Document:

Exhibit 10.2

 

	
  

  	
  AMENDED AND
  RESTATED PROMISSORY NOTE $14,400,000.00 April 3, 2013 Elmsford, New York Loan
  No. 901000543 THIS AMENDED AND RESTATED PROMISSORY NOTE is made by WU/LH 103
  FAIRVIEW PARK L.L.C., a Delaware limited liability company, and WU/LH 404
  FIELDCREST L.L.C., a Delaware limited liability company (collectively,
  “Borrower”), to and for the benefit of GENWORTH LIFE INSURANCE COMPANY, a
  Delaware corporation (“Lender”). RECITALS A. Lender is the holder of that
  certain Mortgage Note more particularly described in Exhibit A hereto (the
  “Original Note”), which Original Note was assigned to Lender. B. Borrower
  confirms that (a) the outstanding aggregate principal balance under the
  Original Note as of the date hereof is Fourteen Million Four Hundred Thousand
  Dollars ($14,400,000.00), (b) the full principal amount has been advanced
  under the Original Note, and (c) there are no offsets, advances, setoffs,
  defenses or counterclaims against payment of said amount. C. Lender and
  Borrower have agreed to modify and consolidate the terms of the Original
  Note, and in connection therewith, to amend, restate and consolidate the
  Original Note upon the terms and conditions set forth herein. NOW, THEREFORE,
  the Lender and Borrower each hereby amend and restate in their entirety the
  Original Note (the Original Note, as amended and restated hereby, and as the
  same may be amended, restated, modified or extended from time to time, is
  hereinafter referred to as this “Note”) as follows: l. Promise to Pay. FOR
  VALUE RECEIVED, Borrower jointly and severally, promise to pay in lawful
  money of the United States of America to the order of GENWORTH LIFE INSURANCE
  COMPANY, a Delaware corporation (“Lender”), at c/o Bank of America, RESF -
  Servicing, 900 West Trade Street, Suite 650, NCl-026-06-01, Charlotte, North
  Carolina 28255, or such other place either within or without the State of
  North Carolina as Lender may designate in writing from time to time, the
  principal sum of FOURTEEN MILLION FOUR HUNDRED THOUSAND DOLLARS ($14,400,000.00),
  with interest from the date hereof on the unpaid principal balance at the
  rate set forth below. 2. Interest. From the date hereof, interest shall
  accrue on the unpaid principal balance at the rate of THREE AND TWO-TENTHS
  PERCENT (3.2%) per annum. 3. Payments and Term. (a) Principal and interest
  shall be due and payable as follows: (i) A payment of all interest to accrue
  hereon from the Disbursement Date to and including the last day of the month
  during which the Disbursement Date occurs shall be due and payable on the
  Disbursement

  

 

	
  

  	
  Date. For
  purposes of this Note, the “Disbursement Date” shall be the date on which
  disbursement of loan proceeds occurs. (ii) Monthly payments of interest only
  in the sum of THIRTY-EIGHT THOUSAND FOUR HUNDRED DOLLARS ($38,400.00) each
  shall be due and payable on the first day of each calendar month, commencing
  on June 1, 2013 and continuing on the first day of each calendar month
  thereafter to and including May 1, 2014. (iii) Monthly payments of principal
  and interest in the sum of SIXTY-NINE THOUSAND SEVEN HUNDRED NINETY-THREE
  DOLLARS AND SEVENTY-SEVEN CENTS ($69,793.77) each shall be due and payable on
  the first day of each calendar month, commencing on June 1, 2014 and
  continuing on the first day of each calendar month thereafter to and
  including the Maturity Date (hereinafter defined), such payments being based
  upon a twenty-five (25) year amortization period beginning on May 1, 2014.
  (iv) The entire indebtedness evidenced by this Note, if not sooner paid,
  shall be due and payable on April 30, 2018 (the “Maturity Date”). (b) All
  payments on account of the indebtedness evidenced by this Note shall be first
  applied to interest, costs and prepayment fees (if any) and then to
  principal. Interest shall be computed on the basis of a 360-day year
  consisting of twelve 30-day months. 4. Prepayment. This Note may be prepaid
  in full on a scheduled payment date, upon giving the holder of this Note
  (“Holder”) thirty (30) days prior written notice (which notice may be revoked
  by the Borrower without penalty), by paying, in addition to the outstanding
  principal balance at the date of prepayment (plus all accrued interest and
  other sums due under the terms of the Loan Documents, as that term is defined
  below), a Prepayment Fee. The Prepayment Fee is equal to the greater of: (i)
  1% of the principal prepaid (principal outstanding after application of
  payment due on date of prepayment) at the date of prepayment or (ii) the
  present value computed on a monthly basis as of the date of prepayment of all
  future principal and interest payments due under this Note (starting with the
  first monthly payment due after the prepayment date and including any balloon
  payments) using the Discount Rate (as defined below) less the principal
  prepaid. No Prepayment Fee shall be due if this Note is prepaid (a) during
  the 90 days prior to the Maturity Date or (b) in connection with the
  application of insurance proceeds or any condemnation award. Except as
  specifically provided above, Borrower hereby expressly agrees that if, for
  any reason, a prepayment of any or all of this note is made, whether
  voluntary or upon or following any acceleration of the maturity date by
  Lender on account of any Event of Default (as hereinafter defined), including
  but not limited to any transfer or disposition as prohibited or restricted by
  the Mortgage (as hereafter defined), then Borrower shall be obligated to pay
  concurrently therewith, as a prepayment premium, the applicable Prepayment
  Fee specified above. The prepayment fee shall be due and payable in
  connection with all such payments, including but not limited to payments made
  by Borrower or any guarantor after the occurrence of any Event of Default, or
  payments made from the application of proceeds obtained in connection with
  any foreclosure or other sale of all or any collateral securing the loan
  evidenced hereby. Borrower agrees that Lender’s agreement to make the loan on
  the terms and conditions set forth in this Note constitutes adequate
  consideration, given individual weight by Borrower, for this agreement and
  acknowledges that, in making the loan on the terms and conditions set forth
  herein, Lender has given individual weight to the consideration afforded by
  this agreement. -2-

