Document:

EXHIBIT 10.11 ENVIRONMENTAL INDEMNITY
AGREEMENT DATED NOVEMBER 2, 2000 BETWEEN GETTY PROPERTIES CORP. AND GETTY
PETROLEUM MARKETING INC.

 

ENVIRONMENTAL INDEMNITY AGREEMENT

This
ENVIRONMENTAL INDEMNITY AGREEMENT (together with all Exhibits and Schedules
attached hereto, this “Indemnity Agreement”), effective as of the Restatement
Effective Date, is made and entered into as of November 2, 2000 between Getty
Properties Corp., a Delaware corporation, whose address is 125 Jericho
Turnpike, Jericho, New York 11753 (formerly known as Getty Realty Corp.,) (as
further defined hereinafter, “Landlord”), and Getty Petroleum Marketing Inc., a
Maryland corporation whose address is 125 Jericho Turnpike, Jericho, New York
11753 (as further defined hereinafter, “Tenant”) (together referred to as the
“Parties”).

RECITALS

	
 

	
 

	
A.

	
Contemporaneously
 with this Indemnity Agreement, the Parties are executing that certain
 Consolidated, Amended and Restated Master Lease (the “Restated Master Lease”)
 and related documents, pursuant to which Landlord leased to Tenant certain
 lands and subleased or sub-subleased to Tenant certain other lands, together
 with all right, title and interest of Landlord, if any, in and to certain
 improvements and appurtenances (together, the “Premises”).

	
 

	
 

	
B.

	
Landlord
 and Tenant desire to allocate risks associated with certain liabilities,
 potential liabilities and responsibilities regarding the environmental
 condition of certain of the Properties.

          NOW,
THEREFORE, in exchange for good and valuable consideration and of the mutual
covenants and agreements contained herein, and as a further inducement to enter
the Restated Master Lease, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:

SECTION
I. DEFINITIONS.

	
 

	
 

	
 

	
1.

	
Any
 term not otherwise defined herein shall have the meaning assigned to such
 term in the Restated Master Lease. For purposes of this Indemnity Agreement,
 the following term shall have the following meaning.

	
 

	
 

	
 

	
 

	
a.

	
“Highspire
 Petroleum Terminal Property” shall mean, for purposes of this Indemnity
 Agreement, any and all land and Improvements at the Highspire Petroleum
 Terminal, 911 South Eisenhower, Middletown, Pennsylvania, except for the land
 and Improvements that constitute the terminal loading rack at which Tenant
 has rights to obtain fuel through operation of a cardlock or similar access
 system.

SECTION
II. LANDLORD’S REPRESENTATIONS AND WARRANTIES.

	
 

	
 

	
1.

	
Landlord
 represents and warrants to Tenant that, to the knowledge of Landlord, as of
 the date hereof, except for (i) those Service Station Properties listed on
 Exhibits D and E to the 1997 Master Lease, Schedules 2 and 3 and Exhibit C to
 the Restated Master Lease, and Schedule 12 and Schedule Z hereto, (ii) those
 Service Station Properties and Petroleum Terminal Properties listed on
 Schedule 7A and Schedule 7B to that certain Informational Side Letter of even
 date herewith between the parties hereto and on Schedule 3.1(r)(ii) to the
 Merger Agreement, and

	
 

	
 

	
 

	
 

	
(iii)
 those Service Station Properties and Petroleum Terminal Properties set forth
 in the July 31, 2000 Project Summary Binders:

	
 

	
 

	
 

	
 

	
a.

	
There
 are no material permits, licenses or other authorizations for which Landlord
 is responsible that are required with respect to the business, operations,
 assets or current uses of the Service Station Properties or Petroleum
 Terminal Properties under applicable Environmental Laws that have not been
 obtained and complied with and are not otherwise in full force and effect.

	
 

	
 

	
 

	
 

	
b.

	
Except
 as authorized by the permits, licenses or Environmental Law: (i) no Hazardous
 Substances are located on the Service Station Properties or Petroleum
 Terminal Properties, nor have Hazardous Substances been generated, treated,
 contained, handled, located, used, manufactured, processed, buried,
 incinerated, deposited, stored, discharged, refined, dumped, disposed, or
 released on, under or about any part of the Service Station Properties or
 Petroleum Terminal Properties by Landlord or any previous owner, tenant,
 occupant, or user of the Premises except as set forth on Schedule 3 to the
 Restated Master Lease; and (ii) no Hazardous Substances have migrated from or
 to the Service Station Properties or Petroleum Terminal Properties upon,
 under or about other properties in violation of any Environmental Laws.

	
 

	
 

	
 

	
 

	
c.

	
Landlord
 has not received, and is not aware that there is proposed or threatened, with
 respect to the Service Station Properties or Petroleum Terminal Properties
 any written notice, demand, request for information, Claim (as hereinafter
 defined), proceeding, citation, complaint, summons, investigation, order,
 agreement or litigation alleging violation of Environmental Laws on the
 Service Station Properties or Petroleum Terminal Properties, or alleging the
 suspected presence or release of Hazardous Substances thereon, for which
 Landlord (or Tenant after the Restatement Effective Date) may be liable.

	
 

	
 

	
 

	
 

	
d.

	
None
 of the Service Station Properties or Petroleum Terminal Properties are or
 have been listed on the National Priorities List, or any other list,
 schedule, law, inventory or record of hazardous or solid waste sites
 maintained by any federal, state or local agency, and Landlord has not been
 designated as a “potentially responsible party” with respect to any such
 sites.

	
 

	
 

	
 

	
 

	
e.

	
Landlord
 has reported to the applicable Government, to the extent required by the
 Environmental Laws, any matter required to be reported by Landlord under such
 Environmental Laws.

SECTION
III. PETROLEUM TERMINAL PROPERTIES.

	
 

	
 

	
1.

	
In
 the event that one or more of the owned Petroleum Terminal Properties set
 forth on Schedule Y hereto is not in compliance in any respect with any
 Environmental Law(s) as in effect as of the Restatement Effective Date or if
 there are conditions existing at any Petroleum Terminal Property as of the
 Restatement Effective Date that Tenant addresses to ensure continuing
 compliance, or to mitigate the cost of continuing compliance, with such
 Environmental Laws or to

2

	
 

	
 

	
 

	
 

	
 

	
mitigate
 the potential for future non-compliance with such Environmental Laws, Tenant
 and Landlord shall share the actual, out-of-pocket costs and expenses related
 to the Remediation and other compliance-related activities (any such
 Remediation and other compliance-related activities being referred to herein
 as the “Preexisting Condition Terminal Compliance”) (Liabilities associated
 with any Remediation activities at the Newark Petroleum Terminal Property
 related to or arising from the Industrial Sites Recovery Act (“ISRA”) shall
 not be considered Preexisting Condition Terminal Compliance, but shall be
 addressed by Subsection 4 below) as follows:

	
 

	
 

	
 

	
 

	
a.

	
First,
 Tenant shall pay all costs and expenses incurred in connection with such
 Preexisting Condition Terminal Compliance until the amount so incurred with
 respect thereto equals $1,500,000 in aggregate.

	
 

	
 

	
 

	
 

	
b.

	
Second,
 Landlord and Tenant shall share equally the next $8,500,000 of such costs and
 expenses incurred in connection with such Preexisting Condition Terminal
 Compliance until the amount so incurred with respect thereto equals
 $10,000,000 in aggregate.

