Document:

EX-10.3

 Exhibit 10.3 

FIRST AMENDMENT TO 
 EMPLOYMENT
AGREEMENT 
 SHARE TRANSFER AGREEMENT 

AND 
 RESTRICTIVE COVENANT AGREEMENT

 This FIRST AMENDMENT TO EMPLOYMENT AGREEMENT, SHARE TRANSFER AGREEMENT AND RESTRICTIVE COVENANT AGREEMENT (this “First
Amendment”), dated as of June 2, 2016, by and among Colony Capital, Inc., a Maryland corporation, (the “Company”) and Richard B. Saltzman an individual (“Executive”). The Company and Executive are
referred to herein collectively as the “Parties.” 
 RECITALS: 

WHEREAS, NorthStar Realty Finance Corp., a Maryland corporation, the Company, NorthStar Asset Management Group, Inc., a Delaware corporation,
and the other parties named therein, have entered into that certain Agreement and Plans of Merger, dated as of June 2, 2016, (the “Merger Agreement”) pursuant to which, among other things, the Company will be merged into New
Polaris (as defined in the Merger Agreement) (the “Merger Transaction”), with New Polaris as the surviving corporation (the “Surviving Company”); 

WHEREAS, Executive and the Company have entered into that certain Employment Agreement, dated as of December 23, 2014 (the
“Employment Agreement”); 
 WHEREAS, Executive and the Company Group have entered into that certain Share Transfer and
Liquidated Damages Agreement, dated as of December 23, 2014 (the “Share Transfer Agreement”); 
 WHEREAS, Executive
and the Company have entered into that certain Restrictive Covenant Agreement, dated as of December 23, 2014 (the “Restrictive Covenant Agreement”); and 

WHEREAS, the Parties desire to amend the Employment Agreement, Share Transfer Agreement and Restrictive Covenant Agreement upon the terms and
subject to the conditions herein. 
 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, it is agreed as follows: 
 SECTION 1. Defined Terms; References. 

Each reference to “hereof”, “hereunder”, “herein” and “hereby” and each other similar reference and
each reference to “this Agreement” and each other similar reference contained in each of the Employment Agreement, the Share Transfer Agreement and the Restrictive Covenant Agreement shall, after the closing of the Merger Transaction refer
to the Employment Agreement, Share Transfer Agreement and Restrictive Covenant Agreement as amended hereby. For the avoidance of doubt, any references to “date hereof,” or “date of this Agreement,” in the Employment Agreement,
Share Transfer Agreement or Restrictive Covenant Agreement, shall continue to refer to December 23, 2014. 
 SECTION 2. Amendments
to the Agreements. 
 (a) Effective as of the closing of the Merger Transaction, the Employment Agreement shall be amended to delete the
stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double- underlined text (indicated textually in the same manner as the following example:
double-underlined text) as set forth in the pages of the amended Employment Agreement attached as Annex I hereto (the “Amended Employment Agreement”). 

 (b) Effective as of the closing of the Merger Transaction, the Share Transfer Agreement shall be
amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double- underlined text (indicated textually in the same manner as the following example:
double-underlined text) as set forth in the pages of the amended Share Transfer Agreement attached as Annex II hereto (the “Amended Share Transfer
Agreement”). 
 (c) Effective as of the closing of the Merger Transaction, the Restrictive Covenant Agreement shall be amended to
delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double- underlined text (indicated textually in the same manner as the following example:
double-underlined text) as set forth in the pages of the amended Restrictive Covenant Agreement attached as Annex III hereto (the “Amended Restrictive Covenant
Agreement”). 
 SECTION 3. Conditions to Effectiveness. 

(a) The effectiveness of each of the Amended Employment Agreement, Amended Share Transfer Agreement and the Amended Restrictive Covenant
Agreement is subject to and conditioned upon the closing of the Merger Transaction. Each of the Amended Employment Agreement, Amended Share Transfer Agreement and the Amended Restrictive Covenant Agreement shall become effective immediately as of
the closing of the Merger Transaction. 
 SECTION 4. Effect of the Merger. Effective as of the closing of the Merger Transaction, the
Surviving Company shall assume all of the rights and obligations of the Company under the Amended Employment Agreement, and Executive shall become Executive Chairman of the Surviving Company. 

SECTION 5. Governing Law. This First Amendment shall be governed by, and construed in accordance with, the laws of the State of
California applicable to agreements entered into and to be performed entirely within such state. 
 SECTION 6. Counterparts. This
First Amendment may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Delivery of an executed counterpart of a signature page to
this First Amendment by facsimile or electronic (i.e., “pdf” or “tif”) transmission shall be effective as delivery of a manually executed counterpart of this First Amendment. 

SECTION 7. Miscellaneous. The provisions of this First Amendment are deemed incorporated as of the closing of the Merger Transaction
into the Employment Agreement, Share Transfer Agreement and Restrictive Covenant Agreement, as applicable, as if fully set forth therein. 

[Remainder of Page Intentionally Left Blank.] 

  
 2 

 IN WITNESS WHEREOF, the Patties have caused this First Amendment to be duly executed as of the
date first above written. 
  

			
	THE COMPANY:
	
	Colony Capital, Inc.
		
	By:	 	 /s/ Mark M. Hedstrom

	Name: Mark M. Hedstrom
	Title: Chief Operating Officer

 Signature Page to Saltzman First Amendment to Saltzman 

Employment Agreement, Share Transfer Agreement and Restrictive Covenant Agreement 

 
	
	EXECUTIVE:
	
	/s/ Richard B. Saltzman
	Richard B. Saltzman

 Signature Page to Saltzman First Amendment to 

Employment Agreement, Share Transfer Agreement and Restrictive Covenant Agreement 

 ANNEX I 

AMENDED EMPLOYMENT AGREEMENT 

[See Attached] 

 EXECUTION VERSION 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as of December 23, 2014, is made by and between Colony
Financial, Inc., a Maryland corporation (“CFI”), and Richard B. Saltzman (the “Executive”). CFI, together with its subsidiaries is hereinafter referred to as “the Company,” and where the context permits,
references to “the Company” shall include the Company and any successor to the Company. 
 WHEREAS, certain businesses of
the Company are currently externally managed and advised by a subsidiary of Colony Capital, LLC (“CC”) pursuant to the terms of a management agreement; 

WHEREAS, CFI, CC, Colony Capital Holdings, LLC, a Delaware limited liability company (“CC Holdings”), Colony Capital
OP Subsidiary, LLC, a Delaware limited liability company (“NewCo”), CCH Management Partners I, LLC (“CCH”), FHB Holding LLC, a Delaware limited liability company, Richard B. Saltzman and CFI RE Masterco LLC, a
Delaware limited liability company (the “OP”) have entered into that certain Contribution and Implementation Agreement, dated as of December 23, 2014 (the “Contribution Agreement”), pursuant to which, among
other things, CC Holdings, CC and CCH will contribute to the OP and the OP will acquire from CC Holdings, CC and CCH the membership interests in NewCo held by CC Holdings, CC and CCH (which constitute all of the membership interests of NewCo) (along
with the other transactions contemplated thereby, the “Contribution”) and the management of the Company will be internalized; and 

WHEREAS, CFI desires to enter into this Agreement with the Executive, effective as of the closing of the Contribution (the date on
which such closing occurs, the “Effective Date”), pursuant to which the Executive will become employed by CFI Operating Company, LLC or one of its subsidiaries (as applicable, the “Operating Entity”) and will
continue to serve as the Chief Executive Officer and President of CFI.; and 

WHEREAS, NorthStar Realty Finance Corp., a Maryland corporation, CFI, NorthStar
Asset Management Group, Inc., a Delaware corporation, and the other parties named therein, have entered into that certain Agreement and Plans of Merger, dated as of June 2, 2016, (the “Merger Agreement”) pursuant to which, among other
things, CFI will be merged into New Polaris (as defined in the Merger Agreement) (the “Merger Transaction”), with New Polaris as the surviving corporation (the “Surviving Company”). 

NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants, terms and conditions set forth herein, and other
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. EMPLOYMENT
TERM. The Executive’s employment under the terms and conditions of this Agreement shall commence on the Effective Date and shall expire on the fifth anniversary of the Effective Date (the “Initial Term”); provided,
however, that on the fifth anniversary of the Effective Date and on each subsequent anniversary thereof, the term of this Agreement shall automatically be extended for an additional one-year period (each a “Renewal Term”)
unless, not later than 180 days prior to the expiration of the Initial Term or the then-current Renewal Term, as applicable, either party provides written notice to the other 

 
party hereto that such extension shall not take effect (a “Non-Renewal Notice”). The period during which the Executive is employed by the Company during the Initial Term and any
Renewal Term pursuant to this Agreement is referred to herein as the “Employment Term”. Notwithstanding anything set forth in this Section 1 to the contrary, the Employment Term and the Executive’s employment shall earlier
terminate immediately upon the termination of the Executive’s employment pursuant to Section 4 hereof. 
 2. POSITION; REPORTING AND DUTIES;
LOCATION. 
 (a) Position and Reporting. During the Employment Term, the Executive shall serve as the Chief Executive Officer and
President of CFI. The Executive shall report directly to the Executive Chairman of the Company, and, from and after the date of the closing of the Merger Transaction, the Executive Chairman
and the Executive Vice Chairman of the Company, during the Employment Term unless otherwise determined by the Board of Directors of CFI (the “Board”). 

(b) Duties and Responsibilities. 

(i) During the Employment Term, the Executive shall devote substantially all of his full business time and attention to the performance of his
duties hereunder, shall faithfully serve the Company and shall have no other employment which is undisclosed to the Company or which conflicts with his duties under this Agreement; provided, that, nothing contained herein shall
prohibit the Executive from (A) participating in trade associations or industry organizations, (B) engaging in charitable, civic, educational or political activities, (C) delivering lectures or fulfilling speaking engagements,
(D) engaging in personal investment activities and personal real estate-related activities for himself and his family or (E) accepting directorships or similar positions (together, the “Personal Activities”), in each case
so long as the Personal Activities do not unreasonably interfere, individually or in the aggregate, with the performance of the Executive’s duties to the Company under this Agreement. The Company hereby acknowledges and approves the current
activities of the Executive as set forth on Schedule 1 hereto, each of which shall be deemed a Personal Activity. Notwithstanding the foregoing, to the extent that the Personal Activities include the Executive providing services to any for-profit
company (excluding CC and CFI, and any subsidiaries or portfolio companies thereof) as a member of such company’s board of directors, only two such directorships shall be permitted as a Personal Activity. 

(ii) In serving in his capacity as the Chief Executive Officer and President of CFI during the Employment Term, the Executive shall
(A) perform such duties and provide such services as are reasonably consistent with those provided by the Executive to CFI in his role as its Chief Executive Officer and President prior to the Effective Date and (B) provide such other
duties as are consistent with his role as Chief Executive Officer and President of CFI, as reasonably requested from time to time by the Board or the Executive Chairman. 

(iii) The parties acknowledge and agree that all of the compensation and benefits provided to the Executive hereunder will be in respect of
services performed by the Executive for the Operating Entity. 

  
 2 

 (c) Location of Employment. The Executive’s principal place of business during the
Employment Term shall be at the Company’s office in New York City; provided, that, the Executive may perform his duties in such other locations in his reasonable discretion so long as he performs such duties in a manner consistent
with his position and responsibilities and takes into consideration the needs of the Company; provided further, that the Executive may be required to engage in travel during the Employment Term in the performance of his duties
hereunder including at the Board’s reasonable request. In the event such travel results in the Executive having to perform a significant portion of his duties at a Company location other than his principal place of business for a significant
period of time, and Executive determines to relocate his principal place of residence to a city in proximity to such other Company location, on a permanent or temporary basis, the Company shall pay for all relocation and return expenses on a
tax-grossed up basis, with such payments subject to approval, not to be unreasonably withheld, by the Board or a committee of directors delegated by the Board. 

3. COMPENSATION AND BENEFITS. 
 (a)
Base Salary. During the Employment Term, the Company will pay to the Executive a base salary at the annualized rate of not less than $800,000 (the base salary in effect from time to time, the “Base Salary”). The Base Salary
will be paid to the Executive in accordance with the Company’s customary compensation practices from time to time in effect for the Company’s senior executive officers. The Board (or a committee of directors delegated by the Board) will
review the Base Salary from time to time, but at least annually, during the Employment Term, but may not reduce the Executive’s then-existing Base Salary without the Executive’s prior written consent and agreement. 

(b) Annual Cash Bonus. 

(i) For each calendar year during the Employment Term beginning with the calendar year in which the Effective Date occurs, the Executive shall
be given an opportunity to earn an annual incentive cash bonus based on an evaluation by the Board (or a committee of directors delegated by the Board) of the Executive’s performance in respect of the applicable calendar year; provided,
that, the Board or such committee may determine prior to the beginning of any such calendar year to instead condition the payment of all or a portion of the cash bonus with respect to the applicable calendar year upon the achievement of
performance measures determined by the Board or such committee in consultation with the Executive (as applicable, the “Annual Bonus”). The Executive’s target Annual Bonus for each calendar year during the Employment Term
(including the calendar year in which the Effective Date occurs) shall be no less than $2,400,000 (such amount, as increased from time to time, the “Target Bonus Amount”). If the Board (or a committee of directors delegated by the
Board), establishes reasonable performance measures as provided for above, the actual Annual Bonus amount paid to the Executive in respect of any calendar year during the Employment Term shall be based on the achievement of the applicable
performance measures and may be less or more than the applicable Target Bonus Amount. The Board (or a committee of directors delegated by the Board) will review the Target Bonus Amount from time to time, but at least annually, during the Employment
Term, but may not reduce the Executive’s then-existing Target Bonus Amount without the Executive’s prior written consent and agreement. The Executive’s Annual Bonus for the calendar year in which the Effective Date occurs shall not be
pro-rated. 

  
 3 

 (ii) Any Annual Bonus payment that becomes payable to the Executive hereunder will be paid to him
in a cash lump sum by no later than March 15 of the calendar year following the calendar year to which it relates (and no later than the date on which bonuses are paid to other senior executive officers of CFI); provided, that,
except as otherwise set forth in this Agreement, the Executive is an active employee as of, and has not given or received notice of termination of employment as of, the date such payment would otherwise be made. 

(c) Equity Incentives and Related Awards. 

(i) For each calendar year during the Employment Term beginning with the calendar year in which the Effective Date occurs, the Executive shall
be eligible to receive equity and equity-based incentive awards (“LTIP Awards”), with an annual target LTIP Award opportunity equal to 350% of Base Salary (the target amount in effect from time to time, the “Target LTIP
Award”). The target LTIP Award for any calendar year and any applicable performance measures will be determined by the Board (or a committee of directors delegated by the Board) in consultation with the Executive. The Board (or a committee
of directors delegated by the Board) will review the Target LTIP Award from time to time, but at least annually, during the Employment Term, but may not reduce the Executive’s then-existing Target LTIP Award without the Executive’s prior
written consent and agreement. 
 (ii) The Executive shall (x) continue to receive allocations in respect of carried interests,
incentive fees and other such remuneration in respect of funds and similar vehicles, as applicable, managed by the Company that were granted to the Executive prior to the Effective Date and (y) be eligible to be granted new allocations in
respect of carried interests, incentive fees and other such remuneration in respect of funds and similar vehicles, as applicable, managed by the Company (collectively, (“Fund Incentives”). Allocations of all Fund Incentives provided
to executive officers and other employees of the Company shall be made as determined by the Board of Directors (or a committee of the directors delegated by the Board) in consultation with the Executive. 

(iii) The terms and conditions (including with respect to vesting) of any LTIP Awards and Fund Incentives shall be no less favorable than the
terms and conditions of any LTIP Awards and Fund Incentives, as applicable, granted to the executive officers of the Company during the same calendar year. 

(d) Retirement, Welfare and Fringe Benefits. During the Employment Term, the Executive shall be eligible to participate in the
retirement savings, medical, disability, life insurance, perquisite and other welfare and fringe benefit plans applicable to senior executive officers of CFI generally in accordance with the terms of such plans as are in effect from time to time.
The foregoing shall not be construed to limit the ability of the Company to amend, modify or terminate any such benefit plans, policies or programs in accordance with their terms or to cease providing such benefit plans, policies or programs at any
time and from time to time; provided, that subject to the last sentence of this Section 3(d), the terms and conditions imposed on Executive’s participation in such plans, policies or programs and any adverse amendments, terminations
and modifications are at least as favorable to Executive as those applicable to the other senior executives. In addition, the Executive shall continue to receive the other fringe benefits and perquisites provided to the Executive by CC and its
affiliates immediately prior to the Effective Date. 

  
 4 

 (e) Paid Time Off. During the Employment Term, the Executive shall be eligible to
participate in the paid time off policies generally applicable to CFI’s senior executives as are in effect from time to time. 
 (f)
Business Expenses. The Company shall pay or reimburse the Executive for all reasonable out-of-pocket expenses that the Executive incurs in connection with his employment during the Employment Term or his employment by CC during the 90-day
period prior to the Effective Date upon presentation of expense statements or vouchers and such other information as the Company may require in accordance with the generally applicable policies and procedures of the Company applicable to CFI’s
senior executive officers as are in effect from time to time. No expense payment or reimbursement under this Section 3(f) shall be “grossed up” or increased to take into account any tax liability incurred by the Executive as a result
of such payment or reimbursement. 
 (g) Insurance; Indemnification. The Executive shall be covered by such comprehensive
directors’ and officers’ liability insurance and errors and omissions liability insurance as the Company shall have established and maintained in respect of its directors and officers generally at its expense, and the Company shall cause
such insurance policies to be maintained in a manner reasonably acceptable to the Executive, both during and in accordance with the provisions of Section 4(a)(i)(D) below, after Executive’s employment with the Company. The Executive shall
also be entitled to indemnification rights, benefits and related expense advances and reimbursements to the same extent as any other director or officer of CFI and to the maximum extent permitted under applicable law pursuant to an indemnification
agreement (the “Indemnification Agreement”). 
 (h) Attorneys’ Fees. The Company shall promptly pay or
reimburse the Executive for reasonable attorneys’ fees incurred by the Executive in connection with the review, negotiation, drafting and execution of this Agreement, the Restrictive Covenants Agreement, the Share Transfer and Liquidated
Damages Agreement and any related arrangements, in an aggregate amount not to exceed $50,000, subject to the Executive providing the Company with reasonable documentation of such fees within thirty (30) days following the Effective Date. The
Company shall reimburse the Executive for such fees’ within ten (10) business days following Executive’s submission to the Company of the documentation evidencing the fees.. 

4. TERMINATION OF EMPLOYMENT. 

(a) General Provisions. 

(i) Upon any termination of Executive’s employment with the Company, the Executive shall be entitled to receive the following:
(A) any accrued but unpaid Base Salary and vacation (determined in accordance with Company policy) through the date of termination (paid in cash within thirty (30) days (or such shorter period required by applicable law) following the date
of termination); (B) reimbursement for expenses and fees incurred by the Executive prior to the date of termination in accordance with Sections 3(f) and 3(h); (C) vested and accrued benefits, if any, to which the Executive may be entitled
under the Company’s employee benefit plans as of the date of termination (including continued access to health insurance coverage for the Executive and his dependents during the Executive’s

  
 5 

 
lifetime to be paid for in full by the Executive (including any taxes for which the Executive or the Company may incur solely as a result of the Company providing such access)); and (D) any
additional amounts or benefits due under any applicable plan, program, agreement or arrangement of the Company (including continuing “tail” indemnification and directors and officers liability insurance for actions and inactions occurring
while the Executive provided services for CFI and its affiliates and continued coverage for any actions or inactions by the Executive while providing cooperation under this Agreement), including any such plan, program, agreement or arrangement
relating to equity or equity-based awards (the amounts and benefits described in clauses (A) through (D) above, collectively, the “Accrued Benefits”). The Accrued Benefits shall in all events be paid in accordance with the
Company’s payroll procedures, expense reimbursement procedures or plan terms, as applicable. 
 (ii) During any notice period required
under this Section 4, (A) the Executive shall remain employed by the Company and shall continue to be bound by all the terms of this Agreement and any other applicable duties and obligations to the Company, (B) the Company may direct
the Executive not to report to work, and (C) the Executive shall only undertake such actions on behalf of the Company, consistent with his position, as expressly directed by the Company. 

(b) Termination for Cause or by the Executive without Good Reason. 

(i) The Employment Term and the Executive’s employment hereunder may be terminated at any time either (A) by the Company for
“Cause” (as defined and determined below), effective as set forth in Section 4(b)(iii), or (B) by the Executive without Good Reason, effective 30 days following the date on which notice of such termination is given by the
Executive to the Company. 
 (ii) If the Executive’s employment is terminated by the Company for Cause, or by the Executive without Good
Reason, the Executive shall only be entitled to receive the Accrued Benefits. 
 (iii) For purposes of this Agreement, a termination for
“Cause” shall mean a termination of the Executive’s employment with the Company because of (A) the Executive’s conviction of, or plea of no contest to, any felony under the laws of the United States or any state within the
United States (other than a traffic-related felony) which termination shall become effective immediately as of the date the Board determines to terminate the Agreement, which action must be taken on or after the date of such conviction or plea or
within 60 days thereafter; (B) the Executive’s willful and gross misconduct in connection with the performance of his duties to the Company (other than by reason of his incapacity or disability), it being expressly understood that the
Company’s dissatisfaction with the Executive’s performance shall not constitute Cause; or (C) a continuous, willful and material breach by the Executive of this Agreement after written notice of such breach has been provided to the
Executive by the Board, provided, that, in no event shall any action or omission in subsections (B) or (C) constitute “Cause” unless (1) the Company gives notice to the Executive stating that the Executive will be terminated
for Cause, specifying the particulars thereof in reasonable detail and the effective date of such termination (which shall be no less than ten (10) business days following the date on which such written notice is received by the Executive) (the
“Cause Termination Notice”), (2) the Company provides the 

  
 6 

 
Executive and his counsel with an opportunity to appear before the Board to rebut or dispute the alleged reason for termination on a specified date that is at least three business days following
the date on which the Cause Termination Notice is given, but prior to the stated termination date described in clause (1), (3) a majority of the Board (calculated without regard to the Executive) determines that the Executive has failed to
materially cure or cease such misconduct or breach within ten (10) business days after the Cause Termination Notice is given to him and (4) in the case of subsections (B) and (C) above, the Company has suffered, or is reasonably
expected to suffer, material economic or reputational harm. For purposes of the foregoing sentence, no act, or failure to act, on the Executive’s part shall be considered willful unless done or omitted to be done, by him not in good faith and
without reasonable belief that his action or omission was in the best interest of the Company, and any act or omission by the Executive pursuant to the authority given pursuant to a resolution duly adopted by the Board or on the advice of counsel
for the Company will be deemed made in good faith and in the best interests of the Company. 
 (c) Termination by the Company without
Cause or by the Executive for Good Reason. 
 (i) The Employment Term and the Executive’s employment hereunder may be terminated
(A) by the Company at any time without Cause, effective four (4) business days following the date on which written notice to such effect is delivered to the Executive, or (B) by the Executive for “Good Reason” (as defined
and determined below), effective as set forth in Section 4(c)(iii). 
 (ii) If the Executive’s employment is terminated by the
Company without Cause or by the Executive for Good Reason, the Company shall pay or provide to the Executive (A) the Accrued Benefits and (B) upon the Executive’s execution of a separation agreement containing a general release of
claims substantially in the form attached as Exhibit A hereto (the “Release”), and the expiration of the applicable revocation period with respect to such Release within 60 days following the date of termination (the date on which
the Release becomes effective, the “Release Effective Date”): 
 (A) A lump sum cash payment equal to the product of
(i) three and (ii) the sum of (1) the Base Salary in effect immediately prior to the date of termination (without regard to any reduction that gives rise to Good Reason) and (2) (x) if such termination occurs on or after the
date on which the Annual Bonus, if any, is paid to the Executive in respect of the second calendar year following the calendar year in which the Effective Date occurs (the “Third Annual Bonus”), the average Annual Bonus paid in
respect of each of the three calendar years prior to the date of termination or (y) if such termination occurs prior to the date on which the Third Annual Bonus, if any, is paid, the Target Bonus Amount in effect immediately prior to the date
of termination (without regard to any reduction that gives rise to Good Reason), payable on the first regularly scheduled payroll date of the Company following the Release Effective Date and in no event later than the 60th day following the date of termination (the actual date of payment, the “Severance Payment Date”); provided, that, if the 60 day period referenced in
Section 4(c)(ii) begins in one calendar year and ends in a subsequent calendar year, the Severance Payment Date will in all events occur in the second calendar year; 

  
 7 

 (B) A lump sum cash payment equal to the Annual Bonus, if any, that the Executive would have
received in respect of the calendar year prior to the calendar year in which the termination occurs had the Executive remained an active employee of the Company, based on the achievement of the applicable performance measures, to the extent unpaid
as of the termination date, payable on the date such amount would have been paid had the Executive continued in employment (the “Unpaid Bonus”); 

(C) A lump-sum payment equal to the product of (1) the Target Annual Bonus in effect for the calendar year in which the termination
occurs, and (2) a fraction, the numerator of which shall equal the number of days during the year in which the termination date occurs that the Executive was employed by the Company and the denominator of which shall equal 365, payable on the
Severance Payment Date (the “Pro-Rated Bonus”); 
 (D) Continuation of the Company’s contributions necessary to
maintain the Executive’s coverage for the 24 calendar months immediately following the end of the calendar month in which the termination date occurs under the medical, dental and vision programs in which the Executive participated immediately
prior to his termination of employment (and such coverage shall include the Executive’s eligible dependents); provided, that, if the Company determines in good faith that such contributions would cause adverse tax consequences to
the Company or the Executive under applicable law, the Company shall instead provide the Executive with monthly cash payments during such 24-month period in an amount that, after reduction for applicable taxes (assuming the Executive pays taxes at
the highest marginal rates in the applicable jurisdictions), is equal to the amount of the Company’s monthly contributions referenced above. The applicable period of health benefit continuation under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”) shall begin on the expiration of such 24-month period; 
 (E) Full vesting as of the date of
termination of any and all equity or equity-based awards relating to the securities of the Company and any Fund Incentives that are outstanding and unvested immediately prior to the date of such termination; and 

(iii) For purposes of this Agreement, “Good Reason” shall mean any action by the Company, in each case without the
Executive’s prior written consent, that (A) results in a material diminution in the Executive’s duties, authority or responsibilities or a diminution in the Executive’s title or position; provided that failing to maintain
Executive on the Board shall constitute Good Reason; (B) requires the Executive to report to any person other than the Executive Chairman or the Board (or any sub-committee thereof); (C) reduces the Base Salary, Target Annual Bonus or
Target LTIP Award then in effect; (D) relocates the Executive’s principal place of employment to a location more than 25 miles from the location in effect immediately prior to such relocation; or (E) constitutes a material breach by
the Company of this Agreement or any other material agreement between the Executive and the Company; provided, that, in no event shall the occurrence of any such condition constitute Good Reason unless (1) the Executive gives
notice to the Company of the existence of the Executive’s knowledge of the condition giving rise to Good Reason within 90 days following its initial existence, (2) the Company fails to cure such condition within 30 days following the date
such notice is given and (3) the Executive terminates his employment with the Company within 30 days following the expiration of such cure period. 

  
 8 

 (d) Termination Due to Death or Disability. 

(i) The Employment Term and the Executive’s employment hereunder (A) may be terminated by the Company as a result of the
Executive’s “Disability” (as defined and determined below) and (B) shall terminate immediately as a result of the Executive’s death. 

(ii) If the Executive’s employment is terminated by the Company as a result of the Executive’s Disability or terminates as a result
of the Executive’s death, the Company shall provide the Executive (or his estate) with: (A) the Accrued Benefits, (B) the Unpaid Bonus, (C) a lump-sum payment equal to the Pro-Rated Bonus with respect to the calendar year in
which the termination occurs and (D) full vesting as of the date of termination of any and all equity or equity-based awards relating to the securities of the Company and any Fund Incentives that are outstanding and unvested immediately prior
to the date of such termination. 
 (iii) For purposes of this Agreement, “Disability” shall mean a physical or mental
incapacity that substantially prevents the Executive from performing his duties hereunder and that has continued for at least 180 consecutive days. Any dispute as to whether or not the Executive is disabled within the meaning of the preceding
sentence shall be resolved by a qualified, independent physician reasonably satisfactory to the Executive and the Company, and the determination of such physician shall be final and binding upon both the Executive and the Company. All fees and
expenses of any such physician shall be borne solely by the Company. 
 (e) Non-Renewal of Agreement. 

(i) If the Company gives a Non-Renewal Notice to the Executive, the Employment Term and the Executive’s employment hereunder shall
terminate as of the expiration of the Initial Term or then-current Renewal Term, as applicable, and the Company shall provide the Executive with all of the payments and benefits set forth in Section 4(c) hereof, subject to his execution and
non-revocation of the Release by the Release Effective Date. 
 (ii) If the Executive gives a Non-Renewal Notice to the Company, the
Employment Term and the Executive’s employment hereunder shall terminate as of the expiration of the Initial Term or then-current Renewal Term, as applicable, and the Company shall provide the Executive with (w) the Accrued Benefits,
(x) any Unpaid Bonus in respect of the calendar year prior to the calendar year in which the termination occurs, (y) a Pro-Rated Bonus in respect of the calendar year in which the termination occurs and (z) in the event that such
Notice of Non-Renewal is given by the Executive upon his retirement from the Company on or after his attainment of age 65, full vesting as of the date of termination of any and all equity or equity-based awards relating to the securities of the
Company and any Fund Incentives that are outstanding and unvested immediately prior to the date of such termination. 
 (f) Return of
Property. Upon any termination of the Executive’s employment hereunder, the Executive shall as soon as practicable following such termination deliver or cause to be delivered to the Company the tangible property owned by the Company, which
is in the possession or control of the Executive. Notwithstanding the foregoing, the Executive 

  
 9 

 
shall be permitted to retain his calendar and his contacts and investor lists, all compensation-related plans and agreements, any documents reasonably needed for personal tax purposes and his
personal notes, journals, diaries and correspondence (including personal emails). In addition, the Executive shall be able to retain his mobile phone(s) and personal computer(s) and his cell phone number(s). 

(g) Resignation as Officer or Director. Unless requested otherwise by the Company, upon any termination of the Executive’s
employment hereunder the Executive shall resign each position (if any) that the Executive then holds as an officer or director of the Company. The Executive’s execution of this Agreement shall be deemed the grant by the Executive to the
officers of the Company of a limited power of attorney to sign in the Executive’s name and on the Executive’s behalf any such documentation as may be required to be executed solely for the limited purposes of effectuating such
resignations. 
 (h) No Set-Off or Mitigation. The Company’s obligations to make payments under this Agreement shall not be
affected by any set-off, counterclaim, recoupment or other claim the Company or any of its affiliates may have against the Executive. The Executive does not need to seek other employment or take any other action to mitigate any amounts owed to the
Executive under this Agreement, and those amounts shall not be reduced if the Executive does obtain other employment. 
 5. RESTRICTIVE COVENANTS.
The Executive is entering into the Restrictive Covenant Agreement, substantially in the form attached as Exhibit B hereto (the “Restrictive Covenant Agreement”), as of the date hereof. The Restrictive Covenant Agreement shall become
effective as of the Effective Date and shall continue in effect at all applicable times following the Effective Date in accordance with the terms and conditions thereof. 

6. SECTION 280G. 
 (a) Treatment of
Payments. Notwithstanding anything in this Agreement or any other plan, arrangement or agreement to the contrary, in the event that an independent, nationally recognized, accounting firm which shall be designated by the Company with the
Executive’s written consent (which consent shall not be unreasonably withheld) (the “Accounting Firm”) shall determine that any payment or benefit received or to be received by the Executive from the Company or any of its affiliates
or from any person who effectuates a change in control or effective control of the Company or any of such person’s affiliates (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and
benefits, the “Total Payments”) would fail to be deductible under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), or otherwise would be subject (in whole or part) to the excise tax
imposed by Section 4999 of the Code (the “Excise Tax”) then the Accounting Firm shall determine if the payments or benefits to be received by the Executive that are subject to Section 280G of the Code shall be reduced to
the extent necessary so that no portion of the Total Payments is subject to the Excise Tax, but such reduction shall occur if and only to the extent that the net amount of such Total Payments, as so reduced (and after subtracting the net amount of
federal, state and local income taxes, and employment, Social Security and Medicare taxes on such reduced Total Payments), is greater than or equal to the net amount of such Total Payments without such reduction (but after subtracting the net amount
of federal, state and local income taxes and employment, Social Security and Medicare taxes on such Total Payments and the amount 

  
 10 

 
of Excise Tax (or any other excise tax) to which the Executive would be subject in respect of such unreduced Total Payments). For purposes of this Section 6(a), the above tax amounts shall
be determined by applying the highest marginal rate under Section 1 of the Code and under state and local laws which applied (or is likely to apply) to the Executive’s taxable income for the tax year in which the transaction which causes
the application of Section 280G of the Code occurs, or such other rate(s) as the Accounting Firm determines to be likely to apply to the Executive in the relevant tax year(s) in which any of the Total Payments is expected to be made. If the
Accounting Firm determines that the Executive would not retain a larger amount on an after-tax basis if the Total Payments were so reduced, then the Executive shall retain all of the Total Payments. 

(b) Ordering of Reduction. In the case of a reduction in the Total Payments pursuant to Section 6(a), the Total Payments will be
reduced in the following order: (i) payments that are payable in cash that are valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last
reduced first; (ii) payments and benefits due in respect of any equity valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a), with the highest values reduced first (as such values are determined under Treasury
Regulation Section 1.280G-1, Q&A 24) will next be reduced; (iii) payments that are payable in cash that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last
reduced first, will next be reduced; (iv) payments and benefits due in respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values reduced first (as such values are
determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; and (v) all other non-cash benefits not otherwise described in clauses (ii) or (iv) will be next reduced pro-rata. 

(c) Certain Determinations. For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise
Tax: (i) no portion of the Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code will
be taken into account; (ii) no portion of the Total Payments will be taken into account which, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to the Executive and selected by the Accounting Firm, does not
constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments will be taken
into account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as set forth in
Section 280G(b)(3) of the Code) that is allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments will be determined by the Accounting Firm in
accordance with the principles of Sections 280G(d)(3) and (4) of the Code. The Executive and the Company shall furnish such documentation and documents as may be necessary for the Accounting Firm to perform the requisite calculations and
analysis under this Section 6 (and shall cooperate to the extent necessary for any of the determinations in this Section 6(c) to be made), and the Accounting Firm shall provide a written report of its determinations hereunder, including
detailed supporting calculations. If the Accounting Firm determines that aggregate Total Payments should be reduced as described above, it shall promptly notify the Executive and the 

  
 11 

 
Company to that effect. In the absence of manifest error, all determinations by the Accounting Firm under this Section 6 shall be binding on the Executive and the Company and shall be made
as soon as reasonably practicable and in no event later than fifteen (15) days following the later of the Executive’s date of termination of employment or the date of the transaction which causes the application of Section 280G of the
Code. The Company shall bear all costs, fees and expenses of the Accounting Firm and any legal counsel retained by the Accounting Firm. 

(d) Additional Payments. If the Executive receives reduced payments and benefits by reason of this Section 6 and it is established
pursuant to a determination of a court of competent jurisdiction which is not subject to review or as to which the time to appeal has expired, or pursuant to an Internal Revenue Service proceeding, that the Executive could have received a greater
amount without resulting in any Excise Tax, then the Company shall thereafter pay the Executive the aggregate additional amount which could have been paid without resulting in any Excise Tax as soon as reasonably practicable following such
determination. 
 7. ASSIGNMENT; ASSUMPTION OF AGREEMENT. No right, benefit or interest hereunder shall be subject to assignment, encumbrance,
charge, pledge, hypothecation or setoff by the Executive in respect of any claim, debt, obligation or similar process. This Agreement may not be assigned by CFI and CFI will require any successor (whether direct or indirect, by purchase, merger,
consolidation, or otherwise) to all or substantially all of the business or assets of the Company to assume expressly and to agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it
if no such succession had taken place. 
 8. MISCELLANEOUS PROVISIONS. 

(a) No Breach of Obligation to Others. The Executive represents and warrants that his entering into this Agreement does not, and that
his performance under this Agreement and consummation of the transactions contemplated hereby and thereby will not, violate the provisions of any agreement or instrument to which the Executive is a party or any decree, judgment or order to which the
Executive is subject, and that this Agreement constitutes a valid and binding obligation of the Executive enforceable against the Executive in accordance with its terms. 

