# EDGAR Filing Document

**Accession Number:** 0002026053
**File Stem:** 0001140361-26-008560
**Filing Date:** 2026-3
**Character Count:** 3610524
**Document Hash:** 79e40efb662ea0b7be91290b86e20069
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001140361-26-008560.hdr.sgml**: 20260310

**ACCESSION NUMBER**: 0001140361-26-008560

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 60

**FILED AS OF DATE**: 20260310

**DATE AS OF CHANGE**: 20260310

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PERSHING SQUARE HOLDCO, L.P.
- **CENTRAL INDEX KEY:** 0002026053
- **STANDARD INDUSTRIAL CLASSIFICATION:** INVESTMENT ADVICE [6282]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 992840341
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-294165
- **FILM NUMBER:** 26737081

**BUSINESS ADDRESS:**
- **STREET 1:** 787 ELEVENTH AVENUE
- **STREET 2:** 9TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019
- **BUSINESS PHONE:** 212-813-3700

**MAIL ADDRESS:**
- **STREET 1:** 787 ELEVENTH AVENUE
- **STREET 2:** 9TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019

#### **TABLE OF CONTENTS**

#### As filed with the Securities and Exchange Commission on March 10, 2026.

#### Registration No. 333-

### UNITED STATES <br>

### SECURITIES AND EXCHANGE COMMISSION <br>

#### Washington, D.C. 20549

### FORM S-1 <br>

#### REGISTRATION STATEMENT <br>

#### UNDER <br>

#### THE SECURITIES ACT OF 1933

## Pershing Square Holdco, L.P. <br>

#### to be converted as described herein to a corporation named

## Pershing Square Inc.<br>

#### (Exact Name of Registrant as Specified in its Charter)

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| | | |
|:---|:---|:---|
| **Nevada** | **6282** | **99-2840341** |
| (State or Other Jurisdiction of<br>Incorporation or Organization) | (Primary Standard Industrial <br>Classification Code Number) | (I.R.S. Employer<br>Identification No.) |

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#### 787 Eleventh Avenue <br>

#### 9th Floor <br>

#### New York, New York 10019 <br>

#### Telephone: (212) 813-3700 <br>

#### (Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)

#### Halit Coussin <br>

#### Pershing Square Inc. <br>

#### 787 Eleventh Avenue <br>

#### 9<sup>th</sup> Floor <br>

#### New York, New York 10019 <br>

#### Telephone: (212) 813-3700 <br>

#### (Name, address, including zip code, and telephone number, including area code, of agent for service)

#### Copies to:

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| | | |
|:---|:---|:---|
| **Joshua Ford Bonnie**<br>**William R. Golden III**<br>**Aarthy S. Thamodaran**<br>**Simpson Thacher & Bartlett LLP**<br>**900 G Street, N.W.**<br>**Washington, D.C. 20001**<br>**Telephone: (202) 636-5500** | **Scott D. Miller**<br>**William G. Farrar**<br>**Ken Li**<br>**Sullivan & Cromwell LLP**<br>**125 Broad Street**<br>**New York, NY 10004**<br>(212) 558-4000 | **Kevin T. Hardy**<br>**Skadden, Arps, Slate, Meagher & Flom LLP**<br>**320 S Canal Street**<br>**Chicago, Illinois 60606**<br>**Michael J. Schwartz**<br>**Skadden, Arps, Slate, Meagher & Flom LLP**<br>**One Manhattan West**<br>**New York, New York 10001** |

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Approximate date of commencement of the proposed sale of the securities to the public: **As soon as practicable after the Registration Statement is declared effective.**

If any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☐

If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐  |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐  |
|  |  | Emerging growth company | ☒ |

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.** 

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#### **TABLE OF CONTENTS**

#### EXPLANATORY NOTE
Pershing Square Holdco, L.P., the registrant whose name appears on the cover of this registration statement on Form S-1 (this "Registration Statement"), is a Delaware limited partnership. Prior to the effectiveness of each of this Registration Statement and the PSUS Registration Statement (as defined below), Pershing Square Holdco, L.P. will convert into a Nevada corporation pursuant to a statutory conversion and change its name to Pershing Square Inc. This conversion is referred to throughout the prospectus included in this Registration Statement as the "Corporate Conversion." Except as disclosed in the prospectus included in this Registration Statement, the historical consolidated financial statements and summary historical consolidated financial information and other financial information included in this Registration Statement are those of Pershing Square Holdco, L.P. or its predecessor Pershing Square Capital Management, L.P., as described in the section captioned "Financial Statement Presentation" in the prospectus included in this Registration Statement, and do not give effect to the Corporate Conversion. Shares of the common stock of Pershing Square Inc. are being offered by the prospectus included in this Registration Statement.

This initial public offering of common stock of Pershing Square Inc. ("this offering"), together with the initial public offering (the "PSUS IPO") of common shares of beneficial interest (the "PSUS Shares" and each, a "PSUS Share") of Pershing Square USA, Ltd. ("PSUS"), a Delaware statutory trust, as contemplated by the registration statement on Form N-2 (File Nos. 333- and 811-23932) (the "PSUS Registration Statement"), are component parts of a single offering, which we refer to as the "combined offering." PSUS is a non-diversified, closed-end investment company that is registered under the Investment Company Act of 1940, as amended. Our wholly owned subsidiary, Pershing Square Capital Management, L.P., serves as the investment manager of PSUS. The PSUS Shares are being offered at a public offering price of $50.00 per share. We currently expect to deliver to each initial investor in the PSUS IPO, for no additional consideration, 20 shares of our common stock for every 100 PSUS Shares purchased in the PSUS IPO, including any PSUS Shares acquired by the underwriters in the PSUS IPO in connection with the exercise of their option to purchase additional PSUS Shares, as described in the prospectus of PSUS. Each investor in the PSUS IPO will be delivered the prospectus of PSUS and the prospectus of Pershing Square Inc.

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#### **TABLE OF CONTENTS**

**The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.SUBJECT TO COMPLETION** 

<br> #### PRELIMINARY PROSPECTUS, DATED MARCH 10, 2026
![](logo_pershingsquareinc.jpg)<br>

### Pershing Square Inc.

### Common Stock

### (par value $0.001)
This prospectus is being provided to you along with the separate prospectus ("PSUS Prospectus") of Pershing Square USA, Ltd. ("PSUS") related to the proposed distribution (together with related transactions, the "PSUS IPO") of common shares of beneficial interest of PSUS (the "PSUS Shares" and each, a "PSUS Share") at a public offering price of $50.00 per share. This offering and the PSUS IPO are component parts of a single offering, which we refer to as the "combined offering." PSUS is a non-diversified, closed-end investment company that is registered under the Investment Company Act of 1940, as amended (the "1940 Act"). Our wholly owned subsidiary, Pershing Square Capital Management, L.P., serves as the investment manager of PSUS.

We are issuing our shares in this offering only to the initial investors in the PSUS IPO. We currently expect to deliver to each initial investor in the PSUS IPO, for no additional consideration, 20 shares of our common stock for every 100 PSUS Shares purchased in the PSUS IPO, including any PSUS Shares acquired by the underwriters in connection with the exercise of their option to purchase additional PSUS Shares, as described in the accompanying PSUS Prospectus. The combined offering will not result in any proceeds to us.

Prior to the combined offering, there has been no public market for our common stock. We have applied to list our shares of common stock on the New York Stock Exchange (the "NYSE") under the trading symbol "PS" concurrently with the listing on the NYSE of the PSUS Shares in connection with the PSUS IPO. Shares of our common stock and the PSUS Shares will each trade separately on the NYSE, and investors may freely sell each security separately.

PSUS has secured $2.8 billion in commitments (which includes the $100 million common shares investment we have agreed to make) from a number of qualified investors (the "private placement investors") consisting of U.S. and international institutional investors, including family offices (30%), pension funds (25%), insurance companies (22%), ultra-high-net-worth investors (12%) and other investors (11%), that have agreed to acquire an aggregate of 55.6 million PSUS Shares at a price of $50.00 per share in a private placement transaction (the "PSUS Private Placement") exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). We will deliver to each private placement investor, for no additional consideration, 30 shares of our common stock for every 100 PSUS Shares purchased in the PSUS Private Placement, for an aggregate of 16.7 million shares of our common stock, in a private placement transaction exempt from registration under the Securities Act (the "PS Private Placement" and together with the PSUS Private Placement, the "combined private placement"). We refer to the combined private placement and the combined offering together as the "combined transaction." The agreements with the private placement investors provide that the combined private placement will be settled concurrently with, and will be contingent upon, the closing of the combined offering and the satisfaction of other customary closing conditions. PSUS currently expects to raise between $5 billion and $10 billion in the combined transaction, consisting of the $2.8 billion in the PSUS Private Placement and between $2.2 billion and $7.2 billion, respectively, in the PSUS IPO. See "Unaudited Pro Forma Consolidated Financial Information."

Upon completion of the combined transaction, certain members of our senior management will initially own, directly or indirectly, % of the outstanding shares of our common stock (or % if the underwriters in the PSUS IPO exercise in full their option to purchase additional PSUS Shares as described in the accompanying PSUS Prospectus). PS Holdco GP Managing Member, LLC ("ManagementCo"), an entity managed by these members of our senior management, will have voting power over some or all of these shares, and as a result, will initially have voting power over % of our outstanding common stock (or % if the underwriters in the PSUS IPO exercise in full their option to purchase additional PSUS Shares). As a result, upon completion of the combined transaction, we will be a "controlled company" within the meaning of the corporate governance standards of the NYSE. See "Summary—Implications of Being a Controlled Company."

In addition, we have implemented a special voting arrangement that would have no impact for so long as ManagementCo continues to have the power to vote a majority of our common stock, but, in the event this were no longer the case, would protect our firm from change of control events, such as the risk that changes in the ownership of our voting securities could be deemed to have resulted in an "assignment" of our investment management agreements under the 1940 Act or the Investment Advisers Act of 1940, as amended, or a "change of control" under the indentures governing the senior notes of Pershing Square Holdings, Ltd. More specifically, ManagementCo will hold a Special Voting Share (as defined herein) that has no economic rights and has voting power (which shall in no event be less than one vote) equal to that number of votes required, when taken together with the aggregate voting power of the shares of our common stock over which ManagementCo then has voting power, to give ManagementCo a majority of the aggregate voting power of the Special Voting Share and the then-outstanding shares of our common stock. See "Description of Capital Stock—Preferred Stock—Special Voting Share." Because the shares of our common stock over which ManagementCo will initially have voting power will provide it with in excess of a simple majority of the voting power of the outstanding shares of our common stock, the Special Voting Share will initially provide only a single additional vote to ManagementCo.

We are an "emerging growth company" as defined under the federal securities laws and, as such, may elect to comply with certain reduced public company reporting requirements. See "Summary—Implications of Being an Emerging Growth Company."

#### In reviewing this prospectus, you should carefully consider the matters described in the section titled "Risk Factors" beginning on page 30 of this prospectus.

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| | | |
|:---|:---|:---|
|  | **Per Share** | **Total** |
| Initial public offering price<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;$0  | &nbsp;&nbsp;$0 |
| &nbsp;&nbsp;Underwriting discounts and commissions<sup>(2)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;$0 | &nbsp;&nbsp;$0 |
| Proceeds, before expenses, to Pershing Square Inc.<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;$0 | &nbsp;&nbsp;$0 |

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(1)<br> The shares of our common stock in this offering are being issued only to the initial investors in the PSUS IPO for no additional consideration.

(2) The underwriters for this offering and the offering of PSUS Shares in the PSUS IPO will be the same. The underwriters will receive no discounts or commissions in connection with this offering. In connection with the PSUS IPO, the underwriters will receive a commission and be reimbursed for certain out-of-pocket expenses and certain underwriters will also receive structuring fees. Please see the section titled "Underwriting" in the accompanying PSUS Prospectus and in this prospectus for a description of arrangements with the underwriters. 

The underwriters expect to deliver the shares of our common stock to the initial investors in the PSUS IPO in New York, New York on or about , .

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| | | | | |
|:---|:---|:---|:---|:---|
| **Citigroup** | **UBS Investment** <br>**Bank** | **BofA** <br>**Securities** | **Jefferies** | **Wells Fargo** <br>**Securities** |

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The date of this prospectus is , 2026

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#### **TABLE OF CONTENTS**
**TABLE OF CONTENTS**

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| | |
|:---|:---|
| [Summary](#tSUM) | &nbsp;&nbsp;&nbsp;[1](#tSUM) |
| [Risk Factors](#tRF) | &nbsp;&nbsp;[30](#tRF) |
| [Forward-Looking Statements](#tFLS) | &nbsp;&nbsp;[61](#tFLS) |
| [Market and Industry Data](#tMAR) | &nbsp;&nbsp;[61](#tMAR) |
| [Trademarks, Service Marks and Trade Names](#tTRA) | &nbsp;&nbsp;[61](#tTRA) |
| &nbsp;&nbsp;[Use of Proceeds](#tUSE) | &nbsp;&nbsp;[62](#tUSE) |
| [Dividend Policy](#tDIV) | &nbsp;&nbsp;[63](#tDIV) |
| [Capitalization](#tCAP) | &nbsp;&nbsp;[64](#tCAP) |
| [Unaudited Pro Forma Consolidated Financial Information](#tUPF) | &nbsp;&nbsp;[65](#tUPF) |
| [Management's Discussion and Analysis of Financial Condition and Results of Operations](#tMDA) | &nbsp;&nbsp;[74](#tMDA) |
| [Business](#tBUS) | [101](#tBUS) |
| [Management](#tMAN) | [134](#tMAN) |

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|:---|:---|
| [Executive Compensation](#tEC) | [140](#tEC) |
| [Director Compensation](#tDC) | [148](#tDC) |
| [Certain Relationships and Related Person Transactions](#tCER) | [149](#tCER) |
| &nbsp;&nbsp;[Principal Stockholders](#tPS) | [153](#tPS) |
| &nbsp;&nbsp;[Description of Capital Stock](#tDES) | [155](#tDES) |
| [Certain U.S. Federal Income Tax Consequences](#tCUF) | [164](#tCUF) |
| &nbsp;&nbsp;[Shares Eligible for Future Sale](#tSE) | [168](#tSE) |
| [Underwriting](#tUNW) | [170](#tUNW) |
| &nbsp;&nbsp;[Legal Matters](#tLM) | [184](#tLM) |
| [Experts](#tEX) | [184](#tEX) |
| [Where You Can Find More Information](#tWYC) | [184](#tWYC) |
| &nbsp;&nbsp;[Index to Financial Statements](#tFS) | [F-1](#tFS) |

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**Neither we nor the underwriters have authorized anyone to provide any information other than that contained in this prospectus, any amendment or supplement to this prospectus or in any free writing prospectuses we have prepared. We and the underwriters take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. We and the underwriters are offering shares of our common stock only in jurisdictions where offers are permitted. The information in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or any delivery of shares of our common stock. Our business, financial condition, results of operations, and prospects may have changed since that date.** 

Through and including , 2026 (the 25th day after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter.

For investors outside the United States: Neither we nor the underwriters have done anything that would permit our initial public offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the shares of our common stock and the distribution of this prospectus outside of the United States.

#### Financial Statement Presentation
Except as disclosed in the prospectus, the historical consolidated financial statements and summary historical consolidated financial information and other financial information included in this registration statement are those of Pershing Square Holdco, L.P. or its predecessor, Pershing Square Capital Management, L.P. ("PSCM"), and do not give effect to the Corporate Conversion and the other transactions described in "Summary—Reorganization Transactions." See "Summary—Reorganization Transactions" and "Unaudited Pro Forma Consolidated Financial Information" for more information.

Certain amounts, percentages, and other figures included in this prospectus have been subject to rounding adjustments. Percentage amounts included in this prospectus have been calculated, in some cases, not on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this prospectus may vary from those obtained by performing the same calculations using the figures on the face of our consolidated financial statements included elsewhere in this prospectus. Certain other amounts that appear in this prospectus may not sum due to rounding.

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#### **TABLE OF CONTENTS**

#### Certain Definitions
As used in this prospectus, "Pershing Square," the "Company," "our company," "we," "us" and "our" refer (i) prior to the consummation on May 31, 2024 of the transaction pursuant to which a consortium of strategic investors (the "Strategic Investors") acquired minority interests in our business (the "Strategic Investment"), to PSCM, a Delaware limited partnership, and its consolidated subsidiaries, (ii) after the Strategic Investment but prior to the consummation of the Corporate Conversion, described under "Summary—Reorganization Transactions," to Pershing Square Holdco, L.P. and its consolidated subsidiaries and (iii) following the Corporate Conversion and the combined offering, to Pershing Square Inc. and its consolidated subsidiaries, including PSCM. In addition, unless otherwise noted or the context requires otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;• "assets under management" or "AUM" means, with respect to our core funds and PSVII, the net assets of our core funds and PSVII as calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") or International Financial Reporting Standards ("IFRS"), as applicable, while adding back the principal value of PSH's outstanding bonds without double counting the investment made by any of our funds in PSVII. Assets under management or AUM means, with respect to HHH, the market capitalization of HHH plus its net mortgages, notes, and loans payable as disclosed in its most recent publicly available filing;

&nbsp;&nbsp;&nbsp;&nbsp;• "combined offering" refers collectively to this initial public offering of shares of our common stock together with the initial public offering of PSUS Shares;

&nbsp;&nbsp;&nbsp;&nbsp;• "combined private placement" refers collectively to the offer and sale of PSUS Shares in a private placement transaction exempt from registration under the Securities Act and the offer and sale of shares of our common stock in a private placement transaction exempt from registration under the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;• "combined transaction" refers collectively to the combined offering and the combined private placement;

&nbsp;&nbsp;&nbsp;&nbsp;• "core funds" or "funds" refers collectively to PSLP, PSINTL, PSH and, following the combined offering, PSUS;

&nbsp;&nbsp;&nbsp;&nbsp;• "Howard Hughes Transaction" or "HHH Transaction" refers collectively to the transactions contemplated by the Share Purchase Agreement, dated May 5, 2025, by and between HHH and Pershing Square Holdco, L.P., and related agreements, including (i) the HHH Services Agreement pursuant to which HHH will pay PSCM certain fees in consideration of the investment advisory and other services we provide to HHH, (ii) the Shareholder Agreement, dated May 5, 2025, by and between HHH, Pershing Square Holdco, L.P. and PSCM, (iii) the Standstill Agreement, dated May 5, 2025, by and between HHH and Pershing Square Holdco, L.P. and (iv) the Registration Rights Agreement, dated May 5, 2025, by and between the HHH, Pershing Square Holdco, L.P., Pershing Square, L.P., Pershing Square Holdings, Ltd. and Pershing Square International, Ltd.;

&nbsp;&nbsp;&nbsp;&nbsp;• "fee-paying assets under management" or "Fee-Paying AUM" means, with respect to our core funds and PSVII, the AUM we manage and earn a performance fee and/or management fee from. Fee-paying assets under management or Fee-Paying AUM means, with respect to HHH, the market capitalization of HHH;

&nbsp;&nbsp;&nbsp;&nbsp;• "Founder" refers to William A. Ackman, our Founder and Chief Executive Officer and Chairman of our board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;• "HHH" refers to Howard Hughes Holdings Inc., a Delaware corporation (NYSE: HHH);

&nbsp;&nbsp;&nbsp;&nbsp;• "HHH Services Agreement" refers to the Services Agreement, dated May 5, 2025, by and between HHH and PSCM, attached hereto as Exhibit 10.18;

&nbsp;&nbsp;&nbsp;&nbsp;• "ManagementCo" refers to PS Holdco GP Managing Member, LLC, an entity managed by members of our senior management;

&nbsp;&nbsp;&nbsp;&nbsp;• "Net Asset Value" or "NAV," means, with respect to PSH, net assets, calculated as total assets less total liabilities, in accordance with IFRS. Net Asset Value or NAV, with respect to PSLP and PSINTL, means the net assets of each such fund, calculated as total assets less total liabilities (including any

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#### **TABLE OF CONTENTS**
accrued performance fee or incentive allocation) and, with respect to PSUS, means its net assets, calculated as securities, cash and other assets (including interest accrued but not collected) less all liabilities (including accrued expenses, the liquidation preference of any outstanding preferred shares and dividends payable), in each case, in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;• our "other investment vehicles" refers to PSVII, for periods prior to its liquidation on December 31, 2024, and other co-investment vehicles which we may sponsor from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;• "permanent capital" means capital that is not subject to withdrawal or redemption at the option of the fund investor or stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;• "permanent capital AUM" refers to the portion of Fee-Paying AUM that is not subject to withdrawal or redemption at the option of the fund investor or stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;• our "pre-IPO management owners" refers to our pre-IPO owners excluding the Strategic Investors;

&nbsp;&nbsp;&nbsp;&nbsp;• our "pre-IPO owners" refers to the stockholders of Pershing Square Inc. immediately following the Corporate Conversion but prior to the combined offering;

&nbsp;&nbsp;&nbsp;&nbsp;• our "private funds" refers to PSINTL and PSLP;

&nbsp;&nbsp;&nbsp;&nbsp;• "PSGP" refers to Pershing Square GP, LLC, a Delaware limited liability company, which is the general partner of PSLP;

&nbsp;&nbsp;&nbsp;&nbsp;• "PSH" refers to Pershing Square Holdings, Ltd., a Guernsey limited liability company, which commenced investing on December 31, 2012 and has its shares admitted to trading on the London Stock Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;• "PSINTL" refers to Pershing Square International, Ltd., a Cayman Islands exempted company, which commenced investing in January 2005;

&nbsp;&nbsp;&nbsp;&nbsp;• "PSLP" refers to Pershing Square, L.P., a private investment fund organized as a Delaware limited partnership, which commenced investing in January 2004;

&nbsp;&nbsp;&nbsp;&nbsp;• "PSUS" refers to Pershing Square USA, Ltd., a Delaware statutory trust, which has filed the registration statement on Form N-2 (File Nos. 333-   and 811-23932) relating to the initial public offering of the PSUS Shares with the Securities and Exchange Commission;

&nbsp;&nbsp;&nbsp;&nbsp;• "PSUS Prospectus" refers to the prospectus filed by PSUS related to the proposed distribution of its common shares of beneficial interest;

&nbsp;&nbsp;&nbsp;&nbsp;• "PSVII" refers to PS VII Master, L.P. and its affiliated funds;

&nbsp;&nbsp;&nbsp;&nbsp;• "Vantage" refers to Vantage Group Holdings Ltd., a privately held specialty insurance and reinsurance holding company; and

&nbsp;&nbsp;&nbsp;&nbsp;• "Vantage Acquisition" refers to the proposed acquisition by HHH of Vantage, as agreed to on December 17, 2025 and expected to close in the second quarter of 2026, subject to customary regulatory approvals and closing conditions.

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#### Questions And Answers About This Offering
*The following questions and answers briefly address some questions you may have about this offering. They do not include all the information that may be important to you. We encourage you to read carefully this entire prospectus.* 

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| ***Q:***<br>| ***Will I be able to participate in this offering if I do not participate in the PSUS IPO?*** |

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| A:<br>| No. This offering and the PSUS IPO are component parts of a single offering, which we refer to as the "combined offering." We are issuing our shares in this offering only to the initial investors in the PSUS IPO. We currently expect to deliver to each initial investor in the PSUS IPO, for no additional consideration, 20 shares of our common stock for every 100 PSUS Shares purchased in the PSUS IPO. If you elect to purchase PSUS Shares in the PSUS IPO, you are not required to take any action in order to participate in and receive shares of our common stock in this offering.  |

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| ***Q:***<br>| ***Will Pershing Square Inc. receive any proceeds from the combined transaction?*** |

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| A:<br>| No. We are issuing shares of our common stock to the initial investors in the PSUS IPO for no additional consideration, and we will not receive any proceeds from the PSUS IPO. Accordingly, the combined offering will not result in any proceeds to us. See the accompanying PSUS Prospectus for more information on the use of the net proceeds from the PSUS IPO by PSUS. Similarly, we will issue shares of our common stock to the private placement investors for no additional consideration, and we will not receive any proceeds from the PSUS Private Placement. Accordingly, the combined private placement also will not result in any proceeds to us. |

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| ***Q:***<br>| ***What are the reasons for this offering?*** |

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| A:<br>| The purpose of this offering is to give investors in PSUS an interest in Pershing Square Inc. at no additional cost in recognition of the importance of the PSUS IPO to our long-term success and to provide an additional incentive for prospective investors to purchase PSUS Shares in the PSUS IPO. Although the combined offering will not result in any proceeds to us, we expect to benefit from a successful PSUS IPO, which we anticipate will result in a material expansion of our fee-paying permanent capital AUM and revenue. |

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In addition, the combined offering will result in Pershing Square Inc. becoming publicly traded, which we believe will enhance our access to capital for our growth initiatives and our ability to attract and retain investment professionals and other employees.

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| ***Q:***<br>| ***When will shares of common stock in Pershing Square Inc. begin trading on the NYSE?*** |

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| A:<br>| We have applied to list our shares of common stock on the NYSE under the trading symbol "PS" concurrently with the listing on the NYSE of the PSUS Shares in connection with the PSUS IPO. We anticipate that separate trading on the NYSE of each security will begin on the first trading day following the pricing of the PSUS IPO. Investors who purchase PSUS Shares in the PSUS IPO and receive shares of our common stock in the combined offering may freely sell each security separately on the NYSE once trading begins. See "Risk Factors—Risks Related to the Combined Offering and Ownership of Our Common Stock—*No public market for our common stock currently exists, and an active trading market for our common stock may never develop or be sustained after the combined offering. Following the combined offering, our stock price may fluctuate significantly.*"  |

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#### SUMMARY
*This summary highlights information contained elsewhere in this prospectus and does not contain all of the information you should consider before investing in shares of our common stock. You should read this entire prospectus carefully, including the section titled "Risk Factors" and the financial statements and the related notes thereto included elsewhere in this prospectus before you decide to invest in shares of our common stock.* 

#### Who We Are
We are an alternative asset management company that manages pools of permanent capital invested in long-term, high-return investment strategies. Our growth is principally driven by the long-term compounding of our assets under management and the opportunistic launch of new permanent capital vehicles that enable us to pursue new investment verticals or to pursue our core investment strategies in new jurisdictions.

***Durable Permanent Capital Base. Nearly all of our assets under management consist of permanent capital—assets that are not subject to withdrawal or redemption at the option of the fund investor or shareholder. The permanency of our capital is due to durable contractual arrangements. Our growth is largely organic, driven by the long-term compound annual returns of our permanent capital vehicles and the retention and reinvestment of our assets, rather than by continual fundraising and the launch of an ever-increasing number of new products and strategies. In contrast to other private equity alternative asset managers who must raise increasingly larger funds in order to replace liquidated funds and to grow their fee-paying assets, our Fee-Paying AUM growth is largely driven by our long-term investment returns. Even if one were to ignore the potential additions to our growth from the future launch of new investment vehicles, we believe that our existing permanent capital funds and vehicles, which will include PSUS following the combined offering, will enable us to achieve high, long-term, compound rates of growth in Fee-Paying AUM, revenues, and profits driven by our long-term investment returns and asset retention. Our strategy of organic growth via the compounding and retention of our assets is less sensitive to the market for raising capital and does not require the organizational complexity and expense of a large fundraising operation. While new fund launches can lead to step-change 'overnight' increases in our Fee-Paying AUM, we believe that they are not required for us to generate highly attractive long-term returns for shareholders.***

***Simple, Lean, High-Margin Business Model. We pursue a unified investment strategy across our investment vehicles that leverages the core competencies of a limited number of investment professionals, resulting in a highly scalable and profitable operating model. We believe our systems, investment team, and other organizational resources are capable of managing an asset base many times larger than our current AUM.***

***Predictable and Recurring Fee-Related Earnings. We benefit from predictable and recurring revenues primarily consisting of management fees, which, in the case of our core funds, are typically equal to 1.5% of net asset value per annum paid quarterly, and a senior claim on performance fees, which are paid annually as long as our funds have generated a positive return above a previous year's high-water mark. Unlike private equity fund managers whose incentive fees are earned only when the manager generates realized gains in excess of an annual preferred return (typically 8%), our performance fees are paid annually as long as the mark-to-market net asset value of a fund at year-end increases above its high-water mark, whether these gains are realized or unrealized, and without the requirement for a fund to achieve a preferred return.***

Unlike other publicly traded alternative asset managers that receive a pro rata share of the performance fees paid by their funds with the balance paid to compensate employees, Pershing Square Inc. retains a preferred interest in performance fees—generally, the annual performance fees from each fund earned on the first five percentage points of return net of the management fee, which we refer to as "Preferred Performance Fees"—and pays the balance of performance fees, which we refer to as the "Subordinated Performance Fees," to CompCo (as defined below), an entity that compensates its members (including our investment professionals and certain other employees). Pershing Square Inc. retains a senior claim on the Preferred Performance Fees, a claim which accrues to a subsequent year or years in the event it is not fully paid in any one year. This arrangement increases the certainty and predictability to Pershing Square Inc. of performance-related revenue because as long as the Pershing Square funds can achieve a 5% annual compound return net of their management fees over the long-term, the Preferred Performance Fees will be fully paid.

***Long-Tenured and Highly Aligned Investment Team. We believe we have been able to attract and retain some of the best industry talent in the investment management business. We believe that the highly attractive***

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economics of our business—with one of the largest amounts of invested capital per employee in the industry—along with our unique permanent capital base and family-oriented collaborative culture make us a highly desirable place to work. We believe that our approach to employee compensation, together with the significant levels of employee investment in our funds, creates a high degree of alignment between our team and our investors.

***Governance and C-Corporation Structure. We have designed the governance arrangements of Pershing Square Inc. to foster alignment between our management and our public investors. Despite the fact that the substantial majority of our stock is held by our management, our board is comprised of a majority of independent directors, our board committees are comprised of independent directors, and we have committed to operate with best-in-class governance principles that are not required for controlled companies. Furthermore, both our management and public shareholders will own common stock of our publicly traded corporation in contrast to the two-tiered, "UP-C" ownership structures frequently employed by other publicly traded alternative investment managers, in which differences in the ownership interests held by management and public investors and complicated tax receivable agreements can create misaligned incentives.***

***Brand and Reputation. Since our founding more than 22 years ago, we have established a strong track record of outperforming the market and have built substantial reputational equity due to our history of constructive engagements with portfolio company leadership teams, board of directors, and retail and institutional shareholders. We believe we have also earned a reputation for being a good partner to our fund investors even if such actions come at a cost to us and are not contractually required. We believe our brand and reputation have enabled us to launch new funds and investment vehicles and raise capital to pursue new opportunities.***

We believe this combined offering, which coincides with two milestone transactions that we believe are transformational for our business, represents an attractive entry point for new owners of Pershing Square. Upon completion of the combined offering, PSUS will be our first permanent capital vehicle marketed to U.S. investors and represents a material expansion of our permanent capital AUM.

On May 5, 2025, we completed the Howard Hughes Transaction in which we acquired 15% of the shares outstanding of Howard Hughes Holdings Inc. ("HHH") (for a total interest in HHH of 47% including shares held by our core funds), which we expect will further drive our long-term growth. We intend to transform HHH, a long-term holding of our core funds, into a diversified holding company. On December 17, 2025, HHH entered into an agreement to acquire Vantage Group Holdings, Ltd. ("Vantage" and such acquisition, the "Vantage Acquisition"), a privately held specialty insurance and reinsurance holding company, for approximately $2.1 billion in cash. In connection with the Vantage Acquisition, it is expected that PSCM will be engaged as investment manager for Vantage and its insurance company subsidiaries.

The Vantage Acquisition is expected to close in the second quarter of 2026, subject to customary regulatory approvals and closing conditions. We believe that the Vantage Acquisition will anchor HHH's transformation into a diversified holding company by combining our investment capabilities with Vantage management's insurance expertise and operations, enabling HHH to build and grow a profitable insurance company, which has the potential to serve as an important source of long-term value creation for HHH and our shareholders. HHH has also announced that, over time, it intends to acquire controlling ownership of high-quality, durable growth public and private operating companies, while continuing to invest in and grow its master planned communities ("MPC") real estate business.

\* \* \*

Pershing Square is a leading alternative asset manager with approximately $30.7 billion in total assets under management ("AUM") and approximately $20.7 billion in fee-paying assets under management ("Fee-Paying AUM"), of which 96% is permanent capital, as of December 31, 2025. For the year ended December 31, 2025, we generated total revenue of approximately $762.5 million and GAAP net income attributable to Pershing Square Holdco, L.P. of approximately $249.8 million.

#### Permanent Capital
We view the stability of our capital base, substantially all of which is permanent capital, as one of our most important competitive advantages. Permanent capital allows us to take a long-term view and be opportunistic during periods of market volatility, without being exposed to the need to raise capital by selling assets to meet redemptions during such periods. We expect to continue to drive significant organic AUM growth by

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implementing our investment strategy and compounding our capital at high rates of return, in contrast to other asset managers whose growth principally relies on fundraising to maintain and grow fee-paying assets.

We believe our permanent capital AUM also enables superior, long-term investment returns and produces a financial profile for our business characterized by steady, predictable and recurring management fees because our results are less sensitive to the market for raising capital. Our financial profile further benefits from performance fees, earned and paid annually, contingent only on our funds' mark-to-market appreciation above an annual high-water mark, rather than episodic and unpredictable realization events and the need to generate realized returns in excess of a preferred return or hurdle rate.

Permanent capital has been and is expected to continue to be a highly attractive talent attraction and retention tool, enabling us to hire and retain top analysts for our investment team and other high-quality employees throughout our company. Permanent capital and our long-term investment horizon are also excellent recruitment tools when our portfolio companies seek to hire experienced CEOs who prefer the stability and backing afforded by a significant long-term shareholder who is not required to seek an exit for its holdings due to investor redemptions or the necessity to exit due to their finite-lived funds.

#### Our Investment Strategy and Team
Our investment strategy has proven to be highly scalable and profitable because fewer professionals are required to manage a concentrated portfolio consisting of long-term holdings with limited trading activity. Over the last 22 years, we have developed the organizational talent and systems capable of managing an asset base many times larger than our current AUM.