	
 

	
 

	
 

	
 

	
c.

	
Third,
 to the extent that such costs and expenses incurred in connection with such
 Preexisting Condition Terminal Compliance exceeds $10,000,000, all such costs
 and expenses shall be borne by Tenant.

	
 

	
 

	
 

	
 

	
d.

	
Notwithstanding
 the above, Landlord shall be solely responsible for the actual, out-of-pocket
 costs and expenses related to the Preexisting Condition Terminal Compliance
 for the Highspire Petroleum Terminal Property.

	
 

	
 

	
 

	
 

	
The
 net effect of the foregoing provisions is that, for Petroleum Terminal
 Properties other than the Highspire Petroleum Terminal Property, Landlord
 shall not pay more than $4,250,000 in connection with all Preexisting
 Condition Terminal Compliance. Until the amount expended with respect to
 Preexisting Condition Terminal Compliance exceeds $10,000,000, Tenant shall
 forward to Landlord copies of all invoices and bills received by Tenant in
 connection with such Preexisting Condition Terminal Compliance and evidence
 of Tenant’s payment therefor. Within forty-five (45) days after receipt of
 such evidence, Landlord shall, if so required pursuant to this Section III,
 reimburse Tenant for Landlord’s share of the amount paid by Tenant with
 respect to such invoices and bills.

	
 

	
 

	
2.

	
In
 connection with any proposed Preexisting Condition Terminal Compliance
 contemplated at a time when the costs and expenses incurred by Tenant for all
 prior Preexisting Condition Terminal Compliance expenditures exceed
 $1,500,000 in aggregate (and Landlord shall not have paid its maximum
 amount), Tenant shall furnish to Landlord plans setting forth the scope of
 such project and an estimate of the cost thereof, certified by a reputable
 environmental engineering firm (a “Terminal Expenditure Plan”).

	
 

	
 

	
 

	
a.

	
Landlord
 shall have thirty (30) days from the receipt of any such Terminal Expenditure
 Plan either to approve such Terminal Expenditure Plan or provide Tenant with
 an alternate Terminal Expenditure Plan, certified by a reputable
 environmental engineering firm, which alternate Terminal Expenditure Plan
 shall have the same scope as Tenant’s Terminal Expenditure Plan but may have
 a lower cost estimate than that set forth in Tenant’s Terminal Expenditure Plan.

3

	
 

	
 

	
 

	
 

	
b.

	
If
 Landlord fails to approve Tenant’s Terminal Expenditure Plan or to provide
 Tenant with such alternate Terminal Expenditure Plan within such thirty (30)
 day period, Landlord’s approval of such Terminal Expenditure Plan shall be
 deemed granted.

	
 

	
 

	
 

	
 

	
c.

	
In
 the event that Landlord provides Tenant with an alternate Terminal
 Expenditure Plan, such Preexisting Condition Terminal Compliance shall be
 conducted in accordance with such alternate Terminal Expenditure Plan, unless
 Tenant reasonably disapproves of such Terminal Expenditure Plan within seven
 (7) days of receipt of the same.

	
 

	
 

	
 

	
 

	
d.

	
If
 Tenant fails to respond to such alternate Terminal Expenditure Plan within
 such seven (7) day period, then Tenant’s approval of such alternate Terminal
 Expenditure Plan shall be deemed granted.

	
 

	
 

	
 

	
 

	
e.

	
If
 Tenant reasonably disapproves of such alternate Terminal Expenditure Plan and
 if Landlord and Tenant cannot thereafter promptly agree on a Terminal
 Expenditure Plan, such dispute shall be resolved by an arbitration conducted
 in accordance with the applicable provisions set forth in Exhibit F of the
 Restated Master Lease.

	
 

	
 

	
 

	
 

	
f.

	
Except
 as provided in Subsection g. below, all Preexisting Condition Terminal
 Compliance shall be conducted in accordance with the Terminal Expenditure
 Plan.

	
 

	
 

	
 

	
 

	
g.

	
In
 the event of an imminent and substantial endangerment or when, in the
 reasonable judgment of Tenant, immediate action is necessary to avoid
 enforcement activities, or a fine and/or penalty in excess of $1500 per day
 or $100,000 in the aggregate, by an applicable Government, Tenant may take
 such action as necessary to respond to the imminent and substantial
 endangerment or to avoid enforcement by the applicable Government, prior to
 agreement on a Terminal Expenditure Plan and such action shall not affect in
 any way Landlord’s obligations under this Section.

	
 

	
 

	
 

	
 

	
All
 costs and expenses incurred by Landlord related in any way to the development
 of an alternate Terminal Expenditure Plan (as contemplated by subsection a,
 above) or by Tenant and Landlord related in any way to arbitration of a
 dispute concerning a Terminal Expenditure Plan (as contemplated by subsection
 e., above) shall not be chargeable as costs and expenditures hereunder.

	
 

	
 

	
3.

	
With
 respect to any Preexisting Condition Terminal Compliance for which Notice has
 been given in good faith prior to the tenth (10th) anniversary of the
 Restatement Effective Date, Landlord’s obligations hereunder shall survive
 and continue in full force and effect until completion of the Terminal
 Expenditure Plan or Landlord’s fulfillment of its obligations hereunder,
 whichever is sooner. Landlord shall have no liability or obligation
 whatsoever hereunder with respect to any Preexisting Condition Terminal
 Compliance for which Notice has been received after the tenth (10th)
 anniversary of the Restatement Effective Date.

	
 

	
 

	
4.

	
Landlord
 shall be solely responsible for any and all liability or obligation at the
 Newark Petroleum Terminal Property related to or arising from ISRA, except
 for that liability or obligation under ISRA created or caused by Tenant after
 the Restatement Effective Date, including but not limited to all liability or
 obligation related in any way to the Contamination for which Texaco is
 responsible, or to Contamination discovered as a result of the sampling for

4

	
 

	
 

	
 

	
 

	
which
 the New Jersey Department of Transportation has given notice and shall hold
 Tenant harmless for any such liability or obligation. Landlord shall retain
 and continue to exercise whatever rights it may have to compel a third party
 to fully discharge any Remediation or other related obligations the third
 party may have under ISRA, and shall remain solely responsible for any
 associated actual, out-of-pocket costs and expenses. If Landlord fails to
 compel such third party to fully discharge any Remediation or other similar
 obligations under ISRA, Landlord shall be fully responsible for the discharge
 of such responsibilities.

	
 

	
 

	
SECTION
 IV. TENANT’S OBLIGATIONS.

	
 

	
1.

	
Notwithstanding
 anything to the contrary herein, in the Restated Master Lease, or any other
 agreement, Tenant shall have no liability or obligation whatsoever, and
 Landlord shall indemnify and hold Tenant harmless with respect to any and all
 allegations, actions, orders, decrees, suits, demands, demand letters,
 injunctions, judgments, orders, decrees, rulings, damages, dues, penalties,
 fines, costs, amounts paid in settlement, liabilities, obligations, taxes,
 liens, losses, expenses, and fees (hereinafter “Claims”) with respect to a breach
 of Landlord’s representations in Section II, above, as well as:

	
 

	
 

	
 

	
a.

	
The
 Highspire Petroleum Terminal Property;

	
 

	
 

	
 

	
 

	
b.

