deems appropriate at the time, continue to make its own credit analysis and decisions in taking or not taking action under this Agreement and the other Loan Documents.  The Agent’s Special Counsel has only represented the Agent and KeyBank in connection with the Loan Documents and the only attorney client relationship or duty of care is between the Agent’s Special Counsel and the Agent or KeyBank.  Each Lender has been independently represented by separate counsel on all matters regarding the Loan Documents and the granting and perfecting of liens in the Collateral.

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§14.5
	
Payments

.

(a)A payment by the Borrower or any Guarantor to the Agent hereunder or under any of the other Loan Documents for the account of any Lender shall constitute a payment to such Lender.  The Agent agrees to distribute to each Lender not later than one Business Day after the Agent’s receipt of good funds, determined in accordance with the Agent’s customary practices, such Lender’s pro rata share of payments received by the Agent for the account of the Lenders except as otherwise expressly provided herein or in any of the other Loan Documents.  Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, each payment by the Borrower hereunder shall be applied in accordance with §2.13(d).

(b)If in the opinion of the Agent the distribution of any amount received by it in such capacity hereunder, under the Notes or under any of the other Loan Documents might involve it in liability, it may refrain from making such distribution until its right to make such distribution shall have been adjudicated by a court of competent jurisdiction.  If a court of competent jurisdiction shall adjudge that any amount received and distributed by the Agent is to be repaid, each Person to whom any such distribution shall have been made shall either repay to the Agent its proportionate share of the amount so adjudged to be repaid or shall pay over the same in such manner and to such Persons as shall be determined by such court.

	
 
	
§14.6
	
Holders of Notes

.  Subject to the terms of §18, the Agent may deem and treat the payee of any Note as the absolute owner or purchaser thereof for all purposes hereof until it shall have been furnished in writing with a different name by such payee or by a subsequent holder, assignee or transferee.

	
 
	
§14.7
	
Indemnity

.  To the extent that Borrower for any reason fails to indefeasibly pay any amount required under §15 or §16 to be paid by it to the Agent, the Lenders ratably agree hereby to indemnify and hold harmless the Agent from and against any and all claims, actions and suits (whether groundless or otherwise), losses, damages, costs, expenses (including any expenses for which the Agent has not been reimbursed by the Borrower as required by §15), and liabilities of every nature and character arising out of or related to this Agreement, the Notes, or any of the other Loan Documents or the transactions contemplated or evidenced hereby or thereby, or the Agent’s actions taken hereunder or thereunder, except to the extent that any of the same shall be directly caused by the Agent’s willful misconduct or gross negligence as finally determined by a court of competent jurisdiction after the expiration of all applicable appeal periods.  The agreements in this §14.7 shall survive the payment of all amounts payable under the Loan Documents.

	
 
	
§14.8
	
The Agent as Lender

.  In its individual capacity, KeyBank shall have the same obligations and the same rights, powers and privileges in respect to its Commitment and the Loans made by it, and as the holder of any of the Notes as it would have were it not also the Agent.

	
 
	
§14.9
	
Resignation

.  The Agent may resign at any time by giving written notice thereof to the Lenders and the Borrower.  Any such resignation may at the Agent’s option 

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also constitute the Agent’s resignation as the Issuing Lender and the Swing Loan Lender.  Upon any such resignation, the Required Lenders, subject to the terms of §18.1, shall have the right to appoint as a successor Agent and, if applicable, Issuing Lender and Swing Loan Lender, any Lender or any bank whose senior debt obligations are rated not less than “A” or its equivalent by Moody’s or not less than “A” or its equivalent by S&P and which has a net worth of not less than $500,000,000.00.  Unless a Default or Event of Default shall have occurred and be continuing, such successor Agent and, if applicable, Issuing Lender and Swing Loan Lender, shall be reasonably acceptable to the Borrower.  If no successor Agent shall have been appointed and shall have accepted such appointment within ten (10) days after the retiring Agent’s giving of notice of resignation, then the retiring Agent may, on behalf of the Lenders, appoint a successor Agent, which shall be any Lender or any bank whose senior debt obligations are rated not less than “A2” or its equivalent by Moody’s or not less than “A” or its equivalent by S&P and which has a net worth of not less than $500,000,000.00.  Upon the acceptance of any appointment as the Agent and, if applicable, the Issuing Lender and the Swing Loan Lender, hereunder by a successor Agent and, if applicable, Issuing Lender and Swing Loan Lender, such successor Agent and, if applicable, Issuing Lender and Swing Loan Lender, shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent and, if applicable, Issuing Lender and Swing Loan Lender, and the retiring Agent and, if applicable, Issuing Lender and Swing Loan Lender, shall be discharged from its duties and obligations hereunder as the Agent and, if applicable, the Issuing Lender and the Swing Loan Lender.  After any retiring Agent’s resignation, the provisions of this Agreement and the other Loan Documents shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as the Agent, the Issuing Lender and the Swing Loan Lender.  If the resigning Agent shall also resign as the Issuing Lender, such successor Agent shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or shall make other arrangements satisfactory to the current Issuing Lender, in either case, to assume effectively the obligations of the current Agent with respect to such Letters of Credit.  Upon any change in the Agent under this Agreement, the resigning Agent shall execute such assignments of and amendments to the Loan Documents as may be necessary to substitute the successor Agent for the resigning Agent.

	
 
	
§14.10
	
Duties in the Case of Enforcement

.  In case one or more Events of Default have occurred and shall be continuing, and whether or not acceleration of the Obligations shall have occurred, the Agent may and, if (a) so requested by the Required Lenders and (b) the Lenders have provided to the Agent such additional indemnities and assurances in accordance with their respective Commitment Percentages against expenses and liabilities as the Agent may reasonably request, shall proceed to exercise all or any legal and equitable and other rights or remedies as it may have; provided, however, that unless and until the Agent shall have received such directions, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem to be in the best interests of the Lenders.  Without limiting the generality of 

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the foregoing, if the Agent reasonably determines payment is in the best interest of all the Lenders, the Agent may without the approval of the Lenders pay taxes and insurance premiums and spend money for maintenance, repairs or other expenses which may be necessary to be incurred, and the Agent shall promptly thereafter notify the Lenders of such action.  Each Lender shall, within thirty (30) days of request therefor, pay to the Agent its Commitment Percentage of the reasonable costs incurred by the Agent in taking any such actions hereunder to the extent that such costs shall not be promptly reimbursed to the Agent by the Borrower or the Guarantors or out of the Collateral within such period.  The Required Lenders may direct the Agent in writing as to the method and the extent of any such exercise, the Lenders hereby agreeing to indemnify and hold the Agent harmless in accordance with their respective Commitment Percentages from all liabilities incurred in respect of all actions taken or omitted in accordance with such directions, provided that the Agent need not comply with any such direction to the extent that the Agent reasonably believes the Agent’s compliance with such direction to be unlawful in any applicable jurisdiction or commercially unreasonable under the UCC as enacted in any applicable jurisdiction.

	
 
	
§14.11
	
Request for Agent Action

.  The Agent and the Lenders acknowledge that in the ordinary course of business of the Borrower, (a) a Mortgaged Property may be subject to a Taking, or (b) the Borrower or any Subsidiary Guarantor may desire to enter into easements or other agreements affecting the Mortgaged Properties, or take other actions or enter into other agreements in the ordinary course of business (including, without limitation, Leases) which similarly require the consent, approval or agreement of the Agent.  In connection with the foregoing, the Lenders hereby expressly authorize the Agent to (w) execute and deliver to the Borrower and the Subsidiary Guarantors Subordination, Attornment and Non-Disturbance Agreements with any tenant under a Lease upon such terms as the Agent in its good faith judgment determines are appropriate (the Agent in the exercise of its good faith judgment may agree to allow some or all of the casualty, condemnation, restoration or other provisions of the applicable Lease to control over the applicable provisions of the Loan Documents), (x) execute releases of liens in connection with any Taking, (y) execute consents or subordinations in form and substance satisfactory to the Agent in connection with any easements or agreements affecting the Mortgaged Property, or (z) execute consents, approvals, or other agreements in form and substance satisfactory to the Agent in connection with such other actions or agreements as may be necessary in the ordinary course of the Borrower’s business.

	
 
	
§14.12
	
Bankruptcy

.  In the event a bankruptcy or other insolvency proceeding is commenced by or against the Borrower or any Guarantor with respect to the Obligations, the Agent shall have the sole and exclusive right to file and pursue a joint proof claim on behalf of all Lenders.  Any votes with respect to such claims or otherwise with respect to such proceedings shall be subject to the vote of the Required Lenders or all of the Lenders as required by this Agreement.  Each Lender irrevocably waives its right to file or pursue a separate proof of claim in any such proceedings unless the Agent fails to file such claim within thirty (30) days after 

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receipt of written notice from the Lenders requesting that the Agent file such proof of claim.

	
 
	
§14.13
	
Reliance by the Agent

.  The Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by an Authorized Officer.  The Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of a Loan, that by its terms must be fulfilled to the satisfaction of a Lender, the Agent may presume that such condition is satisfactory to such Lender unless the Agent shall have received notice to the contrary from such Lender prior to the making of such Loan.  The Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

	
 
	
§14.14
	
Approvals

.  If consent is required for some action under this Agreement, or except as otherwise provided herein an approval of the Lenders, the Required Lenders, the Required Revolving Credit Lenders or the Required Term Loan Lenders is required or permitted under this Agreement, each Lender agrees to give the Agent, within ten (10) days of receipt of the request for action from the Agent together with all reasonably requested information related thereto (or such lesser period of time required by the terms of the Loan Documents), notice in writing of approval or disapproval (collectively, “Directions”) in respect of any action requested or proposed in writing pursuant to the terms hereof.  To the extent that any Lender does not approve any recommendation of the Agent, such Lender shall in such notice to the Agent describe the actions that would be acceptable to such Lender.  If consent is required for the requested action, any Lender’s failure to respond to a request for Directions within the required time period shall be deemed to constitute a Direction to take such requested action.  In the event that any recommendation is not approved by the requisite number of Lenders and a subsequent approval on the same subject matter is requested by the Agent, then for the purposes of this paragraph each Lender shall be required to respond to a request for Directions within five (5) Business Days of receipt of such request.  The Agent and each Lender shall be entitled to assume that any officer of the other Lenders delivering any notice, consent, certificate or other writing is authorized to give such notice, consent, certificate or other writing unless the Agent and such other Lenders have otherwise been notified in writing.