(b) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable
to agreements entered into and to be performed entirely within such state. 
 (c) Entire Agreement. This Agreement, together with the
documents referred to herein, constitutes and expresses the whole agreement of the parties hereto with reference to any of the matters or things herein provided for or herein before discussed or mentioned with reference to the Executive’s
employment with the Company, and it cancels and replaces any and all prior understandings, agreements and term sheets between the Executive and CFI and any of its subsidiaries or affiliates; provided, that, this Agreement shall not alter,
amend or supersede (i) any Fund Incentives issued to Executive by CC in connection with his prior employment, (ii) any interest the Executive or any of his affiliates may have in any general partner of any fund or related entity managed by
the Company, (iii) any rights the Executive may have under the Contribution Agreements, (iv) the Ancillary Documents (as defined in the 

  
 12 

 
Contribution Agreement), (v) the Indemnification Agreement referenced in Section 3(g) of this Agreement to which the Executive or any of his affiliates is a party or beneficiary and
(vi) any equity grant made by CFI to the Executive prior to the Effective Date. All promises, representations, collateral agreements and understandings not expressly incorporated in this Agreement are hereby superseded by this Agreement. 

(d) Notices. All notices, requests, demands and other communications required or permitted hereunder must be made in writing and will be
deemed to have been duly given and effective: (a) on the date of delivery, if delivered personally; (b) on the earlier of the fourth day after mailing or the date of the return receipt acknowledgment, if mailed, postage prepaid, by
certified or registered mail, return receipt requested; (c) on the date of transmission, if sent by facsimile; or (d) on the date of requested delivery if sent by a recognized overnight courier: 

 

					
		 	If to the Company:	  	Colony Financial, Inc.
		 		  	2450 Broadway, 6th Floor
		 		  	Santa Monica, CA 90404
		 		  	Attention: General Counsel
			
		 	If to the Executive:	  	to the last address of the Executive
		 		  	in the Company’s records specifically identified for
		 		  	notices under this Agreement
			
		 	With a copy to:	  	 Andrew J. Bernstein, Esq.

		 		  	 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

		 		  	 666 Third Avenue

		 		  	 New York, New York 10017

		 		  	 Fascimile: (212) 983-3115

 or to such other address as is provided by a party to the other from time to time. 

(e) Survival. The representations, warranties and covenants of the Executive contained in this Agreement will survive any termination of
the Executive’s employment with the Company. 
 (f) Amendment; Waiver; Termination. No provision of this Agreement may be
amended, modified, waived or discharged unless such amendment, modification, waiver or discharge is agreed to in writing and signed by the Executive and CFI. No waiver by either party hereto at any time of any breach by the other party hereto of
compliance with any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement and the
transactions contemplated herein shall terminate automatically without any further action by any party upon the termination of the Contribution Agreement 

(g) Further Assurances. The parties hereto will from time to time after the date hereof execute, acknowledge where appropriate and
deliver such further instruments and take such other actions as any other party may reasonably request in order to carry out the intent and purposes of this Agreement. 

  
 13 

 (h) Severability. If any term of provision hereof is determined to be invalid or
unenforceable in a final court or arbitration proceeding, (i) the remaining terms and provisions hereof shall be unimpaired and (ii) to the extent permitted by applicable law, the invalid or unenforceable term or provision shall be deemed
replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision. 

(i) Arbitration. Except as otherwise set forth in the Restrictive Covenant Agreement, any dispute or controversy arising under or in
connection with this Agreement that cannot be mutually resolved by the parties hereto shall be settled exclusively by arbitration in New York, New York before a panel of three neutral arbitrators, each of whom shall be selected jointly by the
parties, or, if the parties cannot agree on the selection of the arbitrators, as selected by the American Arbitration Association. The commercial arbitration rules of the American Arbitration Association (the “AAA Rules”) shall
govern any arbitration between the parties, except that the following provisions are included in the parties’ agreement to arbitrate and override any contrary provisions in the AAA Rules: 

(i) The agreement to arbitrate and the rights of the parties hereunder shall be governed by and construed in accordance with
the laws of the State of California, without regard to conflict or choice of law rules; 
 (ii) The California Arbitration
Act shall govern the arbitration, the agreement to arbitrate, and any proceedings to enforce, confirm, modify or vacate the award; 

(iii) The arbitrators shall apply California law; 

(iv) Any petition or motion to modify or vacate the award shall be filed in a Superior Court in California (the
“Court”); 
 (iv) The award shall be written, reasoned, and shall include findings of fact as to all factual
issues and conclusions of law as to all legal issues; 
 (v) Either party may seek a de novo review by the Court of the
conclusions of law included in the award and any petition or motion to enforce, confirm, modify or vacate the award; and 

(vi) The arbitration shall be confidential. Judgment may be entered on the arbitrators’ award in any court having
jurisdiction. 
 The parties hereby agree that the arbitrators shall be empowered to enter an equitable decree mandating specific
enforcement of the terms of this Agreement. Each party shall bear its own legal fees and out-of-pocket expenses incurred in any arbitration hereunder and the parties shall share equally all expenses of the arbitrators; provided, that,
the arbitrator shall have the same authority to award reasonable attorneys’ fees to the prevailing party in any arbitration as part of the arbitrator’s award as would be the case had the dispute or controversy been argued before a court
with competent jurisdiction. 
 (j) Section 409A. The intent of the parties is that payments and benefits under this Agreement
comply with Section 409A of the Code, to the extent subject thereto, and accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance therewith. In the event that any provision of
Agreement or 

  
 14 

 
any other agreement or award referenced herein is mutually agreed by the parties to be in violation of Section 409A of the Code, the parties shall cooperate reasonably to attempt to amend or
modify this Agreement (or other agreement or award) in order to avoid a violation of Section 409A of the Code while attempting to preserve the economic intent of the applicable provision. Notwithstanding anything contained herein to the
contrary, the Executive shall not be considered to have terminated employment with the Company for purposes of any payments under this Agreement which are subject to Section 409A of the Code until the Executive would be considered to have
incurred a “separation from service” from the Company within the meaning of Section 409A of the Code. Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate identified payment for
purposes of Section 409A of the Code. Without limiting the foregoing and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of
the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement or any other arrangement between the Executive and the Company during the six-month period immediately following the
Executive’s separation from service shall instead be paid on the first business day after the date that is six months following the Executive’s separation from service (or, if earlier, the Executive’s date of death). To the extent
required to avoid an accelerated or additional tax under Section 409A of the Code, amounts reimbursable to the Executive under this Agreement shall be paid to the Executive on or before the last day of the year following the year in which the
expense was incurred and the amount of expenses eligible for reimbursement (and in kind benefits provided to the Executive) during one year may not affect amounts reimbursable or provided in any subsequent year. CFI makes no representation that any
or all of the payments described in this Agreement will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to any such payment. For purposes of this
Section 8(j), Section 409A of the Code shall include all regulations and guidance promulgated thereunder. 
 (k) Headings.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement. 
 (l) Construction.
The parties acknowledge that this Agreement is the result of arm’s-length negotiations between sophisticated parties, each afforded representation by legal counsel. Each and every provision of this Agreement shall be construed as though both
parties participated equally in the drafting of the same, and any rule of construction that a document shall be construed against the drafting party shall not be applicable to this Agreement. 

(m) Counterparts. This Agreement may be executed by the parties hereto in counterparts, each of which shall be deemed an original, but
both such counterparts shall together constitute one and the same document. 
 (n) Tax Withholding. The Company may withhold from any
amounts payable under this Agreement all federal, state, city or other taxes as the Company is required to withhold pursuant to any applicable law, regulation or ruling. Notwithstanding any other provision of this Agreement, the Company shall not be
obligated to guarantee any particular tax result for the Executive with respect to any payment provided to the Executive hereunder, and the Executive shall be responsible for any taxes imposed on Executive with respect to any such payment. 

  
 15 

 (o) Cooperation. For a period of 12 months following the termination of the
Executive’s employment with the Company for any reason, the Executive shall provide reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events during the
Executive’s employment hereunder of which the Executive has knowledge. The Company shall reimburse the Executive for the Executive’s reasonable travel expenses incurred in connection with the foregoing, in accordance with the
Company’s policies (and consistent with the Executive’s travel practices during the Executive’s employment with the Company) and subject to the delivery of reasonable support for such expenses. Any such requests for cooperation shall
be subject to the Executive’s business and personal schedule and the Executive shall not be required to cooperate against his own legal interests or the legal interests of his employer or partners or business ventures. In the event the
Executive reasonably determines that he needs separate legal counsel in connection with his cooperation, the Company shall reimburse the Executive for the reasonable costs of such counsel as soon as practicable (and in any event within thirty
(30) days) following its receipt of an invoice for such costs. In the event the Executive is required to cooperate for more than eight (8) hours in any 12-month period, the Executive shall be paid an hourly consulting fee in an amount
mutually agreed between the Company and Executive at the time. 
 (p) Effectiveness. This Agreement and the transactions contemplated
herein shall be conditioned upon the closing of the transactions contemplated by the Contribution Agreement. In the event that the Contribution Agreement terminates prior to the closing of the transactions contemplated thereby, this Agreement shall
terminate automatically without any further action by any party and shall be void ab initio. 

(q) Definition of CFI.
“CFI” means, for purposes of this Agreement, (i) from the Effective Date through the day prior to the closing of the Merger Transaction, Colony Capital, Inc., and (ii) from and after the date of the closing of the Merger
Transaction, the Surviving Company and its successors and assigns. 
 [remainder of page intentionally left blank] 

  
 16 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above
written. 
  

			
	COLONY FINANCIAL, INC.
		
	By:	 	  

	Name:
	Title:
	
	EXECUTIVE
	
	  

	Richard B. Saltzman

 [Signature Page to Saltzman Employment Agreement] 

 Schedule 1 

Current Activities 

 Exhibit A 

Form of Release 
 Richard
B. Saltzman (“Executive”), a former employee of Colony Financial, Inc. (“CFI” and together with its subsidiaries, the “Employer”), hereby enters into and agrees to be bound by this General Waiver
and Release of Claims (the “Release”). Executive acknowledges that he is required to execute this Release in order to be eligible for certain post-termination benefits (the “Post-Termination Benefits”) as set forth
in Section [4(c)(ii)] / [4(e)(i)] of his Employment Agreement with CFI, dated December 23, 2014 (the “Employment Agreement”). Unless otherwise indicated, capitalized terms used but not defined herein shall have the meanings
specified in the Employment Agreement. 
 1. SEPARATION DATE. Executive acknowledges and agrees that his separation from Employer was effective as of
            , 20XX ( the “Separation Date”). 
 2. WAGES FULLY PAID.
Executive acknowledges and agrees that he has received payment in full for all salary and other wages, including without limitation any accrued, unused vacation or other similar benefits earned through the Separation Date. 

3. EXECUTIVE’S GENERAL RELEASE OF CLAIMS. 

(a) Waiver and Release. Pursuant to Section [4(c)(ii)/4(e)(i)] of the Employment Agreement, and in consideration of the Post-Termination
Benefits to be provided to Executive as outlined in the Employment Agreement and this Release as set forth herein, Executive, on behalf of himself and his heirs, executors, administrators and assigns, forever waives, releases and discharges
Employer, its officers, directors, owners, shareholders and agents (collectively referred to herein as, the “Employer Group”), and each of its and their respective officers, directors, shareholders, members, managers, employees,
agents, servants, accountants, attorneys, heirs, beneficiaries, successors and assigns (together with the Employer Group, the “Employer Released Parties”), from any and all claims, demands, causes of actions, fees, damages,
liabilities and expenses (including attorneys’ fees) of any kind whatsoever, whether known or unknown, that Executive has ever had or might have against the Employer Released Parties that directly or indirectly arise out of, relate to, or are
connected with, Executive’s services to, or employment by the Company, including, but not limited to (i) any claims under Title VII of the Civil Rights Act, as amended, the Americans with Disabilities Act, as amended, the Family and
Medical Leave Act, as amended, the Fair Labor Standards Act, as amended, the Equal Pay Act, as amended, the Employee Retirement Income Security Act, as amended (with respect to unvested benefits), the Civil Rights Act of 1991, as amended,
Section 1981 of Title 42 of the United States Code, the Sarbanes-Oxley Act of 2002, as amended, the Worker Adjustment and Retraining Notification Act, as amended, the Age Discrimination in Employment Act, as amended, the Uniform Services
Employment and Reemployment Rights Act, as amended, the California Fair Employment and Housing Act, as amended, and the California Labor Code, as amended, and/or any other federal, state or local law (statutory, regulatory or otherwise) that may be
legally waived and released and (ii) any 

 tort and/or contract claims, including any claims of wrongful discharge, defamation, emotional distress, tortious
interference with contract, invasion of privacy, nonphysical injury, personal injury or sickness or any other harm. Executive acknowledges that if the Equal Employment Opportunity Commission or any other administrative agency brings any charge or
complaint on his behalf or for his benefit, this Release bars Executive from receiving, and Executive hereby waives any right to, any monetary or other individual relief related to such a charge or complaint. This Release, however, excludes
(i) any claims made under state workers’ compensation or unemployment laws, and/or any claims that cannot be waived by law, (ii) claims with respect to the breach of any covenant (including any payments under the Employment Agreement)
to be performed by Employer after the date of this Release, (iii) any rights to indemnification or contribution or directors & officers liability insurance under the Employment Agreement, Indemnification Agreement, any operative
documents of the Company or any applicable law, (iv) any claims as a holder of Company equity awards under the Company’s equity incentive plans or as a holder of Fund Incentives, and (v) any claims for vested benefits under any
employee benefit plan (excluding any severance plan and including claims under the Consolidated Omnibus Budget ReconcilliationReconciliation Act of 1985) or any
claims that may arise after the date Executive signs the Release. 
 (b) Waiver of Unknown Claims; Section 1542. Executive
intends to fully waive and release all claims against Employer; therefore, he expressly understands and hereby agrees that this Release is intended to cover, and does cover, not only all known injuries, losses or damages, but any injuries,
losses or damages that he does not now know about or anticipate, but that might later develop or be discovered, including the effects and consequences of those injuries, losses or damages. Executive expressly waives the benefits of and right to
relief under California Civil Code Section 1542 (“Section 1542”), or any similar statute or comparable common law doctrine in any jurisdiction. Section 1542 provides: 

Section 1542. (General Release-Claims Extinguished) A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. 

Executive understands and acknowledges the significance and consequences of this specific waiver of Section 1542 and, having had the opportunity to
consult with legal counsel, hereby knowingly and voluntarily waives and relinquishes any rights and/or benefits which he may have thereunder. Without limiting the generality of the foregoing, Executive acknowledges that by accepting the benefits and
payments offered in exchange for this Release, he assumes and waives the risks that the facts and the law may be other than he believes and that, after signing this Release, he may discover losses or claims that are released under this Release, but
that are presently unknown to him, and he understands and agrees that this Release shall apply to any such losses or claims. 
 (c)
Acknowledgement of ADEA Waiver. Without in any way limiting the scope of the foregoing general release of claims, Executive acknowledges that he is waiving and releasing any rights he may have under the Age Discrimination in Employment Act of
1967 (the “ADEA”) and that such waiver and release is knowing and voluntary. This waiver and release does not govern any rights or claims that might arise under the ADEA after the date 

 this Release is signed by Executive. Executive acknowledges that: (i) the consideration given for this
Release is in addition to anything of value to which Executive otherwise would be entitled to receive; (ii) he has been advised in writing to consult with an attorney of his choice prior to signing this Release; (iii) he has been provided
a full and ample opportunity to review this Release, including a period of at least twenty-one (21) days within which to consider it (which will not be lengthened by any revisions or modifications); (iv) he has read and fully understands
this Release and has had the opportunity to discuss it with an attorney of his choice; (v) to the extent that Executive takes less than twenty-one (21) days to consider this Release prior to execution, he acknowledges that he had
sufficient time to consider this Release with counsel and that he expressly, voluntarily and knowingly waives any additional time; and (vi) Executive is aware of his right to revoke this Release at any time within the seven (7)-day period
following the date on which he executes this Release. Executive further understands that he shall relinquish any right he has to Post-Termination Benefits described in the Employment Agreement if he exercises his right to revoke this Release. Notice
of revocation must be made in writing and must be received by [Name, Title], no later than 5:00 p.m. Pacific Time on the seventh (7th) calendar day immediately after the day on which Executive executes this Release. 

4. NO CLAIMS BY EXECUTIVE. Executive affirms and warrants that he has not filed, initiated or caused to be filed or initiated any claim, charge, suit,
complaint, grievance, action or cause of action against Employer or any of the other Employer Released Parties. 
 5. NO ASSIGNMENT OF CLAIMS.
Executive affirms and warrants that he has made no assignment of any right or interest in any claim which he may have against any of the Employer Released Parties. 

6. ADVICE OF COUNSEL. Executive acknowledges: (a) that he has been advised to consult with an attorney regarding this Release; (b) that he
has, in fact, consulted with an attorney regarding this Release; (c) that he has carefully read and understands all of the provisions of this Release; and (d) that he is knowingly and voluntarily executing this Release in consideration of
the Post-Termination Benefits provided under the Employment Agreement. 
 [remainder of page intentionally left blank] 

 By his signature, Richard B. Saltzman hereby knowingly and voluntarily executes this Release as
of the date indicated below. 
  

	
	 
	Richard B. Saltzman
	
	
Dated:                  
                          

 [Signature Page to Saltzman Release] 

 Exhibit B 

Form of Restrictive Covenant Agreement 

[To Come] 

 ANNEX II 

AMENDED SHARE TRANSFER AGREEMENT 

[See Attached] 

 EXECUTION VERSION 

SHARE TRANSFER AND LIQUIDATED DAMAGES AGREEMENT 

THIS SHARE TRANSFER AND LIQUIDATED DAMAGES AGREEMENT (this “Agreement”), dated as of
December 23, 2014, to be effective as of the Closing, is made by and among Colony Financial, Inc., a Maryland corporation (“CFI”), Colony Capital Holdings, LLC, a Delaware limited liability company (“CC
Holdings”), Colony Capital, LLC, a Delaware limited liability company (“CC”), and Richard B. Saltzman (“Saltzman”). Any capitalized term that is used but not otherwise defined in this Agreement shall have
the meaning set forth in the Contribution Agreement by and among CC Holdings, CFI, CC, Colony Capital OP Subsidiary LLC (“OP”), a Delaware limited liability company, FHB Holding LLC, a Delaware limited liability company, Richard B.
Saltzman and CFI RE Masterco LLC, a Delaware limited liability company, dated as of the date hereof (the “Contribution Agreement”).; 

WHEREAS, the parties desire to enter into this Agreement, pursuant to which CC Holdings or one of its Subsidiaries will deliver to
Saltzman shares of CFI Class A Common Stock equal to the CC Closing Share Consideration (as adjusted pursuant to Section 1(b) below, the “Closing Saltzman Shares”) and (ii) additional shares of CFI Class A Common
Stock equal to (A) the aggregate number of OP Common Units delivered by OP pursuant to Section 3.5(h) of the Contribution Agreement, if any, multiplied by (B) 22.123% (the “Contingent Consideration
Saltzman Shares” and together with the Closing Saltzman Shares, the “Saltzman Shares”).; and 

WHEREAS, NorthStar Realty Finance Corp., a Maryland corporation, CFI, NorthStar
Asset Management Group, Inc., a Delaware corporation, and the other parties named therein, have entered into that certain Agreement and Plans of Merger, dated as of June 2, 2016, (the “Merger Agreement”) pursuant to which, among other
things, CFI will be merged into New Polaris (as defined in the Merger Agreement) (the “Merger Transaction”), with New Polaris as the surviving corporation (the “Surviving Company”). 

NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants, terms and conditions set forth herein, and other
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. DELIVERY OF THE
SALTZMAN SHARES. 
 (a) Delivery. CC shall deliver to Saltzman the number of shares of CFI Class A Common Stock equal to
(i) on or as soon as practicable following the Closing Date, the Estimated CC Closing Share Consideration received by CC pursuant to Section 3.3(a)(ii) of the Contribution Agreement and (ii) on or as soon as practicable
following the release of the applicable OP Common Units from the Contingent Consideration Account to CC and the subsequent exchange of such OP Common Units into shares of CFI Class A Common Stock, the Contingent Consideration Saltzman Shares
(together with any cash, property or securities received by CC in respect of such OP Common Units pursuant to Section 3.5(h) of the Contribution Agreement) in each case subject to all of the terms and conditions of this Agreement (as
applicable, the “Saltzman Share Delivery”). 

 (b) Adjustments. Promptly following the determination of the Final CC Closing Share
Consideration on the Final Closing Statement in accordance with Section 3.4(f) of the Contribution Agreement, if (i) the Final CC Closing Share Consideration as shown on the Final Closing Statement is greater than the Estimated CC
Closing Share Consideration shown on the Estimated Closing Statement, then CC shall deliver to Saltzman the number of additional shares of CFI Class A Common Stock equal to such excess amount, or (ii) the Estimated CC Closing Share
Consideration as shown on the Estimated Closing Statement is greater than the Final CC Closing Share Consideration shown on the Final Closing Statement, then Saltzman shall transfer to CC such number of shares of CFI Class A Common Stock equal
to such excess. Saltzman or CC, as applicable, shall satisfy such obligation within, in the case of Saltzman, three Business Days of demand by CC, or in the case of CC, three Business Days of receipt of such additional shares of CFI Class A
Common Stock pursuant to Section 3.4(f) of the Contribution Agreement. Any agreement or arrangement by CC in connection with Section 3.4 of the Contribution Agreement shall be binding on Saltzman without any right of
objection or modification. 
 (c) Certain Tax Matters. 

(i) Each Saltzman Share Delivery shall constitute the payment of a bonus to Saltzman and shall be characterized as a “guaranteed
payment” within the meaning of Section 707(c) of the Code. 
 (ii) The parties acknowledge and agree that no withholding Taxes
shall apply in respect of a Saltzman Share Delivery, and that the obligation to make the payment of any Taxes to the applicable Authorities that apply to such Saltzman Share Delivery shall be solely the obligation of Saltzman. 

(iii) Saltzman, at his election, may request that CC Holdings or CC (x) sell or withhold such number of Saltzman Shares that would
otherwise be delivered to Saltzman in respect of the applicable Saltzman Share Delivery as is determined mutually by the parties to be sufficient to realize an amount of cash on an after-tax basis equal to the estimated Taxes that apply to such
Saltzman Shares (the “Tax Sale”), (y) timely remit the cash received by CC in respect of the Tax Sale on Saltzman’s behalf to the applicable Authorities and (z) deliver to Saltzman only the net number of such Saltzman
Shares remaining after the Tax Sale. 
 2. TERMS AND CONDITIONS OF THE SALTZMAN SHARES. 

(a) Fully Vested. The Saltzman Shares shall be fully vested as of the date of the applicable Saltzman Share Delivery. 

(b) Rights as Shareholder. Except as otherwise set forth in this Agreement in respect of the “Transfer Restrictions”
and the “Liquidated Damages Payment” (each(as defined below), Saltzman shall have all the rights of a shareholder with respect to the Saltzman Shares,
including the right to vote the Saltzman Shares and to receive any dividends or other distributions paid to or made with respect to the Saltzman Shares. 

  
 - 2 - 

 (c) Legend on Certificates. Any certificates evidencing the “Restricted Saltzman
Shares” (as defined below) shall bear such legends reflecting the Transfer Restrictions as CFI may determine in its sole discretion to be necessary or appropriate; provided that in no event shall any such legend be included on any Saltzman
Shares once such Saltzman Shares cease to be Restricted Saltzman Shares. 
 3. RESTRICTIONS ON TRANSFER OF THE SALTZMAN SHARES. 

(a) Temporary Transfer Restrictions. Except as otherwise expressly permitted by this Agreement, Saltzman shall not offer, pledge,
encumber, hypothecate, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly (each,
a “Transfer”) any of the Saltzman Shares (the “Transfer Restrictions”). The Saltzman Shares subject to the Transfer Restrictions shall be referred to herein as the “Restricted Saltzman Shares” and
shall no longer be Restricted Saltzman Shares from and after the applicable Restriction Lapse Date. 
 (b) Exceptions to Transfer
Restrictions. Notwithstanding anything set forth in Section 3(a) to the contrary: 
 (i) On each of the first five anniversaries of
the Closing Date (each a “Restriction Lapse Date”), the Transfer Restrictions relating to the number of Restricted Saltzman Shares delivered to Saltzman (after reduction for any Tax Sale) set forth below shall lapse, such that all
of the Restricted Saltzman Shares shall be free of any and all Transfer Restrictions and shall no longer be Restricted Saltzman Shares as of the fifth anniversary of the Closing Date: 

(A) on the first anniversary of the Closing Date, 20% of the remaining Restricted Saltzman Shares; 

(B) on the second anniversary of the Closing Date, 25% of the remaining Restricted Saltzman Shares; 

(C) on the third anniversary of the Closing Date, 33 1/3% of the remaining Restricted Saltzman Shares; 

(D) on the fourth anniversary of the Closing Date, 50% of the remaining Restricted Saltzman Shares; and 

(E) on the fifth anniversary of the Closing Date, 100% of the remaining Restricted Saltzman Shares. 

In addition, the Transfer Restrictions shall be removed from all Restricted Saltzman Shares upon Saltzman’s death. No Transfer
Restrictions shall be applicable to any Restricted Saltzman Shares from and after the applicable Restriction Lapse Date. For purposes of computing the remaining Restricted Saltzman Shares as of any particular date, (x) Restricted Saltzman
Shares subject to Transfers described in clause (1) of Section 3(b)(ii) below shall be deemed to be remaining Restricted Saltzman Shares so long as record ownership remains with 

  
 - 3 - 

 Saltzman, and (y) Restricted Saltzman Shares subject to Transfers described in clause (3) and
(7) of Section 3(b)(ii) shall be deemed to be remaining Restricted Saltzman Shares until such time (if any) they are the subject of a subsequent Transfer other than as described in clause (3) and (7) of Section 3(b)(ii).

 (ii) Saltzman and any vehicle through which Saltzman then indirectly holds Restricted Saltzman Shares may effectuate any or all of the
following Transfers of Restricted Saltzman Shares; provided, that, in the case of Transfers described in clauses (1) through (3), (A) the applicable transferee agrees in writing to be bound by the restrictions set forth
herein and (B) the Transfer Restrictions with respect to the applicable Restricted Saltzman Shares Transferred thereby shall continue to lapse on a ratable basis on each Restriction Lapse Date as if still held by Saltzman; and provided,
further, that no Restricted Saltzman Shares may be Transferred pursuant to clauses (1) through (3), or (6) through (8) of this Section 3(b)(ii) if following such Transfer, Saltzman would have beneficial ownership of a
number of Saltzman Shares less than that number of Eligible Saltzman Shares that would be included in a Liquidated Damages Payment that became payable as of the date of such Transfer: 

(1) the Transfer of Restricted Saltzman Shares in an aggregate amount up to that number which is equal to 50% of the total number of Saltzman
Shares delivered to Saltzman as collateral for any loan; provided, that, such Transfer is a bona fide pledge of the Restricted Saltzman Shares to a Person that is not an Affiliate of the transferor; 

(2) the Transfer of Restricted Saltzman Shares in an aggregate amount up to that number which is equal to 20% of the total number of Saltzman
Shares issued to Saltzman as a bona fide gift or gifts; 
 (3) the Transfer of some or all of the Restricted Saltzman Shares to any
trust, partnership, corporation or limited liability company established and held for the direct or indirect benefit of Saltzman or his family, provided that any such Transfer shall not involve a disposition for value other than equity interests in
any such trust, partnership, corporation or limited liability company; 
 (4) the Transfer of some or all of the Restricted Saltzman Shares
to CFI to satisfy any indemnification obligations of Saltzman as contemplated by this Agreement or the Contribution Agreement; 
 (5) the
Transfer of some or all of the Restricted Saltzman Shares as required by applicable Law or order; 
 (6) the Transfer of some of the
Restricted Saltzman Shares to a nominee or custodian of a person or entity to whom a disposition or Transfer would be permitted under this Agreement; 

(7) the Transfer of some or all of the Restricted Saltzman Shares as provided for in Section 4 below; and 

(8) the Transfer of a number of Restricted Saltzman Shares as is reasonably determined by the parties in good faith to be sufficient to
realize an amount of cash on an after-tax basis equal to any and all taxes that apply to such Restricted Saltzman Shares. 

  
 - 4 - 

 (c) Ownership of Restricted Saltzman Shares. Saltzman represents and warrants that,
effective as of the Saltzman Share Delivery and except for any Transfers permitted by Section 3(b)(ii), he will hold the Restricted Saltzman Shares, free and clear of all liens, encumbrances, and claims created or caused by him during the
period that the Transfer Restrictions apply. Without limiting the foregoing, effective as of the Saltzman Share Delivery and except for any Transfers permitted by Section 2(b)(ii), Saltzman shall maintain sole direct or indirect beneficial
ownership of all Restricted Saltzman Shares, free and clear of all liens, encumbrances, and claims created or caused by Saltzman or CC, at all times during the period that the Transfer Restrictions apply to such Restricted Saltzman Shares (it being
understood that “beneficial ownership” refers to ownership of all pecuniary and non-pecuniary rights, privileges, liabilities and obligations, and in particular shall not be limited to the meaning of “beneficial ownership” for
purposes of Section 13(d) of the Securities Exchange Act of 1934). Without limiting the foregoing, until the fifth anniversary of the Closing Date, Saltzman shall maintain sole direct or indirect beneficial ownership, free and clear
of all liens, encumbrances, and claims created or caused by Saltzman or CC, of a number of Saltzman Shares equal to or greater than that number of Eligible Saltzman Shares that would be included in a Liquidated Damages Payment that became payable as
of the date of determination. 
 4. LIQUIDATED
DAMAGES[RESERVED]. 
 (a) If Saltzman (i) violates
or fails to perform his obligations under the Non-Competition Covenant contained in Section 1(i) or 1(ii) of Exhibit A hereto, as modified by the proviso in Section 1 of Exhibit A, or (ii) otherwise violates or fails to perform his
obligations under the Non-Competition Covenant in any manner that results in material economic harm to CFI and its Affiliates (taken as a whole), in each case during the “Restricted Period” (as defined in Exhibit A hereto), and fails to
cure and cease such violation within 60 days (which shall be extended to 90 days in the case of a violation that is susceptible to cure and such cure is being pursued in good faith by Saltzman) after the date on which CFI gives written notice to him
of such violation (a “Non-Competition Violation”, and the date of such notice of violation, the “Date
of the Non-Competition Violation”), then Saltzman shall promptly remit to CFI a number of Closing Saltzman Shares (the “Liquidated Damages Payment”), as liquidated damages in respect of such
violation and without respect to the damages actually incurred by CFI or its Affiliates as a result of such violation, determined as follows: 

(i) If the Date of the Non-Competition Violation occurs on or prior to the first anniversary of the Closing Date, the Eligible
Saltzman Shares; 
 (ii) If the Date of the Non-Competition Violation occurs after the first anniversary of the
Closing Date but on or prior to the second anniversary of the Closing Date, 80% of the Eligible Saltzman Shares (rounded to the nearest whole number); 

(iii) If the Date of the Non-Competition Violation occurs after the second anniversary of the Closing Date but on or prior to the
third anniversary of the Closing Date, 60% of the Eligible Saltzman Shares (rounded to the nearest whole number); 

  
 - 5 - 

 (iv) If the Date of the Non-Competition Violation occurs after the third anniversary
of the Closing Date but on or prior to the fourth anniversary of the Closing Date, 40% of the Eligible Saltzman Shares (rounded to the nearest whole number); 

(v) If the Date of the Non-Competition Violation occurs after the fourth anniversary of the Closing Date but on or prior to the
fifth anniversary of the Closing Date, 20% of the Eligible Saltzman Shares (rounded to the nearest whole number); and 

(vi) If the Date of the Non-Competition Violation occurs after the fifth anniversary of the Closing Date, zero Eligible Saltzman
Shares. 
 For purposes of this Agreement, the term “Eligible Saltzman Shares” shall equal a number of
shares of CFI Class A Common Stock equal to (i) a fraction, the numerator of which is (A) the Saltzman Consideration and the denominator of which is (B) the sum of the CC Consideration and the Saltzman Consideration, multiplied
by (ii) $250,000,000 divided by (ii) the Reference CFI Stock Price. “CC Consideration” means (A) the number of New Units received by CC under the Contribution Agreement plus (B) the difference between (x) the
number of OP Common Units received by CC pursuant to Section 3.5(h) minus (y) the Contingent Consideration Saltzman Shares (as defined in the Saltzman Share Transfer Agreement), in each case (A) and (B) multiplied by the
Reference CFI Common Stock Price. “Saltzman Consideration” means the sum of (i) (A) the number of New Shares received by Saltzman under the Saltzman Share Transfer Agreement plus (B) the number of Contingent Consideration
Saltzman Shares received by Saltzman under the Saltzman Share Transfer Agreement plus (C) the number of New Shares retained or sold by CC under the Saltzman Share Transfer Agreement or CFI under the Contribution Agreement, as applicable, in
respect of payment of tax obligations of Saltzman plus (D) the number of New Units received by Saltzman under the Contribution Agreement, in each of case (A), (B), (C) and (D), multiplied by the Reference CFI Common Stock Price plus
(ii) any amounts (if any) actually distributed to Saltzman with respect to Class C Units in CCH. 
 (b)
Applicability. Once the Liquidated Damages Payments as provided for in Section 4(a) above have been paid in full, no further Liquidated Damages Payment shall be payable pursuant to this Agreement. 

(c) Sole Remedy. The Liquidated Damages Payment provided for in Section 3(a) above, shall be CFI’s
sole remedy (other than specific performance as provided for in the Restrictive Covenant Agreement by and between Saltzman and CFI, effective as of the Effective Date (the “Restrictive Covenant Agreement”)) for
breach of the Non-Competition Covenant and Section 3 of the Restrictive Covenant Agreement and the entire economic obligation of Saltzman for any such breach. 

  
 - 6 - 

 5. INDEMNIFICATION OBLIGATIONS. In the event
that CC is obligated for any Losses pursuant to Section 10 of the Contribution Agreement (or otherwise thereunder), Saltzman shall be responsible for his pro rata percentage of any such Losses (and payments) by CC thereunder. Saltzman’s
pro rata percentage shall be determined by dividing (i) the value of the Saltzman Shares delivered to Saltzman by CC pursuant to Section 1 of this Agreement, which value shall be determined using the Reference CFI Common Stock Price by
(ii) the Consideration. Saltzman shall satisfy any such obligations in shares of CFI Class A Common Stock valued for such purposes at the Reference CFI Common Stock Price. Saltzman shall satisfy such obligation within three Business Days
of demand and any agreement or arrangement by CC in connection with the Contribution Agreement shall be binding on Saltzman without any right of objection or modification; provided, that if Saltzman fails to satisfy such obligation within such time
period, the applicable number of Saltzman Shares delivered to Saltzman by CC pursuant to Section 1 of this Agreement shall be automatically cancelled without further action by Saltzman, which value shall be determined using the Reference CFI
Common Stock Price, and CC shall not be obligated for such Losses pursuant to Section 10 of the Contribution Agreement. Saltzman shall have no right of participation (or objection) with respect to any indemnification matter under the
Contribution Agreement and CC shall have the sole right to control any matter with respect thereto. 
 6. MISCELLANEOUS PROVISIONS. 

(a) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable
to agreements entered into and to be performed entirely within such state. 
 (b) Entire Agreement. This Agreement, together with
Exhibit A hereto and the documents referred to herein, constitutes and expresses the whole agreement of the parties hereto with reference to any of the matters or things herein provided for or herein before discussed or
mentioned with reference to the terms and conditions of the Saltzman Shares, and it cancels and replaces any and all prior understandings, agreements and term sheets between the parties with respect thereto. All promises, representations, collateral
agreements and understandings not expressly incorporated in this Agreement are hereby superseded by this Agreement. 
 (c) Notices.
All notices, requests, demands and other communications required or permitted hereunder must be made in writing and will be deemed to have been duly given and effective: (a) on the date of delivery, if delivered personally; (b) on the
earlier of the fourth day after mailing or the date of the return receipt acknowledgment, if mailed, postage prepaid, by certified or registered mail, return receipt requested; (c) on the date of transmission, if sent by facsimile; or
(d) on the date of requested delivery if sent by a recognized overnight courier: 
  

			
	If to CFI:	  	Colony Financial, Inc.
		  	2450 Broadway, 6th Floor
		  	Santa Monica, CA 90404
		  	Attention: General Counsel
		
	If to CC:	  	Colony Capital, LLC
		  	2450 Broadway, 6th Floor
		  	Santa Monica, CA 90404
		  	Attention: Director – Legal

  
 - 7 - 

			
	If to Saltzman:	  	to the last address of the Executive in the records of CFI
		  	and CC specifically identified for notices under this
		  	Agreement

 or to such other address as is provided by a party to the others from time to time. 