	
Any
 Petroleum Terminal Property and Service Station Property closed, sold or
 otherwise disposed of prior to February 1, 1997 (the “Spinoff Transaction”);

	
 

	
 

	
 

	
 

	
c.

	
Service
 Stations Properties closed, sold or otherwise disposed of after the Spinoff
 Transaction and before the Restatement Effective Date, except for the Service
 Station Properties identified on Schedule Z hereto;

	
 

	
 

	
 

	
 

	
d.

	
UST
 Upgrades at the Service Station Properties for which Landlord is responsible
 pursuant to Section 7.6 of the Restated Master Lease; and

	
 

	
 

	
 

	
 

	
e.

	
Remediation
 activities at the Service Station Properties for which Landlord is
 responsible pursuant to Section 9 of the Restated Master Lease.

	
 

	
 

	
 

	
2.

	
Notwithstanding
 anything to the contrary herein, in the Restated Master Lease, or any other
 agreement, any condition not in full compliance with any Environmental Law as
 of the Restatement Effective Date at any Service Station Property or
 Petroleum Terminal Property shall not operate as a lease default and Tenant
 shall have no liability or obligation whatsoever to engage in any Remediation
 or other compliance-related activity with respect to any such non-compliance
 condition as of the Restatement Effective Date at any such Service Station
 Property or Petroleum Terminal Property, except when required by a bona fide
 Claim asserted by an applicable Government or a party other than Landlord or
 any Landlord affiliate (excluding any Claim relating to any breach of
 Landlord’s representations in Section II, above), provided, however, that at
 any time, in Tenant’s sole discretion, Tenant may engage in any Remediation
 or other compliance-related activity with respect to any Service Station
 Property or Petroleum Terminal Property. Landlord shall not take any action
 (i) reasonably likely to cause an applicable Government or a party other than
 Landlord to assert a Claim that seeks such Remediation or other
 compliance-related activity or (ii) to compromise, admit any fact, concede
 liability or otherwise materially prejudice Tenant’s ability to defend any
 actual or potential Claim. Tenant shall not be deemed to be required by a
 bona fide Claim to take action if Tenant

5

	
 

	
 

	
 

	
has
 a reasonable, good faith basis for asserting a challenge or defense and
 Tenant is, in fact, diligently challenging or defending against such Claim.
 So long as Tenant has a reasonable, good faith basis for asserting a
 challenge or defense and Tenant is, in fact, diligently challenging or
 defending against such Claim, any condition that is the subject of Tenant’s
 challenge or defense shall not operate as a lease default.

	
 

	
 

	
3.

	
Except
 as set forth in this Indemnity Agreement and in the Restated Master Lease, Landlord
 shall have no liability to Tenant for any environmental matter related to the
 Service Station Properties or Petroleum Terminal Properties.

	
 

	
 

	
SECTION
 V. LANDLORD’S ADDITIONAL OBLIGATIONS.

	
 

	
1.

	
LANDLORD’S
 COOPERATION. Landlord hereby grants Tenant the right to exercise Landlord’s
 rights to compel each third party listed on Schedule 12 hereto to discharge
 fully any Remediation or other similar obligations that such third party may
 owe to Landlord pursuant to any purchase and sale or similar agreement for
 any of those Properties (a “Sale Agreement”). Tenant shall comply with all
 applicable obligations of Landlord under any Sale Agreement, including,
 without limitation, Landlord’s obligation to provide for and permit access to
 the Property that is the subject matter of such Sale Agreement by such third
 party and/or its employees, agents and contractors in the manner set forth in
 such Sale Agreement. Such third parties shall be solely responsible for
 fulfilling all Remediation and similar obligations, and Landlord shall under
 no circumstance have any obligation or liability with respect thereto, except
 as may be specifically required by Article 9 of the Restated Master Lease. If
 such rights of Landlord under any such Sale Agreement are not assignable, then
 Landlord shall cooperate with Tenant (which cooperation may include, without
 limitation, litigation) as Tenant shall reasonably request, and at Tenant’s
 expense (including, without limitation, Indemnifying Landlord), so as to
 enforce the performance of such third party obligations under such Sale
 Agreement.

	
 

	
 

	
2.

	
RESTATEMENT
 EFFECTIVE DATE. Upon the occurrence of the Restatement Effective Date,
 Landlord shall deliver to Tenant a certificate containing representations as
 of the Restatement Effective Date substantially identical to those contained
 in Section II, except that the Exhibits and Schedules referred to in that
 Section shall, for the purposes of such certificate, contain such
 modifications or amendments as may be necessary to cause the representations
 contained in such certificate to be true and correct as of the Restatement
 Effective Date. In no event, shall the modifications or amendments to the
 Exhibits and Schedules serve to cure any breach of the representations made
 on the date hereof.

	
 

	
 

	
SECTION
 VI. MISCELLANEOUS PROVISIONS.

	
 

	
1.

	
AMENDMENT
 AND MODIFICATION. Any amendment or modification to this Indemnity Agreement
 must be in writing signed by both of the Parties hereto.

	
 

	
 

	
2.

	
ASSIGNMENT.
 This Indemnity Agreement and all of the provisions hereof shall bind and
 benefit the Parties hereto and their respective successors and permitted
 assigns. Nothing in this Indemnity Agreement, expressed or implied, is
 intended or shall be construed to confer upon any person other than the
 Parties hereto, and their respective successors and assigns, any right,

6

	
 

	
 

	
 

	
remedy,
 or Claim under or by reason of this Indemnity Agreement or any provision
 herein contained. Both Parties have the right to assign (and each successive
 assignee may further assign) their rights under this Indemnity Agreement to
 any person or entity, which such person or entity by acceptance of such
 assignment shall be deemed to assume all liabilities, indebtedness and
 obligations included in the rights assigned.

	
 

	
 

	
3.

	
GOVERNING
 LAW. This Indemnity Agreement and its interpretation and performance shall be
 governed by and construed and regulated in accordance with the laws of the
 State of New York, without regard to principles of conflicts of law.

	
 

	
 

	
4.

	
COUNTERPARTS.
 This Indemnity Agreement may be executed in two or more counterparts, each of
 which shall be deemed an original, but all of which together shall constitute
 one and the same instrument and shall become a binding agreement when one or
 more of the counterparts have been signed by each of the Parties and
 delivered to the other party.

	
 

	
 

	
5.

	
AGENT
 FOR SERVICE OF PROCESS. Tenant hereby irrevocably names and designates Lukoil
 Americas Corporation, a Delaware corporation whose address is 540 Madison
 Avenue, New York, NY, as Tenant’s agent (Tenant’s “Agent”) for service of
 process, including all notices required to institute any proceeding in any
 court or in any other way required to confer personal jurisdiction over
 Tenant in any court, and for the receipt of any Notices or other communications
 required under this Indemnity Agreement, including any and all Notices under
 this Indemnity Agreement issued for the purpose of demanding compliance with
 this Indemnity Agreement. Service or demand upon Agent shall be good and
 sufficient service and demand upon Tenant for all purposes, including,
 without limitation, the purpose of obtaining personal jurisdiction over
 Tenant for any legal action or proceeding or for the purpose of commencing
 any proceeding. Tenant agrees to take any and all action necessary to
 continue Agent’s designation in full force and effect. If Agent becomes
 unable to act as Agent for any reason then Tenant shall forthwith irrevocably
 designate a replacement Agent satisfying the requirements of this Section
 that would apply to any replacement Agent, as set forth in the next sentence.
 By Notice to Landlord (but no more frequently than once every six months),
 Tenant may substitute in place of Agent any other Person having full-time
 business offices and a street address in Manhattan. Tenant agrees that
 delivery of any Notice to Agent, or any service of process upon Agent, in
 accordance with the notice requirements of this Indemnity Agreement, shall
 constitute valid and effective personal service upon Tenant. Any such Notice
 or service of process shall be effective in accordance with the provisions of
 this Indemnity Agreement relating to Notices. Any failure of Agent to give
 any notice of such service of process or Notice to Tenant shall not impair or
 affect the validity of such Notice, service of process, or any judgment
 rendered in any proceeding based thereon.