	
 
	
§14.15
	
The Borrower Not Beneficiary

.  Except for the provisions of §14.9 relating to the appointment of a successor Agent, the provisions of this §14 are solely for the benefit of the Agent and the Lenders, may not be enforced by the Borrower or any Guarantor, and except for the provisions of §14.9, may be modified or waived without the approval or consent of the Borrower.

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§14.16
	
Reliance on Hedge Provider

.  For purposes of applying payments received in accordance with §§12.1, 12.5, 12.6 or any other provision of the Loan Documents, the Agent shall be entitled to rely upon the trustee, paying agent or other similar representative (each, a “Representative”) or, in the absence of such a Representative, upon the holder of the Hedge Obligations for a determination (which each holder of the Hedge Obligations agrees (or shall agree) to provide upon request of the Agent) of the outstanding Hedge Obligations owed to the holder thereof.  Unless it has actual knowledge (including by way of written notice from such holder) to the contrary, the Agent, in acting hereunder, shall be entitled to assume that no Hedge Obligations are outstanding.

	
 
	
§14.17
	
Erroneous Payments

.

(a)If the Agent (x) notifies a Lender, Issuing Lender or any Person who has received funds on behalf of a Lender or Issuing Lender (any such Lender, Issuing Lender or other recipient (and each of their respective successors and assigns, a “Payment Recipient”) that the Agent has determined in its sole discretion (whether or not after receipt of any notice under immediately succeeding clause (b)) that any funds (as set forth in such notice from the Agent) received by such Payment Recipient from the Agent or any of its Affiliates were erroneously or mistakenly transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, Issuing Lender or other Payment Recipient on its behalf)  (any such funds, whether transmitted or received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an “Erroneous Payment”) and (y) demands in writing the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Agent pending its return or repayment as contemplated below in this §14.17 and held in trust for the benefit of the Agent, and such Lender or Issuing Lender shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two (2) Business Days thereafter (or such later date as the Agent may, in its sole discretion, specify in writing) return to the Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon  (except to the extent waived in writing by the Agent) in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Agent in same day funds at the greater of the Federal Funds Effective Rate and a rate determined by the Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Agent to any Payment Recipient under this clause (a) shall be conclusive, absent manifest error. 

(b)Without limiting immediately preceding clause (a), each Lender or Issuing Lender, or any Person who has received funds on behalf of a Lender or Issuing Lender (and each of their respective successors and assigns), hereby further agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in this Agreement or in a notice of payment, prepayment or repayment sent by the Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of 

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payment, prepayment or repayment sent by the Agent (or any of its Affiliates), or (z) that such Lender, Issuing Lender or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part), then in each such case:

(i)it acknowledges and agrees that (A) in the case of immediately preceding clauses (x) or (y), an error and mistake shall be presumed to have been made (absent written confirmation from the Agent to the contrary) or (B) an error and mistake has been made (in the case of immediately preceding clause (z)), in each case, with respect to such payment, prepayment or repayment; and

(ii)such Lender or Issuing Lender shall use commercially reasonable efforts to (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one Business Day of its knowledge of the occurrence of any of the circumstances described in immediately preceding clauses (x), (y) and (z)) notify the Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Agent pursuant to this §14.17(b).

For the avoidance of doubt, the failure to deliver a notice to the Agent pursuant to this §14.17(b) shall not have any effect on a Payment Recipient’s obligations pursuant to Section §14.17(a) or on whether or not an Erroneous Payment has been made.

 

(c)Each Lender or Issuing Lender hereby authorizes the Agent to set off, net and apply any and all amounts at any time owing to such Lender or Issuing Lender under any Loan Document, or otherwise payable or distributable by the Agent to such Lender or Issuing Lender from any source, against any amount due to the Agent under immediately preceding clause (a) or under the indemnification provisions of this Agreement. 

(d)(i) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Agent for any reason, after demand therefor in accordance with immediately preceding clause (a), from any Lender that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf)  (such unrecovered amount, an “Erroneous Payment Return Deficiency”), upon the Agent’s notice to such Lender at any time, then effective immediately (with the consideration therefor being acknowledged by the parties hereto), (A) such Lender  shall be deemed to have assigned its Loans (but not its Commitments) of the relevant class of Loans with respect to which such Erroneous Payment was made (the “Erroneous Payment Impacted Class”) in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Agent may specify) (such assignment of the Loans (but not Commitments) of the Erroneous Payment  Impacted Class, the “Erroneous Payment Deficiency Assignment”) (on a cashless basis and such amount calculated) at par plus any accrued and unpaid interest (with the assignment fee to be waived by the Agent in such instance)), and is hereby (together with the Borrower) deemed to execute and deliver an Assignment and Acceptance Agreement (or, to the extent applicable, an agreement incorporating an Assignment and Acceptance Agreement by reference pursuant to an approved electronic platform as to which the Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and such Lender shall deliver any Notes evidencing such Loans to the Borrower or the Agent (but the failure of such Person to delivery any such Notes shall not affect the effectiveness of the foregoing assignment), (B) the Agent as the 

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assignee Lender shall be deemed to have acquired the Erroneous Payment Deficiency Assignment, (C) upon such deemed acquisition, the Agent as the assignee Lender shall become a Lender, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender  shall cease to be a Lender, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement and its applicable Commitments which shall survive as to such assigning Lender, (D) the Agent and the Borrower shall each be deemed to have waived any consents required under this Agreement to any such Erroneous Payment Deficiency Assignment, and (E) the Agent will reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender and such Commitments shall remain available in accordance with the terms of this Agreement. 

(ii)Subject to §18 (but excluding, in all events, any assignment consent or approval requirements (whether from the Borrower or otherwise)), the Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender shall be reduced by the net proceeds of the sale of such Loan (or portion thereof), and the Agent shall retain all other rights, remedies and claims against such Lender (and/or against any recipient that receives funds on its respective behalf). In addition, an Erroneous Payment Return Deficiency owing by the applicable Lender (x) shall be reduced by the proceeds of prepayments or repayments of principal and interest, or other distribution in respect of principal and interest, received by the Agent on or with respect to any such Loans acquired from such Lender pursuant to an Erroneous Payment Deficiency Assignment (to the extent that any such Loans are then owned by the Agent) and (y) may, in the sole discretion of the Agent, be reduced by any amount specified by the Agent in writing to the applicable Lender from time to time.

 

(e)The parties hereto agree that (x) irrespective of whether the Agent may be equitably subrogated, in the event that an Erroneous Payment (or portion thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for any reason, the Agent shall be subrogated to all the rights and interests of such Payment Recipient (and, in the case of any Payment Recipient who has received funds on behalf of a Lender or Issuing Lender, to the rights and interests of such Lender or Issuing Lender, as the case may be) under the Loan Documents with respect to such amount (the “Erroneous Payment Subrogation Rights”) (provided that the Borrower’s or Guarantor’s Obligations under the Loan Documents in respect of the Erroneous Payment Subrogation Rights shall not be duplicative of such Obligations in respect of Loans that have been assigned to the Agent under an Erroneous Payment Deficiency Assignment) and (y) an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower or any Guarantor; provided that this §14.17 shall not be interpreted to increase (or accelerate the due date for), or have the effect of increasing (or accelerating the due date for), the Obligations of the Borrower relative to the amount (and/or timing for payment) of the Obligations that would have been payable had such Erroneous Payment not been made by the Agent; provided, further, that for the avoidance of doubt, immediately preceding clauses (x) and (y) shall not apply to the extent any such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Agent from the Borrower for the purpose of making such Erroneous Payment.

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(f)To the extent permitted by applicable law, no Payment Recipient shall assert any right or claim to  an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Agent for the return of any Erroneous Payment received, including without limitation waiver of any defense based on “discharge for value” or any similar doctrine. 

(g)Each party’s obligations, agreements and waivers under this §14.17 shall survive the resignation or replacement of the Agent, any transfer of rights or obligations by, or the replacement of, a Lender or Issuing Lender, the termination of the Commitments and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.

	
§15.
	
EXPENSES

.