(d) Survival. Except as otherwise expressly set forth in this Agreement, the representations, warranties and covenants of Saltzman
contained in this Agreement will survive any termination of Saltzman’s employment with CFI and its Affiliates through and until the expiration of the Restricted Period. 

(e) Amendment; Waiver; Termination. No provision of this Agreement may be amended, modified, waived or discharged unless such amendment,
modification, waiver or discharge is agreed to in writing and signed by all of the parties hereto. No waiver by any party hereto at any time of any breach by any other party hereto of compliance with any condition or provision of this Agreement to
be performed by any such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement and the transactions contemplated herein shall terminate automatically
without any further action by any party upon the termination of the Contribution Agreement. 
 (f) Severability. If any term of
provision hereof is determined to be invalid or unenforceable in a final court or arbitration proceeding, (i) the remaining terms and provisions hereof shall be unimpaired and (ii) to the extent permitted by applicable Law, the invalid or
unenforceable term or provision shall be deemed replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision. 

(g) Arbitration. Except as otherwise set forth in the Restrictive Covenant Agreement, any dispute or controversy arising under or in
connection with this Agreement that cannot be mutually resolved by the parties hereto shall be settled exclusively by arbitration in New York, New York before a panel of three neutral arbitrators, each of whom shall be selected jointly by the
parties, or, if the parties cannot agree on the selection of the arbitrators, as selected by the American Arbitration Association. The commercial arbitration rules of the American Arbitration Association (the “AAA Rules”) shall govern any
arbitration between the parties, except that the following provisions are included in the parties’ agreement to arbitrate and override any contrary provisions in the AAA Rules: 

(i) The agreement to arbitrate and the rights of the parties hereunder shall be governed by and construed in accordance with
the laws of the State of California, without regard to conflict or choice of law rules; 
 (ii) The California Arbitration
Act shall govern the arbitration, the agreement to arbitrate, and any proceedings to enforce, confirm, modify or vacate the award; 

(iii) The arbitrators shall apply California law; 

  
 - 8 - 

 (iv) Any petition or motion to modify or vacate the award shall be filed in a
Superior Court in California (the “Court”); 
 (v) The award shall be written, reasoned, and shall include
findings of fact as to all factual issues and conclusions of law as to all legal issues; 
 (vi) Either party may seek a de
novo review by the Court of the conclusions of law included in the award and any petition or motion to enforce, confirm, modify or vacate the award; and 

(vii) The arbitration shall be confidential. Judgment may be entered on the arbitrators’ award in any court having
jurisdiction. 
 The parties hereby agree that the arbitrators shall be empowered to enter an equitable decree mandating specific
enforcement of the terms of this Agreement. Each party shall bear its own legal fees and out-of-pocket expenses incurred in any arbitration hereunder and the parties shall share equally all expenses of the arbitrators. 

(h) Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement. 

(i) Construction. The parties acknowledge that this Agreement is the result of arm’s-length negotiations between sophisticated
parties, each afforded representation by legal counsel. Each and every provision of this Agreement shall be construed as though both parties participated equally in the drafting of the same, and any rule of construction that a document shall be
construed against the drafting party shall not be applicable to this Agreement. 
 (j) Counterparts. This Agreement may be executed by
the parties hereto in counterparts, each of which shall be deemed an original, but all such counterparts shall together constitute one and the same document. 

(k) Taxes. Notwithstanding any other provision of this Agreement, CFI, CC Holdings and CC shall not be obligated to guarantee any
particular Tax result for Saltzman with respect to any payment provided to Saltzman hereunder, and Saltzman shall be responsible for any Taxes imposed on him with respect to any such payment. 

(l) Section 409A. The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the
Code (including the provisions of Treasury Regulation Section 1.409A-3(i)(5)(iv)), to the extent subject thereto, and accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance
therewith. In the event that any provision of Agreement is mutually agreed by the parties to be in violation of Section 409A of the Code, the parties shall cooperate reasonably to attempt to amend or modify this Agreement in order to avoid a
violation of Section 409A of the Code while attempting to preserve the economic intent of the applicable provision. Neither CFI, CC Holdings or CC make any representation that any or all of the payments described in this Agreement will be
exempt from or comply with Section 409A of the Code and make no undertaking to preclude Section 409A of the Code from applying to any such payment. For purposes of this Section 6(l), Section 409A of the Code shall include all
regulations and guidance promulgated thereunder. 

  
 - 9 - 

 (m)
Definition of CFI and CFI Common Stock. 

(i) “CFI”
means, for purposes of this Agreement, (i) from the date of this Agreement through the day prior to the closing of the Merger Transaction (the “Pre-Merger Period”), Colony Capital, Inc., and (ii) from and after the date of the
closing of the Merger Transaction (the “Post-Merger Period”), the Surviving Company and its successors and assigns. 

(ii) “CFI Common
Stock” during the Pre-Merger Period, the Class A Common Stock of CFI, and (ii) during the Post-Merger Period, New Polaris Class A Common Stock (as defined in the Merger Agreement). 

[remainder of page intentionally left blank] 

  
 - 10 - 

 EXECUTION VERSION 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. 

 

			
	COLONY FINANCIAL, INC.
		
	By:	 	 
	Name:	 	
	Title:	 	
	
	COLONY CAPITAL, LLC
		
	By:	 	 
	Name:	 	
	Title:	 	
	
	CFI RE MASTERCO, LLC
		
	By:	 	 
	Name:	 	
	Title:	 	
	
	RICHARD B. SALTZMAN
	
	 
	Richard B. Saltzman

 [Signature Page to Share Transfer and Liquidated Damages Agreement] 

 EXECUTION VERSION 

Exhibit A 

Non-Competition Covenant 

WHEREAS, Saltzman (i) is a substantial beneficial holder of equity interests in CC and its Affiliates, (ii) has been
actively involved in the management of the business of CC and has thereby acquired significant experience, skill, and confidential and proprietary information relating to the business and operation of CC and (iii) in the course of his
participation in the business of CC, has also developed on behalf of CC significant goodwill that is now a significant part of the value of CC; 

WHEREAS, CFI, on behalf of itself and its Subsidiaries (which, for the avoidance of doubt, on and after the Effective Date include
NewCo and its Subsidiaries) (collectively, the “Company”) desires to protect its investment in the assets, businesses and goodwill of CC to be acquired as part of the Contribution and, accordingly, as a material condition to its
willingness to enter into the Contribution Agreement and consummate the Contribution, has required that Saltzman agree to limit certain activities by Saltzman (as contemplated hereby) that would compete with or otherwise harm such assets, businesses
or goodwill; 
 WHEREAS, as part of the consideration and inducement to CFI to enter into the Contribution Agreement
and acquire such assets, businesses and goodwill, Saltzman is willing to agree to enter into this Non-Competition Covenant and abide by such restrictions; and 

WHEREAS, the parties intend this Non-Competition Covenant to be in compliance with California Business and Professions Code
Section 16601 (“BPC Section 16601”) to the extent that it is applicable, and further intend for it to be fully enforceable under any applicable Law. 

NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants, terms and conditions set forth herein, and other
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to the Non-Competition Covenant hereby agree as follows: 

1. Non-Competition. Saltzman shall not, during the Restricted Period, directly or indirectly, in any manner within the
Restricted Territory: (i) engage in the Business (other than through CFI and its Affiliates); (ii) render any services as an employee, officer, director or consultant to any Person (other than CFI and its Subsidiaries) engaged in the
Business; or (iii) make an investment in a Person engaged in the Business as a partner, shareholder, principal, member or other owner of equity interests (or securities convertible into or exercisable for, equity interests); provided, however,
nothing contained in this Agreement shall restrict Saltzman from (x) engaging in any activity that he determines in good faith is in furtherance of the interests of CFI and its Subsidiaries in the performance of his duties for, and for the
benefit of, CFI and its Subsidiaries and/or (y) engaging in any Permitted Activity in accordance with Section 2. 

 2. Permitted Activities. Notwithstanding anything set forth herein to the
contrary, nothing contained herein shall prohibit Saltzman from: 
 (a) engaging in the Personal
Activities (as defined in the Employment Agreement); 
 (b) owning, directly or indirectly, solely as an investment,
securities of any such Person which are traded on any national securities exchange or NASDAQ if Saltzman (A) is not a controlling person of, or a member of a group which controls, such Person; and (B) does not, directly or indirectly, own
five percent (5%) or more of any class of securities of such Person; 
 (c) managing any capital accounts, or
exercising any of the rights and obligations of the general partner, of the upper-tier general partners with respect to the Subject Funds, or any CC Retained Assets or CC Retained Liabilities of CC Parties following the Effective Date;

 (d) taking any actions with respect to (x) investments made (or legally committed to be made) on or prior to the date
hereof (including investments in Colony AH Member LLC and its subsidiaries, SONIFI Solutions, Inc. and Miramax Films) or (y) follow-on investments to the investments described in clause (x) that are not real estate-related or the sourcing
of investments for the investments described in clause (x) that are not real estate-related or (z) investments made to refinance or restructure the investments described in clauses (x) and (y) that are not real
estate-related; 
 (e) making passive investments in private equity funds, mutual funds, hedge funds and other
managed accounts (provided that such funds or accounts do not have a primary investment strategy, as set forth in the applicable fund’s or account’s published statement of its primary investment strategy, of investments in real
estate-related debt and equity investments); 
 (f) making any passive investment (or group of related passive
investments) of less than $20 million in private equity funds, mutual funds, hedge funds and other managed accounts that have a primary investment strategy, as set forth in the applicable fund’s or account’s published statement of its
primary investment strategy, of investments in real estate-related debt and equity investments; 
 (g) making
investments in private companies that are (x) not engaged in the real estate or hospitality industries, (y) do not predominantly make investments in real estate-related debt and equity instruments and (z) do not make investments
similar to those made by CFI and the OP equal to the lesser of (x) 5% of the outstanding equity securities of such private company and (y) $30 million per company or group of affiliated companies operating as part of one business;
or 
 (h) providing services to an entity engaged in the Business if Saltzman’s services are limited to a unit,
division, or subsidiary of such entity which does not engage in the Business and Saltzman does not provide services directly or indirectly to, or with respect to, the Business. 

  

13 

 3. Defined Terms. For purposes of this Exhibit A, the following terms have the
respective meanings set forth below: 
 (a) “Business” means (x) the business
of acquiring, originating and managing real estate-related debt and equity investments; provided, that, for purposes of clarification, the Business shall not include debt or equity investments in operating companies primarily engaged in businesses
outside of the real estate or hospitality industries even though such businesses may own or lease real property and (y) any alternative asset management business (other than CC) in which more than 25% of the total capital committed is third
party capital from passive investors (which term shall exclude natural persons who are partners or employees of the business and are actively engaged in the management of the business) that advises, manages or invests the assets of funds or related
investment vehicles or separate accounts. 
 (b) “Employment Agreement” means the
Employment Agreement by and between Saltzman and CFI, dated as of December 23, 2014. 
 (c)
“Person” means any individual, company, limited liability company, limited or general partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or
political subdivision thereof. 
 (d) “Restricted Period” means the period
commencing on the Effective Date and ending on the first anniversary of the termination of Saltzman’s employment with the Company; provided that the Restricted Period shall immediately cease if such termination of employment is either by the
Company without Cause (including due to Non-Renewal by the Company) or by Saltzman for Good Reason (in each case, such capitalized term used herein as defined in the Employment Agreement). 

(e) “Restricted Territory” means (i) any of Austria, Belgium, China, Czech Republic, Denmark,
England, Finland, France, Germany, Hungary, Ireland, Italy, Japan, Monaco, Netherlands, Norway, Poland, Portugal, Scotland, South Korea, Spain, Sweden, Switzerland, the United States, (ii) any state in the United States and/or other country
listed in clause (i), and (iii) any other jurisdiction in which the Company or its subsidiaries engages in Business in any material respect. 

4. Reasonableness and Enforceability of Covenants. 

(a) The recitals to this Non-Competition Covenant are incorporated herein by this reference. The parties hereto acknowledge and
agree with such recitals, and further agree that the value of the consideration paid by CFI in connection with the Contribution is substantial and that preservation of the confidential and proprietary information, goodwill, stable workforce, and
client and customer relations of the Company is a material part of the consideration being provided in connection with the Contribution. 

(b) The parties expressly agree that the character, duration and geographical scope of this Non-Competition Covenant are reasonable
in light of the circumstances as they exist on the date upon which this Agreement has been executed, including, but not limited to, Saltzman’s material economic interest in the Contribution, Saltzman’s importance within
the business to be contributed in the Contribution, and Saltzman’s position of confidence and trust as a stockholder of CFI. 

  

14 

 (c) Saltzman acknowledges that, (i) in connection with the Contribution, the
Company will be vested with the goodwill of, and will directly or indirectly carry on, the business of CC; (ii) the restrictive covenants and the other agreements referenced herein (collectively, the “Restrictive Covenants”) are an
essential part of this Non-Competition Covenant and the Agreement, and the contemplated Contribution; (iii) the contemplated Contribution is designed and intended to qualify as a sale (or other disposition) by Saltzman within the meaning of BPC
Section 16601 and (iv) the covenants contained in this Non-Competition Covenant and the Agreement are intended to be and would be enforceable under BPC Section 16601. Saltzman and the Company agree not to challenge the enforceability
of the covenants (and the limitations and qualifications included as part thereof) contained in this Non-Competition Covenant and the Agreement. 

(d) Saltzman agrees to be bound by the Restrictive Covenants and the other agreements referenced in the Agreement to the maximum
extent permitted by Law, it being the intent and spirit of the parties that the Restrictive Covenants and the other agreements referenced herein shall be valid and enforceable in all respects, and, subject to the terms and conditions of, and
limitations and qualifications included in, this Non-Competition Covenant and the Agreement. 
 5. Acknowledgements.
Saltzman acknowledges that (i) his work for the Company will continue to give him access to the confidential affairs and proprietary information of the Company; (ii) the agreements and covenants of Saltzman contained in this
Non-Competition Agreement are essential to the business and goodwill of the Company; and (iii) CFI would not have entered into the Contribution Agreement or the Employment Agreement but for the covenants and agreements set forth
herein. 
 [End of Exhibit
A] 

  

15 

 ANNEX III 

AMENDED RESTRICTIVE COVENANT AGREEMENT 

[See Attached] 

 EXECUTION VERSION 

RESTRICTIVE COVENANT AGREEMENT 

THIS RESTRICTIVE COVENANT AGREEMENT (this “Agreement”), dated as of December 23, 2014, and effective as of the
Effective Date (as defined below), is made by and between Colony Financial, Inc., a Maryland corporation (“CFI”), and Richard B. Saltzman (“Saltzman”). CFI, together with its Subsidiaries (which, following the
Effective Date, shall include NewCo and its Subsidiaries) is hereinafter referred to as “the Company,” and where the context permits, references to “the Company” shall include the Company and any successor to the Company. Any
capitalized term that is used but not otherwise defined in this Agreement shall have the meaning set forth in the Contribution Agreement (as defined below). 

WHEREAS, certain businesses of the Company are currently externally managed and advised by a subsidiary of Colony Capital, LLC
(“CC”) pursuant to the terms of a management agreement; 
 WHEREAS, CFI, CC, Colony Capital Holdings, LLC, a
Delaware limited liability company (“CC Holdings”), Colony Capital OP Subsidiary, LLC, a Delaware limited liability company (“NewCo”), CCH Management Partners I, LLC (“CCH”), FHB Holding LLC, a
Delaware limited liability company, Richard B. Saltzman and CFI RE Masterco LLC, a Delaware limited liability company (the “OP”) have entered into that certain Contribution and Implementation Agreement, dated as of December 23,
2014 (the “Contribution Agreement”), pursuant to which, among other things, CC Holdings, CC and CCH will contribute to the OP and the OP will acquire from CC Holdings, CC and CCH the membership interests in NewCo held by CC
Holdings, CC and CCH (which constitute all of the membership interests of NewCo) (along with the other transactions contemplated thereby, the “Contribution”) and the management of the Company will be internalized; 

WHEREAS, Saltzman, CC, CFI and the OP have entered into that certain Share Transfer and Liquidated Damages Agreement, dated as of
December 23, 2014 (the “Share Transfer Agreement”), which sets forth certain restrictions on the transfer of the Saltzman Shares (as defined in the Share Transfer Agreement) to be issued to Saltzman in connection with the
Contribution; 
 WHEREAS, effective as of the closing of the Contribution (the date on which such closing occurs, the
“Effective Date”), Saltzman will become employed by the Company and will continue to serve as the Chief Executive Officer of CFI in accordance with terms of the Employment Agreement by and between CFI and Saltzman, dated as of the
date hereof (the “Employment Agreement”); 
 WHEREAS, Saltzman (i) is a substantial beneficial holder of equity
interests in CC and its Affiliates, (ii) has been actively involved in the management of the business of CC and has thereby acquired significant experience, skill, and confidential and proprietary information relating to the business and
operation of CC and (iii) in the course of his participation in the business of CC, has also developed on behalf of CC significant goodwill that is now a significant part of the value of CC; 

 WHEREAS, the Company desires to protect its investment in the assets, businesses and
goodwill of CC to be acquired as part of the Contribution and, accordingly, as a material condition to its willingness to enter into the Contribution Agreement and consummate the Contribution, has required that Saltzman agree to limit certain
activities by Saltzman (as contemplated hereby) that would compete with or otherwise harm such assets, businesses or goodwill; 

WHEREAS, as part of the consideration and inducement to CFI to enter into the Contribution Agreement and acquire such assets,
businesses and goodwill, Saltzman is willing to agree to enter into this Agreement and abide by such restrictions; and 

WHEREAS, the parties intend this Agreement to be in compliance with California Business and Professions Code Section 16601
(“BPC Section 16601”) to the extent that it is applicable, and further intend for it to be fully enforceable under any applicable Law.; and

 WHEREAS, NorthStar Realty Finance Corp., a Maryland corporation, CFI,
NorthStar Asset Management Group, Inc., a Delaware corporation, and the other parties named therein, have entered into that certain Agreement and Plans of Merger, dated as of June 2, 2016, (the “Merger Agreement”) pursuant to which,
among other things, CFI will be merged into New Polaris (as defined in the Merger Agreement) (the “Merger Transaction”), with New Polaris as the surviving corporation (the “Surviving Company”). 

NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants, terms and conditions set forth herein, and other
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. Defined Terms.
For purposes of this Agreement, the following terms have the respective meanings set forth below: 
 (a) “Business” means
(x) the business of acquiring, originating and managing real estate-related debt and equity investments; provided, that, for purposes of clarification, the Business shall not include debt or equity investments in operating
companies primarily engaged in businesses outside of the real estate or hospitality industries even though such businesses may own or lease real property and (y) any alternative asset management business (other than CC) in which more than 25%
of the total capital committed is third party capital from passive investors (which term shall exclude natural persons who are partners or employees of the business and are actively engaged in the management of the business) that advises, manages or
invests the assets of funds or related investment vehicles or separate accounts. 
 (b) “Company Materials” means all
Materials that Saltzman makes or conceives, or has made or conceived, solely or jointly, during the period of Saltzman’s retention by or employment with the Company, whether or not patentable or registerable under copyright, trademark or
similar statutes, which (i) are related to the current or demonstrably (by expenditure of material resources or material time spent by senior management) anticipated business or activities of the Company (which includes any fund managed by the
Company during or prior to the period of Saltzman’s retention by or employment with the Company); and (ii) are otherwise developed by Saltzman through the use of the Company’s confidential information, equipment, software, or other
facilities or resources at a time during which Saltzman has been a consultant, or employee (temporary or otherwise) of the Company. 

  
 2 

 Notwithstanding the foregoing, Company Materials shall not include any Materials conceived or made, solely or
jointly, by Saltzman exclusively in connection with the performance of Permitted Activities. 
 (c) “Confidential
Information” means information that is not generally known to the public and that is or was used, developed or obtained by Saltzman (in his capacity as a member or employee of CC); provided, however, Confidential Information will not
include any information that is generally available to the public or within the industry prior to the date Saltzman proposes to disclose or use such information. For the avoidance of doubt, “Confidential Information” does not include
(x) information concerning non-proprietary business or investment practices, methods or relationships customarily employed or entered into by comparable business enterprises, (y) the identity of investors and their investment practices,
methods and relationships, financing sources or capital market intermediaries and (z) information that is used, developed or obtained by Saltzman exclusively in connection with the performance of Permitted Activities. 

(d) “Inventions” means any inventions, improvements, developments, ideas or discoveries whether patentable or unpatentable,
that meets any one of the following criteria: (i) relates at the time of conception or reduction to practice to: (A) the business, projects or products of the Company, or to the utilization thereof; or (B) the actual or demonstrably
anticipated research or development of the Company; (ii) results from any work performed directly or indirectly by Saltzman for the Company; or (iii) results, at least in part, from Saltzman’s use of the Company’s time,
equipment, supplies, facilities or trade secret information; provided, however, that Inventions shall not include (x) any Invention which qualifies fully under the provisions of California Labor Code Section 2870 (a copy of
which is attached as Exhibit 1), including any idea or invention which is developed entirely on Saltzman’s own time without using the Company’s equipment, supplies, facilities or trade secret information, and which is not related to the
business (either actual or demonstrably anticipated), and which does not result from work performed for the Company and (y) inventions, improvements, developments, ideas or discoveries conceived or reduced to practice by Saltzman exclusively in
connection with the performance of Permitted Activities. 

(de) “Materials” means all articles,
reports, documents, memoranda, notes, other works of authorship, data, databases, discoveries, designs, developments, ideas, creative works, improvements, inventions, know-how, processes, computer programs, software, source code, techniques and
useful ideas of any description whatsoever (or portions thereof). 

(ef) “Permitted Activities” means each of
the activities described in Section 2 hereof. 

(eg) “Person” means any individual,
company, limited liability company, limited or general partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 

(fh) “Restricted Period” means the period
commencing on the Effective Date and ending on the first anniversary of the termination of Saltzman’s employment with the Company; provided that the Restricted Period shall immediately cease if such termination of employment is either by the
Company without Cause (including due to Non-Renewal by the Company) or by Saltzman for Good Reason (in each case, such capitalized term used herein as defined in the Employment Agreement). 

  
 3 

 (gi)
“Restricted Territory” means (i) any of Austria, Belgium, China, Czech Republic, Denmark, England, Finland, France, Germany, Hungary, Ireland, Italy, Japan, Monaco, Netherlands, Norway, Poland, Portugal, Scotland, South Korea,
Spain, Sweden, Switzerland, the United States, (ii) any state in the United States and/or other country listed in clause (i), and (iii) any other jurisdiction in which the Company or its subsidiaries engages in Business in any material
respect. 
 2. Permitted Activities. Notwithstanding anything set forth herein to the contrary, nothing contained herein shall prohibit Saltzman from:

 (a) engaging in the Personal Activities (as defined in the Employment Agreement); 

(b) owning, directly or indirectly, solely as an investment, securities of any such Person which are traded on any national securities exchange
or NASDAQ if Saltzman (A) is not a controlling person of, or a member of a group which controls, such Person; and (B) does not, directly or indirectly, own five percent (5%) or more of any class of securities of such Person; 

(c) managing any capital accounts, or exercising any of the rights and obligations of the general partner, of the upper-tier general partners
with respect to the Subject Funds, or any CC Retained Assets or CC Retained Liabilities of CC Parties following the Effective Date; 
 (d)
taking any actions with respect to (x) investments made (or legally committed to be made) on or prior to the date hereof (including investments in Colony AH Member LLC and its subsidiaries, SONIFI Solutions, Inc. and Miramax Films)
or, (y) follow-on investments to the investments described in clause (x) that are not real estate-related or the sourcing of investments for the investments described
in clause (x) that are not real estate-related or (z) investments made to refinance or restructure the investments described in clauses (x) and (y) that are not real estate-related; 

(e) making passive investments in private equity funds, mutual funds, hedge funds and other managed accounts (provided that such funds or
accounts do not have a primary investment strategy, as set forth in the applicable fund’s or account’s published statement of its primary investment strategy, of investments in real estate-related debt and equity investments); 

(f) making any passive investment (or group of related passive investments) of less than $20 million in private equity funds, mutual
funds, hedge funds and other managed accounts that have a primary investment strategy, as set forth in the applicable fund’s or account’s published statement of its primary investment strategy, of investments in real estate-related debt
and equity investments; or 
 (g) making investments in private companies
that are (x) not engaged in the real estate or hospitality industries, (y) do not predominantly make investments in real estate-related debt and equity instruments and (z) do not make investments similar to those made by CFI and the
OP equal to the lesser of (x) 5% of the outstanding equity securities of such private company and (y) $30 million per company or group of affiliated companies operating as part of one business. 

  
 4 

 3. Non-Competition. Saltzman shall not, during the Restricted Period, directly or indirectly, in any
manner within the Restricted Territory: (i) engage in the Business (other than through the Company and its Affiliates); (ii) render any services as an employee, officer, director or consultant to any Person (other than the Company) engaged
in the Business; or (iii) make an investment in a Person engaged in the Business as a partner, shareholder, principal, member or other owner of equity interests (or securities convertible into or exercisable for, equity interests); provided,
however, nothing contained in this Agreement shall restrict Saltzman from (x) engaging in any activity that he determines in good faith is in furtherance of the interests of the Company in the performance of his duties for the Company and/or
(y) engaging in any Permitted Activity. In addition, nothing herein shall prohibit Saltzman from providing services to an entity engaged in the Business if Saltzman’s services are solely limited to a unit, division, or subsidiary of such
entity which does not engage in the Business and Saltzman does not provide services directly or indirectly to, or with respect to, the Business. 
 4.
Non-Solicitation. Except as necessary, appropriate or desirable to perform his duties to the Company during his employment, Saltzman shall not during the Restricted Period, without CFI’s prior written consent, (i) directly or
indirectly, on his own behalf or for any other Person, knowingly (A) solicit or induce any
(x) officer, or
director, or (y) employee or independent contractor who is a natural person that provides consulting or advisory services with respect to sourcing or
consummating financings or investments, in either case, of the Company to terminate his or her relationship with the Company, or (B) hire any such individual whom Saltzman knows
left the employment of the Company during the previous 12 months or (ii) directly or indirectly, on his own behalf or for any other Person, solicit or induce any investors to terminate (or diminish in any material respect) his, her or its
relationship with the Company. For the avoidance of doubt, identification or doing business with or co-investing with any limited partners, investors, financing sources or capital markets intermediaries with regard to activity that is not prohibited
by Section 3 above shall not be deemed to be a breach of this Section 4 or otherwise. Saltzman shall not be in violation of this Section 4 by reason of providing a personal reference for any officer, director or employee of the
Company or soliciting individuals for employment through a general advertisement not targeted specifically to officers, directors or employees of the Company. In addition, except as otherwise provided in this Section 4, during the Restricted
Period, in the event that Saltzman engages the services of any Business Employee in connection with any business of CC following the Effective Date or in connection with the Permitted Activities engaged in by Saltzman, Saltzman shall pay a
reasonable fee (based on such Business Employee’s then current compensation and cost of providing benefits, relative to the amount of such Business Employee’s business time spent performing such services to Saltzman) to the Company for the
services of such Business Employee. 
 5. Confidential Information. At all times on and following the Effective Date, Saltzman shall not disclose or
use for his benefit or the benefit of others, except in connection with the business and affairs of the Company or any of its affiliates, any Confidential Information except to the extent that (i) such disclosure or use is related to,
necessary, appropriate or 

  
 5 

 desirable in connection with Saltzman’s performance of his duties to the Company or (ii) is related to
any good faith dispute between Saltzman and the Company or any of its affiliates or otherwise in connection with any action by Saltzman to enforce his rights or defend his actions under this Agreement, the Contribution Agreement, the Share Transfer
Agreement, the Employment Agreement or any other agreement with the Company or any of its affiliates. Nothing contained herein shall preclude Saltzman from disclosing Confidential Information to his immediate family and personal legal and financial
advisor(s), provided that Saltzman informs such family member(s) and/or advisor(s) that the information is confidential in nature and receives reasonable assurances that the family member(s) and/or advisor(s) shall not disclose such information
except as required by Law or by any Authority with apparent jurisdiction over such Person. Nothing in this Agreement shall be construed to prevent Saltzman from complying with applicable Law, or disclosing information pursuant to the valid order of
a court of competent jurisdiction or an authorized government agency, provided that such compliance does not in Saltzman’s reasonable judgment exceed the extent of disclosure required by such Law. Saltzman shall, to the extent legally
permitted, promptly provide written notice of any such order to an authorized officer of the Company after receiving such order and reasonably cooperate with any efforts of the Company to seek a protective order or other measure to protect the
confidentiality of such information. 
 6. Mutual Non-Disparagement. 

(a) At all times on and following the Effective Date, Saltzman shall refrain from making any disparaging statements about the Company or any of
its present or (to the extent such Persons serve in such capacity during Saltzman’s employment with the Company) future officers, directors, and, in their capacity as such, employees, to any third Persons, including, without limitation, to any
press or other media, except (i) to the extent required by Law or legal process, by any Authority with apparent jurisdiction or applicable securities considerations, (ii) related to any good faith litigation or similar proceeding between
Saltzman and the Company or any of such officers or directors or otherwise in connection with any good faith litigation or similar proceeding or other efforts by Saltzman to enforce his rights or defend his actions under this Agreement, the
Contribution Agreement, the Share Transfer Agreement, the Employment Agreement or any other agreement with the Company or any of such officers or directors or (iii) for the making of any critical remarks about any such Person in connection with
any analyses made or opinions expressed in the ordinary course of his duties to the Company during his employment therewith. 
 (b) At all
times on and following the Effective Date, the senior executive officers of the Company shall not make, or cause to be made by the Company, any disparaging or negative statements about Saltzman to any third Persons, including, without limitation, to
any press or other media, except (i) to the extent required by Law or legal process, by any Authority with apparent jurisdiction or applicable securities considerations, (ii) related to any good faith litigation or similar proceeding
between Saltzman and the Company or otherwise in connection with any good faith litigation or similar proceeding by Saltzman to enforce his rights or defend his actions under this Agreement, the Contribution Agreement, the Share Transfer Agreement,
the Employment Agreement or any other agreement with the Company or (iii) for the making of any critical remarks about Saltzman in connection with any analyses made or opinions expressed in the ordinary course of their respective duties to the
Company during their employment therewith. 

  
 6 

 7. Intellectual Property. 

(a) Saltzman agrees that all Company Materials shall be deemed “work made for hire” by the Company as the “author” and
owner to the extent permitted by United States copyright Law. To the extent (if any) that some or all of the Company Materials do not constitute “work made for hire,” Saltzman hereby irrevocably assigns to the Company for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, all right, title and interest in and to such Company Materials (including without limitation any and all copyright rights, patent rights and trademark rights and goodwill
associated therewith). The provisions of this paragraph will apply to all Company Materials which are or have been conceived or developed by Saltzman, solely or jointly, whether or not further development or reduction to practice may take place
after the termination of Saltzman’s employment or retention by the Company. 
 (b) Saltzman further agrees that he will execute and
deliver to CFI any and all further documents or instruments and do any and all further acts which the Company reasonably requests in order to perfect, confirm, defend, police and enforce the Company’s intellectual property rights, and hereby
grants to the officers of the Company an irrevocable power of attorney, coupled with interest, to such end. Saltzman shall be promptly reimbursed by the Company for all costs and expenditures incurred in connection with any cooperation referenced in
this Section 7(b). 
 8. Injunctive Relief; Other Remedies. The parties agree that the remedy at Law for any breach of this Agreement is and
will be inadequate, and in the event of a breach or threatened breach by Saltzman of the provisions of Sections 3, 4, 5, 6, or 7 of this Agreement, the Company shall be entitled to an injunction restraining Saltzman from the conduct which would
constitute a breach of this Agreement. Subject to the limitations provided for in the proviso to this sentence, nothing herein contained shall be construed as prohibiting the Company from pursuing any other remedies available to it or them for such
breach or threatened breach, including, without limitation, specific performance and/or the recovery of damages from Saltzman; provided that the recovery of damages in respect of a breach of any of the obligations set forth in Section 3 hereof
shall be limited as provided for in the Share Transfer Agreement. 
 9. Reasonableness and Enforceability of Covenants. 

(a) The recitals to this Agreement are incorporated herein by this reference. The parties hereto acknowledge and agree with such recitals, and
further agree that the value of the consideration paid by CFI in connection with the Contribution is substantial and that preservation of the confidential and proprietary information, goodwill, stable workforce, and client and customer relations of
the Company is a material part of the consideration being provided in connection with the Contribution. 
 (b) The parties expressly agree
that the character, duration and geographical scope of this Agreement are reasonable in light of the circumstances as they exist on the date upon which this Agreement has been executed, including, but not limited to, Saltzman’s material
economic interest in the Contribution, Saltzman’s importance within the business to be contributed in the Contribution, and Saltzman’s position of confidence and trust as a stockholder of CFI. 

  
 7 

 (c) Saltzman acknowledges that, (i) in connection with the Contribution, the Company will be
vested with the goodwill of, and will directly or indirectly carry on, the business of CC; (ii) the restrictive covenants and the other agreements contained herein (collectively, the “Restrictive Covenants”) are an essential
part of this Agreement and the contemplated Contribution; (iii) the contemplated Contribution is designed and intended to qualify as a sale (or other disposition) by Saltzman within the meaning of BPC Section 16601 and (iv) the
covenants contained in this Agreement are intended to be and would be enforceable under BPC Section 16601. Saltzman and the Company agree not to challenge the enforceability of the covenants (and the limitations and qualifications included as
part thereof) contained in this Agreement. 
 (d) Saltzman agrees to be bound by the Restrictive Covenants and the other agreements contained
in this Agreement to the maximum extent permitted by Law, it being the intent and spirit of the parties that the Restrictive Covenants and the other agreements contained herein shall be valid and enforceable in all respects, and, subject to the
terms and conditions of, and limitations and qualifications included in, this Agreement. 
 10. Acknowledgements. Saltzman acknowledges that
(i) his work for the Company will continue to give him access to the confidential affairs and proprietary information of the Company; (ii) the agreements and covenants of Saltzman contained in this Agreement are essential to the business
and goodwill of the Company; and (iii) CFI would not have entered into the Contribution Agreement or the Employment Agreement but for the covenants and agreements set forth herein. 

11. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to agreements
entered into and to be performed entirely within such state. 
 12. Notices. All notices, requests, demands and other communications required or
permitted hereunder must be made in writing and will be deemed to have been duly given and effective: (a) on the date of delivery, if delivered personally; (b) on the earlier of the fourth day after mailing or the date of the return
receipt acknowledgment, if mailed, postage prepaid, by certified or registered mail, return receipt requested; (c) on the date of transmission, if sent by facsimile; or (d) on the date of requested delivery if sent by a recognized
overnight courier: 
  

					
		 	If to the Company:  	  	Colony Financial, Inc.
	                                	 		  	2450 Broadway, 6th Floor
		 		  	Santa Monica, CA 90404
		 		  	Attention: General Counsel
			
		 	If to Saltzman:	  	to the last address of Saltzman
		 		  	in the Company’s records specifically identified for
		 		  	notices under this Agreement

  
 8 

					
	                                	 	With a copy to:        	  	Andrew J. Bernstein, Esq.
		 		  	Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
		 		  	666 Third Avenue
		 		  	New York, New York 10017
		 		  	Fascimile: (212) 983-3115

 or to such other address as is provided by a party to the other from time to time. 

13. Survival. The representations, warranties and covenants of Saltzman and the Company contained in this Agreement will survive any termination of
Saltzman’s employment with the Company through the end of the Restricted Period. 
 14. Amendment; Waiver; Termination. No provision of this
Agreement may be amended, modified, waived or discharged unless such amendment, modification, waiver or discharge is agreed to in writing and signed by Saltzman and CFI. No waiver by either party hereto at any time of any breach by the other party
hereto of compliance with any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement and
the transactions contemplated herein shall terminate automatically without any further action by any party upon the termination of the Contribution Agreement. 