	
 

	
 

	
6.

	
ENTIRE
 AGREEMENT. This Indemnity Agreement embodies the entire agreement and
 understanding of the Parties hereto in respect of the subject matter
 contained herein. There are no separate understandings or agreements, oral or
 written, between the Parties with respect to the subject matter contained
 herein. This Indemnity Agreement supersedes all prior agreements and
 understandings between the Parties with respect to such subject matter. The
 Restated Master Lease contains certain parallel provisions, but in the event
 of any conflict between this Indemnity Agreement and the Restated Master
 Lease, this Indemnity Agreement governs and controls.

7

	
 

	
 

	
7.

	
HEADINGS.
 The article and section headings contained in this Indemnity Agreement are
 for convenience and reference purposes only and shall not affect in any way
 the meaning or interpretation of this Indemnity Agreement.

	
 

	
 

	
8.

	
SEVERABILITY.
 If any one or more terms or provisions contained in this Indemnity Agreement
 or the application of such terms or provisions shall, for any reason and to
 any extent, be held to be invalid, illegal or unenforceable in any respect,
 then the remainder of this Indemnity Agreement, or the application of terms
 or provisions to persons or circumstances other than those as to which it is
 invalid, illegal or unenforceable, shall not be affected by such invalidity.
 All remaining provisions of this Indemnity Agreement shall be valid and
 enforced to the fullest extent permitted by law.

	
 

	
 

	
9.

	
FURTHER
 ASSURANCES. Each party to this Indemnity Agreement agrees to execute such
 documents or instruments, and to take such action, as the other party may
 reasonably request after the date hereof in order to effectuate and perfect
 the indemnification contemplated hereby.

	
 

	
 

	
10.

	
THIRD
 PARTY BENEFICIARY. The Landlord and Tenant are the intended beneficiaries of
 this Indemnity Agreement.

	
 

	
 

	
11.

	
SUBMISSION
 TO JURISDICTION. Each of the Parties to this Indemnity Agreement hereby
 submits to the exclusive jurisdiction of the United Stated District Court for
 the Southern District of New York for purposes of all legal proceedings
 arising out of or relating to this Indemnity Agreement and the estates and
 relationships created hereby. If the Parties hereto are unable to submit to
 the jurisdiction of the United States District Court for the Southern
 District of New York notwithstanding reasonably diligent efforts to do so,
 then the Parties shall submit to the exclusive jurisdiction of any New York
 State court sitting in New York County, New York. Each of the Parties to this
 Indemnity Agreement hereby irrevocably waives, to the fullest extent it may
 effectively do so, any objection which it may now or hereafter have to the
 laying of venue of any such proceedings brought in any such court and any
 Claim that any such proceeding brought in any such court has been brought in
 an inconvenient forum.

	
 

	
 

	
12.

	
INTERPRETATION.
 No inference in favor of or against any party shall be drawn from the fact
 that such party has drafted any portion of this Indemnity Agreement. The
 Parties have both participated substantially in the negotiation, drafting and
 revision of this Indemnity Agreement with representation by counsel and such
 other advisers as they have deemed appropriate. The words “include” and
 “including” shall be construed to be followed by the words: “without
 limitation.”

	
 

	
 

	
13.

	
REMEDIES.
 Any breach by Tenant of any obligation or undertaking herein shall not, under
 any circumstances, absolve Landlord of its obligations and undertakings
 herein. The sole remedies available to Landlord upon breach by Tenant shall
 be the ability to seek injunctive relief to ensure compliance and to seek
 actual damages accrued as a result of the breach.

8

IN
WITNESS WHEREOF, the Parties have caused this Indemnity Agreement to be signed
by their respective officers thereunto duly authorized as of the date above.

	
 

	
 

	
 

	
 

	
 

	
Getty
 Properties Corp.

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/
 John Fitteron

	
 

	
 

	

	
 

	
 

	
Name:

	
John
 Fitteron

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
Senior
 Vice President

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Getty
 Petroleum Marketing Inc.

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/
 Leo Liebowitz

	
 

	
 

	

	
 

	
 

	
Name:

	
Leo
 Liebowitz

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
Chairman
 and Chief

	
 

	
 

	
 

	
Executive
 Officer

	
 

	
 

	
 

	

9

SCHEDULE Y

(Petroleum Terminal Properties)

	
 

	
 

	
 

	
Newark
 Petroleum Terminal

	
86
 Doremus Avenue

	
Newark,
 NJ

	
 

	
 

	
 

	
Mt.
 Vernon Petroleum Terminal

	
4301
 Boston Post Road

	
Bronx,
 NY

	
 

	
 

	
 

	
Long
 Island City Petroleum Terminal

	
3023
 Greenpoint Ave.

	
Long
 Island, NY

	
 

	
 

	
 

	
New
 Haven Petroleum Terminal

	
85
 Forbes Avenue

	
New
 Haven, CT

	
 

	
 

	
 

	
E.
 Providence Petroleum Terminal

	
Massasoit
 Ave. and Dexter Road

	
E.
 Providence, RI

	
 

	
 

	
 

	
Rensselaer
 Petroleum Terminal

	
49
 Riverside Avenue

	
Rensselaer,
 NY

10EXHIBIT 10.12 AMENDED AND RESTATED TRADEMARK
LICENSE AGREEMENT, DATED NOVEMBER 2, 2000, BETWEEN GETTY PROPERTIES CORP. AND
GETTY PETROLEUM MARKETING INC.

 

AMENDED AND RESTATED

TRADEMARK LICENSE AGREEMENT

                    THIS
AMENDED AND RESTATED TRADEMARK LICENSE AGREEMENT (together with all Schedules
attached hereto and made a part hereof, this “License Agreement”), effective as
of the Restatement Effective Date (as defined in the Master Lease (as
hereinafter defined)), is entered into by and between: Getty Properties Corp.
(f/k/a Getty Realty Corp.) (hereinafter called “REALTY”), a corporation
organized and existing under the laws of the State of Delaware, located at 125
Jericho Turnpike, Jericho, New York 11753; and Getty Petroleum Marketing Inc.
(together with any successors and permitted assignees, hereinafter called
“MARKETING”), a corporation organized and existing under the laws of the State
of Maryland, located at 125 Jericho Turnpike, Jericho, New York 11753.