The Borrower agrees to pay (a) the reasonable costs of producing and reproducing this Agreement, the other Loan Documents and the other agreements and instruments mentioned herein, (b) any Indemnified Taxes (including any interest and penalties in respect thereto) payable by the Agent or any of the Lenders, including any recording, mortgage, documentary or intangibles taxes in connection with the Loan Documents, or other taxes payable on or with respect to the transactions contemplated by this Agreement, including any such taxes payable by the Agent or any of the Lenders after the Closing Date (the Borrower hereby agreeing to indemnify the Agent and each Lender with respect thereto), (c) all title insurance premiums, engineer’s fees, environmental reviews and reasonable fees, expenses and disbursements of the counsel to the Agent and Arranger and any local counsel to the Agent incurred in connection with the preparation, administration, or interpretation of the Loan Documents and other instruments mentioned herein, and amendments, modifications, approvals, consents or waivers hereto or hereunder, (d) the out-of-pocket fees, costs, expenses and disbursements of the Agent and Arranger incurred in connection with the syndication and/or participation (by KeyBank) of the Loans, (e) all other reasonable out of pocket fees, expenses and disbursements of the Agent incurred by the Agent in connection with the preparation, administration or interpretation of the Loan Documents and other instruments mentioned herein, the addition or substitution of additional Collateral, the release of Collateral, the making of each advance hereunder, the issuance of Letters of Credit, and the syndication of the Commitments pursuant to §18 (without duplication of those items addressed in clause (d) above), (f) all out‐of‐pocket expenses (including attorneys’ fees and costs, and fees and costs of appraisers, engineers, investment bankers or other experts retained by the Agent) incurred by any Lender or the Agent in connection with (i) the enforcement of or preservation of rights under any of the Loan Documents against the Borrower or the Guarantors or the administration thereof after the occurrence of a Default or Event of Default or any other workout of the Loan Documents and (ii) any litigation, proceeding or dispute whether arising hereunder or otherwise, in any way related to the Agent’s, or any of the Lenders’ relationship with the Borrower or the Guarantors (provided that any attorneys’ fees and costs pursuant to this §15(f) with respect to counsel separate from that retained by Agent (including local counsel) shall be limited to those incurred by one primary counsel retained by the Required Lenders), (g) all reasonable fees, expenses and disbursements of the Agent incurred in connection with UCC searches, UCC filings, title rundowns, title searches or mortgage recordings, (h) all reasonable out-of-pocket fees, expenses and disbursements (including reasonable attorneys’ fees and costs) which may be incurred by KeyBank in connection with the execution and delivery of this Agreement and the 

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other Loan Documents (without duplication of any of the items listed above), and (i) all expenses relating to the use of Intralinks, SyndTrak or any other similar system for the dissemination and sharing of documents and information in connection with the Loans.  The covenants of this §15 shall survive the repayment of the Loans and the termination of the obligations of the Lenders hereunder.

	
§16.
	
INDEMNIFICATION

.

The Borrower agrees to indemnify and hold harmless the Agent, the Lenders, the Arranger, their respective Affiliates and Persons who control the Agent, or any Lender or the Arranger, and each director, officer, employee, agent and attorney of each of the foregoing Persons, against any and all claims, actions and suits, whether groundless or otherwise, and from and against any and all liabilities, losses, damages and expenses of every nature and character arising out of or relating to this Agreement or any of the other Loan Documents or the transactions contemplated hereby and thereby including, without limitation, (a) any and all claims for brokerage, leasing, finders or similar fees which may be made relating to the Mortgaged Properties, any other Real Estate or the Loans, (b) any condition of the Mortgaged Properties or any other Real Estate, (c) any actual or proposed use by the Borrower of the proceeds of any of the Loans or Letters of Credit, (d) any actual or alleged infringement of any patent, copyright, trademark, service mark or similar right of the Borrower, any Guarantor or any of their respective Subsidiaries, (e) the Borrower and the Guarantors entering into or performing this Agreement or any of the other Loan Documents, (f) any actual or alleged violation of any law, ordinance, code, order, rule, regulation, approval, consent, permit or license relating to the Mortgaged Properties or any other Real Estate, (g) with respect to the Borrower, the Guarantors and their respective Subsidiaries and their respective properties and assets, the violation of any Environmental Law, the Release or threatened Release of any Hazardous Substances or any action, suit, proceeding or investigation brought or threatened with respect to any Hazardous Substances (including, but not limited to, claims with respect to wrongful death, personal injury, nuisance or damage to property), and (h) any use of Intralinks, SyndTrak or any other system for the dissemination and sharing of documents and information, in each case including, without limitation, the reasonable fees and disbursements of counsel incurred in connection with any such investigation, litigation or other proceeding; provided, however, that the Borrower shall not be obligated under this §16 to indemnify any Person for liabilities arising from such Person’s own gross negligence or willful misconduct as determined by a court of competent jurisdiction after the exhaustion of all applicable appeal periods.  In litigation, or the preparation therefor, the Lenders and the Agent shall be entitled to select a single law firm as their own counsel and an additional single local counsel in each applicable local jurisdiction for all such parties (and, to the extent reasonably necessary in the case of an actual or perceived conflict of interest, one additional counsel) and, in addition to the foregoing indemnity, the Borrower agrees to pay promptly the reasonable fees and expenses of such counsel.  No person indemnified hereunder shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.  If, and to the extent that the obligations of the Borrower under this §16 are unenforceable for any reason, the Borrower hereby agrees to make the maximum contribution to the payment in satisfaction of such obligations which is permissible under applicable law.  The provisions of this §16 shall survive the repayment of the Loans and the termination of the obligations of the Lenders hereunder.

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§17.
	
SURVIVAL OF COVENANTS, ETC.

 

All covenants, agreements, representations and warranties made herein, in the Notes, in any of the other Loan Documents or in any documents or other papers delivered by or on behalf of the Borrower or the Guarantors or any of their respective Subsidiaries pursuant hereto or thereto shall be deemed to have been relied upon by the Lenders and the Agent, notwithstanding any investigation heretofore or hereafter made by any of them, and shall survive the making by the Lenders of any of the Loans, as herein contemplated, and shall continue in full force and effect so long as any amount due under this Agreement or the Notes or any of the other Loan Documents remains outstanding or any Letters of Credit remain outstanding or any Lender has any obligation to make any Loans or issue any Letters of Credit.  The indemnification obligations of the Borrower provided herein and in the other Loan Documents shall survive the full repayment of amounts due and the termination of the obligations of the Lenders hereunder and thereunder to the extent provided herein and therein.  All statements contained in any certificate delivered to any Lender or the Agent at any time by or on behalf of the Borrower, any Guarantor or any of their respective Subsidiaries pursuant hereto or in connection with the transactions contemplated hereby shall constitute representations and warranties by such Person hereunder.

	
§18.
	
ASSIGNMENT AND PARTICIPATION

.

	
 
	
§18.1
	
Conditions to Assignment by Lenders

.  Except as provided herein, each Lender may assign to one or more banks or other entities (but not to any natural person) all or a portion of its interests, rights and obligations under this Agreement (including all or a portion of its Commitment Percentage and Commitment and the same portion of the Loans at the time owing to it and the Notes held by it); provided that (a) the Agent, the Issuing Lender and, so long as no Default or Event of Default exists hereunder, the Borrower shall have each given its prior written consent to such assignment, which consent shall not be unreasonably withheld or delayed, and if the Borrower does not respond to any such request for consent within five (5) Business Days, the Borrower shall be deemed to have consented (provided that such consent shall not be required for any assignment to another Lender, to a Related Fund, to a lender or an Affiliate of a Lender which controls, is controlled by or is under common control with the assigning Lender or to a wholly-owned Subsidiary of such Lender), (b) each such assignment shall be of a constant, and not a varying, percentage of all the assigning Lender’s rights and obligations under this Agreement with respect to the Revolving Credit Commitment in the event an interest in the Revolving Credit Loans is assigned, or of a constant, and not a varying, percentage of all the assigning Lender’s rights and obligations under this Agreement with respect to the Term Loans and the Term Loan Commitment, if any, in the event an interest in the Term Loans is assigned, (c) the parties to such assignment shall execute and deliver to the Agent, for recording in the Register (as hereinafter defined) an assignment and acceptance agreement in the form of Exhibit H attached hereto (an “Assignment and Acceptance Agreement”), together with any Notes subject to such assignment, (d) in no event shall any assignment be to any Person controlling, controlled by or under common control with, or which is not otherwise free from influence or control by the Borrower or any Guarantor or be to a Defaulting Lender or an Affiliate of a Defaulting Lender, (e) such assignee 

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of a portion of the Revolving Credit Loans shall have a net worth or unfunded commitment as of the date of such assignment of not less than $100,000,000.00 (unless otherwise approved by the Agent and, so long as no Default or Event of Default exists hereunder, the Borrower), (f) such assignee shall acquire an interest in the Loans of not less than $5,000,000.00 and integral multiples of $1,000,000.00 in excess thereof (or if less, the remaining Loans of the assignor), unless waived by the Agent, and so long as no Default or Event of Default exists hereunder, the Borrower and (g) if such assignment is less than the assigning Lender’s entire Commitment, the assigning Lender shall retain an interest in the Loans of not less than $5,000,000.00.  Upon execution, delivery, acceptance and recording of such Assignment and Acceptance Agreement, (i) the assignee thereunder shall be a party hereto and all other Loan Documents executed by the Lenders and, to the extent provided in such Assignment and Acceptance Agreement, have the rights and obligations of a Lender hereunder, (ii) the assigning Lender shall, upon payment to the Agent of the registration fee referred to in §18.2, be released from its obligations under this Agreement arising after the effective date of such assignment with respect to the assigned portion of its interests, rights and obligations under this Agreement, and (iii) the Agent may unilaterally amend Schedule 1.1 to reflect such assignment.  In connection with each assignment, the assignee shall represent and warrant to the Agent, the assignor and each other Lender as to whether such assignee is controlling, controlled by, under common control with or is not otherwise free from influence or control by, the Borrower and/or any Guarantor and whether such assignee is a Defaulting Lender or an Affiliate of a Defaulting Lender.  In connection with any assignment of rights and obligations of any Defaulting Lender, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or actions, including funding, with the consent of the Borrower and the Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Agent or any Lender hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of Credit and Swing Loans in accordance with its Commitment Percentage.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

	
 
	
§18.2
	
Register

.  The Agent, acting for this purpose as a non-fiduciary agent for Borrower, shall maintain on behalf of the Borrower a copy of each assignment delivered to it and a register or similar list (the “Register”) for the recordation of the names and addresses of the Lenders and the Commitment Percentages of and principal amount of the Loans owing to the Lenders from time to time.  The entries in the Register 

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shall be conclusive, in the absence of manifest error, and the Borrower, the Guarantors, the Agent and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection by the Borrower and the Lenders at any reasonable time and from time to time upon reasonable prior notice.  Upon each such recordation, the assigning Lender agrees to pay to the Agent a registration fee in the sum of $3,500.00.