15. Severability. Saltzman acknowledges and agrees that (i) he has had an opportunity to seek advice of counsel in connection with this Agreement
and (ii) the Restrictive Covenants are reasonable in geographic and temporal scope and in all other respects. If any term or provision of this Agreement is determined to be invalid or unenforceable in a final court or arbitration proceeding,
(A) the remaining terms and provisions hereof shall be unimpaired and (B) to the extent permitted by applicable Law, the invalid or unenforceable term or provision shall be deemed replaced by a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision. 
 16. Arbitration. Except as
otherwise set forth in Section 8, any dispute or controversy arising under or in connection with this Agreement that cannot be mutually resolved by the parties hereto shall be settled exclusively by arbitration in New York, New York before a
panel of three neutral arbitrators, each of whom shall be selected jointly by the parties, or, if the parties cannot agree on the selection of the arbitrators, as selected by the American Arbitration Association. The commercial arbitration rules of
the American Arbitration Association (the “AAA Rules”) shall govern any arbitration between the parties, except that the following provisions are included in the parties’ agreement to arbitrate and override any contrary
provisions in the AAA Rules: 
  

	 	(a)	The agreement to arbitrate and the rights of the parties hereunder shall be governed by and construed in accordance with the laws of the State of California, without regard to conflict or choice of law rules;

  

	 	(b)	The California Arbitration Act shall govern the arbitration, the agreement to arbitrate, and any proceedings to enforce, confirm, modify or vacate the award; 

 

	 	(c)	The arbitrators shall apply California law; 

  

	 	(d)	Any petition or motion to modify or vacate the award shall be filed in a Superior Court in California (the “Court”); 

  
 9 

	 	(e)	The award shall be written, reasoned, and shall include findings of fact as to all factual issues and conclusions of law as to all legal issues; 

 

	 	(f)	Either party may seek a de novo review by the Court of the conclusions of law included in the award and any petition or motion to enforce, confirm, modify or vacate the award; and 

 

	 	(g)	The arbitration shall be confidential. Judgment may be entered on the arbitrators’ award in any court having jurisdiction. 

The parties hereby agree that the arbitrators shall be empowered to enter an equitable decree mandating specific enforcement of the terms of this Agreement.
Each party shall bear its own legal fees and out-of-pocket expenses incurred in any arbitration hereunder and the parties shall share equally all expenses of the arbitrators; provided, that, the arbitrator shall have the same authority
to award reasonable attorneys’ fees to the prevailing party in any arbitration as part of the arbitrator’s award as would be the case had the dispute or controversy been argued before a court with competent jurisdiction. 

17. Definition of CFI. “CFI”
means, for purposes of this Agreement, (i) from the Effective Date through the day prior to the closing of the Merger Transaction, Colony Capital, Inc., and (ii) from and after the date of the closing of the Merger Transaction, the
Surviving Company and its successors and assigns. 
 [remainder of page intentionally left blank] 

  
 10 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
above written. 
  

			
	COLONY FINANCIAL, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	 SALTZMAN
  

	  
 Richard B.
Saltzman

 [Signature Page to Saltzman Restrictive Covenant Agreement] 

  
 11 

 Exhibit 1 

California Labor Code Section 2870 

(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his
or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either: 

(1) Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably
anticipated research or development of the employer; or 
 (2) Result from any work performed by the employee for the employer. 

(b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be
assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.Unassociated Document

 

REAL ESTATE PURCHASE AND SALE CONTRACT

by and between

 

GREEN DESK LLC,

a Michigan limited liability company

 

as BUYER

 

and

 

AIR REALTY GROUP LLC,

a Connecticut limited liability company

as SELLER

 

Property: A portion of the real property located at 236 New Hartford Road, 

Barkhamsted, Connecticut and described on Exhibit A

 

  

  

  

 

REAL ESTATE PURCHASE AND SALE CONTRACT

 

THIS REAL ESTATE PURCHASE AND SALE CONTRACT (this “Agreement” or “Purchase Agreement”) made and entered into effective as of the 18th day of May, 2016, by and between AIR REALTY GROUP LLC, a Connecticut limited liability company (“Seller”), having a mailing address at 236 New Hartford Road, Barkhamsted, Connecticut  06063, and Green Desk LLC, a Michigan limited liability company, or its assigns, having a mailing address at 28470 Thirteen Mile Road, Suite 220, Farmington Hills, MI 48334 (“Buyer”).

W I T N E S S E T H:

WHEREAS, Seller is the fee simple owner of and is willing to sell a portion of the real property and the improvements thereon, the address of which is 236 New Hartford Road, Barkhamsted, Connecticut 06063 as more fully described in Exhibit A attached hereto, which such portion is depicted on Exhibit A-1 attached hereto, and expressly excluding the Excluded Parcel (as defined herein), and Buyer is willing to purchase such real property from Seller, upon the terms and conditions hereinafter set forth;

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.           Definitions. In addition to other words and terms defined elsewhere in this Agreement, as used herein the following words and terms shall have the following meanings, respectively, unless the context hereof otherwise clearly requires:

 

(a)           “Closing” shall mean the consummation of the purchase and sale of all of the Premises (as defined below) in accordance with the terms of this Agreement; and “Closing Date” shall mean the date on which the Closing actually occurs.

 

(b)           “Due Diligence Materials” shall mean:

 

(i)      Copies of Real Estate Tax Bills for the prior 3 years;

 

(ii)      Reviewed and/or audited (if available) financial statements for Parent for the previous 2 years;

 

(iii)      List of any capital improvements to the Premises that have been completed in the past 3 years;

 

(iv)     Copy of any easement and/or operating agreements that govern the Premises;

 

(v)      Copy of insurance certificate;

 

(vi)     Copies of any surveys of the Premises;

 

  

1

  

 

(vii)     Site plan and any as-built plans for the Premises;

 

(viii)     Copies of certificates of occupancy for the tenant space(s);

 

(ix)      Copies of any existing environmental reports, studies, site assessments, audits or similar documents;

 

(x)       Copies of any existing property condition reports;

 

(xi)       Roof information (e.g. age, condition, warranty status); and

 

(xii)     Schedule of any current or pending litigation.

 

(c)           “Earnest Money Deposit” shall mean the deposit of $20,000 to be given by Buyer to Escrow Agent pursuant to Section 3(a) of this Agreement, as well as all interest earned thereon in the interest-bearing money market account in which Escrow Agent is required to place the Earnest Money Deposit.

(d)           “Effective Date” of this Agreement shall mean that date upon which the last of the Buyer and Seller has executed and delivered this Agreement and the Deposit has cleared.

(e)           “Escrow Agent” shall mean Title Source, Inc., the address of which is 662 Woodard Avenue, 9th Floor, Detroit, Michigan 48226.

(f)           “Environmental Claim” means any and all administrative, regulatory or judicial actions, suits, directives, demands, claims, liens, proceedings or written notices of noncompliance or violation by any person alleging potential liability arising out of, based on or resulting from:  (1) the presence, Release of or exposure to any Hazardous Material at any location, whether or not owned by the Seller; or (2) circumstances forming the basis of any actual or alleged violation of any Environmental Law.

(g)           “Environmental Laws” means all applicable common laws, and all federal, state or local statutes, laws, rules, ordinances, codes, regulations, judgments, and orders, in effect on the Closing Date and relating to the environment, natural resources, or Hazardous Materials, including Releases of Hazardous Materials.

(h)           “Excluded Parcel” means that portion of the real property described in Exhibit A attached hereto, which is identified on Exhibit A-1 attached hereto as the “Excluded Parcel” (and indicated with cross-hatching), consisting entirely of unimproved land.

(i)           “Guaranty” shall mean the Guaranty of all rent and all other tenant obligations for the Lease, to be entered into at Closing by Air Industries Group, a Nevada corporation (“Parent”), as guarantor, in the form attached as Exhibit G hereto.

 

  

2

  

 

(j)           “Hazardous Materials” shall mean all toxic or hazardous materials, chemicals, wastes, pollutants or similar substances, including, without limitation, Petroleum (as hereinafter defined), asbestos insulation, polychlorinated biphenyls and/or urea formaldehyde insulation, which are regulated, governed, restricted or prohibited by any federal, state or local law, decision, statute, rule, regulation or ordinance currently in existence or hereafter enacted or rendered (hereinafter collectively referred to as the “Hazardous Materials Laws”) including, but not limited to, those materials or substances defined as “hazardous substances,” “hazardous materials,” “toxic substances” or “pollutants” or words of similar import or regulatory effect in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. Sections 9601, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Sections 6901, et seq., the Hazardous Materials Transportation Act, 49 U.S.C. Sections 1801, et seq., the Toxic Substances Control Act, 15 U.S.C. Sections 2601 et seq., the Clean Air Act, 42 U.S.C. Sections 7401 et seq., the Clean Water Act, 33 U.S.C. Sections 1251 et seq., and any applicable statutes, ordinances or regulations under the laws of the State in which the Premises is located, and any rules and regulations promulgated thereunder, all as presently or hereafter amended. “Petroleum” for purposes of this Agreement shall include, without limitation, oil or petroleum (or petroleum-derived products) of any kind and in any form including but not limited to oil, petroleum, fuel oil, oil sludge, oil refuse, oil mixed with other waste, crude oil, gasoline, diesel fuel and kerosene.

(k)           “Improvements” shall mean the building(s) on the Property, and the other related improvements and all appurtenances thereto, including but not limited to all pavement, accessways, curb cuts, parking, drainage systems and facilities, landscaping, and utility facilities and connections for sanitary sewer, potable water, irrigation, electricity, telephone and telecommunications and natural gas, if applicable or required by the Lease, to the extent the same form a part of the Premises; provided, however, Improvements shall not include any personal property or trade fixtures located on or placed on the Premises by Seller.

(l)           “Inspection Period” shall mean that period of time starting on the Effective Date of this Agreement and terminating on July 29, 2016.

(m)           “Lease” shall mean the Lease Agreement for the Premises to be entered into at Closing between Buyer, as landlord, and Seller, as tenant, whereby such Lease Agreement(s) shall be in the form attached hereto on Exhibit H. The Lease term shall be fifteen (15) years, together with three (3) successive five-year extensions.

(n)           “Lender” shall mean the mortgage lender selected by Borrower, in its discretion, to finance the Borrower’s acquisition of the Premises.  Initially, the “Lender” shall be United Bank; provided, however, that Buyer may change the identity of the Lender at any time in its discretion.

 

  

3

  

 

(o)           “Loan” shall mean the loan made by Lender to Buyer in connection with Buyer’s acquisition of the Premises, which such loan is secured by a first priority mortgage on the Property.

(p)           “Lot Split” shall mean (1) the receipt of all governmental approvals necessary to (A) obtain separate tax identification numbers for the Property and the Excluded Parcel, and (B) convey the Property, and (2) the issuance of separate tax identification numbers for the Property and the Excluded Parcel, which such issuance may occur simultaneously with the Closing.

(q)           “Permits” shall mean all of the governmental permits, including licenses and authorizations, required for the construction, ownership and operation of the Improvements on the Premises, including without limitation certificates of occupancy, building permits, signage permits, site use approvals, zoning certificates, environmental and land use permits and any and all necessary approvals from state or local authorities.

(r)           “Permitted Exceptions” shall mean those items described on Exhibit B attached hereto, except to the extent such items only affect the Excluded Parcel after accomplishment of the Lot Split (as defined herein), and those items approved in writing by Buyer during its Inspection Period with respect to title for the Premises.

(s)           “Personalty” shall mean all items of tangible personal property owned or leased by Seller which are located on and which are used or useful in connection with the maintenance and operation of the Premises.

(t)           “Plans” shall mean the final “as-built” plans and specifications for the Improvements, which are to be furnished by Seller to Buyer pursuant to Section 5(a)(i) of this Agreement.

(u)           “Premises” shall mean the Property, together with all of the Improvements, tenements, hereditaments and appurtenances belonging or in any way appertaining to the Property, and all of Seller’s rights, title and interest in and to (i) any and all property lying in the bed of any street, road or avenue, open or proposed, in front of or adjoining such real property to the center line thereof, (ii) any strips and gores of land adjacent to, abutting or used in connection with such real property, (iii) any easements and rights, if any, inuring to the benefit of such real property or to Seller in connection therewith, and (iv) all tangible and intangible personal property, including fixtures, located on or about or arising out of the ownership of the Property; and, to the extent assignable, all right, title and interest in and to all licenses, permits and franchises issued by any State, Federal or local municipal authorities, relating to the use, maintenance or operation of the Property.

 

  

4

  

 

(v)           “Property” shall mean a portion of the parcel of land described on Exhibit A hereto, which such portion is depicted on Exhibit A-1 attached hereto, and expressly excluding the Excluded Parcel.

(w)           “Purchase Price” shall mean Two Million Two Hundred Thousand and 00/100 Dollars ($2,200,000.00).

(x)           “Release” means any actual releasing, spilling, pumping, pouring, emitting, emptying, leaking, injecting, depositing, disposing, discharging, dispersal, escaping, leaching, dumping or migration into or through the environment, including the soil, surface water or groundwater, and including the abandonment or discarding of containers and other closed receptacles containing Hazardous Materials.

(y)           “Tenant” shall mean Seller in its capacity as lessee under the Lease.

(z)           “Title Company” shall mean Title Source, Inc. or another title insurance company selected by Buyer and licensed in Connecticut, which shall issue the owner’s policy of title insurance required hereunder.

2.           Purchase and Sale of Premises. Subject to the terms, provisions and conditions set forth herein, Seller hereby agrees to sell the Premises to Buyer, and Buyer hereby agrees to purchase the Premises from Seller.

 

3.           Purchase Price for Premises. The Purchase Price for the Premises shall be payable in the following manner:

 

(a)           Earnest Money Deposit. Not later than two (2) days following the date on which Buyer shall receive a counterpart of this Agreement fully executed by Buyer and Seller, Buyer shall deposit with Escrow Agent the Earnest Money Deposit hereunder, to be held and disbursed in accordance with the terms of this Agreement. After clearance of funds, Escrow Agent shall hold the Earnest Money Deposit in an interest bearing money market account at a federally insured financial institution reasonably acceptable to Buyer and Escrow Agent, and interest earned thereon shall be reported under the United States Taxpayer Identification Number of Buyer. All interest earned on the Earnest Money Deposit, or any portion thereof, shall be deemed to constitute a portion of the Earnest Money Deposit and shall be disbursed in accordance with the terms of this Agreement. The principal amount of the Earnest Money Deposit shall be credited to the cash due from Buyer at Closing.

(b)           Balance of Purchase Price. The balance of the Purchase Price, less any apportionments set forth in Section 7 hereof and interest earned on the Earnest Money Deposit, shall be paid in full by Buyer at the Closing by wire transfer of immediately available federal funds as Seller shall direct.

 

  

5

  

 

4.           Closing Date. The Closing shall take place on or before the fifth (5th) business day after Buyer’s written notice to Seller (the “Closing Notice”) that (i) all loan documents to be executed in connection with the Loan are in final form, as confirmed by Lender’s counsel, and (ii) the Lender is ready, willing and able to fund the Loan (collectively, the “Loan Closing Conditions”); provided, however, that in no event shall Closing occur prior to the expiration of the Inspection Period.  In the event the Closing has not occurred on or before July 29, 2016 due to the failure to satisfy the Loan Closing Conditions, then either party may terminate this Agreement upon written notice to the other party and the Escrow Agent, whereupon the Earnest Money Deposit and all interest earned thereon shall be returned to Buyer and this Agreement shall terminate and become null and void and all parties hereto shall be relieved of all obligations hereunder, except for those obligations which expressly survive.  Notwithstanding the foregoing, in the event the Buyer provides the Closing Notice prior to July 29, 2016, then Seller may, upon written notice to Buyer within two (2) business days of receipt of the Closing Notice, extend the Closing Date by up to thirty (30) days; provided that such extension will not affect the terms of, or the Lender’s ability to make, the Loan.

5.           Conditions to Buyer’s Obligation to Close. Buyer’s obligation to purchase the Premises on the Closing Date is subject to the satisfaction of the following contingencies and conditions in the manner and within the time limits herein specified:

 

(a)           On the Effective Date of this Agreement:

 

Seller shall deliver to Buyer (at no cost to Buyer) copies of the Due Diligence Materials and any and all other tests, surveys, examinations, plans, appraisals, permits, licenses, environmental studies or reports and other studies or investigations for or regarding the Premises which the Seller may have in its possession or control.

 

(b)           Within the Inspection Period:

 

(i) Within ten (10) days after the Effective Date hereof, Seller shall have delivered to Buyer a Commitment from the Title Company for an owner’s title insurance policy (ALTA form) with respect to the Premises, naming Buyer as the Proposed Insured in the amount of the Purchase Price applicable to that Premises and with standard exceptions deleted (the “Title Commitment”), and within the Inspection Period, Buyer shall have reviewed and approved the Title Commitment or approved the Title Commitment subject to satisfaction of specified objectives.

(ii)           Buyer shall have obtained, reviewed and approved an ALTA as built survey for such Premises, in a form acceptable to Buyer, at Buyer’s sole cost and expense; provided, however, that at Closing Buyer shall receive a credit from Seller for half (1/2) of the cost of such survey.

 

  

6

  

 

(iii)           Buyer shall have otherwise determined, in its sole and absolute discretion, that the Premises is satisfactory in all respects, including, without limitation, the physical and environmental condition thereof pursuant to Buyer’s inspections conducted in accordance with Section 8 below.

(iv)           Buyer’s (at its expense) receipt of Satisfactory Zoning (PZR) Report and Satisfactory Property Condition Report (“PCR”); provided, however, notwithstanding anything to the contrary contained in this Agreement, if the PCR discloses any “immediate required repairs”, Buyer may elect to close and cause one hundred twenty five percent of the repair and replacement costs for the immediate required repairs to be held in escrow with the Title Company to be used by Buyer to repair and/or replace such items (subject to Seller agreeing thereto).

(v)           This Purchase Agreement shall terminate upon expiration of the Inspection Period unless Buyer has delivered to Seller a written notice that Buyer shall proceed with the purchase of the Premises, (the “Notice to Proceed”).  If the Notice to Proceed has been timely delivered, the parties shall each be required to consummate the Closing subject only to the conditions for Closing set forth in this Agreement.

(c)       On the Closing Date:

 

(i)           Tenant shall be open and operating its business at the Premises.

(ii)           The representations and warranties of Seller set forth in Section 11 hereof shall be true, correct and complete in all material respects on and as of the Closing Date.

(iii)           Each physical/engineering and environmental assessment approved by Buyer during the Inspection Period shall continue to accurately reflect the environmental condition of the Premises.

(iv)           Seller shall not have filed or have had filed against it a petition seeking relief under the bankruptcy or other similar laws of the United States or any state thereof.

(v)           Buyer shall have received the Title Commitment for the Premises “marked-up”, or an equivalent title insurance “proforma” effectively dated as of the Closing, deleting all requirements thereunder so as to obligate the Title Company unconditionally to issue to Buyer an original owner’s policy of title insurance for the Premises in the amount of the Purchase Price applicable to the Premises, subject only to the Permitted Exceptions.

 

  

7

  

 

(vi)           Title Company shall deliver to Buyer a “closing protection” or “insured closing” letter, evidencing the authority of any agent of Title Company which conducts the Closing and issues the Buyer’s owner’s policy of title insurance for or on behalf of Title Company.

(d)           Buyer, using good faith efforts, shall have obtained mortgage financing from Lender for Buyer’s purchase of the Premises, on terms which are acceptable to Buyer in its sole discretion, on or prior to Closing Date.  If Buyer has not obtained such mortgage financing, on terms which are acceptable to Buyer in its sole discretion, on or prior to the Closing, then Buyer shall be entitled to terminate this Agreement by delivering written notice thereof to Seller and Escrow Agent in accordance with and subject to the provisions of Section 10(b) below, whereupon the Earnest Money Deposit and all interest earned thereon shall be returned to Buyer and this Agreement shall terminate and become null and void and all parties hereto shall be relieved of all obligations hereunder, except for those obligations which expressly survive.  In connection with the mortgage financing, Seller agrees, on behalf of the Buyer, to make the deposit required by the Lender in connection with the mortgage loan commitment executed by the Buyer and Lender, provided such amount shall not exceed Twenty Five Thousand Dollars ($25,000).  Seller shall be solely responsible for all fees charged, and out-of-pocket costs incurred, by Lender pursuant to such mortgage loan commitment (“Commitment Costs”), provided Seller’s aggregate liability hereunder shall not exceed Twenty Five Thousand Dollars ($25,000).  In the event the actual Commitment Costs are less than Twenty Five Thousand Dollars ($25,000), Buyer shall reimburse Seller for the difference between the amount of the Commitment Costs and Twenty Five Thousand Dollars ($25,000), to the extent such difference is actually received by Buyer from Lender (or credited to Buyer by Lender at Closing).  The terms of this Section 5(d) shall survive the Closing, or earlier termination of this Agreement.

(e)           The Lot Split shall have been accomplished at or prior to Closing; provided, however that if the Lot Split has not been accomplished by such time, and the parties reasonably believe that the Lot Split cannot be accomplished following the Closing, then the Seller shall convey, and the Buyer shall accept, the entire Property (as opposed to the Premises); provided that the Lender has consented to Buyer taking title to the entire Property.  If the parties reasonably believe that the Lot Split can be accomplished following Closing and the Lender has consented to same, then (i) the Seller shall convey to the Buyer the Premises at Closing, (ii) the parties shall mutually cooperate to effectuate the Lot Split promptly after the Closing, and (iii) until the Lot Split has been accomplished, the Seller shall indemnify, defend, and hold harmless the Buyer for any claim, damage, liability, cost or expense resulting from the failure to pay real estate taxes, assessments, and other charges levied or imposed by any governmental authority or utility provider on the Property, and from any liens encumbering the Property, other than liens created by the Buyer or its agents or contractors.  This Section 5(e) shall survive the Closing, and shall not lapse.

 

  

8

  

 

(f)           If reasonably requested by Seller, the parties shall record an easement simultaneous with the accomplishment of the Lot Split (or immediately thereafter) for the purposes of ingress and egress between New Hartford Road and the Excluded Parcel, over and across the Property, in a location to be agreed upon by the parties (the “Easement”).  Seller’s request for such Easement shall be made in writing prior to the Closing, and if made, the parties shall negotiate in good faith, and agree on, the terms of the Easement prior to the Closing.  If the entire Property is conveyed at Closing, the terms of this Section 5(f) shall not be applicable, and no Easement will be recorded.  In the event the Lot Split has not been accomplished at or prior to Closing, and at Closing, the Buyer takes title to the Premises (and not the Excluded Parcel), then (i) the parties shall record the Easement simultaneous with the accomplishment of the Lot Split (or immediately thereafter), in such form agreed upon by the Buyer and Seller prior to Closing, and (ii) this Section 5 shall survive the Closing and shall not lapse.  The parties acknowledge that the Lender’s consent to the Easement will be required, if such Easement is to be recorded after the Closing, and the parties agree to obtain the Lender’s consent to the Easement prior to Closing, if the Premises (excluded the Excluded Parcel) is conveyed prior to the Lot Split.

(g)           If the foregoing contingencies set forth in this Section 5 are not satisfied within the respective time periods set forth above, then in addition to any rights afforded by Section 4 and Section 15 of this Agreement Buyer shall be entitled to terminate this Agreement by delivering written notice thereof to Seller and Escrow Agent in accordance with and subject to the provisions of Section 10(b) below (the “Termination Notice”), whereupon the Earnest Money Deposit for the rejected Premises and all interest earned thereon shall be returned to Buyer and this Agreement shall terminate and become null and void and all parties hereto shall be relieved of all obligations hereunder, except those obligations that expressly survive closing.

6.           Deliveries at Closing. At Closing the parties shall deliver to each other the documents and items indicated below:

 

(a)       Seller shall deliver to Buyer:

 

(i)           An appropriate customary “Seller’s Title Affidavit” or other acceptable evidence attesting to the absence of liens, lien rights, rights of parties in possession (other than Tenant) and other encumbrances arising under Seller (other than the Permitted Exceptions) naming Title Company as benefited parties, so as to enable Title Company to delete the “standard” exceptions for such matters from Buyer’s owner’s policy of title insurance for the Premises and otherwise insure any “gap” period occurring between the Closing and the recordation of the closing documents.

 

  

9

  

 

(ii)           A duly executed Assignment of Licenses, Permits, Plans, Contracts and Warranties with respect to the Premises in the form attached as Exhibit C, together with all of the documents assigned thereby.

(iii)           A duly executed Warranty Deed with respect to the Premises, subject to no exceptions other than the Permitted Exceptions, in substantially the form attached as Exhibit D, and otherwise as approved by the Title Company and revised as needed to conform to the requirements of state law for the state in which the Premises are located.

(iv)           A duly executed Warranty Bill of Sale for nominal consideration with respect to the Personalty for the respective Premises in the form attached as Exhibit E.

 

(v)           A duly executed counterpart of the Lease in the form set forth on Exhibit F hereto, and a recordable Memorandum of Lease if the latter is requested by either party or required by the Title Company.

 

(vi)           A duly executed Guaranty for the Lease executed by Parent in the form set forth on Exhibit G hereto.

 

(vii)           A duly executed counterpart of the closing statement.

(viii)           An appropriate FIRPTA Affidavit or Certificate by Seller, evidencing that Seller is not a foreign person or entity under Section 1445(f)(3) of the Internal Revenue Code, as amended.

 

(ix)           All certificates of insurance, insuring Buyer as the owner of each of the Premises, which are required by the Lease for such Premises to be furnished by the Tenant to the landlord.

 

(x)           A duly executed Environmental Indemnity Agreement (as defined herein), executed by Seller and Parent, in the form set forth on Exhibit I hereto

(xi)           A duly executed Post-Closing Remediation Agreement (as defined herein) executed by Seller and Parent, in form and amount reasonably acceptable to Seller and Parent.

(xii)           A duly executed counterpart of the Easement, in recordable form, executed by Seller, and otherwise in form acceptable to Seller.

(xiii)           Such other closing documents as are reasonably necessary and proper in order to consummate the transaction contemplated by this Agreement, including those (if any) required to be delivered by Seller pursuant to Section 5(c) above, including recordable Non-Disturbance Agreements from any secured lender of Buyer in the form set forth in the Lease, and pursuant to Section 19 below, including with respect to compliance with the Transfer Act (as defined herein).

 

  

10

  

 

(b)       Buyer shall deliver to Seller:

 

(i)           The Purchase Price, less all the deductions, prorations, and credits provided for herein.

 

(ii)           A duly executed counterpart of the closing statement.

 

(iii)          A duly executed counterpart of the Lease, and a recordable Memorandum of Lease if the latter is requested by either party or required by the Title Company.

(iv)          A duly executed counterpart of the Easement, in recordable form, executed by Buyer, and otherwise in form acceptable to Buyer.

 

7.           Closing and Other Costs, Adjustments and Prorations. The Closing costs shall be allocated and other closing adjustments and prorations made between Seller and Buyer as follows:

 

(a)       The Seller shall be charged with the following items, all of which shall be directly paid by Seller or which shall be paid out of the Purchase Price at Closing and credited against, and shall reduce dollar-for-dollar, the Purchase Price payable to Seller at the Closing: the usual and customary costs and expenses set forth in a settlement statement with respect to the conveyance of a commercial property (excluding only those expenses specifically described below as the responsibility of Buyer) and including without limitation (i) all real estate conveyance taxes and other transfer taxes, if any, for the Premises imposed by state or local authorities (paid by a grantee); (ii) costs of removing any lien, assessment or encumbrance required to be discharged hereunder in order to convey title to the Premises as herein provided, including, without limitation, any prepayment penalties or fees incurred in connection therewith; (iii) one-half (1/2) of the cost of the owner’s policy of title insurance (standard 1992 ALTA Policy, including any cost to delete the “standard” exceptions for parties in possession, and construction lien claims); (iv) one-half (1/2) of each of the costs and fees charged by the Escrow Agent and the recording costs for any Memorandum of Lease; and (v) the cost of obtaining an ALTA as built survey of the Premises, necessary to delete at Closing the so called “survey exception” from the owner’s policy of title insurance; provided, however, that at Closing Buyer shall receive a credit from Seller for half (1/2) of the cost of such survey.

 

(b)       The Buyer shall pay the following items in addition to the Purchase Price payable to Seller at Closing: (i) fees and expenses of Buyer’s counsel, (ii) recording costs for the Warranty Deed, (iii) the cost of obtaining any appraisals, environmental assessments and building condition reports; and (iv) one-half (1/2) of each of the costs and fees charged by the Escrow Agent and recording any Memorandum of Lease.

 

  

11

  

 

(c)       As the Lease is to be entered into between Buyer and Tenant effective as of the Closing Date, it shall not be necessary for rent or any other charges payable under the Leases to be prorated at Closing, and all rent and other charges payable under the Lease shall be the property of Buyer.

 

(d)       Taxes, assessments and other charges shall not be prorated as of Closing, as Seller shall be responsible for such matters related to the period prior to Closing, and Tenant shall be responsible for such matters from and after Closing. Certified, confirmed and ratified special assessments liens as of the Closing Date are to be paid by Seller. Seller shall also pay and be responsible for any “rollback” taxes or retroactively assessed taxes which arise out of or relate to any prior use of any of the Premises or any improper or inadequate assessment of the Premises for the period prior to the Closing, which obligation shall expressly survive the Closing.

8.           Inspections During the Inspection Period, Buyer is authorized to complete various inspections of the Premises at Buyer’ expense, including but not limited to, a satisfactory environmental site assessment report, zoning analysis, building analysis (including a hazardous building materials survey), and soil and/or groundwater tests, as well as a complete review of all contracts, licenses, permits, warranties, surveys, the title commitment and other matters deemed necessary by Buyer. Buyer may terminate the Purchase Agreement at any time within the Inspection Period for any reason, or no reason, in which event the entire Initial Deposit shall be immediately returned to Buyer if the Purchase Agreement has not previously been terminated. Buyer through its agents, employees and independent contractors shall have the right from time to time during the Inspection Period and continuing through the Closing Date, upon 24 hours prior notice to Seller, to enter the Premises for the purpose of inspecting the same and performing environmental and other tests thereon. Buyer shall indemnify and hold harmless Seller and its respective contractors, agents, employees and affiliates from and against any claims, losses, damages and costs arising out of any inspection of and testing at any of the Premises by Buyer, its agents and representatives. Buyer shall not, and shall not permit its agents or representatives or vendors to unreasonably disrupt or hinder Seller’s activities at the Premises, or to enter the Premises without commercially reasonable liability insurance in place.  Buyer shall promptly provide Seller with a complete copy each inspection report given to or obtained by Buyer (or Lender, to the extent in Buyer’s control).

 

9.           Title to Premises; State of Title to be Conveyed. At the Closing, Seller shall convey fee simple title to the Premises to Buyer, free from all liens, encumbrances, restrictions, rights-of-way and other matters, excepting only the Permitted Exceptions and any other matter consented to in writing by Buyer pursuant to Section 12(a) hereof.

 

  

12

  

10.           Escrow Agent. By its execution hereof, Escrow Agent shall accept the escrow contemplated herein. The Earnest Money Deposit shall be held by the Escrow Agent, in trust, on the terms hereinafter set forth.

 

(a)           After clearance of funds, the Earnest Money Deposit shall be held by Escrow Agent in an account meeting the requirements of Section 3 above, and shall not be commingled with any funds of the Escrow Agent or others. Escrow Agent shall promptly advise Seller and Buyer that the Earnest Money Deposit is made and the account number under which it has been deposited following clearance of funds.

 

(b)           Escrow Agent shall deliver the Earnest Money Deposit to Seller or to Buyer, as the case may be, under the following conditions:

 

(i)           To Buyer upon receipt of notice of termination of this Agreement by Buyer at any time prior to the expiration of the Inspection Period.

 

(ii)           To Seller on the Closing Date, provided Closing shall occur pursuant to the Agreement.

 

(iii)           To Seller upon receipt of written demand therefor (“Seller’s Demand for Deposit”) stating that Buyer has defaulted in the performance of Buyer’s obligation to close under this Agreement and the facts and circumstances underlying such default, provided, however, that the Escrow Agent shall not honor such demand until more than ten (10) days after the Escrow Agent shall have sent a copy of such demand to Buyer in accordance with the provisions of Section 10(c) of this Agreement nor thereafter, if the Escrow Agent shall have received a “Notice of Objection” (as hereinafter defined) from Buyer within such ten (10) day period.

 

(iv)           To Buyer upon receipt of written demand therefor (“Buyer’s Demand for Deposit”) stating that this Agreement has been terminated in accordance with the provisions hereof for any reason other than as provided in Section 10(b)(i) above, or that Seller has defaulted in the performance of any of Seller’s obligations under this Agreement and the facts and circumstances underlying the same; provided, however, that the Escrow Agent shall not honor such demand until more than ten (10) days after the Escrow Agent shall have sent a copy of such demand to Seller in accordance with the provisions of Section 10(c) of this Agreement nor thereafter, if the Escrow Agent shall have received a Notice of Objection from Seller within such ten (10) day period.

(v)           To Buyer upon receipt of notice of termination of this Agreement by Buyer at any time prior to the Closing in the event of a termination by Buyer permitted pursuant to Section 5(d).

 

  

13

  

 

(c)           Within two (2) business days of the receipt by the Escrow Agent of a Seller’s Demand for Deposit or a Buyer’s Demand for Deposit the Escrow Agent shall send a copy thereof to the other party in the manner provided in Section 16 of this Agreement. The other party shall have the right to object to the delivery of the Deposit by sending written notice (the “Notice of Objection”) of such objection to the Escrow Agent in the manner provided in Section 16 of this Agreement, which Notice of Objection shall be deemed null and void and ineffective if such Notice of Objection is not received by the Escrow Agent within the time periods prescribed in Section 10(b) of this Agreement. Such notice shall set forth the basis for objecting to the delivery of the Deposit. Upon receipt of a Notice of Objection, the Escrow Agent shall promptly send a copy thereof to the party who sent the written demand.

 

(d)           In the event the Escrow Agent shall have received the Notice of Objection within the time periods prescribed in Section 10(b) of this Agreement, the Escrow Agent shall continue to hold the Earnest Money Deposit until (i) the Escrow Agent receives written notice from Seller and Buyer directing the disbursement of the Earnest Money Deposit, in which case the Escrow Agent shall then disburse the Earnest Money Deposit in accordance with such joint direction, or (ii) litigation shall occur between Seller and Buyer, in which event the Escrow Agent shall deliver the Earnest Money Deposit to the clerk of the court in which said litigation is pending, or (iii) the Escrow Agent takes such affirmative steps as the Escrow Agent may, at the Escrow Agent’s option, elect in order to terminate the Escrow Agent’s duties including, but not limited to depositing the Earnest Money Deposit in the appropriate court for Oakland County, Michigan and bringing an action for interpleader, the costs thereof to be deducted from the amount so deposited into the registry of the court; provided, however, that upon disbursement of the deposited amount pursuant to court order or otherwise, the prevailing party shall be entitled to collect from the losing party the amount of such costs and expenses so deducted by the Escrow Agent.

 

(e)           The duties of the Escrow Agent are only as herein specifically provided, and Escrow Agent shall incur no liability whatever except for willful misconduct or gross negligence as long as the Escrow Agent has acted in good faith. The Seller and Buyer each release the Escrow Agent from any act done or omitted to be done by the Escrow Agent in good faith in the performance of its duties hereunder.

 

(f)           Upon making delivery of the Earnest Money Deposit in the manner herein provided, the Escrow Agent shall have no further liability hereunder.

 

(g)           The Escrow Agent shall either execute this Agreement or indicate in writing that it has accepted the role of Escrow Agent pursuant to this Agreement which in either case will confirm that the Escrow Agent is holding and will hold the Earnest Money Deposit in escrow, pursuant to the provisions of this Agreement.

 

  

14

  

 

11.           Seller’s Covenants, Representations and Warranties. In order to induce Buyer to enter into this Agreement and purchase the Premises, Seller, jointly and severally, makes the following covenants, agreements, representations and warranties, all of which shall survive the Closing and the purchase and sale of the Premises:

 

(a)           Seller has obtained all necessary authorizations and consents to enable it to execute and deliver this Agreement and to consummate the transaction contemplated hereby, including without limitation all authorizations and consents required to be obtained from governmental authorities during the course of, and upon completion of, construction of the Improvements.