                    WHEREAS,
REALTY is the owner of certain trademarks, service marks and trade names that
have been utilized in, among other businesses, the motor fuels marketing
business, as conducted in certain areas of the United States (defined below as
the Licensed Territory);

                    WHEREAS,
REALTY has leased and subleased various motor fuels outlet properties to
MARKETING under certain net lease agreements, all of which net lease agreements
have been incorporated, consolidated, amended and restated as of the date
hereof pursuant to that certain Consolidated, Amended and Restated Master Lease
between REALTY, as landlord, and MARKETING, as tenant (as so incorporated,
consolidated, amended and restated, the “Master Lease”);

                    WHEREAS,
REALTY licensed certain trademarks, service marks and trade names to MARKETING
for use in its marketing business pursuant to the Trademark License

Agreement
between Getty Properties Corp. and MARKETING dated February 1, 1997 (the
“Original License Agreement”) in the Original Licensed Territory (as defined
below);

                    WHEREAS,
REALTY and MARKETING seek to amend and restate in its entirety the Original
License Agreement;

                    NOW,
THEREFORE, in consideration of the foregoing and of the mutual promises
hereinafter set forth, the parties hereby amend, restate and supersede the
Original License Agreement in its entirety as follows:

	
 

	
 

	
 

	
 

	
1.

	
DEFINITIONS

                    A.
“Affiliate” means any stockholder of MARKETING that beneficially owns at least
a majority of the then issued and outstanding capital stock of MARKETING or any
wholly-owned or majority-owned subsidiary of MARKETING that are involved in the
Marketing Business (as defined hereinafter).

                    B.
“Branded Gasoline” means gasoline that is sold through a Branded Outlet and is
identified using any of the Licensed Marks.

                    C.
“Branded Outlet” means a retail service station with signage bearing any of the
Licensed Marks and located in the Licensed Territory that is, or is hereafter,
owned or operated by MARKETING or persons that sublicense the Licensed Marks
from MARKETING pursuant to Paragraph 2C hereof.

                    D.
“Licensed Marks” means the trademarks, service marks or trade names listed on
Schedule A attached hereto and as subsequently included pursuant to Paragraph
6C hereof.

                    E.
“Licensed Territory” means the following states and district, as applicable, of
the United States: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island,

2

Connecticut,
New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia and the
District of Columbia.

                    F.
“Marketing Business” means: (i) the purchase, storage, distribution, marketing,
and sale of gasoline, diesel fuel and other related products at wholesale and
through terminals and a retail service station network; (ii) the operation of
convenience stores; and (iii) the purchase, storage, transportation and sale of
home heating oil to residential and commercial customers in mid Hudson Valley,
New York. By way of example, “Marketing Business” does not include the real
estate business previously carried on by Getty Petroleum Corp., which is
currently being carried on by REALTY.

                    G.
“Material Non-Monetary Default” means a material breach or breaches of
MARKETING’s obligations under this License Agreement that reasonably would be
expected to result in a significant and lasting diminution of the value of the
Licensed Marks in the Marketing Business.

                    H.
“Original Licensed Territory” means the following states of the United States:
Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New
York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia and West Virginia.

	
 

	
 

	
 

	
 

	
2.

	
GRANT
 OF LICENSE

                    A.
Subject to the terms and conditions set out herein, REALTY grants to MARKETING
an exclusive license to use the Licensed Marks in the Licensed Territory in
connection with its Marketing Business. The license shall be royalty-free
except for the royalty payments required to be made pursuant to the Master
Lease, which such payments are defined therein as the “Royalty Fee.”

3

                    B.
MARKETING and any Affiliate may use and continue to use the name “Getty” in the
name under which it incorporates, organizes or conducts its business and its
subsidiaries; provided that there is no likelihood of confusion between
MARKETING’s and its subsidiaries’ incorporated name and Getty Properties Corp.
or Getty Realty Corp., and that the use of the name “Getty” in MARKETING’s or
its subsidiaries’ incorporated name does not exceed REALTY’s rights to the name
“Getty”. The parties agree that the use by MARKETING and its subsidiary of the
incorporated names Getty Petroleum Marketing Inc. and Getty Terminals Corp.
does not create any likelihood of confusion. MARKETING or any Affiliate may use
the name “Getty” in combination with the name “Lukoil”, or any variation
thereof, and any other name under which OAO LUKOIL operates, or subsequently
operates, all or part of its operations, in the names under which such entities
incorporate, organize or conduct their respective businesses, provided that
such use of the name “Getty” does not exceed REALTY’s rights to the name
“Getty” and does not create a likelihood of confusion with Getty Properties
Corp. or Getty Realty Corp. The act of combining the name “Lukoil”, or any
stylistic variation thereof, or any other name with the name “Getty” or using
such combined name in commerce shall give no rights to REALTY to use the names
combined with “Getty”. Upon the request of MARKETING, REALTY shall execute and deliver
to MARKETING any consents that may be required from time to time by the
secretary of state or similar office of a state, commonwealth or other
jurisdiction in order for MARKETING or any Affiliate to use the name “Getty” in
the name under which it incorporates, organizes or conducts its business.
MARKETING accepts the license subject to the terms and conditions of this
License Agreement.

                    C.
Subject to the consent of REALTY, which consent shall not be unreasonably
withheld or delayed, MARKETING may sublicense the Licensed Marks to

4

retailers
or wholesalers of petroleum and other related products and operators of
convenience stores, including but not limited to service station retailers,
jobbers and distributors, but only subject to the terms and conditions of this
License Agreement, all of which shall be equally binding on the sublicensees.
In determining the reasonableness of a refusal to consent to a sublicense, the
parties shall be guided by the following considerations: (i) the parties shall
not knowingly take any action which would materially tarnish the image or cause
a material adverse impact on the value of the Licensed Marks; and (ii) the
parties shall not permit the indiscriminate proliferation of sublicensees which
would reasonably be expected to cause the Licensed Marks to lose significance
as a source of origin. In connection with any sublicense granted hereunder, the
sublicensee shall be required to agree in writing to be bound by and comply
with all terms and conditions of this License Agreement, except the obligation
to pay royalty fees under the Master Lease which shall remain an obligation of
MARKETING.

                    REALTY
hereby consents to the sublicensing of the Licensed Marks pursuant to this
Paragraph 2C and authorizes MARKETING to make amendments and revisions in those
sublicenses that are not of a material nature.

                    D.
Nothing in this License Agreement shall be construed as restricting MARKETING’S
ability to (i) purchase, store, distribute, market, or sell gasoline, diesel
fuel and other related products at wholesale and through terminals and a retail
service station network, (ii) to operate convenience stores and (iii) to
purchase, store, transport and sell home heating oil to residential and
commercial customers in Mid-Hudson Valley, New York, in the Licensed Territory,
in each case using any trademark, trade name or service mark other than the
Licensed Marks.

5

	
 

	
 

	
 

	
 

	
3.

	
OWNERSHIP
 OF MARKS

                    MARKETING
acknowledges REALTY’s ownership of the Licensed Marks in the Licensed
Territory. MARKETING agrees that it will do nothing inconsistent with such
ownership and that all use of the Licensed Marks by MARKETING shall inure to
the benefit of, and be on behalf of, REALTY. MARKETING agrees that nothing in
this License Agreement shall give MARKETING any right, title or interest in the
Licensed Marks other than the right to use the Licensed Marks in accordance
with this License Agreement. MARKETING agrees that it will not attack the title
of REALTY to the Licensed Marks or attack the validity of the rights granted
under this License Agreement.

	
 

	
 

	
 

	
 

	
4.