	
 
	
§18.3
	
New Notes

.  Upon its receipt of an Assignment and Acceptance Agreement executed by the parties to such assignment, together with each Note subject to such assignment, the Agent shall record the information contained therein in the Register.  Within five (5) Business Days after receipt of notice of such assignment from the Agent, the Borrower, at its own expense, shall execute and deliver to the Agent, in exchange for each surrendered Note, a new Note to the order of such assignee in an amount equal to the amount assigned to such assignee pursuant to such Assignment and Acceptance Agreement and, if the assigning Lender has retained some portion of its obligations hereunder, a new Note to the order of the assigning Lender in an amount equal to the amount retained by it hereunder.  Such new Notes shall provide that they are replacements for the surrendered Notes, shall be in an aggregate principal amount equal to the aggregate principal amount of the surrendered Notes, shall be dated the effective date of such Assignment and Acceptance Agreement and shall otherwise be in substantially the form of the assigned Notes.  The surrendered Notes shall be canceled and returned to the Borrower.

	
 
	
§18.4
	
Participations

.  Each Lender may, without the consent of Agent or Borrower, sell participations to one or more Lenders or other entities (but not to any natural person) in all or a portion of such Lender’s rights and obligations under this Agreement and the other Loan Documents; provided that (a) any such sale or participation shall not affect the rights and duties of the selling Lender hereunder, (b) such participation shall not entitle such participant to any rights or privileges under this Agreement or any Loan Documents, including without limitation, rights granted to the Lenders under §§4.7, 4.8, 4.9 and 13, (c) such participation shall not entitle the participant to the right to approve waivers, amendments or modifications, (d) such participant shall have no direct rights against the Borrower, (e) such sale is effected in accordance with all applicable laws, and (f) such participant shall not be a Person controlling, controlled by or under common control with, or which is not otherwise free from influence or control by the Borrower and/or any Guarantor and shall not be a Defaulting Lender or an Affiliate of a Defaulting Lender; provided, however, such Lender may agree with the participant that it will not, without the consent of the participant, agree to (i) increase, or extend the term or extend the time or waive any requirement for the reduction or termination of, such Lender’s Commitment, (ii) extend the date fixed for the payment of principal of or interest on the Loans or portions thereof owing to such Lender (other than pursuant to an extension of the Maturity Date pursuant to §2.12), (iii) reduce the amount of any such payment of principal, (iv) reduce the rate at which interest is payable thereon or (v) release any Guarantor or any material Collateral (except as otherwise 

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permitted under this Agreement).  Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any participant or any information relating to a participant’s interest in any Commitments, Loans, or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Loan, or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register.

	
 
	
§18.5
	
Pledge by Lender

.  Any Lender may at any time pledge all or any portion of its interest and rights under this Agreement (including all or any portion of its Note) to any of the twelve Federal Reserve Banks organized under Section 4 of the Federal Reserve Act, 12 U.S.C.  §341, any other central bank having jurisdiction over such Lender, or to such other Person as the Agent may approve to secure obligations of such Lender.  No such pledge or the enforcement thereof shall release the pledgor Lender from its obligations hereunder or under any of the other Loan Documents.

	
 
	
§18.6
	
No Assignment by the Borrower

.  The Borrower shall not assign or transfer any of its rights or obligations under this Agreement or any of the other Loan Documents without the prior written consent of each of the Lenders.

	
 
	
§18.7
	
Disclosure

.  The Borrower agrees to promptly cooperate with any Lender in connection with any proposed assignment or participation of all or any portion of its Commitment.  The Borrower agrees that in addition to disclosures made in accordance with standard banking practices any Lender may disclose information obtained by such Lender pursuant to this Agreement to assignees or participants and potential assignees or participants hereunder.  Each Lender agrees for itself that it shall use reasonable efforts in accordance with its customary procedures to hold confidential all non-public information obtained from the Borrower or any Guarantor that has been identified in writing as confidential by any of them, and shall use reasonable efforts in accordance with its customary procedures to not disclose such information to any other Person, it being understood and agreed that, notwithstanding the foregoing, a Lender may make (a) disclosures to its participants (provided such Persons are advised of the provisions of this §18.7), (b) disclosures to its directors, officers, employees, Affiliates, accountants, appraisers, legal counsel and other professional advisors of such Lender (provided that such Persons who are not employees of such Lender are advised of the 

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provision of this §18.7), (c) disclosures customarily provided or reasonably required by any potential or actual bona fide assignee, transferee or participant or their respective directors, officers, employees, Affiliates, accountants, appraisers, legal counsel and other professional advisors in connection with a potential or actual assignment or transfer by such Lender of any Loans or any participations therein (provided such Persons are advised of the provisions of this §18.7), (d) disclosures to bank regulatory authorities or self-regulatory bodies with jurisdiction over such Lender, or (e) disclosures required or requested by any other Governmental Authority or representative thereof or pursuant to legal process; provided that, unless specifically prohibited by applicable law or court order, each Lender shall notify the Borrower of any request by any Governmental Authority or representative thereof prior to disclosure (other than any such request in connection with any examination of such Lender by such Governmental Authority) for disclosure of any such non-public information prior to disclosure of such information.  In addition, each Lender may make disclosure of such information to any contractual counterparty in swap agreements or such contractual counterparty’s professional advisors (so long as such contractual counterparty or professional advisors agree to be bound by the provisions of this §18.7).  In addition, the Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Agent and the Lenders in connection with the administration of this Agreement, the other Loan Documents, and the Commitments.  Non-public information shall not include any information which is or subsequently becomes publicly available other than as a result of a disclosure of such information by a Lender, or prior to the delivery to such Lender is within the possession of such Lender if such information is not known by such Lender to be subject to another confidentiality agreement with or other obligations of secrecy to the Borrower or the Guarantors, or is disclosed with the prior approval of the Borrower.  Nothing herein shall prohibit the disclosure of non-public information to the extent necessary to enforce the Loan Documents.

	
 
	
§18.8
	
Mandatory Assignment

.  In the event the Borrower requests that certain amendments, modifications or waivers be made to this Agreement or any of the other Loan Documents which request requires approval of the Required Lenders, Required Revolving Credit Lenders, Required Term Loan lenders, all of the Lenders or all of the Lenders directly affected thereby but is not approved by one or more of the Lenders (any such non-consenting Lender shall hereafter be referred to as the “Non-Consenting Lender”), then, within thirty (30) Business Days after the Borrower’s receipt of notice of such disapproval by such Non-Consenting Lender, the Borrower shall have the right as to such Non-Consenting Lender, to be exercised by delivery of written notice delivered to the Agent and the Non-Consenting Lender within thirty (30) Business Days of receipt of such notice, to elect to cause the Non-Consenting Lender to transfer its Loans and Commitment.  The Agent shall promptly notify the remaining Lenders that each of such Lenders shall have the right, but not the obligation, to acquire a portion of the Loans and Commitment, pro rata based upon their relevant Commitment Percentages, of the Non-Consenting Lender (or if any of such Lenders does not elect to purchase its 

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pro rata share, then to such remaining Lenders in such proportion as approved by the Agent).  In the event that the Lenders do not elect to acquire all of the Non-Consenting Lender’s Loans and Commitment, then the Agent shall endeavor to find a new Lender or Lenders to acquire such remaining Loans and Commitment.  Upon any such purchase of the Loans and Commitment of the Non-Consenting Lender, the Non-Consenting Lender’s interests in the Obligations and its rights hereunder and under the Loan Documents shall terminate at the date of purchase, and the Non-Consenting Lender shall promptly execute and deliver any and all documents reasonably requested by the Agent to surrender and transfer such interest, including, without limitation, an Assignment and Acceptance Agreement and such Non-Consenting Lender’s original Note.  Notwithstanding anything in this §18.8 to the contrary, any Lender or other Lender assignee acquiring some or all of the assigned Loans and Commitment of the Non-Consenting Lender must consent to the proposed amendment, modification or waiver.  The purchase price for the Non-Consenting Lender’s Loans and Commitment shall equal any and all amounts outstanding and owed by the Borrower to the Non-Consenting Lender, including principal and all accrued and unpaid interest or fees, plus any applicable amounts payable pursuant to §4.7 which would be owed to such Non-Consenting Lender if the Loans were to be repaid in full on the date of such purchase of the Non-Consenting Lender’s Loans and Commitment (provided that the Borrower may pay to such Non-Consenting Lender any interest, fees or other amounts (other than principal) owing to such Non-Consenting Lender).

	
 
	
§18.9
	
Amendments to Loan Documents

.  Upon any such assignment, the Borrower and the Guarantors shall, upon the request of the Agent, enter into such documents as may be reasonably required by the Agent to modify the Loan Documents to reflect such assignment.

	
 
	
§18.10
	
Titled Agents

.  The Titled Agents shall not have any additional rights or obligations under the Loan Documents, except for those rights, if any, as a Lender.

	
§19.
	
NOTICES; EFFECTIVENESS; ELECTRONIC COMMUNICATIONS

.