  

 

	
  

  	
  Discount Rate
  (defined) The Discount Rate (DR) is the rate which when compounded monthly,
  is equivalent to the Reinvestment Rate (RR) when compounded semi-annually.
  The DR shall be rounded to the nearest one hundredth of one percent. For
  example, if the RR equaled 2.335%, then the DR would equal 2.34%. This is
  further defined as: DR= ((((1+RR/2)^2)^(1/12))-1)*12 Reinvestment Rate
  (defined) The Reinvestment Rate (RR) is the yield in percent per annum of the
  Treasury Constant Maturity Nominal 10 (TCM) that equals the remaining
  Weighted Average Life (WAL) of the Note as published 5 business days prior to
  the date of prepayment in the Federal Reserve Statistical Release H.15
  Selected Interest Rates. If the remaining WAL of this Note does not equal any
  of the published TCM’s then the Reinvestment Rate will be determined by
  interpolating linearly between two TCM’s, one having a maturity as close as
  possible to, but greater than the remaining WAL of this Note and one having a
  maturity as close as possible to, but less than the remaining WAL of this
  Note. The RR shall be rounded to the nearest one hundredth of one percent.
  For example, if the remaining WAL of the Note on June 24, 2004 was 1.38 years
  then the RR would equal 2.335%. In this example the RR is arrived at by
  interpolating the 1-year and 2-year TCM’s. On June 24, 2004 the 1-year TCM
  equaled 2.11% and the 2-year TCM equaled 2.74%. In the event the Federal
  Reserve Statistical Release H.15 Selected Interest Rates is discontinued or
  no longer published, the Holder of this Note shall, in its sole discretion,
  designate some other daily financial or governmental publication of national
  circulation to determine the Reinvestment Rate which most nearly corresponds
  to the yield of the TCM. Weighted Average Life (defined) The Weighted Average
  Life (WAL) of the Note is the average number of years that each dollar of
  unpaid principal due on the Note remains outstanding. WAL is computed as the
  weighted-average time to the receipt of all future cash flows, using as the
  weights the dollar amounts of the principal paydowns. The WAL shall be
  rounded to the second decimal place (for example: 1.38). For example, for a
  loan with 17 months remaining and principal payments as detailed in Column B
  in the chart below, the WAL would equall. 38 years. A B C Month X Principal
  Payment = Weighted Principal Payment 1 X $4,495 = $4,495 2 X $4,521 = $9,042
  3 X $4,547 = $13,641 4 X $4,574 = $18,295 5 X $4,600 = $23,002 6 X $4,627 =
  $27,763 7 X $4,654 = $32,579 8 X $4,681 = $37,451 9 X $4,709 = $42,378 10 X
  $4,736 = $47,361 11 X $4,764 = $52,401 12 X $4,792 = $57,498 13 X $4,819 =
  $62,653 14 X $4,848 = $67,866 15 X $4,876 = $73,138 -3-

  

 

	
  

  	
  16 X $4,904 =
  $78,469 17 X $1,577,601 = $26,819,214 Totals: $1,652,747 $27,467,245 Column C
  = Column A X Column B WAL =(Total Column C / Total Column B) / 12 Lender
  shall notify Borrower of the amount and the basis of determination for the
  Prepayment Fee, which absent manifest error, shall be conclusive and binding
  upon Lender and Borrower. Borrower expressly understands, acknowledges and
  agrees that (i) the Prepayment Fee is fair and reasonable and represents a
  reasonable estimate of the fair compensation for the loss that Lender shall
  sustain due to the early prepayment of the outstanding principal under the
  Note, (ii) its agreement to pay the Prepayment Fee is a material inducement
  to Lender to make the loan, without which inducement Lender would not make
  the loan and (iii) the Prepayment Fee shall be paid without prejudice to the
  right of Lender to collect and retain any and all other amounts or charges provided
  to be paid hereunder or under the other Loan Documents. 5. Events of Default.
  (a) The occurrence of any one or more of the following shall constitute an
  Event of Default under this Note: (i) Borrower’s failure to make any payment
  of principal or interest when due hereon, followed by Borrower’s failure to
  make such payment within ten (10) days after written notice thereof given to
  Borrower by Lender; provided, however, that Lender shall not be obligated to
  give Borrower written notice prior to exercising its remedies with respect to
  such default if Lender had previously given Borrower during the previous
  twelve (12) month period a notice of default for failure to make a payment of
  principal or interest hereon. (ii) The occurrence of any other Event of Default,
  as that term is defined in the Mortgage referred to in the “Security; Loan
  Documents” section below. (b) Time is of the essence. Upon the occurrence of
  any Event of Default under this Note, (i) the entire principal balance hereof
  and all accrued interest shall, at the option of Lender, without notice, bear
  interest at a rate from time to time equal to five (5) percentage points over
  what would otherwise be the Note rate (or the maximum rate permitted by
  applicable law if that is less) from the date of occurrence of the event or
  circumstance giving rise to the Event of Default until the Event of Default
  is cured and (ii) the entire principal balance hereof and all accrued
  interest shall immediately become due and payable at the option of Lender, without
  notice. Lender’s failure to exercise any option hereunder shall not
  constitute a waiver of the right to exercise the same in the event of any
  subsequent default. Borrower acknowledges that, during the period of time
  that any payment of principal, interest or other amount due under this Note
  is delinquent, Lender will incur costs, expenses and losses attributable to
  such things as its loss of use of the moneys due and to the adverse impact on
  its ability to meet its other obligations and to avail itself of other
  opportunities. Borrower further acknowledges that the exact amount of the
  costs, expenses and losses would be extremely difficult or impractical to
  ascertain. Borrower and Lender agree that the increased rate of interest
  provided for in clause (b)(i) above represents a fair and reasonable estimate
  of the costs, expenses and losses Lender will incur by reason of any such
  delinquency in payment. (c) At Lender’s option, any written notice of default
  required to be given to Borrower hereunder may be given in the form of a
  statutory notice of default under the laws of the State of New York relating
  to foreclosures of mortgages. -4-