	
QUALITY
 STANDARDS

                    MARKETING
agrees that the nature and quality of all services rendered by MARKETING in
connection with the Licensed Marks; all goods sold by MARKETING under the
Licensed Marks; and all related advertising, promotional and other related uses
of the Licensed Marks by MARKETING shall conform to reasonable standards set by
and be under the control of REALTY. MARKETING agrees that the quality of all such
services, goods, and advertising and promotional materials associated with the
Licensed Marks shall be of the same high-level quality as previously associated
with the Licensed Marks. MARKETING further agrees that the quality of all such
services, goods, and advertising, promotional and other related uses of the
Licensed Marks shall conform with the standards, specifications, and
instructions as established by REALTY or such subsequent standards,
specifications, or instructions reasonably comparable thereto promulgated by
MARKETING subject to the approval of REALTY, such approval not to be
unreasonably withheld or delayed. MARKETING shall be deemed to have complied
with the quality standards in existence from time to time under this License
Agreement so long as MARKETING maintains the physical condition of, and the
services provided through,

6

Branded
Outlets not materially worse than the physical condition and level of service
generally characteristic on the date hereof of retail service stations of MARKETING
and its sublicensees that use the Licensed Marks. Except as may be required by
law or as reasonably necessary to protect the Licensed Marks, REALTY shall not
set quality standards higher than those generally characteristic on the date
hereof of services rendered and goods sold through retail service stations of
MARKETING and its sublicensees that use the Licensed Marks. REALTY shall not
set quality standards for other licensees of the Licensed Marks that are lower
than those set for MARKETING from time to time during the term of this License
Agreement. Without limiting the generality of the foregoing, MARKETING agrees
to comply with the standards, specifications, and instructions set out in
Schedule B hereto, as may be modified from time to time in accordance with this
Paragraph 4. If MARKETING intends to use the Licensed Marks on a new product
within the ambit of a particular registration it shall request approval for
such new product from REALTY at least thirty (30) days prior to initiating such
new product use, and such approval shall not be unreasonably withheld by
REALTY. REALTY shall provide MARKETING with notice of approval or non-approval,
as the case may be, within thirty (30) days of the receipt of the notice with
respect to MARKETING’s intended new product; provided that REALTY shall be
deemed to have given such approval if REALTY fails to deliver to MARKETING any
notice within such 30-day period. If REALTY rejects any proposal to use any of
the Licensed Marks with a new product, then REALTY shall provide a reasonably
detailed explanation to MARKETING as to why REALTY found the proposed use of
the Licensed Marks unacceptable. MARKETING may resubmit to REALTY, and REALTY
shall give reasonable consideration to, an amended proposal for such new product.

7

	
 

	
 

	
 

	
 

	
5.

	
QUALITY
 MAINTENANCE

                    MARKETING
agrees to cooperate with REALTY in facilitating REALTY’s control of the nature
and quality of goods, services and related uses associated with the Licensed
Marks, to permit reasonable inspection of MARKETING’s operations once in any
four-month period during normal business hours and upon ten day’s prior written
notice, and to supply REALTY with specimens of all uses of the Licensed Marks
upon request. REALTY shall have no right to inspect the books and records of
MARKETING other than those books and records reasonably related to the use of
the Licensed Marks by MARKETING in accordance with the terms of this License
Agreement, and REALTY shall maintain all such information in the strictest of
confidence. MARKETING shall comply with all applicable laws and regulations,
including, but not limited to laws and regulations applicable to the storage
and sale of gasoline at Branded Outlets and will obtain all appropriate
government approvals pertaining to the sale, distribution and advertising of
goods and services covered by this License Agreement. REALTY shall have the
right to enter and inspect up to fifteen Branded Outlets in any three-month
period, which number, for purposes of clarification, includes Branded Outlets
operated by sublicensees of the Licensed Marks. REALTY shall have the right to
receive from MARKETING, upon request and without charge, a reasonable number of
samples of products sold by MARKETING as well as labels, promotional materials,
advertising materials, sales materials and related materials using any of the
Licensed Marks.

	
 

	
 

	
 

	
 

	
6.

	
FORM
 OF USE

                    A.
MARKETING agrees to use the Licensed Marks only in the form, manner and trade
dress and with appropriate legends as reasonably prescribed from time to time
by REALTY, and not to use any other trademark, trade name, trade dress, or
service mark in combination with any of the Licensed Marks without prior
written approval of REALTY.

8

REALTY
hereby approves of the use of the Licensed Marks used in combination with other
trademarks, trade names, trade dress, or service marks set out in Schedule C.

                    B.
MARKETING shall submit to REALTY for prior approval all new or revised labels
that are a material departure from those presently used at least sixty (60)
days prior to initiating use of a revised or new label. REALTY’s approval shall
not be unreasonably withheld or delayed. REALTY shall provide MARKETING with
notice of approval or non-approval, as the case may be, within thirty (30) days
of the receipt of the notice with respect to MARKETING’s intended new or
revised label; provided that REALTY shall be deemed to have given such approval
if REALTY fails to deliver to MARKETING any notice within such 30-day period.
If REALTY rejects any proposal to use any new or revised labels, then REALTY
shall provide a reasonably detailed explanation to MARKETING as to why REALTY
found the proposed labels unacceptable, and MARKETING may resubmit to REALTY,
and REALTY shall give reasonable consideration to, any amended proposal for
such new or revised label.

                    C.
If during the term of this Agreement REALTY owns or obtains the right to use
any trademark, service mark or trade name that incorporates the name “Getty”
and is associated with the Marketing Business, REALTY promptly shall give
written notice of such new trademark, service mark or trade name to MARKETING,
and upon the written request of MARKETING, such trademark, service mark or
trade name shall become a Licensed Mark.

	
 

	
 

	
 

	
 

	
7.

	
TRADEMARK
 NOTICES

                    MARKETING
will utilize on its products bearing the Licensed Marks, packaging and
advertising, whatever lawful notice is reasonably requested in writing by
REALTY in order to protect the Licensed Marks and properly designate REALTY’s legal
ownership thereof. Without limiting the foregoing, MARKETING agrees to utilize,
where commercially practicable, a notice sufficient to indicate that each of
the utilized Licensed Marks is a registered trademark

9

of
Getty Properties Corp. If REALTY does not request a particular trademark
notice, MARKETING shall utilize such notice as in the opinion of its counsel is
appropriate in order to protect the Licensed Marks and properly designate
REALTY’s legal ownership thereof and the fact of registration thereof. However,
MARKETING shall advise REALTY of each such intended notice, and make any
changes thereto reasonably requested by REALTY.

	
 

	
 

	
 

	
 

	
8.

	
APPROVALS
 AND PROTECTION OF THE LICENSED MARKS

                    In
discharging their respective rights and obligations with respect to Paragraphs
4, 5, 6, or 7 above, the parties shall be guided by the following
consideration: The parties shall not knowingly take any action which would
materially tarnish the image or cause a material adverse impact on the value of
the Licensed Marks including, without limitation, the indiscriminate
proliferation of uses of the Licensed Marks which would cause any of the
Licensed Marks to lose significance as a source of origin. If there is any
dispute as to either party’s obligations with respect to Paragraphs 4, 5, 6, or
7 above, or the application thereof, the parties shall promptly consult to
resolve the matter. If the parties cannot resolve the matter, the dispute shall
be submitted to arbitration in accordance with Paragraph 15 below and the
arbitrator in that case shall be guided by the same considerations described
above in this Paragraph 8.