(a)Each notice, demand, election or request provided for or permitted to be given pursuant to this Agreement (hereinafter in this §19 referred to as “Notice”), but specifically excluding to the maximum extent permitted by law any notices of the institution or commencement of foreclosure proceedings, must be in writing and shall be deemed to have been properly given or served by personal delivery or by sending same by overnight courier or by depositing same in the United States Mail, postpaid and registered or certified, return receipt requested, or as expressly permitted herein, by telecopy (with a copy sent by overnight mail) and addressed as follows:

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If to the Agent or KeyBank:

KeyBank National Association
1200 Abernathy Road, N.E., Suite 1550
Atlanta, Georgia  30328
Attn:  Tayven Hike
Telecopy No.:  (770) 510-2195

and

KeyBank National Association
1200 Abernathy Road, N.E., Suite 1550
Atlanta, Georgia  30328
Attn:  Shelly West
Telecopy No.:  (770) 510-2195

and

Dentons US LLP
Suite 5300
303 Peachtree Street, N.E.
Atlanta, Georgia  30308
Attn:  Suneet Sidhu, Esq.
Telecopy No.:  (404) 527-4661

If to the Borrower:

GTJ Realty, LP
1399 Franklin Avenue, Suite 100
Garden City, New York  11530
Attn:  Paul Cooper
Telecopy No.:  516-693-5501

With a copy to:

Schiff Hardin LLP
1301 Avenue of the Americas, 42nd Floor  
New York, New York  10019
Attn:  Christine A. McGuinness, Esq.
Telecopy No.:  (212) 753-5044

to any other Lender which is a party hereto, at the address for such Lender set forth on Schedule 1.1 hereto, and to any Lender which may hereafter become a party to this Agreement, at such address as may be designated by such Lender.  Each Notice shall be effective upon being personally delivered or upon being sent by overnight courier or upon being deposited in the United States Mail as aforesaid, or if transmitted by telecopy is permitted, upon being sent and confirmation of receipt.  The time period in which a response to such Notice must be given or any action taken with respect thereto (if any), however, shall commence to run from the date of receipt 

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if personally delivered or sent by overnight courier, or if so deposited in the United States Mail, the earlier of three (3) Business Days following such deposit or the date of receipt as disclosed on the return receipt.  Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given shall be deemed to be receipt of the Notice sent.  By giving at least fifteen (15) days prior Notice thereof, the Borrower, a Lender or the Agent shall have the right from time to time and at any time during the term of this Agreement to change their respective addresses and each shall have the right to specify as its address any other address within the United States of America.

(b)Loan Documents and notices under the Loan Documents may, with Agent’s approval, be transmitted and/or signed by facsimile and by signatures delivered in “PDF” format by electronic mail.  The effectiveness of any such documents and signatures shall, subject to applicable law, have the same force and effect as an original copy with manual signatures and shall be binding on the Borrower, the Guarantors, Agent and Lenders.  Agent may also require that any such documents and signature delivered by facsimile or  “PDF” format by electronic mail be confirmed by a manually-signed original thereof; provided, however, that the failure to request or deliver any such manually-signed original shall not affect the effectiveness of any facsimile or “PDF” document or signature.

(c)Notices and other communications to the Agent, the Lenders and the Issuing Lender hereunder may be delivered or furnished by electronic communication (including e‐mail and Internet or intranet websites) pursuant to procedures approved by the Agent, provided that the foregoing shall not apply to notices to any Lender or Issuing Lender pursuant to §2 if such Lender or Issuing Lender, as applicable, has notified the Agent that it is incapable of receiving notices under such Section by electronic communication.  The Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.  Unless the Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e‐mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, e‐mail or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

	
§20.
	
RELATIONSHIP

.

Neither the Agent nor any Lender has any fiduciary relationship with or fiduciary duty to the Borrower, any Guarantor or their respective Subsidiaries arising out of or in connection with this Agreement or the other Loan Documents or the transactions contemplated hereunder and thereunder, and the relationship between each Lender and the Agent, and the Borrower is solely that of a lender and borrower, and nothing contained herein or in any of the other Loan Documents 

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shall in any manner be construed as making the parties hereto partners, joint venturers or any other relationship other than lender and borrower.

	
§21.
	
GOVERNING LAW; CONSENT TO JURISDICTION AND SERVICE

.

THIS AGREEMENT AND EACH OF THE OTHER LOAN DOCUMENTS, EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED HEREIN OR THEREIN, SHALL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5- 1401, BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.  THE BORROWER AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS MAY BE BROUGHT IN ANY COURT OF COMPETENT JURISDICTION IN THE STATE OF NEW YORK (INCLUDING ANY FEDERAL COURT SITTING THEREIN).  THE BORROWER FURTHER ACCEPTS, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF SUCH COURTS AND ANY RELATED APPELLATE COURT AND IRREVOCABLY (a) AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY WITH RESPECT TO THIS AGREEMENT AND ANY OF THE OTHER LOAN DOCUMENTS AND (b) WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH A COURT IS AN INCONVENIENT FORUM.  THE BORROWER FURTHER AGREES THAT SERVICE OF PROCESS IN ANY SUCH SUIT MAY BE MADE UPON THE BORROWER BY MAIL AT THE ADDRESS SPECIFIED IN §19.  IN ADDITION TO THE COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL COURT SITTING THEREIN, THE AGENT OR ANY LENDER MAY BRING ACTION(S) FOR ENFORCEMENT ON A NONEXCLUSIVE BASIS WHERE ANY COLLATERAL OR OTHER ASSETS OF THE BORROWER AND THE GUARANTORS EXIST AND THE BORROWER CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURTS AND THE SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON THE BORROWER BY MAIL AT THE ADDRESS SPECIFIED IN §19.

	
§22.
	
HEADINGS

.

The captions in this Agreement are for convenience of reference only and shall not define or limit the provisions hereof.

	
§23.
	
COUNTERPARTS

.

This Agreement and any amendment hereof may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which together shall constitute one instrument.  In proving this Agreement it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom enforcement is sought.

	
§24.
	
ENTIRE AGREEMENT, ETC.

 

This Agreement and the Loan Documents is intended by the parties as the final, complete and exclusive statement of the transactions evidenced by this Agreement and the Loan Documents.  

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All prior or contemporaneous promises, agreements and understandings, whether oral or written, are deemed to be superseded by this Agreement and the Loan Documents, and no party is relying on any promise, agreement or understanding not set forth in this Agreement and the Loan Documents.  Neither this Agreement nor any term hereof may be changed, waived, discharged or terminated, except as provided in §4.15, §18.9 and §27.

	
§25.
	
WAIVER OF JURY TRIAL AND CERTAIN DAMAGE CLAIMS

.

EACH OF THE BORROWER, THE AGENT AND THE LENDERS HEREBY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY NOTE OR ANY OF THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS.  THE BORROWER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES AND TO THE EXTENT PERMITTED BY APPLICABLE LAW, PUNITIVE OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES.  THE BORROWER (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY LENDER OR THE AGENT HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH LENDER OR THE AGENT WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND (B) ACKNOWLEDGES THAT THE AGENT AND THE LENDERS HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS TO WHICH THEY ARE PARTIES BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS CONTAINED IN THIS §25.  THE BORROWER ACKNOWLEDGES THAT IT HAS HAD AN OPPORTUNITY TO REVIEW THIS §25 WITH LEGAL COUNSEL AND THAT THE BORROWER AGREES TO THE FOREGOING AS ITS FREE, KNOWING AND VOLUNTARY ACT.

	
§26.
	
DEALINGS WITH THE BORROWER

.

The Agent, the Lenders and their affiliates may accept deposits from, extend credit to, invest in, act as trustee under indentures of, serve as financial advisor of, and generally engage in any kind of banking, trust or other business with the Borrower, the Guarantors and their respective Subsidiaries or any of their Affiliates regardless of the capacity of the Agent or the Lender hereunder.  The Lenders acknowledge that, pursuant to such activities, KeyBank or its Affiliates may receive information regarding such Persons (including information that may be subject to confidentiality obligations in favor of such Person) and acknowledge that the Agent shall be under no obligation to provide such information to them.  Borrower acknowledges, on behalf of itself and its Affiliates, that the Agent and each of the Lenders and their respective Affiliates may be providing debt financing, equity capital or other services (including financial advisory services) in which Borrower and its Affiliates may have conflicting interests regarding the transactions described herein and otherwise.  Neither the Agent nor any Lender will use confidential information described in §18.7 obtained from Borrower by virtue of the transactions contemplated hereby or its other relationships with Borrower and its Affiliates in connection with the performance by the Agent or such Lender or their respective Affiliates of services for other 

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companies, and neither the Agent nor any Lender nor their Affiliates will furnish any such information to other companies.  Borrower, on behalf of itself and its Affiliates, also acknowledges that neither the Agent nor any Lender has any obligation to use in connection with the transactions contemplated hereby, or to furnish to Borrower, confidential information obtained from other companies.  Borrower, on behalf of itself and its Affiliates, further acknowledges that one or more of the Agent and Lenders and their respective Affiliates may be a full service securities firm and may from time to time effect transactions, for its own or its Affiliates’ account or the account of customers, and hold positions in loans, securities or options on loans or securities of Borrower and its Affiliates.

	
§27.
	
CONSENTS, AMENDMENTS, WAIVERS, ETC.

 

Except as otherwise expressly provided in this Agreement (including, without limitation, §4.15), any consent or approval required or permitted by this Agreement may be given, and any term of this Agreement or of any other instrument related hereto or mentioned herein may be amended, and the performance or observance by the Borrower or the Guarantors of any terms of this Agreement or such other instrument or the continuance of any Default or Event of Default may be waived (either generally or in a particular instance and either retroactively or prospectively) with, but only with, the written consent of the Required Lenders; provided, however, that the Agreement Regarding Fees may be amended or otherwise modified, or rights or privileges thereunder waived, in a writing executed by the parties thereto only.  Notwithstanding the foregoing, none of the following may occur without the written consent of each Lender directly affected thereby:  (a) a reduction in the rate of interest on the Notes; provided, however, that (A) only the consent of the Required Lenders shall be necessary to amend the definition of “Default Rate”, to waive any obligation of the Borrower to pay interest at the Default Rate or to retract the imposition of interest at the Default Rate, (B) only the consent of the Required Lenders shall be necessary to amend any financial covenant hereunder (or any defined term used therein) even if the effect of such amendment would be to reduce the rate of interest on any Loan or Letter of Credit or to reduce any fee payable based on such financial covenant; and (C) in circumstances other than as described in the preceding clauses (A) and (B), (1) only the consent of the Term Loan Lenders shall be necessary to reduce the rate of interest, including the Applicable Margin, on the Term Loans and the Term Loan Notes and (2) only the consent of the Revolving Credit Lenders shall be necessary to reduce the rate of interest, including the Applicable Margin, on the Revolving Credit Loans and the Revolving Credit Notes;  (b) an increase in the amount of the Commitments of the Lenders (except as provided in §2.11 and §18.1); (c) a forgiveness, reduction or waiver of the principal of any unpaid Loan or any interest thereon (other than a reduction or waiver of default interest) or fee payable under the Loan Documents; provided that only the consent of the Term Loan Lenders or the Revolving Credit Lenders, as the case may be, shall be necessary for any such amendment or waiver that on its face only applies to the Term Loans or the Revolving Credit Loans and Revolving Credit Commitments, respectively; (d) a change in the amount of any fee payable to a Lender hereunder; provided that only the consent of the Revolving Credit Lenders shall be necessary for any such amendment or waiver of the fees described in §2.3; (e) the postponement of any date fixed for any payment of principal of or interest on the Loan; provided that only the consent of the Term Loan Lenders or the Revolving Credit Lenders, as the case may be, shall be necessary for any such postponement that on its face only applies to the Term Loans or the Revolving Credit Loans and Revolving Credit Commitments, respectively; (f) an extension of the Term Loan Maturity Date or Revolving Credit Maturity Date (except as provided in §2.12); 

