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
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A.
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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”).
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B.
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Landlord and Tenant desire to
allocate risks associated with certain liabilities, potential
liabilities and responsibilities regarding the environmental
condition of certain of the Properties.
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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.
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1.
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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.
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a.
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“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.
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SECTION II. LANDLORD’S
REPRESENTATIONS AND WARRANTIES.
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1.
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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
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(iii) those Service Station
Properties and Petroleum Terminal Properties set forth in the July
31, 2000 Project Summary Binders:
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a.
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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.
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b.
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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.
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c.
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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.
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d.
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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.
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e.
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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.
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SECTION III. PETROLEUM TERMINAL
PROPERTIES.
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1.
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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
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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:
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a.
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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 i
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