Document:

Exhibit 10.1

 

 

PURCHASE MONEY MORTGAGE

 

Date: December 17, 2010

 

 

between SONO-TEK INDUSTRIAL PARK LLC, a New York limited
liability company, with an address at 2012 Route 9W, Bldg #3, Milton, New York 12547 (the "Mortgagor"),

 

JEAN K. WOODWARD, 50 Riverview Drive, Marlboro, New
York 12542 (the "Mortgagee").

 

 

W I T N E S S E T H

 

 

To secure the payment of an indebtedness
in the sum of TWO MILLION ONE HUNDRED THOUSAND AND NO/100 ($2,100,000.00) dollars, lawful money of the United States, to be paid
according to a certain note bearing even date herewith (the "Note"), on or before the 1st day of January,
2031, the Mortgagor hereby mortgages to the Mortgagee:

 

ALL that certain plot, piece or
parcel of land, with the buildings and improvements thereon erected, situate, lying and being in the Town of Marlboro, County of
Ulster, and State of New York, bounded and described as set forth in Schedule "A" annexed hereto and made a part hereof.

 

TOGETHER with all buildings,
structures and other improvements now or hereafter erected, constructed or situated upon said premises, and all fixtures and equipment
and other personal property now or hereafter affixed to, or used in connection with said premises and any replacements thereof
and additions thereto, all of which shall be deemed to be and remain and form a part of said premises and are covered by the lien
of this Mortgage (said premises, buildings, structures, other improvements, fixtures and equipment and other personal property
being collectively referred to in this Mortgage as the "Premises");

 

TOGETHER with all strips
and gores of land adjoining or abutting the Premises;

 

TOGETHER with all right,
title and interest of the Mortgagor in and to the land lying in the streets and roads in front of and adjoining said premises;

 

TOGETHER with all awards
heretofore and hereafter made to the Mortgagor for taking by eminent domain the whole or any part of said premises or any easement
therein, including any awards for changes of grade of streets, which said awards are hereby assigned to the Mortgagee, who is hereby
authorized to collect and receive the proceeds of such awards and to give proper receipts and acquittances therefor, and to apply
the same toward the payment of the mortgage debt, notwithstanding the fact that the amount owing thereon may not then be due and
payable; and the said Mortgagor hereby agrees, upon request, to make, execute and deliver any and all assignments and other instruments
sufficient for the purpose of assigning said awards to the Mortgagee, free, clear and discharged of any encumbrances of any kind
or nature whatsoever.

 

    	-1-

    	 

    

 

AND the Mortgagor covenants
with the Mortgagee as follows:

1.That the Mortgagor
will pay the indebtedness as hereinbefore provided.

2.All payments made
by Mortgagor shall be applied by the Mortgagee in the following order, and for the following purposes:

a.To repay to the Mortgagee any sums
advanced by Mortgagee to protect its lien under this mortgage;

b.To pay interest due;

c.To pay principal due;

d.To pay any late charges due; and

e.To pay any other charges due Mortgagee
pursuant to this mortgage.

3.Mortgagor, at Mortgagor's
sole cost and expense, will take good care of the Premises and the sidewalks, curbs and vaults, if any, adjoining the Mortgaged
Property and will keep the same in good order and condition, and make all necessary repairs thereto, interior and exterior, structural
and non-structural, ordinary and extraordinary, and unforeseen and foreseen. All repairs made by Mortgagor shall be at least equal
in quality and class to the original work. The necessity for and adequacy of repairs to the buildings and improvements pursuant
to this Mortgage shall be measured by the standard which is appropriate for structures of similar construction and class, provided
that Mortgagor shall in any event make all repairs necessary to avoid any structural damage or injury to the buildings and improvements
and to keep the buildings and improvements in proper condition for their intended uses.

4.That the whole of
said principal sum and interest shall become due at the option of the Mortgagee (an "Event of Default"): (a) after default
in the payment of any installment of principal or of interest for twenty (20) days; (b) after default in the payment of any tax,
water rate, sewer rent or assessment for thirty (30) days after notice and demand; (c) after any default for thirty (30) days after
notice and demand either in assigning and delivering the policies insuring the buildings against loss by fire or in reimbursing
the Mortgagee for premiums paid on such insurance; (d) after default for ten (10) days upon request in furnishing a statement of
the amount due on the mortgage and whether any offsets of defenses exist against the mortgage debt, as hereinafter provided; (e)
after the assignment of the rent of the Premises or any part thereof without the written consent of the Mortgagee; (f) after failure
to comply with any requirement or order or notice of violation of law or ordinance issued by any governmental department claiming
jurisdiction over the premises within thirty (30) days from the issuance thereof; (g) after thirty (30) days notice to the Mortgagor,
in the event of the passage of any law deducting from the value of land for the purposes of taxation any lien thereon, or changing
in any way the taxation of mortgages of debts secured thereby for state or local purposes; or (h) if the Mortgagor fails to keep,
observe and perform any of the other covenants, conditions or agreements contained in this Mortgage. An assessment which has been
made payable in installments at the application of the Mortgagor or lessee(s) of the Premises shall nevertheless, for the purpose
of this paragraph, be deemed due and payable in its entirety on the day the first installment becomes due and payable or a lien.