We employ a disciplined, research-intensive approach to fundamental value investing to preserve and grow our permanent capital AUM at high rates of return using a set of core investment principles and opportunistic asymmetric hedges. From time to time, we may choose to complement our organic growth by selectively launching new permanent capital funds and other vehicles that leverage our brand and core competencies to create large 'overnight' (after the completion of a new offering or negotiated transaction) increases in our capital base without the requirement for significant new investment in personnel, infrastructure, and operating costs. The HHH Transaction and the combined offering are good examples of our growth strategy.

Founded in 2003, we are led by our Founder and Chief Executive Officer, William A. Ackman, who has spent 34 years in the alternative asset management industry. Mr. Ackman is supported by an experienced investment team who have an average of 15 years' experience in the industry. Our investment team is highly aligned with our portfolio companies, fund investors and our stockholders due to, among other reasons, the $5.8 billion (as of December 31, 2025) invested by our employees and their affiliates in our funds and HHH, our approach to performance compensation, and our employee ownership of our company. We are headquartered in New York City and had 44 employees as of December 31, 2025.

In our core investment strategy, we seek to acquire long-term, large minority stakes in high-quality, predominantly North American-listed, large-capitalization companies at attractive valuations. We seek investments in companies with simple, predictable, free-cash-flow generative businesses, strong financial profiles, and exceptional management and governance in industries with significant barriers to entry and limited exposure to extrinsic factors we cannot control. We look for opportunities to assist portfolio companies in accelerating growth, increasing efficiency, improving capital allocation, managing through challenges and otherwise improving performance in order to generate long-term value.

On May 5, 2025, we completed the Howard Hughes Transaction, in which we acquired 15% of the shares outstanding of HHH (for a total interest in HHH of 47% including shares held by our core funds). We provide HHH with investment advisory, corporate development, transaction execution and capital markets advisory services to support HHH's new diversified holding company strategy. In consideration of our services, HHH pays us the HHH Base Management Fee and the HHH Variable Management Fee (each as defined below). See "Business—Advisory Fees and Compensation—HHH Fees" for more information.

We complement our investment strategy by opportunistically utilizing hedges both to protect our funds' portfolios against specific macroeconomic risks and to capitalize on market volatility. We typically structure our hedges using asymmetric instruments, such as options and credit default swaps, which offer the opportunity for large gains if potential risks occur without exposing our funds to significant costs or meaningful losses if such risks do not occur. Historically, we have reinvested the profits from these asymmetric hedges in existing portfolio positions and new

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investments during periods of market disruption when valuations are generally low. Our asymmetric hedging strategy has proven to be a substantial contributor to our investment strategy's long-term performance.

#### Our Track Record
The graph below illustrates the cumulative net returns that an investor who invested in our first core fund, PSLP, at its inception on January 1, 2004 and transferred its capital account to our first core permanent capital fund, PSH, at its launch on December 31, 2012 would have received, as compared to the returns such investor would have received had it invested in the S&P 500 during the same time period.

#### Pershing Square Cumulative Net Returns vs. S&P 500 <br>

#### Since Inception Through December 31, 2025
![](ny20040230x14_linechartx1.jpg) <br>

(1) Represents the cumulative net returns assuming an investor had invested in PSLP at its inception on January 1, 2004 and converted to PSH on December 31, 2012, after performance fees, management fees and other expenses incurred by each fund. See "Business—Advisory Fees and Compensation" for a description of applicable performance fees and management fees. Illustrates the hypothetical returns of an investor assuming these dates of investment in such funds. **Actual performance returns of each investor in PSLP and/or PSH during this timeframe may have varied (in some cases, materially) and are dependent on a number of factors, including, but not limited to, the timing of an investor's investment. For example, if an investor had invested in PSLP at a later date and/or had not converted from PSLP to PSH on December 31, 2012, its respective returns might have been lower.** Illustrates the past performance of PSLP and PSH, and past returns are not indicative of future performance. **This performance information is presented in connection with the offering of our common stock and is for illustrative purposes only. It is not the performance record of PSUS and should not be considered a substitute for the performance of PSUS. There can be no assurance that any of our funds will achieve comparable or greater results in the future, or that any of our funds will be able to implement their investment strategy or achieve their investment objective.** Our funds' investments may be made under different economic conditions and may include different underlying investments in the future. Furthermore, PSLP, PSH and the other funds and accounts managed by us prior to the combined offering are not registered under the 1940 Act, unlike PSUS, and, therefore, none of them are subject to the investment restrictions, leverage and derivative restrictions, diversification requirements and other regulatory requirements imposed on registered investment companies by the 1940 Act and on regulated investment companies by the U.S. Internal Revenue Code of 1986, as amended (the "Code"). If such funds or accounts had been registered under the 1940 Act and/or operated as regulated investment companies under the Code, their respective returns might have been lower and their ability to undertake certain transactions or investments may have been restricted. See the accompanying PSUS Prospectus for additional information about PSUS and the risks associated with an investment in PSUS Shares. The historical performance information presented herein does not reflect the impact of any sales load or transaction fees.

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(2) Represents the multiple of invested capital assuming an investor had invested in PSLP at its inception on January 1, 2004 and converted to PSH on December 31, 2012 equal to the Net Asset Value, after performance fees, management fees and other expenses incurred by each fund, divided by cumulative invested capital.

(3) The S&P 500 is an unmanaged capitalization-weighted index that measures the performance of the large-capitalization segment of the U.S. market. The index includes 500 leading U.S. stocks representing all major industries. The S&P 500 does not reflect any fees, expenses or sales loads. It is not possible to invest directly in the S&P 500 index. The volatility of the S&P 500 presented may be materially different from that of the performance of our funds. In addition, the S&P 500 employs different guidelines and criteria than our funds; as a result, the holdings in our funds may differ significantly from the securities that comprise the S&P 500. The S&P 500 allows for comparison of our funds' performance with that of a well-known, appropriate and widely recognized index; the S&P 500 is not intended to be reflective or indicative of our funds' past or future performance.

(4) Represents the cumulative net returns from investing in the S&P 500 with dividend reinvestment. Illustrates the hypothetical returns of an investor assuming these dates of investment in the S&P 500. Actual performance returns of each investor in the S&P 500 during this timeframe may have varied (in some cases, materially) and are dependent on a number of factors, including, but not limited to, the timing of an investor's investment. If an investor had invested in the S&P 500 at a later date, for example, its respective returns might have been lower.

(5) Represents the multiple of invested capital from investing in the S&P 500 with dividend reinvestment equal to total fair value divided by cumulative invested capital.

(6) The three bear markets of the last 22 years were the global financial crisis in 2008; the COVID-19 pandemic in 2020; and the recent elevated interest rate environment in 2022. Our asymmetric hedging strategy has contributed to our substantial outperformance versus the S&P 500 during these bear markets.

As depicted in the chart above, the history of our firm may be thought of as comprising three distinct phases. In the first 12 years, our approach evolved from an initial period of transactional activism, in which we executed on value-creation opportunities by catalyzing corporate events, to a form of more "quiet" long-term corporate engagement as we established a reputation for helping portfolio companies create value. We went through a challenging period of underperformance from August 2015 to December 2017, after which we made a number of strategic changes, including ending active fundraising for our two open-ended private funds, Pershing Square, L.P. ("PSLP") and Pershing Square International, Ltd. ("PSINTL").

In January 2018, we began our "permanent capital era" by focusing on growing our permanent capital base through generating and compounding long-term returns and renewing our commitment to our core investment principles. On May 31, 2024, we sold a 10% interest in our business for $1.05 billion to a consortium of strategic investors (the "Strategic Investors"), which included institutions, family offices, and alternative asset management industry leaders (the "Strategic Investment"). In connection with the Strategic Investment, we completed an internal reorganization of our ownership structure pursuant to which Pershing Square Holdco, L.P. ("PS Holdco") became the parent company of PSCM. On May 5, 2025, we completed the Howard Hughes Transaction representing another milestone in our permanent capital strategy.

#### Our Funds and Investment Vehicles
We currently manage three primary investment funds, which we refer to as our existing core funds. Our fund investors include retail investors, high net worth individuals, family offices, funds of funds, and institutional investors. Our largest vehicle, Pershing Square Holdings, Ltd. ("PSH"), is a FTSE 100-listed, closed-end investment company publicly traded on the London Stock Exchange. With approximately $15.0 billion in Fee-Paying AUM, PSH accounts for approximately 73% of our total Fee-Paying AUM as of December 31, 2025. In addition, we manage two private funds, PSLP and PSINTL, with approximately $1.5 billion and $409 million in AUM, respectively, and $648 million and $225 million in Fee-Paying AUM, respectively, in each case, as of December 31, 2025. We no longer market our private funds to investors, but we keep the private funds open for employees and long-term investors of Pershing Square.

Certain of the existing investors in our private funds have agreed to redeem an aggregate of $335 million of their interests in the private funds (determined as of the time of this disclosure based on the private funds' net asset value as of February 28, 2026) and apply eligible net proceeds from such redemption to participate in the combined private placement. The final net asset value used to determine the value at which interests in the private funds will be redeemed will be determined as of a redemption date prior to the completion of the PSUS IPO, and therefore, the amount set forth above will fluctuate as a result of any subsequent changes in net asset value until such redemption date.

Our core funds each have a similar investment program and generally invest in the same assets in similar proportions, subject to regulatory, tax, liquidity and other considerations.

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#### Overview of Our Existing Core Funds, HHH and PSUS<br>

#### As of December 31, 2025 (except in the case of PSUS)
![](ny20040230x14_table01x1.jpg)<br>

(1) As of December 31, 2025, PSH's AUM includes bond proceeds of $2.3 billion and €1.15 billion (translated into USD at the prevailing exchange rate at the reporting date). As of December 31, 2025, PSH's Fee-Paying AUM does not reflect the bonds outstanding.

(2)<br> As of December 31, 2025, HHH's AUM reflects its market capitalization as of such date plus its net mortgages, notes, and loans payable as reported in its Quarterly Report on Form 10-Q for the quarter ending September 30, 2025.

\* In the case of AUM, represents the assumed aggregate offering sizes in the PSUS IPO and PSUS Private Placement, including amounts invested by us, and in the case of Fee-Paying AUM, represents the assumed aggregate offering sizes in the PSUS IPO and PSUS Private Placement, excluding amounts invested by us.

Following the combined offering, our core funds will include PSUS, which we expect to be our flagship NYSE-listed permanent capital vehicle, which will also pursue our core investment strategy and will represent a material expansion of our permanent capital AUM. As a registered and regulated investment company, PSUS will be subject to certain restrictions pursuant to the 1940 Act and the Code, including investment, leverage and derivative restrictions and diversification requirements. We do not anticipate that compliance with these restrictions will materially impede the ability of PSUS to pursue our core investment strategy. See "Risk Factors—Risks Relating to Our Funds and HHH and Our Investment Strategy—*The PSUS IPO will cause a material portion of our Fee-Paying AUM to consist of registered investment company assets."*

#### Our Management and Performance Fees
Under the terms of the investment management agreements with the funds we manage, we generate revenues from (i) predictable and recurring management fees based on Net Asset Value, which are paid on a quarterly basis and (ii) other than with respect to PSUS, we receive annual performance fees based on NAV appreciation above a high-water mark. Generally, we pay our investment professionals and certain other employees our realized performance fees in excess of an amount allocated to us in the form of a preferred entitlement that we refer to as "Preferred Performance Fees." Preferred Performance Fees are earned from the first five percentage points of fund returns, net of management fees, above the applicable high-water mark from certain core funds and subject to certain other offsettable fees. To the extent realized performance fees are insufficient to pay us some or all of the Preferred Performance Fee, the unpaid portion accrues to subsequent crystallization periods until paid in full. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Components of Our Results of Operations—Income—Performance Fees—Allocation of Performance Fee Revenue" for additional information. We believe this Preferred Performance Fee arrangement results in recurring revenue that is less volatile and more predictable than conventional performance fee arrangements employed by other alternative asset managers, while enabling us to allocate substantial performance fees to compensate, attract and retain investment professionals and certain other employees.

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Under the terms of the HHH Services Agreement, we also generate revenues from HHH, in exchange for the investment advisory and other services we provide to HHH, consisting of (i) a quarterly base fee of $3,750,000 (the "HHH Base Management Fee") and (ii) a quarterly variable fee of 0.375% of the value of the HHH stock price relative to a reference price determined in accordance with the agreement (the "HHH Variable Management Fee" and together with the HHH Base Management Fee, the "HHH Fees"), in each case, subject to annual adjustments for inflation based on the Personal Consumption Expenditures Price Index, Excluding Food and Energy, as reported by the Bureau of Economic Analysis (the "Core PCE Price Index"). See "Business—Advisory Fees and Compensation—HHH Fees" for more information.

Since our founding in 2003, we have also raised capital through seven single-name, co-investment special purpose vehicles ("SPVs") to increase economic exposure to certain investments. For example, in September 2021, we raised approximately $1.1 billion through PS VII Master, L.P. and its affiliated funds (collectively, "PSVII") for our funds' investment in Universal Music Group.

#### Our Core Investment Strategy
Our core investment strategy involves acquiring large minority stakes in high-quality, predominantly North American-listed, large-capitalization growth companies at attractive valuations during periods in which we believe they have underperformed their potential and/or when we believe they are undervalued because the market underestimates their potential or overestimates the impact of certain negative factors on their businesses. At any given time, we intend for our core funds to own a concentrated portfolio of such positions with the expectation of holding each position for the long term. We historically have not concentrated such positions in any one or group of industries.

This investment approach enhances our ability to operate efficiently as fewer investment professionals are required to manage a concentrated portfolio consisting of long-term holdings with limited trading activity. Our long-term investment horizon also increases our influence over our portfolio companies, provides stability and support for management teams and boards of directors of our portfolio companies, and serves as an excellent recruitment tool when our portfolio companies seek to hire world-class senior executives, all of which we believe help to drive our investment performance. We constructively engage with management teams and boards of directors of our portfolio companies with a goal of accelerating growth, increasing efficiency, improving capital allocation, managing through challenges, and/or better positioning companies which have underperformed or have unrecognized sources of value generation. As part of our corporate engagement, our investment professionals have from time to time served on the boards of our portfolio companies. Historically, we have shown that we can achieve meaningful influence over companies in which we invest and assist them in creating long-term value with ownership stakes that we have acquired at a lower price than the substantial premium that is typically required to be paid to obtain control of a company. For example, after initiating our investment in Chipotle Mexican Grill, Inc. in 2016, we were able to add new directors to the board, help identify and retain new senior leadership, and drive key strategic initiatives to execute a turnaround of the company.

Our collaborative investment process is an important competitive advantage of our firm. Our idea generation process yields more opportunities than we utilize, which allows us to allocate capital to only what we believe to be our best ideas. Investments are originated through a wide range of sources, including our proprietary library in which we continuously track, update and review hundreds of investments that we have considered over time. Our investment professionals have a working knowledge of a large number of companies and are the primary sources of our investment ideas. Each investment idea typically goes through an initial due diligence process conducted by a two-member investment team, at least one of whom typically has relevant industry expertise. The dedicated team conducts initial due diligence, reviews company and industry research, interviews industry experts, and does financial analysis to determine our initial view of a company's business quality and intrinsic value.

Once sufficient work is completed and we determine that an investment idea meets a threshold of potential viability as an investment, Mr. Ackman, our Portfolio Manager, and/or Ryan Israel, our Chief Investment Officer, also conduct due diligence on the subject company. All investment proposals are formally presented and discussed in meetings with the investment team. We typically begin to acquire positions in approved ideas immediately upon investment team approval. Because compensation for our investment professionals is based on overall fund performance rather than the performance of any specific investment, our investment professionals are incentivized to deliver long-term, overall fund performance.

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We complement our core investment strategy by seeking to identify and execute upon asymmetric hedges both to protect our funds' portfolios against specific macroeconomic risks and to capitalize on market volatility. In order to generate asymmetric investment ideas, our investment professionals continuously analyze macroeconomic, political, and other global developments, which has the additional benefit of providing insights into macroeconomic considerations that are relevant for our current and potential future portfolio company investments. We believe that our individual company research with respect to our current and potential future portfolio company investments also yields variant macroeconomic insights, making our asymmetric hedging strategy highly synergistic with the research-intensive approach of our core investment strategy.

We believe our core investment strategy and commitment to always being a good partner to our investors have been responsible, in significant part, for the successful growth of our business; however, our strategy and approach to doing business comes with certain risks.

While we believe the concentrated portfolios of our core funds create operational efficiencies, they necessarily involve more exposure for our funds to the performance of each investment, with the attendant risk that a material loss in any one investment position could have a material adverse impact on the NAV of our funds and impact our results.

While our core investment strategy of acquiring non-controlling stakes generally enables us to avoid paying a control premium and gives us substantial influence over our portfolio companies, we face the risk that a portfolio company may make business, financial or management decisions contrary to our expectations or with which we do not agree or otherwise act in a manner that does not serve our interests. In the event a portfolio company were to resist or act against our influence, we may be forced to reconsider the investment value proposition, including whether to take a more engaged role in effectuating corporate change or exit the investment. For a discussion of other risks associated with our core investment strategy, see "Risk Factors—Risks Relating to Our Funds and HHH and Our Investment Strategy."

We have historically taken steps to benefit our investors that in the short term can impact the fees we collect. For example, in an effort to address the persistent discount at which PSH trades to NAV, in February 2024, we expanded the fee offset arrangement that reduces the performance fees we receive from PSH as a function of the fees we receive from other funds we manage, including the management fees that we will receive from PSUS upon completion of the combined offering, in order to increase demand for PSH shares by making it a more attractive fund for investors. The goal of the revised fee offset arrangement is to eventually eliminate the incentive fees PSH pays by increasing the fee income from growing other existing and new funds under management. Similarly, in connection with the Howard Hughes Transaction, we reduced the management fees payable to PSCM by each of the core funds by an amount equal to the HHH Fees multiplied by the percentage of HHH's shares outstanding held by each such fund attributable to its fee-paying capital. While such extra-contractual givebacks to our investors have an economic cost to us, we believe that our reputation for being a good partner to our investors, even if not required by the governing fund contracts, has been and will continue to be a long-term driver of Pershing Square Inc.'s long-term intrinsic value.

#### HHH's Diversified Holding Company Strategy
On May 5, 2025, we completed the Howard Hughes Transaction pursuant to which we intend to transform HHH, a long-term holding of our core funds, into a diversified holding company. As a first step, on December 17, 2025, HHH entered into an agreement to acquire Vantage, a privately held specialty insurance and reinsurance holding company, for approximately $2.1 billion in cash.

The Vantage Acquisition is expected to close in the second quarter of 2026, subject to customary regulatory approvals and closing conditions. We believe that the Vantage Acquisition will anchor HHH's transformation into a diversified holding company by combining our investment capabilities with Vantage management's insurance expertise and operations, enabling HHH to build and grow a profitable insurance company, which has the potential to serve as an important source of long-term value creation for HHH and our shareholders. HHH has also announced that, over time, it intends to acquire controlling ownership of high-quality, durable growth public and private operating companies, while continuing to invest in and grow its MPC real estate business.

PSCM intends to manage the assets of Vantage's insurance company subsidiaries in accordance with applicable regulatory and rating agency requirements. Subject to applicable law, PSCM plans to invest such assets primarily in fixed income securities (including U.S. Treasury bills) and common stocks of public companies in a manner consistent with the investment strategy of our core funds. Accordingly, we believe PSCM's strategy for managing the assets of

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Vantage's insurance company subsidiaries will be highly synergistic to our core funds' investment strategy and our own cash management practices. PSCM also plans to manage the assets of Vantage's insurance company subsidiaries in a low-leverage fashion, meaning that they will write relatively small amounts of premium relative to capital, with the result that they will likely have lower ratios of invested assets to capital than a typical U.S. property-and-casualty insurance company. We believe this low-leverage approach will allow Vantage's insurance company subsidiaries to prudently invest a relatively higher percentage of their respective assets in common stocks, as opposed to fixed income securities, compared with a typical U.S. property-and-casualty insurance company. Accordingly, we expect Vantage's insurance company subsidiaries will be able to generate higher returns on their assets compared with more highly leveraged U.S. property-and-casualty insurance companies, which generally derive their profits principally from underwriting and a predominantly fixed-income investment strategy.

We will support HHH's new diversified holding company strategy by providing HHH with investment advisory and other services that leverage our existing core competencies. For example, we believe the idea generation and diligence processes we utilize in our core investment strategy, as well as our extensive track record and reputational equity from working closely with portfolio companies and institutional investors throughout our history, will allow us to help HHH successfully pursue privately negotiated control investments. In addition, we believe the variant insights from our asymmetric hedging strategy, which has proven to be a substantial contributor to our long-term investment performance, will allow us to help protect HHH against macroeconomic risks and to capitalize on market dislocations. We believe our investment acumen, transactional experience and operational infrastructure will assist us in creating long-term value at HHH.

Although we expect the investment strategy of HHH will differ in some respects from that of our core funds, including, for example, with respect to the Vantage Acquisition and acquisition of controlling ownership stakes in operating companies, we anticipate that the type of companies in which HHH will acquire controlling interests will be sufficiently similar to the type of companies in which our core funds invest (i.e., companies with simple, predictable, free-cash-flow generative businesses), just of substantially smaller size. In addition, we expect to invest the assets of Vantage's insurance company subsidiaries in fixed income securities and common stocks of public companies in a manner consistent with the investment strategy of our core funds. As such, we do not anticipate that the Howard Hughes Transaction will require us to materially increase our fixed costs or headcount or disrupt the operation of our core funds.

There are challenges and risks inherent in the Howard Hughes Transaction. Transforming HHH into a diversified holding company will be a new and complex process for us, and there can be no assurance that the anticipated benefits of the transaction will be fully realized. For a discussion of risks associated with the Howard Hughes Transaction, see "Risk Factors."

#### Our History and Evolution

Over time, our approach began to evolve toward deeper long-term active operating engagements. For instance, in 2010, Mr. Ackman joined the board of directors of General Growth Properties, Inc. ("GGP") and led a financial restructuring with the perspective and influence of a major common stockholder, which included the identification and recruitment of new management for the company. In 2012, we won a proxy fight for control of the board of directors of Canadian Pacific Railway (now known as Canadian Pacific Kansas City), replaced the substantial majority of the incumbent board with our nominees, and then proceeded to recruit a leading industry veteran to lead a turnaround of the company. In 2016, our affiliates joined the board of Chipotle Mexican Grill, Inc. in the midst of a food safety crisis and assisted the company in recruiting a new CEO and senior leadership team who executed a successful turnaround. We believe that these and other such corporate engagements and our record of recruiting experienced senior leadership have allowed us to steadily establish a reputation and credibility as a preferred partner to portfolio companies and their shareholders, especially during challenging periods at these businesses.

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Prior to 2014, we primarily raised capital through private funds with periodic redemption rights. One historical impediment to our strategy of long-term corporate engagements was the open-ended nature of our capital base where the liquidity needs of our shorter-term fund investors were inconsistent with our long-term investment horizon. In 2014, PSH converted into a closed-end investment company and listed its shares on Euronext Amsterdam in a $2.9 billion IPO, the largest European IPO of 2014, to become our first publicly traded permanent capital fund with $6.2 billion in AUM at the completion of the offering (PSH subsequently listed on the London Stock Exchange in May 2017 and recently delisted from Euronext Amsterdam in January 2025). At that time, as of October 1, 2014, 34% of our assets under management for our funds and other investment vehicles was in the form of permanent capital.

In 2015, we made an investment that led to a period of poor investment performance, during which our investment strategy's annual returns substantially underperformed that of the S&P 500. The loss on this one investment had a disproportionate effect on our overall fund performance because market participants sold and/or shorted our portfolio company holdings and attempted to cause a short squeeze by buying stock in the one company we were short. They did so because they believed, correctly as it turned out, that the occurrence of a large publicly visible loss on one high-profile investment would trigger investor redemptions and require us to liquidate positions in our two open-ended funds, PSLP and PSINTL, which comprised approximately two-thirds of our assets under management at that time.

In 2017, we reflected on the root causes of our underperformance and formulated a turnaround strategy, which we believe has been largely responsible for our funds' track record of substantial outperformance since that time. Our turnaround strategy consisted of four pillars: (1) exiting the problematic investments, which included exiting activist short selling as an investment strategy (though short selling had never been a material component of our investment strategy); (2) restructuring Pershing Square into a smaller investment-centric organization; (3) stabilizing our capital base by the purchase by our Founder and other employees of a large minority ownership interest in PSH; and (4) reinforcing the implementation of our core investment principles.

Early in 2018, we announced that we would no longer seek to raise capital for our two open-ended funds. This decision to focus on PSH and permanent capital was largely driven by our experience in our challenging period. Through compounded returns, net of dividends and stock buybacks of 29.5% of shares outstanding, PSH has grown organically to reach $15.0 billion in Fee-Paying AUM as of December 31, 2025. Including the Fee-Paying AUM of HHH, permanent capital represents 96% of our Fee-Paying AUM as of December 31, 2025. Permanent capital will represent an even greater portion of our Fee-Paying AUM following the completion of the PSUS IPO.

At the time we launched PSH, we believed the ability to earn a performance fee was critical to our ability to attract and retain talent. We chose a listing venue outside of the United States for PSH where applicable regulatory requirements would not preclude us from earning a performance fee. Organizing PSH as a non-U.S. fund listed outside of the United States has presented certain challenges. We believe that certain tax attributes of PSH make it an unattractive investment for many taxable U.S. investors. Furthermore, applicable regulatory restrictions both limit the ability of many U.S. investors to own PSH and inhibit our ability to market PSH to U.S. investors. We believe that these factors have caused PSH to trade at a discount to its NAV.

The establishment of PSUS represents the next evolution of our strategy. As our flagship NYSE-listed permanent capital vehicle which charges only a management fee and without the regulatory marketing limitations, U.S. ownership restrictions, and unfavorable tax characteristics of PSH for U.S. taxpayers, we believe that PSUS will not experience the challenges inherent to PSH and other offshore closed-end investment companies.

Our shift to a permanent capital strategy has enabled us to minimize marketing and fundraising efforts, allowing our investment professionals to dedicate substantially all of their business time and attention to the identification, monitoring and oversight of our portfolio companies. Our permanent capital base has enabled us to invest with a long-term ownership horizon as we are no longer beholden to the risks of short-term investor capital flows, which we experienced during our challenging period. Our last activist investment was initiated in 2016, and our investment approach is now characterized by constructive and productive corporate engagements. By exiting short selling as an investment strategy, our funds are also no longer exposed to the risk of a short squeeze.

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We believe the benefits from our investment strategy's evolution are significant, as our current approach focused on long-term constructive engagement and investment in high-quality large-capitalization companies is highly scalable, allowing us to continue to generate high returns and compound our assets and reputational equity over the long-term.

#### Our Market Opportunity
As alternative asset management remains a broadly attractive and growing industry, we believe our differentiated business model positions us to capitalize on favorable market trends:

#### Greater Equity Market and Single-Name Stock Price Volatility
In recent years, there has been significant equity market and single-name stock price volatility, even for large publicly traded companies. We believe this volatility is due to several factors. Index funds have increasingly become the largest effectively permanent owners of a growing percentage of the market capitalization of public companies. This large index ownership has increased the impact that short-term, highly leveraged investors who rapidly buy and sell securities can have on price discovery as such investors now comprise a growing percentage of the daily trading of companies. Because these shorter-term investors generally have a low tolerance for mark-to-market losses, this creates large amounts of stock price volatility for even the largest companies that disappoint or surprise investors. Unexpected macroeconomic data and unanticipated geopolitical events have also contributed to market volatility. We believe such volatility is beneficial to concentrated, long-term, fundamental value investors that manage permanent capital as it can create attractive buying opportunities coupled with a high degree of share price liquidity.

#### Democratization of Alternative Investments
Individual investors are expected to be the fastest growing segment among investors allocating to alternative assets and are projected to increase their alternatives allocations from $4 trillion to $13 trillion over the 10-year period from 2022 to 2032. High minimum initial investment commitment requirements and limited liquidity have historically been and in some cases remain barriers for individual investors to invest in alternative investments. We believe we are well positioned to benefit from the democratization of alternative investments as PSUS will not have any minimum investment requirements, and retail investors, following the PSUS IPO, will be able to purchase PSUS Shares directly on the NYSE.

#### Retail Investor Growth in Public Equity Market Participation
Direct ownership of stocks increased from 15% to 21% of U.S. families between 2019 to 2022, the largest change on record, according to the U.S. Federal Reserve. PSUS, which we expect will be our flagship NYSE-listed permanent capital vehicle, will be our first fund marketed to both U.S. retail and institutional investors.

#### Our Competitive Strengths

#### Track Record of Outperformance
We have a strong track record of low-correlated outperformance and resilience driven by investment discipline, constructive engagement with our portfolio companies, and profits from our unique asymmetric hedging strategy. Our core investment strategy has exhibited relatively low market correlation to the broader equity market (i.e., average returns of the investment strategy, net of fees, have been higher than the broader equity market during times in which the returns of the broader equity market declined and similar to the broader equity market during times in which the broader equity market increased). Our permanent capital strategy has generally proven to be defensive in down markets, outperforming the S&P 500 during the global financial crisis, the COVID-19 pandemic, and the recent elevated interest rate environment, as illustrated in the graph above titled "Pershing Square Cumulative Net Returns vs. S&P 500." We have underperformed the S&P 500 in certain years, for example, during our challenging period from 2015 to 2017, and in 2024 when our performance lagged the overall performance of the S&P 500. Our long-term goal is to substantially outperform market indexes; however, we do not expect to outperform the stock market each year.

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The chart below presents the annualized net returns an investor who invested in PSH would have experienced from January 1, 2018, the beginning of our current permanent capital era, through December 31, 2025, as compared to the returns such investor would have received had it invested in the S&P 500 during the same time period.

#### Pershing Square Permanent Capital Era Annualized Net Returns vs. S&P 500<br>

#### From January 1, 2018 Through December 31, 2025
![](ny20040230x14_barchart0x1.jpg)<br>

&nbsp;&nbsp;&nbsp;&nbsp;<br>

(1) Represents the annualized net returns from investing in PSH, after performance fees, management fees and other expenses incurred by the fund. See "Business—Advisory Fees and Compensation" for a description of applicable performance fees and management fees. Illustrates the past performance of PSH, and past returns are not indicative of future performance. If the annualized net returns from investing in PSLP and PSINTL from January 1, 2018 through December 31, 2025, after performance fees, management fees and other expenses incurred by such funds, were also included, the annualized net returns of our core funds, on a weighted-average aggregate basis, would have been 22.3%, representing 800 bps of outperformance per annum versus the S&P 500. The lower net returns of our core funds, on such aggregate basis, versus of PSH are primarily attributed to the higher percentage payable as performance fees by PSLP and PSINTL, as compared to PSH, and the fact that PSLP and PSINTL do not employ leverage in the form of low-cost, long-term debt in pursuing our core investment strategy, unlike PSH. **This performance information is presented in connection with the offering of our common stock and is for illustrative purposes only. It is not the performance record of PSUS and should not be considered a substitute for the performance of PSUS. There can be no assurance that any of our funds will achieve comparable or greater results in the future, or that any of our funds will be able to implement their investment strategy or achieve their investment objective.** Our funds' investments may be made under different economic conditions and may include different underlying investments in the future. Furthermore, PSH and the other funds and accounts managed by us prior to the combined offering are not registered under the 1940 Act, unlike PSUS, and, therefore, none of them are subject to the investment restrictions, leverage and derivative restrictions, diversification requirements and other regulatory requirements imposed on registered investment companies by the 1940 Act and on regulated investment companies by the Code. If such funds or accounts had been registered under the 1940 Act and/or operated as regulated investment companies under the Code, their respective returns might have been lower and their ability to undertake certain transactions or investments may have been restricted. See the accompanying PSUS Prospectus for additional information about PSUS and the risks associated with an investment in PSUS Shares. The historical performance information presented herein does not reflect the impact of any sales load or transaction fees.

(2) The S&P 500 is an unmanaged capitalization-weighted index that measures the performance of the large-capitalization segment of the U.S. market. The index includes 500 leading U.S. stocks representing all major industries. The S&P 500 does not reflect any fees, expenses or sales loads. It is not possible to invest directly in the S&P 500 index. The volatility of the S&P 500 presented may be materially different from that of the performance of our funds. In addition, the S&P 500 employs different guidelines and criteria than our funds; as a result, the holdings in our funds may differ significantly from the securities that comprise the S&P 500. The S&P 500 allows for comparison of our funds' performance with that of a well-known, appropriate and widely recognized index; the S&P 500 is not intended to be reflective or indicative of our funds' past or future performance. 

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#### Permanent Capital with a Capital-Light, High-Growth Business Model
We believe that we are the only publicly traded alternative asset manager with permanent capital comprising nearly all of our AUM, with a small single-digit percentage of our Fee-Paying AUM in our two private funds comprised of investors who have invested with us for many years, typically a decade or more. We define "permanent capital" as capital that is not subject to withdrawal or redemption at the option of the fund investor or stockholder. In contrast to the non-traded "perpetual" capital vehicles sponsored by other alternative asset managers, PSH does not have any redemption provisions or mandatory share repurchase requirements that are at the election of the fund investor or stockholder, and has comparatively low distributions as a percentage of NAV. Similarly, any return of capital by HHH, a NYSE-listed operating company, whether in the form of dividends or share repurchases, would be made only at the discretion of its board of directors and not at the election of its stockholders, and HHH intends to retain all of its capital for long-term investment. As of December 31, 2025, 96% of our Fee-Paying AUM is permanent capital. Permanent capital will represent an even greater portion of our AUM following the completion of the PSUS IPO and the continued growth of HHH.

#### Composition of Fee-Paying AUM <br>

#### As of December 31, 2025
![](ny20040230x14_piechart0x1.jpg)<br>

We view the stability of our capital base, substantially all of which is permanent capital, as one of our most important competitive advantages. Permanent capital allows us to take a long-term view and be opportunistic during periods of market volatility without being exposed to the need to raise capital by selling assets to meet redemptions during such periods. We expect to continue to drive significant organic AUM growth by implementing our investment strategy and compounding our capital at high rates of return, in contrast to other asset managers whose growth relies principally on fundraising to maintain and grow their managed assets. We believe our permanent capital enables us to generate superior, long-term investment returns and produces a financial profile for Pershing Square that is characterized by steady, predictable and recurring fees. Because we do not require the headcount and other substantial costs required of a large fundraising operation, we can achieve greater operating leverage as our AUM can grow without the need to increase the size of our organization.