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(g) a change in the manner of distribution of any payments to the Lenders or the Agent; (h) the release of the Borrower, any Guarantor or any Collateral except as otherwise provided in this Agreement; (i) an amendment of the definition of Required Lenders, Required Revolving Credit Lenders, Required Term Loan Lenders or of any requirement for consent by all of the Lenders; (j) any modification to require a Lender to fund a pro rata share of a request for an advance of the Revolving Credit Loan made by the Borrower other than based on its Commitment Percentage; (k) an amendment to this §27; or (l) an amendment of any provision of this Agreement or the Loan Documents which requires the approval of all of the Lenders or the Required Lenders to require a lesser number of Lenders to approve such action.  The provisions of §14 may not be amended without the written consent of the Agent.  Any provision of this Agreement or the Loan Documents which requires the approval of all of the Revolving Credit Lenders or the Required Revolving Credit Lenders may not be amended or waived to require a lesser number of Revolving Credit Lenders to approve such action without the written consent of all of the Revolving Credit Lenders.  Any provision of this Agreement or the Loan Documents which requires the approval of all of the Term Loan Lenders or the Required Term Loan Lenders may not be amended or waived to require a lesser number of Term Loan Lenders to approve such action without the written consent of all of the Term Loan Lenders.  There shall be no amendment, modification or waiver of any provision in the Loan Documents which results in a modification of the conditions to funding with respect to the Revolving Credit Commitment or the Term Loan Commitment without the written consent of the Required Revolving Credit Lenders or the Required Term Loan Lenders, respectively, nor any amendment, modification or waiver that disproportionately affects the Revolving Credit Lenders or the Term Loan Lenders without the approval of the Required Revolving Credit Lenders or the Required Term Loan Lenders, respectively.  There shall be no amendment, modification or waiver of any provision in the Loan Documents with respect to Swing Loans without the consent of the Swing Loan Lender, nor any amendment, modification or waiver of any provision in the Loan Documents with respect to Letters of Credit without the consent of the Issuing Lender.  Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders, except that (x) the Commitment of any Defaulting Lender may not be increased without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than other affected Lenders shall require the consent of such Defaulting Lender.  The Borrower agrees to enter into such modifications or amendments of this Agreement or the other Loan Documents as reasonably may be requested by KeyBank and the Arranger in connection with the syndication of the Loan, provided that no such amendment or modification materially affects or increases any of the obligations of the Borrower hereunder.  No waiver shall extend to or affect any obligation not expressly waived or impair any right consequent thereon.  No course of dealing or delay or omission on the part of the Agent or any Lender in exercising any right shall operate as a waiver thereof or otherwise be prejudicial thereto.  No notice to or demand upon the Borrower shall entitle the Borrower to other or further notice or demand in similar or other circumstances.

Further notwithstanding anything to the contrary in this §27, if the Agent and the Borrower have jointly identified an ambiguity, omission, mistake, typographical error or other defect in any provision of this Agreement or the other Loan Documents or an inconsistency between provisions of this Agreement and/or the other Loan Documents, the Agent and the Borrower shall be 

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permitted to amend, modify or supplement such provision or provisions to cure such ambiguity, omission, mistake, defect or inconsistency so long as to do so would not adversely affect the interest of the Lenders.  Any such amendment, modification or supplement shall become effective without any further action or consent of any of other party to this Agreement.  Notwithstanding anything to the contrary in this Agreement, including this §27, this Agreement may be amended by Borrower and Agent to provide for any Commitment Increase in the manner contemplated by §2.11, the extension of the Revolving Credit Maturity Date as provided in §2.12(a) and/or the extension of the Term Loan Maturity Date as provided in §2.12(b).

	
§28.
	
SEVERABILITY

.

The provisions of this Agreement are severable, and if any one clause or provision hereof shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision, or part thereof, in such jurisdiction, and shall not in any manner affect such clause or provision in any other jurisdiction, or any other clause or provision of this Agreement in any jurisdiction.

	
§29.
	
TIME OF THE ESSENCE

.

Time is of the essence with respect to each and every covenant, agreement and obligation of the Borrower and the Guarantors under this Agreement and the other Loan Documents.

	
§30.
	
NO UNWRITTEN AGREEMENTS

.

THE LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.  ANY ADDITIONAL TERMS OF THE AGREEMENT BETWEEN THE PARTIES ARE SET FORTH BELOW.

	
§31.
	
REPLACEMENT NOTES

.

Upon receipt of evidence reasonably satisfactory to the Borrower of the loss, theft, destruction or mutilation of any Note, and in the case of any such loss, theft or destruction, upon delivery of an indemnity agreement reasonably satisfactory to the Borrower or, in the case of any such mutilation, upon surrender and cancellation of the applicable Note, the Borrower will execute and deliver, in lieu thereof, a replacement Note, identical in form and substance to the applicable Note and dated as of the date of the applicable Note and upon such execution and delivery all references in the Loan Documents to such Note shall be deemed to refer to such replacement Note.

	
§32.
	
NO THIRD PARTIES BENEFITED

.

This Agreement and the other Loan Documents are made and entered into for the sole protection and legal benefit of the Borrower, the Guarantors, the Lenders, the Agent, the Arranger and their permitted successors and assigns, and no other Person shall be a direct or indirect legal beneficiary of, or have any direct or indirect cause of action or claim in connection with, this Agreement or any of the other Loan Documents.  All conditions to the performance of the 

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obligations of the Agent and the Lenders under this Agreement, including the obligation to make Loans and issue Letters of Credit, are imposed solely and exclusively for the benefit of the Agent and the Lenders and no other Person shall have standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that the Agent and the Lenders will refuse to make Loans or issue Letters of Credit in the absence of strict compliance with any or all thereof and no other Person shall, under any circumstances, be deemed to be a beneficiary of such conditions, any and all of which may be freely waived in whole or in part by the Agent and the Lenders at any time if in their sole discretion they deem it desirable to do so.  In particular, the Agent and the Lenders make no representations and assume no obligations as to third parties concerning the quality of any construction by the Borrower or any of its Subsidiaries of any development or the absence therefrom of defects.

	
§33.
	
PATRIOT ACT

.

Each Lender and the Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that, pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes names and addresses and other information that will allow such Lender or the Agent, as applicable, to identify the Borrower in accordance with the Patriot Act.

	
§34.
	
ACKNOWLEDGEMENT AND CONSENT TO BAIL-IN OF AFFECTED FINANCIAL INSTITUTIONS

.

Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

a)the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and

b)the effects of any Bail-In Action on any such liability, including, if applicable:

(i)a reduction in full or in part or cancellation of any such liability;

(ii)a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

(iii)the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

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§35.
	
ACKNOWLEDGEMENT REGARDING ANY SUPPORTED QFCs

.

To the extent that the Loan Documents provide support, through a guarantee or otherwise, for  a Derivatives Contract or any other agreement or instrument that is a QFC (such support, “QFC Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

	
§36.
	
WAIVER OF CLAIMS

.

Borrower for itself and the Guarantors acknowledges, represents and agrees that Borrower and Guarantors as of the date hereof have no defenses, setoffs, claims, counterclaims or causes of action of any kind or nature whatsoever with respect to the “Loan Documents” (as defined in the Existing Credit Agreement and this Agreement), the administration or funding of the “Loans” or the “Letters of Credit” (as such terms are defined in the Existing Credit Agreement and this Agreement), or with respect to any acts or omissions of Agent or any Lender, or any past or present officers, agents or employees of Agent or any Lender (whether under the Existing Credit Agreement, this Agreement or any of such “Loan Documents”), and each of Borrower and Guarantors does hereby expressly waive, release and relinquish any and all such defenses, setoffs, claims, counterclaims and causes of action, if any, that they may have as of the date hereof.

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§37.
	
CONSENT TO AMENDMENT AND RESTATEMENT; EFFECT OF AMENDMENT AND RESTATEMENT

.

Pursuant to §27 of the Existing Credit Agreement, KeyBank as the Agent under the Existing Credit Agreement and each Lender hereby consents to the amendment and restatement of the Existing Credit Agreement pursuant to the terms of this Agreement and the amendment or amendment and restatement of the other “Loan Documents” (as defined in the Existing Credit Agreement), and by execution hereof the Lenders authorize the Agent to enter into such agreements.  On the Closing Date, the Existing Credit Agreement shall be amended and restated in its entirety by this Agreement, and the Existing Credit Agreement, except as specifically set forth herein, shall thereafter be of no further force and effect and shall be deemed replaced and superseded in all respects by this Agreement.  The parties hereto acknowledge and agree that this Agreement does not constitute a novation or termination of the “Obligations” under the Existing Credit Agreement, which remain outstanding as of the Closing Date.  All interest and fees accrued and unpaid under the Existing Credit Agreement as of the date of this Agreement shall be due and payable in the amount determined pursuant to the Existing Credit Agreement for periods prior to the Closing Date on the next payment date for such interest or fee set forth in this Agreement.