    	-2-

    	 

    

5.That the Mortgagee,
in any action to foreclose this Mortgage, shall be entitled to the appointment of a receiver, without notice to the Mortgagor,
and without reference to the value of the property, the adequacy of any security for the indebtedness or the solvency or insolvency
of any person liable for the payment thereof.

6.That the Mortgagor
will pay all taxes, assessments, sewer rents and water rates in a timely fashion which impositions shall be paid prior to the Mortgagor
incurring any penalty for late payment, and in default thereof, the Mortgagee may pay the same. The Mortgagor will provide the
Mortgagee with proof of payment of all taxes, assessments, sewer rents and water rates.

7.That within five (5)
days upon request in person or within ten (10) days upon request by mail, the Mortgagor will furnish a written statement duly acknowledged
of the amount due on this Mortgage and whether any offsets or defenses exist against the Mortgage debt.

8.Upon request by the
Mortgagee, the Mortgagor will permit Mortgagee and Mortgagee's employees, accountant, attorney and other agent of the Mortgagee
to enter the Mortgaged Property at reasonable times to inspect the same.

9.That notice and demand
or request may be in writing and may be served in person or by mail.

10.That the Mortgagor
warrants the title to the premises.

11.That in case of a
foreclosure sale, said premises, or so much thereof as may be affected by this Mortgage, may be sold in one parcel.

12.That if any action
or proceeding be commenced (except an action to foreclose this Mortgage or to collect the debt secured thereby), to which action
or proceeding the Mortgagee is made a party, or in which it becomes necessary to defend or uphold the lien of this Mortgage, all
sums paid by the Mortgagee for the expense of any litigation to prosecute or defend the rights and lien created by this Mortgage
(including reasonable attorney fees), shall be paid by the Mortgagor, and any such sum shall be a lien on the Premises, prior to
any right or title to, interest in or lien upon said premises attaching or accruing subsequent to the lien of this Mortgage, and
shall be deemed to be secured by this Mortgage.

    	-3-

    	 

    

13.That the Mortgagor
hereby assigns to the Mortgagee the rents, issues and profits of the Premises as further security for the payment of said indebtedness,
and the Mortgagor grants to the Mortgagee the right to enter upon and to take possession of the Premises for the purpose of collecting
the same and to let the Premises or any part thereof, and to apply the rents, issues and profits, after payment of all necessary
charges and expenses, on account of said indebtedness. This assignment and grant shall continue in effect until this Mortgage is
paid. The Mortgagee hereby waives the right to enter upon and to take possession of the Premises for the purpose of collecting
said rents, issues and profits, and the Mortgagor shall be entitled to collect and receive said rents, issues and profits in payment
of principal and interest becoming due on this Mortgage and in payment of taxes, assessments, sewer rents, water rates and carrying
charges becoming due against the Premises, but such right of the Mortgagor may be revoked by the Mortgagee upon any default, on
five (5) days written notice. The Mortgagor will not, without the written consent of the Mortgagee, receive or collect rent from
any tenant of the Premises or any part thereof for a period of more than one (1) month in advance, and in the event of any default
under this Mortgage will pay monthly in advance to the Mortgagee, or to any receiver appointed to collect said rents, issues and
profits, the fair and reasonable rental value for the use and occupation of the Premises or of such part thereof as may be in the
possession of the Mortgagor, and upon default in any such payment will vacate and surrender the possession of the Premises to the
Mortgagee or to such receiver, and in default thereof may be evicted by summary proceedings.

14.That the Mortgagor
will, in compliance with Section 13 of the Lien Law, receive the advances secured hereby and will hold the right to receive such
advances as a trust fund to be applied first for the purpose of paying the cost of the improvement before using any part of the
total of the same for any other purpose.

15.In the event any
sum due under this Mortgage or the Note shall remain unpaid for a period of twenty (20) days after the sum becomes due, a late
charge of five (5%) percent of such overdue payment, may, at the option of the Mortgagee, be charged for the purpose of defraying
the expense incident thereto.

16.In the event the
Mortgagor shall default in the terms or provisions of the Mortgage, and the Mortgagee shall be required to retain an attorney for
the collection of the indebtedness herein, including but not limited to the foreclosure of this mortgage, then and in such event,
the Mortgagor or any subsequent owner, shall and does hereby agree to pay to the Mortgagee, its successors and assigns, the reasonable
attorneys' fees and expenses incurred by the Mortgagee in addition to any and all statutory costs, allowances and disbursements
which the Mortgagee, its successors and assigns, shall or may be entitled to receive in an action to foreclose this Mortgage.