Permanent capital has also been and is expected to continue to be a highly attractive talent attraction and retention tool, allowing us to hire and retain top analysts for our investment team and other high-quality employees throughout our company. Permanent capital and our long-term investment horizon are also excellent recruitment tools when our portfolio companies seek to hire experienced senior executives who prefer the stability and backing afforded by a significant long-term shareholder who is not required to seek an exit for its holdings due to investor redemptions or investment holding periods due to fund life considerations.

Our permanent capital base is managed through durable contractual arrangements. Our investment management agreement with PSH can only be terminated with the approval of 66 2/3% of the voting shares and 66 2/3% of the public shares of PSH. Because our Founder and certain of our other employees, together with their affiliates, directly or indirectly hold 28% of the outstanding public shares of PSH at December 31, 2025, a decision to terminate the investment management agreement as of such date would have required the affirmative approval of 93% of the remaining outstanding public shares. Moreover, as described in "Certain Relationships and Related Person

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Transactions—Other Transactions—Our Right to Acquire PSH Shares," we will have the right to acquire the shares of PSH held by our Founder and certain of our other current and former employees and their affiliates at any time after the ninth anniversary of the Corporate Conversion and on or prior to the tenth anniversary of the Corporate Conversion.

Similarly, the HHH Services Agreement has an initial 10-year term, with successive automatic 10-year renewal terms unless the agreement is terminated or not renewed in accordance with its terms. The HHH Services Agreement may not be terminated by HHH except in limited prescribed circumstances such as fraud, misrepresentation or embezzlement by PSCM and with the approval of two-thirds of the disinterested members of its board of directors or in the event of a sale of the company which must be approved by a majority vote of the board of directors and a subsequent vote of a majority of shareholders present at a shareholder meeting. We note that Pershing Square Inc. and our core funds own 47% of the outstanding shares of HHH. HHH may only elect not to renew the HHH Services Agreement if the non-renewal is approved by a unanimous vote of the disinterested members of its board of directors and by holders of at least 70% of the outstanding shares of HHH common stock, excluding any shares held by us or our affiliates. Under the HHH Standstill Agreement, we, and our affiliates, are generally limited to an ownership cap of 47% and a voting cap of 40% of the outstanding shares of HHH common stock. See "Business—Termination of Investment Management Agreements and HHH Services Agreement and Key Man Protection" for additional information.

#### Recurring Fee-Related Earnings Stream
We generate substantially all of our revenue from management fees and performance fees. We retain all of the management fees earned from our funds. We pay our investment professionals and certain other employees our realized performance fees in excess of an amount allocated to us in the form of a preferred entitlement that we refer to as "Preferred Performance Fees." Preferred Performance Fees are performance fees earned on the first five percentage points of fund returns, net of management fees, above the applicable high-water mark for certain of our core funds and subject to certain other offsettable fees. To the extent realized performance fees from a fund are insufficient to pay us some or all of the Preferred Performance Fee in any year, the unpaid portion accrues to subsequent periods until paid in full. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Components of Our Results of Operations—Income—Performance Fees—Allocation of Performance Fee Revenue" for an illustration of our Preferred Performance Fee arrangement for the allocation of performance fee revenue, as well as the relevant high-water marks, over the six-year period ending December 31, 2025.

We have structured the Preferred Performance Fees as a senior claim on our funds' performance fees to increase the stability and certainty of these future cash flows to Pershing Square Inc. Because our Preferred Performance Fees are paid from the first dollars of realized performance fees, which are contingent on the mark-to-market appreciation in the NAV of our funds above an applicable high-water mark, the amount of the Preferred Performance Fees that is paid in any year can vary depending upon the performance of our funds. In other words, if a fund does not generate a 5% return, net of the management fee, the amount of Preferred Performance Fees from that fund will be lower than if the fund generated a return in excess of 5% net of the management fee. The applicable high-water mark used to calculate the Preferred Performance Fees also can vary from year to year depending on changes in the Net Asset Value and the amount of fee-paying capital in a fund. Because the Preferred Performance Fees are paid from the first dollars of fund profit and are accrued in the event there are insufficient fund returns in any one year, as long as each fund that pays performance fees generates a 5% annual return, net of the management fee, over the long-term, the Preferred Performance Fees will be fully paid.

We believe that our Preferred Performance Fee arrangement results in recurring revenue that is less volatile and more predictable over the long-term when compared with conventional performance fee arrangements for two reasons: (1) our performance fees are paid annually subject only to our funds generating a return in excess of their high-water mark, and (2) our performance fees are determined based on mark-to-market returns including realized and unrealized gains. The structure of our Preferred Performance Fee arrangement makes for more consistent and stable cash flows compared to the performance fees of other alternative investment managers whose private equity funds generally require the sale of an asset at a price which generates cash returns in excess of a preferred return or hurdle rate. As a result of our Preferred Performance Fee arrangement, we believe that effectively all of our revenues from management fees and Preferred Performance Fees can be considered to be stable and recurring fee-related earnings.

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#### Core Investment Strategy Creates a High-Margin Business with a Largely Fixed Cost Base
Our core funds each have a similar investment program, which is to acquire long-term, large minority stakes in high-quality, predominantly North American-listed, large-capitalization companies at attractive valuations. Our core funds generally invest in the same assets in similar proportions, subject to regulatory, tax, liquidity and other applicable considerations. We view our core investment strategy as an important competitive advantage as we allocate capital only to our best ideas. Our core investment strategy also has proven to benefit from economies of scale, as, in general, the greater our percentage ownership of a company, the greater our influence over that company, influence which has helped us drive portfolio company and fund performance as well as organic growth in our AUM.

Our core investment strategy has proven to be highly scalable because fewer investment professionals are required to manage a concentrated portfolio consisting of long-term holdings with limited trading activity. We have nine investment professionals managing $30.7 billion in AUM as of December 31, 2025, and believe that we can significantly increase our AUM without materially increasing our headcount, infrastructure or other assets. The result is a high-margin operating model with a primarily fixed cost base (which excludes incentive compensation-related expense which is paid to employees out of realized performance fees only after first allocating to the Company the accrued Preferred Performance Fee).

Our business is also minimally capital intensive, apart from investments we make alongside other investors when we have launched new funds or completed corporate transactions. In light of our largely fixed cost base, highly scalable investment strategy, and minimal capital intensity, we benefit from substantial operating leverage as we grow our AUM.

#### History of Capital Markets Innovations
From time to time throughout our history, we have complemented our organic growth in AUM by launching new funds or completing innovative transactions that leverage our core competencies to create large 'overnight' increases in our Fee-Paying AUM without requiring significant new investments in infrastructure and operating costs. We have been at the forefront of two pronounced recent shifts in the asset management industry: the democratization of alternative investments and the surge in retail investor participation in public equity markets. For example, in 2014, we converted PSH into a closed-end investment company and listed its shares on Euronext Amsterdam (and later listed PSH on the London Stock Exchange in May 2017). As a result of PSH's public listing on the London Stock Exchange, PSH became our first publicly traded permanent capital fund with AUM of $6.2 billion as of October 2014.

In July 2020, our core funds sponsored the largest special purpose acquisition company ("SPAC") in history, Pershing Square Tontine Holdings, Ltd. ("PSTH"), which raised $4 billion in its initial public offering, before it was ultimately liquidated and all capital raised was returned to investors in 2022 due to PSTH's inability to close a transaction with Universal Music Group ("UMG") because necessary regulatory approvals were unable to be obtained in a timely fashion. We fulfilled our obligation to acquire 10% of UMG by acquiring the stake directly in our core funds along with a co-investment vehicle which we raised for that purpose.

We created a new form of acquisition company, Pershing Square SPARC Holdings, Ltd. ("SPARC"), a special purpose acquisition rights company, which we believe to be a more efficient and improved successor to the traditional SPAC, thereby providing investors in PSTH a free option to invest in our next acquisition company transaction. Our registration statement for SPARC became effective on September 29, 2023. We have been seeking to identify potential business combination opportunities for SPARC. SPARC has no founder stock, shareholder warrants, or underwriting fees, and represents a highly efficient approach to going public with Pershing Square as an anchor, committed capital sponsor.

The launch of PSUS, which would be our first flagship NYSE-listed permanent capital vehicle, will be our first fund marketed to both U.S. retail and institutional investors. Subject to the applicable requirements of the 1940 Act and the Code, as discussed elsewhere, PSUS is designed to be a near-mirror image of PSH, but without performance fee compensation and the regulatory marketing limitations, U.S. ownership restrictions, and tax characteristics of PSH.

The Howard Hughes Transaction has enabled us to create a permanent capital vehicle in a corporate form that we intend to use to acquire controlling interests in public and private companies and, as a result of the Vantage Acquisition, to build a profitable insurance company whose assets we will manage.

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#### PSUS IPO Will Substantially Increase Our Fee-Paying AUM
The PSUS IPO will materially increase our permanent capital and our Fee-Paying AUM, which will lead to substantial growth in our predictable and recurring management fee revenue and fee-related earnings. PSUS will pursue our core investment strategy enabling it to leverage our existing investment acumen and infrastructure. We believe the launch and management of PSUS will not require an increase in our fixed costs, making the additional revenue from PSUS a highly material contribution to our earnings and cash flows. See "Unaudited Pro Forma Consolidated Financial Information" and the accompanying PSUS Prospectus for additional information on PSUS.

#### Howard Hughes Transaction Drives Long-Term Value Creation
We believe the Howard Hughes Transaction will allow us to build a fast-growing, high-returning diversified holding company that acquires control positions in companies meeting our criteria for business quality and durable growth alongside continued growth in the cash flows from HHH's MPC real estate business. Our first initiative for HHH was to acquire or create an insurance company, the investment assets of which would be managed by PSCM. On December 17, 2025, HHH entered into an agreement to acquire Vantage, a privately held specialty insurance and reinsurance company, for approximately $2.1 billion in cash.

The Vantage Acquisition is expected to close in the second quarter of 2026, subject to customary regulatory approvals and closing conditions. We believe that the Vantage Acquisition will anchor HHH's transformation into a diversified holding company by combining our investment capabilities with Vantage management's insurance expertise and operations, enabling HHH to build and grow a profitable insurance company, which has the potential to serve as an important source of long-term value creation for HHH and our shareholders. PSCM intends to manage the assets of Vantage's insurance company subsidiaries similarly to how we manage the assets of our core funds, but with consideration to issues particular to regulated insurance companies.

We view the Howard Hughes Transaction as highly synergistic to our core investment strategy and competencies. We intend to leverage the idea generation and diligence processes we utilize in our core investment strategy, along with our extensive track record and reputational equity developed from working closely with portfolio companies, to assist HHH in pursuing privately negotiated control investments. We also intend to leverage our variant insights from our asymmetric hedging strategy to help protect HHH from macroeconomic risks and to capitalize on market dislocations.

We believe the Howard Hughes Transaction will not require us to materially increase our fixed costs or headcount, making the additional value created from such transaction, including from the quarterly HHH Fees paid to PSCM, highly accretive to our earnings and cash flows.

#### Highly Collaborative Culture and Reputation as a Preferred Partner to Portfolio Companies
We believe our firm's unique culture is fundamental to our success. Our company combines investment excellence with a flat organizational structure. Each member of our investment team plays a meaningful role in the construction and management of our portfolio. Our collaborative partnership culture, permanent capital base, the highly attractive economics of our business and our approach to employee compensation have resulted in limited employee turnover.

Our collaborative culture is also demonstrated by our track record of constructive engagements with boards of directors and oversight of our portfolio companies, which has allowed us to establish an excellent reputation and credibility as a preferred partner. We believe our reputation has been an important driver of our outperformance since inception, allowing us to garner substantial influence and drive long-term value creation in our portfolio companies without paying a control premium.

#### Alignment of Interests
We believe we have successfully built a business model that aligns our interests with our portfolio companies, investors in our funds, and the stockholders of Pershing Square Inc. Our employees and their affiliates' capital invested in our funds and HHH totaled $5.8 billion as of December 31, 2025, accounting for approximately 26% of the aggregate value of our funds' NAV, before any accrued performance fee, and HHH's market capitalization, which is substantially higher, both as a percentage and absolute dollar investment, than the typical amount of sponsor investments of other alternative asset manager teams. We also have agreed to increase our existing investment in PSUS to $150 million by investing $100 million in common shares in the PSUS

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Private Placement and an additional $50 million in a private placement of preferred shares to be issued by PSUS in connection with and upon completion of the PSUS IPO. Our employees will own the substantial majority of Pershing Square Inc. shares after the combined transaction.

Our employee compensation is tied to aggregate fund performance rather than the performance of any one or more portfolio companies or investments of our funds. Our Preferred Performance Fee arrangement increases our alignment with our investors as the substantial majority of our investment professionals' compensation comes from performance fees remaining after payment by PSCM of the Preferred Performance Fee to us. For additional information, see "—Reorganization Transactions" and "—Implications of Being a Controlled Company" below. To further align certain of our senior professionals with our long-term investment horizon, in connection with the combined offering, certain of our senior professionals will receive interests in PS Partner Group (as defined below in "—Reorganization Transactions—Holdco Reorganization") that may become redeemable, subject to certain conditions, for shares of our common stock held by PS Partner Group. See "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Redeemable Interests in PS Partner Group."

To minimize circumstances that may lead to or give the appearance of conflicts of interest with our fund investors, we maintain policies that restrict the type of investments our employees can make in their personal accounts and require regular disclosure to us of their personal securities holdings and transactions.

#### Our Growth Strategy
We intend to drive long-term shareholder value by pursuing a growth strategy of compounding our permanent capital at high rates of return and by launching new permanent capital funds and executing corporate transactions, like the HHH Transaction, that will enable us to grow our permanent capital assets.

#### Generate High Rates of Long-Term Returns To Drive Organic Growth in Fee-Paying AUM
Generating high rates of long-term returns is key to our strategy and has been fundamental to our ability to scale our business over time. Since our founding, a long-term investment in our funds has generated substantially superior returns for investors versus an investment in the S&P 500, our benchmark index. Our strategy has proven to be highly scalable because fewer investment professionals are required to manage a concentrated portfolio consisting of long-term holdings with limited trading activity, and because our long-term, large ownership stakes increase our influence over our portfolio companies, which we believe helps to drive our investment performance.

We view our selective asymmetric hedging strategy as highly synergistic to our core investment strategy and a superior alternative to a large cash position or a continuous hedging program, both of which can be a significant drag on long-term performance. Accordingly, we believe that our core investment strategy complemented by our asymmetric hedging strategy will allow us to continue to compound our permanent capital at high rates of return, creating continued rapid organic growth in our AUM. Because of our high-margin, minimally capital-intensive operating model, our growth in Fee-Paying AUM from investment returns and new permanent capital initiatives should drive substantial increases in our revenues, our earnings, and our cash flow, which will be available for future investment opportunities and for dividends or share repurchases.

#### Selective Launches of New Permanent Capital Funds Can Drive Large Percentage Increases in Fee-Paying Assets
We will continue to evaluate opportunities to selectively launch new permanent capital funds that leverage our core competencies and create large 'overnight' increases in our Fee-Paying AUM without requiring significant new investments in infrastructure and operating costs. For example, we may consider launching new permanent capital funds that focus on investments with asymmetric payoff structures and/or opportunistic private investments, which leverage our substantial experience with asymmetric hedges and history of privately negotiated transactions. In light of our relatively small current Fee-Paying AUM compared with other publicly traded alternative asset managers, new permanent capital fund launches can drive large percentage increases in Fee-Paying AUM, operating profits, and cash flow. The combined offering and the HHH Transaction are emblematic of this approach to growth. In the event we identify additional compelling opportunities for selective expansion, we believe we are well positioned to capitalize on such opportunities.

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#### Reorganization Transactions

#### Holdco Reorganization
In connection with the Strategic Investment, effective as of May 31, 2024, PSCM completed an internal reorganization of its ownership structure (the "Holdco Reorganization") pursuant to which Pershing Square Holdco, L.P., a Delaware limited partnership formed for purposes of the Holdco Reorganization, became the indirect, sole owner of PSCM. As a result of the Holdco Reorganization and subsequent related transfers of interests, our owners who previously held interests directly in PSCM now hold their interests through Pershing Square Partner Group, LLC, a Delaware limited liability company ("PS Partner Group") and/or Pershing Square Holdco, L.P. Following the Holdco Reorganization and prior to the combined offering, PS Partner Group and our owners who previously held interests directly in PSCM own approximately 90% of the issued and outstanding limited partnership interests in Pershing Square Holdco, L.P. In addition, such owners also hold interests in PS CompCo, LLC, a Delaware limited liability company ("CompCo"), which entered into the Variable Compensation Agreement, dated as of May 31, 2024 (the "VCA"), with Pershing Square Holdco, L.P. and PSCM. For further discussion of the VCA and its contemplated termination and replacement in connection with the combined offering, see "Executive Compensation—Narrative Disclosure to Summary Compensation Table—Variable Compensation Agreement" and "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Variable Compensation Agreement and Subordinated Profits Interest."

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The diagram below depicts our current organizational structure prior to the Corporate Conversion and the combined transaction.

![](ny20040230x14_diagram01a.jpg)<br>

&nbsp;&nbsp;&nbsp;&nbsp;<br>

(1) Following the Holdco Reorganization and subsequent related transfers of interests, our current and former employees of PSCM, including our Founder, as well as former members of our advisory board (collectively, the "Partners") own interests in Pershing Square Partner Group, LLC ("PS Partner Group") and/or Pershing Square Holdco, L.P.

(2)<br> Following the Holdco Reorganization, PS Holdco GP Managing Member, LLC ("ManagementCo") is the managing member of PS Partner Group. As managing member of PS Partner Group, ManagementCo has no economic interests in PS Partner Group but sole voting control over PS Partner Group.

(3) ManagementCo is directly or indirectly owned by certain members of our senior management comprising our Founder, Ryan Israel, Ben Hakim, Michael Gonnella, Anthony Massaro and Halit Coussin. Our Founder owns 24.9% of the voting interests of ManagementCo, with Mr. Israel, Mr. Hakim, Mr. Gonnella, Mr. Massaro and Ms. Coussin each owning the remainder of the voting interests equally (approximately 15% of such voting interests each).

(4) Following the Holdco Reorganization but prior to the Corporate Conversion, Pershing Square Holdco GP, LLC ("Holdco GP") is the general partner of Pershing Square Holdco, L.P. As general partner of Pershing Square Holdco, L.P., Holdco GP has no economic interests in Pershing Square Holdco, L.P. but has the power to manage the business and affairs of Pershing Square Holdco, L.P. Holdco GP, in turn, is managed by a board of directors. ManagementCo, as sole member of Holdco GP, controls the election of the members of such board of directors.

(5) Following the Holdco Reorganization, our Partners own interests in CompCo. As described in "Business—Advisory Fees and Compensation—Allocation of Performance Fee Revenue," generally we pay our investment professionals and certain other employees our performance fees remaining after payment by PSCM of the Preferred Performance Fee to us. See "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Variable Compensation Agreement and Subordinated Profits Interest."

(6)<br> Represents a contractual entitlement under the VCA. See "Executive Compensation—Narrative Disclosure to Summary Compensation Table—Variable Compensation Agreement."

(7) Following the Holdco Reorganization and subsequent related transfers of interests, but prior to the Corporate Conversion, our Founder owns % of CompCo and % of PS Partner Group.

(8) Each of the Strategic Investors owns an interest of 2% or less of our business.

(9)<br> Certain wholly owned intermediate holding companies are not depicted in the structure chart.

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(10) Generally, the General Partner or the Managing Member, as the case may be, has all rights and powers to manage and administer the business and affairs of the relevant entity; and the Limited Partners or the non-managing Members, as the case may be, generally have no voting or approval rights, except with respect to limited minority protection rights as set forth in the applicable organizational document.

(11) Following the Holdco Reorganization and subsequent related transfers of interests, but prior to the Corporate Conversion, our Founder indirectly holds (other than through PS Partner Group) % of the limited partnership interests in Pershing Square Holdco, L.P.

#### Corporate Conversion
Prior to the effectiveness of each of the registration statement of which this prospectus forms a part and the PSUS Registration Statement, Pershing Square Holdco, L.P. will convert into a Nevada corporation by means of a statutory conversion and change its name to Pershing Square Inc. We refer to this conversion throughout this prospectus as the "Corporate Conversion." Prior to the Corporate Conversion, (i) the economic interests of Pershing Square Holdco, L.P. are owned by its limited partners, (ii) the non-economic controlling interest in Pershing Square Holdco, L.P. is owned by its general partner, Pershing Square Holdco GP, LLC ("Holdco GP") and (iii) Holdco GP is managed by a board of directors, where ManagementCo, as sole member of Holdco GP, controls the election of the members of such board of directors. In connection with the Corporate Conversion, (i) the limited partners of Pershing Square Holdco, L.P. will become holders of shares of common stock of Pershing Square Inc., (ii) the board of directors of Holdco GP will become the board of directors of Pershing Square Inc., and (iii) the non-economic interest of Holdco GP will be converted into the Special Voting Share in Pershing Square Inc. and, following the dissolution of Holdco GP immediately thereafter, ManagementCo will become the holder of the Special Voting Share in Pershing Square Inc. and, accordingly, will continue to control the election of the members of the board of directors of Pershing Square Inc., and generally control the outcome of all other matters requiring the approval of our stockholders, including the amendment of our articles of incorporation and bylaws and the approval of significant corporate transactions such as a change in control, merger, consolidation or sale of assets.

In contrast to the two-tiered, "UP-C" ownership structures frequently employed in initial public offerings by businesses that have been organized as partnerships for U.S. federal income tax purposes including many publicly traded alternative asset management companies, our public stockholders and our pre-IPO owners will hold their economic interests in our company through a single class of common stock issued by Pershing Square Inc. We believe this single-tier traditional C-corporation structure, without a tax receivable agreement, provides greater simplicity and materially improved alignment among all of our shareholders.

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The diagram below depicts our organizational structure immediately following the combined transaction.

![](ny20040230x14_diagram01b.jpg)<br>

(1) Certain of our active investment professionals and employees will continue to own interests in PS Partner Group that may become redeemable, subject to certain conditions, for shares of our common stock held by PS Partner Group. Accordingly, any such redemption will not be dilutive to our public shareholders. See "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Redeemable Interests in PS Partner Group." 

(2) Prior to the completion of the combined transaction, PS Partner Group and our other pre-IPO owners, excluding the Strategic Investors, to whom we refer as the "pre-IPO management owners," will contribute a number of shares to us in an amount equal to the number of shares of our common stock offered in this offering and the PS Private Placement. Accordingly, although the combined transaction will result in a decrease in the ownership of our common stock by the pre-IPO management owners, on the one hand, and an increase in the ownership by the initial investors in the combined transaction, on the other hand, it will not result in any change in the total number of our shares of common stock outstanding. See "—The Offering" below.

(3) ManagementCo will remain the managing member of PS Partner Group. As managing member of PS Partner Group, ManagementCo will have no economic interests in PS Partner Group but sole voting control over PS Partner Group. ManagementCo will also hold the Special Voting Share that has no economic rights and has voting power (which shall in no event be less than one vote) equal to that number of votes required, when taken together with the aggregate voting power of the shares of our common stock over which ManagementCo then has voting power, to give ManagementCo a majority of the aggregate voting power of the Special Voting Share and the then-outstanding shares of common stock. See "Description of Capital Stock—Preferred Stock—Special Voting Share."

(4) ManagementCo will continue to be directly or indirectly owned by certain members of our senior management comprising our Founder, Mr. Israel, Mr. Hakim, Mr. Gonnella, Mr. Massaro and Ms. Coussin. Our Founder will continue to own 24.9% of the voting interests of ManagementCo, with Mr. Israel, Mr. Hakim, Mr. Gonnella, Mr. Massaro and Ms. Coussin each owning the remainder of the voting interests equally (approximately 15% of such voting interests each). Each of our Founder, Mr. Israel, Mr. Hakim, Mr. Gonnella, Mr. Massaro and Ms. Coussin will provide an irrevocable voting proxy to ManagementCo with respect to any shares of our common stock which they own or over which they hold the power to vote. 

(5) Our investment professionals and certain other employees will continue to own interests in CompCo. As described in "Business— Advisory Fees and Compensation—Allocation of Performance Fee Revenue," generally we pay our investment professionals and certain other employees our performance fees remaining after payment by PSCM of the Preferred Performance Fee to us. See "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Variable Compensation Agreement and Subordinated Profits Interest." 

(6) Represents a profits interest substantially economically equivalent to the current contractual entitlement under the VCA. See "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Variable Compensation Agreement and Subordinated Profits Interest." 

(7) Our Founder will own % of CompCo and % of PS Partner Group.

(8) Each of the Strategic Investors will continue to own an interest of 2% or less in our business.

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(9) The private placement investors will own % of our shares of common stock. 

(10)<br> Certain wholly owned intermediate holding companies are not depicted in the structure chart.

(11) Generally, the General Partner or the Managing Member, as the case may be, has all rights and powers to manage and administer the business and affairs of the relevant entity; and the Limited Partners or the non-managing Members, as the case may be, generally have no voting or approval rights, except with respect to limited minority protection rights as set forth in the applicable organizational document. 

#### Implications of Being a Controlled Company
Following the combined transaction, ManagementCo will continue to control a simple majority of the voting power of shares eligible to vote on matters submitted to the vote of our stockholders and, accordingly, will generally control the outcome of all matters requiring the approval of our stockholders, including the election of our directors, the amendment of our articles of incorporation and bylaws and significant corporate transactions such as a change in control, merger, consolidation or sale of assets. As a result, we will be a "controlled company" within the meaning of the corporate governance standards of the NYSE. We have chosen to be a controlled company because we believe that it will protect our firm from change of control events, such as the risk that changes in the ownership of our voting securities could be deemed to have resulted in an "assignment" of our investment management agreements under the 1940 Act or the Investment Advisers Act of 1940, as amended (the "Advisers Act"), or a "change of control" under the indentures governing the senior notes of PSH.

Under the NYSE corporate governance standards, a company of which more than 50% of the voting power is beneficially owned by an individual, group or another company is a "controlled company" and may elect not to comply with certain corporate governance standards, including the requirements that (1) a majority of its board of directors consist of independent directors, (2) its board of directors have a compensation committee that is composed entirely of independent directors with a written charter addressing the committee's purpose and responsibilities and (3) its board of directors have a nominating and corporate governance committee that is composed entirely of independent directors with a written charter addressing the committee's purpose and responsibilities.

We do not intend to rely on these exemptions from certain corporate governance standards although we are permitted to do so. At the time of the combined offering, a majority of our board of directors will consist of independent directors and our Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee each will be composed entirely of independent directors.

#### Implications of Being an Emerging Growth Company
As a company with less than $1.235 billion in revenue during our most recently completed fiscal year prior to the initial filing date of the registration statement of which this prospectus forms a part, we qualify as an "emerging growth company" as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"), as modified by the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As an emerging growth company, we may take advantage of specified reduced disclosure and other requirements that are otherwise applicable generally to public companies that are not emerging growth companies. These provisions include:

&nbsp;&nbsp;&nbsp;&nbsp;• presentation of only two years of audited financial statements and only two years of related management's discussion and analysis of financial condition and results of operations in this prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;• reduced disclosure about our executive compensation arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;• no non-binding stockholder advisory votes on executive compensation or golden parachute arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;• exemption from any requirement of the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis); and

&nbsp;&nbsp;&nbsp;&nbsp;• exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting.

We may take advantage of these exemptions for up to five years or such earlier time that we are no longer an emerging growth company. We will cease to be an emerging growth company upon the earliest of: (1) the end of the fiscal year following the fifth anniversary of the combined offering; (2) the first fiscal year after our

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annual gross revenues are $1.235 billion or more; (3) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt securities; or (4) the date on which we are deemed to be a "large accelerated filer" under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We have taken advantage of reduced disclosure regarding executive compensation arrangements and the presentation of certain historical financial information in this prospectus, and we may choose to take advantage of some but not all of these reduced disclosure obligations in future filings. If we do, the information that we provide stockholders may be different from what you might get from other public companies in which you hold stock.

The JOBS Act permits an emerging growth company like us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We have elected to use this extended transition period until we are no longer an emerging growth company or until we affirmatively and irrevocably opt out of the extended transition period. Accordingly, this election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies. When a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, will adopt the new or revised standard at the time private companies adopt the new or revised standard, unless early adoption is permitted by the standard. As a result, our consolidated financial statements may not be comparable to the financial statements of companies that comply with new or revised accounting pronouncements as of public company effective dates.

#### Investment Risks
An investment in shares of our common stock involves substantial risks and uncertainties that may adversely affect our business, financial condition and results of operations. Some of the more significant challenges and risks relating to an investment in our company include, among other things, the following:

&nbsp;&nbsp;&nbsp;&nbsp;• Difficult global market, economic or geopolitical conditions may materially adversely affect our investment performance and our business.

&nbsp;&nbsp;&nbsp;&nbsp;• A period of economic slowdown, which may occur across one or more industries, sectors or geographies, has contributed and could in the future create operating performance challenges for certain of our funds' investments, which could adversely affect our operating results and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;• We depend on our Founder, Chief Investment Officer, and other key personnel and the loss of their services would have a material adverse effect on our business, results and financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;• We are substantially dependent upon our investment management agreements with PSH and PSUS, each of which may be terminated under certain circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;• We are also dependent upon the HHH Services Agreement, which may be terminated under certain circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;• An investment in our common stock is not an investment in our funds or HHH, and their returns should not be considered as indicative of any returns expected on our common stock, although poor investment performance by our funds or HHH could have a materially adverse impact on our revenues and, therefore, the returns on our common stock.

&nbsp;&nbsp;&nbsp;&nbsp;• We could be financially harmed by employee misconduct and damage to our reputation.

&nbsp;&nbsp;&nbsp;&nbsp;• Extensive regulation of our business affects our activities and creates the potential for significant liabilities and penalties. The possibility of increased regulatory focus could result in additional burdens on our business.

&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to substantial risks of litigation and regulatory proceedings and may face significant liabilities and damage to our professional reputation as a result of litigation and regulatory proceedings and negative publicity.

&nbsp;&nbsp;&nbsp;&nbsp;• No public market for our common stock currently exists, and an active trading market for our common stock may never develop or be sustained after the combined offering. Following the combined offering, our stock price may fluctuate significantly.

&nbsp;&nbsp;&nbsp;&nbsp;• ManagementCo controls us and its interests may conflict with ours or yours in the future.

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&nbsp;&nbsp;&nbsp;&nbsp;• The disproportionate voting rights of ManagementCo will have the effect of concentrating voting control with ManagementCo, will limit or preclude your ability to influence corporate matters and may have a potential adverse effect on the price of our common stock.

&nbsp;&nbsp;&nbsp;&nbsp;• Our share structure involving a Special Voting Share differs from a more typical multi-class capital structure.

&nbsp;&nbsp;&nbsp;&nbsp;• You may have additional difficulty determining liability and monetary damages for claims brought under the liability provisions of the Securities Act in connection with the combined offering.

Please see "Risk Factors" for a more fulsome discussion of these and other factors you should consider before making an investment in shares of our common stock. Please also refer to the matters described under the heading "Risk Factors" in the accompanying PSUS Prospectus with respect to various material risks related to an investment in PSUS Shares.

#### Corporate Information
Pershing Square Holdco, L.P. is a Delaware limited partnership. Prior to the effectiveness of each of the registration statement of which this prospectus forms a part and the PSUS Registration Statement, Pershing Square Holdco, L.P. will convert into a Nevada corporation pursuant to a statutory conversion and change its name to Pershing Square Inc. Our principal executive offices are located at 787 Eleventh Avenue, 9th Floor, New York, New York 10019 and our telephone number is +1 (212) 813-3700. We maintain a website at . The information on, or accessible from, our website is not part of this prospectus by reference or otherwise.

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#### THE OFFERING

#### Common stock offered by Pershing Square Inc.
This offering and the PSUS IPO are component parts of a single offering, which we refer to as the "combined offering." We currently expect to deliver to each initial investor in the PSUS IPO, for no additional consideration, 20 shares of our common stock for every 100 PSUS Shares purchased in the PSUS IPO, including any PSUS Shares acquired by the underwriters in connection with the exercise of their option to purchase additional PSUS Shares as described in the accompanying PSUS Prospectus.

PSUS has secured $2.8 billion in commitments (which includes the $100 million common shares investment we have agreed to make) from a number of qualified investors (the "private placement investors") consisting of U.S. and international institutional investors, including family offices (30%), pension funds (25%), insurance companies (22%), ultra-high-net-worth investors (12%) and other investors (11%), that have agreed to acquire an aggregate of 55.6 million PSUS Shares at a price of $50.00 per share in a private placement transaction (the "PSUS Private Placement") exempt from registration under the Securities Act. We will deliver to each private placement investor, for no additional consideration, 30 shares of our common stock for every 100 PSUS Shares purchased in the PSUS Private Placement, for an aggregate of 16.7 million shares of our common stock, in a private placement transaction exempt from registration under the Securities Act (the "PS Private Placement" and together with the PSUS Private Placement, the "combined private placement"). We refer to the combined private placement and the combined offering together as the "combined transaction." The agreements with the private placement investors provide that the combined private placement will be settled concurrently with, and will be contingent upon, the closing of the combined offering and the satisfaction of other customary closing conditions.

No fractional shares of our common stock will be delivered in the combined transaction. If an initial investor in the PSUS IPO or a private placement investor in the PSUS Private Placement would be entitled to receive a fractional interest in a share of our common stock, we will round down to the nearest whole number of shares to be issued to such investor.

#### Common stock outstanding after giving effect to the combined transaction
400,000,000 shares. As described in "Summary— Reorganization Transactions," the issuance of shares of our common stock to the initial investors in the PSUS IPO and the private placement investors in the PSUS Private Placement will be accompanied by a contribution to us of an equal number of shares of our

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common stock by PS Partner Group and our other pre-IPO owners, excluding the Strategic Investors, to whom we refer as the "pre-IPO management owners." Accordingly, although the combined transaction will result in a decrease in the ownership of our common stock by the pre-IPO management owners, on the one hand, and an increase in the ownership by the initial investors in the combined transaction, on the other hand, it will not result in any change in the total number of our shares of common stock outstanding. See "Summary—Reorganization Transactions" for additional information.