  

 

	
  

  	
  6. Late
  Charges. Borrower acknowledges that, if any monthly installment payment under
  this Note is not made when due (other than a balloon payment due upon
  maturity), Lender will as a result thereof incur costs not contemplated by
  this Note, the exact amount of which would be extremely difficult or
  impracticable to ascertain. Such costs include without limitation processing
  and accounting charges. Accordingly, except as may otherwise be mandated by
  applicable law, Borrower hereby agrees to pay to Lender with respect to each
  monthly installment payment which is not received by Lender within five (5)
  days of (and including) the date when due (four (4) days after the due date)
  a late charge equal to FIVE PERCENT (5%) of the amount of the payment.
  Borrower and Lender agree that such late charge represents a fair and
  reasonable estimate of the costs Lender will incur by reason of such late
  payment. Acceptance of such late charge by Lender shall in no event
  constitute a waiver of the default with respect to the overdue amount, and
  shall not prevent Lender from exercising any of the other rights and remedies
  available to Lender. 7. Security; Loan Documents. This Note is secured, among
  other documents, by an Amended and Restated Mortgage, Assignment of Rents and
  Leases, and Security Agreement (the “Mortgage”) encumbering property (the
  “Property’’) located in Westchester County, New York. This Note, the Mortgage
  and all other related instruments and documents are collectively referred to
  herein as the “Loan Documents.” 8. Collection Expenses. If there occurs any
  event or circumstance which is or which with the passage of time, the giving
  of notice, or both, will constitute an Event of Default, and in connection
  therewith Lender consults an attorney regarding the enforcement of any of its
  rights or remedies under this Note or any of the other Loan Documents, or if
  this Note is placed in the hands of an attorney for collection, or if suit is
  brought to enforce this Note or any of the other Loan Documents, Borrower
  promises to pay Lender on demand for all fees, costs and expenses, including
  reasonable attorneys’ fees, incurred in connection therewith. Such fees,
  costs and expenses shall include those incurred with or without suit and
  those incurred at or in preparation for any trial, appeal or review or in any
  proceedings under any present or future federal bankruptcy act or state
  receivership law, and any post-judgment collection proceedings. 9. Waivers.
  Except as expressly provided in this Note to the contrary, Borrower hereby
  waives presentment, protest and demand for payment, notice of protest,
  demand, dishonor and nonpayment of this Note. 10. Joint and Several
  Liability. The liability of each of the undersigned is joint and several with
  respect to all obligations hereunder. 11. Limitation of Liability. (a)
  Borrower is hereby released from all personal liability under the Loan
  Documents to the extent such release does not operate to invalidate the lien
  of the Mortgage. In the event of foreclosure of the Mortgage or other
  enforcement of the collection of the indebtedness evidenced by this Note,
  Lender agrees, and any holder hereof shall be deemed by acceptance hereof to
  have agreed, not to take a deficiency judgment against Borrower with respect
  to said indebtedness. (b) Notwithstanding the provisions of paragraph (a) of
  this “Limitation of Liability” section, however, Borrower shall be fully and
  personally liable to the holder of this Note for all claims, demands,
  damages, losses, liabilities, fines, penalties, fees, liens, costs and
  expenses, including attorneys’ fees, suffered or incurred by Lender on
  account of or in connection with: -5-

  

 

	
  