17.The Purchase Money
Note and Mortgage may be prepaid in whole or in part under the terms set forth in the Note secured hereby.

18.Should Mortgagor
sells or agrees to sell, conveys or agrees to convey, transfers or disposes of or agrees to transfer or dispose of the Premises,
without the written consent of Mortgagee being first had or obtained, or same is accomplished by operation of law, then the Mortgagee
shall have the right, at Mortgagee’s option, to declare all sums secured hereby immediately due and payable.

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19.OMIT.

20.In the event the
Mortgagee shall hereafter make any advances or incur any expenses on which, under the provisions of this Mortgage or by law, the
Mortgagee is entitled to interest, such interest shall be computed at the rate per annum set forth in the Note secured hereby.

21.After acceleration
of the whole of the indebtedness secured by this Mortgage by virtue of the Mortgagor's default or after maturity, the amount due
Mortgagee shall bear interest at twelve (12%) per cent per annum, until payment in full is received by Mortgagee.

22.The Mortgagor hereby
represents, warrants, covenants and agrees that it shall conduct its operations hereafter so that the mortgaged Premises and the
improvements thereto shall comply with all laws, rules and regulations of the local municipality where the Premises are located,
the state where the Premises are located and the United States of America relating to the existence, storage, use, disposal, generation,
transportation, and/or treatment of hazardous, toxic and/or radioactive matter, substances and/or waste, including without the
limitation asbestos, oil, gasoline, and petroleum products (collectively "Toxic Materials"). If the presence of Toxic
Materials on the mortgaged Premises or in any improvements thereto, from and after the date hereof, has resulted in, and/or shall
hereafter result in contamination or deterioration greater than the levels permitted or established by any governmental agency
having jurisdiction over such contamination, then Mortgagor covenants and agrees to promptly take any all action necessary to clean
up such contamination to the extent required by any governmental authority having jurisdiction or as a condition to the issuance
of continuing effectiveness of any governmental approval and/or any insurance policy that relates to the use and/or occupancy of
the mortgaged Premises and/or improvements thereto. Mortgagor covenants and agrees to indemnify the Mortgagee and hold the Mortgagee
harmless from any and all liabilities, losses, costs and/or expenses, including, but not limited to, liability for property damage
and/or personal injury (including wrongful death), the expense incurred in monitoring and the cost of remediation arising out of
and/or resulting from the existence and/or the removal of any Toxic Materials at and/or on the mortgaged Premises or any part thereof
or the improvements thereto or any part thereof and/or the effects of any such Toxic Materials located at and/or on the mortgaged
Premises or any part thereof or the improvements thereto or any part thereof. Occurring after the date hereof as a result of Mortgagors
activities at the property, and expressly excluding activities prior to the date hereof by any party other than Sono-Tek Industrial
Park LLC. The foregoing limited indemnity shall survive any foreclosure sale of the mortgaged Premises and any delivery by the
Mortgagor and the acceptance by the Mortgagee of a deed in lieu of foreclosure of the mortgaged Premises.

23. This Mortgage may not
be changed or terminated orally. The covenants contained in this Mortgage shall run with the land and bind the Mortgagor, the heirs,
personal representatives, successors and assigns of the Mortgagor and all subsequent owners, encumbrancers, tenants and subtenants
of the premises, and shall inure to the benefit of the Mortgagee, the personal representatives, successors and assigns of the Mortgagee
and all subsequent holders of this Mortgage. The word “Mortgagor” shall be construed as if it read “Mortgagors”
and the word “Mortgagee” shall be construed as if it read “Mortgagees” whenever the sense of this Mortgage
so requires.

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24. Upon request by the
Mortgagee, the Mortgagor shall promptly furnish to the Mortgagee a written statement containing the names and mailing addresses
of all lessees of the Premises or of any portion thereof, the terms of their respective leases, the space occupied and the rentals
payable thereunder and copies of their respective leases and shall cooperate in effecting delivery of notice of this covenant to
each affected lessee.

25. OMIT. The
Mortgagor shall comply with or cause compliance with all applicable statutes, regulations and other laws (including, without
limitation, all applicable zoning, building, fire and health codes and ordinances and the Americans With Disabilities Acts of
1990, if applicable), all other requirements of all governmental authorities whatsoever having jurisdiction over or with
respect to the Premises or any portion thereof or the use or occupation thereof and with all applicable deed restrictions, if
any; provided, however, that the Mortgagor may postpone such compliance if and so long as the validity or legality of any
such requirement or restriction shall be contested by such Mortgagor, with diligence and in good faith, by appropriate legal
proceedings and the Mortgagee is satisfied that such non-compliance will not impair or adversely affect the value of its
security.

 

IN WITNESS WHEREOF, this
Mortgage has been duly executed by the Mortgagor.