[Remainder of page intentionally left blank.]

 

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IN WITNESS WHEREOF, each of the undersigned have caused this Agreement to be executed by its duly authorized representatives as of the date first set forth above.

BORROWER:

 

GTJ REALTY, LP, a Delaware limited partnership

 

	
 
	
By:
	
GTJ GP, LLC, a Maryland limited liability company, its general partner

 

	
 
	
By:
	
GTJ REIT, Inc., a Maryland corporation, its sole member

By:
Name:
Title:

 

(SEAL)

 

 

[Signatures Continued on Next Page]

 

KeyBank / GTJ Realty Credit Agreement

US_ACTIVE\121755035\V-6

 

 

AGENT AND LENDERS:

 

KEYBANK NATIONAL ASSOCIATION, 
individually as a Lender and as the Agent

 

 

By:
Name:  Tayven Hike 
Title:  Senior Vice President

 

 

FIRST FINANCIAL BANK 

 

By:
Name:  John Wilgus
Title:  Senior Vice President

 

 

 

KeyBank / GTJ Realty Credit Agreement

US_ACTIVE\121755035\V-6

 

 

Table of Contents

Page

 

	
§1.
	
DEFINITIONS AND RULES OF INTERPRETATION1
	
 

	
 
	
§1.1
	
Definitions1
	
 

	
 
	
§1.2
	
Rules of Interpretation40
	
 

	
§2.
	
THE CREDIT FACILITY42
	
 

	
 
	
§2.1
	
Revolving Credit Loans42
	
 

	
 
	
§2.2
	
Commitment to Lend Term Loan.44
	
 

	
 
	
§2.3
	
Unused Fee44
	
 

	
 
	
§2.4
	
Reduction and Termination of the Revolving Credit Commitments45
	
 

	
 
	
§2.5
	
Swing Loan Commitment45
	
 

	
 
	
§2.6
	
Interest on Loans48
	
 

	
 
	
§2.7
	
Requests for Revolving Credit Loans49
	
 

	
 
	
§2.8
	
Funds for Loans49
	
 

	
 
	
§2.9
	
Use of Proceeds50
	
 

	
 
	
§2.10
	
Letters of Credit50
	
 

	
 
	
§2.11
	
Increase in Total Commitment54
	
 

	
 
	
§2.12
	
Extension of Maturity Date57
	
 

	
 
	
§2.13
	
Defaulting Lenders60
	
 

	
 
	
§2.14
	
Evidence of Debt63
	
 

	
§3.
	
REPAYMENT OF THE LOANS64
	
 

	
 
	
§3.1
	
Stated Maturity64
	
 

	
 
	
§3.2
	
.64
	
 

	
 
	
§3.2
	
Mandatory Prepayments.64
	
 

	
 
	
§3.3
	
Optional Prepayments65
	
 

	
 
	
§3.4
	
Partial Prepayments65
	
 

	
 
	
§3.5
	
Effect of Prepayments65
	
 

	
§4.
	
CERTAIN GENERAL PROVISIONS65
	
 

	
 
	
§4.1
	
Conversion Options65
	
 

	
 
	
§4.2
	
Fees67
	
 

	
 
	
§4.3
	
Funds for Payments67
	
 

	
 
	
§4.4
	
Computations71
	
 

	
 
	
§4.5
	
Temporary Inability to Determine Rates71
	
 

	
 
	
§4.6
	
Illegality72
	
 

	
 
	
§4.7
	
Breakage Compensation73
	
 

	
 
	
§4.8
	
Additional Costs, Etc.73
	
 

	
 
	
§4.9
	
Capital Adequacy74
	
 

	
 
	
§4.10
	
Intentionally Omitted75
	
 

	
 
	
§4.11
	
Default Interest; Late Charge75
	
 

	
 
	
§4.12
	
Certificate75
	
 

	
 
	
§4.13
	
Limitation on Interest75
	
 

	
 
	
§4.14
	
Certain Provisions Relating to Increased Costs and Non-Funding Lenders76
	
 

	
§5.
	
COLLATERAL SECURITY; GUARANTORS78
	
 

	
 
	
§5.1
	
Collateral78
	
 

	
 
	
§5.2
	
Appraisal78
	
 

			
	
 
	
-i-
	
 

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§5.3
	
Additional Collateral.79
	
 

	
 
	
§5.4
	
Additional Guarantors; Release of Guarantors81
	
 

	
 
	
§5.5
	
Partial Release of Collateral82
	
 

	
 
	
§5.6
	
Release of Collateral84
	
 

	
 
	
§5.7
	
Non-Encumbrance84
	
 

	
§6.
	
REPRESENTATIONS AND WARRANTIES84
	
 

	
 
	
§6.1
	
Corporate Authority, Etc.84
	
 

	
 
	
§6.2
	
Governmental Approvals85
	
 

	
 
	
§6.3
	
Title to Properties86
	
 

	
 
	
§6.4
	
Financial Statements86
	
 

	
 
	
§6.5
	
No Material Changes86
	
 

	
 
	
§6.6
	
Franchises, Patents, Copyrights, Etc.87
	
 

	
 
	
§6.7
	
Litigation87
	
 

	
 
	
§6.8
	
No Material Adverse Contracts, Etc.87
	
 

	
 
	
§6.9
	
Compliance with Other Instruments, Laws, Etc.87
	
 

	
 
	
§6.10
	
Tax Status88
	
 

	
 
	
§6.11
	
No Event of Default88
	
 

	
 
	
§6.12
	
Investment Company Act88
	
 

	
 
	
§6.13
	
Setoff, Etc.88
	
 

	
 
	
§6.14
	
Certain Transactions88
	
 

	
 
	
§6.15
	
Employee Benefit Plans89
	
 

	
 
	
§6.16
	
Disclosure89
	
 

	
 
	
§6.17
	
Trade Name; Place of Business90
	
 

	
 
	
§6.18
	
Regulations T, U and X90
	
 

	
 
	
§6.19
	
Environmental Compliance90
	
 

	
 
	
§6.20
	
Subsidiaries; Organizational Structure91
	
 

	
 
	
§6.21
	
Intentionally Omitted92
	
 

	
 
	
§6.22
	
Property92
	
 

	
 
	
§6.23
	
Brokers93
	
 

	
 
	
§6.24
	
Other Debt93
	
 

	
 
	
§6.25
	
Solvency93
	
 

	
 
	
§6.26
	
No Bankruptcy Filing93
	
 

	
 
	
§6.27
	
No Fraudulent Intent93
	
 

	
 
	
§6.28
	
Transaction in Best Interests of the Borrower and Guarantors; Consideration94
	
 

	
 
	
§6.29
	
Contribution Agreement94
	
 

	
 
	
§6.30
	
Representations and Warranties of Guarantors94
	
 

	
 
	
§6.31
	
OFAC94
	
 

	
 
	
§6.32
	
Guaranty; Assignment of Interests95
	
 

	
§7.
	
AFFIRMATIVE COVENANTS95
	
 

	
 
	
§7.1
	
Punctual Payment95
	
 

	
 
	
§7.2
	
Maintenance of Office95
	
 

	
 
	
§7.3
	
Records and Accounts95
	
 

	
 
	
§7.4
	
Financial Statements, Certificates and Information96
	
 

	
 
	
§7.5
	
Notices99
	
 

			
	
 
	
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US_ACTIVE\121755035\V-6

 

 

	
 
		

	
 

	
 
	
§7.6
	
Existence; Maintenance of Properties100
	
 

	
 
	
§7.7
	
Insurance; Condemnation101
	
 

	
 
	
§7.8
	
Taxes; Liens105
	
 

	
 
	
§7.9
	
Inspection of Properties and Books106
	
 

	
 
	
§7.10
	
Compliance with Laws, Contracts, Licenses, and Permits107
	
 

	
 
	
§7.11
	
Further Assurances107
	
 

	
 
	
§7.12
	
Management107
	
 

	
 
	
§7.13
	
Leases of the Property107
	
 

	
 
	
§7.14
	
Business Operations108
	
 

	
 
	
§7.15
	
Registered Service Mark108
	
 

	
 
	
§7.16
	
Ownership of Real Estate108
	
 

	
 
	
§7.17
	
Distributions of Income to the Borrower108
	
 

	
 
	
§7.18
	
Plan Assets109
	
 

	
 
	
§7.19
	
Intentionally Omitted.109
	
 

	
 
	
§7.20
	
Intentionally Omitted.109
	
 

	
 
	
§7.21
	
Sanctions Laws and Regulations; Anti-Bribery and Anti-Money Laundering109
	
 

	
 
	
§7.22
	
Assignment of Interest Rate Protection109
	
 

	
 
	
§7.23
	
Beneficial Ownership109
	
 

	
§8.
	
NEGATIVE COVENANTS110
	
 

	
 
	
§8.1
	
Restrictions on Indebtedness110
	
 

	
 
	
§8.2
	
Restrictions on Liens, Etc.111
	
 

	
 
	
§8.3
	
Restrictions on Investments112
	
 

	
 
	
§8.4
	
Merger, Consolidation114
	
 

	
 
	
§8.5
	
Sale and Leaseback114
	
 

	
 
	
§8.6
	
Compliance with Environmental Laws115
	
 

	
 
	
§8.7
	
Distributions116
	
 

	
 
	
§8.8
	
Asset Sales117
	
 

	
 
	
§8.9
	
Restriction on Prepayment of Indebtedness117
	
 

	
 
	
§8.10
	
Zoning and Contract Changes and Compliance117
	
 

	
 
	
§8.11
	
Derivatives Contracts117
	
 

	
 
	
§8.12
	
Transactions with Affiliates117
	
 

	
 
	
§8.13
	
[Intentionally Omitted.]118
	
 

	
 
	
§8.14
	
Equity Pledges118
	
 

	
 
	
§8.15
	
Management Fees118
	
 

	
§9.
	