  	
  (i) Waste
  committed or knowingly permitted to the Property, or fraud or willful
  misrepresentation committed by Borrower; (ii) The retention of any rental
  income or other income arising with respect to the Property collected by
  Borrower after the occurrence of any event or circumstance which is or which
  with the passage of time, the giving of notice, or both will constitute an
  Event of Default and prior to the cure (if any) of such event or
  circumstance, to the extent that any such retained income is not used to pay
  capital or operating expenses of the Property; (iii) The retention of
  security deposits or other deposits made by tenants of the Property which are
  not paid to tenants when due or transferred to Lender or any other party
  acquiring the Property at a foreclosure sale or any transfer in lieu of
  foreclosure; (iv) The removal or disposition by Borrower of any personal
  property or fixtures encumbered by the Mortgage which are not replaced as
  required by the Mortgage; (v) The misapplication of any proceeds under any
  insurance policies or awards resulting from condemnation or the exercise of
  the power of eminent domain or by reason of damage or destruction to any
  portion of the Property or any building or buildings located thereon; (vi)
  Any property taxes or assessments which accrued prior to the earlier of (i)
  Lender, its nominee or any bidder at a foreclosure sale taking title to the
  Property or (ii) Borrower’s tender to Lender of a deed to the Property in
  recordable and insurable form; (vii) Borrower’s failure to maintain in full
  force and effect hazard, liability and other insurance coverages as required
  by the Mortgage; (viii) Borrower’s failure to perform any obligations under
  the Environmental Indemnity executed in connection with this Note, and any
  other breach of covenant, breach of warranty or misrepresentation by Borrower
  under the Mortgage, the Environmental Indemnity or any of the other Loan
  Documents with respect to hazardous, toxic and dangerous wastes, substances
  and materials. There will be no liability to the Borrower for such wastes,
  substances and materials which are introduced to the Property subsequent to a
  permitted transfer of the Property by Borrower or to the Lender’s acquisition
  of title as a result of foreclosure or deed in lieu of foreclosure (the date
  of such transfer or acquisition being referred to as the “Transfer Date”);
  provided, however, the Borrower shall bear the burden of proof that the
  introduction and initial release of such wastes, substances and materials (i)
  occurred subsequent to the Transfer Date, (ii) did not occur as a result of
  any action of Borrower, and (iii) did not occur as a result of continuing
  migration or release of any such waste, substance or material introduced
  prior to the Transfer Date in, on, under or near the Property; and (ix) The
  acceptance by Lender of an assignment of the Original Note, rather than
  making the loan evidenced hereby without such assignment, including without
  limitation any loss or cost as a result of a failure to pay any applicable
  fees or taxes. Nor shall Borrower be entitled to the benefits of the
  provisions of paragraph (a) of this “Limitation of Liability” section upon
  the occurrence of any one or more of the events described in clauses (A), (B)
  or (C) below (the events described in clauses (A), (B) and (C) below being
  hereinafter collectively referred to as “Full Recourse Events”): (A) Without
  Lender’s prior written consent, the Property or any part thereof or interest
  therein is encumbered by any consensual lien or encumbrance other than that
  of the Mortgage; provided, however, that, for purposes of this clause (A),
  the lien or encumbrance of general property taxes or special assessments or
  of persons supplying labor or materials to or in connection with the Property
  shall not be deemed to be consensual in nature; or (B) Without Lender’s prior
  written consent, the Property or any part thereof or interest therein is sold
  (by contract or otherwise), conveyed or otherwise transferred; or -6-

  

 

	
  

  	
  (C) The filing
  of any bankruptcy or insolvency proceeding by Borrower. Upon the occurrence
  of any one or more Full Recourse Events, the provisions of paragraph (a) of
  this “Limitation of Liability” section shall immediately and automatically be
  of no further force or effect, and Borrower shall thereupon and thereafter
  have personal liability on this Note without regard to the provisions of
  paragraph (a) of this “Limitation of Liability” section. (c) The limitations
  on personal liability contained in paragraph (a) of this “Limitation of Liability”
  section are not intended and shall not be deemed to constitute a forgiveness
  of the indebtedness evidenced by this Note or a release of the obligation to
  repay said indebtedness according to the terms and provisions hereof, but
  shall operate solely to limit the remedies otherwise available to the holder
  hereof for the enforcement and collection of such indebtedness. (d) As used
  in this “Limitation of Liability” section, the term “Borrower” includes (i)
  Borrower (and each of them, if more than one) and (ii) all general partners
  of any Borrower which is a general or limited partnership. The personal
  liability hereunder of all persons included within the term “Borrower” shall
  be joint and several. (e) The provisions of this “Limitation of Liability” section
  shall control over any conflicting provisions of this Note, the Mortgage or
  any other instrument or document executed in connection with the indebtedness
  evidenced hereby. 12. Limitation on Interest and Loan Charges. Interest, fees
  and charges collected or to be collected in connection with the indebtedness
  evidenced hereby shall not exceed the maximum, if any, permitted by any
  applicable law. If any such law is interpreted so that said interest, fees
  and/or charges would exceed any such maximum and Borrower is entitled to the
  benefit of such law, then: (A) such interest, fees and/or charges shall be
  reduced by the amount necessary to reduce the same to the permitted maximum;
  and (B) any sums already collected from Borrower which exceeded the permitted
  maximum will be refunded. Lender may choose to make the refund either by
  treating the payments, to the extent of the excess, as prepayments of
  principal or by making a direct payment to Borrower. No prepayment premium
  shall be assessed on prepayments under this paragraph. The provisions of this
  paragraph shall control over any inconsistent provision of this Note or the
  Mortgage or any other document executed in connection with the indebtedness
  evidenced hereby. 13. Governing Law. This Note shall be construed, enforced
  and otherwise governed by the laws of the State of New York. 14. Lender. As
  used herein, the term “Lender” includes any subsequent holder of or
  participant in this Note. 15. Seal and Effective Date. This Promissory Note
  is an instrument executed under seal and is to be considered effective and
  enforceable as of the date set forth on the first page hereof, independent of
  the date of actual execution and delivery. 16. Amended and Restated Note.
  This Note amends and restates, in their entirety, the terms and provisions of
  the Original Note. This Note does not constitute a novation of the Borrower’s
  obligations under the Original Note, but a consolidation, amendment and
  restatement of such obligations. -7-

  

 

	
  