 

(b)           Seller holds, or prior to the Closing Date shall hold, fee simple title to the Premises, free of all liens, assessments and encumbrances except for the applicable Permitted Exceptions for each respective Premises, and liens and encumbrances which will be paid and discharged at or prior to the Closing. Seller has no actual knowledge of any condition or state of facts which would preclude, limit or restrict the business operations conducted or contemplated, pursuant to the terms of the Lease to be conducted by Tenant.

 

(c)           Except for construction warranties with respect to the Improvements, there are no service or maintenance contracts or other agreements affecting the Premises to which Buyer will be bound upon Closing, except for those contracts which Seller intends to keep in place and on which Seller shall remain liable as Tenant under the Lease.

 

(d)           The Premises and the proposed use thereof by Tenant and the condition thereof do not violate any applicable deed restrictions, zoning or subdivision regulations, urban redevelopment plans, Environmental Laws or any building code or fire code applicable to the Premises, and are not designated by any governmental agency to be in a flood plain area.

 

(e)           (i) There shall exist no event which, with the giving of notice or the passage of time or both, would constitute an Event of Default under the Lease for the Premises; and (ii) all leasing commissions and fees with respect to the Lease, if any, have been paid in full.

 

(f)           There is no pending or, to Seller’s knowledge, threatened litigation or other proceeding affecting the title to or the use or operation of the Premises.

 

(g)           Seller is not a “foreign person” within the meaning of Section 1445(f)(3) of the Internal Revenue Code of 1986, as amended, and Seller shall certify its taxpayer identification number at Closing.

 

  

15

  

 

(h)           To Seller’s actual knowledge, there are no federal, state, county or municipal plans to restrict or change access from any highway or road to the Premises.

(i)           All of the financial data regarding the construction, ownership and operation of the Premises that Seller has provided to Buyer is materially true, complete and correct.

 

(j)           Except as reflected in any Phase I or Phase II environmental site assessments pertaining to the Premises as provided by Seller to Buyer, or otherwise obtained by Lender from a reputable licensed source, no Hazardous Materials are, will be, or to the best of Seller’s knowledge, have been, stored, treated, disposed of or incorporated into, on or around the Premises in violation of any Environmental Laws; the Premises are in material compliance with all Environmental Laws; any business currently operated on the Premises has disposed of its waste in accordance with all Environmental Laws; Seller has obtained and is in material compliance with all permits required by Environmental Laws necessary for the conduct of the business currently conducted on the Premises and the ownership of the Premises and all such permits are in full force and effect; and, there are no active or abandoned aboveground or underground storage tanks at the Premises.

(k)           Seller has no notice of any pending Environmental Claim arising out of the condition of the Premises or any notice of any pending violation of Environmental Law with respect to the Premises.

(l)           The Property is contained in one or more separate parcels for real estate tax assessment purposes, which parcels do not contain any land other than the Property.

All of the representations, warranties and agreements of Seller set forth in this Section 11 shall be true upon the execution of this Agreement and shall be reaffirmed and repeated in writing at and as of the Closing Date, but not subsequent to the Closing Date, and shall survive the Closing Date for a period of one (1) year after the Closing.

12.           Covenants of Seller Pending Closing. Between the date hereof and the Closing Dates, Seller shall:

(a)           Continue to operate the Premises as they are being operated on the Effective Date, and to keep the Premises in same condition, subject to wear, tear and casualty; and

(b)           Within five (5) business days following receipt thereof (but in any event at least one day prior to the Closing Date), provide Buyer with copies of any letters or notices received by Seller relating to or in any manner affecting the Premises.

 

  

16

  

 

13.           Eminent Domain. If prior to the date of the Closing, Seller or Buyer acquires knowledge of any pending or threatened action, suit or proceeding to condemn or take all or any part of the Premises under the power of eminent domain, then Seller or Buyer shall immediately give notice thereof to the other. In such event, at Buyer’s option, Buyer may terminate this Agreement, as to the Premises. If Buyer elects not to terminate this Agreement as to the Premises, Buyer shall be entitled to all condemnation proceeds due the lessor under the Lease.

14.           Casualty. If prior to the date of the Closing any of the Premises, or any portion thereof, shall be damaged or destroyed by reason of fire, storm, accident or other casualty, then Seller shall immediately give notice thereof to Buyer. In the event more than twenty five percent (25%) of the Premises is damaged by reason of fire, storm, accident or other casualty (or any portion of the Premises if Seller does not have full replacement cost insurance in place as of the date of such damage), the Buyer, at its option, may terminate this Agreement.  If Buyer elects not to terminate this Agreement, Buyer shall be entitled to all insurance proceeds and a credit in the amount of any deductible; provided, however, Buyer shall not be entitled to any insurance proceeds from the destruction or damage to Seller’s personal property or trade fixtures and those insurance proceeds payable to Buyer should be available to Seller, or tenant under the Lease to restore the Premises as provided in the Lease.

15.           Remedies Upon Default.

(a)           In the event Buyer breaches or defaults under any of the terms of this Agreement prior to or on the Closing Date, the sole and exclusive remedy of Seller shall be to receive from Escrow Agent the full amount of the Earnest Money Deposit, and Buyer shall have no right therein. Buyer and Seller acknowledge and agree that (i) the Earnest Money Deposit and any interest earned thereon if received in accordance with the terms of this Agreement is a reasonable estimate of and bears a reasonable relationship to the damages that would be suffered and costs incurred by Seller as a result of having withdrawn the Property from sale and the failure of Closing to occur due to a default of Buyer under this Agreement; (ii) the actual damages suffered and costs incurred by Seller as a result of such withdrawal and failure to close due to a default of Buyer under this Agreement would be extremely difficult and impractical to determine; (iii) Buyer seeks to limit its liability under this Agreement to the amount of the Earnest Money Deposit and any interest earned thereon if the transaction contemplated by this Agreement does not close due to a default of Buyer under this Agreement; and (iv) such amount shall be and constitute valid liquidated damages.

(b)           In the event Seller defaults under any of the terms of this Agreement on or prior to the Closing Date (including, without limitation, by failing or refusing to deliver any items required to be delivered pursuant to Section 5 or Section 6 of this Agreement) and Buyer is ready and able to close, Buyer shall be entitled to (i) receive a refund of the Earnest Money Deposit and terminate this Agreement, or (ii) compel specific performance of this Agreement, if Buyer elects to compel specific performance, Buyer may also recover all of its costs and attorneys’ fees in seeking such specific performance, or (iii) if specific performance is not possible or if Buyer elects not to pursue specific performance, receive a refund of the Earnest Money Deposit (if Closing does not occur) and recover the cost of any 3rd party reports obtained by Buyer and its reasonable attorney’s fees and costs (provided such actual costs shall not exceed the amount of $36,000) which shall include damages resulting from a breach of any warranty or representation of Seller as of the Closing even if the same is not discovered until after the Closing, to the extent the same survive the Closing.

 

  

17

  

 

16.           Notices. All notices, elections, requests and other communication hereunder shall be in writing and shall be deemed given (i) when delivered, or (ii) when transmitted by facsimile or telecopy transmission, with receipt acknowledge upon transmission; addressed as follows (or to such other person or at such other address, of which any party hereto shall have given written notice as provided herein) (refusal to accept delivery by either party shall be deemed delivery):

 

	 	
If to Seller:

	
Air Realty Group LLC

	 	  	
360 Motor Parkway, Suite 100

Happuage, New York  11788

	 	  	
Attn: Daniel Godin

Phone: (631) 881-4920

Fax: (631) 206-9162

	 	  	  
	 	  	  
	 	
with a copy to:

	
Eaton & Van Winkle LLP

	 	  	
3 Park Avenue, 16th Floor

	 	  	
New York, NY 10016

	 	  	
Attn:  Vincent J. McGill, Esq.

	 	  	
Phone:  (212) 561-3604

	 	  	
Fax: (212) 779-9928

	 	  	  
	 	  	  
	 	
If to Buyer:

	
Green Desk LLC

	 	  	
28470 Thirteen Mile Road, Suite 220

	 	  	
Farmington Hills, MI 48334

	 	  	
Attn:  Jason Miller

Fax: (248) 855-0915

	 	  	  
	 	
with a copy to:

	
Honigman Miller Schwartz and Cohn LLP

	 	  	
2290 First National  Building

660 Woodward Avenue

	 	  	
Detroit, MI  48226

	 	  	
Attention: Howard N Luckoff, Esq.

	 	  	
Phone: (248) 566-8467

	 	  	
Fax: (248) 566-8468

 

  

18

  

 

	 	
If to Escrow Agent:

	
Title Source, Inc.

662 Woodward Avenue, 9th Floor

Detroit, Michigan 48226

Attention:  Janet Meisel Voisine, Esq.

Phone: (888) 848-5355

Fax: (877) 401-9437

 

17.           Brokerage Commissions. Seller and Buyer each represents and warrants to the other party that no finders or brokers have been involved with the introduction of Buyer and Tenant, the purchase and sale of the Premises or the execution and delivery of the Lease and the leasing of the Premises pursuant.  In the event of a breach of the foregoing warranties, the breaching party agrees to save, defend, indemnify and hold harmless the non-breaching party from and against any claims, losses, damages, liabilities and expenses, including but not limited to attorneys’ fees. The obligations of this Section shall survive the Closing or earlier termination of this Agreement.

 

18.           Buyer’s Covenants, Representations and Warranties. In order to induce Seller to enter into this Agreement and sell the Premises, Buyer makes the following covenants, agreements, representations and warranties, all of which shall survive the Closing and the purchase and sale of each of the respective Premises: (i) Buyer has full right and authority to enter into the transaction contemplated hereby on the terms and conditions set forth herein; and (ii) the provisions of this Agreement do not conflict with or violate the provisions of any existing agreements between the Buyer and any third parties.

 

19.           Environmental Matters.

(a)           Notwithstanding any term hereof to the contrary, Seller hereby represents and warrants that at Closing, Seller shall take the following actions:

(i)           Seller shall enter into, and shall cause the Parent, to enter into, on a joint and several basis, an environmental indemnity agreement (“Environmental Indemnity Agreement”) in favor of Lender, on terms substantially similar to the form set forth on Exhibit I hereto.  In the event, prior to Closing, the Seller, in its discretion, does not agree to the terms of the Environmental Indemnity Agreement as required by Lender, then Seller shall have the right to terminate this Agreement upon written notice to Buyer, whereupon the Earnest Money Deposit shall be returned to Buyer and this Agreement shall terminate and become null and void and all parties hereto shall be relieved of all obligations hereunder, except those obligations that expressly survive Closing.

 

  

19

  

 

(ii)           Seller shall enter into, and cause Parent to enter into, an agreement in favor of Lender and Purchaser (the “Post-Closing Remediation Agreement”) to undertake remediation of any Hazardous Materials discovered on the Premises and required to be investigated and/or remediated by Environmental Law or by Buyer or Lender, as reflected in environmental reports obtained by Buyer or Lender in connection with the Buyer’s acquisition of the Premises.  The Post-Closing Remediation Agreement shall require Seller to deposit with Lender (the “Remediation Escrow Deposit”) an amount equal to one hundred twenty five percent (125%) of the amount required for such remediation activities, as reasonably determined by the Buyer, its Lender and Seller, which such funds shall be used and drawn upon by Seller to pay for the remediation required pursuant to the Post-Closing Remediation Agreement.  The other terms of such Post-Closing Remediation Agreement shall be negotiated in good faith between the Seller and Buyer prior to Closing.  In the event the amount of the Remediation Escrow Deposit required by the Lender exceeds Two Hundred Thousand Dollars ($200,000), then Seller shall have the right to terminate this Agreement upon written notice to the other party, whereupon the Earnest Money Deposit shall be returned to Buyer and this Agreement shall terminate and become null and void and all parties hereto shall be relieved of all obligations hereunder, except those obligations that expressly survive Closing.

(iii)           To the extent required by Sections 22a-134 et seq. of the General Statutes of Connecticut, as amended (the “Transfer Act”), Seller shall (i) prepare, and certify as the “certifying party,” as that term is defined in the Transfer Act, and file, within ten (10) days after the Closing Date, the appropriate Transfer Act Form (e.g., Form III), Environmental Condition Assessment Form, fee forms and all other necessary filings as may be required under the Transfer Act, (ii) pay any filing and other fees as may be required under the Transfer Act, (iii) provide Buyer with a copy of any and all filings, reports, correspondence and site assessments submitted to or received from the Connecticut Department of Energy & Environmental Protection (“DEEP”) with respect to such Transfer Act matters, and (iv) without in any way interfering with Buyer’s ownership of  the Premises, prepare, implement and complete any investigation, site monitoring, containment, clean-up, removal, disposal, restoration and other remedial efforts of any kind with respect to Releases of Hazardous Materials, if any, required by the Transfer Act.  Seller shall provide Buyer with drafts of any Transfer Act filings for Buyer’s review and comment at least three (3) business days prior to submission of such filings to the DEEP.  To the extent permitted by the Post-Closing Remediation Agreement, after the Closing Date and upon reasonable advance notice to Buyer, Buyer shall grant Seller and Seller's agents reasonable access to the Premises to the extent necessary (as determined by Buyer) to conduct the activities required pursuant to this Section 19 and the Transfer Act.  Seller agrees to have Buyer listed as an additional insured on all applicable insurance policies of Seller’s agents that require access to the Premises to conduct the activities required pursuant to this Section 19 and the Transfer Act.  Seller also shall require of Seller’s agents that Buyer may rely on any documents, data and/or reports issued by Seller’s agents (at no cost to Buyer) in connection with the activities required pursuant to this Section 19 and the Transfer Act.  Seller agrees to also be the certifying party as provided above.

 

  

20

  

 

(b)           In no event shall Buyer be liable for the presence or Release of any Hazardous Materials at the Premises, or any property adjacent to the Premises, which first occurred prior to the Closing, or any Environmental Claim pertaining thereto.  Seller agrees to indemnify, defend, and hold harmless the Buyer, and its members, managers, employees, and agents, and their successors and assigns from and against any claim, liability, loss, damage or cost (including reasonable attorney’s fees), including but not limited to any Environmental Claim, arising out of or related to the presence or Release of Hazardous Materials at the Premises, or any property adjacent to the Premises (i.e., the Excluded Parcel and 13 Old Farm Road, Barkhamsted, CT, only), which first occurred prior to the Closing, and any post-Closing investigation or remediation thereof.

(c)           The terms of this Section 19 shall survive Closing, or any earlier termination of this Agreement.

20.           Miscellaneous Provisions.

(a)           Assignment; Binding Effect. Buyer may assign all of its rights and obligations hereunder, without the written consent of Seller, to (i) any entity which is wholly owned and controlled and managed by the owner(s) of Buyer; provided however, that any assignee of Buyer shall assume all of the obligations of Buyer hereunder in writing delivered no later than five (5) days before Closing date, with written documentation of relationship to Buyer.  In the event of any permitted assignment hereunder Buyer shall thereupon be relieved of all further liability under this Agreement; except that the Earnest Money Deposit shall not be released or otherwise adversely affected as a result of any such assignment, and provided that Buyer shall not be released from any liability for its breach of any representation or warranty made by it as Buyer under the Agreement. Seller shall have the right to assign its rights and obligations hereunder, provided that the Seller named herein shall deliver written notice thereof to Buyer and shall remain liable for any breach of the representations and warranties and performance of the covenants set forth herein. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of Seller and Buyer and their respective successors and assigns.

(b)           Captions. The several headings and captions of the Sections and subsections used herein are for convenience of reference only and shall in no way be deemed to limit, define or restrict the substantive provisions of this Agreement.

 

  

21

  

 

(d)           Entire Agreement; Recording. This Agreement constitutes the entire agreement of Buyer and Seller with respect to the purchase and sale of the Premises, and supersedes any prior or contemporaneous agreement with respect thereto. No amendment or modification of this Agreement shall be binding upon the parties unless made in writing and signed by both Seller and Buyer. Neither this Agreement nor any Memorandum thereof shall be recorded by any party and, if recorded by any party, the other party hereto may immediately terminate all of its obligations under this Agreement.

(e)           Time of Essence. Time is of the essence with respect to Seller’s and Buyer’s performance of all of the terms, conditions and covenants of this Agreement.

(f)           Cooperation. Buyer and Seller shall cooperate fully with each other to carry out effectively the purchase and sale of the Property, in accordance herewith and the satisfaction and compliance with all of the conditions and requirements set forth herein, and shall execute such instruments and perform such acts as may be reasonably requested by either party hereto.

(g)           Governing Law. This Agreement and the rights of the parties hereunder shall be governed by and construed in accordance with the laws and customs of the State of Connecticut.

(h)           Counterparts. This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.

(i)           Attorneys’ Fees. In the event any party to this Agreement should bring suit against the other party in respect to any matters provided for herein, the prevailing party shall be entitled to recover from the non-prevailing party its costs of court, legal expenses and reasonable attorneys’ fees. As used herein, the “prevailing party” shall include, without limitation, any party who dismisses an action for recovery hereunder in exchange for payment of the sums allegedly due, performance of covenants allegedly breached or consideration substantially equal to the relief sought in the action.

(j)           Certain References. As used in this Agreement, the words “hereof,” “herein,” “hereunder” and words of similar import shall mean and refer to this entire Agreement and not to any particular article, section or paragraph of this Agreement, unless the context clearly indicates otherwise.

(k)           Time Periods. Unless otherwise expressly provided herein, all periods for performance, approval, delivery or review and the like shall be determined on a “calendar” day basis. If any day for performance, approval, delivery or review shall fall on a Saturday, Sunday or legal holiday, the time therefor shall be extended to the next business day. All references to “business days” shall mean any day other than a Saturday, Sunday or a national bank holiday.

 

  

22

  

 

(l)           Authority. Each person executing this Agreement, by his or her execution hereof, represents and warrants that they are fully authorized to do so, and that no further action or consent on the part of the party for whom they are acting is required to the effectiveness and enforceability of this Agreement against such party following such execution.

(m)           Severability. If any provision of this Agreement should be held to be invalid or unenforceable, the validity and enforceability of the remaining provisions of this Agreement shall not be affected thereby.

(n)           Waiver. One or more waivers of any covenant, term or condition of this Agreement by either party shall not be construed as a waiver of any subsequent breach of the same covenant, term or condition. The consent or approval by either party to or of any act by the other party requiring such consent or approval shall not be deemed to waiver or render unnecessary consent to or approval of any subsequent similar act.

(o)           Relationship of the Parties. Nothing herein contained shall be deemed or construed by the parties hereto, nor by any third party, as creating the relationship of principal and agent or of partnership or of joint venture between the parties hereto, it being understood and agreed that no provision contained herein, nor any acts of the parties hereto shall be deemed to create the relationship between the parties hereto other than the relationship of seller and buyer.  This Agreement has been drafted by both parties.

(p)           Termination. This Agreement shall be void and of no force and effect unless signed by Seller and delivered to Buyer no later than five (5) business days following the date of Buyer’s execution and delivery of this Agreement.

 

(the remainder of this page intentionally left blank)

 

  

23

  

 

[SIGNATURE PAGE TO REAL ESTATE PURCHASE AND SALE CONTRACT BETWEEN GREEN DESK LLC AND AIR REALTY GROUP LLC]

IN WITNESS WHEREOF, the parties hereto have executed this Real Estate Purchase and Sale Contract on the date first above written.

 

	 	

BUYER:

GREEN DESK LLC

a Michigan limited liability company

By: /s/ Gary Sakwa 

Name: Gary Sakwa

Title: Authorized representative

Date: June 1, 2016

SELLER:

AIR REALTY GROUP LLC,

a Connecticut limited liability company

By: /s/ Daniel R.Godin                                                                    

Name: Daniel R. Godin

Title: President and CEO

Date: June 2, 2016

ESCROW AGENT:

TITLE SOURCE, INC.

By: __________________

Name: ________________

Title: _________________

Date: _________________

 

  

23a

  

 

EXHIBIT A

 

DESCRIPTION OF THE PROPERTY AND THE EXCLUDED PARCEL

 

Land situated in the Town of Barkhamsted, County of Litchfield, State of Connecticut legally described as follows:

 

 

 

 

 

 

 

 

 

  

Exhibit A

  

 

 

 

 

Commonly known as: 236 New Hartford Road, Barkhamsted, Connecticut

 

  

Exhibit A

  

 

 

EXHIBIT A-1

DEPICTION OF THE PROPERTY AND THE EXCLUDED PARCEL

 

 

  

Exhibit A-1

  

 

EXHIBIT B

PERMITTED EXCEPTIONS

1.           Taxes for the Grand List, which become due and payable after the date of the delivery of the deed, which the Grantee herein agrees to assume and pay as part of the consideration herein.

2.           A Right of Way for ingress and egress reserved by C. Lavieri & Sons, Inc., in a Deed to Sterling Engineering Corporation dated December 19, 1976 and recorded in volume 59 at page 1025 of the Barkhamsted Land Records.

3.           Riparian rights of others in and to any brooks or streams flowing through the premises.

4.           An Easement from Sterling Engineering Corporations to The Connecticut Light and Power Company dated August 10, 1981 and recorded in volume 65 at page 262 of the Barkhamsted Land Records.

5.           An Easement from GREEN DESK LLC, a Michigan limited liability company, to AIR REALTY GROUP LLC, a Connecticut limited liability company, and recorded in volume ___ at page ___ of the Barkhamsted Land Records.*

*if applicable

 

  

B-1

  

 

EXHIBIT C

 

FORM OF ASSIGNMENT OF LICENSES, PERMITS, PLANS, CONTRACTS AND WARRANTIES

THIS ASSIGNMENT OF LICENSES, PERMITS, PLANS, CONTRACTS AND WARRANTIES (this “Assignment”) is made and entered into as of the ____ day of _________, 2016, by AIR REALTY GROUP LLC, a Connecticut limited liability company, having a mailing address at 236 New Hartford Road, Barkhamsted, Connecticut  06063 (“Assignor”), in favor of GREEN DESK LLC, a Michigan limited liability company having a mailing address at 28470 Thirteen Mile Road, Suite 220, Farmington Hills, MI 48334 (“Assignee”);

W I T N E S S E T H:

 

WHEREAS, Assignor has this day conveyed to Assignee certain real property situate in Litchfield County, Connecticut, more particularly described on Exhibit A attached hereto and made a part hereof, together with all improvements thereon (the “Real Property”); and

 

WHEREAS, in conjunction with the conveyance of the Real Property, Assignor has agreed to assign all of its right, title and interest in and to certain licenses, permits, plans, contracts and warranties relating to the design, development, construction, ownership, operation, management and use of the Real Property.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties agree as follows:

 

1.           Assignment. Assignor does, to the extent permitted by law, hereby transfer, assign and set over to Assignee to the extent assignable all of Assignor’s right, title and interest in and to (i) all general intangibles relating to the design, development, construction, ownership, operation, management and use of the Real Property, (ii) all certificates of occupancy, zoning variances, licenses, building, use or other permits, approvals, authorizations and consents obtained from and all materials prepared for filing or filed with any governmental agency in connection with the design, development, construction, ownership, operation, management and use of the Real Property, (iii) all architectural drawings, plans, specifications, soil tests, feasibility studies, appraisals, engineering reports and similar materials relating to the Real Property, and (iv) all contract rights (including without limitation rights to indemnification), payment and performance bonds or warranties or guaranties relating to the Real Property (the items described in this 1 being hereinafter referred to as the “Licenses, Permits, Plans, Contracts and Warranties”).

 

2.           Representations and Warranties of Assignor. Assignor represents and warrants to Assignee that (i) the Licenses, Permits, Plans, Contracts and Warranties are in full force and effect, (ii) Assignor has duly and punctually performed or caused to be performed all and singular the terms, covenants and conditions of the Licenses, Permits, Plans, Contracts and

 

  

C-1

  

 

Warranties to be performed by or on behalf of Assignor, (iii) Assignor has not received any notice of default, nor is Assignor aware of any default (or facts which, with the passage of time would result in a default) under any of the Licenses, Permits, Plans, Contracts and Warranties, (iv) Assignor has not received any notice of non-renewal or revocation of any of the Licenses, Permits, Plans, Contracts and Warranties and (v) Assignor has not sold, assigned, transferred, mortgaged or pledged its right, title and interest in any of the Licenses, Permits, Plans, Contracts and Warranties.

 

3.           Further Assurances. Assignor covenants with Assignee that it will execute or procure any additional documents necessary to establish the rights of Assignee hereunder and shall, at the cost of Assignee, take such action as Assignee shall reasonably request to enforce any rights under any of the Licenses, Permits, Plans, Contracts and Warranties that are, by their terms, not assignable to Assignee.

 

4.           Binding Effect. This Assignment shall be binding upon and inure to the benefit of Assignor, Assignee and their respective successors and assigns.

 

IN WITNESS WHEREOF, Assignor has executed this Assignment as of the date set forth above.

 

	

 

ATTEST:

 

 

_________________________________

By:______________________________

Name:____________________________

Title:_____________________________

	
______________________________________

a ____________________

 

 

_____________________________________

By:___________________________________

Name:_________________________________

Title:__________________________________

 

(CORPORATE SEAL)

 

  

C-2

  

 

EXHIBIT D

 

FORM OF DEED

 

WARRANTY DEED

 

 

TO ALL PEOPLE TO WHOM THESE PRESENTS SHALL COME, GREETING:

KNOW YE THAT Air Realty Group, LLC, (“Grantor”) of the Town of ____________, County of ___________, and State of Connecticut, for the consideration of Ten 00/100 ($10.00) Dollars and other valuable consideration received to its full satisfaction from GREEN DESK LLC, a Michigan limited liability company (“Grantee”),  whose mailing address is 28470 Thirteen Mile Road, Suite 220, Farmington Hills, MI 48334, does hereby give, grant, bargain, sell and confirm unto the said Grantee, to wit:

All that certain piece or parcel of land, together with the buildings and improvements thereon, more particularly shown and described on Exhibit A which is attached hereto and made a part hereof.

Said premises are also known as _______________________, County of _______________, State of Connecticut.

 

TO HAVE AND TO HOLD the above granted and bargained premises, with the appurtenances thereof, unto GREEN DESK LLC, the said Grantee, and its heirs, successors and assigns forever, to its own proper use and behoof.

AND ALSO, AIR REALTY GROUP, LLC,, the said Grantor does for itself, and its heirs, executors, administrators and assigns, covenant with GREEN DESK LLC, the said Grantee and its successors and assigns, that at and until the ensealing of these presents, Grantor is well seized of the premises, as a good indefeasible estate in FEE SIMPLE; and Grantor has good right to bargain and sell the same in manner and form as is above written; and that the same is free from all encumbrances whatsoever except as hereinbefore mentioned, and as set forth on Exhibit B hereto.

AND FURTHERMORE, AIR REALTY GROUP, LLC,  the said Grantor, does by these presents bind itself and its  heirs, executors and administrators forever to WARRANT AND DEFEND the above granted and bargained premises to GREEN DESK LLC, the said Grantee and its heirs, successors and assigns, against all claims and demands whatsoever except as hereinbefore mentioned.

 

  

D-1

  

 

IN WITNESS WHEREOF, Grantor has hereunto set its hand, name and seal, this _______ day of _________, 201__.

Signed, Sealed and Delivered in presence of:

 

	  

 

 

 

 

 

 

 

 

State of ________________

ss:

County of _______________

	GRANTOR: 

AIR REALTY GROUP, LLC

 

 

By: _______________________

Name: _____________________

Title: ______________________

 

 

 

 

 

 

On this the          day of ________, 201___, before me, the undersigned officer, personally appeared _____________________________, the of Air Realty Group, LLC, a Connecticut limited liability company, and she/he as such                                        , being duly authorized, executed the foregoing instrument and acknowledged the same to be his/her free act and deed and the free act and deed of said limited liability company.

In witness whereof I hereunto set my hand.

 

	 	

__________________________________

Notary Public/Commissioner of Superior Court

My Commission Expires:                               

                                                                       

Received for Record _______________________ at________ M. Attest, ___________________

 

  

D-2

  

 

EXHIBIT A TO WARRANTY DEED

LEGAL DESCRIPTION

 

  

D-3

  

 

EXHIBIT B TO WARRANTY DEED

PERMITTED EXCEPTIONS

 

  

D-4

  

 

EXHIBIT E

 

FORM OF BILL OF SALE

KNOW ALL MEN BY THESE PRESENTS:

 

That AIR REALTY GROUP LLC, a Connecticut limited liability company, hereinafter referred to as the Grantor, for and in consideration of the sum of TEN AND NO/DOLLARS ($10.00) paid by GREEN DESK LLC, a Michigan limited liability company, hereinafter referred to as the Grantee, the sufficiency and receipt of which are hereby acknowledged, has granted, bargained, sold, transferred and delivered, and by these presents does grant, bargain, sell, transfer and deliver unto the Grantee, its successors and assigns, all of its right, title and interest in and to all items, goods, chattels, equipment and other tangible personal property which are presently existing and located on and used or useful in connection with the construction, maintenance and operation of the real property described on Exhibit A attached hereto, and that all of said personal property is free and clear of and from all claims, liens or encumbrances, and Grantor fully warrants the title thereof and will defend Grantee’s title thereto against the lawful claims of all parties whomsoever.

 

TO HAVE AND TO HOLD the same unto the Grantee, its successors and assigns forever.

 

IN WITNESS WHEREOF, the Grantor has caused these presents to be executed as of this ____ day of ___________, 2016.

 

 

	
Signed, sealed and delivered in the presence of:

 

 

 

______________________________________

Name:_________________________________

 

______________________________________

Name:_________________________________

 

	
AIR REALTY GROUP LLC,

a Connecticut limited liability company

 

 

_____________________________________

By:___________________________________

Name:_________________________________

Title:__________________________________

(CORPORATE SEAL)

 

 

  

E-1

  

 

EXHIBIT F

MEMORANDUM OF LEASE

MEMORANDUM

OF

LEASE

 

PLEASE TAKE NOTICE that Green Desk LLC, a Michigan limited liability company, as Landlord, has leased unto Air Realty Group, LLC, a Connecticut limited liability company, as Tenant, all of the land and improvements thereon at 236 New Hartford Road, Barkhamsted, County of Litchfield, State of Connecticut, more specifically described in Exhibit A hereto (“Legal Description”).

The initial term of the Lease is commencing _____________, 2016, expiring fifteen (15) years thereafter, and Tenant has three five (5)-year options to renew this Lease.

IN WITNESS WHEREOF, the parties hereto have set their hand as of the day and year of the commencement date of the Lease.

[Signatures on following pages]

 

  

F-1

  

 

[SIGNATURE PAGE TO AND A PART OF MEMORANDUM OF LEASE BETWEEN GREEN DESK LLC AND AIR REALTY GROUP, LLC]

Effective Date: ___________, 2016

	
WITNESSES FOR TENANT:

 

 

 

_____________________________

Name:

 

 

_____________________________

Name:

	
TENANT:

AIR REALTY GROUP, LLC

 

 

 

 

 

By: ____________________________

Name: _________________________

Its: ____________________________

 

 

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

 

Personally appeared ______________________, Signer and Sealer of the foregoing Instrument, and acknowledged the same to be ____ free act and deed before me.

 

	 	

__________________________________________

Notary Public

 

  

F-2

  

 

[SIGNATURE PAGE TO AND A PART OF MEMORANDUM OF LEASE BETWEEN GREEN DESK LLC AND AIR REALTY GROUP, LLC]

Effective Date: ___________, 2016

	
WITNESSES FOR LANDLORD:

 

 

 

_____________________________

Name:

 

 

_____________________________

Name:

	
LANDLORD:

GREEN DESK LLC

 

 

 

 

 

By: ____________________________

Name: Gary Sakwa

Its: Authorized Representative

 

	STATE OF MICHIGAN 	)
	 	)  ss.
	COUNTY OF OAKLAND	)

 

The foregoing instrument was acknowledged before me in Oakland County, Michigan this _____ day of __________, 201__, by Gary Sakwa, Authorized Representative of Green Desk LLC, a Michigan limited liability, on behalf of the limited liability company.

 

	 	

Notary Public, State of _________________

County of ___________________________

My Commission Expires: ________________

Acting in the County of ________________

 

  

F-3

  

 

EXHIBIT A TO MEMORANDUM OF LEASE

LEGAL DESCRIPTION

 

  

F-4

  

 

EXHIBIT G

GUARANTY OF LEASE

 

The undersigned, Air Industries Group, a  Nevada corporation, whose address is  360 Motor Parkway, Suite 100, Happuage, New York, 11788, in consideration of the leasing of the leased premises described in that certain Lease (hereinafter referred to as the "Lease"), dated __________, 2016 between GREEN DESK LLC, whose address is 28470 Thirteen Mile Road, Suite 220, Farmington Hills, MI  48334 as Landlord (hereinafter referred to as "Landlord"), and AIR REALTY GROUP LLC, whose address is  360 Motor Parkway, Suite 100, Happuage, New York, 11788, as Tenant (hereinafter referred to as "Tenant"), does hereby covenant and agree as follows:

The undersigned does hereby guarantee the full, faithful and timely payment and performance by Tenant of all of the payments, covenants and other obligations of Tenant under or pursuant to the Lease.  If Tenant shall default at any time in the payment of any rent or any other sums, costs or charges whatsoever, or in the performance of any of the other covenants and obligations of Tenant, under or pursuant to the Lease, then the undersigned, at its expense, shall on demand of Landlord fully and promptly, and well and truly, pay all rent, sums, costs and charges to be paid by Tenant, and perform all the other covenants and obligations to be performed by Tenant, under or pursuant to the Lease, and in addition shall on Landlord's demand pay to Landlord any and all sums due to Landlord, including (without limitation) all interest on past due obligations of Tenant, costs advanced by Landlord, and damages and all expenses (including attorneys' fees and litigation costs), that may arise in consequence of Tenant's default.  The undersigned hereby waives all requirements of notice of the acceptance of this Guaranty and all requirements of notice of breach or nonperformance by Tenant.

The obligations of the undersigned hereunder are independent of the obligations of Tenant.  A separate action or actions may, at Landlord's option, be brought and prosecuted against the undersigned, whether or not any action is first or subsequently brought against Tenant, or whether or not Tenant is joined in any such action, and the undersigned may be joined in any action or proceeding commenced by Landlord against Tenant arising out of, in connection with or based upon the Lease.  The undersigned waives any right to require Landlord to proceed against Tenant or pursue any other remedy in Landlord's power whatsoever, any right to complain of delay in the enforcement of  Landlord's rights under the Lease, and any demand by Landlord and/or prior action by Landlord of any nature whatsoever against Tenant, or otherwise.

This Guaranty shall remain and continue in full force and effect and shall not be discharged in whole or in part notwithstanding (whether prior or subsequent to the execution hereof) any alteration, renewal, extension, modification, amendment or assignment of, or subletting, concession, franchising, licensing or permitting under the Lease.  The undersigned hereby waives notices of any of the foregoing, and agrees that the liability of the undersigned hereunder shall be based upon the obligations of Tenant set forth in the Lease as the same may be altered, renewed, extended, modified, amended or assigned.  For the purpose of this Guaranty and the obligations and liabilities of the undersigned hereunder, "Tenant" shall be deemed to include any and all concessionaires, licensees, franchisees, department operators, assignees, subtenants, permittees or others directly or indirectly operating or conducting a business in or from the Premises, as fully as if any of the same were the named Tenant under the Lease.

 

  

G-1

  

 

The undersigned's obligations hereunder shall remain fully binding although Landlord may have waived one or more defaults by Tenant, extended the time of performance by Tenant, released, returned or misapplied other collateral at any time given as security for Tenant's obligations (including other guaranties) and/or released Tenant from the performance of its obligations under the Lease.

This Guaranty shall remain in full force and effect notwithstanding the institution by or against Tenant, of bankruptcy, reorganization, readjustment, receivership or insolvency proceedings of any nature, or the disaffirmance of the Lease in any such proceedings or otherwise.

If this Guaranty is signed by more than one party, their obligations shall be joint and several, and the release of one of such guarantors shall not release any other of such guarantors.

Neuter terms should also refer, where applicable, to the feminine gender and the masculine gender; the singular reference shall also include the plural of any word if the context so requires.