	
 

	
 

	
 

	
 

	
9.

	
CONFLICTING
 TRADEMARKS

                    MARKETING
will not at any time adopt or use, without REALTY’s prior written consent, any
word, mark, or designation which is similar or likely to be confused with any
of the Licensed Marks.

10

	
 

	
 

	
 

	
 

	
10.

	
FUTURE
 DOCUMENTS, RECORDING AND TRADEMARK MAINTENANCE

                    A.
The parties agree to cooperate in the execution and delivery, from time to
time, throughout the term of this License Agreement, of any documents that may
be reasonably required or desirable to effectuate and carry out the purpose and
intent of this License Agreement. Such documents shall include instruments
required to file, renew, protect, perfect and/or maintain the Licensed Marks
and REALTY’s ownership therein, or to provide for the granting of any license
hereunder. Without limiting the generality of the foregoing, REALTY shall enter
MARKETING or its local designee or cause MARKETING or its local designee to be
entered as a registered user of the Licensed Marks wherever necessary or
desirable, and MARKETING and/or its local designee shall, upon written request,
execute such registered user agreements.

                    B.
Except as provided in Paragraph 11B below with respect to infringement of the
Licensed Marks by third parties, REALTY shall take such action as is reasonably
required or desirable to obtain and maintain appropriate protection, of the
Licensed Marks applicable to MARKETING’s business. Except as provided in
Paragraph 11B below, with respect to infringement of the Licensed Marks by
third parties, REALTY shall bear the full cost of all trademark filings,
renewals, registered user entries and actions to protect, perfect or maintain the
Licensed Marks applicable to the Marketing Business, including the attorney’s
and local agent’s fees, taxes, government filing and other fees.

	
 

	
 

	
 

	
 

	
11.

	
INFRINGEMENT
 AND OTHER ACTIONS

                    A.
The parties shall promptly notify each other of any claim that is asserted, and
of any action or proceeding that is threatened or commenced, in which a third
party (i) challenges MARKETING’s right to use any of the Licensed Marks, (ii)
alleges that any Licensed

11

Mark
infringes the trademark or trade name rights of such third party, or (iii) in
which the revocation, cancellation or declaration of invalidity of any of the
Licensed Marks is sought. REALTY and MARKETING shall consult with respect to
each such claim, action, or proceeding, the assertion of counterclaims thereto
and the settlement thereof and shall jointly defend, in the name of REALTY
and/or in the name of MARKETING, each such action or proceeding that is
commenced. If an action or proceeding brought by a third party concerns the
registrations and/or products of both REALTY and MARKETING, both REALTY and
MARKETING shall be responsible for their pro rata share of legal expenses
incurred in defending such action or proceeding, said pro rata share to be
determined by the proportion of products and/or registrations at issue in the
third party action or proceeding. If there is a disagreement as to the
appropriate pro rata share of legal expenses to be borne by each party, the
matter shall be submitted to arbitration in accordance with Paragraph 15 below.
If the claim or action concerns only products (other than claims pertaining to
the Licensed Marks) and/or registrations of MARKETING, MARKETING shall bear all
legal expenses incurred in defending such actions and proceedings and bear all
damages and costs, if any, recovered by the third party.

                    B.
REALTY and MARKETING will each undertake commercially reasonable efforts to
learn of any unauthorized uses of the Licensed Marks. Promptly upon receiving
notice or knowledge thereof, the parties shall notify each other of any
infringement or other violation by a third party of any of the Licensed Marks.
REALTY and MARKETING shall consult with respect to any such infringement, and
any action or proceeding, including opposition and cancellation actions, that
may be brought against such infringement. REALTY shall exercise its discretion
with respect to taking appropriate action including the bringing of

12

actions
at REALTY’s expense in the name of REALTY and/or MARKETING, but shall not be
obligated to take any action or institute any proceedings. If such action or
proceeding is commenced by REALTY, it shall promptly notify MARKETING and
MARKETING shall cooperate, including the defense of counterclaims, and REALTY
shall bear the expenses of MARKETING except for fees charged by any attorneys
retained solely by MARKETING in connection with such cooperation. MARKETING
shall be given an opportunity to participate with counsel of its choice bearing
its own legal and other costs.

                    In
the event that REALTY determines not to commence such action or proceeding at
its expense, it shall promptly notify MARKETING. MARKETING may then, at its
expense, initiate such action or proceedings in its capacity as a licensee of
such Licensed Marks, provided however, that MARKETING must obtain the prior
written approval of REALTY regarding commencement of such action, such consent
not to be unreasonably withheld. The foregoing notwithstanding, in the event of
any unauthorized use of the Licensed Marks by one of MARKETING’S sublicensees,
MARKETING shall undertake efforts to cause the unauthorized use to stop. In the
event those efforts are unsuccessful, MARKETING shall, at its expense, initiate
such action or proceedings in its capacity as a licensee of such Licensed Marks
with respect to such unauthorized use. REALTY shall cooperate with MARKETING in
any such proceeding or action, including the defense of any counterclaims, and
MARKETING shall bear the expenses of REALTY, except for fees charged by any
attorneys retained solely by REALTY in connection with such cooperation. REALTY
may, if not a party, join in, with counsel of its own choice, bearing its own
legal and other costs. The party bringing any action or proceeding under this
sub-paragraph (B) shall keep the other party informed of the proceedings and
give the other party an opportunity to participate in any settlements, but the
final decision whether to

13

settle
the action or proceeding shall be made by the party bringing the action or
proceeding, subject to the approval of REALTY (if not a party), such approval
not to be unreasonably withheld. If within ten (10) business days or such
shorter time period as shall be reasonably practicable under the circumstances
REALTY does not approve a proposed settlement recommended by MARKETING in good
faith, REALTY shall be deemed to have taken over responsibility for the action
or proceeding, including subsequent legal fees, awards against REALTY or
MARKETING and expenses relating thereto. No settlement by either party shall bind
the other to make any payment or suffer any loss of existing or future rights
without such other party’s consent, which shall not be unreasonably withheld.
Any recovery in such action or proceeding shall be applied first to reimburse
the party or parties for its or their legal expenses in maintaining such action
or proceeding. The excess shall belong to the party maintaining the action or
proceeding at the time such recovery is awarded. If the action is brought
jointly and the recovery is not sufficient to reimburse REALTY and MARKETING
for their legal expenses in such action, the unreimbursed portion of such legal
expenses shall be borne equally by each party.

	
 

	
 

	
 

	
 

	
12.

	
TERM

                    This
License Agreement shall continue in force and effect until fifteen years from
the effective date of this License Agreement unless sooner terminated as
provided for herein. This License Agreement shall be automatically renewed when
and to the extent that the Master Lease is extended. All extended terms of this
License Agreement shall be coterminous with the Master Lease.

	
 

	
 

	
 

	
 

	
13.