  	
  17. Waiver of
  Jury Trial. TO THE EXTENT PERMITTED BY LAW, LENDER AND BORROWER HEREBY
  KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAlVE THE RIGHT EITHER MAY HAVE TO A
  TRIAL BY JURY IN ANY ACTION, WHETHER ARISING IN CONTRACT OR TORT, BY STATUTE
  OR OTHERWISE, IN ANY WAY RELATED TO THIS NOTE. BORROWER ACKNOWLEDGES THAT
  THIS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER’S EXTENDING CREDIT TO
  MAKER THAT THE LENDER WOULD NOT HAVE EXTENDED CREDIT WITHOUT THIS JURY TRIAL
  WAIVER, THAT BORROWER HAS BEEN REPRESENTED BY AN ATTORNEY OR HAS HAD AN
  OPPORTUNITY TO CONSULT WITH AN ATTORNEY IN CONNECTION WITH THIS JURY TRIAL
  WAIVER TO UNDERSTAND THE LEGAL EFFECT OF THIS WAIVER, AND NO WAIVER OR
  LIMITATION OF LENDER’S RIGHTS UNDER THIS PARAGRAPH SHALL BE EFFECTIVE UNLESS
  IN WRITING AND MANUALLY SIGNED ON LENDER’S BEHALF. Borrower acknowledges that
  the above paragraph has been expressly bargained for by Lender as part of the
  loan evidenced hereby and that, but for Borrower’s agreement and the
  agreement of any other person liable for payment hereof thereto, Lender would
  not have extended the loan for the term and with the interest rate provided
  herein. [Signatures Begin On Following Page] -8-

  

 

	
  

  	
  WU/LH 103
  FAIRVIEW PARK L.L.C., a Delaware limited liability company By: GTJ Realty,
  LP, a Delaware limited partnership, Manager By: GTJ GP, LLC, a Maryland
  limited liability company, General Partner By: GTJ REIT, Inc., a Maryland
  corporation, Manager By: Name : Louis Sheinker Title: President WU/LH 404
  FIELDCREST L.L.C., a Delaware limited liability company By: GTJ Realty, LP, a
  Delaware limited partnership, Manager By: GTJ GP, LLC, a Maryland limited
  liability company, General Partner By: GTJ REIT, Inc., a Maryland
  corporation, Manager By: Name : Louis Sheinker Title: President

  

 

	
  

  	
  EXHIBIT A TO
  NOTE Note Schedule Mortgage Note dated as of February 25, 2008 made by WU/LH
  470 BRIDGEPORT L.L.C., WU/LH 950 BRIDGEPORT L.L.C., WU/LH 12 CASCADE L.L.C.,
  WU/LH 15 EXECUTIVE L.L.C., WU/LH 22 MARSH HILL L.L.C., WU/LH 25 EXECUTIVE
  L.L.C., WU/LH 269 LAMBERT L.L.C., WU/LH 401 FIELDCREST L.L.C., WU/LH 404
  FIELDCREST L.L.C., WU/LH 36 MIDLAND L.L.C., WU/LH 100-110 MIDLAND L.L.C.,
  WU/LH 112 MIDLAND L.L.C., WU/LH 199 RIDGEWOOD L.L.C., WU/LH 203 RIDGEWOOD
  L.L.C., WU/LH 8 SLATER L.L.C., WU/LH 100 AMERICAN L.L.C., WU/LH 200 AMERICAN
  L.L.C., WU/LH 300 AMERICAN L.L.C., WU/LH 400 AMERICAN L.L.C. and WU/LH 500
  AMERICAN L.L.C., each a Delaware limited liability company in favor of JOHN
  HANCOCK LIFE INSURANCE COMPANY (U.S.A.), a Michigan corporation, doing its
  mortgage business in New York as Manulife Financial, successor by merger to
  JOHN HANCOCK LIFE INSURANCE COMPANY, a Massachusetts corporation, as (i)
  modified by Partial Release of Mortgage dated April 3 2013 from JOHN HANCOCK
  LIFE INSURANCE COMPANY, and (ii) assigned by Allonge to Mortgage Note dated
  April 3, 2013 from JOHN HANCOCK LIFE INSURANCE COMPANY to GENWORTH LIFE
  INSURANCE COMPANY. -2-Exhibit 10.3

 

	
  

  	
  Loan No.
  901000543 UNCONDITIONAL GUARANTY THIS UNCONDITIONAL GUARANTY (this
  “Guaranty’’) is made this 3rd day of April, 2013, by GTJ REALTY, LP, a
  Delaware limited partnership (“Guarantor”) to and for the benefit of GENWORTH
  LIFE INSURANCE COMPANY, a Delaware corporation (“Lender”). BACKGROUND WU/LH
  103 FAIRVIEW PARK L.L.C., a Delaware limited liability company, and WU/LH 404
  FIELDCREST L.L.C., a Delaware limited liability company (collectively,
  “Borrower”) have applied to Lender for a loan (the “Loan”) in the principal
  amount of FOURTEEN MILLION FOUR HUNDRED THOUSAND DOLLARS ($14,400,000.00).
  The Loan will be evidenced by an Amended and Restated Promissory Note (the
  “Note”) in the Loan amount and will be secured by an Amended and Restated Mortgage,
  Assignment of Rents and Leases, and Security Agreement (the “Mortgage”) on
  real property located in Westchester County, New York, commonly described as
  103 Fairview Park Drive and 404 Fieldcrest Drive, Elmsford, New York 10523.
  An Environmental Indemnity (the “Environmental Indemnity’’) has also been
  executed by Borrower and Guarantor in connection with the Loan. The Note, the
  Mortgage and all other documents (other than the Environmental Indemnity)
  executed in connection with the Loan are hereinafter collectively referred to
  as the “Loan Documents.” All moneys due or which may become due under the
  Loan Documents, or any of them, and the due and punctual performance and
  observance of all the other terms, covenants and conditions of the Loan
  Documents, whether according to the present terms of the Loan Documents or at
  any earlier or accelerated date or dates as provided therein, or pursuant to
  any extension of time, or to any change or changes in the terms, covenants
  and conditions of the Loan Documents, are hereinafter collectively referred
  to as the “Indebtedness.” The Loan is conditioned upon Guarantor’s execution
  and delivery to Lender of this Guaranty. NOW, THEREFORE, in consideration of
  benefits to Guarantor from Borrower, the receipt and sufficiency of which are
  hereby acknowledged by Guarantor, and to induce Lender to make the Loan to
  Borrower, Guarantor agrees as follows: 1. Unconditional Guaranty of Payment.
  (a) Guarantor unconditionally, absolutely and irrevocably guarantees the due
  and punctual payment of all moneys due or which may become due to Lender by
  Borrower in connection with the Loan for any and all claims, demands,
  damages, losses, liabilities, fines, penalties, fees, liens, costs and
  expenses, including attorneys’ fees, suffered or itincurred by Lender on
  account of or in connection with: (i) Waste committed or knowingly permitted
  to the property encumbered by the Mortgage, or fraud or willful
  misrepresentation committed by Borrower; (ii) The retention by Borrower of
  any rental income or other income arising with respect to the property
  encumbered by the Mortgage collected by Borrower after the occurrence of all
  “Event of Default,” as that term is defined in the Note and prior to the cure
  (if any) of such default, to the extent that any such retained income is not
  used to pay capital or operating expenses of said property; (iii) The
  retention of security deposits or other deposits made by tenants of the
  property encumbered by the Mortgage which are not paid to tenants when due or
  transferred to Lender or any other party acquiring the property at a
  foreclosure sale or any transfer in lieu of foreclosure;