This Guaranty shall be applicable to and binding upon the heirs, executors, administrators, representatives, successors and assigns of Landlord, Tenant and the undersigned.  Landlord may, without notice, assign this Guaranty in whole or in part.

In the event that Landlord should institute any suit against the undersigned for violation of or to enforce any of the covenants or conditions of this Guaranty or to enforce any right of Landlord hereunder, or should the undersigned institute any suit against Landlord arising out of or in connection with this Guaranty, or should either party institute a suit against the other for a declaration of rights hereunder, or should either party intervene in any suit in which the other is a party to enforce or protect its interest or rights hereunder, the prevailing party in any such suit shall be entitled to the fees of its attorney(s) in the reasonable amount thereof, to be determined by the court and taxed as a part of the costs therein.

The execution of this Guaranty prior to execution of the Lease shall not invalidate this Guaranty or lessen the obligations of Guarantor(s) hereunder.

 

  

G-2

  

 

Upon Landlord's written request, the undersigned shall promptly furnish Landlord (in any event, within twenty (20) days of request), from time to time, with financial statements (including, without limitation, operating statements including an annual profit and loss statement for the individual store unit covered by the Lease) reflecting the undersigned’s current financial condition, and written evidence of ownership of managing and controlling interests in the undersigned and in any entities which directly or indirectly control or manage the undersigned.

The undersigned shall, without charge and within twenty (20) days after any request of Landlord, certify in writing to any person specified in such request, as to the existence, amendment, validity of this Guaranty, the existence of any default or counterclaim hereunder or under the Lease and any other matter reasonably requested.  Any such certificate may be relied upon by any party requesting it and by any person to whom the same may be exhibited.

This Guaranty is made pursuant to, and shall be interpreted and applied in accordance with, the laws of the State of Michigan.

IN WITNESS WHEREOF, the undersigned has executed this Guaranty this _____day of _________, 201__.

 

	 	

AIR INDUSTRIES GROUP,

a Nevada corporation

By:___________________________

Name:_________________________

Its:___________________________

 

	STATE OF __________ 	)
	 	)  SS.
	COUNTY OF ________ 	)

 

On this _____ day of ____________, 201__, before me personally appeared ____________, the ___________________ of AIR INDUSTRIES GROUP, a Nevada corporation, to me known to be the person who executed the foregoing Guaranty and acknowledged before me that he is duly authorized and did execute same on behalf of said corporation.

 

	 	
 

________________________________

Notary Public

__________________County, Michigan

My Commission Expires:_____________

 

  

G-3

  

 

EXHIBIT H

LEASE

 

[See attached]

 

  

H-1

  

 

LEASE AGREEMENT

 

Between

 

GREEN DESK LLC,

a Michigan limited liability company,

as Landlord,

 

and

 

AIR REALTY GROUP LLC,

a Connecticut limited liability company,

as Tenant,

 

Dated

as of

 

_________, 201__

 

  

1

  

 

LEASE AGREEMENT

THIS LEASE AND AGREEMENT (the “Lease”) is made and entered into effective as of the ____th day of ________, 201___ (the “Effective Date”) by and between GREEN DESK LLC, a Michigan limited liability company (the “Landlord”) and AIR REALTY GROUP LLC, a Connecticut limited liability company (the “Tenant”)

 

W I T N E S SE T H:

WHEREAS, Landlord is the owner of fee simple title to certain real property located in the Town of Barkhamsted, County of Litchfield, State of  Connecticut commonly known as 236 New Hartford Road, Barkhamsted, Connecticut 06063, and legally described in Exhibit A attached hereto (the “Land”), upon which a building has been constructed (“Building”), (the Building, together with related site improvements the “Improvements”); (the Land and the Improvements, together with all licenses, rights, privileges and easements appurtenant thereto shall be collectively referred to herein, and all tangible personal property, including fixtures located therein as the “Premises”); and

 

WHEREAS, Tenant desires to lease from Landlord, and Landlord has agreed to lease to Tenant, the Premises upon the terms and conditions as more particularly hereinafter provided and described.

 

NOW, THEREFORE, for and in consideration of the premises hereof, the sums of money to be paid hereunder, and the mutual and reciprocal obligations undertaken herein, the parties hereto do hereby covenant, stipulate and agree as follows:

ARTICLE I.

AGREEMENT TO LEASE

1.1 Demise. Landlord does hereby demise, and lease to Tenant, and Tenant does hereby lease and take as tenant from Landlord, the Premises upon those terms and conditions hereinafter set forth.

 

1.2 Condition. Tenant acknowledges and agrees that the Premises is and shall be leased by Landlord to Tenant in its present “as is” condition and that Landlord makes absolutely no representations or warranties whatsoever with respect to the Premises or the condition thereof. Tenant acknowledges that Landlord has not investigated and does not warrant or represent to Tenant that the Premises are fit for the purposes intended by Tenant or for any other purpose or purposes whatsoever, and Tenant acknowledges that the Premises are to be leased to Tenant in their existing condition, i.e., “as-is”, on and as of the Possession Date (as hereinafter defined). Tenant acknowledges that Tenant shall be solely responsible for any and all actions, repairs, permits, approvals and costs required for the rehabilitation, renovation, use, occupancy and operation of the Premises in accordance with applicable governmental requirements, including, without limitation, all governmental charges and fees, if any, which may be due or payable to applicable authorities. Tenant agrees that, by leasing the Premises, Tenant warrants and represents that Tenant has examined and approved all things concerning the Premises which Tenant deems material to Tenant’s leasing and use of the Premises. Tenant further acknowledges and agrees that (i) neither Landlord nor any agent of Landlord has made any representation or warranty, express or implied, concerning the Premises or which have induced Tenant to execute this Lease, (ii) any other representations and warranties are expressly disclaimed by Landlord, and (iii) Tenant has previously owned the Premises, is familiar with both the physical, environmental and economic condition of the Premises and is responsible for all aspects of the Premises.

 

  

2

  

 

1.3 Quiet Enjoyment. Landlord covenants and agrees that so long as Tenant shall timely pay all rents due to Landlord from Tenant under this Lease and keep, observe and perform all covenants, promises and agreements on Tenant’s part to be kept, observed and performed hereunder, Tenant shall and may peacefully and quietly have, hold and occupy the Premises free of any interference from Landlord; subject, however, and nevertheless to the terms, provisions and conditions of this Lease and subject to the terms of any mortgage encumbering the Premises.

 

ARTICLE II.

TERM

2.1 Term. The initial term of this Lease (the “Term”) shall, unless sooner terminated as elsewhere provided in this Lease, commence on the Effective Date and shall terminate and expire at 11:59 p.m. on the last date of the 15th Lease Year. The Initial Term, together with any Extension Period (defined in Section 2.4 as hereinafter defined) shall be collectively referred to herein as the “Term”.

2.2 Rental Commencement Date. For the purposes of this Lease, the “Rental Commencement Date” shall be the Effective Date hereof.

 

2.3 Possession Date. For the purposes of this Lease, the “Possession Date” shall be the date on which Landlord grants Tenant exclusive possession of the Premises, which shall be the Effective Date hereof.

 

2.4 Term Extensions. The term of the Lease shall automatically be extended beyond the Initial Term for up to three (3) successive five (5) year Extension Periods upon the same terms, covenants, conditions and rent as set herein (each, an “Extension Period”) (other than any prior Extension Period) unless Tenant notifies Landlord in writing in accordance with the notice provisions hereof at least twelve (12) months before the last day of the Initial Term or nine (9) months before the last day of the then current Extension Period, as applicable (the “Notice Date”) that the Lease shall terminate at the end of such current term without further extension.   Notwithstanding the foregoing, Landlord, at its sole option, and notwithstanding other remedies for Tenant’s default set forth herein, may refuse, by written notice to Tenant, to extend the Term of this Lease if, at the Notice Date or at the time of commencement of an Extension Period, Tenant is in default under any provision of this Lease as to which default Landlord has given notice to Tenant in accordance with this Lease hereof and such default remains uncured after the expiration of any applicable cure period, by and upon the delivery of such notice, all remaining rights of extension  shall automatically expire.

 

  

3

  

 

2.5 Termination. Notwithstanding any present or future law to the contrary, this Lease shall not be terminated by Tenant for any failure of Landlord to perform pursuant to the terms and conditions of this Lease or otherwise for any reason except as expressly provided herein.

 

ARTICLE III.

RENT

 

3.1 Base Rent. Beginning on the Rental Commencement Date, and subject to proration as set forth below, Tenant shall pay monthly net base rent for the Premises in the amount set forth on Exhibit B attached hereto (“Base Rent”), together with all applicable sales and use taxes thereon. Base Rent shall be paid by Tenant to Landlord in equal monthly installments, in advance, on the first (1st) day of each calendar month commencing on the first (1st) day of the calendar month immediately following the Rental Commencement Date, it being agreed that Base Rent payable with respect to the period between the Rental Commencement Date and the first day of the following calendar month shall be due at the time that the first payment of Base Rent is due.

 

For the purposes of this Lease, the term “Lease Year” shall mean and be defined as each twelve month period commencing on the first day of the calendar month immediately following the Rental Commencement Date; provided, however, that the first Lease Year shall include the period from the Effective Date to the first day of the next following calendar month after the Rental Commencement Date. Base Rent shall be proportionately prorated for any extended or partial Lease Year (i.e., the first Lease Year and/or the final Lease Year).

 

3.2 Additional Rent; Rent Defined. If Landlord shall, upon no less than ten (10) days prior written notice to Tenant (other than in the event of an emergency for which only notices which are reasonable under the circumstances shall be given), make any expenditure for which Tenant is responsible or liable under this Lease, or if Tenant shall become obligated to Landlord or others under this Lease for any sum other than Base Rent as hereinabove provided, the amount thereof shall be deemed to constitute additional rent (“Additional Rent”) and shall be due and payable by Tenant to Landlord or others, together with all applicable sales taxes thereon, if any, within thirty (30) days after receipt of an invoice therefor.

 

For the purpose of this Lease, the term “Rent” shall mean and be defined as all Base Rent, and Additional Rent due from Tenant to Landlord hereunder and all other sums due under this Lease for the purpose of Section 592(b)(6) of the Bankruptcy Code, 11 U.S.C. 502(b)(6).  Except as may be expressly otherwise provided in this Lease, there shall be no abatement, diminution or reduction of Base Rent, Additional Rent or any other sums due under this Lease under any circumstances including, without limitation, due to charges or other compensation claimed by or allowed to Tenant or any person claiming under it, nor shall there be any abatement or diminution or reduction of the performance of the obligations of Tenant under any circumstances.

 

  

4

  

 

3.3 Payment of Rent. Each of the foregoing amounts of Rent and other sums shall (upon receipt of an invoice as to Additional Rent only) be paid to Landlord or others without demand and without deduction, set-off, claim or counterclaim of any nature whatsoever which Tenant may have or allege to have against Landlord, and all such payments shall, upon receipt by Landlord, be and remain the sole and absolute property of Landlord. All such Rent and other sums shall be paid to Landlord in legal tender of the United States at the address to which notices to Landlord are to be given or to such other party or to such other address as Landlord may designate from time to time by written notice to Tenant. If Landlord shall at any time accept any such Rent or other sums after the same shall become due and payable, such acceptance shall not excuse a delay upon subsequent occasions, or constitute or be construed as a waiver of any of Landlord’s rights hereunder.

 

3.4 Past Due Rent. If Tenant fails to make any payment of Rent or any other sums or amounts to be paid by Tenant under the Lease on or before the date such payment is due and payable, any such past due payment shall bear interest from the date such payment became due to the date of payment thereof by Tenant at a rate which is equal to the lesser of (i) twelve percent (12%) per annum, or (ii) the maximum interest rate then allowable under the laws of the State in which the Premises are located. Any payment of Rent not paid within any permitted grace period specifically set forth in this Lease shall incur a late charge for reimbursement of Landlord’s anticipated out-of-pocket expenses due to such failure of five percent (5%) of the amount of such payment. Such late charge and interest shall constitute Additional Rent and shall be due and payable with the next installment of Rent due hereunder.  Notwithstanding the foregoing or anything else to the contrary contained in this Section, Tenant shall not be responsible for the late charge set forth in this Section if the first time Tenant fails to pay Base Rent when due Tenant pays such Base Rent within ten (10) days after delivery of written notice of such default.

 

3.5 No Diminution or Abatement of Rent. No abatement, diminution or reduction (i) of Rent, charges or other compensation, or (ii) of Tenant’s other obligations hereunder shall be allowed to Tenant or any person claiming under Tenant, under any circumstances or for any reason whatsoever, except as expressly provided otherwise herein.

 

ARTICLE IV.

USE AND OPERATION OF PREMISES

4.1 Permitted Use. Tenant covenants that it shall, throughout the Term of this Lease, use and occupy the Premises only for lawful industrial and office uses or other lawful uses consistent with applicable zoning and which do not conflict with covenants, restrictions or other matters of record affecting title to the Premises.

 

  

5

  

 

4.2 Compliance with Laws. Tenant shall at all times keep and maintain the Premises in compliance with all applicable laws, ordinances, statutes, rules, regulations, orders, directions and requirements of all federal, state, county and municipal governments and of all other governmental agencies or authorities having or claiming jurisdiction over the Premises or the business activities conducted thereon or therein and of all of their respective departments, bureaus, agencies or officers, and of any insurance underwriting board or insurance inspection bureau having or claiming such jurisdiction or any other body exercising similar functions and of all insurance companies from time to time selected by Tenant to write policies of insurance covering the Premises and any business or business activity conducted thereon or therein. Without limiting the foregoing, to the extent any governmental entity requires more parking spaces to be located on the Premises or more striped spaces to be located on the Premises, Tenant shall be responsible for complying with any such requirement.

4.3 Hazardous Materials, Sewage Prohibited and Connecticut Transfer Act. Tenant hereby agrees that Tenant, its employees, agents, invitees, licensees, contractors and subtenants (if permitted), shall handle, store, dispose of and use any and all Hazardous Materials (as hereinafter defined) located on the Premises which are standard for Tenant’s intended use of the Premises in accordance with Environmental Requirements (as hereinafter defined). Except for such Hazardous Materials which are standard for or used in connection with such intended use, Tenant shall at all times from and after the Effective Date keep the Premises free of Hazardous Materials. Neither Tenant nor any of its employees, agents, invitees, licensees, contractors or subtenants (if permitted) shall use, generate, manufacture, refine, treat, process, produce, store, deposit, handle, transport, release, or dispose of Hazardous Materials in, on or about the Premises (including but not limited to soil, groundwater, and surface water), in violation of any Environmental Requirements currently in existence or hereafter enacted or rendered.

 

Tenant shall give Landlord prompt written notice of any claim action, proceeding or suit which is instituted or threatened in writing against Tenant or Landlord of which Tenant receives notice of a Release (as hereinafter defined) of Hazardous Materials.  Such notice shall include as much detail as reasonably possible, including identity of the location, type and quantity of Hazardous Materials released, and shall also include copies of any relevant documents received in connection therewith.

 

Commencing upon the Effective Date and continuing during the Term of this Lease, Tenant shall indemnify, defend and hold Landlord, its successors and assigns, and their respective directors, officers, employees and agents, harmless from and against any claims (including third party claims), demands, penalties, fines, liabilities, settlements, damages, costs or expenses of whatever kind or nature, known or unknown, including reasonable attorneys’ fees, fees of environmental consultants and other experts and laboratory fees, contingent or otherwise, arising out of or in any way related to the following matters: (i) the release, use, storage, treatment, transportation, transfer, manufacture, refinement, handling, production, disposal or threatened release of any Hazardous Materials, on, over, under, from through or affecting the Premises or the air, soil, groundwater or 

 

  

6

  

 

surface water, vegetation, buildings, personal property, persons or animals thereon (collectively a “Release”); (ii) any personal injury (including wrongful death) or property damages (real or personal) arising out of or related to such Release; (iii) any lawsuit brought or threatened in writing, settlement reached (with the consent of Tenant, not to be unreasonably conditioned, withheld or delayed) or governmental order relating to a Release; (iv) any actual or noticed violation of or liability pursuant to Environmental Requirements which is based upon or in any way related to a Release; (v) any Pre-Existing Environmental Condition (as hereinafter defined); and/or (vi) the breach of any warranty, representation or covenant contained in this Section. The indemnity provided in this Section shall survive the expiration or termination of this Lease and is not limited or otherwise affected by Landlord’s knowledge of any matter. Tenant further agrees that Tenant shall be responsible, at its sole cost and expense, for all Corrective Action (as hereinafter defined) relative to: (a) any and all Hazardous Materials in soil, groundwater or surface water on or about the Premises in amounts, concentrations or levels that meet or exceed Environmental Requirements, and (b) any Pre-Existing Environmental Condition.

 

As used herein, the term “Hazardous Materials” shall mean and be defined as any and all toxic or hazardous (or words of similar import or regulatory effect) substances, chemicals, materials or pollutants, of any kind or nature, whether naturally occurring or manmade, which are regulated, governed, restricted or prohibited by any federal, state or local law, decision, statute, rule, or ordinance currently in existence or hereafter enacted or rendered, and shall include (without limitation), all oil, gasoline, petroleum based substances and asbestos insulation, polychlorinated biphenyls and urea formaldehyde insulation. As used herein, the term “Pre-Existing Environmental Condition” means presence of: (i) Hazardous Materials in soil, groundwater or surface water on or about the Premises which first existed or first occurred prior to the Effective Date; or (ii) any other environmental condition which first existed or first occurred prior to the Effective Date. “Environmental Requirements”, as used herein, shall mean all applicable federal, state, and local government laws (including common law), rules, regulations, statutes, codes, ordinances, directives, guidance documents, cleanup or other standards, and any other governmental requirements or standards which pertain to, regulate, or impose liability or standards of conduct concerning the environment, natural resources, or the use, storage, human exposure to, handling, transportation, release, cleanup or disposal of Hazardous Substances. “Corrective Action” shall mean investigation, assessment, monitoring (including post-remediation confirmation monitoring), sampling, analysis, cleanup, removal, disposal, on-site treatment, off-site treatment, active remediation, passive remediation, remediation alternatives including but not limited to risk-based corrective action, if applicable, and/or other activities approved, concurred in or required by the governmental agency having jurisdiction over the Premises.

 

  

7

  

 

Tenant shall not discharge or permit to be discharged from the Premises any Hazardous Materials on, in or from the Premises. Any sewage which is produced or generated in connection with the use or operation of the Premises shall be handled and disposed of by Tenant as required by and in compliance with all applicable local, state and federal laws, ordinances and rules or regulations, including Environmental Requirements.

Tenant agrees that no underground storage tanks or underground storage receptacles shall be installed or constructed by Tenant on the Premises.

Notwithstanding anything contained herein to the contrary, Tenant shall ensure any alterations or improvements at the Premises be conducted so as to not expose in an unsafe manner any persons working in or visiting the Premises to Hazardous Materials, and in connection with any such alterations or improvements shall remove, treat or encapsulate any Hazardous Materials present upon the Premises and affected by such work as required by and in compliance with Environmental Requirements.

Tenant shall not, during the Term of this Lease, conduct or allow any activities to be performed or occur on the Premises that would cause or allow the Premises or any portion therefor to become an “establishment” as that term is defined in the Connecticut Transfer Act, Conn. Gen. Stat. §§ 22a-134 et seq. (the “Transfer Act”).  Notwithstanding  the foregoing, if Tenant causes or allows the Premises or any portion thereof to be or become an “establishment” pursuant to the Transfer Act, then Tenant shall be responsible for any and all costs and expenses relating to Landlord’s compliance with the Transfer Act in any future transaction subject to the Transfer Act, including signing as the “certifying party” as defined in the Transfer Act and conducting any pre- or post-closing obligations, including, without limitation, filing the applicable Transfer Act Forms, investigation, remediation and post-remediation monitoring.

Subject to Article XII of this Lease, Landlord shall have the right to perform an inspection of the Premises at any time with reasonable prior notice to Tenant to confirm compliance with this Section 4.3 and with Section 4.4 below.  In addition, Landlord may commission, or allow lenders or prospective purchasers or tenants to commission, environmental site assessments (“ESAs”), including without limitation Phase I and Phase II ESAs, of the Premises at any time.  If an ESA indicates Tenant has or may have caused a Release of Hazardous Materials or otherwise violated any applicable Environmental Requirements, then without limiting any other provisions of this Lease, Tenant shall pay the reasonable documented cost for the ESA and any additional testing, assessment, investigation or monitoring recommended as a result of the ESA.

 

4.4 Mold and Other Environmental Conditions. Tenant shall, during the Term of this Lease and any renewals thereof, (i) provide prompt written notification to Landlord of any adverse change to the Premises, such as changes to any environmental condition, including the presence of biocontaminants, such as mold; (ii) promptly undertake appropriate assessment, remedial and preventative actions sufficient to meet any Environmental Requirements or guidelines issued by applicable authoritative bodies or regulatory agencies in connection with a determination of any adverse change, and, in any event with respect to mold contamination, Tenant shall undertake (a) removal of the mold, (b) abatement of the underlying cause of the mold (including water intrusion), and (c) repair of any leaks and associated water damage at the Premises. Notwithstanding anything contained herein to the contrary, if Tenant fails to perform or cause such removal, abatement and/or restoration, and such failure shall continue for thirty (30) days after Tenant receives written notice from Landlord demanding the cure thereof (provided that if the same cannot be reasonably cured within such thirty (30) day period and Tenant shall have commenced to cure the same within such thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for as long as it shall require Tenant in the exercise of diligence to cure the same, it being agreed that no such extension shall be for a period in excess of forty five (45) days), Landlord may, upon one (1) business day prior written notice, perform or cause to be performed such removal, abatement and/or restoration, and Tenant shall reimburse Landlord for all the reasonable costs and expenses thereof within ten (10) days after receipt of bills therefor from Landlord.

 

  

8

  

 

4.5 Compliance With Restrictions, Etc. Tenant, at its expense, shall comply with all restrictive covenants or other title exceptions affecting the Premises and comply with and perform all of the obligations set forth therein to the extent that the same are applicable to the Premises or to the extent that the same, if not complied with or performed, would impair or prevent the continued use, occupancy and operation of the Premises. Further, in addition to Tenant’s payment obligations under this Lease, Tenant shall pay all reasonable, legal sums charged, levied or assessed under any restrictive covenants, declaration, reciprocal easement agreement or other title exceptions affecting the Premises promptly as the same become due and shall furnish Landlord evidence of payment thereof and indemnify, defend and hold harmless Landlord for any claim against Landlord for any such matters.

 

ARTICLE V.

TAXES AND ASSESSMENTS

 

5.1 Real Estate Taxes and Assessments. From and after the Effective Date and continuing throughout the Term of this Lease Tenant’s obligations with respect to Real Estate Taxes (as hereinafter defined) shall be as follows:

 

(a) Tenant shall pay directly to the taxing authorities, twenty (20) days prior to the date Real Estate Taxes may be paid without penalties or interest, the ad valorem real estate taxes, any payments in lieu of ad valorem taxes, property taxes, and all assessments, annual benefits, levies, fees and all other governmental charges, general and special, ordinary and extraordinary, foreseen and unforeseen, attributable and levied upon or assessed and payable by Landlord with respect to the Premises (collectively the “Real Estate Taxes”).  Real Estate Taxes shall also include (i) other taxes, other charges and impositions imposed by the State in which the Premises is located or any subdivision thereof which:  (A) are in replacement of or in addition to all or any part of ad valorem taxes as sources of revenue, and (B) are based in whole or in part upon the land of which the Premises are a part or any interest therein or the ownership thereof, or the rents or other income therefrom, including, without limitation, income, single business, franchise, excise, license, privilege, sales, use, and occupancy taxes; (ii) taxes or surcharges of any kind or nature upon, against or with respect to the parking areas or the number of parking spaces in the Premises.

 

  

9

  

 

(b) Tenant shall deliver to Landlord evidence of the payment of the Real Estate Taxes no later than fifteen (15) days after the date Real Estate Taxes can be paid without penalties or interest.

 

(c) Tenant shall pay and discharge, when due, all taxes assessed during the Term of this Lease against any leasehold interest or personal property of any kind owned by or placed in the Premises by Tenant. In addition to the Rent and any other sums or amounts required to be paid by Tenant to Landlord pursuant to the provisions of this Lease, Tenant shall also pay to Landlord, simultaneously with such payment of such Rent or other sums or amounts, the amount of any applicable sales, use or excise tax on any such Rent or other sums or amounts so paid by Tenant to Landlord, whether the same be levied, imposed or assessed by the State in which the Premises is located or any other federal, state, county or municipal governmental entity or agency. Any such sales, use or excise taxes shall be paid by Tenant to Landlord at the same time that each of the amounts with respect to which such taxes are payable are paid by Tenant to Landlord.

(d)           If Landlord does not appeal the real estate tax assessment after request of Tenant, Tenant may, as long as it pays all real estate taxes first, upon notice to Landlord, appeal the real estate tax assessment attributable to the Premises and Landlord shall cooperate, including timely signing all required applications and documents and, if required, being named as a plaintiff.

ARTICLE VI.

UTILITIES

From and after the Effective Date Tenant shall be liable for and shall pay directly all charges, rents and fees (together with any applicable taxes or assessments thereon) when due for water, gas, electricity, air conditioning, heat, septic, sewer, refuse collection, telephone, telecommunications cable and any other utility charges or similar items in connection with the use or occupancy of the Premises during the Term of this Lease. Landlord shall not be responsible or liable in any way whatsoever for the impairment, interruption, stoppage, or other interference with any utility services to the Premises.

 

  

10

  

 

ARTICLE VII.

INSURANCE

7.1. During the Term, Tenant, at its sole cost, but for the mutual benefit of Landlord and Tenant, shall maintain the following insurance:

(a) General Comprehensive public liability insurance protecting and indemnifying Landlord and Tenant against all claims for damages to person or property or for loss of life or property occurring in, upon or about the Premises and the areas adjacent thereto, in the amount of not less than Three Million and 00/100 ($3,000,000.00) per occurrence and Five Million and 00/100 ($5,000,000.00) annual general aggregate limit per location, naming Landlord, its managing agent, if any, and any mortgagee(s), as their respective interests may appear as additional insureds;

(b) Insurance against damage to the Building by all risks of direct physical loss (at Landlord's option to include earthquake, flood and such other risks as Landlord deems appropriate) with the policy to contain either the agreed amount endorsement or a replacement cost endorsement, in amounts equal to one hundred (100%) percent of full replacement cost, and in any event in an amount sufficient to prevent Landlord from becoming a co-insurer. Replacement Cost shall be determined from time to time by an independent appraiser, architect or engineer designated by Landlord and reasonably acceptable to Tenant, at Tenant's reasonable expense. The policy may include, at Landlord's reasonable option, a contingent liability endorsement and/or demolition and increased cost of construction endorsement in order for the Building to be constructed in accordance with all requirements and regulations which may be applicable at the time of loss or damage, of all governmental agencies having jurisdiction over the Building and construction of the Building.

(c) "All Risk" property insurance against fire, theft, vandalism, malicious mischief, sprinkler leakage and such additional perils as are now, or hereafter may be, included in a standard extended coverage endorsement from time to time in general use in the State in which the Premises is located upon property of every description and kind owned by Tenant and/or under Tenant's care, custody or control located in the Building or the Premises or for which Tenant is legally liable or installed by or on behalf of Tenant, including by way of example and not by way of limitation, fixtures, fittings and affixed installations in an amount equal to the full replacement cost thereof.

(d) Boiler and machinery insurance coverage, if appropriate, for all eligible objects, including pressure vessels and air conditioning equipment, with the electrical apparatus clause, with such limits as may be reasonably necessary to properly insure the values at risk in the Building.

(e) Business interruption and rent loss insurance, against the loss of Base and Additional Rent for no less than one (1) year as provided herein.

 

  

11

  

 

(f) Workers' Compensation Insurance (including employers' liability insurance) covering all persons employed at the Premises to the extent required by the laws of the State in which the Premises is located.

(g) Insurance for such other hazards and in such amounts as Landlord may reasonably require and as at the time are commonly insured against with respect to buildings similar in character, general location and particular manner of use and occupancy to the Premises in relative amounts normally carried with respect thereto. If, by reason of changed economic conditions, the insurance amounts referred to in this Section become inadequate, in Landlord's reasonable determination, Tenant agrees to increase the amounts of such insurance promptly upon Landlord's reasonable request.

Tenant represents, said representation being specifically designed to induce Landlord to execute this Lease, that Tenant's personal property, fixtures, goods and inventory and any other items which Tenant may bring to the Premises or which may be under Tenant's care, custody and control which may be subject to any claim for damages or destruction shall never exceed the amount of insurance which Tenant is required to carry pursuant to this Lease. Tenant shall name Landlord, its managing agent, if any, and Landlord's mortgagee[s] as an additional named insureds, as their interests may appear, with Landlord (or its mortgagee(s)) being designated as "loss payee" in all fire/casualty real property cases only. If at any time the amount of personal property, fixtures, goods and inventory or other items located at the Premises shall exceed said amount, Tenant covenants to so notify Landlord and at the same time increase the amount of insurance required to be carried pursuant to Subsection 7.1(c) to an amount sufficient to cover the aforesaid to preclude any liability on Landlord's part to Tenant. Should Tenant fail to do so, or fail to maintain insurance coverage adequate to cover the aforesaid, naming Landlord, its managing agent, if any, and Landlord's mortgagee[s] as an additional named insured, then, after written notice and a ten (10) day opportunity to cure, Tenant shall be in default hereunder and shall be deemed to have breached its covenants as set forth herein.

Tenant shall not do or permit to be done any act or thing on the Premises which shall invalidate or be in conflict with, or cause additional premium for any insurance policy insuring the Premises.

All policies of insurance required pursuant to this Section shall be from a company rated in the A.M. Best Key Rating Guide with a policyholder's service rating of A and a financial rating of X or such other rating as may be required by Landlord's mortgagee. The insurance company shall be licensed to do business in the State in which the Premises is located and a certificate(s) evidencing the existence of such policy shall be delivered to Landlord, together with evidence of the payment of the premiums therefore upon the execution of this Lease. Each insurance company shall agree to provide a notice of cancellation or non-renewal to Landlord and any mortgagee at least thirty (30) days prior to said event becoming effective. At least thirty (30) days prior to the expiration or termination date of any policy, Tenant shall deliver a renewal or replacement policy, or certificate(s) evidencing the existence thereof, to Landlord together with proof of the payment of the premium therefor. No deductible on any insurance required hereunder shall exceed Ten Thousand and 00/100 ($10,000.00) Dollars. If Tenant shall fail to comply with the provisions of this Article VII, Landlord shall have the right on no less than three (3) days prior written notice (unless Landlord needs to accelerate the implementation of such insurance due to the lapse or possible lapse of such insurance), but not the obligation, to procure such insurance and pay the premiums thereof and Landlord shall be entitled to repayment by Tenant immediately on demand, as Additional Rent.

 

  

12

  

 

7.2  Tenant is and shall be in exclusive control and possession of the Premises as provided herein, and Landlord shall not be liable to Tenant for any loss suffered by Tenant under any circumstances, including, but not limited to: (i) loss of or injury to Tenant or to Tenant's property or that for which Tenant is legally liable from any cause whatsoever, including but not limited to theft or burglary; or (ii) that which results from or is incidental to the furnishing of or failure to furnish or the interruption in connection with the furnishing of any service; or (iii) that which results from any inspection, repair, alteration or addition or the failure thereof undertaken or failed to be undertaken by Landlord; or (iv) any interruption to Tenant's business, however occurring.

The aforesaid exculpatory Section is to induce Landlord, in its judgment, to avoid or minimize covering risks which are better quantified and covered by Tenant either through insurance, thereby avoiding the need to increase the rent charged Tenant to compensate Landlord for the additional costs in obtaining said coverage or reserving against such losses.

Tenant shall indemnify, defend and save Landlord harmless against and from all and all liabilities, claims, suits, fines, penalties, damages, losses, fees, obligations, costs and expenses (including attorneys' fees) which may be imposed upon, incurred by or asserted against Landlord by reason of:

(A) Any work or thing done in, on or about the Premises or any part thereof by Tenant or permitted by Tenant;

(B) Any use, occupation, condition or operation of the Premises by Tenant;

(C) Any act or omission on the part of Tenant or any of its agents, employees, invitees, licensees or subtenants on or within the Premises or any part thereof, or any occurrence on any of the same;

(D) Any accident, injury (including death) or damage to any third party or property owned by someone other than Tenant and not under the care, custody or control of Tenant occurring in, on or about the Premises or any part thereof;

(E) Any failure on the part of Tenant to perform or comply with any of the covenants, agreements, terms or conditions contained in this Lease.

 

  

13

  

 

The provisions of this Section shall survive the expiration or earlier termination of the Lease.

7.3. Any policies required to be furnished by Tenant pursuant to this Article VII will unequivocally provide an undertaking by the insurers to notify Landlord and the mortgagees or ground lessors of Landlord (who Tenant has received notice thereof and the address of such mortgages or ground lessors) in writing not less than thirty (30) days prior to any material change, reduction in coverage, cancellation or other termination thereof.

7.4 All policies of insurance set forth in this Article shall expressly provide that any losses thereunder shall be adjusted with Landlord, Tenant and Landlord’s mortgagees.  The Tenant will not take out separate insurance concurrent in form or contributing in the event of loss with that required (or which may reasonably be required) pursuant to this paragraph to be furnished by the Tenant unless the Landlord and each of Landlord’s mortgagees are included therein as an insured, with all losses payable thereunder as provided above.  Any such additional policy shall be subject to Landlord’s prior consent and if approved, shall be delivered to Landlord.

7.5 Carriers and Features. All insurance policies required to be carried by Tenant as provided in this Article shall be issued by insurance companies reasonably approved by Landlord authorized and licensed to do business in the State in which the Premises is located. The insurance companies must have (as determined by Landlord at its discretion): (i) an investment grade rating for claims paying ability assigned by a credit rating agency approved by Landlord and (ii) a general policy rating of A or better and a financial class of X or better by A.M. Best Company, Inc. All such policies shall be for periods of not less than one year and Tenant shall renew the same at least thirty (30) days prior to the expiration thereof. All such policies shall name Landlord as additional insured and any wholly or principally owned subsidiaries of Landlord that may now or hereafter exist, as well as any mortgagee or collateral assignee of Landlord, and shall require not less than thirty (30) days written notice to Landlord prior to any cancellation thereof or any change reducing coverage thereunder. In addition to the foregoing, all policies of insurance required in this Article shall contain above shall contain clauses or endorsements to the effect that (i) no act or negligence of Tenant, or anyone acting for Tenant, or failure to comply with the provisions of any policy which might otherwise result in a forfeiture of the insurance or any part thereof, shall in any way affect the validity or enforceability of the insurance insofar as Landlord is concerned, and (ii) Landlord shall not be liable for any insurance premiums thereon or subject to any assessments thereunder.

 

Tenant shall pay the premiums for all insurance policies which Tenant is obligated to carry under this Article and, at least thirty (30) days prior to the date any such insurance must be in effect, deliver to Landlord a copy of the policy or policies, or a certificate or certificates thereof (on ACORD 27 forms or equivalent), along with evidence that the premiums therefor have been paid for at least the next ensuing annual period.

 

  

14

  

 

7.6 Failure to Procure Insurance. In the event Tenant shall fail to procure insurance required under this Article and fail to maintain the same in full force and effect continuously during the Term of this Lease, Landlord shall be entitled to, upon no less than three (3) days’ written notice to Tenant (unless Landlord needs to accelerate the implementation of such insurance due to the lapse or possible lapse of such insurance), procure the same and Tenant shall immediately reimburse Landlord for such premium expense as past due Additional Rent.

 

7.7 Mutual Waiver of Subrogation. Tenant agrees that, if any property owned by it and located in the Premises shall be stolen, damaged or destroyed by an insured peril, Landlord shall not have any liability to Tenant, nor to any insurer of Tenant, for or in respect of such theft, damage or destruction, and Tenant and Landlord shall require all policies of risk insurance carried by it on its property in the Premises to contain or be endorsed with a provision in and by which the insurer designated therein shall waive its right of subrogation against Landlord or Tenant, as the case may be. Landlord agrees that, if any property owned by it and located in the Premises shall be stolen, damaged or destroyed by an insured peril, Tenant shall not have any liability to Landlord, nor to any insurer of Landlord, for or in respect of such theft, damage or destruction, and Landlord shall require all policies of risk insurance carried by it on its property in the Premises to contain or be endorsed with a provision in and by which the insurer designated therein shall waive its right of subrogation against Tenant.