 

	In presence of:	 	 
	 	 	SONO-TEK INDUSTRIAL PARK LLC
	 	 	 
	 	 	 
	 	By:	/s/
    Stephen J. Bagley
	 	 	Stephen J. Bagley
	 	 	Manager

    	-6-

    	 

    

 

 

	STATE OF NEW YORK	)	 
	 	)	ss.:
	COUNTY OF ORANGE	)	 

 

On December ______, 2010, before
me, the undersigned, a Notary Public in and for said State, personally appeared _______________________ personally known to me
or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and
acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or person
upon behalf of which the individual acted, executed the instrument.

 

 

______________________________________

Notary Public

 

 

 

 

JRL/ef/159105

7201-63758

11/22/10

    	-7-Exhibit 10.2

 

CONTRACT OF
SALE

 

DATE

 

This Contract of Sale is made as of this 17th
day of December, 2010

 

PARTIES

 

The SELLER, JEAN K. WOODWARD, residing
at 50 Riverview Drive, Marlboro, New York, agrees to sell the premises described herein to

 

The PURCHASER, SONO-TEK INDUSTRIAL PARK,
LLC, with offices located at 2012 Route 9W, Bldg #3, Milton, New York, who agrees to purchase the premises described herein,
including all buildings and improvements thereon known as:

 

PREMISES

 

	 	Street Address:	The Milton Industrial Park, 2008-2016 Route 9W
	 	 	Milton , New York 
	 	 	 
	 	Tax Map Designation:	103.1-2-80 

 

More
fully described on Schedule A annexed, together with SELLER’S interest, if any, in street and unpaid
awards as set forth in Paragraph 8 below.

 

PERSONAL PROPERTY

 

The
sale also includes all fixtures and articles of personal property attached to or used in connection with
the PREMISES, unless specifically excluded below, TO THE EXTENT SAME ARE LOCATED ON THE PREMISES. Excluded
from the sale are furniture and household furnishings.

 

PURCHASE PRICE

 

	 	1	The purchase price is	$2,500,000.00
	 	 	 	 
	 	 	Payable as follows:	 
	 	 	 	 
	 	 	By a pre-contract payment	$        2,500.00
	 	 	 	 
	 	 	On the signing of this contract by check subject to collection:	$      47,500.00
	 	 	 	 
	 	 	By Purchase Money Note and Mortgage	$ 2,100,000.00
	 	 	 	 
	 	 	BALANCE AT CLOSING:	$    350,000.00

 

     

     

    

ACCEPTABLE FUNDS

 

2. All money payable under this contract
unless otherwise specified, shall be either:

 

(a)Cash, but not over ONE THOUSAND AND NO/100
($1,000.00) DOLLARS, or

 

(b)Good unendorsed certified check of PURCHASER,
or good unendorsed official check of any bank, having a banking office in the State of New York, payable to the order of SELLER,
or

 

(c)Money other than the purchase price,
payable to SELLER at CLOSING, may be by unendorsed check of PURCHASER up to the amount of ONE THOUSAND AND NO/100 ($1,000.00) DOLLARS,
or

 

(d)Wire transfer.

 

(e)As otherwise agreed to in writing by
SELLER or SELLER'S attorney. Endorsed checks will not be accepted.

 

“SUBJECT TO” PROVISIONS

 

3.The PREMISES are to be transferred subject
to:

 

(a)Laws and governmental regulations that
affect the use and maintenance of the PREMISES, provided that they are not violated by the buildings and improvements erected on
the PREMISES.

 

(b)Consents for the erection of any structures
on, under or above any streets on which the PREMISES abut.

 

(c)Encroachments of stoops, areas, cellar
steps, trim and cornices, if any, upon any street or highway.

 

(d)Covenants, easements and restrictions
of record, if any, provided the same do not render title unmarketable.

 

(e)Existing tenancies.

 

(f)Such state of facts as an accurate survey
or a personal inspection of the said premises may reveal, provided the same do not render title unmarketable.

 

TITLE COMPANY APPROVAL

 

4.SELLER shall give and PURCHASER
shall accept such title as any title company, a member of the New York State Land Title Association will be willing to approve
and insure in accordance with their standard form of title policy, subject only to the matters provided for in this contract.

    	2

    	 

    

CLOSING DEFINED AND FORM OF DEED

 

5. "CLOSING" means the settlement of the obligations
of SELLER and PURCHASER to each other under this contract, including the payment of the purchase price to SELLER, and the delivery
to PURCHASER of a Bargain and Sale deed with covenant against Grantors Acts in proper statutory form for recording so as to transfer
full ownership to the PREMISES, free of all encumbrances except as herein stated. The deed will contain a covenant by SELLER as
required by Section 13 of the Lien Law.