  

 

	
  

  	
  (iv) The
  removal or disposition by Borrower of any personal property or fixtures
  encumbered by the Mortgage which are not replaced as required by the
  Mortgage; (v) The misapplication by Borrower of any proceeds under any
  insurance policies or awards resulting from condemnation or the exercise of
  the power of eminent domain or by reason of damage or destruction to any
  portion of the property encumbered by the Mortgage or any building or
  buildings located thereon; (vi) Any property taxes or assessments which
  accrue prior to the earlier of (i) Lender, its nominee or any bidder at a
  foreclosure sale taking title to the property encumbered by the Mortgage or
  (ii) Borrower’s tender to Lender of a deed to the property encumbered by the
  Mortgage in recordable and insurable form; (vii) Borrower’s failure to
  maintain in full force and effect hazard, liability and other insurance
  coverages as required by the Mortgage; (viii) Any breach of covenant, breach
  of warranty or misrepresentation by Borrower under the Mortgage or any of the
  other Loan Documents with respect to hazardous, toxic and dangerous wastes,
  substances and materials; and (ix) The acceptance by Lender of an assignment
  of the Original Note (as that term is defined in the Note), rather than
  making the Loan without such assignment, including without limitation any
  loss or cost as a result of a failure to pay any applicable fees or taxes.
  (b) Upon and at all times following the occurrence of any Full Recourse Event
  (as defined below), Guarantor unconditionally, absolutely and irrevocably
  fully guarantees the due and punctual payment of the principal and interest
  of the Note and the due and punctual payment, performance and observance of
  all other Indebtedness. (c) As used herein, the term “Full Recourse Event”
  means: (i) The encumbrance of the property encumbered by the Mortgage or any
  part thereof or interest therein by any consensual lien or encumbrance other
  than that of the Mortgage, without Lender’s prior written consent; provided,
  however, that, for purposes of this clause (i), the lien or encumbrance of
  general property taxes or special assessments or of persons supplying labor
  or materials to or in connection with said property shall not be deemed to be
  consensual in nature; or (ii) The sale (by contract or otherwise), conveyance
  or other transfer of the property encumbered by the Mortgage or any part
  thereof or interest therein, without Lender’s prior written consent; or (iii)
  The filing of any bankruptcy or insolvency proceeding by Borrower. This is a
  guaranty of payment, not of collection. If the amount outstanding under the
  Loan or any other moneys due or which may become due under the Note or any of
  the other Loan Documents is determined by a court of competent jurisdiction,
  that determination shall be conclusive and binding on Guarantor, regardless
  of whether Guarantor was a party to the proceeding in which such
  determination was made or not. 2. Acknowledgements. Representations And
  Warranties. (a) Guarantor acknowledges and agrees that: (i) Guarantor either
  has reviewed, or has had an opportunity to review, the Loan Documents, and is
  otherwise fully familiar with the terms of the Loan; (ii) This Guaranty
  constitutes an obligation to Lender which is separate and distinct from the
  obligation of Borrower to Lender under the Loan Documents; -2-

  

 

	
  