#### Use of proceeds
The combined transaction will not result in any proceeds to Pershing Square Inc. In the combined offering, we are issuing shares of our common stock to the initial investors in the PSUS IPO for no additional consideration and, for the avoidance of doubt, 100% of the net proceeds of the PSUS IPO will be received by PSUS. See the accompanying PSUS Prospectus for more information on the use of the net proceeds from the PSUS IPO by PSUS. Similarly in the combined private placement, we are issuing shares of our common stock to the private placement investors in the PSUS Private Placement for no additional consideration and, for the avoidance of doubt, 100% of the net proceeds of the PSUS Private Placement will be received by PSUS.

#### Voting rights
Holders of our common stock are entitled to one vote for each share held of record on all matters on which stockholders are entitled to vote generally.

Upon completion of the combined transaction, ManagementCo will initially have voting power over % of our outstanding common stock (or % if underwriters in the PSUS IPO exercise in full their option to purchase additional PSUS Shares as described in the accompanying PSUS Prospectus). In addition, ManagementCo will hold a Special Voting Share that will have voting power (which shall in no event be less than one vote) equal to that number of votes required, when taken together with the aggregate voting power of the shares of our common stock over which ManagementCo then has voting power, to give ManagementCo a majority of the aggregate voting power of the Special Voting Share and the then-outstanding shares of common stock. Because ManagementCo will initially have voting power in excess of a simple majority of the voting power of the outstanding shares of our common stock, the Special Voting Share will initially provide only a single additional vote to ManagementCo. The Special Voting Share will provide ManagementCo with additional voting power only in the event the shares of our common stock over which ManagementCo has voting power decrease in the future below a simple majority of the voting power.

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We believe this voting arrangement will protect our firm from change of control events, such as the risk that changes in the ownership of our voting securities could be deemed to have resulted in an "assignment" of our investment management agreements under the 1940 Act or the Advisers Act or a "change of control" under the indentures governing the senior notes of PSH. See "Summary—Implications of Being a Controlled Company" and "Description of Capital Stock—Preferred Stock—Special Voting Share."

#### Dividend policy
The declaration, amount and payment of any dividends or other distributions in the future will be made at the sole discretion of our board of directors in accordance with applicable law and we may reduce or discontinue entirely the payment of such dividends or other distributions at any time. Our board of directors may take into account, among other things, our results of operations, cash requirements, financial condition, contractual restrictions and other factors that our board of directors may deem relevant. See "Dividend Policy."

#### Controlled company
Upon completion of the combined transaction, ManagementCo will initially have voting power over % of our outstanding common stock (or % if the underwriters in the PSUS IPO exercise in full their option to purchase additional PSUS Shares as described in the accompanying PSUS Prospectus). As a result, we will be a "controlled company" under the corporate governance standards of the NYSE. Although as a controlled company, we qualify for exemptions from certain corporate governance requirements of the NYSE, we do not intend to rely on such exemptions. See "Summary—Implications of Being a Controlled Company" and "Description of Capital Stock—Preferred Stock—Special Voting Share" for additional information.

#### Risk factors
See "Risk Factors" for a discussion of risks you should carefully consider before deciding to invest in our common stock.

#### Trading symbol
"PS."

In this prospectus, unless otherwise indicated, the number of shares of common stock outstanding and the other information based thereon does not reflect the 20,000,000 shares of common stock that are available for award under our equity incentive plan (the "Equity Incentive Plan"). See "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Equity Incentive Plan."

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#### Summary Historical and Pro Forma Consolidated Financial Information
The following table presents (i) the summary historical consolidated financial and other data for Pershing Square Holdco, L.P. and its consolidated subsidiaries and Pershing Square Capital Management, L.P., the predecessor reporting entity of Pershing Square Holdco, L.P., and its consolidated subsidiaries and (ii) the summary pro forma consolidated financial and other data for Pershing Square Inc. and its consolidated subsidiaries for the periods and at the dates indicated.

We derived the summary historical consolidated statements of operations and cash flow data for the years ended December 31, 2024 and 2025 and the summary historical consolidated statements of financial condition data as of December 31, 2024 and 2025 from the audited consolidated financial statements of Pershing Square Holdco, L.P. included elsewhere in this prospectus.

Our historical results are not necessarily indicative of the results that may be expected for any future period. You should read the summary historical consolidated financial data below, together with the consolidated financial statements and related notes thereto, as well as "Capitalization," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the other financial information included elsewhere in this prospectus.

We derived the summary unaudited pro forma condensed consolidated financial data of Pershing Square Inc. presented below from our unaudited pro forma condensed consolidated financial statements included elsewhere in this prospectus. The summary unaudited pro forma condensed consolidated statement of operations data for the year ended December 31, 2025 gives effect to the transactions described under "Unaudited Pro Forma Consolidated Financial Information" as if they had occurred on January 1, 2025. The summary unaudited pro forma condensed consolidated statement of financial condition data as of December 31, 2025 gives effect to the transactions described under "Unaudited Pro Forma Consolidated Financial Information," except for the Howard Hughes Transaction, as if they had occurred on December 31, 2025. The capital raised through the combined transaction is not readily determinable until the date of pricing of the PSUS IPO, which impacts the accounting for certain transaction accounting adjustments presented in the unaudited pro forma condensed consolidated financial information. Therefore, we have contemplated the effects of the combined transaction under two scenarios: (i) Scenario 1, in which PSUS raises $5 billion of capital through the PSUS IPO and PSUS Private Placement; and (ii) Scenario 2, in which PSUS raises an additional $5 billion through the PSUS IPO and PSUS Private Placement, for an aggregate capital raise of $10 billion. The following summary unaudited condensed consolidated pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the operating results or financial position that would have occurred if the relevant transactions had been consummated on the dates indicated, nor is it indicative of future operating results or financial position. See "Unaudited Pro Forma Consolidated Financial Information."

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Pershing Square Holdco, L.P.<sup>(1)</sup>** | **Pershing Square Holdco, L.P.<sup>(1)</sup>** | **Pershing Square Inc.**  | **Pershing Square Inc.**  |
|  | **Audited Historical** | **Audited Historical** | **Unaudited Pro Forma**  | **Unaudited Pro Forma**  |
|  | **Year Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,** <br>**2025**  | **Year Ended December 31,** <br>**2025**  |
| **(in thousands)** | **2024** | **2025** | **Year Ended December 31,** <br>**2025**  | **Year Ended December 31,** <br>**2025**  |
|  |  |  | **Scenario 1** <br>**$5 Billion** <br>**PSUS** <br>**IPO and** <br>**PSUS** <br>**Private** <br>**Placement** | **Scenario 2** <br>**$10 Billion** <br>**PSUS** <br>**IPO and** <br>**PSUS** <br>**Private** <br>**Placement**  |
| **Summary Statement of Operations Data:**<br>|  |  |  |  |
| Revenue<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Management fees | &nbsp;&nbsp;&nbsp;$206067 | &nbsp;&nbsp;&nbsp;$230420 | &nbsp;&nbsp;$328995 | &nbsp;&nbsp;$428995 |
| &nbsp;&nbsp;&nbsp;&nbsp;Performance fees<sup>(2)</sup> | &nbsp;&nbsp;&nbsp;249431 | &nbsp;&nbsp;&nbsp;532088 | &nbsp;&nbsp;&nbsp;&nbsp;512088 | &nbsp;&nbsp;&nbsp;&nbsp;492088 |
| Total revenue | &nbsp;&nbsp;&nbsp;455498 | &nbsp;&nbsp;&nbsp;762508 | &nbsp;&nbsp;&nbsp;&nbsp;841083 | &nbsp;&nbsp;&nbsp;&nbsp;921083 |
| Expenses<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit-sharing partner compensation<sup>(2)</sup> | &nbsp;&nbsp;&nbsp;339133 | &nbsp;&nbsp;&nbsp;459079 | &nbsp;&nbsp;&nbsp;&nbsp;932630 | &nbsp;&nbsp;1005406 |
| &nbsp;&nbsp;&nbsp;&nbsp;Affiliates fee rebate | &nbsp;&nbsp;&nbsp;69301 | &nbsp;&nbsp;&nbsp;77580 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense | &nbsp;&nbsp;&nbsp;50812 | &nbsp;&nbsp;&nbsp;42074 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44988 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44988 |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee compensation and benefits | &nbsp;&nbsp;&nbsp;13164 | &nbsp;&nbsp;&nbsp;20228 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20228 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20228 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | &nbsp;&nbsp;&nbsp;&nbsp;2778 | &nbsp;&nbsp;&nbsp;&nbsp;2301 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2301 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2301 |
| Total expenses | &nbsp;&nbsp;&nbsp;475188 | &nbsp;&nbsp;&nbsp;601262 | &nbsp;&nbsp;1000147 | &nbsp;&nbsp;1072923 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Pershing Square Holdco, L.P.<sup>(1)</sup>** | **Pershing Square Holdco, L.P.<sup>(1)</sup>** | **Pershing Square Inc.**  | **Pershing Square Inc.**  |
|  | **Audited Historical** | **Audited Historical** | **Unaudited Pro Forma**  | **Unaudited Pro Forma**  |
|  | **Year Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,** <br>**2025**  | **Year Ended December 31,** <br>**2025**  |
| **(in thousands)** | **2024** | **2025** | **Year Ended December 31,** <br>**2025**  | **Year Ended December 31,** <br>**2025**  |
|  |  |  | **Scenario 1** <br>**$5 Billion** <br>**PSUS** <br>**IPO and** <br>**PSUS** <br>**Private** <br>**Placement** | **Scenario 2** <br>**$10 Billion** <br>**PSUS** <br>**IPO and** <br>**PSUS** <br>**Private** <br>**Placement**  |
| Operating income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19690) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;161246 | &nbsp;&nbsp;&nbsp;(159064) | &nbsp;&nbsp;&nbsp;(151840) |
| Other income (expenses)<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on HHH shares held at fair value | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110700 | &nbsp;&nbsp;&nbsp;&nbsp;110700 | &nbsp;&nbsp;&nbsp;&nbsp;110700 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28508 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16910  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4331 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4331 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on investment in Pershing Square, L.P. held at fair value<sup>(2)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6986 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12224 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12224 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12224 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5667 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5241 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5241 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5241 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3096) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2302) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8380) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8380) |
| Total non-operating income (expenses) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38065 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;142773 | &nbsp;&nbsp;&nbsp;&nbsp;124116 | &nbsp;&nbsp;&nbsp;&nbsp;124116 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) before taxes | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18375  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;304019 | &nbsp;&nbsp;&nbsp;&nbsp;(34948) | &nbsp;&nbsp;&nbsp;&nbsp;(27724) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15985 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22309 | &nbsp;&nbsp;&nbsp;&nbsp;(34308) | &nbsp;&nbsp;&nbsp;&nbsp;(34474) |
| Net income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2390 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;281710 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(640) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6750 |
| &nbsp;&nbsp;Net (income) loss attributable to non-controlling interest<sup>(2)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16541) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31933) | &nbsp;&nbsp;&nbsp;&nbsp;(31933) | &nbsp;&nbsp;&nbsp;&nbsp;(31933) |
| Net income (loss) attributable to Pershing Square Holdco, L.P. | $(14151) | $249777 | $(32573) | $(25183) |
| **Summary Statement of Financial Condition Data (at period end):**<br>|  |  |  |  |
| Cash and cash equivalents | &nbsp;&nbsp;&nbsp;&nbsp;$964857 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$55398 | &nbsp;&nbsp;&nbsp;&nbsp;$16701 | &nbsp;&nbsp;&nbsp;&nbsp;$16701 |
| Total assets | &nbsp;&nbsp;&nbsp;1318793 | &nbsp;&nbsp;&nbsp;1701202 | &nbsp;&nbsp;1793449 | &nbsp;&nbsp;1793449 |
| Total debt | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34800 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34800 | &nbsp;&nbsp;&nbsp;&nbsp;134100 | &nbsp;&nbsp;&nbsp;&nbsp;134100 |
| Total liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;351534 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;622089 | &nbsp;&nbsp;&nbsp;&nbsp;795767 | &nbsp;&nbsp;&nbsp;&nbsp;795767 |
| Total partners' capital | &nbsp;&nbsp;&nbsp;&nbsp;$967258 | &nbsp;&nbsp;$1079113 | &nbsp;&nbsp;$997682 | &nbsp;&nbsp;$997682 |
| **Summary Statement of Cash Flows Data:**<br>|  |  |  |  |
| Net cash provided by (used in) operating activities | &nbsp;&nbsp;&nbsp;&nbsp;$294481 | &nbsp;&nbsp;&nbsp;$(134233) |  |  |
| &nbsp;&nbsp;Net cash provided by (used in) investing activities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1558) | &nbsp;&nbsp;&nbsp;&nbsp;(607679) |  |  |
| Net cash provided by (used in) financing activities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;667399 | &nbsp;&nbsp;&nbsp;&nbsp;(167546) |  |  |
| **Summary Other Financial and Operational Data:<sup>(3)</sup>**<br>|  |  |  |  |
| &nbsp;&nbsp;Assets Under Management (at period end) | $17090738 | $30665570 |  |  |
| Fee-Paying Assets Under Management (at period end) | &nbsp;&nbsp;14010882 | &nbsp;&nbsp;20659723 |  |  |
| Permanent Capital AUM (at period end) | &nbsp;&nbsp;13011230 | &nbsp;&nbsp;19787024  |  |  |
| Fee-Related Earnings | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;269139 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;297925 |  |  |
| Distributable Earnings | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;294552 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;312533 |  |  |

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(1)<br> For periods prior to May 31, 2024, the historical financial results presented of Pershing Square Holdco, L.P. reflect the financial results of its predecessor reporting entity, Pershing Square Capital Management, L.P.

(2) Includes amounts attributable to consolidated variable interest entities ("VIEs") for which Pershing Square Holdco, L.P. does not have any direct equity interests.

(3) See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Operating Metrics" and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures" for additional information regarding our use of these metrics and data and a reconciliation of distributable earnings and fee-related earnings to the most directly comparable financial measure calculated in accordance with GAAP.

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#### RISK FACTORS
*An investment in shares of our common stock involves risks. You should carefully consider the following information about these risks, together with the other information contained in this prospectus, before investing in shares of our common stock. The disclosures in this section reflect our beliefs and opinions as to factors that could materially and adversely affect us in the future. References to past events are provided by way of example only and are not intended to be a complete listing or a representation as to whether or not such factors have occurred in the past. Please also refer to the matters described under the heading "Risk Factors" in the accompanying PSUS Prospectus with respect to various material risks related to an investment in PSUS Shares.* 

#### Risks Related to Our Business and Industry

#### Difficult global market, economic or geopolitical conditions may materially adversely affect our investment performance and our business.
The success and growth of our business are highly dependent upon conditions in the global financial markets and economic and geopolitical conditions throughout the world that are outside of our control and difficult to predict. Our revenue is comprised, in part, of management fees based on the Net Asset Value of our funds and the market capitalization of HHH. Declines in the value of the investments held by our funds or HHH may reduce the fees we earn and, in turn, have a material adverse effect on our revenues. See "—Risks Relating to Our Funds and HHH and Our Investment Strategy—*Poor performance of our funds and our other investment vehicles would cause a decline in our revenues, results of operations and cash flows*" and "—*Decreases in the market capitalization of HHH would cause a decline in our assets, revenues, results of operations and cash flows*."

Factors such as economic slowdowns, equity prices, equity market volatility, asset or market correlations, interest rates, inflation, counterparty risks, availability of credit, economic uncertainty, changes in laws or regulation (including laws relating to the financial markets generally or the taxation or regulation of asset managers), trade barriers and tariffs, disease, supply chain pressures, commodity prices, currency exchange rates and controls, heightened geopolitical tensions, governmental instability or dysfunction, wars or other armed conflicts, terrorist acts (including cyberterrorism), major or prolonged power outages or network interruptions, pandemics or severe public health events, the effects of climate change and changes in law and/or regulation, and uncertainty regarding government and regulatory policy can have a material impact on the value of the investments held by our funds or HHH or our general ability to conduct business. Difficult market, economic and geopolitical conditions can negatively impact those valuations and our ability to conduct business, which in turn would reduce or even eliminate our revenues and profitability, thereby having a material adverse effect on our business, financial condition or results of operations. For example, geopolitical instability has in recent years become more prevalent. The ongoing conflicts in Eastern Europe and the Middle East, and the global responses thereto, have contributed, and may continue to contribute to volatility in the global financial markets, which may adversely impact the performance of our funds' investments and/or our ability to selectively expand into complementary businesses.

As our funds primarily invest in publicly traded equity securities, stock market volatility, including a sharp decline in the stock market may adversely affect our results, including our revenues and net income. Moreover, in the pursuit of our core investment strategy, our funds typically invest the substantial majority of their capital in a limited number of core investments, thereby making their unrealized mark-to-market valuations particularly sensitive to sharp changes in the price of any of these positions. Further, although the equity markets are not the only markets in which we invest, should we experience another period of challenging equity markets, our funds may experience increased difficulty in realizing value from investments.

***A period of economic slowdown, which may occur across one or more industries, sectors or geographies, has contributed and could in the future create operating performance challenges for certain investments held by our funds or HHH, which could adversely affect our operating results and cash flows.***

Despite overall resilience in some geographies, many global economies have in recent years experienced periods of deceleration. Further economic deceleration or contraction in the rate of global growth in certain industries, sectors or geographies, including as a result of the ongoing conflicts in Eastern Europe and the Middle East, and any global responses thereto, as discussed above, may contribute to poor financial results at the companies in which our funds and HHH invest, which may result in lower investment returns for our funds and HHH. For example, periods of economic weakness have contributed and may in the future contribute to decreased consumer demand for certain

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goods and services, which could have an adverse effect on certain investments held by our funds or HHH. The performance of these portfolio companies would also likely be negatively impacted if pressure on wages and other inputs increasingly pressures profit margins. To the extent the performance of those companies (as well as valuation multiples) does not improve, our funds may exit positions at values that are less than we projected or even at a loss, thereby significantly affecting investment performance. In addition, as our funds typically invest the substantial majority of their capital in a limited number of core investments, we may have outsized exposure to particular sectors or regions, which can exacerbate the impact on our funds of an economic slowdown in such sectors or regions. See "—Risks Relating to Our Funds and HHH and Our Investment Strategy—*Our funds and our other investment vehicles are exposed to a concentration of investments, which can exacerbate volatility and investment risk.*"

***We depend on our Founder, Chief Investment Officer and other key personnel and the loss of their services would have a material adverse effect on our business, results and financial condition.***

The success of our business depends on the efforts, judgment, skill and personal reputations of our Founder and Chief Executive Officer, Mr. Ackman, our Chief Investment Officer, Mr. Israel, and other key personnel. The expertise in investing and risk management of our key personnel, their business contacts and their relationships with investors and third parties are each critical elements in operating and expanding our business. For example, all of the investment decisions of our funds are made by our investment team, with Mr. Ackman having ultimate decision-making authority for all portfolio positions. Mr. Ackman, Mr. Israel and the investment team also rely on the diligence, skill and network of business contacts of our other professionals as well as external advisers and professionals. Accordingly, our success will depend on the continued service of these individuals, who are not obligated to remain employed with us. Although we have historically experienced low turnover, senior investment professionals and other key personnel have left our company in the past and others may do so in the future, and we cannot predict the impact that the departure of any key personnel will have on our ability to achieve our investment objectives.

#### We are substantially dependent upon our investment management agreements with PSH and PSUS, each of which may be terminated under certain circumstances.
PSH represents a significant majority of our assets under management and we expect PSUS to represent a material portion of our assets under management in periods following the combined offering. Accordingly, we are substantially dependent on our investment management agreements with PSH and PSUS.

Our investment management agreement with PSH may be terminated by PSH as of December 31 of each year upon four months' prior notice. In addition, any assignment by us of the PSH investment management agreement under the Advisers Act would require the consent of PSH. PSH is managed by a majority-independent board of directors that is elected by its stockholders (the "PSH Board"). Any decision by the PSH Board to terminate the investment management agreement or to withhold consent to an assignment by us under the Advisers Act would only be effective if 66 2/3% of the voting shares and 66 2/3% of the public shares of PSH support such decision. See "Business—Termination of Investment Management Agreements and HHH Services Agreement and Key Man Protection—PSH." Termination by PSH, or failure to obtain the consent of PSH for any assignment, of our investment management agreement with PSH would have a material adverse effect on our business, financial condition and the results of our operations.

Our Founder and certain of our other employees, together with their affiliates, directly or indirectly hold 28% of the outstanding public shares of PSH as of December 31, 2025. As a result, a decision to terminate the investment management agreement by record holders as of such date would have required the affirmative approval of 93% of the remaining outstanding public shares. As described in "Certain Relationships and Related Person Transactions—Other Transactions—Our Right to Acquire PSH Shares," we will have the right to acquire the shares of PSH held by our Founder and certain of our other current and former employees and their affiliates at any time after the ninth anniversary of the Corporate Conversion and on or prior to the tenth anniversary of the Corporate Conversion. However, if we do not exercise our right to acquire these shares on or before the tenth anniversary of the Corporate Conversion, our Founder and other employees and their affiliates will not be restricted from selling or otherwise transferring their PSH shares after that date. Any sale or transfer of such PSH shares could increase the risk that our investment management agreement with PSH might be terminated.

Our investment management agreement with PSUS may be terminated as a whole at any time by PSUS, without the payment of any penalty, upon the vote of a majority of the PSUS board of trustees (the "PSUS

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Board") or a majority of the outstanding voting securities of PSUS, on 60 days' written notice. Five of the six trustees of the PSUS Board are not "interested persons" of us or PSUS for purposes of Section 2(a)(19) of the 1940 Act and are "independent," as determined by the PSUS Board. Following the PSUS IPO, subject to certain exceptions, the PSUS Board will be elected by PSUS's public shareholders. Pursuant to the requirements of the 1940 Act, at least 40% of the trustees serving on the PSUS Board at any time must not be "interested persons" of us or PSUS. See "Business—Termination of Investment Management Agreements and HHH Services Agreement and Key Man Protection—PSUS" and refer to the accompanying PSUS Prospectus for more detail. In addition, our investment management agreement with PSUS will terminate automatically in the event of its "assignment" (as such term is defined in the 1940 Act). Termination of our investment management agreement with PSUS would have a material adverse effect on our business, financial condition and the results of our operations.

As described under "Summary—Implications of Being a Controlled Company," we have chosen to be a controlled company because we believe that it will protect our firm from change of control events, such as the risk that changes in the ownership of our voting securities could be deemed to have resulted in an "assignment" of our investment management agreements under the 1940 Act or the Advisers Act.

#### We are also dependent upon the HHH Services Agreement, which may be terminated under certain circumstances.
Our revenues depend in part upon the fees earned from HHH in connection with the Howard Hughes Transaction. Accordingly, we are also dependent on the HHH Services Agreement.

The HHH Services Agreement has an initial 10-year term, with successive automatic 10-year renewal terms unless the agreement is terminated or not renewed in accordance with its terms. The HHH Services Agreement may not be terminated by HHH except with the approval of two-thirds of the disinterested members of its board of directors and only under limited prescribed circumstances, such as fraud, misrepresentation or embezzlement by PSCM, or a change in control of HHH, and HHH may only elect not to renew the HHH Services Agreement if the non-renewal is approved by a unanimous vote of the disinterested members of its board of directors and by holders of at least 70% of the outstanding shares of HHH common stock, excluding any shares held by us or our affiliates. See "Business—Termination of Investment Management Agreements and HHH Services Agreement and Key Man Protection" for additional information.

The HHH board of directors, subject to certain exceptions, will be elected by HHH's public stockholders, and we will not be able to fully control the outcome of matters submitted to a vote of HHH's stockholders. See also "—Risks Relating to Our Funds and HHH and Our Investment Strategy—*We are not a majority stockholder in HHH, exposing us to the risk of decisions made by others with whom we may not agree*." As described in "Business—Legal Proceedings," certain alleged stockholders of HHH have filed a complaint in the Delaware Court of Chancery seeking, among other things, a declaratory judgment that the HHH Services Agreement is invalid and unenforceable under the Delaware General Corporation Law and related injunctive relief. Termination by HHH of the HHH Services Agreement, or a determination that it is unenforceable and a failure to reach a new services agreement on substantially the same economic terms, would have a material adverse effect on our business, financial condition and the results of our operations.

***An investment in our common stock is not an investment in our funds or HHH, and their returns should not be considered as indicative of any returns expected on our common stock, although poor investment performance by our funds or HHH could have a materially adverse impact on our revenues and, therefore, the returns on our common stock.***

An investment in shares of our common stock is not an investment in our funds or HHH. The returns on our common stock are not directly linked to the historical or future performance of the funds or other investment vehicles we manage or of HHH. See also "Risks Relating to Our Funds and HHH and Our Investment Strategy—*The historical returns attributable to our funds and HHH, including those presented in this prospectus, should not be considered as indicative of the future results of our funds or HHH or of our future results or of any returns expected on an investment in our common stock*." Even if our funds or HHH experience positive performance and their assets under management increase, holders of our common stock may not experience a corresponding positive return on their shares.

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However, poor performance of our funds will cause a decline in the management fee revenue from such funds and, in some cases, in the performance fee revenue we receive that year, and accordingly, our business, financial condition or results of operations would suffer, thus negatively impacting the price of our common stock. See "—Risks Relating to Our Funds and HHH and Our Investment Strategy—*Poor performance of our funds and our other investment vehicles would cause a decline in our revenues, results of operations and cash flows*." Similarly, poor performance of HHH's stock price could cause a decline in the HHH Variable Management Fee we receive, which could negatively impact our business, financial condition or results of operations or the price of our common stock. See "—Risks Relating to Our Funds and HHH and Our Investment Strategy—*Decreases in the market capitalization of HHH would cause a decline in our assets, revenues, results of operations and cash flows.*"

#### We face intense competition in attracting and retaining talented professionals.
Our investment performance and ability to successfully manage our business is largely dependent on the talents and efforts of highly skilled individuals. Accordingly, our ability to continue to perform effectively in our business and our future success and growth depend on our ability to retain and motivate our active key personnel and to strategically recruit, retain and motivate new talent to the extent necessary. We may not be successful in our efforts to recruit, retain and motivate the required personnel as the global market for qualified investment professionals is extremely competitive. Although we believe our arrangement for the allocation of performance fee revenue, as described in "Business— Advisory Fees and Compensation—Allocation of Performance Fee Revenue" and "Executive Compensation—Narrative Disclosure to Summary Compensation Table—Variable Compensation Agreement," provides substantial incentives to attract and retain talent, poor performance of our funds could reduce the incentive compensation available for our employees. Under our allocation arrangement, our investment professionals and certain other employees are generally entitled to participate in any realized performance fees remaining after payment by PSCM of the Preferred Performance Fee to us. In the event of poor performance of our funds, there may be no realized performance fees, or no realized performance fees in excess of the Company's preferred entitlement, which could materially adversely impact our ability to attract and retain investment professionals and other employees.

#### We face substantial competition in all aspects of our business.
The investment management industry is highly competitive, and investors are increasingly fee sensitive. Our funds and HHH compete against a large number of investment funds and vehicles offered by other investment management companies, investment dealers and banks, and institutions we compete with may have greater infrastructure and financial resources than us. We compete with these firms on the basis of investment performance, diversity of funds and products, scope and quality of services, reputation and the ability to develop and successfully launch new investment strategies to meet the changing needs of investors and generate strong returns. In the case of a new product or strategy, our lack of available long-term records of prior investment performance for such product or strategy may put us at a competitive disadvantage until such records are established. We also may compete against similarly positioned passive strategies. Market demand for index funds and other passive strategies may reduce opportunities for active managers and contribute to fee compression. To the extent current or potential investors decide to invest in funds or products sponsored by our competitors, our business, financial condition or results of operations may be materially adversely affected.

#### We could be financially harmed by employee misconduct and damage to our reputation.
Our business is highly competitive and we benefit from being highly regarded in our industry. We view our reputation as one of our most carefully guarded assets which we believe has enabled us to attract and retain world-class talent to our firm and our portfolio companies and to create opportunities for investment. Negative publicity about us could give rise to reputational risk which could significantly harm our existing business and business prospects.

There is a risk that our employees could engage in misconduct or other behavior that adversely affects our reputation, business and ability to successfully implement our investment strategy and in turn harm the operations and financial condition of our funds or HHH. Our business often requires that we deal with confidential matters relating to our portfolio companies. Additionally, we are subject to a number of obligations and standards arising from our asset management business and our authority over the assets we manage, and it is not always possible to detect or deter employee misconduct. The violation of these obligations, or the accusation of any such

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violation, and standards by any of our key personnel, employees, joint venture partners, consultants or anyone acting on our behalf could materially adversely affect our reputation which could consequently negatively impact the operating performance of our funds or HHH and the price of our common stock.

While we believe we have effective policies and procedures in place designed to deter and detect employee misconduct, the steps we have taken may not be effective in all cases. If any of our employees were to engage in misconduct or were to be accused of such misconduct, whether or not substantiated, our business and reputation could be adversely affected and a loss of investor confidence could result, which would harm our funds or HHH and, consequently, harm us. We could also be subject to litigation, regulatory investigations or sanctions and suffer serious harm to our reputation, financial position and current and future business relationships as a result of this employee misconduct. In addition, a prolonged period of remote work, such as the one experienced during the COVID-19 pandemic, may require us to develop and implement additional precautions in order to detect and prevent employee misconduct. Such additional precautions, which may include the implementation of security and other restrictions, may make our systems more difficult and costly to operate and may not be effective in all cases in preventing employee misconduct in a remote work environment.

***Extensive regulation of our business affects our activities and creates the potential for significant liabilities and penalties. The possibility of increased regulatory focus could result in additional burdens on our business.***

Our business is subject to extensive regulation, including periodic examinations, inquiries and investigations, by governmental agencies and self-regulatory organizations in the jurisdictions in which we operate around the world. As a public company subject to the registration and reporting provisions of the Exchange Act, we will be subject to regulation and oversight by the SEC. In addition, PSCM is registered as an investment adviser under the Advisers Act and subject to regulation by the SEC and registered with the Commodity Futures Trading Commission (the "CFTC") as a commodity pool operator and subject to regulation by the CFTC. These and other authorities have regulatory powers dealing with many aspects of financial services, including the authority to grant, and in specific circumstances to cancel, permissions to carry on particular activities. Many of these regulators, including U.S. and foreign government agencies and self-regulatory organizations, as well as state securities commissions in the United States, are also empowered to conduct examinations, inquiries, investigations and administrative proceedings that can result in fines, suspensions of personnel, changes in policies, procedures or disclosure or other sanctions, including censure, the issuance of cease-and-desist orders, the suspension or expulsion of a broker-dealer or investment adviser from registration or memberships, a requirement to cease operating as an investment adviser to certain types of funds, or the commencement of a civil or criminal lawsuit against us or our personnel.

We are subject to U.S. and foreign laws related to trade controls and the prevention of financial crime, including anti-corruption and anti-bribery laws, such as the U.S. Foreign Corrupt Practices Act ("FCPA"), anti-money laundering laws, and economic sanctions. Anti-money laundering and anti-terrorist financing ("AML/CFT") laws may impose certain regulatory obligations, including as relates to disclosure of certain information to relevant governmental authorities. For instance, the U.S. Corporate Transparency Act and its implementing regulations (collectively, the "CTA") went into effect January 1, 2024 and requires certain legal entities to report beneficial ownership information to the U.S. Department of the Treasury's Financial Crimes Enforcement Network ("FinCEN"), though due to various ongoing litigation, legislative, and regulatory efforts, the go-forward enforceability of the CTA and scope of the CTA's reporting requirements are somewhat unclear. Additionally, in August 2024, FinCEN issued a final rule that will, effective January 1, 2026, require certain investment advisers, including registered investment advisers, to, among other measures, adopt an AML/CFT program, file certain reports (such as suspicious activity reports) with FinCEN, and maintain certain associated records. Further, on May 21, 2024, FinCEN and the SEC issued a proposed rule that would require certain investment advisers to establish, document, and maintain customer identification programs, though as of the date of this prospectus, it is unclear when this rulemaking will be finalized.

Economic sanction laws in the United States and other jurisdictions may prohibit transacting with or in certain countries and with certain individuals and companies. In the United States, the U.S. Department of the Treasury's Office of Foreign Assets Control ("OFAC") administers and enforces laws, Executive Orders and regulations establishing U.S. economic and trade sanctions which prohibit, among other things, transactions with, and the provision of services to, certain foreign countries, territories, entities, and individuals. Further, the U.S. Treasury Department's Outbound Investment Security Program, which became effective on January 2, 2025, provides for a targeted national security regulatory framework directed at controlling outbound investment

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activities from the United States in certain sectors that pose a threat to national security, including the semiconductors and microelectronics, quantum information technologies and artificial intelligence sectors in the People's Republic of China (PRC), Hong Kong and Macau (collectively, "China"). The framework imposes notification requirements and prohibitions on specified investments activities. As a result of these types of sanctions and restrictions, we may incur delays and costs or be altogether prohibited from making a particular investment, all of which could adversely affect our ability to meet our investment objectives.

While we have policies and procedures designed to ensure compliance by us and our personnel with applicable trade controls and financial crimes laws, such policies and procedures may not be effective in all instances to prevent violations. Any determination that we have violated such laws could subject us to, among other things, civil and criminal penalties or material fines, profit disgorgement, injunctions on future conduct, securities litigation, and reputational harm or a general loss of investor confidence, any one of which could adversely affect our business prospects, financial position or the price of our common stock. Additionally, anti-corruption, anti-money laundering, economic sanctions, and other financial crimes and trade control laws imposed by non-U.S. jurisdictions, such as EU and UK sanctions or blocking statutes and the UK Bribery Act, may also impose stricter or more onerous requirements than those imposed by the United States, and complying with such requirements may disrupt our business or cause us to incur significantly more costs to comply with those laws. Different laws may also contain conflicting provisions, making compliance with all laws more difficult.