FINANCIAL COVENANTS118
	
 

	
 
	
§9.1
	
Minimum Occupancy118
	
 

	
 
	
§9.2
	
Consolidated Total Indebtedness to Gross Asset Value118
	
 

	
 
	
§9.3
	
Adjusted Consolidated EBITDA to Consolidated Fixed Charges118
	
 

	
 
	
§9.4
	
Minimum Consolidated Tangible Net Worth118
	
 

	
 
	
§9.5
	
Liquidity118
	
 

	
 
	
§9.6
	
Unhedged Variable Rate Debt119
	
 

	
 
	
§9.7
	
Consolidated Debt Yield119
	
 

	
§10.
	
CLOSING CONDITIONS119
	
 

	
 
	
§10.1
	
Loan Documents119
	
 

			
	
 
	
-iii-
	
 

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§10.2
	
Certified Copies of Organizational Documents119
	
 

	
 
	
§10.3
	
Resolutions119
	
 

	
 
	
§10.4
	
Incumbency Certificate; Authorized Signers119
	
 

	
 
	
§10.5
	
Opinion of Counsel119
	
 

	
 
	
§10.6
	
Payment of Fees120
	
 

	
 
	
§10.7
	
Performance; No Default120
	
 

	
 
	
§10.8
	
Representations and Warranties120
	
 

	
 
	
§10.9
	
Proceedings and Documents120
	
 

	
 
	
§10.10
	
KYC120
	
 

	
 
	
§10.11
	
Compliance Certificate120
	
 

	
 
	
§10.12
	
Appraisals120
	
 

	
 
	
§10.13
	
Consents120
	
 

	
 
	
§10.14
	
Contribution Agreement121
	
 

	
 
	
§10.15
	
Insurance121
	
 

	
 
	
§10.16
	
Other121
	
 

	
§11.
	
CONDITIONS TO ALL BORROWINGS121
	
 

	
 
	
§11.1
	
Prior Conditions Satisfied121
	
 

	
 
	
§11.2
	
Representations True; No Default121
	
 

	
 
	
§11.3
	
Borrowing Documents121
	
 

	
 
	
§11.4
	
Endorsement to Title Policy121
	
 

	
 
	
§11.5
	
Future Advances Tax Payment122
	
 

	
§12.
	
EVENTS OF DEFAULT; ACCELERATION; ETC.122
	
 

	
 
	
§12.1
	
Events of Default and Acceleration122
	
 

	
 
	
§12.2
	
Certain Cure Periods; Limitation of Cure Periods125
	
 

	
 
	
§12.3
	
Termination of Commitments126
	
 

	
 
	
§12.4
	
Remedies126
	
 

	
 
	
§12.5
	
Distribution of Collateral Proceeds126
	
 

	
 
	
§12.6
	
Collateral Account127
	
 

	
§13.
	
SETOFF128
	
 

	
§14.
	
the Agent129
	
 

	
 
	
§14.1
	
Authorization129
	
 

	
 
	
§14.2
	
Employees and Agents129
	
 

	
 
	
§14.3
	
No Liability129
	
 

	
 
	
§14.4
	
No Representations130
	
 

	
 
	
§14.5
	
Payments131
	
 

	
 
	
§14.6
	
Holders of Notes131
	
 

	
 
	
§14.7
	
Indemnity131
	
 

	
 
	
§14.8
	
The Agent as Lender131
	
 

	
 
	
§14.9
	
Resignation131
	
 

	
 
	
§14.10
	
Duties in the Case of Enforcement132
	
 

	
 
	
§14.11
	
Request for Agent Action133
	
 

	
 
	
§14.12
	
Bankruptcy133
	
 

	
 
	
§14.13
	
Reliance by the Agent134
	
 

	
 
	
§14.14
	
Approvals134
	
 

	
 
	
§14.15
	
The Borrower Not Beneficiary134
	
 

			
	
 
	
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US_ACTIVE\121755035\V-6

 

 

	
 
		

	
 

	
 
	
§14.16
	
Reliance on Hedge Provider135
	
 

	
 
	
§14.17
	
Erroneous Payments135
	
 

	
§15.
	
EXPENSES138
	
 

	
§16.
	
INDEMNIFICATION139
	
 

	
§17.
	
SURVIVAL OF COVENANTS, ETC.140
	
 

	
§18.
	
ASSIGNMENT AND PARTICIPATION140
	
 

	
 
	
§18.1
	
Conditions to Assignment by Lenders140
	
 

	
 
	
§18.2
	
Register141
	
 

	
 
	
§18.3
	
New Notes142
	
 

	
 
	
§18.4
	
Participations142
	
 

	
 
	
§18.5
	
Pledge by Lender143
	
 

	
 
	
§18.6
	
No Assignment by the Borrower143
	
 

	
 
	
§18.7
	
Disclosure143
	
 

	
 
	
§18.8
	
Mandatory Assignment144
	
 

	
 
	
§18.9
	
Amendments to Loan Documents145
	
 

	
 
	
§18.10
	
Titled Agents145
	
 

	
§19.
	
NOTICES; EFFECTIVENESS; ELECTRONIC COMMUNICATIONS145
	
 

	
§20.
	
RELATIONSHIP147
	
 

	
§21.
	
GOVERNING LAW; CONSENT TO JURISDICTION AND SERVICE148
	
 

	
§22.
	
HEADINGS148
	
 

	
§23.
	
COUNTERPARTS148
	
 

	
§24.
	
ENTIRE AGREEMENT, ETC.148
	
 

	
§25.
	
WAIVER OF JURY TRIAL AND CERTAIN DAMAGE CLAIMS149
	
 

	
§26.
	
DEALINGS WITH THE BORROWER149
	
 

	
§27.
	
CONSENTS, AMENDMENTS, WAIVERS, ETC.150
	
 

	
§28.
	
SEVERABILITY152
	
 

	
§29.
	
TIME OF THE ESSENCE152
	
 

	
§30.
	
NO UNWRITTEN AGREEMENTS152
	
 

	
§31.
	
REPLACEMENT NOTES152
	
 

	
§32.
	
NO THIRD PARTIES BENEFITED152
	
 

	
§33.
	
PATRIOT ACT153
	
 

	
§34.
	
ACKNOWLEDGEMENT AND CONSENT TO BAIL-IN OF AFFECTED FINANCIAL INSTITUTIONS153
	
 

	
§35.
	
ACKNOWLEDGEMENT REGARDING ANY SUPPORTED QFCs154
	
 

	
§36.
	
WAIVER OF CLAIMS154
	
 

	
§37.
	
CONSENT TO AMENDMENT AND RESTATEMENT; EFFECT OF AMENDMENT AND RESTATEMENT155
	
 

 

			
	
 
	
-v-
	
 

US_ACTIVE\121755035\V-6

 

 

 

EXHIBITS AND SCHEDULES

Exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K and will be provided on a supplemental basis to the Securities and Exchange Commission upon request.

	
Exhibit A
	
FORM OF JOINDER AGREEMENT

	
Exhibit B-1
	
FORM OF REVOLVING CREDIT NOTE

	
Exhibit B-2
	
FORM OF TERM LOAN NOTE

	
Exhibit C
	
FORM OF SWING LOAN NOTE

	
Exhibit D
	
FORM OF REQUEST FOR REVOLVING CREDIT LOAN

	
Exhibit E
	
FORM OF LETTER OF CREDIT REQUEST

	
Exhibit F
	
FORM OF LETTER OF CREDIT APPLICATION

	
Exhibit G
	
FORM OF COMPLIANCE CERTIFICATE

	
Exhibit H
	
FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

	
Exhibits I
	
FORMS OF U.S. TAX COMPLIANCE CERTIFICATES

	
Exhibit J
	
FORM OF MORTGAGE

	
Exhibit K
	
FORM OF ASSIGNMENT OF LEASES AND RENTS

	
Exhibit L
	
FORM OF ASSIGNMENT OF INTERESTS

	
Schedule 1.1
	
LENDERS AND COMMITMENTS

	
Schedule 4.3
	
ACCOUNTS

	
Schedule 5.3A
	
GUARANTOR QUALIFICATION DOCUMENTS

	
Schedule 5.3B
	
ELIGIBLE REAL ESTATE QUALIFICATION DOCUMENTS

	
Schedule 6.3
	
TITLE TO PROPERTIES

	
Schedule 6.5
	
NO MATERIAL CHANGES

	
Schedule 6.6
	
TRADEMARKS, TRADENAMES

	
Schedule 6.7
	
PENDING LITIGATION

	
Schedule 6.10
	
TAX STATUS

	
Schedule 6.14
	
CERTAIN TRANSACTIONS

	
Schedule 6.19
	
ENVIRONMENTAL MATTERS

	
Schedule 6.20(a)
	
SUBSIDIARIES OF REIT

	
Schedule 6.20(b)
	
UNCONSOLIDATED AFFILIATES OF REIT AND ITS SUBSIDIARIES

	
Schedule 6.22
	
PROPERTY

			
	
 
	
 
	
 

US_ACTIVE\121755035\V-6

 

 

		

	
Schedule 6.24
	
OTHER DEBT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

			
	
 
	
 
	
 

US_ACTIVE\121755035\V-6

 

 

 

Schedules to first amendment

Exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K and will be provided on a supplemental basis to the Securities and Exchange Commission upon request.

Schedule 1.1REVOLVING CREDIT COMMITMENTS

Schedule 2ASSIGNED MORTGAGES AND ASSIGNED NOTES

EXHIBIT “A”ADDITIONAL COMPANIES

 

			
	
 
	
 
	
 

US_ACTIVE\121755035\V-6

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