  	
  (iii) Guarantor
  is signing this Guaranty as an inducement to Lender to make the Loan, and
  further acknowledges that Lender would not make the Loan without this
  Guaranty. (b) Guarantor represents and warrants to Lender as follows: (i)
  Guarantor is either financially interested in Borrower or will receive other
  benefits from Borrower as a result of this Guaranty; and (ii) If Guarantor is
  married, this Guaranty is made on behalf of and shall bind Guarantor and his
  or her marital community. 3. Waivers By Guarantor And Rights Of Lender.
  Guarantor agrees that Lender may deal exclusively with Borrower in all
  matters relating to the Loan without notice to or the approval of Guarantor.
  It is intended that, subject to the limitations of paragraph 1 above,
  Guarantor shall remain unconditionally, absolutely and irrevocably liable
  hereunder for payment and performance of the Indebtedness regardless of any
  act or omission which might otherwise directly or indirectly result, by
  operation of law or otherwise, in the discharge or release in whole or in
  part of Borrower, Guarantor or any other person, or the discharge, release or
  impairment of any collateral (the “Collateral”) now or hereafter held as
  security for any of the obligations under the Loan Documents or this
  Guaranty. Without limiting the generality of the foregoing, Guarantor hereby
  waives the following and agrees that Lender may do or fail to do any of the
  following one or more times, without notice to or the approval of Guarantor,
  all without diminishing, altering or otherwise affecting the unconditional,
  absolute and irrevocable liability of Guarantor hereunder: (a) Guarantor
  waives notice of Lender’s acceptance of this Guaranty; (b) Guarantor waives
  notice of Lender’s advances of Loan funds, extension of credit to Borrower
  and any payment of obligations of Borrower; (c) Guarantor waives notice of default
  under the Loan Documents; (d) Lender may extend, renew, accelerate or
  otherwise change the time for payment and performance of any of Borrower’s
  obligations under the Loan Documents and may otherwise modify and change the
  terms, conditions and covenants of the Loan Documents, including without
  limitation increase or decrease of the rate of interest on the Loan,
  provided, however, that nothing in this clause (d) is intended to grant
  Lender the right to make any such modification or change without the approval
  of Borrower unless Lender has the right to do so without Borrower’s approval
  under the Loan Documents or as a matter of law; (e) Lender may release
  Borrower, any Guarantor or any other person now or hereafter having any
  liability under the Loan Documents; (f) Lender may take and hold Collateral
  for payment and performance of the Indebtedness, and may release, surrender,
  substitute, take additional, or exchange, any such Collateral Lender now
  holds or may later acquire; (g) Lender does not have to marshal assets and
  may direct the order or manner of sale of the Collateral as Lender in its
  discretion may determine; (h) Lender may apply any money or Collateral to the
  repayment of any obligations due to Lender under the Loan Documents in any
  order Lender in its discretion may determine; (i) Lender may forbear from
  pursuing Borrower, any other guarantor or any other person, or forbear from
  foreclosing or otherwise realizing upon any Collateral or other guaranty; (j)
  Lender may impair or fail to perfect a security interest in any Collateral;
  -3-

  

 

	
  

  	
  (k) Lender may
  sell Collateral in any manner Lender in its discretion may determine, without
  notice to Guarantor and whether or not such sale is commercially reasonable;
  (l) Guarantor waives any defense arising out of the absence, impairment, or
  loss of any or all rights of• recourse, reimbursement, contribution,
  subrogation or any other right or remedy of Guarantor against Borrower, any
  other guarantor, or any other person to recover amounts which Guarantor is obligated
  to pay under this Guaranty; (m) Guarantor waives any defense based upon
  election of remedies and any anti-deficiency statute, it being intended that
  this Guaranty shall survive any and all realization upon Collateral. Such
  waiver shall include without limitation any defense that a foreclosure of
  Collateral, whether judicial or nonjudicial, discharged Guarantor’s
  obligations under this Guaranty; (n) Guarantor waives any defense arising by
  reason of any invalidity, ineffectiveness or unenforceability of all or any
  portion of the Loan Documents or on the basis of any other defense (other
  than full payment in cash of any monetary obligation or full performance of
  any other obligation) available to Borrower, any other guarantor or any other
  person; (o) Guarantor waives any defense arising out of lack of diligence or
  out of delay in enforcement, collection or realization under the Loan
  Documents; (p) Guarantor waives demand for payment, demand for performance,
  notice of non-payment, notice of non-performance, presentment, protest,
  notice of dishonor, and indulgences and notices of every other kind; and (q)
  Guarantor hereby expressly waives: (i) any defense arising because of
  Lender’s election, in any proceeding instituted under the Federal Bankruptcy
  Code, of any application of Section 1111(b)(2) of the Federal Bankruptcy
  Code; and (ii) any defense based on any borrowing or grant of a security
  interest under Section 364 of the Federal Bankruptcy Code. 4. Lender’s Right
  Not To Proceed Against Borrower. Other Person Or Collateral; Lender’s
  Remedies. This Guaranty may be enforced against Guarantor without attempting
  to collect (or without exhausting its efforts to collect) from Borrower, any
  other guarantor or any other person who may be liable for Borrower’s obligations,
  and without attempting to enforce (or exhausting its efforts to enforce)
  Lender’s rights in any Collateral. Lender may exercise its remedies available
  under this Guaranty and the Loan Documents and available at law and in equity
  in such order as Lender in its discretion may determine. Lender may join
  Guarantor in any suit in connection with the Loan Documents or may proceed
  against Guarantor in a separate action. If suit, sale, foreclosure or other
  remedy is availed of, only the net proceeds therefrom, after deducting all
  charges and expenses of any kind and nature whatsoever, shall be applied to
  the reduction of the Indebtedness, and Lender shall not be required to
  institute or prosecute proceedings to recover any deficiency as a condition
  of payment under or enforcement of this Guaranty. At any sale of Collateral,
  Lender may, at its discretion, purchase all or any part of such Collateral
  and apply against the amount bid therefor an equal amount of the
  Indebtedness. 5. Bankruptcy And Assignment Of Rights. Guarantor’s obligation
  to make payment under the terms of this Guaranty shall not be impaired,
  modified, changed, released or limited in any manner by any impairment,
  modification, change, release, defense or limitation of the liability of
  Borrower or of a receiver, trustee, debtor in possession or estate under any
  bankruptcy, receivership or insolvency proceeding. If any payment made by
  Borrower is reclaimed in a bankruptcy or receivership proceeding, Guarantor
  shall, subject to the limitations of paragraph 1 above, pay to Lender the
  dollar amount of the amount reclaimed. Guarantor hereby assigns to Lender all
  rights Guarantor may have in any proceeding involving Borrower under any
  federal bankruptcy act or state receivership proceedings, whether or not such
  rights relate to this Guaranty. Such assignment shall not diminish, alter or
  otherwise affect Guarantor’s liability under this Guaranty. -4-