 

CLOSING DATE AND PLACE

 

6. CLOSING will take place at the office of DRAKE, LOEB,
HELLER, KENNEDY, GOGERTY, GABA, & RODD, PLLC, 555 Hudson Valley Avenue, Ste. 100, New Windsor, New York, on or before
December 31, 2010. Time is hereby made of the essence for a closing of this contract on a date mutually agreed upon between the
parties between December 15, 2010 and December 31, 2010. It being understood by the PURCHASER that as a condition of this sale,
and subject only to the SELLER'S inability to deliver title in accordance with this Contract, in the event the PURCHASER fails
to close title on or before December 31, 2010, through no fault of the SELLER, the PURCHASER shall be deemed in default, all monies
paid under this Contract shall be retained by the SELLER and this Contract shall automatically become null, void and unenforceable
by the PURCHASER.

 

PURCHASE MONEY MORTGAGE

 

7.As pat of the consideration for this conveyance, the PURCHASER
shall at the time of closing, deliver to the SELLER a fully executed Purchase Money Note secured by a Purchase Money Mortgage in
the form set forth in Schedules “B” and “C” annexed hereto and made a part hereof. The note shall provide
for monthly payments of principal and interest at 5-1/2% per annum in an amount necessary to amortize the loan over a twenty (20)
year term, which said monthly payments shall be in the amount of $14,445.63 per month. The terms of the Purchase Money Note and
Mortgage are more fully set forth on Schedule "B" and "C" annexed hereto and made a part of this Contract.
The PURCHASER shall pay the mortgage recording tax, recording fees and the SELLER'S attorney fees for preparation of the Purchase
Money Note and Mortgage, not to exceed $500.00.

 

BROKER

 

8.PURCHASER and SELLER covenant, warrant and represent to
each other that neither of them has dealt with any broker, finder or like person in consummating the transaction contemplated hereby
and that no conversations or negotiations were had with any broker, finder or like person concerning the sale of the PREMISES.
PURCHASER and SELLER acknowledge that they have relied on this representation in entering into this Contract. PURCHASER and SELLER
agree to indemnify each other against, and to hold each other harmless from, any and all claims, liabilities, losses, costs and
expenses (including, without limitation, reasonable attorneys' fees and disbursements) suffered or incurred by either PURCHASER
or SELLER by reason of any claim arising out of any conversations or negotiations had by the other, with any broker, finder or
like person claiming to have dealt with such other party in connection with the sale of the PREMISES. The provisions of this paragraph
shall survive delivery of the deed hereunder or the earlier termination of this Contract.

    	3

    	 

    

STREET AND ASSIGNMENT OF UNPAID AWARDS

 

9. This sale includes all of SELLER'S ownership and rights,
if any, in any land lying in the bed of any street or highway, opened or proposed, in front of or adjoining the PREMISES to the
center line thereof. It also includes any right of SELLER to any unpaid award by reason of any taking by condemnation and/or for
any damage to the PREMISES by reason of change of grade of any street or highway. SELLER will deliver at no additional cost to
PURCHASER, at CLOSING, or thereafter, on demand, any documents which PURCHASER may require to collect the award and damages.

 

COMPLIANCE WITH STATE AND MUNICIPAL 

DEPARTMENT VIOLATIONS AND ORDERS

 

10.
SELLER will comply with all notices of violations of law or municipal ordinances, orders or requirements
noted in or issued by any governmental department having authority as to lands, housing, buildings, fire,
health and labor conditions affecting the PREMISES at the date hereof. The PREMISES shall be transferred
free of them at CLOSING. SELLER shall furnish PURCHASER with any authorizations necessary to make the
searches that could disclose these matters. The cost of such compliance shall not exceed FIVE HUNDRED
($500.00) DOLLARS. Should the cost of compliance exceed FIVE HUNDRED ($500.00) DOLLARS, SELLER may cancel
this Contract and this Contract shall be null and void, and the SELLER shall refund to the PURCHASER
the down payment made under this Contract, without interest, whereupon the PURCHASER shall have no further
claim against the SELLER or claim or lien upon the PREMISES herein described and both parties to this
Contract shall be completely released from all further liability hereunder.

 

APPORTIONMENT
OF TAXES AND RENTS

 

11.Attached
to this Contract as Schedule "D" is a list of the tenants presently occupying portion of the
premises together with a rent roll and a statement of any security deposits held by the SELLER. SELLER
will provide PURCHASER with a complete copy of each written Lease and any amendments or riders or other
writings pertaining to any obligation of Landlord or Tenant under each such Lease when SELLER signs this
Contract. SELLER represents and warrants the accuracy of the rent roll and that there does not now exist
any material default under any lease described therein. The security deposits will be assigned to the
PURCHASER by the SELLER at the Closing and the SELLER and the PURCHASER shall execute a joint letter
to each of the tenants advising the tenants of the sale; the transfer of the security deposit and the
address to which all rent payments commencing on January 1, 2011 should be sent. The rent shall be adjusted
as of the Closing Date.

 

The following are to be apportioned as of midnight December 31,
2010.

 

    	4

    	 

    
(a)Taxes,
water charges and sewer rents, on the basis of the fiscal period for which assessed. subject to the above
provisions of the adjustment date as of December 31, 2010.

 

(b)
Fuel, if any.