ARTICLE VIII.

ADDITIONS, ALTERATIONS AND REMOVALS

 

8.1 Prohibition. Except as hereinafter expressly provided in Section 8.2, no portion of the Premises shall be demolished, removed or materially altered by Tenant in any manner whatsoever without the prior written consent and approval of Landlord, which may be withheld by Landlord in its sole and absolute discretion.

 

8.2 Permitted Renovations.

 

(a) Tenant shall be entitled and obligated to undertake all alterations to the Premises required by any applicable law or ordinance.

 

(b) Tenant shall be entitled to undertake non-structural alterations, renovations or modifications to the Premises which cost no more than Two Hundred Thousand Dollars ($200,000) per year without Landlord’s prior consent.

 

(c) Tenant shall not be entitled to undertake any structural alterations, renovations or modifications (collectively, “Structural Work”) to the Premises without Landlord’s prior written consent; provided, however, Landlord’s prior consent shall not be required for structural repairs or replacements of existing structural elements (e.g. replacing roof, the roof membrane roof covering, exterior walls, structural support beams); provided further however that Tenant shall give Landlord written notice before causing such structural repairs or replacements to be performed and shall also comply with the provisions of Section 9.2 below. Prior to performing any Structural Work, Tenant shall request Landlord’s consent, which consent shall be given or withheld within [thirty (30)] days of Tenant’s request. Landlord’s consent shall not be unreasonably withheld or delayed, but may be conditioned upon Tenant’s full compliance with the requirements of Section 9.2 below.  Landlord may retain expert consultants in connection with the review of any proposed Structural Work, and the reasonable cost thereof shall be reimbursed by Tenant.  Structural Work shall also include system wide repairs or replacements to the mechanical systems and exterior elevations.

 

  

15

  

 

(d) When performing any alterations or renovations to the Improvements, Tenant shall comply with all of the following requirements:

 

(i) No such alterations shall be undertaken by Tenant which materially and adversely affect the value of the Premises or without Landlord’s consent, materially decrease the square footage of the Improvements.

(ii) Before the commencement of any such alterations, Tenant or its agents shall furnish to Landlord either plans and specifications therefor depicting the scope of the Alterations or a reasonable detailed itemization thereof.

 

(iii) Before the commencement of any such alterations, Tenant shall obtain the approval thereof by all governmental departments or authorities having or claiming jurisdiction of or over the Premises, if required by such departments or authorities, and with any public utility companies having an interest therein, if required by such utility companies. In any such work, Tenant shall comply with all applicable laws, ordinances, requirements, orders, directions, rules and regulations of the federal, state, county and municipal governments and of all other governmental authorities having or claiming jurisdiction of or over the Premises and of all their respective departments, bureaus and offices, and with the requirements and regulations, if any, of such public utilities, of the insurance underwriting board or insurance inspection bureau having or claiming jurisdiction, or any other body exercising similar functions, and of all insurance companies then writing policies covering the Premises or any part thereof.

 

(iv) Tenant represents and warrants to Landlord that all such alterations will be performed in a good and workmanlike manner, in accordance with the terms, provisions and conditions of this Lease, the plans and specifications or itemization thereof approved by Landlord and all governmental requirements.

 

  

16

  

 

(v) Landlord shall have the right to inspect any such work on prior notice at all times during normal working hours accompanied by an authorized Tenant representative and to maintain at the Premises for that purpose (at its own expense) such inspector(s) as it may deem necessary so long as such inspections do not interfere with Tenant’s work (but Landlord shall not thereby assume any responsibility for the proper completion of the alterations in accordance with the terms of this Lease, nor any liability arising from the improper performance thereof).

 

(vi) All such alterations shall be performed at Tenant’s cost and expense and free of any expense to Landlord and free of any liens on Landlord’s title to or Tenant’s leasehold interest in the Premises.

 

(vii) Upon substantial completion of any such alterations Tenant shall procure a certificate of occupancy or other written approval, if available and if required, from the appropriate governmental authorities verifying the substantial completion thereof and shall provide a copy of same to Landlord.

 

(viii) Tenant shall, and hereby agrees to, indemnify and save and hold Landlord harmless from and against and reimburse Landlord for any and all loss, damage, cost and expense (including, without limitation, reasonable attorneys’ fees) incurred by or asserted against Landlord which is occasioned by or results, directly or indirectly, from any construction or renovation activities conducted upon the Premises by or at the direction of Tenant; whether or not the same is caused by or is the fault of Tenant or any contractor, subcontractor, laborer, supplier, materialman or any other third party.

 

(e) Upon expiration of or termination of the Term, Tenant shall not be required to remove any alterations or renovations made to the Improvements by Tenant. Landlord represents and warrants that Tenant shall have no obligation to remove any Improvements made to the Premises prior to the Effective Date hereof.

ARTICLE IX.

MAINTENANCE AND REPAIRS

9.1 Repairs by Tenant. From and after the Effective Date and continuing throughout the Term of this Lease Tenant shall at all times and at its sole cost and expense, put, keep, replace and maintain the Premises (including, without limitation, the roof, plumbing systems, electric systems and HVAC systems) in repair and in safe and substantial order and condition, shall make all repairs thereto, both inside and outside, structural and non-structural, ordinary and extraordinary, howsoever the necessity or desirability for repairs may occur, and whether or not necessitated by wear, tear, obsolescence or defects, latent or otherwise, and shall use all reasonable precautions to prevent waste, damage or injury. Tenant shall also, at its own cost and expense, put, keep, replace and maintain all landscaping, signs, sidewalks, roadways, driveways and parking areas within the Premises in good repair and in good, safe and substantial order and condition and free from dirt, standing water, rubbish and other obstructions or obstacles.

 

  

17

  

 

9.2 Landlord’s Obligation. Landlord shall not be required to make any alterations, reconstructions, replacements, changes, additions, improvements or repairs of any kind or nature whatsoever to the Premises or any portion thereof (including, without limitation, any portion of the Improvements) at any time during the Term of this Lease.

ARTICLE X.

DAMAGE OR DESTRUCTION

 

10.1 Restoration and Repair. If, during the Term of this Lease, the Improvements shall be destroyed or damaged in whole or in part by fire, windstorm or any other cause whatsoever, Tenant shall give Landlord prompt notice thereof and shall repair, reconstruct or replace the Improvements, or the portion thereof so destroyed or damaged (whichever is reasonably required), at least to the extent of the value and character thereof existing immediately prior to such occurrence. All work shall be started as soon as practicable and completed, at Tenant’s sole reasonable cost and expense. Tenant shall, however, immediately take such action as is necessary to assure that the Premises (or any portion thereof) do not constitute a nuisance or otherwise present a health or safety hazard.

 

10.2 Escrow of Insurance Proceeds. In the event of a casualty resulting in a loss payment for the Improvements in an amount greater than ONE HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000.00), the proceeds of all insurance policies maintained by Tenant shall be deposited in Landlord’s name in a joint escrow account at a bank or other financial institution agreed to by Landlord and Tenant, and shall be used by Tenant for the repair, reconstruction or restoration of the Improvements together with its own funds advanced by Tenant, which, together with the insurance proceeds, are sufficient to fully restore the Improvements. Such proceeds and such additional funds as are deposited by Tenant shall be disbursed periodically upon receipt of partial lien waivers and certification of the architect or engineer having supervision of the work that such amounts are the amounts paid or payable for the repair, reconstruction or restoration. Tenant shall obtain and make receipted bills available to Landlord and, upon completion of said work, full and final waivers of lien. In the event of a casualty resulting in a loss payment for the Improvements in an amount equal to or less than the amount stated above, the proceeds shall be paid to Tenant, and shall be applied towards repair, reconstruction and restoration.

 

10.3 Uninsured Losses. Nothing contained herein shall relieve Tenant of its obligations under this Article if the destruction or damage is not covered, either in whole or in part, by insurance.

 

  

18

  

 

ARTICLE XI.

CONDEMNATION

 

11.1 Complete Taking. If the whole of the Premises shall be taken or condemned for any public or quasi-public use or purpose, by right of eminent domain or by purchase in lieu thereof, or if a substantial portion of the Premises shall be so taken or condemned that the portion or portions remaining is or are not sufficient and suitable, in the mutual reasonable judgment of Landlord and Tenant, for the continued operation of the business contemplated by this Lease to be conducted thereon, therein or therefrom so as to effectively render the Premises untenantable, then this Lease and the Term hereby granted shall cease and terminate as of the date on which the condemning authority takes possession and all Rent shall be paid by Tenant to Landlord up to that date or refunded by Landlord to Tenant if Rent has previously been paid by Tenant beyond that date.

 

11.2 Partial Taking. If a portion of the Premises is taken, and the portion or portions remaining can, in the mutual reasonable judgment of Landlord and Tenant, be adapted and used for the conduct of Tenant’s business operation, such that the Premises are not effectively rendered untenantable or unfit for Tenant’s business purposes, then the Tenant shall promptly restore the remaining portion or portions thereof to a condition comparable to their condition at the time of such taking or condemnation, less the portion or portions lost by the taking, and this Lease shall continue in full force and effect except that the Rent payable hereunder shall, if necessary, be equitably adjusted to take into account the portion or portions of the Premises lost by the taking.

 

11.3 Award. The entire award for the Premises or the portion or portions thereof so taken shall be apportioned between Landlord and Tenant as follows: (i) if this Lease terminates due to a taking or condemnation, Landlord shall be entitled to the entire award (except for any separate award made to Tenant for its moving expenses, interruption of or damage to Tenant’s business, any unamortized leasehold improvements paid for by Tenant (regardless of whether such improvements are part of the Improvements or Landlord’s property pursuant to this Lease) and the value of any Tenant’s property, pursuant to a separate independent action taken by Tenant against the condemning authority); (ii) if this Lease does not terminate due to such taking or condemnation, Tenant shall be entitled to the award to the extent required for restoration of the Premises, and Landlord shall be entitled to the balance of the award not applied to restoration. If this Lease does not terminate due to a taking or condemnation, Tenant shall, with due diligence, restore the remaining portion or portions of the Premises in the manner hereinabove provided. In such event, the proceeds of the award to be applied to restoration shall be deposited with a bank or financial institution agreeable to Landlord and Tenant as if such award were insurance proceeds, and the amount so deposited will thereafter be treated in the same manner as insurance proceeds are to be treated under Section 7.2 of this Lease until the restoration has been completed and Tenant has been reimbursed for all the costs and expenses thereof. If the award is insufficient to pay for the restoration, Tenant shall be responsible for the remaining cost and expense of such restoration.

 

  

19

  

 

11.4 Disputes. If Landlord and Tenant cannot agree in respect of any matters to be determined under this Article, a determination shall be requested of the court having jurisdiction over the taking or condemnation; provided, however, that if said court will not accept such matters for determination, either party may have the matters determined by a court otherwise having jurisdiction over the parties.

ARTICLE XII.

LANDLORD’S RIGHT TO INSPECT

Landlord and its agents, mortgagees, proposed mortgagees, purchasers and their employees or representatives shall have the right to enter upon the Premises or any portion thereof during Tenant’s normal business hours on prior notice (other than in the event of an emergency).  Only Tenant’s representative shall be welcome to participate in any such inspections, after twenty four (24) hours prior notice to Tenant, to inspect the operation, sanitation, safety, maintenance and use of the same, or any portions of the same and to assure itself that Tenant is in full compliance with its obligations under this Lease (but Landlord shall not thereby assume any responsibility for the performance of any of Tenant’s obligations hereunder, nor any liability arising from the improper performance thereof). In making any such inspections, Landlord shall not unduly interrupt or interfere with the conduct of Tenant’s business.

 

	
ARTICLE XIII.

	
ASSIGNMENT AND SUBLETTING BY TENANT

Tenant may not assign its interest in this Lease or sublet the whole or any part of the Premises without the prior consent of Landlord, which consent will not be unreasonably withheld, delayed or conditioned.  Tenant shall remain primarily liable and responsible under this Lease in the event of any such assignment or sublease and shall not be released from its obligations hereunder nor shall the guaranty of the Lease by Air Industries Group be terminated or released. Any assignment of this Lease or subletting of the Premises without notification to and consent by Landlord shall not be effective as to Landlord and Landlord shall not be bound thereby.

Tenant agrees that it shall not be unreasonable for Landlord to withhold its consent to a proposed sublease or assignment if:

(a) The proposed assignee (“Proposed Assignee”) refuses to provide Landlord with financial statements covering a period of at least 12 months ending no earlier than six months and no later than three months prior to the effective date of the proposed assignment;

(b) The Proposed Assignee shall not agree in writing to assume all of the obligations of Tenant under this Lease from and after the date of assignment;

(c) Tenant or Proposed Assignee shall fail to pay to Landlord a processing fee of One Thousand Five Hundred ($1,500.00) Dollars (increased by 2% each year commencing 1/1/17) in connection with the proposed sublet or assignment of this lease;

 

  

20

  

 

(d) Tenant shall fail to furnish Landlord with a true and correct copy of the sublease or assignment and assumption not less than thirty (30) days prior to execution for Landlord’s review and approval and a fully executed counterpart of the sublease or assignment and assumption of this Lease, as applicable, within ten (10) days after the date of the execution of same;

(e) The Proposed Assignee is not solvent or is generally held in disrepute;

(f) Without consent of Landlord, Tenant may assign this Lease to a corporation or other entity which is a direct or indirect subsidiary of Guarantor.

(g) Without consent of Landlord Tenant may assign this Lease or the holders of the equity interests of Tenant may sell or assign such interests to a third party which acquires all or substantially all of the business then being conducted by Tenant at the Premises.

(h) Without consent of Landlord, Tenant may sell or transfer a minority of its equity interests or otherwise assign or sublease to an affiliate or subsidiary of Tenant or its parent company; up to forty-nine percent (49%) of the Premises, or transfer equity interests in connection with going public.

(i) Under no circumstances shall Tenant or Guarantor be released from any liability under this Lease or Guaranty.

ARTICLE XIV.

LANDLORD’S INTEREST NOT SUBJECT TO LIENS

 

14.1 Liens, Generally. Tenant shall not create or cause to be imposed, claimed or filed upon the Premises, or any portion thereof, or upon the interest of Landlord therein, any lien, charge or encumbrance whatsoever. If, because of any act or omission of Tenant, any such lien, charge or encumbrance shall be imposed, claimed or filed, Tenant shall, at its sole cost and expense, cause the same to be fully paid and satisfied or otherwise discharged of record (by bonding or otherwise) within thirty (30) days after the date such lien is recorded and Tenant has notice of same and Tenant shall indemnify , defend and save and hold Landlord harmless from and against any and all reasonable costs, liabilities, suits, penalties, claims and demands whatsoever, and from and against any and all reasonable attorneys’ fees, at both trial and all appellate levels, resulting or on account thereof and therefrom. In the event that Tenant shall fail to comply with the foregoing provisions of this Section, Landlord shall have the option of paying, satisfying or otherwise discharging (by bonding or otherwise) such lien, charge or encumbrance and Tenant agrees to reimburse Landlord, as Additional Rent, for all sums so paid and for all costs and expenses incurred by Landlord in connection therewith, together with interest thereon as provided in this Lease, until paid.

 

  

21

  

 

14.2 Mechanics Liens. Landlord’s interest in the Premises shall not be subjected to liens of any nature by reason of Tenant’s construction, alteration, renovation, repair, restoration, replacement or reconstruction of any improvements on or in the Premises, or by reason of any other act or omission of Tenant (or of any person claiming by, through or under Tenant) including, but not limited to, mechanics’ and materialmen’s liens. All persons dealing with Tenant are hereby placed on notice that such persons shall not look to Landlord or to Landlord’s credit or assets (including Landlord’s interest in the Premises) for payment or satisfaction of any obligations incurred in connection with the construction, alteration, renovation, repair, restoration, replacement or reconstruction thereof by or on behalf of Tenant. Tenant has no power, right or authority to subject Landlord’s interest in the Premises to any mechanic’s or materialmen’s lien or claim of lien. If a lien, a claim of lien or an order for the payment of money shall be imposed against the Premises on account of work performed, for or on behalf of Tenant, Tenant shall, within thirty (30) days after written notice of the imposition of such lien, claim or order, cause the Premises to be released therefrom by the payment of the obligation secured thereby or by furnishing a bond or by any other method prescribed or permitted by law. If a lien is released, Tenant shall thereupon establish the release as a matter of record by recording or filing it in the appropriate office of land records of the County in which the Premises is located, and shall furnish Landlord with a copy of same.

 

14.3 Contest of Liens. Tenant may, at its option, contest the validity of any lien or claim of lien if Tenant shall have first posted an appropriate and sufficient bond in favor of the claimant or paid the appropriate sum into court, if permitted by law, and thereby obtained the release of the Premises from such lien. If judgment is obtained by the claimant under any lien, Tenant shall pay the same immediately after such judgment shall have become final and the time for appeal therefrom has expired without appeal having been taken. Tenant shall, at its own expense, defend the interests of Tenant and Landlord in any and all such suits; provided, however, that Landlord may, at its election, engage its own counsel and assert its own defenses, in which event Tenant shall cooperate with Landlord and make available to Landlord all information and data which Landlord deems necessary or desirable for such defense.

 

14.4 Notices of Commencement of Construction. If required by the laws of the State in which the Premises is located, prior to commencement by Tenant of any work on the Premises Tenant shall record or file a notice of the commencement of such work (the “Notice of Commencement”) in the land records of the County in which the Premises are located, identifying Tenant as the party for whom such work is being performed, stating such other matters as may be required by law and requiring the service of copies of all notices, liens or claims of lien upon Landlord. Any such Notice of Commencement shall clearly reflect that the interest of Tenant in the Premises is that of a leasehold estate and shall also clearly reflect that the interest of Landlord as the fee simple owner of the Premises shall not be subject to mechanics or materialmen’s liens on account of the work which is the subject of such Notice of Commencement. A copy of any such Notice of Commencement shall be furnished to and approved by Landlord and its attorneys prior to the recording or filing thereof, as aforesaid.

 

  

22

  

 

ARTICLE XV.

SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE

 

15.1 Subordination. Provided Tenant receives a recordable SNDA from any mortgagee or ground lessor, this Lease, Tenant’s interest hereunder and Tenant’s leasehold interest in and to the Premises are hereby agreed by Tenant to be and are hereby made junior, inferior, subordinate and subject in right, title, interest, lien, encumbrance, priority and all other respects to any mortgage or mortgages now or hereafter in force and effect upon or encumbering Landlord’s interest in the Premises, or any portion thereof, and to all collateral assignments by Landlord to any third party or parties of any of Landlord’s rights under this Lease or the rents, issues and profits thereof or therefrom as security for any liability or indebtedness, direct, indirect or contingent, of Landlord to such third party or parties, and to all future modifications, extensions, renewals, consolidations and replacements of, and all amendments and supplements to any such mortgage, mortgages or assignments, and upon recording of any such mortgage, mortgages or assignments, the same shall be deemed to be prior in dignity, lien and encumbrance to this Lease, Tenant’s interest hereunder and Tenant’s leasehold interest in and to the Premises irrespective of the dates of execution, delivery or recordation of any such mortgage, mortgages or assignments; provided, however,  Tenant’s possession and right of use under this Lease in and to the Premises shall not be disturbed by such mortgagee or ground lessor unless and until Tenant shall breach any of the provisions hereof after notice and expiration of the applicable cure period, if any. The foregoing subordination provisions of this Section shall be automatic and self-operative without the necessity of the execution of any further instrument or agreement of subordination on the part of Tenant. However, if Landlord or the holder or proposed holder of any such mortgage, mortgages or assignments shall request that Tenant execute and deliver any further instrument or agreement of subordination of this Lease, Tenant’s interest hereunder or Tenant’s leasehold interest in the Premises to any such mortgage, mortgages or assignments in confirmation or furtherance of or in addition to the foregoing subordination provisions of this Section, Tenant shall execute and deliver the same to the requesting party within thirty (30) days following Tenant’s receipt of such a written request.  Tenant’s failure to execute a subordination pursuant to this Section or an Estoppel Certificate pursuant to Section 20.2 shall be an Event of Default for which no notice, grace or cure period shall be provided, provided Tenant is notified of the potential for a default when the request is made.  For the avoidance of doubt, this Lease and Tenant’s interest hereunder are also hereby agreed by Tenant to be and are hereby made junior, inferior, subordinate and subject in right, title, interest, lien, encumbrance, priority and all other respects to any environmental land use restriction or activity and use restriction to be placed on the Premises (or any portion thereof) in connection with or pursuant to Environmental Requirements, including the Transfer Act.

 

  

23

  

 

15.2 Attornment. Tenant shall and hereby agrees to attorn, and be bound under all of the terms, provisions, covenants and conditions of this Lease, to any successor of the interest of Landlord under this Lease for the balance of the Term of this Lease remaining at the time of the succession of such interest to such successor. In particular, in the event that any proceedings are brought for the foreclosure of any mortgage or security interest encumbering or collateral assignment of Landlord’s interest in the Premises, or any portion thereof, Tenant shall attorn to the purchaser at any such foreclosure sale and recognize such purchaser as Landlord under this Lease, subject, however, to all of the terms and conditions of this Lease. Tenant agrees that neither the purchaser at any such foreclosure sale nor the foreclosing mortgagee or holder of such security interest or collateral assignment shall have any liability for any act or omission of Landlord, be subject to any offsets or defenses which Tenant may have as claim against Landlord, or be bound by any advance rents which may have been paid by Tenant to Landlord for more than the current period in which such rents come due; provided, however, if the foreclosing mortgagee had notice of any default and an opportunity to cure said default, then the foreclosing mortgagee will be subject to offsets and defenses for said default of which it had notice from Tenant.

 

ARTICLE XVI.

END OF TERM

 

16.1 Surrender of Premises. Tenant shall, on or before the last day of the Term of this Lease or upon the sooner termination thereof, peaceably and quietly surrender and deliver to Landlord the Premises (including, without limitation, all Improvements and all additions thereto and replacements thereof made from time to time over the Term of this Lease), in order, condition and repair, reasonable wear and tear and casualty excepted, and free and clear of all liens and encumbrances other than those which exist on the Rental Commencement Date or are otherwise specifically approved and acknowledged by Landlord in writing.

16.2 Holding Over. If Tenant or any other person or party shall remain in possession of the Premises or any part thereof following the expiration of the Term or earlier termination of this Lease without an agreement in writing between Landlord and Tenant with respect thereto, the person or party remaining in possession shall be deemed to be a tenant at sufferance, and during any such holdover, the Base Rent payable under this Lease by such tenant at sufferance shall be one hundred and fifty percent (150%) of the rate or rates in effect immediately prior to the expiration of the Term or earlier termination of this Lease, plus Additional Rent. In no event, however, shall such holding over be deemed or construed to be or constitute a renewal or extension of this Lease. The parties agree that: (i) it would be impractical and extremely difficult to fix the actual damage Landlord will suffer in the event of Tenant’s holdover without Landlord’s consent; and (ii) the foregoing increases in Rent due during any holdover period represent a fair and reasonable estimate of the detriment that Landlord will suffer by reason of Tenant’s holdover without consent.  Any holding over without Landlord's consent shall entitle Landlord to re-enter the Premises as provided in this Lease and Tenant shall pay to Landlord all reasonable documented damages sustained by Landlord as a result of retention of possession by Tenant, including, without limitation, the loss of any proposed subsequent tenant for any portion of the Premises.

 

  

24

  

 

ARTICLE XVII.

LIABILITY OF LANDLORD; INDEMNIFICATION

 

17.1 Liability of Landlord. Landlord shall not be liable to Tenant, its employees, agents, business invitees, licensees, customers, clients, or guests for any damage, injury, loss, compensation or claim, including, but not limited to, claims for the interruption of or loss to Tenant’s business, based on, arising out of or resulting from any cause whatsoever, including, but not limited to: (i) repairs to any portion of the Premises; (ii) interruption in Tenant’s use of the Premises; (iii) any accident or damage resulting from the use or operation (by Tenant or any other person or persons) of any equipment within the Premises, including without limitation, heating, cooling, electrical or plumbing equipment or apparatus; (iv) the termination of this Lease by reason of the condemnation or destruction of the Premises in accordance with the provisions of this Lease; (v) any fire, robbery, theft, mysterious disappearance or other casualty; (vi) the actions of any other person or persons; and (vii) any leakage or seepage in or from any part or portion of the Premises, whether from water, rain or other precipitation that may leak into, or flow from, any part of the Premises, or from drains, pipes or plumbing fixtures in the Improvements. Any storage or placement by the Tenant or its employees of goods, property or personal effects in or about the Premises shall be at the sole risk of the Tenant.

 

17.2 Indemnification of Landlord. Tenant shall defend, indemnify and save and hold Landlord harmless from and against any and all liabilities, obligations, losses, damages, injunctions, suits, actions, fines, penalties, claims, demands, costs and expenses of every kind or nature, including reasonable attorneys’ fees and court costs, incurred by Landlord, arising directly or indirectly from or out of: (i) any failure by Tenant to perform any of the terms, provisions, covenants or conditions of this Lease on Tenant’s part to be performed; (ii) any accident, injury or damage which shall happen at, in or upon the Premises, however occurring; (iii) any matter or thing growing out of the condition, occupation, maintenance, alteration, repair, use or operation by any person of the Premises, or any part thereof, or the operation of the business contemplated by this Lease to be conducted thereon, thereat, therein, or therefrom; (iv) any failure of Tenant to comply with any laws, ordinances, requirements, orders, directions, rules or regulations of any governmental authority; (v) any contamination of the Premises, including the surface or groundwater thereof; (vi) any Release of Hazardous Materials sewage or waste materials on, from or through the Premises; or (vii) any other act or omission of Tenant, its employees, agents, invitees, customers, licensees or contractors, provided Tenant shall not be responsible for any indirect or consequential damages or loss of profits arising out of any of the foregoing.

17.3 Survival of Indemnities. Tenant’s indemnity obligations under this Article and elsewhere in this Lease arising prior to the expiration or earlier termination of this Lease shall survive any such expiration or termination.

 

  

25

  

 

17.4 Notice of Claim or Suit. Tenant shall promptly notify Landlord of any claim, action, proceeding or suit involving the Premises which is instituted or threatened against Tenant or Landlord of which Tenant receives notice or of which Tenant acquires knowledge. In the event Landlord is made a party to any action for damages or other relief against which Tenant has indemnified Landlord, as aforesaid, Tenant shall defend Landlord, pay all costs and shall provide effective counsel to Landlord in such litigation or, at Landlord’s option, shall pay all reasonable attorneys’ fees and costs incurred by Landlord in connection with its own defense or settlement of said litigation.

 

17.5 Limitation on Liability of Landlord. In the event Tenant is awarded a money judgment against Landlord, Tenant’s sole recourse for satisfaction of such judgment shall be limited to execution against the Premises. In no event shall any officer, director, employee or shareholder of Landlord be personally liable for the obligations of Landlord hereunder.

ARTICLE XIII.

DEFAULT

18.1 Events of Default. Each of the following events shall be an event of default hereunder by Tenant and shall constitute a breach of this Lease (individually an “Event of Default”):

 

(a) If Tenant shall fail to pay, when due, any Rent, or portion thereof, or any other sum due to Landlord from Tenant hereunder, and such failure shall continue for a period of ten (10) days after the due date thereof.

(b) If Tenant shall violate or fail to comply with or perform any other term, provision, covenant, agreement or condition to be performed or observed by Tenant under this Lease, and such violation or failure shall continue for a period of thirty (30) days after written notice thereof from Landlord. However, if said violation cannot be cured within thirty (30) days and should Tenant commence to cure said violation or commence the performance of said provision, covenant, agreement or condition within said thirty (30) days and thereafter diligently pursue said cure, then such failure shall not be an Event of Default hereunder so long as Tenant is diligently pursuing said cure, and so long as said failure is cured in any event within ninety (90) days after the written notice from Landlord.

(c) If, at any time during the Term of this Lease, there shall be filed against Tenant in any court, pursuant to any statute of either the United States or of any State, a petition in bankruptcy or insolvency, or for reorganization or arrangement, or for the appointment of a receiver or trustee of all or any portion of Tenant’s property, including, without limitation, its leasehold interest in the Premises, or if Tenant shall make an assignment for the benefit of its creditors or petitions for or enters into an arrangement with its creditors.

 

  

26

  

 

(d) If, at any time during the Term of this Lease, there shall be filed against Tenant in any courts pursuant to any statute of the United States or of any State, a petition in bankruptcy or insolvency, or for reorganization, or for the appointment of a receiver or trustee of all or a portion of Tenant’s property, including, without limitation, its leasehold interest in the Premises, and any such proceeding against Tenant shall not be dismissed within sixty (60) days following the commencement thereof.

(e) If Tenant’s leasehold interest in the Premises or property therein shall be seized under any levy, execution, attachment or other process of court where the same shall not be vacated or stayed on appeal or otherwise within sixty (60) days thereafter, or if Tenant’s leasehold interest in the Premises is sold by judicial sale and such sale is not vacated, set aside or stayed on appeal or otherwise within sixty (60) days thereafter.

 

18.2 Remedies on Default. If any of the Events of Default hereinabove specified shall occur, Landlord, at any time thereafter, shall have and may exercise any of the following rights and remedies:

 

(a) Landlord may, on no less than thirty (30) days prior written notice thereof to Tenant, terminate this Lease and, peaceably or pursuant to appropriate legal proceedings, re-enter, retake and resume possession of the Premises for Landlord’s own account and, for Tenant’s breach of and default under this Lease, recover from Tenant any and all rents and other sums and damages due or in existence at the time of such termination, including, without limitation, (i) all unaccelerated Rent and other sums, charges, payments, costs and expenses agreed and/or required to be paid by Tenant to Landlord hereunder, (ii) all reasonable documented costs and expenses of Landlord in connection with the recovery of possession of the Premises, including reasonable attorneys’ fees and court costs, and (iii) all reasonable documented costs and expenses of Landlord in connection with any reletting or attempted reletting of the Premises or any part or parts thereof, including, without limitation, brokerage fees, attorneys’ fees and the cost of any alterations or repairs which may be reasonably required to so relet the Premises, or any part or parts thereof.

 

(b) Landlord may, pursuant to any prior notice required by law, and without terminating this Lease, peaceably or pursuant to appropriate legal proceedings, re-enter, retake and resume possession of the Premises for the account of Tenant, make such alterations of and repairs to the Premises as may be reasonably necessary in order to relet the same or any part or parts thereof and relet or attempt to relet the Premises or any part or parts thereof for such term or terms (which may be for a term or terms extending beyond the Term of this Lease), at such rents and upon such other terms and provisions as Landlord, in its sole, but reasonable, discretion, may deem advisable. Landlord shall use reasonable efforts to mitigate its damages.  If Landlord relets or attempts to relet the Premises, Landlord shall at its sole discretion determine the terms and provisions of any new lease or sublease and whether or not a particular proposed new tenant or sublessee is acceptable to Landlord. Upon any such reletting, all rents received by the Landlord from such reletting shall be applied, (i) first, to the payment of all costs and expenses of recovering possession of the Premises, (ii) second, to the payment of any costs and expenses of such reletting, including brokerage fees, 

 

  

27

  

 

attorneys’ fees and the cost of any alterations and repairs reasonably required for such reletting; (iii) third, to the payment of any indebtedness, other than Rent, due hereunder from Tenant to the Landlord, (iv) fourth, to the payment of all Rent and other sums due and unpaid hereunder, and (v) fifth, the residue, if any, shall be held by the Landlord and applied in payment of future Rents as the same may become due and payable hereunder. If the rents received from such reletting during any period shall be less than that required to be paid during that period by the Tenant hereunder, Tenant shall promptly pay any such deficiency to the Landlord and failing the prompt payment thereof by Tenant to Landlord, Landlord shall immediately be entitled to institute legal proceedings for the recovery and collection of the same. Such deficiency shall be calculated and paid at the time each payment of rent shall otherwise become due under this Lease, or, at the option of Landlord, at the end of the Term of this Lease. Landlord shall, in addition, be immediately entitled to sue for and otherwise recover from Tenant any other damages occasioned by or resulting from any abandonment of the Premises or other breach of or default under this Lease other than a default in the payment of rent. No such re-entry, retaking or resumption of possession of the Premises by the Landlord for the account of Tenant shall be construed as an election on the part of Landlord to terminate this Lease unless a written notice of such intention shall be given to the Tenant or unless the termination of this Lease be decreed by a court of competent jurisdiction. Notwithstanding any such re-entry and reletting or attempted reletting of the Premises or any part or parts thereof for the account of Tenant without termination, Landlord may at any time thereafter, upon written notice to Tenant, elect to terminate this Lease or pursue any other remedy available to Landlord for Tenant’s previous breach of or default under this Lease.

 

(c) Landlord may, without re-entering, retaking or resuming possession of the Premises, sue for all Rent and all other sums, charges, payments, costs and expenses due from Tenant to Landlord hereunder either: (i) as they become due under this Lease, taking into account that Tenant’s right and option to pay the Rent hereunder on a monthly basis in any particular Lease Year is conditioned upon the absence of a default on Tenant’s part in the performance of its obligations under this Lease, or (ii) at Landlord’s option, accelerate the maturity and due date of the whole or any part of the Rent for the entire then-remaining unexpired balance of the Term of this Lease (the “Accelerated Rent Amount”), as well as all other sums, charges, payments, costs and expenses required to be paid by Tenant to Landlord hereunder, including, without limitation, damages for breach or default of Tenant’s obligations hereunder in existence at the time of such acceleration, such that all sums due and payable under this Lease shall, following such acceleration, be treated as being and, in fact, be due and payable in advance as of the date of such acceleration. Landlord may then proceed to recover and collect the Present Value, as defined herein, of the Accelerated Rent Amount, and interest on said amount and other sums so sued for from Tenant by distress, levy, execution or otherwise. As used herein, “Present Value” shall mean Accelerated Rent Amount discounted at a discount rate equal to the yield on the ten (10) year U.S. Treasury Note.

 

  

28

  

 

(d) In addition to the remedies hereinabove specified and enumerated, Landlord shall have and may exercise the right to invoke any other remedies allowed at law or in equity as if the remedies of re-entry, unlawful detainer proceedings and other remedies were not herein provided. Accordingly, the mention in this Lease of any particular remedy shall not preclude Landlord from having or exercising any other remedy at law or in equity. Nothing herein contained shall be construed as precluding the Landlord from having or exercising such lawful remedies as may be and become necessary in order to preserve the Landlord’s right or the interest of the Landlord in the Premises and in this Lease, even before the expiration of any notice periods provided for in this Lease, if under the particular circumstances then existing the allowance of such notice periods will prejudice or will endanger the rights and estate of the Landlord in this Lease and in the Premises.

 

18.3 Landlord May Cure Tenant Defaults. If Tenant shall default in the performance of any term, provisions, covenant or condition on its part to be performed hereunder, Landlord may, on no less than ten (10) days written notice (other than in the event of an emergency) after notice to Tenant and expiration of the applicable cure period (or without notice or shorter notice, as reasonable under the circumstances if, in Landlord’s reasonable opinion, an emergency exists, but in any event with prior oral notice vie telephone) perform the same for the account and at the expense of Tenant. If, at any time and by reason of such default, Landlord is compelled to pay, or elects to pay, any sum of money or do any act which will require the payment of any sum of money, or is compelled to incur any expense in the enforcement of its rights hereunder or otherwise, such sum or sums, together with interest thereon at the highest rate allowed under the laws of the State where the Premises is located, shall be deemed past due rent subject to Section 3.4 hereof and shall be repaid to Landlord by Tenant promptly when billed therefor, and Landlord shall have all the same rights and remedies in respect thereof as Landlord has in respect of the rents herein reserved.

18.4 Rights Cumulative. The rights and remedies provided and available to Landlord in this Lease are distinct, separate and cumulative remedies, and no one of them, whether or not exercised by Landlord, shall be deemed to be in exclusion of any other.

ARTICLE XIX.