The financial services industry in recent years has been the subject of heightened scrutiny. In recent years, the SEC staff's stated examination priorities and published observations from examinations have included investment management firms' collection of fees and allocation of expenses, their marketing and valuation practices and the existence of, and adherence to, policies and procedures with respect to conflicts of interest, among other topics. Any additional rulemaking by the SEC may result in material alterations to how we operate our business. There can be no assurance that any new SEC or other regulatory rules and amendments will not have a material adverse effect on us, our funds or HHH or their investors.

In addition, prior to the launch of PSUS, we did not have experience managing a fund registered under the 1940 Act, which imposes additional obligations on a registered fund's manager. Should we not succeed in meeting those obligations, the risk of regulatory action or sanction, which could adversely impact our reputation, would be heightened.

We are also subject from time to time to requests for information, inquiries and informal or formal investigations by the SEC and other regulatory authorities, with which we routinely cooperate. Such investigations have previously and may in the future result in penalties and other sanctions. SEC actions and initiatives can have an adverse effect on our financial results, including as a result of the imposition of a sanction, a limitation on our or our personnel's activities or a change in our historic practices. Even if an investigation or proceeding did not result in a sanction, or the sanction imposed against us or our personnel by a regulator were small in monetary amount, the legal costs associated with the investigation may be significant and any adverse publicity relating to the investigation, proceeding or imposition of sanctions could harm our reputation and cause us to lose existing investors or fail to gain new investors.

In addition, certain states and other regulatory authorities have required investment managers to register as lobbyists, and we are currently registered as such in Texas and California and may in the future register in additional jurisdictions. Other states or municipalities may consider similar legislation or adopt regulations or procedures with similar effect. These registration requirements impose significant compliance obligations on registered lobbyists and their employers, which may include annual registration fees, periodic disclosure reports and internal recordkeeping.

#### Changing regulations regarding derivatives and commodity interest transactions could negatively impact our business.
The regulation of derivatives and commodity interest transactions in the United States and other countries is a rapidly changing area of law and is subject to ongoing modification by governmental and judicial action. Our funds and HHH may enter into derivatives transactions for various purposes, including to manage the financial risks related to their investments and businesses. Accordingly, the impact of this evolving regulatory regime on our business and our funds is difficult to predict, but it could be substantial and adverse.

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#### **TABLE OF CONTENTS**
Certain of our funds are registered with the CFTC as commodity pools, and their risk management or other commodities interest-related activities may be subject to CFTC oversight. Certain CFTC rules expose asset management firms, such as us, to increased registration and reporting requirements in connection with transactions in futures, swaps, and other derivatives regulated by the CFTC. Our business may incur increased ongoing costs associated with monitoring compliance with CFTC regulations and complying with the various registration and reporting requirements. In addition, newly instituted and amended regulations could significantly increase the cost of entering into derivative contracts (including through requirements to post collateral, which could negatively impact our available liquidity), materially alter the terms of derivative contracts, reduce the availability of derivatives to protect against risks that we encounter, reduce our ability to restructure existing derivative contracts and increase exposure to less creditworthy counterparties. If we reduce use of derivatives as a result of such regulations (and any new regulations), our results of operations may be adversely impacted.

***We are subject to scrutiny from regulators, elected officials, investors and other stakeholders with respect to environmental, social and governance matters, which may constrain investment opportunities for our funds and harm our brand and reputation.***

We, our funds and other investment vehicles and HHH are subject to scrutiny from regulators, elected officials, investors and other stakeholders with respect to environmental, social and governance ("ESG") matters. We may be subject to competing demands from different investors and other stakeholder groups with divergent views on ESG matters, including the role of ESG in the investment process. For example in recent years, certain investors have placed increasing importance on the impacts of investments made by private funds, while certain other investors have raised concerns as to whether the incorporation of ESG factors in the investment process may be inconsistent with maximizing returns for investors. This divergence in views increases the risk that any action by us or our funds, or lack thereof, with respect to ESG matters, consistent with and subject to our desire to create long-term value for investors and shareholders and applicable legal, regulatory and contractual requirements, will be perceived negatively by at least some stakeholders and adversely impact our reputation and business.

Regulatory initiatives to require asset managers to make disclosures regarding ESG matters have become increasingly common, which may further increase the number and type of investors who place importance on these issues and who demand certain types of reporting from us or our funds, as well as potentially increasing our regulatory and compliance costs. Governmental authorities of certain U.S. states have also requested information from and scrutinized certain asset managers with respect to such managers' ESG policies or involvement in certain alliances or other multi-stakeholder initiatives relating to issues such as climate change and responsible investment. In addition, there has been increased regulatory focus on ESG-related practices by asset managers, particularly with respect to the accuracy of statements made regarding ESG practices, initiatives and investment strategies. Outside of the United States, the European regulatory environment on ESG matters for asset managers and financial services firms similarly continues to evolve and increase in complexity, making compliance more costly and time-consuming.

***Climate change, and climate change and sustainability-related legislation and regulation, business trends and physical impacts, could adversely affect our business and the operations of our funds, and any actions we take or fail to take in response to such matters could damage our reputation.***

We, our funds and HHH face risks associated with climate change including risks related to the impact of climate and sustainability-related legislation and regulation, risks related to business trends on climate change and sustainability, and risks stemming from the physical impacts of climate change.

Climate and sustainability-related regulations or interpretations of existing laws may result in enhanced disclosure obligations, which could negatively affect us and our funds or HHH and materially increase our compliance costs and regulatory scrutiny. For example, in October 2023, California enacted climate disclosure laws that could require us and/or certain of our funds to report on our Scope 1, 2 and 3 greenhouse gas emissions, among other climate-related financial risks and matters.

The European Union ("EU") and the United Kingdom ("UK") have also adopted several initiatives to improve transparency around how asset managers define, measure and disclose the impact of sustainability-related factors on the performance of their funds and financial products, including but not limited to the EU Corporate Sustainability Reporting Directive ((EU) 2022/2464) ("CSRD"), the EU Corporate Sustainability Due Diligence Directive ((EU) 2024/1760) ("CSDDD"), the EU Sustainable Finance Disclosure

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Regulation ((EU) 2022/1288) ("SFDR"), the EU Regulation on the establishment of a framework to facilitate sustainable investment ((EU) 2020/852) (the "Taxonomy Regulation") and the UK Sustainability Disclosure Requirements ("SDR") and investment labels regime. Compliance with any of the foregoing may give rise to substantial costs and failure to comply may result in fines and/or other regulatory sanctions as well as potential civil liability.

To the extent that our funds, other investment vehicles or HHH are offered to investors in the EU or the UK, they may become subject to, respectively, the SFDR and Taxonomy Regulation and/or the UK's SDR and investment labels regime. Such regimes may impose costs on us and may adversely impact our ability to manage our funds and investment vehicles in a profitable manner. In addition, for funds taking into account environmental or social factors other than as they relate to risk management in the investment management of their portfolios, the regulatory requirements under SFDR, the Taxonomy Regulation and the SDR are extensive and prescriptive. Our funds are not currently subject to these more detailed requirements, but if they were to become so, additional costs would result which may decrease the earnings of Pershing Square Inc.

In November 2025, the European Commission proposed significant changes to the SFDR regime, which are anticipated to come into effect during 2028. There is significant uncertainty as to the final form that such rules could take. Furthermore, companies that are in scope of CSRD are required to provide detailed reporting on an extensive set of ESG data points, including in relation to policies and procedures, sustainability-related risks to, and adverse sustainability impacts caused by, the relevant company. While we and our funds are not currently expected to be in scope of CSRD, certain of our funds' investments may be and there can be no guarantee that we will not be determined to be in scope of CSRD in the future. Similarly, the CSDDD which will apply to in-scope companies from July 26, 2029, imposes requirements on in-scope companies to conduct upstream and limited downstream due diligence on its business partners along its chain of activities in order to identify, assess, prevent, mitigate or cease adverse impacts on human rights and the environment. While our funds are not expected to be in scope of CSDDD, whether we or our subsidiaries are in scope will depend on the level of revenue generated in the EU, and it is possible that certain of our funds' investments will be in scope of CSDDD.

On February 26, 2025, the European Commission proposed an "omnibus simplification package" and, following extensive negotiations between the EU legislators, the final text was published in the Official Journal on February 26, 2026. The changes significantly reduce the scope of application of both CSRD and CSDDD and seek to simplify the sustainability-related disclosure and due diligence obligations therein. Nonetheless, companies in scope of either regime are still expected to be subject to a significant additional compliance burden. Our business may incur increased ongoing costs associated with monitoring developments and assessing whether we fall in scope of these rules. The reduced sustainability reporting contemplated by the proposed omnibus simplification package could potentially also have a negative impact on data availability for SFDR reporting requirements.

In addition to increasing climate and sustainability-related disclosure obligations, initiatives seeking to address climate change through regulation of greenhouse gas emissions have been adopted by, are pending or have been proposed before international and regional regulatory authorities around the world, which could result in, among other risks, changing legal requirements that could result in increased permitting and compliance costs, changes in business operations or the discontinuance of certain operations, litigation seeking monetary or injunctive relief related to climate impacts, a declining market for products and services seen as greenhouse gas intensive or less effective than alternatives in reducing greenhouse gas emissions and risks tied to changing customer or community perceptions of an asset's relative contribution to greenhouse gas emissions. These risks could result in a material adverse effect on the value of certain investments and, therefore, the returns of our funds or HHH. Further, significant chronic or acute physical effects of climate change, including extreme weather events such as hurricanes or floods, can also have an adverse impact on certain of these investments, especially those investments that rely on physical factories, stores, plants or other assets located in the affected areas or that focus on tourism or recreational travel.

Our reputation may be harmed if certain stakeholders believe that we are not adequately or appropriately responding to climate change, including through the way in which we operate our business, the composition of the investments held by our funds and HHH, the new investments made by our funds or HHH or the decisions we make to continue to conduct or change our activities in response to climate change considerations. Moreover,

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we face business trends related to climate change risks. See "—*We are subject to increasing scrutiny from regulators, elected officials, investors and other stakeholders with respect to environmental, social and governance matters, which may constrain investment opportunities for our funds and harm our brand and reputation*."

***Cybersecurity and data protection risks could result in the loss of data, interruptions in our business, and damage to our reputation, and subject us to regulatory actions, increased costs and financial losses, each of which could have a material adverse effect on our business and results of operations.***

Our operations are highly dependent on our technology platforms and other information technology systems (including third-party information technology systems). Such systems face ongoing cybersecurity threats and attacks, which, if successful, could result in the loss of the confidentiality, integrity or availability of such systems and the data held by such systems. Attacks on such systems could involve, and in some instances have in the past involved, attempts intended to obtain unauthorized access to our proprietary information, destroy data, disable, degrade or sabotage our systems, or divert or otherwise steal funds, including through the introduction of computer viruses, "phishing" attempts and other forms of social engineering. Attacks on such systems could also involve ransomware or other forms of cyber extortion. Cyberattacks and other data security threats could originate from a wide variety of external sources, including cyber criminals, nation state hackers, hacktivists and other outside parties. Cyberattacks and other security threats could also originate from the malicious or accidental acts of insiders, such as employees, consultants, independent contractors or other service providers.

There has been an increase in the frequency and sophistication of the cyber and data security threats we face, with attacks ranging from those that are common to many businesses to those that are more advanced and persistent, which may target us because we hold a significant amount of confidential and sensitive information about our investors, our funds and our investments. As a result, we may face a heightened risk of a security breach, ransomware attack or other disruption with respect to this information. Measures we take to ensure the integrity of our systems may not provide adequate protection, especially because cyberattack techniques are continually evolving, may persist undetected over extended periods of time and may not be mitigated in a timely manner to prevent or minimize the impact on us, our funds or our investors. Such attacks also may be enhanced through malicious actors' use of artificial intelligence. Further, the use of remote work environments, mobile technology and virtual platforms as well as geopolitical tensions or conflicts, such as the ongoing conflicts in Eastern Europe and in the Middle East, may create a heightened risk to us of cyberattacks or other data security breaches.

In addition, we could also suffer losses in connection with updates to, or the failure to timely update, our technology platforms. We rely on third-party service providers for certain aspects of our business, including for the administration of certain fund operations, as well as for certain technology platforms, including cloud-based services. See "—Risks Relating to Our Funds and HHH and Our Investment Strategy—*We are reliant on third-party service providers for certain aspects of our business, and are subject to risks in using custodians, counterparties, administrators and other agents*." These third-party service providers also face ongoing cybersecurity threats and the risk of compromises of their systems, and as a result, unauthorized individuals could gain, and in some past instances have gained, access to certain confidential data of their clients.

Breaches in our security or in the security of our third-party service providers, whether malicious in nature or through inadvertent transmittal or other loss of data, could potentially jeopardize the information of our business, including our employees, investors, funds and other investment vehicles, HHH, investments and business partners, that is processed and stored in, and transmitted through, our computer systems, or otherwise cause interruptions or malfunctions in businesses and operations. If our systems or those of our third-party service providers (or our data stored within) are compromised, either as a result of malicious activity or through inadvertent transmittal or other loss of data, or do not operate properly or are disabled, and if this occurs and we fail to provide the appropriate regulatory or other notifications in a timely manner, we could suffer financial loss, increased costs, a disruption of our businesses, liability to our counterparties, funds or investors, regulatory actions (and resulting fines or other penalties), negative publicity or reputational damage. The costs related to cyber or other data security threats or disruptions may not be fully insured or indemnified by other means. Furthermore, any such breach may cause our investors to lose confidence in the effectiveness of our security measures and in us more generally.

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Our portfolio companies also rely on data processing systems and the secure processing, storage and transmission of information, including payment and health information, which in some instances are provided by third parties. The businesses of our portfolio companies, or their national or regional profile, could also expose them to a greater risk than others of being subject to a cyberattack or security breach, which could have material adverse consequences on the value of their investments.

Finally, technology platforms, data and intellectual property are also subject to a heightened risk of theft or compromise to the extent we, our funds or HHH, or their portfolio companies engage in operations outside the United States, in particular in those jurisdictions that do not have comparable levels of legal protection or that require companies to forego certain intellectual property or related rights in order to operate there. Any such direct or indirect compromise of these assets could have a material adverse impact on us and our funds and their investments.

***Use of artificial intelligence technology by us or third parties could lead to the exposure of our data or other adverse effects and such technology also may lead to more effective threat actors.***

Recent technological advances in artificial intelligence ("AI") and machine-learning technologies (collectively, "AI Technologies"), including, for example, the OpenAI ChatGPT application, may create opportunities for us, our funds and our other investment vehicles and HHH, as well as risks. As AI Technologies and their current and potential future applications continue to rapidly evolve, it is not possible to predict the full extent of the current or future risks related to AI Technologies. While the actual use of AI Technologies varies across our business, funds, other investment vehicles and HHH, we continue to evaluate the rapidly evolving landscape of AI Technologies and their attendant risks.

AI Technologies are reliant on the collection and analysis of large amounts of data and complex algorithms. In this respect, it is not possible or practical to incorporate all relevant data into models that AI Technologies utilize, nor do we expect to be involved in the collection of such data or development of algorithms in the ordinary course of our business. Therefore, it is possible that the data in such models may contain a degree of inaccuracy and error, potentially to a material degree, and that such data and algorithms could otherwise be inadequate or flawed, which would likely degrade the effectiveness of AI Technologies and could adversely impact us to the extent we, our funds, our other investment vehicles and HHH, our affiliates and our service providers or other third parties engaged by us rely on the work product of such AI Technologies.

AI Technologies may also be more susceptible to cybersecurity threats given the volume of data they utilize, which, in turn, could make us more susceptible to cybersecurity threats (such as those described under "—*Cybersecurity and data protection risks could result in the loss of data, interruptions in our business, and damage to our reputation, and subject us to regulatory actions, increased costs and financial losses, each of which could have a material adverse effect on our business and results of operations*") to the extent we rely on AI Technologies. Further, we, our funds and HHH could be exposed to risks to the extent third-party service providers or any counterparties use AI Technologies in their business activities notwithstanding any preventative policies aimed at restricting or governing the use of such technologies. We are not able to control the way third-party products are developed, trained or maintained or the way third-party services utilizing AI Technologies are provided to us.

Use of AI Technologies could include the input of our confidential information (including non-public information and personal information) by third parties in contravention of non-disclosure agreements or by our personnel or other related parties in contravention of our policies and procedures and, in each case, could result in such confidential information becoming part of a dataset that is generally accessible by AI Technologies applications and users. The misuse or misappropriation of our data could have an adverse impact on our reputation and could subject us to legal and regulatory investigations and/or actions.

Furthermore, the use of AI Technologies could be affected by claims of infringement, misappropriation or other violations of intellectual property, including based on the use of large datasets used to train AI Technologies or the use of output generated by AI Technologies, in either case which contain or are substantially similar to material protected by intellectual property, including patents, copyrights or trademarks. Moreover, AI Technologies will likely be competitive with certain business practices or increase the obsolescence of certain organizations' products or services (which might include competitiveness with, or contributing to the obsolescence of, other AI Technologies). In addition, AI Technologies could significantly disrupt the markets in

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which we operate, which could have a material effect on our business, financial condition and results of operations. Any such developments could affect any use of our or related third parties' AI Technologies and adversely impact, whether directly or indirectly, our business and funds or HHH.

The legal and regulatory frameworks within which AI Technologies operate also continue to rapidly evolve, and it is impossible to predict the full extent of current or future risks related thereto. Regulations related to AI Technologies, which can have extraterritorial effect, may impose on us certain obligations and costs related to monitoring and compliance. For example, various U.S. states are in the process of enacting (or have already enacted) laws and regulations pertaining to the development, use and training of AI Technologies. At the federal level, the current Presidential Administration issued America's AI Action Plan in July 2025, which includes recommended policy actions to accelerate AI innovation, build American AI infrastructure, and lead in international AI diplomacy and security, and a subsequent December 2025 Executive Order stating the policy of sustaining and enhancing the United States' global AI dominance through a minimally burdensome national policy framework for AI and, among other things, directing the U.S. Attorney General to establish an AI Litigation Task Force to challenge burdensome U.S. state AI laws inconsistent with that policy.

The current Presidential Administration may continue to implement new executive orders and/or other rule making relating to AI Technologies in the future. In the EU, a regulation applicable to certain AI Technologies and the data used to train, test and deploy them (the "EU AI Act") entered into force in August 2024 and its obligations are becoming applicable in phases, the first of which began on February 2, 2025. The EU AI Act has already prohibited certain AI practices and introduced certain AI literacy provisions and is due to impose significant requirements on both the providers and deployers of certain AI Technologies. The EU AI Act also sets out significant sanctions for breaches, including fines of up to 7% of annual worldwide turnover or €35 million, whichever is higher, for the most serious breaches. Moreover, claims for damages in respect of AI Technologies may also be possible (and in certain jurisdictions, facilitated by revisions to regulations on liability). The EU is currently considering targeted amendments to the EU AI Act. The costs of preparing for, monitoring and complying with regulations related to AI Technologies, and any claims or penalties as the result of any use of or reliance on AI Technologies, could, if applicable, adversely affect us and/or third parties connected to us (whether directly or indirectly), which could affect our business and funds.

***Failure or alleged failure to comply with applicable data and privacy laws and regulations could subject us to ongoing costs and, in some cases, fines and reputational harm.***

We are subject to numerous laws and regulations in the United States and around the world regarding privacy and the collection, storage, use, processing, transfer, transmission, disclosure and protection of personal, sensitive or other regulated data, the scope of which is rapidly evolving, subject to differing interpretations, and may be inconsistent between states within a country or between countries. Any inability or perceived inability to adequately address privacy concerns, or comply with applicable laws and regulations, even if unfounded, could result in regulatory and third-party liability, increased costs, disruption to our operations, and reputational damage.

We and the companies in which our funds and HHH invest are subject to data security and privacy compliance obligations that impose compliance costs and risks of penalties, and which could increase significantly as such laws and regulations evolve globally. For example, we have obligations under existing laws and regulations, including, by example but without limitation, the requirements of the General Data Protection Regulation (EU) 2016/679 ("GDPR"), the UK version of the GDPR ("UK GDPR") as supplemented by the Data Protection Act 2018, the Cayman Islands Data Protection Act (2021 Revision), the Gramm Leach Bliley Act ("GLBA"), Regulation S-P issued by the SEC under GLBA ("Regulation S-P") and the California Consumer Privacy Act of 2018, as amended. The SEC has adopted changes to Regulation S-P, which require, among other things, that registered investment advisers notify affected individuals of a breach involving their personal information when there has been an incident that rises to the level of being a reportable breach and develop, implement and maintain written policies and procedures for an incident response program. Further legislative evolution in the field of data security and privacy is also expected. For example, the UK's Data (Use and Access) Act received Royal Assent on June 19, 2025 and is making various amendments to the current UK data protection regime, including to bring the maximum fine threshold for infringement of certain requirements relating to direct marketing and the use of cookies (currently £500,000) in line with the UK GDPR threshold (i.e., the higher of £17.5 million or 4% of annual global turnover), as well as introducing new data sharing frameworks. In addition, on November 19, 2025, the EU published a proposal to make certain simplifications to

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the GDPR and other data, privacy and cybersecurity related laws, including the ePrivacy Directive and EU AI Act. There is increasing divergence between EEA and UK requirements, which may create a greater dual regulatory compliance burden in circumstances where entities are subject to both regimes.

Certain jurisdictions are considering passing laws and regulations relating to data and digital services, and we may need to comply with additional laws or reporting obligations in the future. We cannot predict how such laws or regulations may develop, and the costs of monitoring, interpreting and, where applicable, complying with such laws and regulations could adversely affect our business, financial condition and results of operations, and could also impact the companies in which our funds invest, which could (directly or indirectly) affect our investment results. The continued development of these laws and regulations and their interpretations may increase our compliance costs, restrict our ability to offer services in certain locations, result in negative publicity and subject us to significant costs or penalties associated with litigation and/or regulatory action, all of which could adversely affect our business, financial condition, and results of operations.

As data protection and privacy laws, and regulatory and judicial interpretations thereof, continue to develop, it could be more difficult and/or more costly for us or the companies in which our funds and HHH invest to collect, store, use, transmit and process personal and sensitive information. Further, in addition to imposing substantial data protection governance and security requirements on companies, giving individuals extensive rights to control how companies handle their personal data and imposing data breach notification and other requirements, some data protection and privacy laws, such as the GDPR and UK GDPR, restrict cross-border transfers of personal information. Even where such transfers can be made, subject to compliance with certain conditions under the applicable data protection and privacy laws, analyzing, selecting and adhering to a relevant mechanism in order to make cross-border transfers permissible can still result in operational costs and complexities. Furthermore, requirements for data transfers continue to evolve and are subject to legal challenge. If mechanisms used by us for cross-border transfers are deemed to be insufficient, we may face increased exposure to regulatory actions, substantial fines and injunctions against processing personal information. Moreover, data protection and privacy laws may also impose restrictions on transfers of certain non-personal data, and certain jurisdictions have passed or are considering passing laws requiring or which may encourage local data residency. These and other restrictions and requirements around transfers of data, and other changes in data protection and privacy laws (or interpretations thereof) as they continue to develop could impact our operations, or those of HHH or a portfolio company, and increase the cost and complexity of delivering our services.

Although we take reasonable efforts to comply with all applicable laws and regulations and have invested and continue to invest human and technology resources into data privacy compliance efforts, there can be no assurance that we will not be subject to regulatory or individual legal action, including fines, in the event of a security incident, alleged non-compliance with applicable data protection and privacy laws or regulations, or other claim that an individual's privacy rights have been violated. We could incur significant costs in investigating and defending such claims and, if found liable, or be required to make changes to our business practices. Further, these proceedings and any subsequent adverse outcomes may subject us to negative publicity and an erosion of trust. In addition, we could be adversely affected if legislation or regulations are expanded to require changes in our business practices or if governing jurisdictions interpret or implement their legislation or regulations in ways that adversely affect our business, financial condition and results of operations. Many regulators have indicated an intention to take more aggressive enforcement actions regarding data privacy matters, and private litigation resulting from such matters is increasing and resulting in large judgments and settlements.

***We are subject to substantial risks of litigation and regulatory proceedings and may face significant liabilities and damage to our professional reputation as a result of litigation and regulatory proceedings and negative publicity.***

In the ordinary course of business, we are subject to the risk of litigation and face significant regulatory oversight. In recent years, the volume of claims and amount of damages sought in litigation and regulatory proceedings against the financial services industry in general have been increasing. The investment decisions we make in our asset management business and the activities of our investment professionals may subject our funds, HHH and us to the risk of third-party litigation. For example, we may be subject to litigation arising from investor dissatisfaction with the performance of our funds, including certain losses due to the failure of a particular investment strategy or improper trading activity if we violate restrictions in our funds' organizational documents.

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We also are exposed to risks of litigation relating to claims that we have not properly addressed conflicts of interest. From time to time we, our funds and HHH have been and may in the future be subject to litigation, including securities class action lawsuits by stockholders. For example, in December 2017 our funds paid $193.75 million to settle a class action with stockholders of Allergan who had brought insider trading allegations against us and Valeant Pharmaceuticals International Inc. Any litigation arising in such circumstances is likely to be protracted, expensive and surrounded by circumstances that could be materially damaging to our reputation and business. We are also subject from time to time to formal or informal investigations or inquiries by the SEC and other governmental and self-regulatory organizations in connection with our trading and other activities.

In addition, to the extent investors in our funds or HHH suffer losses resulting from fraud, gross negligence, willful misconduct or other similar misconduct, investors may have remedies against us, our funds or HHH, our investment professionals or our affiliates under the federal securities law and/or state law. While the boards of directors or trustees to our funds or HHH, including their officers, other employees and affiliates, are generally indemnified to the fullest extent permitted by law with respect to their conduct in connection with the management of the entity's business and affairs, such indemnity does not extend to actions determined to have involved fraud, willful misconduct or other similar misconduct.

Any private lawsuits or regulatory actions brought against us and resulting in a finding of substantial legal liability could materially adversely affect our business, financial condition or results of operations or cause significant reputational harm to us, which could seriously harm our business. Recently, there has been increased activity on the part of certain activist and other organized groups with respect to investments made by private funds. Such groups have at times contacted and otherwise sought to engage with government and regulatory bodies and fund investors, which could lead to negative publicity that could harm our reputation.

We depend to a large extent on our business relationships and our reputation for being a good partner to pursue investment opportunities for our funds. As a result, allegations of improper conduct by private litigants, regulators or employees, whether the ultimate outcome is favorable or unfavorable to us, as well as negative publicity and press speculation about us, our investment activities, our workplace environment, or the asset management industry in general, whether or not valid, may harm our reputation, which may be more damaging to our business than to other types of businesses. Additionally, the pervasiveness of social media, coupled with increased public focus on the externalities of business activities, could further magnify the reputational risks associated with negative publicity.

#### We may not be able to maintain sufficient insurance to cover us for potential litigation or other risks.
We may not be able to obtain or maintain sufficient insurance on commercially reasonable terms or with adequate coverage levels against potential liabilities we may face in connection with potential claims, which could have a material adverse effect on our business. We may face a risk of loss from a variety of claims, including claims related to securities, antitrust, contracts, cybersecurity, fraud and various other potential claims, whether or not such claims are valid. Insurance and other safeguards might only partially reimburse us for our losses, if at all, and if a claim is successful and exceeds or is not covered by our insurance policies, we may be required to pay a substantial amount in respect of such successful claim. Certain losses of a catastrophic nature, such as losses arising as a result of wars, systemic risk associated with cyber-kinetic warfare, earthquakes, floods, typhoons, terrorist attacks or other similar events, may be uninsurable or may only be insurable at rates that are so high that maintaining coverage would cause an adverse impact on our business and our funds. In general, losses related to terrorism and catastrophic nation-state hacks are becoming harder and more expensive to insure against. Some insurers are excluding coverage of terrorist acts and catastrophic nation-state hacks from their all-risk policies. In some cases, insurers are offering significantly limited coverage against terrorist acts for additional premiums, which can greatly increase the total cost of casualty insurance for a property. As a result, we and our funds or HHH may not be insured or fully insured against terrorism or certain other catastrophic losses.

#### Another pandemic or global health crisis like the COVID-19 pandemic may adversely impact our performance and results of operations.
From 2020 to 2022, in response to the COVID-19 pandemic, many countries instituted quarantine restrictions and took other measures to limit the spread of the virus. This resulted in labor shortages and disruption of supply chains and contributed to prolonged disruption of the global economy. A widespread reoccurrence of another pandemic or

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#### **TABLE OF CONTENTS**
global health crisis could increase the possibility of periods of similar restrictions on business operations, which may materially adversely impact our business, financial condition, results of operations, liquidity and prospects and exacerbate many of the other risks discussed in this "Risk Factors" section.

In the event of another pandemic or global health crisis like the COVID-19 pandemic, our portfolio companies may experience decreased revenues and earnings, which may adversely impact our ability to realize value from such investments and in turn reduce our revenues. Certain sectors in which our funds and HHH have or may have investments, including hospitality, retail and travel, could be particularly negatively impacted, as was the case during the COVID-19 pandemic. The companies in which our funds and HHH invest may also face increased credit and liquidity risk due to volatility in financial markets and limited access to or higher cost of financing, which may adversely impact the value of these investments.

A pandemic or global health crisis may also pose enhanced operational risks. For example, our employees may become sick or otherwise unable to perform their duties for an extended period, and extended public health restrictions and remote working arrangements may impact employee morale, integration of new employees and preservation of our culture. Remote working environments may also be less secure and more susceptible to hacking attacks, including phishing and social engineering attempts, as discussed above. Moreover, our third-party service providers could be impacted by an inability to perform due to pandemic-related restrictions or by failures of, or attacks on, their technology platforms.

***If Pershing Square Inc. were deemed an "investment company" under the 1940 Act, applicable restrictions could make it impractical for us to continue our business as contemplated and could have a material adverse effect on our business.***

The 1940 Act and the rules thereunder contain detailed parameters for the organization and operation of investment companies. Among other things, the 1940 Act and the rules thereunder limit or prohibit transactions with affiliates, impose limitations on the issuance of debt and equity securities, generally prohibit the issuance of options and impose certain governance requirements. We intend to conduct our operations so that Pershing Square Inc. will not be deemed to be an investment company under the 1940 Act. In applying the tests under Section 3(a)(1) of the 1940 Act to Pershing Square Inc., we believe that we are not captured by the definition of an investment company because the most substantial portions of our assets (measured by fair market value as determined in good faith by our board) and our income each quarter is derived from our asset management business rather than any other source including our principal investment activities. If anything were to happen which would cause Pershing Square Inc. to be deemed to be an investment company under the 1940 Act, requirements imposed by the 1940 Act, including limitations on our capital structure, ability to transact business with affiliates and ability to compensate key employees, could make it impractical for us to continue our business as currently conducted, impair the agreements and arrangements between Pershing Square Inc. and its investment professionals, and materially adversely affect our business, financial condition and results of operations. In addition, we could be required to limit the amount of investments that we make as a principal and structure such investments or otherwise conduct our business in a manner that does not subject us to the registration and other requirements of the 1940 Act.

#### Risks Relating to Our Funds and HHH and Our Investment Strategy

#### Poor performance of our funds and our other investment vehicles would cause a decline in our revenues, results of operations and cash flows.
We derive revenue from management and performance fees based on assets under management and the performance of each of our funds and our other investment vehicles. If such funds and/or other investment vehicles perform poorly, our revenues, results of operations and cash flows decline because the value of our assets under management decreases, which in turn results in a reduction in our management fees and, in some cases, may result in a reduction in the performance fee revenue we receive that year from our funds.

#### Decreases in the market capitalization of HHH would cause a decline in our assets, revenues, results of operations and cash flows.
Pershing Square Inc. owns 15% and our core funds own 32% of the HHH shares outstanding. A decrease in the market capitalization of HHH would cause a decline in the value of our HHH shares. We also derive revenue from the HHH Fees based, with respect to the HHH Variable Management Fee, on the value of the HHH stock

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price relative to a reference price, as determined at the end of each quarter in accordance with the HHH Services Agreement. See "Business— Advisory Fees and Compensation—HHH Fees" for more information. Accordingly, we may experience fluctuations in the HHH Variable Management Fee earned from quarter to quarter. Furthermore, if the HHH stock price were to decline below the reference price in a given quarter, we would receive no HHH Variable Management Fee for that quarter which could adversely impact our revenues, results of operations and cash flows. The HHH stock price could decline if HHH performs poorly or for other factors beyond HHH's control, including but not limited to general economic, market or political conditions.

***The historical returns attributable to our funds and HHH, including those presented in this prospectus, should not be considered as indicative of the future results of our funds or HHH or of our future results or of any returns expected on an investment in our common stock.***

Although the historical and potential future returns of our funds and HHH are correlated with our financial results, returns on our common stock are not directly linked to such returns. As disclosed in "Management's Discussion and Analysis of Financial Condition and Results of Operation," our primary source of income comes from the management and performance fees derived from our funds and not from an investment of our own capital in our funds. We also receive management fees from HHH in return for our investment advisory and other services and not from a return on an investment of our own capital in HHH. Accordingly, any positive performance of our funds or HHH will not necessarily result in positive returns on an investment in our common stock. See "—Risks Related to the Combined Offering and Ownership of Our Common Stock—*The market price of shares of our common stock may be volatile, which could cause the value of your investment to decline*" for a discussion of the factors other than performance of our funds and of HHH which could have an impact on the price of shares of our common stock. However, poor performance of our funds and HHH's stock price would cause a decline in our revenue and would therefore have a negative effect on our performance and likely the returns on an investment in our common stock. Moreover, with respect to the historical returns of our funds:

&nbsp;&nbsp;&nbsp;&nbsp;• we may create new products or strategies in the future that reflect different investment strategies (or whose management fees represent a more significant proportion of the fees than has historically been the case), as well as a varied geographic and industry exposure as compared to our present funds, and any such new product or strategy could have different returns from our existing or previous funds;

&nbsp;&nbsp;&nbsp;&nbsp;• the rates of returns of our funds reflect unrealized gains as of the applicable measurement date that may never be realized, which may adversely affect the ultimate value realized from those funds' investments;

&nbsp;&nbsp;&nbsp;&nbsp;• our funds' returns in some years benefited from investment opportunities and general market conditions that may not repeat themselves, our current or future investment funds might not be able to avail themselves of comparable investment opportunities or market conditions, and the circumstances under which our current or future funds may make future investments may differ significantly from those conditions prevailing in the past; and

&nbsp;&nbsp;&nbsp;&nbsp;• the rates of return of our funds reflect our historical cost structure, which may vary in the future due to various factors enumerated elsewhere in this prospectus and other factors beyond our control, including changes in laws.