     

    

If CLOSING shall occur before a new tax rate
is fixed, the apportionment of taxes shall be upon the basis of the old tax rate for the preceding period applied to the latest
assessed valuation. Any errors or omissions in computing apportionments at CLOSING shall be corrected within six (6) months of
the CLOSING. THIS PROVISION SHALL SURVIVE CLOSING.

 

ALLOWANCE FOR UNPAID TAXES

 

12.SELLER
has the option to credit PURCHASER as an adjustment of the purchase price with the amount of any unpaid
taxes, assessments, water charges and sewer rents, together with any interest and penalties thereon to
a date not less than five (5) business days after CLOSING, provided that official bills therefor computed
to said date are produced at CLOSING.

 

USE OF PURCHASE PRICE TO PAY ENCUMBRANCES

 

13.If there is anything else affecting the sale which SELLER
is obligated to pay and discharge at CLOSING, SELLER may use any portion of the balance of the purchase price to discharge it.
As an alternative, SELLER may deposit money with the title insurance company employed by PURCHASER required by it to assure its
discharge, but only if the title insurance company will insure PURCHASER'S title clear of the matter or insure against its enforcement
out of the PREMISES. Upon request made within a reasonable time before CLOSING, PURCHASER agrees to provide separate certified
checks as requested to assist in clearing up these matters.

 

AFFIDAVITS AS TO JUDGMENTS, BANKRUPTCIES

 

14.If a title examination discloses judgments, bankruptcies
or other returns against persons other than SELLER having names the same as or similar to that of SELLER, SELLER shall deliver
a satisfactory detailed affidavit at CLOSING showing that they are not against SELLER.

 

DEED TRANSFER AND RECORDING TAXES

 

15.(a) At CLOSING, SELLER shall deliver a check payable
to the order of the appropriate County officer in the amount of any applicable transfer tax payable by reason of the delivery or
recording of the deed.

 

(b) At CLOSING, SELLER will deliver any warranties,
bills of sale, receipts, invoices, and/or contracts to the extent the SELLER presently possesses them.

    	5

    	 

    

TRANSFER TAX REPORT

 

16.SELLER and PURCHASER shall complete, sign and deliver
at Closing the New York State Combined Real Estate Transfer Tax Return and Credit Line Mortgage Certificate (Form TP-584), which
SELLER shall deliver to the PURCHASER’S title company with SELLER’S check as and for payment of the transfer tax due.
Any costs or fees necessary to record the deed, to file the Form TP-584 or to file the Real Property Transfer Report (Form RP-5217)
shall be paid by the PURCHASER.

 

CONDITION OF PREMISES

 

17.The PURCHASER has examined the Premises and the Fixtures
above described and takes them in their present condition and “AS IS.” Neither the SELLER nor any agent or representative
of the SELLER has made any representations or promises upon which the PURCHASER has relied regarding the physical condition of
the Premises, the equipment and fixtures therein contained, or any other matter or thing relating to the property hereby contracted
to be sold, except as is expressly set forth in this agreement. The SELLER shall not be liable for or in any manner bound by any
verbal or written statements or representations by any person or persons, unless such representations are expressly set forth in
this agreement.

 

NO WARRANTIES

 

18.The SELLER makes no representations nor warranties concerning
the conditions of the property or fitness for a particular purpose.

 

TITLE DEFECTS & LIMIT OF LIABILITY

 

19.If the SELLER shall be unable to convey a good and insurable
title subject to and in accordance with this agreement, the sole obligation of the SELLER shall be to refund the PURCHASER’S
down payment made herein, without interest thereon, and to reimburse PURCHASER for the cost of title examination (expense actually
incurred by PURCHASER for title examination, in no event to exceed net amount which would be charged by a title company in the
County in which the Premises are located for title examination of Premises described herein without issuance of a policy), if PURCHASER
had ordered and paid for same, and upon making of such refund, this agreement shall wholly cease and terminate and neither party
shall have any further claim against the other by reason of this agreement, and the lien, if any, of the PURCHASER against the
Premises shall wholly cease. The SELLER shall not be required to bring any action or proceeding or otherwise to incur any expenses
to render the title to the Premises marketable. The PURCHASER may, nevertheless, accept such title as the SELLER may be able to
convey without any further liability on the part of the SELLER and without any abatement or reduction of the Purchase Price. The
acceptance of a deed by the PURCHASER shall be deemed to be a full performance and discharge of every agreement and obligation
on the part of the SELLER to be performed pursuant to the contract.

 

    	6

    	 

    

FIRPTA

 

20.SELLER represents and warrants to PURCHASER that SELLER
is not a "foreign person" as defined in IRC Section 1445, as amended, and the regulations issued thereunder ("Code
Withholding Section"). At the CLOSING SELLER shall deliver to PURCHASER a certification stating that SELLER is not a foreign
person, which certification shall be in the form then required by the Code Withholding Section. In the event SELLER fails to deliver
the aforesaid certification or in the event that PURCHASER is not entitled under the Code Withholding Section to rely on such certification,
PURCHASER shall deduct and withhold from the purchase price a sum equal to ten (10%) percent thereof and shall at CLOSING remit
the withheld amount with the required forms to the Internal Revenue Service.