	
TERMINATION
 AND BREACH

                    This
License Agreement shall be terminated upon (a) the voluntary filing by
MARKETING of a bankruptcy petition or an involuntary bankruptcy proceeding
having been

14

commenced
and not stayed or terminated within 120 days of such commencement or (b) the
termination of the Master Lease in accordance with its terms. REALTY shall have
the right to terminate this License Agreement upon the determination that a
Material Non-Monetary Default has occurred, as provided in this Paragraph 13,
and such Material Non-Monetary Default has not been cured by MARKETING within
one year of such determination or within thirty (30) days of such determination
if the breach giving rise to such Material Non-Monetary Default is the
commingling of Branded Gasoline as described in Section 1 of Schedule B
attached hereto. REALTY’s only remedy with respect to breaches by MARKETING
other than Material Non-Monetary Defaults shall be to seek damages or
injunctive relief. In the event of any breach or threatened breach of this
License Agreement or a claimed Material Non-Monetary Default, notice shall be
given and the parties shall promptly consult in good faith to cure such breach,
with the party at fault being given an adequate period of time to remedy the
matter. If such breach or claimed Material Non-Monetary Default is not cured
within sixty (60) days of the notice, the matter may be submitted to
arbitration in accordance with Paragraph 15 below, which may include a
determination whether a material breach or Material Non-Monetary Default, as
the case may be, has occurred and/or been cured. In the event the arbitrator
determines that a material breach has occurred, the arbitrator shall not be
authorized to terminate this License Agreement but shall be authorized to issue
any other order or award any other relief deemed appropriate, including,
without limitation, injunctive relief.

	
 

	
 

	
 

	
 

	
14.

	
EFFECT
 OF TERMINATION

                    Upon
termination of this License Agreement, MARKETING agrees (a) to immediately
discontinue all use of the Licensed Marks and any term confusingly similar
thereto, and to delete the same from its corporate or business name; (b) to
cooperate with REALTY or its appointed agent to apply to the appropriate
authorities to cancel any recording of this License

15

Agreement
from all government records; (c) to use reasonable best efforts to destroy or
cause the destruction of all printed materials and signs bearing any of the
Licensed Marks; (d) that all rights in the Licensed Marks and the good will
connected therewith shall remain the property of REALTY; (e) to cause all
sublicenses to terminate; and (f) to use reasonable best efforts to cause all
sublicensees to immediately discontinue all use of the Licensed Marks and any
term confusingly similar thereto, and to delete the same from their respective
business names, if applicable. Notwithstanding the foregoing, MARKETING and its
sublicensees may continue to sell all goods bearing any of the Licensed Marks
on packaging in inventory at the time this License Agreement is terminated for
a period of 30 days.

	
 

	
 

	
 

	
 

	
15.

	
ARBITRATION

                    Any
controversy or claim arising out of, or relating to, this License Agreement or
its interpretation, performance or nonperformance or any breach thereof, which
the parties are unable to resolve between themselves, shall first be submitted
to a single arbitrator who shall be knowledgeable in marketing and trademark
matters. The arbitrator shall be mutually appointed by the parties, and shall
not be bound by rules of the American Arbitration Association, but shall adopt
such procedures as shall appear appropriate to expedite decision making, in
order that disputes may be resolved within commercially reasonable time
periods. If the parties cannot agree on the selection of the arbitrator, the
arbitrator shall be selected by The American Arbitration Association. Each
party shall bear its own costs in any such proceeding. The decision of the
arbitrator shall be final and binding upon the parties and may be enforced in
any court of competent jurisdiction.

	
 

	
 

	
 

	
 

	
16.

	
REPRESENTATIONS
 AND WARRANTIES

                    REALTY
hereby represents and warrants to Marketing that: (a) REALTY has title to the
Licensed Marks in the Licensed Territory free and clear of any liens and

16

encumbrances;
(b) to REALTY’s knowledge, the Licensed Marks do not infringe any trademark or
other proprietary or intellectual property right of any third party; (c) REALTY
has the right, power and authority to enter into this License Agreement and to
perform all of REALTY’s obligations hereunder; (d) REALTY has not granted to
any third party a license for the Licensed Property that would conflict with
the rights granted to MARKETING hereunder; and (e) to REALTY’s knowledge the
Licensed Marks are the only trademarks, service marks or trade names that
incorporate the name “Getty” in the Marketing Business.

	
 

	
 

	
 

	
 

	
17.

	
GENERAL
 PROVISION

                    A.
Assignability: This license may be assigned by either party to the successor in
interest or assignee of substantially all of its business or assets, or the
surviving party of any merger or consolidation to which it is a party provided
that the assignee of any assignment assumes all the assignor’s obligations
hereunder. Without the prior written consent of REALTY, MARKETING shall be
permitted to assign this License Agreement to any majority-owned subsidiary of
MARKETING or a wholly-owned subsidiary of Lukoil Americas Corporation, provided
that the Master Lease is also assigned to any such subsidiary. Apart from any
assignment permissible under the preceding sentences of this paragraph 16A,
MARKETING may not otherwise, assign the license granted herein or the
obligations undertaken herein without the prior written consent of REALTY,
which consent shall not be unreasonably withheld or delayed.

                    B.
Notices: Any notice, approval, consent or other communication required or
permitted hereunder shall be in writing and shall be given by personal delivery
or telecopy, with acknowledgement of receipt, or by prepaid registered mail,
return receipt requested, addressed to the party at its address first above
written, to the attention of its General Counsel, or to any other address that
either party may subsequently designate, by notice in accordance with

17

this
paragraph. Notices and other communications hereunder shall be deemed effective
one (1) day after dispatch, if personally delivered or telecopied, and three
(3) days after dispatch, if posted, subject to proof of delivery.

                    C.
Waiver: The waiver by any party of a breach or default of any provision of this
License Agreement by the other party shall not constitute a waiver by such
party of any succeeding breach of the same or other provision; nor shall any
delay or omission on the part of either party to exercise or avail itself of
any right, power or privilege that it has or may have hereunder, operate as a
waiver of any such right, power or privilege by such party.

                    D.
Governing Law: This License Agreement shall be governed by, subject to and
construed under the laws of the State of New York.

                    E.
Unenforceability: In the event that any term, clause or provision of this
License Agreement shall be construed to be or adjudged invalid, void or unenforceable,
such term, clause or provision shall be construed as severed from this License
Agreement, and the remaining terms, clauses and provisions shall remain in
effect.

                    F.
Association: The parties, by this License Agreement, do not intend to create a
partnership, principal/agent, master/servant, franchisor/franchisee, or joint
venture relationship, and nothing in this License Agreement shall be construed
as creating such a relationship between the parties. The parties agree that
this License Agreement does not create any franchise relationship between them
that is subject to the provisions of the Petroleum Marketing Practices Act or
any similar state or local government law.

                    G.
Counterparts: This License Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and all such
counterparts together shall constitute one and the same instrument.

18

                    IN
WITNESS WHEREOF, the parties hereto have caused this License Agreement to be
executed as of the day and year first above written.

	
 

	
 

	
 

	
 

	
GETTY
 PROPERTIES CORP. (f/k/a Getty Realty Corp.)

	
 

	
 

	
 

	
 

	
By: 

	
/s/
 John Fitteron

	
 

	
 

	

	
 

	
Name:
 John Fitteron

	
 

	
Title:
 Senior Vice President

	
 

	
 

	
 

	
 

	
GETTY
 PETROLEUM MARKETING INC.

	
 

	
 

	
 

	
 

	
By: 

	
/s/
 Leo Liebowitz

	
 

	
 

	

	
 

	
Name:
 Leo Liebowitz

	
 

	
Title:
 Chairman and Chief Executive Officer

	
 

	
 

	
 

	
19

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