The future internal rate of return for any current or future fund may vary considerably from the historical internal rate of return generated by any particular fund, or for our funds as a whole. Similarly, the future rate of return and stock price for HHH may vary considerably from its historical rate of return and stock price, particularly because HHH will pursue a different investment strategy as a result of the Howard Hughes Transaction. In addition, future returns will be affected by the applicable risks described elsewhere in this prospectus, including risks of the industries and businesses in which a particular fund or in which HHH invests.

#### The anticipated benefits of the Howard Hughes Transaction may not be realized, or those benefits may take longer to realize than expected.
We believe that there are significant benefits and synergies that may be realized from the Howard Hughes Transaction. However, the anticipated transformation of HHH into a diversified holding company pursuant to the Howard Hughes Transaction will be a new and complex process for us, and the efforts to realize the benefits of this transaction may disrupt our and HHH's existing operations. The full benefits of the transaction may not be

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realized as expected or may not be achieved within the anticipated time frame, or at all. Failure to achieve the anticipated benefits of the Howard Hughes Transaction could adversely affect HHH's and our future business, financial condition, operating results and prospects and negatively impact the price of our common stock.

In addition, although we do not anticipate that the Howard Hughes Transaction will require us to materially increase our fixed costs or headcount or disrupt the operation of our core funds, we may in fact need to increase our fixed costs or headcount and/or there may be some disruption to the operation of our core funds. Furthermore, the Howard Hughes Transaction involves a number of special risks, including the potential diversion of management's and our investment team's attention from our core funds; entry into markets or businesses in which we or HHH may have limited or no experience; increasing demands on our investment processes and infrastructure; and enhanced regulatory scrutiny and greater reputational and litigation risk. Such risks may disrupt HHH's or our ongoing business and limit the anticipated benefits to us of the Howard Hughes Transaction.

#### We are not a majority stockholder in HHH, exposing us to the risk of decisions made by others with whom we may not agree.
We are not a majority stockholder in HHH and do not have full discretionary authority over the investments of HHH. In connection with the Howard Hughes Transaction, we agreed generally to limit the voting power of the shares of HHH common stock held by us and our affiliates to 40% of the total voting power of HHH shares outstanding and we and our affiliates have limited our beneficial ownership of HHH common stock to 47%.

Additionally, we agreed to a provision establishing that a majority of HHH directors will be independent, under applicable stock exchange standards, so long as we own more than 10% of HHH common stock. Although we provide investment advisory and other services to support HHH's new diversified holding company strategy, and following completion of the Vantage Acquisition, Vantage and its insurance company subsidiaries, we are subject to the risk that HHH may make business, financial or management decisions contrary to our expectations or with which we do not agree (including with respect to the use of the capital we have invested in HHH in connection with the Howard Hughes Transaction) or that the other stockholders or the management of HHH may take risks or otherwise act in a manner that does not serve our interests. If any of the foregoing were to occur, our business, financial condition and results of operations could suffer as a result.

#### Our funds and our other investment vehicles are exposed to a concentration of investments, which can exacerbate volatility and investment risk.
In the pursuit of our core investment strategy, our funds and our other investment vehicles accumulate significant positions in particular investments, typically investing the substantial majority of their capital in a limited number of core investments. Our investment strategy of concentrating investment positions can increase the volatility of investment results over time and may exacerbate the risk that a loss in any such position could have a material adverse impact on the NAV of the funds and other investment vehicles and, in turn, the management fees we receive from them. Although we may at times choose to do so, we are under no obligation to hedge positions to mitigate such risks. See "—*Risk management activities may not be successful and, in some cases, may negatively impact our business*." In addition, we may in the future concentrate such investment positions in any one or group of industries, which could further exacerbate the impact of an economic slowdown in such industries on the NAV and performance of our funds and other investment vehicles and, in turn, our management fees and performance fees. Such volatility and investment risk could have a material adverse effect on our business, financial condition and results of operations.

#### Our investment strategies may not be successful, which would negatively affect us.
Investments are exposed to the risk of the loss of capital. Our funds and HHH invest in securities and operating companies utilizing an investment strategy that may involve substantial risks. The prices of their respective investments and assets are volatile and market movements are difficult to predict. No guarantee or representation is made that their investment strategies will be successful. In addition, our funds may utilize such investment techniques as concentration of investments, forward transactions, foreign currency transactions, uncovered option transactions, securities lending, short sales, investments in non-marketable securities and futures and options on futures transactions, among others, which could under certain circumstances magnify the impact of any adverse market or investment developments.

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There can be no assurance that the investments made by our funds or HHH will increase in value or that our funds and HHH will not incur significant losses. Such investment risk could have a material adverse effect on our business, financial condition and results of operations.

#### We may fail to identify suitable investment opportunities.
Our investment strategies for our funds and HHH depend on our ability to successfully identify attractive investment opportunities. Any failure to identify and make appropriate investment opportunities would increase the amount of their assets invested in cash or cash equivalents and, as a result, may reduce their rates of return. Our funds and HHH face competition for investments from, for example, public and private investment funds, strategic buyers and/or investment banks. Many of these competitors may be substantially larger and have greater financial resources than are available to our funds and HHH. There can be no assurance that we will be able to identify and make investments for our funds, or that HHH will be able to make investments, that are consistent with our investment objectives or that generate attractive returns for investors, or that our funds and HHH will not be significantly affected by competitive pressures for investment opportunities, which could in turn have a material adverse effect on our business, financial condition and results of operations.

#### The due diligence we perform may not reveal all relevant facts in connection with such investment.
When assessing an investment opportunity, we have relied and will continue to rely on resources that may provide limited or incomplete information. In some cases, whether or not known to us at the time, such resources may not be sufficient, accurate, complete or reliable. In particular, we have relied and will continue to rely on publicly available information and data filed with various government regulators. Although we have evaluated and will continue to evaluate information and data as we deemed or deem appropriate, and have sought and will continue to seek independent corroboration when reasonably available, we have not and may choose not to evaluate all publicly available information and data with respect to any investment and have often not been and will often not be in a position to confirm the completeness, genuineness or accuracy of the information and data that we did or will evaluate.

In addition, when assessing an investment opportunity, our investment analyses and decisions may be undertaken on an expedited basis in order to take advantage of what we perceive to be short-lived investment opportunities. In such cases, the available information at the time of an investment decision may be limited, inaccurate and/or incomplete.

As a result, there can be no assurance that due diligence investigations we carry out will reveal or highlight all relevant facts (including fraud) or risks that may be necessary or helpful in evaluating investment opportunities or foresee future developments that could have a material adverse effect on an investment. Any failure to identify relevant facts may result in inappropriate investment decisions, which may have a material adverse effect on the value of the investments of our funds and HHH, which in turn may have a material adverse effect on our business, financial condition and results of operations.

***Our funds and other investment vehicles generally make investments in companies that we do not control, exposing us to the risk of decisions made by others with whom we may not agree.***

Our funds and our other investment vehicles generally make investments in companies that we do not control. As a result, these investments are subject to the risk that the company in which we invest may make business, financial or management decisions contrary to our expectations or with which we do not agree or the majority stakeholders or the management of the company may take risks or otherwise act in a manner that does not serve our interests. If any of the foregoing were to occur with respect to one or more significant investments, the values of such investments by our funds and our other investment vehicles could decrease and our business, financial condition and results of operations could suffer as a result.

#### Risk management activities may not be successful and, in some cases, may negatively impact our business.
When managing exposure to market risks, our funds and HHH may from time to time use futures and forward contracts, options, interest rate swaps, caps, collars and floors or pursue other strategies or use other forms of derivative instruments (over the counter ("OTC") and otherwise) to limit our exposure to changes in the relative values of investments that may result from market developments, including changes in prevailing

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interest rates, currency exchange rates and commodity prices. The use of derivative financial instruments and other risk management strategies may not be properly designed to hedge, manage or otherwise reduce the risks we have identified. In addition, we may not be able to identify, or may not have fully identified, all applicable material market risks to which we are exposed.

Our funds and HHH may also choose not to hedge, in whole or in part, any of the risks that have been identified. The scope of risk management activities undertaken by us varies based on the level and volatility of interest rates, the prevailing foreign currency exchange rates, the types of investments that are made and other changing market conditions. We do not seek to hedge our exposure in all currencies or all investments, which means that our exposure to certain market risks are not limited. The use of hedging transactions and other derivative instruments to reduce the effects of a decline in the value of a position does not eliminate the possibility of fluctuations in the value of the position or prevent losses if the value of the position declines. Moreover, it may not be possible to limit the exposure to a market development that is so generally anticipated that a hedging or other derivative transaction cannot be entered into at an acceptable price. Further, it may not be possible to fully or perfectly limit our exposure against all changes in the value of investments because the value of investments is likely to fluctuate as a result of a number of factors, some of which will be beyond our control or ability to hedge. As such, the portfolios of our funds and HHH will always be exposed to certain risks that cannot be hedged.

In addition, the success of any hedging or other derivative transaction generally will depend on our ability to correctly predict market changes, the degree of correlation between price movements of a derivative instrument and the position being hedged, the creditworthiness of the counterparty and other factors, some of which may be beyond our ability to hedge. The degree of correlation between price movements of the instruments used in connection with hedging activities and price movements in a position being hedged may vary. For various reasons, we may not seek to establish, or be successful in establishing, a perfect correlation between the instruments used in hedging or other derivative transactions and the positions being hedged. An imperfect correlation could prevent us from achieving the intended result and give rise to a loss. As a result, while our funds and HHH may enter into such a transaction in order to reduce exposure to market risks, unintended market changes may result in poorer overall investment performance than if it had not been executed. Such transactions may also limit the opportunity for gain if the value of a hedged position increases.

Hedging arrangements themselves also may entail certain other risks. These arrangements may require the posting of cash collateral at a time when a fund has insufficient cash such that the posting of the cash is either impossible or requires the sale of assets at prices that do not reflect their underlying value. In addition, if our derivative counterparties or clearinghouses fail to meet their obligations with respect to the posting of cash collateral, our efforts to mitigate certain risks may be ineffective. Moreover, these hedging arrangements may generate significant transaction costs, including potential tax costs, that reduce the returns generated by a fund.

Finally, the regulation of derivatives and commodity interest transactions in the United States and other countries is a rapidly changing area of law and is subject to ongoing modification by governmental and judicial action. Newly instituted and amended regulations could significantly increase the cost of entering into derivative contracts (including through requirements to post collateral, which could negatively impact available liquidity), materially alter the terms of derivative contracts, reduce the availability of derivatives to protect against risks, reduce our ability to restructure our existing derivative contracts and increase our exposure to less creditworthy counterparties. Furthermore, the CFTC may in the future require certain foreign exchange products to be subject to mandatory clearing, which could increase the cost of entering into currency hedges. See also "—Risks Related to Our Business and Industry—Changing regulations regarding derivatives and commodity interest transactions could negatively impact our business."

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#### Our foreign investments may be subject to various risks, thus exposing us to risk.
Our funds and HHH may invest in securities trading in markets less mature than those of the United States. Investing in these securities involves particular risks for our funds and our other investment vehicles, including:

&nbsp;&nbsp;&nbsp;&nbsp;• political and economic risks, such as expropriation and nationalization, the potential difficulty of repatriating any investment returns and general social, political and economic instability;

&nbsp;&nbsp;&nbsp;&nbsp;• potential lack of liquidity and greater price volatility, which may affect, among other things, the ability to exit a position;

&nbsp;&nbsp;&nbsp;&nbsp;• difficulties in pricing securities;

&nbsp;&nbsp;&nbsp;&nbsp;• defaults on foreign government securities;

&nbsp;&nbsp;&nbsp;&nbsp;• the imposition of withholding or other taxes on interest, dividends or other distributions, payments on certain derivative instruments, capital gains, other income or gross sale or disposition proceeds;

&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in the rate of exchange between currencies and costs associated with currency conversion or foreign exchange controls;

&nbsp;&nbsp;&nbsp;&nbsp;• certain government policies that may restrict our investment opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;• lower quality accounting and financial reporting standards;

&nbsp;&nbsp;&nbsp;&nbsp;• a less effective or less developed regulatory environment, including limited or no supervision and regulation of stock exchanges, brokers and the sales of securities;

&nbsp;&nbsp;&nbsp;&nbsp;• differences in the legal and regulatory environment, including less developed or less comprehensive bankruptcy laws;

&nbsp;&nbsp;&nbsp;&nbsp;• fewer investor protections and less stringent requirements relating to fiduciary duties;

&nbsp;&nbsp;&nbsp;&nbsp;• difficulties in enforcing contractual obligations;

&nbsp;&nbsp;&nbsp;&nbsp;• heightened exposure to corruption risk;

&nbsp;&nbsp;&nbsp;&nbsp;• higher transaction costs of investing;

&nbsp;&nbsp;&nbsp;&nbsp;• less publicly available information about companies;

&nbsp;&nbsp;&nbsp;&nbsp;• absence of an independent judicial system and exposure to economic, political or nationalistic influences, resulting in difficulties in pursuing legal remedies or obtaining and enforcing judgments or in voting proxies and exercising stockholder rights; and

&nbsp;&nbsp;&nbsp;&nbsp;• a less favorable environment for pursuing our investment strategy.

#### Our trading orders may not be executed in a timely fashion.
Our investment and trading strategies depend on the ability to establish and maintain overall market positions in a combination of investments and financial instruments. Our trading orders may not be executed in a timely and efficient manner due to various circumstances, including, for example, trading volume surges, systems failures or human error attributable to us, our funds or HHH, counterparties, brokers, dealers, agents or other service providers. In such event, our funds and HHH might only be able to acquire or dispose of some, but not all, of the components of such position, or if the overall position were to need adjustment, our funds and HHH might not be able to make such adjustment. As a result, our funds and HHH would not be able to achieve the desired market position, which may result in a loss. In addition, our funds and HHH rely heavily on electronic execution systems (and may rely on new systems and technology in the future), and such systems may be subject to certain systemic limitations or mistakes, causing the interruption of trading orders made by our funds and HHH. Losses resulting from delays in trade execution and settlement could have a material adverse effect on the performance of our funds and HHH, which in turn could lead to lower management fees and, in some cases, may lead to lower performance fee revenue, causing a material adverse effect on our business, financial condition and results of operations.

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***We are reliant on third-party service providers for certain aspects of our business, and are subject to risks in using custodians, counterparties, administrators and other agents.***

We are reliant on third-party service providers for certain investment services and technology platforms that facilitate the continued operation of our business, including but not limited to prime brokerage and cloud-based services. We generally have less control over the delivery of such third-party services, and as a result, may face disruptions to our ability to operate our business as a result of interruptions of such services. For example, a prolonged global failure of cloud services provided to us could result in cascading systems failures.

Our funds and HHH depend on the services of custodians, counterparties, administrators and other agents, including to carry out certain securities and derivatives transactions and other administrative services. We are subject to risks of errors and mistakes made by these third parties, which may be attributed to us and subject us to reputational damage, penalties or losses. The terms of the contracts with these third-party service providers are often customized and complex, and many of these arrangements occur in markets or relate to products that are subject to limited or no regulatory oversight. We may be unsuccessful in seeking reimbursement or indemnification from these third-party service providers.

Our funds and HHH are subject to the risk that the counterparty to one or more of these contracts defaults, either voluntarily or involuntarily, on its performance under the contract. Any such default may occur suddenly and without notice to us. Moreover, if a counterparty defaults, we may be unable to take action to cover our exposure, either because we lack contractual recourse or because market conditions make it difficult to take effective action. This inability could occur in times of market stress, which is when defaults are most likely to occur. In addition, we may not accurately anticipate the effects of market stress or counterparty financial condition, and as a result, we may not have taken sufficient action to reduce our risks effectively. Default risk may arise from events or circumstances that are difficult to detect, foresee or evaluate. In addition, concerns about, or a default by, one large participant could lead to significant liquidity problems for other participants, which may in turn expose us to significant losses.

In the event of a counterparty default, particularly a default by a major investment bank or a default by a counterparty to a significant number of our contracts, one or more of our funds or HHH may have outstanding trades that they cannot settle or are delayed in settling. As a result, our funds or HHH could incur material losses and the resulting market impact of a major counterparty default could harm our business, financial condition and results of operation.

In the event of the insolvency of a custodian, counterparty or any other party that is holding assets of our funds or HHH as collateral, our funds or HHH might not be able to recover equivalent assets in full as they will rank among the custodian's or counterparty's unsecured creditors in relation to the assets held as collateral. In addition, our cash held with a custodian or counterparty generally will not be segregated from the custodian's or counterparty's own cash, and our funds and HHH may therefore rank as unsecured creditors in relation thereto.

#### Our investment strategies are subject to numerous additional risks.
Our investment strategies are subject to numerous additional risks, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;• Our funds and HHH may invest in risky instruments, such as swaps and certain options and other custom instruments, which are subject to the risk of non-performance by the swap counterparty, including risks relating to the creditworthiness of the swap counterparty, market risk, liquidity risk and operations risk; credit-default swaps, characterized by volatile pricing, potentially illiquid markets, difficulty in predicting triggering events and various other risks; and future contracts and forward contracts, which are subject to the risk of bank failure or non-performance;

&nbsp;&nbsp;&nbsp;&nbsp;• Our funds and HHH may invest in risky investments, such as distressed securities or illiquid investments, and such investments may involve material risks;

&nbsp;&nbsp;&nbsp;&nbsp;• New investment instruments are continually developing and investments in such investment instruments may involve material and as yet unanticipated risks;

&nbsp;&nbsp;&nbsp;&nbsp;• Our funds and HHH may employ hedging, including dynamic hedging approaches which may ultimately fail to achieve the intended risk mitigation if the market experiences rapid changes in price, volatility, or liquidity;

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&nbsp;&nbsp;&nbsp;&nbsp;• While we pursue a long-term investment strategy, our funds and HHH retain the flexibility to engage in short-selling as a short-term trading-related technique, which could result in material losses due to the theoretical risk of an unlimited increase in the market price of a short sale of an investment instrument;

&nbsp;&nbsp;&nbsp;&nbsp;• Our funds and HHH may be limited in their ability to engage in short-selling or other short-term trading-related techniques as a result of regulatory mandates which may limit our ability to engage in hedging activities and therefore impair our investment strategies;

&nbsp;&nbsp;&nbsp;&nbsp;• Our funds and HHH retain the flexibility to use margin leverage for short-term management of cash flows, which subjects the funds to changes in the value that broker-dealers ascribe to a given security or position, the amount of margin required to support such security or position, the borrowing rate to finance such security or position and/or such broker-dealers' willingness to continue to provide any such credit to the funds;

&nbsp;&nbsp;&nbsp;&nbsp;• Our funds and HHH depend on their ability to access sufficient sources of debt financing at attractive rates to execute any leverage strategies, and there is no guarantee that they will be able to access sufficient debt or other financing at attractive rates or at all; and

&nbsp;&nbsp;&nbsp;&nbsp;• Our funds and HHH may invest through their respective affiliates, in which case their investments may be subordinated to the claims of such affiliates' creditors.

***Given the priority we afford the interests of the investors in our funds and our other investment vehicles and our focus on achieving superior investment performance, we may reduce our fees or otherwise alter the terms under which we do business when we deem it in the best interest of our fund investors — even in circumstances where such actions might be contrary to the short-term interests of our stockholders.***

In pursuing the interests of the investors in our funds and our other investment vehicles, we may take actions that could reduce the profits we could otherwise realize in the short term. While we believe that our commitment to the investors in our funds and our other investment vehicles and our discipline in this regard is in the long-term interest of us and our stockholders, this approach may have an adverse impact on our short-term profitability, and there is no guarantee that it will be beneficial in the long term. We may voluntarily reduce management fee rates and terms for certain of our funds or other investment vehicles and/or certain investors in such funds or other investment vehicles, when we deem it appropriate, even when doing so may reduce our short-term revenue. For example, for eight consecutive quarters beginning in 2018, we reduced the management fees paid to us by certain of our funds to account for their litigation settlement-related expenses. Similarly, in connection with the Howard Hughes Transaction, we reduced the management fees paid to PSCM by each of the core funds by an amount equal to the HHH Fees multiplied by the percentage of HHH's shares outstanding held by each such fund attributable to its fee-paying capital. As another example, we waived performance fees for certain investors in our private funds until such time as any losses incurred by them from a direct investment in one of our co-investment vehicles were recovered. Furthermore, employees and affiliates of PSCM, or other individuals who have provided material assistance to PSCM, benefit from preferential fees.

#### The PSUS IPO will cause a material portion of our Fee-Paying AUM to consist of registered investment company assets.
The PSUS IPO will cause a material portion of our Fee-Paying AUM to consist of registered investment company assets. Neither we nor PSCM or any of our other affiliates has previously served as an investment adviser to an investment company registered under the 1940 Act. As a result, we will be addressing certain operational and compliance requirements of the 1940 Act for the first time in connection with the launch of PSUS. None of the other funds we currently manage prior to the combined offering are registered under the 1940 Act, unlike PSUS, and, therefore, none of them are subject to the investment, leverage and derivative restrictions, diversification requirements and other regulatory requirements imposed on registered investment companies by the 1940 Act and on regulated investment companies by the Code. If any of the other funds we manage had been registered under the 1940 Act and/or operated as regulated investment companies under the Code, their respective returns might have been lower and their ability to undertake certain transactions or investments may have been restricted. As a result, our future performance will depend on our ability to implement the operational and compliance-related requirements of the 1940 Act, while also successfully implementing our investment strategy within the investment and regulatory parameters

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applicable to registered investment companies under the 1940 Act. Any failure to do so may have a material adverse effect on the performance of PSUS, which in turn could lead to lower management fees causing a material adverse effect on our business, financial condition and results of operations.

#### Risks Related to Taxation
***Changes in relevant tax laws, regulations or treaties or an adverse interpretation of these items by tax authorities could adversely impact our effective tax rate and tax liability.***

Our effective tax rate and tax liability are based on the application of current income tax laws, regulations and treaties, including state and local income tax laws and regulations. These laws, regulations and treaties are complex, and the manner in which they apply to us and our funds is sometimes open to interpretation. Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against our net deferred tax assets. Although management believes its application of current laws, regulations and treaties to be correct and sustainable upon examination by the tax authorities, the tax authorities (including the Internal Revenue Service ("IRS")) could challenge our interpretation, resulting in additional tax liability or adjustment to our income tax provision that could increase our effective tax rate.

In addition, past and future changes to tax laws and regulations, including to state and local tax laws and regulations, may have an adverse impact on us. For example, the Inflation Reduction Act of 2022 imposes, among other things, a minimum "book" tax on certain large corporations and creates a new excise tax on net stock repurchases made by certain publicly traded corporations. Furthermore, President Trump recently signed into the law the One Big Beautiful Bill Act which includes several new provisions (and other amendments) to the Code. The application and implication of the One Big Beautiful Bill Act to the Company is not yet clear given the lack of official guidance and interpretation or practical application. These and other changes could materially change the amount and/or timing of taxes we could be required to pay and may increase tax-related regulatory and compliance costs.

#### Risks Related to the Combined Offering and Ownership of Our Common Stock
***No public market for our common stock currently exists, and an active trading market for our common stock may never develop or be sustained after the combined offering. Following the combined offering, our stock price may fluctuate significantly.***

There currently is no public trading market for shares of our common stock. Following the combined offering, our common stock will be listed on the NYSE. Our common stock will trade separately on the NYSE from PSUS Shares, which will also be listed on the NYSE following the combined offering as described in the accompanying PSUS Prospectus. We cannot predict the extent to which investor interest in our company will lead to the development of an active trading market on the NYSE or how liquid that market might become. An active public market for our common stock may not develop or be sustained after the combined offering. If an active public market does not develop or is not sustained, it may be difficult for you to sell your shares of our common stock at a price that is attractive to you, or at all.

We cannot predict the prices at which our common stock may trade after the combined offering. Prior to the opening trade, there will not be a price at which the underwriters initially sell shares of our common stock to the public. The absence of a predetermined initial public offering price could impact the range of buy and sell orders collected by the underwriters from various broker-dealers. Consequently, upon listing on the NYSE, the public trading price of our common stock may be more volatile than where an initial public offering is conducted with a predetermined initial offering price and could decline significantly and rapidly from the opening price. As a result, we also cannot assure you that, following the combined offering, the combined trading prices of a PSUS Share and a share of our common stock will equal or exceed the public offering price of a PSUS Share in the PSUS IPO. In addition, there may be some investor rotation for a period following the combined offering. An investor in the combined offering that desires to invest in only the PSUS Shares or shares of our common stock (and not both) may seek to sell or short the security that it does not intend to hold, and such activity may put downward pricing pressure and/or increase volatility in the trading markets for our common stock and the PSUS Shares. A range of other factors, some of which may be beyond our control, may cause the market price of our common stock to fluctuate widely. See

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"—*The market price of shares of our common stock may be volatile, which could cause the value of your investment to decline.*" Low trading volume for our common stock, which may occur if an active trading market does not develop, among other reasons, would amplify the effect of such factors on our stock price volatility.

In connection with the combined offering, the underwriters may purchase and sell shares of our common stock and/or PSUS Shares in the open market, including over-allotment and stabilizing transactions and purchases to cover syndicate short positions created in connection with the combined offering, which may require corresponding purchases or sales by the underwriters of shares of the other component security in the open market. In connection with the combined offering, the underwriters may engage in "covered" short sales in an amount of shares representing the underwriters' option to purchase additional shares. To close a covered short position, the underwriters purchase shares in the open market or exercise the underwriters' option to purchase additional shares. In determining the source of shares to close the covered short position, the underwriters typically consider, among other things, the price of shares available for purchase in the open market as compared to the price at which they may purchase shares through the underwriters' option to purchase additional shares. Purchases in the open market to cover short positions, as well as other purchases underwriters may undertake for their own accounts, may have the effect of preventing a decline in the trading price of shares of the subject securities. Generally, the Underwriters would not be expected to engage in stabilizing transactions or cover syndicate short positions, unless the combined trading price of a PSUS Share and a share of our common stock is in the aggregate less than the public offering price of $50.00.

To the extent that the underwriters do not engage in stabilizing transactions with respect to the trading of our common stock on the NYSE, there could be greater volatility in the public price of our common stock during the period immediately following the closing of the combined offering. Furthermore, stabilizing transactions by the underwriters with respect to the trading of the PSUS Shares on the NYSE, including over-allotment and stabilizing transactions and purchases to cover syndicate short positions created in connection with the PSUS IPO, may require corresponding purchases or sales by the underwriters of shares of our common stock in the open market, and therefore stabilizing transactions with respect to the trading of PSUS Shares may affect the trading market for our common stock, including in potentially unexpected ways. Each of these factors contributes to the potential volatility in the price for our common stock following the combined offering.

#### ManagementCo controls us and its interests may conflict with ours or yours in the future.
Upon completion of the combined transaction, ManagementCo, an entity managed by members of our senior management, will initially have voting power over % of our outstanding common stock (or % if the underwriters in the PSUS IPO exercise in full their option to purchase additional PSUS Shares as described in the accompanying PSUS Prospectus) and will also hold a Special Voting Share that has no economic rights and has voting power (which shall in no event be less than one vote) equal to that number of votes required, when taken together with the aggregate voting power of the shares of our common stock over which ManagementCo then has voting power, to give ManagementCo a majority of the aggregate voting power of the Special Voting Share and the then-outstanding shares of common stock. Because the shares of our common stock over which ManagementCo will initially have voting power will provide it with in excess of a simple majority of the voting power of the outstanding shares of our common stock, the Special Voting Share will initially provide only a single additional vote to ManagementCo.

Even if the shares of our common stock over which ManagementCo has voting power decrease in the future below a simple majority of the voting power, the additional voting power provided to ManagementCo by the Special Voting Share means ManagementCo will still be able to control the election of our board of directors and generally control the outcome of all other matters requiring the approval of our stockholders, including the amendment of our articles of incorporation and bylaws and significant corporate transactions such as a change in control, merger, consolidation or sale of assets. Accordingly, ManagementCo will have significant influence with respect to our management, business plans and policies, including the appointment and removal of our officers. In particular, ManagementCo will be able to significantly influence or effectively prevent a change of control of our company or a change in the composition of our board of directors and could preclude any unsolicited acquisition of our company. The concentration of ownership could deprive you of an opportunity to receive a premium for your shares of common stock as part of a sale of our company and ultimately might affect the market price of our common stock. See "Description of Capital Stock—Anti-Takeover Effects of Our Articles of Incorporation and Bylaws and Certain Provisions of Nevada Law—Voting Rights of ManagementCo."

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ManagementCo will also control PS Partner Group and CompCo, which will allow ManagementCo to have oversight and control over a significant portion of our executives' compensation. Following the combined offering, a significant portion of our executives' compensation will be comprised of (i) Subordinated Performance Fees distributed by CompCo and (ii) interests in PS Partner Group that may become redeemable, subject to certain conditions, for shares of our common stock held by PS Partner Group. For additional information, see "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering."

***The disproportionate voting rights of ManagementCo will have the effect of concentrating voting control with ManagementCo, will limit or preclude your ability to influence corporate matters, may discourage or delay acquisition attempts for us that you might consider favorable and may have a potential adverse effect on the price of our common stock.***

Following the Reorganization Transactions, ManagementCo will hold our single outstanding Special Voting Share. The Special Voting Share will have no economic rights and will have voting power (which shall in no event be less than one vote) equal to that number of votes required, when taken together with the aggregate voting power of the shares of our common stock over which ManagementCo then has voting power, to give ManagementCo a majority of the aggregate voting power of the Special Voting Share and the then-outstanding shares of common stock. See "Description of Capital Stock—Preferred Stock—Special Voting Share." Because the shares of our common stock over which ManagementCo will initially have voting power will provide it with in excess of a simple majority of the voting power of the outstanding shares of our common stock, the Special Voting Share initially provide only a single additional vote to ManagementCo. However, should the shares of our common stock over which ManagementCo has voting power decrease in the future below a simple majority of the voting power, the additional voting power provided to ManagementCo by the Special Voting Share would create a disparity between ManagementCo's voting power and its economic interest in us, which disparity could be significant. ManagementCo will be able to control all matters submitted to our stockholders for majority approval, even if ManagementCo has voting power over less than 50% of the voting power of shares of our common stock. See "Description of Capital Stock—Anti-Takeover Effects of Our Articles of Incorporation and Bylaws and Certain Provisions of Nevada Law—Voting Rights of ManagementCo."

Our common stockholders' voting rights are further restricted by the provision in our articles of incorporation stating that if any person (other than ManagementCo or any person of which ManagementCo, or a wholly owned subsidiary of ManagementCo, serves as general partner or managing member or holds a majority by voting power of the interests entitled to vote generally in the election of the board of directors, managers or equivalent governing body of such person) directly or indirectly controls shares of our common stock representing more than 24.9% of the aggregate total votes to which the outstanding shares of common stock and the Special Voting Share would otherwise entitle their holders, then the shares of common stock in excess of such percentage directly or indirectly controlled by such person will not be entitled to vote on any matter and will not be considered to be outstanding when sending notices of a meeting of stockholders to vote on any matter (unless otherwise required by law), calculating required votes, determining the presence of a quorum or for other similar purposes under our articles of incorporation. See "Description of Capital Stock—Common Stock" and "Description of Capital Stock—Anti-Takeover Effects of Our Articles of Incorporation and Bylaws and Certain Provisions of Nevada Law—Loss of Voting Rights."

This concentration of control with ManagementCo and restriction on the voting rights of other holders of our common stock will limit or preclude the ability of other holders of our common stock to influence corporate matters for the foreseeable future, which, in turn increases the risk of divergent views over strategy or business combination and an increased risk of conflict or litigation caused by such divergent views. This concentrated control also could discourage, delay or prevent a transaction involving a change in control of our company, including actions that our stockholders may deem advantageous, or negatively affect the trading price of our common stock. In addition, this concentrated control could discourage proxy contests and make it more difficult for you and other stockholders to elect directors of your choosing and to cause us to take other corporate actions you desire. For further discussion of these and other such anti-takeover provisions, see "Description of Capital Stock—Anti-Takeover Effects of Our Articles of Incorporation and Bylaws and Certain Provisions of Nevada Law."

#### Our share structure involving a Special Voting Share differs from a more typical multi-class capital structure.
Our share structure involving a Special Voting Share differs from a more typical multi-class capital structure. In a typical multi-class capital structure, the shares of a certain class may give its holder additional voting power that is in direct proportion to the number of shares held by such holder. Consequently, the

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disposition by such holder of a number of such shares would result in a proportionate decrease in such holder's voting power. In contrast, the Special Voting Share will provide ManagementCo with voting power (which shall in no event be less than one vote) equal to that number of votes required, when taken together with the aggregate voting power of the shares of our common stock over which ManagementCo then has voting power, to give ManagementCo a majority of the aggregate voting power of the Special Voting Share and the then-outstanding shares of common stock. Because the shares of our common stock over which ManagementCo will initially have voting power will provide it with in excess of a simple majority of the voting power of the outstanding shares of our common stock, the Special Voting Share will initially provide only a single additional vote to ManagementCo. However, should the shares of our common stock over which ManagementCo has voting power decrease in the future below a simple majority of the voting power, the additional voting power provided to ManagementCo by the Special Voting Share would create a disparity between ManagementCo's voting power and its economic interest in us, which disparity could be significant. ManagementCo will be able to control all matters submitted to our stockholders for majority approval, even if ManagementCo has voting power over less than 50% of the voting power of shares of our common stock. Accordingly, you should have no expectation of having the ability to influence the outcome of any matters that are subject to stockholder approval.