 

OBJECTIONS TO TITLE

 

21.PURCHASER shall notify SELLER'S attorney in writing by
mail, of any objection to title at least twenty (20) days before the closing of title. SELLER shall be entitled to a reasonable
adjournment of the closing date in order to clear any such objections to title, but if SELLER is unable to clear such objections
to title, SELLER shall have the option to terminate this contract by notifying PURCHASER'S attorney in writing by mail, of such
termination. If such termination notice is sent, SELLER shall simultaneously return the down payment made hereunder, without interest
thereon, to PURCHASER, and thereupon, this contract shall be null and void and neither SELLER nor PURCHASER shall have any further
rights or obligations hereunder or to the other.

 

DOWN PAYMENT ESCROW

 

22.The down payment of FORTY-SEVEN THOUSAND FIVE HUNDRED
AND NO/100 ($47,500.00) DOLLARS will be held in escrow by DRAKE, LOEB, HELLER, KENNEDY, GOGERTY, GABA, & RODD, PLLC, ("Escrowee")
in Escrowee's IOLA Trust Account maintained at Riverside Bank, 52 Route 17K, Newburgh, New York, 12550, as herein provided, until
CLOSING or until a default hereunder by PURCHASER, at which time it shall be delivered to SELLER. If SELLER defaults hereunder,
the down payment shall be returned to PURCHASER.

 

The Escrowee shall not be liable to either of
the parties for any act or omission, except for bad faith or gross negligence, and the parties hereby indemnify the Escrowee and
hold the Escrowee harmless from any claims, damages, losses or expenses arising in connection herewith. The parties acknowledge
that the Escrowee is acting solely as a stakeholder for their convenience. In the event of a dispute between the parties, the Escrowee
shall not be bound to release and deliver the escrow fund to either party but may either continue to hold the escrow fund until
Escrowee is directed in a writing signed by all parties hereto or Escrowee may deposit the down payment with the clerk of any court
of competent jurisdiction. Upon such deposit the Escrowee will be released from all duties and responsibilities hereunder.

 

    	7

    	 

    

The Escrowee shall not be required to defend
any legal proceedings which may be instituted against it in respect of the PREMISES or the subject matter of this contract unless
requested to do so by PURCHASER or SELLER and indemnified to its satisfaction against the cost and expense of such defense. Escrowee
shall not be required to institute legal proceedings of any kind and shall have no responsibility for the genuineness or validity
of any document or other item deposited with it or the collectibility of any check delivered in connection with this contract.
Escrowee shall be fully protected in acting in accordance with any written instructions given to it hereunder and believed by it
to have been signed by the proper parties.

 

The parties agree that notwithstanding Escrowee's
role as escrow agent, Escrowee may and does represent the SELLER as legal counsel in connection with the subject matter of this
contract and otherwise.

 

RIGHT TO INSPECT

 

23.The PURCHASER shall have the right to inspect the Premises
at any reasonable time upon notice to SELLER during the two (2) days prior to the date of the Closing.

 

DELIVERY CONDITION

 

24.The SELLER shall deliver the Premises "AS IS"
as of the date of the Contract.

 

SURVEY

 

25.PURCHASER shall have the right to have a survey and description
prepared of the subject PREMISES provided it is prepared by a licensed surveyor at PURCHASER'S cost and expense. The PURCHASER'S
surveyor shall have the right to enter the Premises for this purpose, and PURCHASER agrees to indemnify and hold SELLER harmless
against any claims by such surveyor arising from entry to the Premises. If a copy of such survey and description are provided to
SELLER’S attorney prior to that date of Closing, and provided such survey is certified to SELLER, then SELLER agrees to use
such survey description in the deed of conveyance in lieu of the description set forth in this contract. SELLER makes no representation
or warranty as to the accuracy of the description supplied by the PURCHASER by virtue of its inclusion in the deed.

 

PURCHASER DEFAULT

 

26.If PURCHASER shall default hereunder, the down payment
paid by PURCHASER to SELLER on account of this agreement may, at SELLER’S option, be retained by SELLER. In the event SELLER
elects to retain the down payment, both parties shall be relieved and released of and from any further liabilities hereunder, and
PURCHASER expressly releases any lien PURCHASER may have against the property.

 

PATRIOT ACT AND ANTI-TERRORISM LAW

 

27.Each party hereto represents and
warrants to the other party and to the parties’ respective counsels herein, that such party: (i) is not listed on the United
States Treasury Department Office of Foreign Assets Control’s Specially Designated Nationals (SDN) List; (ii) is not an entity
the other party is prohibited to do business with under the USA Patriot Act and related anti-terrorism laws; (iii) will not violate
the USA Patriot Act and related anti-terrorism laws; and (iv) will not do business with any individual or entity that will violate
the USA Patriot Act and related anti-terrorism laws.