NOTICES

Any notice required or permitted to be given under this Lease shall be deemed given if delivered personally to an officer of the party to be notified or sent by (i) United States registered or certified mail, postage prepaid, return receipt requested or (ii) overnight courier service, and addressed as follows:

 

  

29

  

 

	  	  	  
	
If to Landlord:

	  	
GREEN DESK LLC

28470 Thirteen Mile Road, Suite 220

Farmington Hills, MI 48334

Attn:  Jason Miller

Phone: (248) 538-6370

Fax:  (248) 855-0915

	  	  
	
With copy to:

	  	
Honigman Miller Schwartz and Cohn LLP

2290 First National Building

600 Woodward Avenue

Detroit, MI 48226

	  	  	
Attn:  Howard N. Luckoff

	  	  	
Phone: (248)566-8466

	  	  	
Fax:  (248) 566-8467

	  	  
	
If to Tenant:

	  	
Air Realty Group LLC

	  	  	
360 Motor Parkway, Suite 100

Happuage, New York 11788

	  	  	
Attn:  Daniel Godin

	  	  	
Phone: (631) 881-4920

Fax:  (631) 206-9162

	  	  
	
With copy to:

	  	
Eaton and Winkle LLP

3 Park Avenue, 16th Floor

New York, N 10016

Attn:  Vincent J. McGill, Esq.

Phone:  (212) 561-3604

Fax: (212) 779-9928

or such other address as may be designated by either party by written notice to the other in accordance with the provisions of this Article. All notices, consents, requests, demands, designations or other communications which may or are required to be given by either party to the other under this Lease shall be in writing and shall be deemed to have been duly given and received when (a) personally delivered; or (b) three days after being deposited in the United States mail, certified or registered, postage prepaid; or (c) one business day after being deposited with a nationally recognized overnight courier service; or (d) sent by facsimile transmission or electronic mail to be immediately followed by delivery in accordance with the foregoing (a), (b) or (c), and in all instances addressed as required under this Section. Notwithstanding the foregoing, any notice mailed to the last designated address of any person or party to which a notice may be or is required to be delivered pursuant to this Lease shall not be deemed ineffective if actual delivery cannot be made due to a change of address of the person or party to which the notice is directed or the failure or refusal of such person or party to accept delivery of the notice.

 

  

30

  

 

ARTICLE XX.

MISCELLANEOUS

 

20.1 “Net” Lease. It is understood that this is an absolute net lease.  The Base Rent and all other sums payable by Tenant pursuant to this Lease shall be absolutely net to Landlord.  All costs, operating expenses, and obligations imposed upon the Premises or incurred in connection with its use, occupancy, care, maintenance, operation and control (including, but not limited to, all costs of replacements, maintenance and repairs (capital and ordinary, structural and non-structural, foreseen and unforeseen, ordinary and extraordinary) of the structure, roof, parking lot, utilities, taxes, insurance and all other payments required in connection with the Premises during the Term of this Lease) shall be paid by Tenant in addition to all items of Base Rent payable by Tenant under this Lease without notice or demand and without setoff, counterclaim, abatement, deduction, etc.  Additionally, Tenant shall be responsible for compliance with any and all legal requirements and shall pay any and all current and future costs relative thereto.

 

20.2 Estoppel Certificates. Tenant shall from time to time, within twenty (20) days after request by Landlord and without charge, give a Tenant Estoppel Certificate in the form attached hereto as Exhibit C and containing such other matters as may be reasonably requested by Landlord to any person, firm or corporation specified by Landlord.  Landlord shall provide a commercially reasonable estoppel certificate to Tenant’s lender in connection with a proposed financing or a proposed assignee permitted pursuant to the provisions of this Lease.

 

20.3 Brokerage. Landlord and Tenant hereby represent and warrant to each other that they have not engaged, employed or utilized the services of any business or real estate brokers, salesmen, agents or finders in the initiation, negotiation or consummation of the business and real estate transaction reflected in this Lease. On the basis of such representation and warranty, each party shall and hereby agrees to indemnify and save and hold the other party harmless from and against the payment of any commissions or fees to or claims for commissions or fees by any real estate or business broker, salesman, agent or finder resulting from or arising out of any actions taken or agreements made by them with respect to the business and real estate transaction reflected in this Lease.

 

20.4 No Partnership or Joint Venture. Landlord shall not, by virtue of this Lease, in any way or for any purpose, be deemed to be a partner of Tenant in the conduct of Tenant’s business upon, within or from the Premises or otherwise, or a joint venturer or a member of a joint enterprise with Tenant.

 

20.5 Entire Agreement. This Lease contains the entire agreement between the parties and, except as otherwise provided herein, can only be changed, modified, amended or terminated by an instrument in writing executed by the parties. It is mutually acknowledged and agreed by Landlord and Tenant that there are no verbal agreements, representations, warranties or other understandings affecting the same; and that Tenant hereby waives, as a material part of the consideration hereof, all claims against Landlord for rescission, damages or any other form of relief by reason of any alleged covenant, warranty, representation, agreement or understanding not contained in this Lease. This Lease shall not be changed, amended or modified except by a written instrument executed by Landlord and Tenant.

 

  

31

  

 

20.6 Waiver. No release, discharge or waiver of any provision hereof shall be enforceable against or binding upon Landlord or Tenant unless in writing and executed by Landlord or Tenant, as the case may be. Neither the failure of Landlord or Tenant to insist upon a strict performance of any of the terms, provisions, covenants, agreements and conditions hereof, nor the acceptance of any Rent by Landlord with knowledge of a breach of this Lease by Tenant in the performance of its obligations hereunder, shall be deemed a waiver of any rights or remedies that Landlord or Tenant may have or a waiver of any subsequent breach or default in any of such terms, provisions, covenants, agreements and conditions.

 

20.7 Time. Time is of the essence in every particular of this Lease, including, without limitation, obligations for the payment of money.

 

20.8 Costs and Attorneys’ Fees. If either party shall bring an action to recover any sum due hereunder, or for any breach hereunder, and shall obtain a judgment or decree in its favor, the court may award to such prevailing party its reasonable costs and reasonable attorneys’ fees, specifically including reasonable attorneys’ fees incurred in connection with any appeals (whether or not taxable as such by law). Landlord shall also be entitled to recover its reasonable attorneys’ fees and costs incurred in any bankruptcy action filed by or against Tenant, including, without limitation, those incurred in seeking relief from the automatic stay, in dealing with the assumption or rejection of this Lease, in any adversary proceeding, and in the preparation and filing of any proof of claim. Tenant shall also be entitled to recover its reasonable attorneys’ fees and costs incurred in any bankruptcy action filed by or against Landlord, including, without limitation, those incurred in seeking relief from the automatic stay, in dealing with the assumption or rejection of this Lease, in any adversary proceeding, and in the preparation and filing of any proof of claim.

20.9 Captions and Headings. The captions and headings in this Lease have been inserted herein only as a matter of convenience and for reference and in no way define, limit or describe the scope or intent of, or otherwise affect, the provisions of this Lease.

 

20.10 Severability. If any provision of this Lease shall be deemed to be invalid, it shall be considered deleted therefrom and shall not invalidate the remaining provisions of this Lease.

 

20.11 Successors and Assigns. The agreements, terms, provisions, covenants and conditions contained in this Lease shall be binding upon and inure to the benefit of Landlord and Tenant and, to the extent permitted herein, their respective successors and assigns.

 

  

32

  

 

20.12 Applicable Law. This Lease shall be governed by, and construed in accordance with, the laws of the State in which the Premises are located.

20.13 Waiver of Jury Trial. TENANT AND LANDLORD HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER OF THEM OR THEIR HEIRS, PERSONAL REPRESENTATIVES, SUCCESSORS OR ASSIGNS MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LITIGATION ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS LEASE OR ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. IN THE EVENT LANDLORD COMMENCES ANY PROCEEDINGS FOR NONPAYMENT OF RENT, TENANT SHALL NOT INTERPOSE ANY COUNTERCLAIM OF WHATEVER NATURE OR DESCRIPTION IN ANY SUCH PROCEEDING, UNLESS THE FAILURE TO RAISE THE SAME WOULD CONSTITUTE A WAIVER THEREOF. THIS SHALL NOT, HOWEVER, BE CONSTRUED AS A WAIVER OF TENANT’S RIGHT TO ASSERT SUCH CLAIMS IN ANY SEPARATE ACTION BROUGHT BY TENANT. THIS PROVISION IS A MATERIAL INDUCEMENT TO LANDLORD’S ACCEPTING THIS LEASE.

 

20.14 Counterparts. This Lease may be executed in counterparts by the parties hereto and each shall be considered an original, but all such counterparts shall be construed together and constitute one Lease between the parties hereto.

20.15 Mortgagee Protection. Tenant shall give any mortgagees of the Premises by registered or certified mail, return receipt requested, or nationally recognized overnight delivery service, a copy of any notice of default sent to Landlord by Tenant, provided that prior to such notice Tenant has been notified, in writing (by way of Notice of Assignment of Rents and Leases, or otherwise), of the addresses of such mortgagees which has been provided in writing to Tenant.  If Landlord shall have failed to cure such default within the time provided for in this Lease, then the mortgagees shall have an additional thirty (30) days within which to cure such default or, if such default cannot be cured within that time, then such additional time as may be necessary if, within such thirty (30) days, any mortgagee has commenced and is diligently pursuing the remedies necessary to cure such default (including, but not limited to, commencement of foreclosure proceedings, if necessary to effect such cure), in which event this Lease shall not be terminated by Tenant while such remedies are being so diligently pursued.

 

20.16 Guaranty. (a) On or before the Commencement Date, Tenant shall deposit with Landlord, as security for the payment of the Rent due hereunder and the full and faithful performance by Tenant of the covenants and conditions on the part of Tenant to be performed under this Lease, a cash security deposit (“Security Deposit”). The initial amount of the Security Deposit shall be the sum of One Hundred Fifty-Five Thousand Seven Hundred Ten and no/100 ($155,710.00) Dollars. In the event of any default by Tenant under this Lease, Landlord is hereby authorized to draw upon the Security Deposit to cure the default. In such case, Tenant shall immediately provide Landlord with additional cash in the amount equal to the aggregate of twelve (12) monthly payments of the then-current Basic Rent.

 

  

33

  

 

(b)           The remainder of the Security Deposit shall be returned to Tenant after the expiration of the Term, provided that Tenant has fully and faithfully performed all such covenants and conditions of this Lease, is not in arrears in Rent and has vacated the Premises. In the event of a sale, pledge, transfer or encumbrance of the Premises subject to this Lease, Landlord shall have the right to transfer the Security Deposit to a purchaser or lender, as applicable, and Landlord shall be considered released by Tenant from all liability for the return of the Security Deposit. All costs incurred in connection with the transfer of the Security Deposit shall be paid by Tenant. It is agreed that this shall apply to every transfer or assignment made of the Security Deposit to the new landlord.

(c)           In the event of the insolvency of Tenant or in the event of the entry of a judgment in bankruptcy in any court against Tenant which is not discharged within thirty (30) days after entry, or in the event a petition is filed by or against Tenant under any chapter of the bankruptcy or insolvency laws of any state or the United States of America, then and in such event Landlord may require Tenant to deposit additional security in such amount as may be necessary to adequately assure Tenant's performance of all of its obligations under this Lease, including all payments subsequently accruing. Failure of Tenant to deposit the additional security required by this section within ten (10) days after Landlord's written demand shall constitute a default by Tenant under this Lease.

20.17 Financial Statements. If Tenant and Guarantor are not public companies and in any event, upon Landlord's written request in connection with a sale or a financing or refinancing, Tenant (and Guarantor) shall promptly furnish Landlord, from time to time, detailed financial statements reflecting Tenant's (and Guarantor’s) current financial condition along with such information requested by a mortgagee, proposed mortgagee or purchaser.

 

20.18 Direct Payment of Rent. Tenant and Landlord acknowledge and agree that Landlord may irrevocably instruct Tenant to make all rent and other payments due and to become due to Landlord under the Lease directly to Landlord’s mortgagee, which direction Tenant agrees to follow until further written notice from such mortgagee, and Landlord hereby expressly agrees that (a) Landlord shall have no right or claim against Tenant for or by reason of any payments of rent or other sums due under the Lease made to such mortgagee, and (b) any and all payments made by Tenant to such mortgagee shall constitute full and complete performance of such obligations of Tenant to Landlord under the Lease to the extent of such payments.

 

  

34

  

 

20.19 Merger.  Notwithstanding anything to the contrary contained in the Lease, if both Landlord's and Tenant's interests or estates in the Premises become vested in the same owner while the Premises is subject to a mortgage, the Lease shall nevertheless not be destroyed by the application of the doctrine of merger except upon the express written consent of the mortgagee.

20.20 Guaranty. Upon execution of this Lease by Tenant, Air Industries Group, a Nevada corporation (“Guarantor”) shall execute and deliver to Landlord the unconditional and irrevocable Guaranty in the form of Exhibit "D" attached hereto.

 

20.21 Landlord’s Waiver. Landlord agrees, as long as Tenant is not in default, to execute a commercially reasonable form of Landlord’s Waiver in favor of an independent third party which provides financing to Tenant which is secured by Tenant’s personal property in the Premises.

 

20.22 Short Form Lease.  Upon request of either Landlord or Tenant each, the other shall execute and record, in recorable form, a short form of this Lease.

 

[Remainder of page intentionally left blank]

 

  

35

  

 

[SIGNATURE PAGE TO AND A PART OF LEASE BY AND BETWEEN GREEN DESK LLC AND AIR REALTY GROUP LLC]

IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly executed on or as of the day and year first above written.

Signed, sealed and delivered in the presence of:

 

 

	
 

 

 

_____________________________________________

Name:________________________________________

 

 

_____________________________________________

Name:________________________________________

	 	

GREEN DESK LLC,

a Michigan limited liability company

 

By:____________________________________

Name:__________________________________

Its:_____________________________________

 

"LANDLORD"

 

 

 

	
 

 

 

_____________________________________________

Name:________________________________________

 

 

_____________________________________________

Name:________________________________________

	 	

AIR REALTY GROUP LLC,

a Connecticut limited liability company

 

By:____________________________________

Name:__________________________________

Its:_____________________________________

 

"TENANT"

 

 

ACKNOWLEDGMENT OF GUARANTOR

Air Industries Group, a Nevada corporation, as the guarantor under that Guaranty Agreement of even date with respect to the Lease, hereby acknowledges and agrees to the terms of the Lease.

 

 

	
 

 

	 	

AIR INDUSTRIES GROUP,

a Nevada corporation

 

By:____________________________________

Name:__________________________________

Its:_____________________________________

 

  

36

  

 

EXHIBIT A

LEGAL DESCRIPTION

Land situated in the Town of Barkhamsted, County of Litchfield, State of Connecticut legally described as follows:

Commonly known as:  236 New Hartford Road, Barkhamsted, Connecticut 06063

 

  

37

  

 

EXHIBIT B

BASE RENT FOR INITIAL TERM

AND OPTION PERIODS

 

 

 

  

38

  

 

EXHIBIT C

TENANT ESTOPPEL CERTIFICATE

THIS TENANT ESTOPPEL CERTIFICATE (“Certificate”) is given this      day of                     , 20     by Air Realty Group LLC, a Connecticut limited liability company (“Tenant”) in favor of                                 , a                     , with principal office and place of business at                                          (“Beneficiary”).

 

RECITALS:

 

A. Pursuant to the terms and conditions of that certain Lease Agreement (“Lease”) dated ____________, 2016, Green Desk LLC, a Michigan limited liability company (“Landlord”) leased to Tenant certain real property in Hartford County, Connecticut (“Premises”), which Premises are more particularly described in the Lease.

 

B. Pursuant to the terms and conditions of the Lease, the Beneficiary has requested that the Tenant execute and deliver this Certificate with respect to the Lease.

 

NOW, THEREFORE, in consideration of the above premises, the Tenant hereby makes the following statements for the benefit of the Assignee:

 

1. The copy of the Lease attached hereto and made a part hereof as Exhibit A is a true, correct and complete copy of the Lease, which Lease is in full force and effect as of the date hereof, and has not been modified or amended.

 

2. The Lease sets forth the entire agreement between the Landlord and the Tenant relating to the leasing of the Premises, and there are no other agreements, written or oral, relating to the leasing of the Premises.

 

3. There exists no uncured or outstanding defaults or events of default under the Lease, or events which, with the passage of time, and the giving of notice, or both, would be a default or event of default under the Lease.

 

4. No notice of termination has been given by Landlord or Tenant with respect to the Lease.

 

5. All payments due the Landlord under the Lease through and including the date hereof have been made, including the monthly installment of Base Rent (as defined in the Lease) for the period of                      to                      in the amount of $                    .

 

6. As of the date hereof, the annual Base Rent under the Lease is $                    .

 

7. There are no disputes between the Landlord and the Tenant with respect to any rental due under the Lease or with respect to any provision of the Lease.

 

  

39

  

 

8. Notwithstanding any provisions of the Lease to the contrary, the Tenant hereby consents to the [collateral] assignment of the Lease by the Landlord to the Beneficiary, and agrees that no terms and conditions of the Lease shall be altered, amended or changed as a result of such assignment.

 

9. The Tenant hereby agrees that from and after the date hereof [copies of] all notices which Tenant is required to deliver to the Landlord under the Lease with respect to defaults, events of default or failure to perform by the Landlord under the Lease, shall be delivered to Beneficiary at the following address:

 

__________________________

__________________________

__________________________

__________________________

10. The Tenant understands and acknowledges that Beneficiary is relying upon the representations set forth in this Certificate, and may rely thereon in connection with the [collateral] assignment of the Lease to Beneficiary.

IN TESTIMONY WHEREOF, witness the signature of the Tenant as of the day and year first set forth above.

 

	
 

 

	 	

_______________________________________

 

By:____________________________________

Name:__________________________________

Its:_____________________________________

 

  

40

  

EXHIBIT D

GUARANTY

 

The undersigned, Air Industries Group, a  Nevada corporation, whose address is  360 Motor Parkway, Suite 100, Happuage, New York, 11788, in consideration of the leasing of the leased premises described in that certain Lease (hereinafter referred to as the "Lease"), dated ____________, 2016 between GREEN DESK LLC, whose address is 28470 Thirteen Mile Road, Suite 220, Farmington Hills, MI  48334 as Landlord (hereinafter referred to as "Landlord"), and AIR REALTY GROUP LLC, whose address is  360 Motor Parkway, Suite 100, Happuage, New York, 11788, as Tenant (hereinafter referred to as "Tenant"), does hereby covenant and agree as follows:

The undersigned does hereby guarantee the full, faithful and timely payment and performance by Tenant of all of the payments, covenants and other obligations of Tenant under or pursuant to the Lease.  If Tenant shall default at any time in the payment of any rent or any other sums, costs or charges whatsoever, or in the performance of any of the other covenants and obligations of Tenant, under or pursuant to the Lease, then the undersigned, at its expense, shall on demand of Landlord fully and promptly, and well and truly, pay all rent, sums, costs and charges to be paid by Tenant, and perform all the other covenants and obligations to be performed by Tenant, under or pursuant to the Lease, and in addition shall on Landlord's demand pay to Landlord any and all sums due to Landlord, including (without limitation) all interest on past due obligations of Tenant, costs advanced by Landlord, and damages and all expenses (including attorneys' fees and litigation costs), that may arise in consequence of Tenant's default.  The undersigned hereby waives all requirements of notice of the acceptance of this Guaranty and all requirements of notice of breach or nonperformance by Tenant.

The obligations of the undersigned hereunder are independent of the obligations of Tenant.  A separate action or actions may, at Landlord's option, be brought and prosecuted against the undersigned, whether or not any action is first or subsequently brought against Tenant, or whether or not Tenant is joined in any such action, and the undersigned may be joined in any action or proceeding commenced by Landlord against Tenant arising out of, in connection with or based upon the Lease.  The undersigned waives any right to require Landlord to proceed against Tenant or pursue any other remedy in Landlord's power whatsoever, any right to complain of delay in the enforcement of  Landlord's rights under the Lease, and any demand by Landlord and/or prior action by Landlord of any nature whatsoever against Tenant, or otherwise.

This Guaranty shall remain and continue in full force and effect and shall not be discharged in whole or in part notwithstanding (whether prior or subsequent to the execution hereof) any alteration, renewal, extension, modification, amendment or assignment of, or subletting, concession, franchising, licensing or permitting under the Lease.  The undersigned hereby waives notices of any of the foregoing, and agrees that the liability of the undersigned hereunder shall be based upon the obligations of Tenant set forth in the Lease as the same may be altered, renewed, extended, modified, amended or assigned.  For the purpose of this Guaranty and the obligations and liabilities of the undersigned hereunder, "Tenant" shall be deemed to include any and all concessionaires, licensees, franchisees, department operators, assignees, subtenants, permittees or others directly or indirectly operating or conducting a business in or from the Premises, as fully as if any of the same were the named Tenant under the Lease.

 

  

41

  

 

The undersigned's obligations hereunder shall remain fully binding although Landlord may have waived one or more defaults by Tenant, extended the time of performance by Tenant, released, returned or misapplied other collateral at any time given as security for Tenant's obligations (including other guaranties) and/or released Tenant from the performance of its obligations under the Lease.

This Guaranty shall remain in full force and effect notwithstanding the institution by or against Tenant, of bankruptcy, reorganization, readjustment, receivership or insolvency proceedings of any nature, or the disaffirmance of the Lease in any such proceedings or otherwise.

If this Guaranty is signed by more than one party, their obligations shall be joint and several, and the release of one of such guarantors shall not release any other of such guarantors.

Neuter terms should also refer, where applicable, to the feminine gender and the masculine gender; the singular reference shall also include the plural of any word if the context so requires.

This Guaranty shall be applicable to and binding upon the heirs, executors, administrators, representatives, successors and assigns of Landlord, Tenant and the undersigned.  Landlord may, without notice, assign this Guaranty in whole or in part.

In the event that Landlord should institute any suit against the undersigned for violation of or to enforce any of the covenants or conditions of this Guaranty or to enforce any right of Landlord hereunder, or should the undersigned institute any suit against Landlord arising out of or in connection with this Guaranty, or should either party institute a suit against the other for a declaration of rights hereunder, or should either party intervene in any suit in which the other is a party to enforce or protect its interest or rights hereunder, the prevailing party in any such suit shall be entitled to the fees of its attorney(s) in the reasonable amount thereof, to be determined by the court and taxed as a part of the costs therein.

The execution of this Guaranty prior to execution of the Lease shall not invalidate this Guaranty or lessen the obligations of Guarantor(s) hereunder.

Upon Landlord's written request, the undersigned shall promptly furnish Landlord (in any event, within twenty (20) days of request), from time to time, with financial statements (including, without limitation, operating statements including an annual profit and loss statement for the individual store unit covered by the Lease) reflecting the undersigned’s current financial condition, and written evidence of ownership of managing and controlling interests in the undersigned and in any entities which directly or indirectly control or manage the undersigned.

 

  

42

  

 

The undersigned shall, without charge and within twenty (20) days after any request of Landlord, certify in writing to any person specified in such request, as to the existence, amendment, validity of this Guaranty, the existence of any default or counterclaim hereunder or under the Lease and any other matter reasonably requested.  Any such certificate may be relied upon by any party requesting it and by any person to whom the same may be exhibited.

This Guaranty is made pursuant to, and shall be interpreted and applied in accordance with, the laws of the State of Michigan.

IN WITNESS WHEREOF, the undersigned has executed this Guaranty this ____ day of April, 2016.

 

	
 

	

AIR INDUSTRIES GROUP,

a Nevada corporation

 

 

By: ____________________________

Name: _________________________

Its: ____________________________

 

 

	STATE OF ______________	)
	 	)  SS.
	COUNTY OF _____________	)

 

On this ___ day of _______, 201__, before me personally appeared ____________, the ___________________ of AIR INDUSTRIES GROUP, a Nevada corporation, to me known to be the person who executed the foregoing Guaranty and acknowledged before me that he is duly authorized and did execute same on behalf of said corporation.

 

	 	

_________________________________

Notary Public

_________________ County, _________

My Commission Expires:_______________

 

  

43

  

 

EXHIBIT I

ENVIRONMENTAL INDEMNITY

[TO BE NEGOTIATED WITH BUYER’S LENDER]

UNITED BANK

ENVIRONMENTAL CERTIFICATE AND INDEMNITY AGREEMENT

This Certificate and Agreement (“Agreement”) is dated and being delivered this ___ day of April, 2016 to UNITED BANK (the “Bank”) by AIR REALTY GROUP LLC, a Connecticut limited liability company (“ARG”), and AIR INDUSTRIES GROUP, a Nevada corporation (“AIG”), in connection with the closing on this date of a ____________________ AND 00/100 DOLLARS ($____________________) loan (the “Loan”) from the Bank to ________________________.

WITNESSETH:

WHEREAS, the Loan is evidenced by a Permanent Mortgage Note from the ________________ (“Borrower”) to the Bank dated _____________, 201___ in the original principal amount of $_______________ (the “Note”); and

WHEREAS, Borrower owns certain property located at ______________________, Connecticut (the “Property”); and

WHEREAS, ARG, as tenant, and Borrower, as landlord, entered into a Lease dated as of ____________, 20___, pertaining to the Property (the “Lease”); and

WHEREAS, AIG executed a Guaranty in favor of Borrower, whereby AIR guaranteed the obligations of ARG pursuant to the Lease; and

WHEREAS, as a condition of the Bank making the Loan with Borrower, Bank requires that Indemnitor, jointly, severally and unconditionally indemnify and hold Bank harmless from and against any and all environmental problems, concerns, and costs at or affecting the Property to the extent set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing and of one ($1.00) Dollar and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Indemnitor hereby represents, warrants, covenants, and agrees to the best of its actual knowledge and belief, except as evidenced in any environmental site assessments or other reports provided to Lender pertaining to the Property:

1.           Indemnitor has not undertaken nor shall they undertake, any activity causing:  (i) the Property to become a hazardous waste treatment, storage or disposal facility within the meaning of, or otherwise being the Property within the ambit of, the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Section 6901 et. seq.,  as amended (“RCRA”), or any similar federal, state or local laws or regulations, (ii) a release or threatened release of hazardous waste from the Property within the ambit of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Section 9601 et. seq., as amended (“CERCLA”) or the Toxic Substances Control Act, 15 U.S.C. Section 2601 et. seq., as amended (“TSCA”), or any similar federal, state or local laws and regulations, or (iii) the discharge of pollutants or effluents into any water source or system, or the discharge into the air of any emissions, which would require a permit under the Federal Water Pollution Control Act, 33 U.S.C. Section 1251 et. seq., as amended (“FWPCA”), or the Clean Air Act, 42 U.S.C. Section 7401, et. seq., as amended (“CAA”) respectively, or any similar federal, state or local laws or regulations.

 

  

I-1

  

 

2.           No oil, petroleum, chemical liquids, solid, liquid, gaseous products, toxic substances, or any wastes, solid waste, hazardous waste or hazardous substance of any kind, are currently stored or used on the Property in violation of Environmental Laws and have not been stored or used on the Property in the past in violation of Environmental Laws, and no part of the Property is or has been used as a dump or landfill of any kind.  As used herein, the terms “wastes”, “solid waste”, “hazardous waste”, and “hazardous substance” shall have the meanings as such terms are defined in CERCLA, RCRA and Title 22a of the Connecticut General Statutes, as amended, and any regulations now or hereafter promulgated pursuant thereto, and shall also include any sewage or mixture of sewage or other waste material that passes through a sewer system to a treatment facility, any industrial waste-water discharges subject to regulation under FWPCA, and any source material, special nuclear material or byproduct material as defined by the Atomic Energy Act of 1954, 42 U.S.C. Section 3011 et. seq., as amended.

3.           Indemnitor has not, nor to the best of their knowledge has any other party, caused or suffered to occur, and Indemnitor shall not hereafter cause or suffer to occur, a discharge, spillage, uncontrolled loss, seepage or filtration of oil or petroleum or chemical liquids or solid, liquid or gaseous products or hazardous waste (a “spill”), as those terms are used in Chapter 446k of the Connecticut General Statutes, as amended (the “Environmental Act”), at, upon under, within or emanating from the Property or any contiguous real estate which has been included in the property description of the Property within the preceding three years, and neither the Indemnitor nor any other party, is or shall be involved in operations at the Property, nor are there or shall there be any substances or conditions at, upon, under or within the Property, which could support a claim or cause of action or lead to the imposition on the Borrower or any other owner of the Property of liability or the creation of a lien on the Property, under RCRA, CERCLA, TSCA, FWPCA, CAA, the Environmental Act, or any other federal, state, or local environmental laws, regulations or ordinances (collectively, the “Environmental Law”).

4.           The Property has not been used for any purpose which would presently constitute a violation of any federal or state environmental laws or regulations, including but not limited to laws controlling hazardous waste or matter as provided in Title 42 USC, Section 9601 et seq., as amended, and CGS Section 22a-1 et seq.

 

  

I-2

  

 

5.           There are no underground storage tanks and facilities on the Property.

6.           Indemnitor has received all required federal, state, and local licenses, certificates or permits relating to the Property and Indemnitor’s facilities, businesses, property, and equipment are in compliance with such in all material respects.

7.           The Property is not an “establishment” as such term is defined in Connecticut General Statutes 22a-134 et seq. (the “Transfer Act”), as amended; no declaration to the Connecticut Department of Energy and Environmental Protection (“DEP”) is required under the Transfer Act; and the DEP has made no expenditures of any kind which could result in assertion of a lien on the Property.

8.           Indemnitor has complied and shall comply strictly and in all respects with the requirements of the Environmental Laws and shall notify the Bank promptly in the event Indemnitor gains knowledge of any spill upon the Property, and shall promptly forward to the Bank copies of all orders, notices, reports, permits, applications and other communications in connection with any such spill or any other matters relating to the Environmental Laws as they may affect the Property.  There have been no outstanding citations, notices or orders of noncompliance or violation issued to the Indemnitor or relating to their business, assets or property under the Environmental Laws with respect to the Property or any contiguous real estate which has been included in the property description of the Property within the preceding three years.

 

9.           Indemnitor shall not store or use on the Property any oil, petroleum, chemical liquids, solid, liquid, gaseous products, toxic substances, or any wastes, solid waste, hazardous waste or hazardous substance of any kind (collectively, “Hazardous Substances”), except in compliance with Environmental Laws.

10.           Upon the written request of Bank for good cause, and from time to time, Indemnitor shall, at their expense, execute such further instruments (provided that no such instruments expand the liability of Indemnitor hereunder) and deliver such further documents, including without limitation, environmental audit reports, environmental site assessment reports, and updates of such reports, from a qualified environmental engineer satisfactory to Bank, all in scope, form and content satisfactory to Bank.

11.           As further inducement to Bank to make the Loan, Indemnitor shall at all times indemnify and hold harmless Bank, and its successors and assigns forever, whether as holder of a Note, as secured party in possession, or as successor in interest to Bank as lessee of the Property, from and against all loss, liability, damage and expense, including without limitation, attorneys’ and other professional fees, suffered or incurred by Bank, and its successors and assigns, in connection with, but not limited to:  (i) the Environmental Laws, including without limitation, the assertion of any lien thereunder, and (ii) any spill affecting the Property whether or not the same originates or emanates from the Property or any such contiguous real estate, including, without limitation, any loss of value of the Property as a result of each such spill.

 

  

I-3

  

 

12.           In the event of any spill affecting the Property, whether or not the same originates or emanates from the Property or any contiguous real estate which has been included in the Property description of the Property within the preceding three years, and/or the failure to comply with any of the Environmental Laws, Indemnitor shall take, at its sole expense, such action as is necessary to remedy said spill or cure said failure of compliance, to Bank’s reasonable satisfaction.

13.           Failure to comply with any of the terms and provisions of this Certificate and Agreement after thirty (30) days written notice shall constitute an Event of Default under the Note, whereupon all outstanding principal, accrued interest and other sums due under the Loan, shall become immediately due and payable at Bank’s option.

14.           This Certificate and Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut, may not be amended except in writing, and shall be binding upon Indemnitor and its heirs, executors, administrators, successors and assigns, and shall inure to the benefit of Bank, and its successors and assigns.

15.           This Certificate and Agreement shall survive foreclosure, deed-in-lieu of foreclosure, or satisfaction of the indebtedness under the Loan.

16.           Notwithstanding any term hereof to the contrary, Indemnitor shall have no liability to indemnify Lender for loss, liability, damage or expense arising from or out of Hazardous Substances first introduced to the Property after transfer of title to the Property to Lender or Lender’s designee pursuant to foreclosure proceedings or a deed in lieu, or except at any time Borrower is not in control of the Property.

17.           Notwithstanding any term hereof to the contrary, all remediation obligations hereunder are only to the extent of requirements set forth in Environmental Laws, and are further limited by the applicability of such Environmental Laws to the use of the Property (with such use being determined as of the date of this Agreement).

18.           Notwithstanding any term in this Agreement to the contrary, the obligations of Indemnitor under this Section 18 shall terminate (other than with respect to any outstanding unfulfilled obligations or claims that have been made) when each of the following conditions have been fully satisfied (the “Sunset Date”): (1) either (a) the Loan is repaid in full, or (b) there has occurred a foreclosure, deed in lieu of foreclosure or similar transfer of title to the Property; (2) Indemnitor delivers to Lender an environmental site assessment report (the “Subsequent Report”) prepared by the same environmental consultant which prepared the environmental report delivered to the Lender in connection with closing of the Loan (the “Original Environmental Report”), or another environmental consultant, and prepared within thirty (30) days of the Sunset Date,  evidencing no contamination by Hazardous Substances and no violation of any Environmental Laws with respect to the Property that were not originally identified in the Environmental Report; (3) there is no known or suspected contamination of the Property due to any Hazardous Substances which has not been remediated so that the current condition of the Property complies with Environmental Laws; and (4) there are no outstanding claims, suits or demands existing or threatened with respect to any Hazardous Substances or under any Environmental Laws relating to the Property.

[Remainder of page intentionally left blank]

 

  

I-4

  

 

[SIGNATURE PAGE ATTACHED TO AND PART OF THE ENVIRONMENTAL CERTIFICATE AND INDEMNITY AGREEMENT BY AIR REALTY GROUP LLC AND AIR INDUSTRIES GROUP IN FAVOR OF UNITED BANK]

IN WITNESS WHEREOF, the parties have executed this Agreement Environmental Certificate and Indemnity Agreement of the date first set forth above.

 

	 	

AIR REALTY GROUP LLC,

a Connecticut limited liability company

By:____________________________

Name:__________________________

Its:____________________________

 

	STATE OF __________ 	)
	 	)  SS.
	COUNTY OF ________ 	)

 

On this ___ day of _______, 201__, before me personally appeared ____________, the ___________________ of AIR REALTY GROUP LLC, a Connecticut limited liability company, to me known to be the person who executed the foregoing Guaranty and acknowledged before me that he is duly authorized and did execute same on behalf of said corporation.

 

	 	

________________________________

Notary Public

__________________County, ________

My Commission Expires:______________

 

  

I-5

  

 

[SIGNATURE PAGE ATTACHED TO AND PART OF THE ENVIRONMENTAL CERTIFICATE AND INDEMNITY AGREEMENT BY AIR REALTY GROUP LLC AND AIR INDUSTRIES GROUP IN FAVOR OF UNITED BANK]

IN WITNESS WHEREOF, the parties have executed this Agreement Environmental Certificate and Indemnity Agreement of the date first set forth above.

 

	 	

AIR INDUSTRIES GROUP,

a Nevada corporation

By:____________________________

Name:__________________________

Its:____________________________

 

	STATE OF __________ 	)
	 	)  SS.
	COUNTY OF ________ 	)

 

On this ___ day of _______, 201__, before me personally appeared ____________, the ___________________ of AIR INDUSTRIES GROUP, a Nevada corporation, to me known to be the person who executed the foregoing Guaranty and acknowledged before me that he is duly authorized and did execute same on behalf of said corporation.

 

	 	________________________________ 

Notary Public

__________________County, ________

My Commission Expires:______________

 

  

I-6

  

 

[SIGNATURE PAGE TO REAL ESTATE PURCHASE AND SALE CONTRACT BETWEEN GREEN DESK LLC AND AIR REALTY GROUP LLC]

 

IN WITNESS WHEREOF, the parties hereto have executed this Real Estate Purchase and Sale Contract on the date first above written. 

 

	 	
Buyer:

 

GREEN DESK LLC

a michigan limited liabillity company

 

By: __________________________

Name: ________________________

Title: _________________________

Date: _________________________

 

 

SELLER:

 

AIR REALTY GROUP LLC,

a Connecticut limited liability company

 

By: __________________________

Name: ________________________

Title: _________________________

Date: _________________________

 

 

ESCROW AGENT:

 

TITLE SOURCE, INC.

 

By: __________________________

Name: ________________________

Title: _________________________

Date: _________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}]]