#### We cannot predict the impact our share structure may have on the trading price of our common stock.
We cannot predict whether our share structure will result in a lower or more volatile market price of our common stock, in adverse publicity or other adverse consequences. Certain index providers have in the past announced restrictions on including companies with multiple class share structures in certain of their indices. Given the sustained flow of investment funds into passive strategies that seek to track certain indices, exclusion from stock indices would likely preclude investment by many of these funds and could make our common stock less attractive to other investors. As a result, the market price of our common stock could be materially adversely affected.

#### The market price of shares of our common stock may be volatile, which could cause the value of your investment to decline.
Even if a trading market develops, the market price of our common stock may be highly volatile and could be subject to wide fluctuations. Securities markets worldwide experience significant price and volume fluctuations. This market volatility, as well as general economic, market or political conditions, could reduce the market price of shares of our common stock regardless of our operating performance. In addition, our operating results could be below the expectations of public market analysts and investors due to a number of potential factors, including variations in our quarterly operating results or dividends, if any, to stockholders, additions or departures of key personnel, failure to meet analysts' earnings estimates, publication of research reports about our industry, litigation and government investigations, changes or proposed changes in laws or regulations or differing interpretations or enforcement thereof affecting our business, adverse market reaction to any indebtedness we may incur or securities we may issue in the future, changes in market valuations of similar companies or speculation in the press or investment community, announcements by our competitors, adverse publicity about the industries we participate in or individual scandals, and in response the market price of shares of our common stock could decrease significantly.

In the past few years, stock markets have experienced extreme price and volume fluctuations. In the past, following periods of volatility in the overall market and the market price of a company's securities, securities class action litigation has often been instituted against these companies. Such litigation, if instituted against us, could result in substantial costs and a diversion of our management's attention and resources.

***We will be a "controlled company" within the meaning of the corporate governance standards of the NYSE and, as a result, will qualify for exemptions from certain corporate governance requirements. If we rely on such exemptions in the future, you will not have the same protections afforded to stockholders of companies that are subject to such requirements.***

After the completion of the combined transaction, ManagementCo will continue to control a majority of the combined voting power of our capital stock entitled to vote generally in the election of directors. As a result, we will be a "controlled company" within the meaning of the corporate governance standards of the NYSE. Under these corporate governance standards, a company of which more than 50% of the voting power in the election of directors is held by an individual, group or another company is a "controlled company" and may elect not to comply with certain corporate governance requirements. For example, controlled companies:

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&nbsp;&nbsp;&nbsp;&nbsp;• are not required to have a board that is composed of a majority of "independent directors," as defined under the rules of such exchange;

&nbsp;&nbsp;&nbsp;&nbsp;• are not required to have a compensation committee that is composed entirely of independent directors with a written charter addressing the committee's purpose and responsibilities; and

&nbsp;&nbsp;&nbsp;&nbsp;• are not required to have a nominating and corporate governance committee that is composed entirely of independent directors with a written charter addressing the committee's purpose and responsibilities.

Although we do not intend to rely on the exemptions from these corporate governance requirements, if we do rely on such exemptions in the future, you will not have the same protections afforded to stockholders of companies that are subject to all of the corporate governance requirements of the NYSE.

Regardless of whether we rely on such exemptions in the future, ManagementCo will also have oversight and control over a significant portion of our executives' compensation. Following the combined offering, a significant portion of our executives' compensation will be comprised of (i) Subordinated Performance Fees distributed by CompCo and (ii) interests in PS Partner Group that may become redeemable, subject to certain conditions, for shares of our common stock held by PS Partner Group. Both CompCo and PS Partner Group will be controlled by ManagementCo, not our board of directors. For additional information, see "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering."

***We are an "emerging growth company," and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our common stock less attractive to investors.***

We are an "emerging growth company" as defined in the JOBS Act. We will remain an "emerging growth company" until the earliest to occur of:

&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year during which our total annual revenue equals or exceeds $1.235 billion (subject to adjustment for inflation);

&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year following the fifth anniversary of the combined offering;

&nbsp;&nbsp;&nbsp;&nbsp;• the date on which we have, during the previous three-year period, issued more than $1 billion in non-convertible debt; or

&nbsp;&nbsp;&nbsp;&nbsp;• the date on which we are deemed to be a "large accelerated filer" under the Exchange Act.

We may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including but not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

In addition, the JOBS Act permits an emerging growth company like us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We have elected to use this extended transition period until we are no longer an emerging growth company or until we affirmatively and irrevocably opt out of the extended transition period. Accordingly, this election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies. When a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, will adopt the new or revised standard at the time private companies adopt the new or revised standard, unless early adoption is permitted by the standard. As a result, our consolidated financial statements may not be comparable to the financial statements of companies that comply with new or revised accounting pronouncements as of public company effective dates.

Investors may find our common stock less attractive because we may rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our per share trading price may be materially adversely affected and more volatile.

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***We will incur increased costs and become subject to additional regulations and requirements as a result of becoming a public company, which could lower our profits, make it more difficult to run our business or divert management's attention from our business.***

As a public company, we will be required to commit significant resources and management time and attention to the requirements of being a public company, which will cause us to incur significant legal, accounting and other expenses that we have not incurred as a private company, including costs associated with public company reporting requirements. We also will incur costs associated with the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act") and related rules implemented by the SEC and the NYSE, and compliance with these requirements will place significant demands on our legal, accounting and finance staff and on our accounting, financial and information systems. In addition, we might not be successful in implementing these requirements. The expenses incurred by public companies generally for reporting (including the aforementioned increasingly prominent reporting requirements related to greenhouse gas emissions activity and climate-related financial risks) and corporate governance purposes have been increasing.

We expect these rules and regulations to increase our legal and financial compliance costs and to make some activities more time-consuming and costly, although we are currently unable to estimate these costs with any degree of certainty. These laws and regulations also could make it more difficult or costly for us to obtain certain types of insurance, including director and officer liability insurance, and we may be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. These laws and regulations could also make it more difficult for us to attract and retain qualified persons to serve on our board of directors, our board committees or as our executive officers. Furthermore, if we are unable to satisfy our obligations as a public company, we could be subject to delisting of our common stock, fines, sanctions and other regulatory action and potentially civil litigation.

***Failure to comply with requirements to design, implement and maintain effective internal controls could have a material adverse effect on our business and stock price.***

As a privately held company, we were not required to evaluate our internal control over financial reporting in a manner that meets the standards of publicly traded companies required by Section 404(a) of the Sarbanes-Oxley Act, or Section 404. As a public company, we will have significant requirements for enhanced financial reporting and internal controls. We are an emerging growth company, and thus we are exempt from the auditor attestation requirement of Section 404(b) of the Sarbanes-Oxley Act until such time as we no longer qualify as an emerging growth company. See also "—*We are an "emerging growth company," and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our common stock less attractive to investors.*" Regardless of whether we continue to qualify as an emerging growth company, we will still need to implement substantial internal control systems and procedures in order to satisfy the reporting requirements under the Exchange Act and applicable requirements.

The process of designing and implementing effective internal controls is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to expend significant resources to maintain a system of internal controls that is adequate to satisfy our reporting obligations as a public company. If we are unable to establish or maintain appropriate internal financial reporting controls and procedures, it could cause us to fail to meet our reporting obligations on a timely basis, result in material misstatements in our consolidated financial statements and harm our results of operations. In addition, we will be required, pursuant to Section 404, to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting in the second annual report following the completion of this offering. This assessment will need to include disclosure of any material weaknesses identified by our management in our internal control over financial reporting. The rules governing the standards that must be met for our management to assess our internal control over financial reporting are complex and require significant documentation, testing and possible remediation. Testing and maintaining internal controls may divert our management's attention from other matters that are important to our business. Once we are no longer an "emerging growth company," our auditors will be required to issue an attestation report on the effectiveness of our internal controls on an annual basis.

In connection with the implementation of the necessary procedures and practices related to internal control over financial reporting, we may identify deficiencies that we may not be able to remediate in time to meet the deadline imposed by the Sarbanes-Oxley Act for compliance with the requirements of Section 404. In addition, we may encounter problems or delays in completing the remediation of any deficiencies identified by our

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independent registered public accounting firm in connection with the issuance of their attestation report. Our testing, or the subsequent testing (if required) by our independent registered public accounting firm, may reveal deficiencies in our internal controls over financial reporting that are deemed to be material weaknesses. Any material weaknesses could result in a material misstatement of our annual or quarterly consolidated financial statements or disclosures that may not be prevented or detected, which may in turn result in sanctions or investigations by the NYSE, the SEC or other regulatory authorities. Failure to remedy any material weakness in our internal control over financial reporting, or to implement or maintain other effective control systems required of public companies, could also restrict our future access to the capital markets.

***If securities or industry analysts do not publish research or reports about our business, or if they downgrade their recommendations regarding our common stock, our stock price and trading volume could decline.***

The trading market for our common stock will be influenced by the research and reports that industry or securities analysts publish about us or our business. If any of the analysts who cover us downgrade our common stock or publish inaccurate or unfavorable research about our business, our common stock price may decline. If analysts cease coverage of us or fail to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause our common stock price or trading volume to decline and our common stock to be less liquid.

#### We may not have sufficient funds to pay dividends or other distributions on our common stock.
Although we intend to pay dividends on our common stock to the extent that we have sufficient funds legally available for such purpose, the declaration, amount and payment of any future dividends or other distributions on shares of common stock will be at the sole discretion of our board of directors in accordance with applicable law and we may reduce or discontinue entirely the payment of such dividends or other distributions at any time. Our board of directors may take into account, among other things, our results of operations, cash requirements, financial condition, contractual restrictions and other factors that our board of directors may deem relevant. Because we are a holding company and have no direct operations, we will only be able to pay dividends or other distributions from funds we receive from our subsidiaries. In addition, our ability to pay dividends or other distributions may be limited by the agreements governing any indebtedness we or our subsidiaries may incur in the future. Therefore, we cannot assure you that you will receive any dividends or other distributions on your common stock. See "Dividend Policy."

#### You may be diluted by the future issuance of additional common stock in connection with our incentive plans, acquisitions or otherwise.
After the combined transaction, we will have 600,000,000 shares of common stock authorized but unissued. Our articles of incorporation will authorize us to issue these shares of common stock and options, rights, warrants and appreciation rights relating to common stock for the consideration and on the terms and conditions established by our board of directors in its sole discretion, whether in connection with acquisitions or otherwise. Additionally, we have reserved an aggregate of 20,000,000 shares of common stock for issuance under our Equity Incentive Plan, which will be in effect for a period of 10 years from the date of its adoption (unless earlier terminated by our board of directors pursuant to its terms). Any common stock that we issue, including under our Equity Incentive Plan or other equity incentive plans that we may adopt in the future, would dilute the percentage ownership held by the initial investors in the PSUS IPO who receive shares of our common stock in the combined offering.

#### We may issue additional series of preferred stock whose terms could materially adversely affect the voting power or value of our common stock.
Upon the completion of the combined offering, ManagementCo will hold the Special Voting Share, a series of preferred stock, that has no economic rights and has voting power (which shall in no event be less than one vote) equal to that number of votes required, when taken together with the aggregate voting power of the shares of our common stock over which ManagementCo then has voting power, to give ManagementCo a majority of the aggregate voting power of the Special Voting Share and the then-outstanding shares of common stock. See "Description of Capital Stock—Preferred Stock—Special Voting Share."

Our articles of incorporation will authorize us to issue, without the approval of our stockholders, one or more additional classes or series of preferred stock having such voting powers, designations, preferences, limitations, restrictions and relative rights, including preferences over our common stock respecting dividends

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and distributions, as our board of directors may determine. See "Description of Capital Stock—Preferred Stock—Additional Series of Preferred Stock." The terms of one or more classes or series of preferred stock could adversely impact the voting power or value of our common stock. For example, we might grant holders of preferred stock the right to elect some number of our directors in all events or on the happening of specified events or the right to veto specified transactions. Similarly, the repurchase or redemption rights or liquidation preferences we might assign to holders of preferred stock could affect the residual value of the common stock.

#### Substantial sales of our common stock following the combined transaction could cause the market price of our common stock to decline.
The sale of substantial amounts of shares of our common stock in the public or private markets, or the perception that such sales could occur, could harm the prevailing market price of shares of our common stock. These sales, or the possibility that these sales may occur, also might make it more difficult for you to sell shares of our common stock in the future at a time and at a price that you deem appropriate. Upon completion of the combined transaction, we will have a total of 400,000,000 shares of our common stock outstanding. See "Summary—Reorganization Transactions" for more information.

All of the shares of our common stock delivered to the initial investors in the PSUS IPO in the combined offering will be freely tradable, without restriction or further registration under the Securities Act, by persons other than our "affiliates," as that term is defined under Rule 144 of the Securities Act ("Rule 144"). See "Shares Eligible for Future Sale." The initial investors in the PSUS IPO that receive shares of our common stock in the combined offering generally may sell those shares immediately in the public market. Although we have no actual knowledge of any plan or intention of any significant initial investor in the PSUS IPO to sell our common stock following the offering, it is likely that some of the initial investors in the PSUS IPO, possibly including significant investors, will sell their shares of our common stock. The sales of significant amounts of our common stock or the perception in the market that this will occur may decrease the market price of our common stock.

The shares of our common stock to be delivered to the private placement investors in the combined private placement will be "restricted securities," as defined in Rule 144 and may not be sold absent registration under the Securities Act or compliance with Rule 144 or in reliance on another exemption from registration.

The shares of our common stock held by our pre-IPO owners and management, including our Founder, after the combined offering will also be subject to certain restrictions on resale. We, PS Partner Group, and our officers and directors will sign lock-up agreements with the underwriters that will, subject to certain customary exceptions, restrict the sale of the shares of our common stock held by them for a period ending 180 days after the date of this prospectus. The representatives of the underwriters may, in their sole discretion, release all or any portion of the shares of common stock subject to such lock-up agreements at any time. See "Underwriting." In addition, in connection with the Strategic Investment, our pre-IPO owners, including our Founder and certain other senior professionals as well as the Strategic Investors, agreed not to sell interests in us held by them until the first anniversary of the combined offering. Our articles of incorporation will memorialize this one-year transfer restriction for shares of our common stock held by our pre-IPO owners. See "Description of Capital Stock—Common Stock" for additional information. Possible sales of these shares in the market following the waiver or expiration of such lock-up agreements and transfer restrictions could exert downward pressure on our stock price.

Upon the expiration of the applicable lock-up agreements and transfer restrictions described above, all of such shares will be eligible for resale in the public market subject, in the case of shares held by our affiliates, to the volume, manner of sale and other limitations under Rule 144. We expect that our Founder will continue to be considered an affiliate following the expiration of the one-year transfer restriction based on his expected share ownership. Certain of our other stockholders may also be considered affiliates at the time of expiration of the applicable lock-up agreement or transfer restriction. However, as a result of the registration rights agreements with ManagementCo and our pre-IPO owners, certain shares of our common stock may be eligible for future sale without complying with the conditions of Rule 144. See "Shares Eligible for Future Sale—Lock-Up Agreements, Transfer Restrictions and Registration Rights" and "Certain Relationships and Related Person Transactions—Registration Rights Agreements."

We intend to file one or more registration statements on Form S-8 under the Securities Act to register shares of our common stock or securities convertible into or exchangeable for shares of our common stock issued

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pursuant to our Equity Incentive Plan. Any such Form S-8 registration statements will automatically become effective upon filing. Accordingly, shares registered under such registration statements will be available for sale in the open market. If equity securities are granted under the Equity Incentive Plan and it is perceived they will be sold in the public market, then the price of our common stock could decline.

In the future, we may also issue our securities in connection with investments or acquisitions. The number of shares of our common stock issued in connection with an investment or acquisition could constitute a material portion of our then outstanding shares of common stock. As restrictions on resale end, the market price of our shares of common stock could drop significantly if the holders of these restricted shares sell them or are perceived by the market as intending to sell them. These factors could also make it more difficult for us to raise additional funds through future offerings of our common stock or other securities or to use our common stock as consideration for acquisitions of other businesses, investments or other corporate purposes.

***You may have additional difficulty determining liability and monetary damages for claims brought under the liability provisions of the Securities Act in connection with the combined offering.***

The Securities Act contains several provisions providing for private rights of action for investors who suffer losses due to material misstatements or omissions in connection with the offer and sale of securities. You may have additional difficulty determining liability and damages for claims brought under these provisions in connection with the combined offering. Even though this offering and the PSUS IPO are component parts of a single offering, it is uncertain how a court would assess liability and calculate any damages to which you may be entitled from us in a successful claim, given that investors in the combined offering will pay no additional or separate consideration for our shares of common stock.

***Our articles of incorporation will designate the Eighth Judicial District Court of the State of Nevada or the federal district courts of the United States of America, as applicable, as the sole and exclusive forum, and waive trial by jury, for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with the Company or the Company's directors, officers or other employees.***

Our articles of incorporation will provide that, unless we consent to the selection of an alternative forum, the Eighth Judicial District Court of the State of Nevada will, to the fullest extent permitted by law, be the sole and exclusive forum for: (i) any derivative action or proceeding brought on our behalf; (ii) any action asserting a breach of fiduciary duty owed by any current or former director, officer, stockholder or employee of the Company to the Company or our stockholders; (iii) any internal action (as defined in NRS 78.046), including any action arising under Nevada Revised Statutes ("NRS") Chapter 78, our articles of incorporation, our bylaws, any agreement entered into pursuant to NRS 78.365 or as to which the NRS confers jurisdiction on the District Court of the State of Nevada; or (iv) any action asserting a claim against us that is governed by the internal affairs doctrine.

Our articles of incorporation further will provide that, unless we consent in writing to the selection of an alternative forum, to the fullest extent permitted by law, the federal district courts of the United States of America will be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the federal securities laws of the United States, including, in each case, the applicable rules and regulations promulgated thereunder.

Our articles of incorporation further will provide that, to the fullest extent not inconsistent with any applicable U.S. federal laws, any and all "internal actions" (as defined in NRS 78.046) must be tried in a court of competent jurisdiction (subject to the exclusive forum provisions in our articles of incorporation) before the presiding judge as the trier of fact and not before a jury. Pursuant to NRS 78.046 (as amended effective May 30, 2025, pursuant to Assembly Bill No. 239), such requirement will conclusively operate as a waiver of the right to trial by jury by each party to any such internal action.

Any person or entity purchasing or otherwise acquiring any interest in any shares of our capital stock shall be deemed to have notice of and to have consented to the forum and jury waiver provisions in our articles of incorporation. These choice-of-forum and jury waiver provisions may limit a stockholder's ability to bring a claim in a different judicial forum, even if such stockholder may believe such different forum or trial by jury to be favorable or convenient for a specified class of disputes with the Company or the Company's directors, officers, other stockholders or employees, which may discourage such lawsuits. Alternatively, if a court were to find these provisions of our articles of incorporation inapplicable or unenforceable with respect to one or more of the specified types of actions or

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proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions or before a jury, which could materially adversely affect our business, financial condition and results of operations and result in a diversion of the time and resources of our management and board of directors.

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#### FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements that reflect our current views with respect to, among other things, our operations and financial performance. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "approximately," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include but are not limited to those described under "Risk Factors." These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this prospectus. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

#### MARKET AND INDUSTRY DATA
This prospectus includes market and industry data and forecasts that we have derived from independent consultant reports, publicly available information, various industry publications, other published industry sources and our internal data and estimates. Independent consultant reports, industry publications and other published industry sources generally indicate that the information contained therein was obtained from sources believed to be reliable.

Although we believe that these third-party sources are reliable, we do not guarantee the accuracy or completeness of this information, and neither we nor the underwriters have independently verified this information. Some market data and statistical information are also based on our good faith estimates, which are derived from management's knowledge of our industry and such independent sources referred to above. Certain market, ranking and industry data included elsewhere in this prospectus, including the size of certain markets and our size or position and the positions of our competitors within these markets, including our services relative to our competitors, are based on estimates of our management. These estimates have been derived from our management's knowledge and experience in the markets in which we operate, as well as information obtained from surveys, reports by market research firms, our investors, business organizations and other contacts in the markets in which we operate and have not been verified by independent sources. Unless otherwise noted, all of our market share and market position information presented in this prospectus is an approximation.

Our internal data and estimates are based upon information obtained from business organizations and other contacts in the markets in which we operate and our management's understanding of industry conditions. While we are not aware of any misstatements regarding any market, industry or similar data presented herein, such data involves risks and uncertainties and is subject to change based on various factors, including those described in "Risk Factors." These and other factors could cause our future performance to differ materially from our assumptions and estimates. See "Forward-Looking Statements."

#### TRADEMARKS, SERVICE MARKS AND TRADE NAMES
We own or have the right to use the trademarks, service marks and trade names used in connection with our business. All trademarks, service marks and trade names referred to in this prospectus are the property of their respective owners. Solely for convenience, the trademarks, service marks and trade names referred to in this prospectus are without the® and™ or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks, service marks and trade names. We do not intend our use or display of other companies' trade names, trademarks, or service marks to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

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#### USE OF PROCEEDS
The combined offering will not result in any proceeds to Pershing Square Inc. We are issuing shares of our common stock to the initial investors in the PSUS IPO for no additional consideration and, for the avoidance of doubt, 100% of the net proceeds of the PSUS IPO will be received by PSUS. See the accompanying PSUS Prospectus for more information on the use of the net proceeds from the PSUS IPO by PSUS. Similarly, the combined private placement will not result in any proceeds to Pershing Square Inc. We will issue shares of our common stock to the private placement investors in the PSUS Private Placement for no additional consideration and, for the avoidance of doubt, 100% of the net proceeds of the PSUS Private Placement will be received by PSUS.

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#### DIVIDEND POLICY
The declaration, amount and payment of any dividends or other distributions in the future will be made at the sole discretion of our board of directors in accordance with applicable law and we may reduce or discontinue entirely the payment of such dividends or other distributions at any time. Our board of directors may take into account, among other things, our results of operations, cash requirements, financial condition, contractual restrictions and other factors that our board of directors may deem relevant. Because we are a holding company and have no direct operations, we will only be able to pay dividends or other distributions from funds we receive from our subsidiaries. In addition, our ability to pay dividends or other distributions may be limited by the agreements governing any indebtedness we or our subsidiaries may incur in the future.

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#### CAPITALIZATION
The following table sets forth our consolidated cash and cash equivalents and capitalization as of December 31, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;• on a historical basis; and

&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma basis, giving effect to the combined transaction and the other transactions described in "Summary—Reorganization Transactions" and "Unaudited Pro Forma Consolidated Financial Information."

The information below is illustrative only and our capitalization following the combined transaction will be adjusted based on the actual number of PSUS Shares purchased in the PSUS IPO (including any PSUS Shares acquired by the underwriters in connection with the exercise of their option to purchase additional PSUS Shares as described in the accompanying PSUS Prospectus). Cash and cash equivalents are not components of our total capitalization. You should read this table together with the other information contained in this prospectus, including "Summary—Reorganization Transactions," "Unaudited Pro Forma Consolidated Financial Information," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the historical financial statements and related notes thereto included elsewhere in this prospectus.

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | | **Unaudited** <br>**Pershing Square** <br>**Inc.** <br>**Pro Forma** | **Unaudited** <br>**Pershing Square** <br>**Inc.** <br>**Pro Forma** |
|  | <br>**Pershing** <br>**Square** <br>**Holdco, L.P.** <br>**Actual** | **Scenario 1 –** <br>**$5 billion** <br>**PSUS**<br>**IPO and PSUS**<br>**Private**<br>**Placement** | **Scenario 2 –** <br>**$10 billion** <br>**PSUS** <br>**IPO and PSUS** <br>**Private** <br>**Placement**  |
| **(in thousands, except per share amounts)**<br>|  |  |  |
| Cash and cash equivalents | $55398  | &nbsp;&nbsp;&nbsp;&nbsp;$16701 | &nbsp;&nbsp;&nbsp;&nbsp;$16701  |
| Partners' capital controlling interests | &nbsp;&nbsp;1016418 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Common stock, par value $0.001 per share; no shares authorized and no shares issued and outstanding on an actual basis; 1,000,000,000 shares authorized and 400,000,000 shares issued and outstanding on a pro forma basis | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;400 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;400 |
| Special Voting Share, par value $0.001 per share; no shares authorized and no shares issued and outstanding on an actual basis; and one share authorized and one share issued and outstanding on a pro forma basis | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Non-controlling interests<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62695 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62695 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62695 |
| Retained earnings (accumulated deficit) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(135118) | &nbsp;&nbsp;&nbsp;&nbsp;(152694) |
| Additional paid-in capital | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;1069705 | &nbsp;&nbsp;&nbsp;&nbsp;1087281 |
| Total partners' capital | &nbsp;&nbsp;1079113 | &nbsp;&nbsp;&nbsp;&nbsp;997682 | &nbsp;&nbsp;&nbsp;&nbsp;997682 |
| Total capitalization | $1701202  | &nbsp;&nbsp;&nbsp;&nbsp;$1793449 | &nbsp;&nbsp;&nbsp;&nbsp;$1793449 |

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(1) Amount relates to consolidated VIEs for which we do not have any direct equity interests. 

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#### UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
The following unaudited pro forma condensed consolidated financial information gives pro forma effect to the Howard Hughes Transaction, the transactions described in "Summary—Reorganization Transactions—Corporate Conversion" and, except as described in the following sentence, the consummation of the combined transaction (collectively, the "Transactions") as though they had occurred as of the dates specified in accordance with Article 11 of the SEC's Regulation S-X, as amended. The following unaudited pro forma condensed consolidated financial information does not reflect adjustments related to the issuance of shares of our common stock to the initial investors in the PSUS IPO and to the private placement investors in the PSUS Private Placement, in each case, for no additional consideration; such adjustments will be reflected in a subsequent pre-effective amendment to the registration statement of which this prospectus forms a part.

The unaudited pro forma condensed consolidated financial information has been derived from the historical consolidated financial statements included elsewhere in this prospectus. The pro forma adjustments to the unaudited pro forma condensed consolidated statement of operations for the year ended December 31, 2025 assume that the Transactions occurred on January 1, 2025. The pro forma adjustments to the unaudited pro forma condensed consolidated statement of financial condition as of December 31, 2025 assume that the Transactions, except for the Howard Hughes Transaction, occurred on December 31, 2025. No adjustments related to the Howard Hughes Transaction have been applied to the unaudited pro forma condensed consolidated statement of financial condition as of December 31, 2025, as the impact is already reflected in the historical consolidated statement of financial condition as of December 31, 2025.

The unaudited pro forma condensed consolidated financial information is based upon available information and assumptions that we believe are reasonable and supportable. The unaudited pro forma condensed consolidated financial information is for illustrative and informational purposes only and is not necessarily indicative of the results of operations or financial position of the Company that would have occurred if the Transactions had been completed as of the dates set forth above, nor is it indicative of the future consolidated results of operations or financial condition of the Company. Further, pro forma adjustments represent management's best estimates based on information available as of the date of this prospectus and are subject to change as additional information becomes available.

Transaction accounting adjustments include the following:

&nbsp;&nbsp;&nbsp;&nbsp;• The effect of the Howard Hughes Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;• The effect of the "Offering Transactions" including:

&nbsp;&nbsp;&nbsp;&nbsp;○ The effect of our anticipated capital structure following the combined transaction and related transactions, including the conversion of Pershing Square Holdco, L.P. into a Nevada corporation pursuant to a statutory conversion;

&nbsp;&nbsp;&nbsp;&nbsp;○ The effect of replacing, in part, the LTIP with certain interests of PS Partner Group that may become redeemable, subject to certain conditions, for shares of our common stock held by PS Partner Group (see "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Redeemable Interests in PS Partner Group" for additional information);

&nbsp;&nbsp;&nbsp;&nbsp;○ The one-time expenses associated with this offering and the PS Private Placement and related transactions; and

&nbsp;&nbsp;&nbsp;&nbsp;○ The effect of the consummation of the PSUS IPO and PSUS Private Placement, as described in further detail below.

We have not made any pro forma adjustments relating to any incremental reporting, compliance, or investor relations costs that we may incur as a public company, as estimates of such expenses are not determinable.

The unaudited pro forma condensed consolidated financial information should be read together with "Summary—Reorganization Transactions—Corporate Conversion," "Capitalization," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Certain Relationships and Related Person Transactions" and the historical consolidated financial statements and related notes thereto included elsewhere in this prospectus.

The capital raised through the combined transaction is not readily determinable until the date of pricing of the PSUS IPO, which impacts the accounting for certain transaction accounting adjustments presented in the

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unaudited pro forma condensed consolidated financial information. Therefore, we have contemplated the effects of the combined transaction under two scenarios, which are presented separately within the unaudited pro forma condensed consolidated financial information. The two scenarios are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;• Scenario 1 – PSUS raises $5 billion of capital through the PSUS IPO and PSUS Private Placement, consisting of $2.2 billion raised in the PSUS IPO and $2.8 billion raised in the PSUS Private Placement (which includes the $100 million common shares investment we have agreed to make in the PSUS Private Placement as part of the Anchor Investment, as described in "Business—The Funds and HHH—Pershing Square USA, Ltd.");

&nbsp;&nbsp;&nbsp;&nbsp;• Scenario 2 – PSUS raises an additional $5 billion through the PSUS IPO and PSUS Private Placement, for an aggregate capital raise of $10 billion, consisting of $7.2 billion raised in the PSUS IPO and $2.8 billion raised in the PSUS Private Placement (which includes the $100 million common shares investment we have agreed to make in the PSUS Private Placement as part of the Anchor Investment).

In both Scenario 1 and Scenario 2, as part of the Anchor Investment, we also intend to invest $50 million in a private placement of preferred shares to be issued by PSUS in connection with and upon completion of the PSUS IPO. See "Business—The Funds and HHH—Pershing Square USA, Ltd." for more information on the Anchor Investment.

The Scenario 2 Offering Transactions adjustment column within the unaudited pro forma condensed consolidated statement of operations and unaudited pro forma condensed consolidated statement of financial condition table presents the incremental adjustments to illustrate the effects of the incremental capital raise described above.

#### Howard Hughes Transaction
On May 5, 2025, we completed the Howard Hughes Transaction. Upon completion of the transaction, we along with our existing funds owned 46.9% of outstanding shares of HHH common stock, although we have agreed generally to limit our voting power to 40.0% and our beneficial ownership to 47.0% (of which 15.2% is held by the Company and 31.7% is held by our core funds). Under the terms of the HHH Services Agreement, we provide investment advisory and other services to HHH and earn (i) a quarterly base fee of $3,750,000 ($15,000,000 on an annual basis) (the "HHH Base Management Fee"), subject to annual adjustment for inflation based on the Core PCE Price Index, and (ii) a quarterly variable fee equal to 0.375% of the excess value of the quarter-end stock price of shares of HHH common stock over an initial reference share price of $66.1453, subject to annual adjustment for inflation based on the Core PCE Price Index, multiplied by a reference share count of 59,393,938 shares, in each case, subject to adjustment for stock splits, reclassifications or similar capital changes (the "HHH Variable Management Fee" and together with the HHH Base Management Fee, the "HHH Fees"). See "Business—Advisory Fees and Compensation—HHH Fees" for more information. Because the HHH Variable Management Fee, if any, will be based on the future equity market capitalization of HHH, the impact of the HHH Variable Management Fee has been excluded from the unaudited pro forma condensed consolidated financial information presented herein, except for HHH Variable Management Fees earned subsequent to May 5, 2025, which are reflected in our historical audited consolidated statement of operations for the year ended December 31, 2025.

In connection with the Howard Hughes Transaction, we reduced the management fees paid to PSCM by each of the core funds by an amount equal to the HHH Fees multiplied by the percentage of HHH's shares outstanding held by each such fund attributable to its fee-paying capital.

We have elected to account for the investment in HHH using the fair value option, in accordance with ASC 825-10, *Financial Instruments*. As a part of the election, we will recognize any changes in the fair value of the investment in HHH which was acquired as a result of the HHH Transaction each reporting period. The impact of any future changes in the fair value of the investment in HHH has been excluded from the unaudited pro forma condensed consolidated financial information presented herein.

#### PSUS Private Placement
PSUS has secured $2.8 billion in commitments (which includes the $100 million common shares investment we have agreed to make) from a number of qualified investors (the "private placement investors") consisting of U.S. and international institutional investors, including family offices, pension funds, insurance companies, ultra-high-net-worth investors and other investors, that have agreed to acquire an aggregate of 55.6 million PSUS Shares at a price of $50.00 per share in a private placement transaction (the "PSUS Private Placement") exempt from registration under the Securities Act. We will deliver to each private placement investor, for no additional consideration, 30 shares of our

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common stock for every 100 PSUS Shares purchased in the PSUS Private Placement, for an aggregate of 16.7 million shares of our common stock, in a private placement transaction exempt from registration under the Securities Act (the "PS Private Placement" and together with the PSUS Private Placement, the "combined private placement"). We refer to the combined private placement and the combined offering together as the "combined transaction." The agreements with the private placement investors provide that the combined private placement will be settled concurrently with, and will be contingent upon, the closing of the combined offering and the satisfaction of other customary closing conditions.