  

 

	
  

  	
  6. Guarantor’s
  Duty To Keep Informed Of Borrower’s And Others’ Financial Condition.
  Guarantor is now adequately informed of Borrower’s financial condition.
  Guarantor has established adequate means of obtaining, and will obtain from
  Borrower in the future, all financial and other information regarding
  Borrower, any other guarantor, any other person and the Loan as is deemed
  appropriate by Guarantor. Lender shall have no obligation, now or in the
  future, to provide any such information to Guarantor. 7. Survival of Certain
  Indemnities and Obligations. Guarantor acknowledges that, to the extent
  permitted by law, certain obligations of Borrower under the Loan Documents,
  including without limitation indemnity obligations relating to hazardous
  substances, shall survive payment of the Indebtedness and foreclosure of
  Collateral. Guarantor covenants and agrees that, to the extent permitted by
  law and subject to the limitations of paragraph 1 above, Guarantor’s guaranty
  of such obligations of Borrower shall also survive payment of the
  Indebtedness and foreclosure of Collateral. 8. Waiver Of Right Of
  Subrogation. Until the Indebtedness shall have been paid and performed in
  full, Guarantor shall have no right of subrogation, and Guarantor waives any
  right to enforce any remedy which Lender now has or may hereafter have
  against Borrower, any other guarantor or any other person, and waives any
  benefit of, and any right to participate in, any of the Collateral. 9.
  Subordination Of Debt. Any debt of Borrower now or hereafter held by
  Guarantor is hereby subordinated to the Indebtedness, and such debt, if
  Lender so requests, shall be collected, enforced and received by Guarantor as
  trustee for Lender and be paid over to Lender on account of the Indebtedness,
  but without reduction or affecting in any manner the liability of Guarantor
  under the other provisions of this Guaranty. 10. Collection Expenses.
  Guarantor agrees to reimburse Lender on demand for all reasonable legal fees
  and other costs and expenses incurred by Lender in collecting, enforcing or
  defending this Guaranty, together with interest thereon from date of disbursement
  at the default rate of interest stated in the Note. Such fees, costs and
  expenses shall include those incurred with or without suit and those incurred
  at or in preparation for any trial, appeal or review, or in any proceedings
  under any present or future federal bankruptcy act or state receivership law
  and any post-judgment collection proceedings. 11. Payment Of Loan: Effect Of
  Bankruptcy. Except as otherwise provided in paragraphs 3 and 7 above, this
  Guaranty shall terminate upon payment and performance in full of the
  Indebtedness; provided, however, that, subject to the limitations of
  paragraph 1 above, it shall be automatically reinstated if any payment is
  reclaimed in a bankruptcy or receivership proceeding, until Guarantor pays
  Lender the amount reclaimed or the amount is otherwise paid to Lender and is
  not subject to further reclamation. 12. Financial Statements: Credit Reports.
  Guarantor will furnish to Lender, within twenty (20) days after Lender’s
  request therefor, a complete and current financial statement, in reasonable
  detail and certified as correct by Guarantor. Guarantor hereby irrevocably
  authorizes Lender to obtain credit reports on Guarantor on one or more
  occasions during the term of the Loan. 13. Binding Effect. This Guaranty
  shall be binding upon and enforceable against Guarantor, Guarantor’s legal
  representatives, successors and assigns, and shall inure to the benefit of
  and may be enforced by Lender and Lender’s successors and assigns. 14.
  Assignment. Lender may assign the Loan Documents and this Guaranty, or any of
  them, in whole or in part, and may grant participations therein, without
  notice to Guarantor and without affecting Guarantor’s liability under this
  Guaranty. 15. Construction. Unless some other meaning and intent is apparent
  from the context, the plural shall include the singular and vice versa, and
  masculine, feminine and neuter words shall be used interchangeably. 16.
  Governing Law: Jurisdiction. This Guaranty shall be governed by and construed
  according to the laws of the State of New York. Guarantor consents to the
  jurisdiction of the courts of the State of New York. -5-

  

 

	
  

  	
  17. Joint And
  Several Liability; Independent Obligations. The obligations under this
  Guaranty of all persons included within the term “Guarantor” are joint and
  several. The obligations of each Guarantor are independent of those of
  Borrower, any other guarantor and any other person, and a separate action or
  actions may be brought and prosecuted against Guarantor, or any of them,
  whether action is brought against any other Guarantor, Borrower or any other
  person. 18. Entire Agreement: Modifications. This agreement constitutes the
  entire understanding between Lender and Guarantor and no course of prior
  dealing between the parties, no usage of trade, and no parol or extrinsic
  evidence of any nature shall be used to supplement or modify the terms of
  this Guaranty. This Guaranty may be changed, modified or supplemented only
  through a writing signed by Guarantor and Lender. 19. Invalid Provisions. If
  any provision of this Guaranty is invalid, illegal or unenforceable, such
  provision shall be considered severed from the rest of this Guaranty and the
  remaining provisions shall continue in full force and effect as if the
  invalid provision had not been included. 20. Seal And Effective Date. This
  Guaranty is an instrument executed under seal and is to be considered
  effective and enforceable as of the date set forth on the first page hereof,
  independent of the date of actual execution. IN WITNESS WHEREOF, Guarantor hereby
  executes this Guaranty as of the day and year first above written. GUARANTOR:
  GTJ REALTY, LP, a Delaware limited partnership By: GTJ GP, LLC, a Maryland
  limited liability company, General Partner By: GTJ REIT, Inc., a Maryland
  corporation, Manager By: /s/ Louis Sheinker Name: Louis Sheinker Title:
  President -6-

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