    	8

    	 

    

Each party hereto shall,
upon written request therefore, promptly provide to the other party and the parties’ respective counsels herein, a written
certification or other reasonable evidence confirming such party’s compliance with the USA Patriot Act and related anti-terrorism
laws.

 

Each party hereto shall
indemnify the other party and the parties’ respective counsels herein, in the event that such party violates the above, or
the USA Patriot Act and related anti-terrorism laws.

 

GENERAL PROVISIONS

 

28.Notices. Any notices, request, instrument or other
document to be given hereunder shall be in writing and, shall be delivered personally or sent by certified mail return receipt
requested or recognized overnight delivery service. All notices shall be deemed to have been given 48 hours following deposit in
the United States Postal Service or upon delivery to the overnight service if sent by recognized overnight delivery service or
upon delivery if by hand. Notices to be sent to the following:

 

	If to the SELLER:	Jean K. Woodward
	 	50 Riverview Drive
	 	Marlboro , New York  12542
	 	 
	With a copy to:	James R. Loeb, Esq
	 	Drake, Loeb, Heller, Kennedy, Gogerty
	 	Gaba & Rodd PLLC
	 	555 Hudson Valley Avenue, Suite 100
	 	New Windsor, New York  12553
	 	 
	If to the PURCHASER:	SONO-TEK INDUSTRIAL PARK LLC
	 	2012 Route 9W
	 	Milton , New York  12547
	 	 
	With a copy to:	Richard R. DuVall, Esq
	 	McCabe & Mack LLP
	 	63 Washington Street
	 	P. O. Box 509
	 	Poughkeepsie , New York  12602

 

Each party may change its address for the purposes
of this Paragraph by giving written notice of such change to the other party in the manner herein provided.

If this Agreement
provides for a designated period after a Notice within which to perform an act, such period shall commence on the date of receipt
or tender of the Notice. If this Agreement requires the exercise of a right by Notice on or before a certain date or within a designated
period, such right shall be deemed exercised on the date of mailing or tender of the Notice pursuant to which such right is exercised.

    	9

    	 

Severability. In case any one or
more of the provisions or parts of a provision contained in this Agreement shall for any reason be held to be invalid, illegal
or unenforceable in any respect in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other
provision or part of a provision of this Agreement.

Assignment. This Agreement may not
be assigned by the PURCHASER without the prior written consent of the SELLER, which consent shall be in the sole discretion of
the SELLER.

Merger. SELLER is not liable or bound
in any manner by express or implied warranties, guaranties, promises, statements, representations or information pertaining to
the Premises, made or furnished by any agent, employee, servant, or other person representing or purporting to represent the SELLER,
unless such warranties, guaranties, promises, statements, representations or information are expressly and specifically set forth
herein. It is understood and agreed that all understandings and Agreements heretofore had between the parties hereto are merged
in this Contract, which alone fully and completely expresses their Agreement, and that the same is entered into after full investigation,
neither party relying upon any statement or representation, not embodied in this Contract, made by the other.

Execution of Contract. It is specifically
understood that offer to sell the Premises is made by the preparation or delivery of this contract to the PURCHASER or PURCHASER’S
attorney, but the same shall be deemed an invitation of an offer to purchase on the terms therein contained without any unauthorized
changes. It is further understood that pending the acceptance by SELLER of PURCHASER’S offer by execution and delivery of
this contract to PURCHASER’S attorney, neither party shall be bound hereby, and SELLER shall be free to continue to list
the premises for sale, and entertain offers from other prospective PURCHASERS.

 

PROVISIONS NOT TO SURVIVE CLOSING

 

29. No provision of this contract shall survive closing
of title and delivery of the deed, except as otherwise expressly provided herein.

 

AMENDMENTS

 

30.The PURCHASER acknowledges that this contract was prepared
by the attorney for the SELLER. To the extent that changes made by the PURCHASER or by the PURCHASER'S attorney are not initialed
by the SELLER, those changes shall not be binding upon the SELLER and the terms of this contract as originally prepared in that
respect shall be binding upon all parties hereto.

 

    	10

    	 

    

ENTIRE AGREEMENT

 

31. All prior understandings and agreements between SELLER
and PURCHASER are merged in this contract. It completely expresses their full agreement. It has been entered into after full investigation,
neither party relying upon any statements made by anyone else that are not set forth in this contract.

 

	 	 	/s/ Jean K. Woodward
	 	 	Jean K. Woodward, SELLER
	 	 	 
	 	 	 
	 	SONO-TEK INDUSTRIAL PARK LLC
	 	 	 
	 	 	 
	 	 By:	/s/ Stephen J. Bagley
	 	 	Stephen J. Bagley, PURCHASER

 

 

 

JRL/ef/159091

7201-63758

11/22/10

    	11

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