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#### Unaudited Pro Forma Condensed Consolidated Statement of Operations <br>

#### For the Year Ended December 31, 2025

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | | |  | | **Scenario 1 – $5 billion** <br>**PSUS IPO and PSUS** <br>**Private Placement**  | **Scenario 1 – $5 billion** <br>**PSUS IPO and PSUS** <br>**Private Placement**  | **Scenario 1 – $5 billion** <br>**PSUS IPO and PSUS** <br>**Private Placement**  | **Scenario 2 – $10 billion** <br>**PSUS IPO and PSUS** <br>**Private Placement** | **Scenario 2 – $10 billion** <br>**PSUS IPO and PSUS** <br>**Private Placement** | **Scenario 2 – $10 billion** <br>**PSUS IPO and PSUS** <br>**Private Placement** | **Scenario 2 – $10 billion** <br>**PSUS IPO and PSUS** <br>**Private Placement** | **Scenario 2 – $10 billion** <br>**PSUS IPO and PSUS** <br>**Private Placement** |
|  | <br>**Historical** | <br>**Howard** <br>**Hughes** <br>**Transaction**  |  | <br>**As Adjusted** <br>**Before** <br>**Offering** <br>**Transactions** | **Offering** <br>**Transactions** <br>**Adjustments** |  | **Pershing** <br>**Square Inc.** <br>**Pro Forma** |  | **Offering** <br>**Transactions** <br>**Adjustments** |  | **Pershing** <br>**Square Inc.** <br>**Pro Forma** |  |
| **Revenue**<br>|  |  |  |  |  |  |  |  |  |  |  |  |
| Management fees | $230420 | &nbsp;&nbsp;$(1549) | 1(a) | &nbsp;&nbsp;$228995 | &nbsp;&nbsp;$100000 | 1(g) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$328995 |  | &nbsp;&nbsp;$100000 | 1(g) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$428995 |  |
| Management fees |  | &nbsp;&nbsp;&nbsp;&nbsp;5151 | 1(b) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  |
| Management fees |  | &nbsp;&nbsp;&nbsp;(5027) | 1(o) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  |
| Performance fees<sup>(1)</sup> | &nbsp;&nbsp;532088 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;532088 | &nbsp;&nbsp;&nbsp;(20000) | 1(i)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;512088 |  | &nbsp;&nbsp;(20000) | 1(i) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;492088 |  |
| **Total revenue** | &nbsp;&nbsp;**762508** | &nbsp;&nbsp;&nbsp;**(1425)** |  | &nbsp;&nbsp;**761083** | &nbsp;&nbsp;&nbsp;&nbsp;**80000** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**841083** |  | &nbsp;&nbsp;&nbsp;**80000** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**921083** |  |
| **Expenses**<br>|  |  |  |  |  |  |  |  |  |  |  |  |
| Profit-sharing partner compensation<sup>(1)</sup>  | &nbsp;&nbsp;459079  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;459079 | &nbsp;&nbsp;&nbsp;414000 | 1(j) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;932630 |  | &nbsp;&nbsp;&nbsp;55200 | 1(j) | &nbsp;&nbsp;&nbsp;&nbsp;1005406 |  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;(72267) | 1(k) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;17576 | 1(e)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;131818 | 1(e)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  |
| Affiliates fee rebate | &nbsp;&nbsp;&nbsp;77580 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;77580 | &nbsp;&nbsp;&nbsp;(77580) | 1(d) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  |
| General and administrative expense |  |  |  |  |  |  |  |  |  |  |  |  |
| General and administrative expense | &nbsp;&nbsp;&nbsp;42074 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;42074 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3300 | 1(l) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44988 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44988 |  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(386) | 1(r) |  |  |  |  |  |  |
| Employee compensation and benefits | &nbsp;&nbsp;&nbsp;20228 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;20228 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20228 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20228 |  |
| Depreciation and amortization expense | &nbsp;&nbsp;&nbsp;&nbsp;2301 | &nbsp;&nbsp;— |  | &nbsp;&nbsp;2301 | &nbsp;&nbsp;— |  | 2301 |  | &nbsp;&nbsp;— |  | 2301 |  |
| **Total expenses** | &nbsp;&nbsp;**601262** | &nbsp;&nbsp;**—** |  | &nbsp;&nbsp;**601262** | &nbsp;&nbsp;**398885** |  | **1000147** |  | &nbsp;&nbsp;**72776** |  | **1072923** |  |
| **Operating income (loss)** | &nbsp;&nbsp;**161246**  | &nbsp;&nbsp;&nbsp;**(1425)**  |  | &nbsp;&nbsp;**159821** | &nbsp;&nbsp;**(318885)** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(159064)** |  | &nbsp;&nbsp;&nbsp;&nbsp;**7224** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(151840)** |  |
| Unrealized gain (loss) on HHH shares held at fair value | &nbsp;&nbsp;110700  |  |  | &nbsp;&nbsp;110700 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110700 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110700 |  |
| Interest income | &nbsp;&nbsp;&nbsp;16910  | &nbsp;&nbsp;(12480) | 1(n) | &nbsp;&nbsp;&nbsp;&nbsp;4430 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(99) | 1(r) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4331 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4331 |  |
| &nbsp;&nbsp;Unrealized gain (loss) on investment in Pershing Square, L.P. held at fair value<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;12224 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;12224 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12224 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12224 |  |
| Other income | &nbsp;&nbsp;&nbsp;&nbsp;5241 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;5241 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5241 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5241 |  |
| Interest expense | &nbsp;&nbsp;&nbsp;&nbsp;(2302) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;(2302) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2302 | 1(p) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8380) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8380) |  |
| Interest expense |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;(8380)  | 1(q) |  |  | &nbsp;&nbsp;— |  |  |  |
| &nbsp;&nbsp;**Total non-operating income (expenses)** | &nbsp;&nbsp;**142773** | &nbsp;&nbsp;**(12480)** |  | &nbsp;&nbsp;**130293** | &nbsp;&nbsp;**(6177)** |  | **124116** |  | &nbsp;&nbsp;**—** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**124116** |  |
| **Net income (loss) before taxes** | &nbsp;&nbsp;**304019**  | &nbsp;&nbsp;**(13905)** |  | &nbsp;&nbsp;**290114**  | &nbsp;&nbsp;**(325062)**  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(34948)** |  | &nbsp;&nbsp;&nbsp;&nbsp;**7224**  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(27724)** |  |
| Income tax expense (benefit) | &nbsp;&nbsp;&nbsp;22309 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(556)  | 1(c)  | &nbsp;&nbsp;&nbsp;21753  | &nbsp;&nbsp;(56061)  | 1(f)  | (34308) |  | &nbsp;&nbsp;(166)  | 1(f)  | (34474) |  |
| **Net income (loss)** | &nbsp;&nbsp;**281710** | &nbsp;&nbsp;**(13349)** |  | &nbsp;&nbsp;**268361**  | &nbsp;&nbsp;**(269001)**  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(640)** |  | &nbsp;&nbsp;&nbsp;&nbsp;**7390**  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6750** |  |
| Less: Net (income) loss attributable to non-controlling interest<sup>(1)</sup> | &nbsp;&nbsp;(31933) | &nbsp;&nbsp;— |  | &nbsp;&nbsp;(31933) | &nbsp;&nbsp;— |  | (31933) |  | &nbsp;&nbsp;— |  | (31933) |  |
| &nbsp;&nbsp;**Net income (loss) attributable to Pershing Square Inc.** | **$249777** | &nbsp;&nbsp;**$(13349)** |  | &nbsp;&nbsp;**$236428** | &nbsp;&nbsp;**(269001)** |  | **$(32573)** |  | &nbsp;&nbsp;**$7390** |  | **$(25183)** |  |
| Basic and diluted weighted average shares outstanding | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  |  |  |  |  | &nbsp;&nbsp;400000000 | 1(h) |  |  | &nbsp;&nbsp;400000000 | 1(h) |
| Basic and diluted earnings per share | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.08) | 1(h) |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.06) | 1(h) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(1) Includes amounts attributable to consolidated VIEs for which Pershing Square Holdco, L.P. does not have any direct equity interests. 

The accompanying notes form an integral part of these unaudited pro forma condensed consolidated financial statements.<br>

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#### **TABLE OF CONTENTS**

#### Unaudited Pro Forma Condensed Consolidated Statement of <br>

#### Financial Condition <br>

#### As of December 31, 2025

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | | **Scenario 1 — $5 billion** <br>**PSUS IPO and PSUS** <br>**Private Placement** | **Scenario 1 — $5 billion** <br>**PSUS IPO and PSUS** <br>**Private Placement** | **Scenario 1 — $5 billion** <br>**PSUS IPO and PSUS** <br>**Private Placement** | **Scenario 2 — $10 billion** <br>**PSUS IPO and PSUS** <br>**Private Placement**  | **Scenario 2 — $10 billion** <br>**PSUS IPO and PSUS** <br>**Private Placement**  | **Scenario 2 — $10 billion** <br>**PSUS IPO and PSUS** <br>**Private Placement**  |
|  | <br>**Historical** | **Offering** <br>**Transactions** <br>**Adjustments** |  | **Pershing**<br>**Square Inc.**<br>**Pro Forma** | **Offering**<br>**Transactions**<br>**Adjustment** |  | **Pershing** <br>**Square Inc.** <br>**Pro Forma**  |
| **Assets:**<br>|  |  |  |  |  |  |  |
| Cash and cash equivalents | &nbsp;&nbsp;&nbsp;&nbsp;$55398 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$(3300)  | 2(a)  | &nbsp;&nbsp;&nbsp;&nbsp;$16701 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;$16701  |
| Cash and cash equivalents |  | &nbsp;&nbsp;&nbsp;&nbsp;(134100) | 2(b) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Cash and cash equivalents |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34800)  | 2(d) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Cash and cash equivalents |  | &nbsp;&nbsp;&nbsp;&nbsp;134100 | 2(e) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Cash and cash equivalents |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(597) | 2(g) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Restricted cash | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;119 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;119 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;119  |
| Performance fees receivable | &nbsp;&nbsp;&nbsp;&nbsp;497330 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;497330 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;497330 |
| Due from affiliates<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15614 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) | 2(g) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15611 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15611 |
| Prepaid expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1345 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1345 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1345 |
| Investment in Pershing Square, L.P., at fair value<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;79288 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;79288 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;79288 |
| &nbsp;&nbsp;Investment in PSUS, at fair value | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;134100 | 2(b) | &nbsp;&nbsp;&nbsp;&nbsp;134100 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;134100 |
| Investment in HHH, at fair value | &nbsp;&nbsp;&nbsp;&nbsp;717930 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;717930 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;717930 |
| Deferred HHH Services Agreement premium | &nbsp;&nbsp;&nbsp;&nbsp;283158 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;283158 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;283158 |
| Lease right-of-use assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28441 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28441 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28441 |
| Fixed assets and leasehold improvements, net of accumulated depreciation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14984 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14984 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14984 |
| Deferred sublease incentive | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4129 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4129 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4129 |
| &nbsp;&nbsp;Other assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3466 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3153) | 2(g) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;313 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;313 |
| &nbsp;&nbsp;**Total assets** | **$1701202** | &nbsp;&nbsp;&nbsp;&nbsp;**$92247** |  | **$1793449** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** |  | **$1793449** |
| **Liabilities:**<br>|  |  |  |  |  |  |  |
| &nbsp;&nbsp;Accrued compensation and benefits<sup>(1)</sup> | &nbsp;&nbsp;$426094 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;$426094 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;$426094 |
| Performance fee distribution payable<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54839  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54839  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54839 |
| Affiliate fee rebate payable  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24144 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24144  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24144 |
| Deferred revenue | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3786 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3786 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3786 |
| Distribution payable to partners | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10104  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10104  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10104 |
| Accounts payable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8620 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3287) | 2(g) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5333 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5333 |
| Taxes payable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17029  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32973  | 2(i) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50002 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50002 |
| Operating lease liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42673 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42673 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42673 |
| Loans payable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34800 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34800) | 2(d) | &nbsp;&nbsp;&nbsp;&nbsp;134100 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;134100 |
| Loans payable |  | &nbsp;&nbsp;&nbsp;&nbsp;134100 | 2(e)<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Deferred tax liability | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44692  | 2(i)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44692  | &nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44692 |
| **Total liabilities** | &nbsp;&nbsp;&nbsp;&nbsp;**622089** | &nbsp;&nbsp;&nbsp;&nbsp;**173678** |  | &nbsp;&nbsp;&nbsp;&nbsp;**795767** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** |  | &nbsp;&nbsp;&nbsp;&nbsp;**795767** |
| &nbsp;&nbsp;Commitments and contingencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| **Equity**<br>|  |  |  |  |  |  |  |
| &nbsp;&nbsp;Partners' capital controlling interests | &nbsp;&nbsp;1016418 | &nbsp;&nbsp;(1015952)  | 2(c)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;Partners' capital controlling interests |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(466)  | 2(g) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Common stock | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;400 | 2(c) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;400 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;400 |
| Special Voting Share | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 2(c) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Non-controlling interest in consolidated variable interest entities<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62695 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62695 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62695 |
| Retained earnings (accumulated deficit) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3300)  | 2(a)  | &nbsp;&nbsp;&nbsp;(135118) | &nbsp;&nbsp;(17576) | 2(h) | &nbsp;&nbsp;&nbsp;(152694)  |
| Retained earnings (accumulated deficit) |  | &nbsp;&nbsp;&nbsp;&nbsp;(131818) | 2(h) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;Additional paid-in capital | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;1015552  | 2(c) | &nbsp;&nbsp;1069705 | &nbsp;&nbsp;&nbsp;17576 | 2(h) | &nbsp;&nbsp;1087281  |
| &nbsp;&nbsp;Additional paid-in capital |  | &nbsp;&nbsp;&nbsp;&nbsp;131818 | 2(h) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;Additional paid-in capital |  | (77665)  | 2(i)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| **Total equity** | **1079113** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(81431)** |  | **997682** | &nbsp;&nbsp;**—** |  | **997682** |
| **Total liabilities and equity** | **$1701202** | **$92247** |  | **$1793449** | &nbsp;&nbsp;**$—** |  | **$1793449** |

---

(1) Includes amounts attributable to consolidated VIEs for which Pershing Square Holdco, L.P. does not have any direct equity interests.

The accompanying notes form an integral part of these unaudited pro forma condensed consolidated financial statements.<br>

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#### **TABLE OF CONTENTS**

#### Notes to the Unaudited Pro Forma Condensed Consolidated Financial Information
The unaudited pro forma condensed consolidated statement of operations for the year ended December 31, 2025 and the unaudited pro forma condensed consolidated statement of financial condition as of December 31, 2025 include the following adjustments:

1. **Adjustments to the Unaudited Pro Forma Condensed Consolidated Statement of Operations** 

The adjustments to the unaudited pro forma condensed consolidated statement of operations for the year ended December 31, 2025 are as follows:

(a)<br> *Management fees* – Reflects the reduction of management fees paid to PSCM by the core funds in connection with the Howard Hughes Transaction as outlined within the section above titled "Howard Hughes Transaction."

(b)<br> *Management fees* – Reflects the HHH Base Management Fee as outlined within the section above titled "Howard Hughes Transaction."

(c)<br> *Income tax expense* – Reflects the tax effects of the transaction accounting adjustments related to the Howard Hughes Transaction.

(d) *Affiliates fee rebate* – Reflects the adjustment to eliminate the affiliates fee rebate for PSH. We historically rebated management and performance fees attributable to shares of PSH held by our employees and their affiliates. Following the Holdco Reorganization, we ceased to provide these rebates, which were continued instead by PS Partner Group and CompCo. Following the combined offering, PS Partner Group and CompCo will no longer rebate the fees of employees invested in PSH. 

(e) *Profit-sharing partner compensation* – Certain senior professionals are eligible to receive an additional interest in the LTIP upon the occurrence of a "Terminal Value Event," including, for this purpose, this offering. See "Executive Compensation—Narrative Disclosure to Summary Compensation Table—LTIP" and "Executive Compensation—Narrative Disclosure to Summary Compensation Table—Termination and Change of Control Provisions" for more information. The adjustment reflects the incremental compensation recognized for the additional interests which will be vested in the LTIP upon the consummation of the combined offering. The following table reflects the adjustment in the two scenarios as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended** <br>**December 31, 2025**  | **For the Year Ended** <br>**December 31, 2025**  |
| **(in thousands)**  | **Scenario 1** <br>**–$5 billion** <br>**PSUS IPO** <br>**and PSUS** <br>**Private** <br>**Placement**  | **Scenario 2** <br>**–$10 billion** <br>**PSUS IPO** <br>**and PSUS** <br>**Private** <br>**Placement**  |
| Profit-sharing partner compensation  | $131818  | $149394 |

---

(f) *Income tax expense –* Prior to the effectiveness of the registration statement of which this prospectus forms a part, as part of the Corporate Conversion, Pershing Square Holdco, L.P. will convert into a Nevada corporation by means of a statutory conversion and change its name to Pershing Square Inc. Reflects the pro forma tax impact, inclusive of the Offering Transactions adjustments, assuming Pershing Square Holdco, L.P. was subject to U.S. federal tax for the periods presented. 

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(g) *Management fees –* As described in "Business—The Funds and HHH—Pershing Square USA, Ltd." and the accompanying PSUS Prospectus, pursuant to the investment management agreement between PSUS and PSCM, as investment manager, PSCM will be paid a quarterly management fee equal to 0.5% (2.0% on an annual basis) of the Net Asset Value of PSUS, payable in advance at the beginning of each quarter. Represents the adjustment to reflect the management fees PSCM would have earned from PSUS assuming PSUS had fee-paying capital for the period presented in an amount equal to an assumed aggregate offering size in the PSUS IPO and PSUS Private Placement as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended**<br>**December 31, 2025**  | **For the Year Ended**<br>**December 31, 2025**  |
| **(in thousands)**  | **Scenario 1**<br>**–$5 billion**<br>**PSUS IPO**<br>**and PSUS**<br>**Private**<br>**Placement** | **Scenario 2**<br>**–$10 billion**<br>**PSUS IPO**<br>**and PSUS**<br>**Private**<br>**Placement** |
| Management fees | $100000 | $200000 |

---

This offering is conditioned upon the consummation of the PSUS IPO, and the combined private placement is contingent upon the closing of the combined offering and the satisfaction of other customary closing conditions.

(h)<br> *Earnings (loss) per share* – Represents the pro forma basic and diluted earnings (loss) per share calculated after giving effect to the shares of our common stock delivered in the combined transaction.

(i)<br> *Performance fees* – As described in "Business—Advisory Fees and Compensation—PSH—<br>

Performance Fee," pursuant to the investment management agreement between PSH and PSCM, as investment manager, the performance fee PSCM is paid by PSH is reduced by the "potential reduction amount," consisting of (a) 20% of any performance fees earned from non-PSH funds, including PSLP and PSINTL, and (b) 20% of any management fees earned from certain future non-PSH funds that do not have performance fees, which will include PSUS following the consummation of the PSUS IPO. Represents the adjustment to reflect the reduction in the performance fees PSCM would have received from PSH assuming an aggregate offering size in the PSUS IPO and PSUS Private Placement as follows:

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| | | |
|:---|:---|:---|
|  | **For the Year Ended** <br>**December 31, 2025**  | **For the Year Ended** <br>**December 31, 2025**  |
| **(in thousands)**  | **Scenario 1** <br>**–$5 billion** <br>**PSUS IPO** <br>**and PSUS** <br>**Private** <br>**Placement**  | **Scenario 2** <br>**–$10 billion** <br>**PSUS IPO** <br>**and PSUS** <br>**Private** <br>**Placement**  |
| Performance fees  | $(20000)  | $(40000) |

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This offering is conditioned upon the consummation of the PSUS IPO, and the combined private placement is contingent upon the closing of the combined offering and the satisfaction of other customary closing conditions.

(j) *Profit-sharing partner compensation* – In connection with the combined offering, the LTIP will be amended and replaced in part by certain interests of PS Partner Group that may become redeemable, subject to certain conditions, for shares of our common stock held by PS Partner Group, in order to continue to align certain of our senior professionals with our long-term investment horizon. Represents the adjustment to reflect the amortization expense associated with the vesting of such interests of PS Partner Group held by profit-sharing partners over 10 years. 

(k) *Profit-sharing partner compensation –* Historically, we have accounted for our profit-sharing arrangement and the discretionary portion of our LTIP awards as compensation expense. Both of these awards were considered cash-based profit-sharing arrangements in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification 710 Compensation-General. Following the combined offering, the profit-sharing arrangement and 

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LTIP related to interests in PS Partner Group and Pershing Square and its consolidated subsidiaries (including PSCM) will cease. Amounts historically allocated to profit-sharing partners and LTIP participants will instead be distributed in the form of dividends to all holders of our common stock, including former profit-sharing partners and LTIP participants, in their capacity as equity holders. As a result, certain amounts paid to former profit-sharing partners and LTIP participants will no longer be accounted for as compensation expense in accordance with ASC 710. Certain amounts paid to CompCo will continue to be accounted for as profit-sharing partner compensation.

(l)<br> *General and administrative expense* – Reflects estimated transaction costs not reflected in the historical period.

(m)<br> *Reserved*

(n) *Interest income* – The Howard Hughes Transaction was consummated using a portion of the proceeds received from the Strategic Investment. Reflects the adjustment to remove the interest income related to the proceeds used in the Howard Hughes Transaction. 

(o) *Amortization of deferred HHH Services Agreement premium* – Reflects the incremental amortization of the deferred asset which was recognized in connection with the Howard Hughes Transaction. We recognized a $292.8 million deferred asset for the premium paid above HHH's publicly traded share price (the "HHH Premium"), which is deemed for accounting purposes to represent the amount paid to obtain the HHH Services Agreement, when we completed the Howard Hughes Transaction. The HHH Premium is amortized as contra-revenue in management fees on a straight-line basis over a period of 20 years beginning May 5, 2025. 

(p)<br> *Interest expense* – Reflects the adjustment to the historical interest expense as we intend to repay our outstanding loan balance on or immediately prior to the completion of the combined offering.

(q) *Interest expense* – Reflects the adjustment to recognize the incremental interest expense associated with the term loan facility to facilitate our investment in PSUS as noted in adjustment 2(e) below, which adjustment is not impacted by the amount of capital raised through the PSUS IPO and PSUS Private Placement. The increase in our interest expense ($8.1 million for the year ended December 31, 2025) is calculated based on an interest rate of 6.25%. An increase or decrease in the interest rate of 1/8% would result in an increase or decrease in estimated interest expense of $0.2 million for the year ended December 31, 2025.

(r)<br> *General and administrative and interest income* – Reflects the adjustment to deconsolidate PSUS, which will no longer be a consolidated subsidiary following the combined offering.

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2. **Adjustments to the Unaudited Pro Forma Condensed Consolidated Statement of Financial Condition** 

The adjustments to the unaudited pro forma condensed consolidated statement of financial condition as of December 31, 2025 are as follows:

(a) *Cash and cash equivalents* – Reflects the adjustment related to estimated unpaid offering costs of $3.3 million from this offering with a corresponding decrease to retained earnings. We may incur additional costs through the completion of the combined offering which we expect to be settled in cash. 

(b)<br> *Cash and cash equivalents* – Reflects the adjustment related to the Anchor Investment we have agreed to make in PSUS as described in "Business—The Funds and HHH—Pershing Square USA, Ltd."

(c) *Partners' capital and common stock* – Reflects 400,000,000 shares of our common stock outstanding after giving effect to the Corporate Conversion as described in "Summary—Corporate Conversion." As described elsewhere in this prospectus, the issuance of shares of our common stock to the initial investors in the PSUS IPO and to the private placement investors in the PSUS Private Placement will be accompanied by a contribution to us of an equal number of shares of our common stock by the pre-IPO management owners. Accordingly, the combined transaction will not result in any change in the total number of shares of our common stock outstanding 

(d)<br> *Loan payable* – We intend to repay our outstanding loan balance on or immediately prior to the completion of the combined offering.

(e) *Loan payable* – As noted in adjustment 2(b) above, we have agreed to make the Anchor Investment in PSUS. To facilitate this investment, we intend to finance the purchase of PSUS Shares using a term loan facility. The adjustment is not impacted by the amount of capital raised through the PSUS IPO and PSUS Private Placement. 

(f)<br> *Reserved*

(g)<br> *Deconsolidation of PSUS* – Reflects the adjustment to deconsolidate PSUS, which will no longer be a consolidated subsidiary following the combined offering.

(h) *Additional paid-in capital* – Certain senior professionals are eligible to receive an additional interest in the LTIP upon the occurrence of a "Terminal Value Event," including, for this purpose, this offering. See "Executive Compensation—Narrative Disclosure to Summary Compensation Table—LTIP" and "Executive Compensation—Narrative Disclosure to Summary Compensation Table—Termination and Change of Control Provisions" for more information. The adjustment reflects the stock-based compensation expense which will be recognized upon the consummation of the combined offering. The following table reflects the adjustment in the two scenarios as follows: 

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| | | |
|:---|:---|:---|
| **(in thousands)** | **Scenario 1** <br>**–$5 billion** <br>**PSUS IPO and** <br>**PSUS Private**<br>**Placement** | **Scenario 2**<br>**–$10 billion**<br>**PSUS IPO and**<br>**PSUS Private**<br>**Placement**  |
| Additional paid-in capital | &nbsp;&nbsp;$131818 | &nbsp;&nbsp;$149394 |

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(i) *Income tax expense* – Prior to the effectiveness of the registration statement of which this prospectus forms a part, as part of the Corporate Conversion, Pershing Square Holdco, L.P. will convert into a Nevada corporation by means of a statutory conversion and change its name to Pershing Square Inc. Reflects the pro forma tax impact, inclusive of the Offering Transaction adjustments, assuming Pershing Square Holdco, L.P. was subject to U.S. federal tax for the periods presented.

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#### MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION <br>

#### AND RESULTS OF OPERATIONS
*The following discussion should be read in conjunction with the "Summary Historical and Pro Forma Consolidated Financial Information," "Unaudited Pro Forma Consolidated Financial Information" and the financial statements and related notes thereto included elsewhere in this prospectus. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management's expectations. Factors that could cause such differences are discussed in "Forward-Looking Statements" and "Risk Factors."* 

#### Business Overview
We are a leading alternative asset manager with approximately $30.7 billion in total AUM and $20.7 billion in Fee-Paying AUM, of which 96% is permanent capital, as of December 31, 2025. We believe our business model is simple and highly scalable. We employ a disciplined, research-intensive approach to fundamental value investing to preserve and grow our permanent capital at high rates of return using a set of core investment principles and opportunistic asymmetric hedges. We complement our organic growth from time to time with innovations like the Howard Hughes Transaction and by selectively launching other investment funds and completing other corporate transactions that create permanent capital, in each case, that leverage our core competencies to create large 'overnight' (after the completion of a new offering or corporate transaction) increases in our capital base without the requirement for significant new investment in personnel, infrastructure, and operating costs. We believe that we have a distinctive business approach as compared to other alternative asset managers and are well positioned to continue to compound our permanent capital at high rates of return, while continuing to explore opportunities that leverage our core competencies.

We conduct our business and generate substantially all of our revenues primarily in the United States through one operating and reportable segment. Our single reportable segment reflects the allocation of our resources, operational decision-making and assessment of our financial performance by our chief operating decision maker using a consolidated, "one-firm approach," with a single expense pool.

#### Trends Affecting Our Business
We benefit from AUM that principally consists of "permanent capital" defined as capital that is not subject to withdrawal or redemption at the option of the fund investor or stockholder. Our organic AUM growth relies primarily on compounding our permanent capital at high rates of return. As a result, unlike alternative asset managers who rely in large part on frequent fundraising to replace capital from traditional fixed-term drawdown funds and/or open-ended funds, our results are less sensitive to the market for raising investment capital, and we do not require the headcount and other costs required of a large fundraising operation enabling us to achieve greater operating leverage. Our permanent capital also enables us to invest with a long-term ownership horizon because we are not beholden to short-term investor capital flows.

We generate substantially all of our revenue from management fees and performance fees. We retain all of the management fees earned from our funds. With respect to performance fees, Pershing Square Inc. is entitled to the "Preferred Performance Fees," which are the performance fees earned on the first five percentage points of fund returns, net of management fees, above the applicable high-water mark from certain core funds and subject to certain other offsettable fees.

Any realized performance fees in excess of the Preferred Performance Fees, which we refer to as the "Subordinated Performance Fees," are paid to CompCo and used to compensate our investment professionals and certain other employees. To the extent realized performance fees are insufficient to pay us some or all of the Preferred Performance Fee, the unpaid portion accrues to subsequent crystallization periods until paid in full. We believe this arrangement results in recurring revenue that is less volatile and more predictable than conventional performance fee arrangements, with the result that effectively all of our earnings are stable, recurring fee-related earnings. See "—Key Components of Our Results of Operations—Income—Performance Fees—Allocation of Performance Fee Revenue" for an illustration of our Preferred Performance Fee arrangement for the allocation of performance fee revenue, as well as the relevant high-water marks, over the six-year period ending December 31, 2025.

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#### **TABLE OF CONTENTS**
Because the management fees we earn are a function of the Fee-Paying AUM of our funds and the market capitalization of HHH, and the Preferred Performance Fees we receive depend on appreciation in Net Asset Value above a fund's high-water mark, our results are correlated with the performance of our funds and HHH. Our results and the performance of our funds and HHH, in turn, may be influenced by the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;• *Macroeconomic Factors.* Changes in commodity and retail price inflation, the interest rate environment, consumer demand levels, and other market, economic and geopolitical conditions in the United States and, to an extent, the rest of the world can materially affect the value of the investments held by our funds and HHH. We believe our disciplined investment philosophy, which focuses on seeking investments that are not materially negatively affected by extrinsic factors that we cannot control (i.e., factors that are not inherent to the business itself), has historically contributed to the stability of our performance throughout market cycles. We also look for opportunities to benefit from macroeconomic trends where we have variant views from the public market consensus through our asymmetric hedging strategy, which has been a substantial contributor to our investment strategy's long-term performance.

&nbsp;&nbsp;&nbsp;&nbsp;• *Market Dynamics.* In recent years, there has been significant equity market and single-name stock price volatility driven in part by the outsized impact of trading activity by short-term, highly leveraged investors who rapidly buy and sell securities based on small surprises in short-term company performance or macroeconomic data. We view such volatility as beneficial to fundamental value investors that manage permanent capital because it can create attractive buying opportunities coupled with a high degree of liquidity.

&nbsp;&nbsp;&nbsp;&nbsp;• *Commitment to Fund Investors*. Our fund investors come first. While we believe that our commitment to our fund investors is in the long-term interest of our business and our common stockholders, in prioritizing our fund investors, we may take actions that could reduce our profits in the short term. For example, in February 2024, we amended the investment management agreement between PSH and PSCM to provide for a fee offset arrangement that reduces the performance fees we receive from PSH as a function of the fees we receive from other funds we manage, which will include "offsettable management fees" from PSUS upon completion of the PSUS IPO. For more information, please see "—Key Components of our Results of Operations—Income—Performance Fees." Similarly in connection with the Howard Hughes Transaction, we reduced the management fees paid to PSCM by each of the core funds by an amount equal to the HHH Fees multiplied by the percentage of HHH's shares outstanding held by each such fund attributable to its fee-paying capital.

&nbsp;&nbsp;&nbsp;&nbsp;• *Selective Launch of Other Investment Funds.* In addition to continuing to compound our permanent capital at high rates of return, our growth strategy may include launching new funds or completing transactions that increase our permanent capital that leverage our core competencies from time to time. Such opportunistic inorganic AUM growth will be impacted by fundamental asset management trends that include (i) the shifting asset allocation preferences of individual investors and (ii) participation rates by retail investors in public equity markets. We believe our track record of innovation, large brand-name profile and substantial media following will assist us in launching new funds and strategies that are responsive to evolving investor demands.

#### Howard Hughes Transaction
On May 5, 2025, we completed the Howard Hughes Transaction. Upon completion of the transaction, we along with our existing funds owned 46.9% of outstanding shares of HHH common stock, although we have agreed generally to limit our voting power to 40.0% and our beneficial ownership to 47.0% of which 15.2% is held by PSI and 31.7% is held by the core funds. Under the terms of the HHH Services Agreement, we provide investment advisory and other services to HHH and earn (i) a quarterly base fee of $3,750,000 ($15,000,000 on an annual basis) (the "HHH Base Management Fee") and (ii) a quarterly variable fee equal to 0.375% of the excess value of the quarter-end stock price of shares of HHH common stock over an initial reference share price of $66.1453, multiplied by a reference share count of 59,393,938 shares (the "HHH Variable Management Fee" and together with the HHH Base Management Fee, the "HHH Fees"). The HHH Base Management Fee and reference share price are subject to annual adjustment for inflation based on the Core PCE Price Index, and the reference share price and reference share count are subject to adjustment for stock splits, reclassifications or similar capital changes. We are not entitled to any type of performance fee or incentive allocation from HHH.

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#### **TABLE OF CONTENTS**

#### PSUS IPO and PSUS Private Placement
As reflected in "Unaudited Pro Forma Consolidated Financial Information," we present two scenarios for how much capital may be raised in the PSUS IPO and the PSUS Private Placement. We do not expect to incur material incremental recurring general and administrative expense as a result of raising PSUS, although we will incur one-time transaction costs. We have agreed to increase our existing $15.9 million investment in PSUS to a $150 million investment in PSUS, which additional investment we intend to finance using a term loan facility, comprising (i) $100 million of common shares in the PSUS Private Placement and (ii) $50 million of preferred shares to be issued by PSUS in a private placement in connection with and upon completion of the PSUS IPO. See "Business—The Funds and HHH—Pershing Square USA, Ltd." for more information.

As investment manager, PSCM will provide management services to PSUS and earn a quarterly management fee equal to 0.5% (2.0% on an annual basis) of the NAV of PSUS, payable in advance at the beginning of each quarter. Upon completion of the PSUS IPO, a portion of these management fees from PSUS, or the "offsettable management fees," will reduce the performance fees we receive from PSH. We are not entitled to any type of performance fee or incentive allocation from PSUS.

We currently expect to deliver to each initial investor in the PSUS IPO, for no additional consideration, 20 shares of our common stock for every 100 PSUS Shares purchased in the PSUS IPO, including any PSUS Shares acquired by the underwriters in the PSUS IPO in connection with the exercise of their option to purchase additional PSUS Shares. Similarly, we will deliver to each private placement investor in the PSUS Private Placement, for no additional consideration, 30 shares of our common stock for every 100 PSUS Shares purchased in the PSUS Private Placement. See "Unaudited Pro Forma Consolidated Financial Information" for more information.

#### Holdco Reorganization
In connection with the Strategic Investment, effective as of May 31, 2024, PSCM completed an internal reorganization of its ownership structure (the "Holdco Reorganization") pursuant to which Pershing Square Holdco, L.P., a Delaware limited partnership formed for purposes of the Holdco Reorganization, became the indirect, sole owner of PSCM. As a result of the Holdco Reorganization and subsequent related transfers of interests, our owners who previously held interests directly in PSCM now hold their interests through Pershing Square Partner Group, LLC, a Delaware limited liability company ("PS Partner Group") and/or Pershing Square Holdco, L.P. Following the Holdco Reorganization and prior to the combined offering, PS Partner Group and our owners who previously held interests directly in PSCM own approximately 90% of the issued and outstanding limited partnership interests in Pershing Square Holdco, L.P. In addition, such owners also hold interests in PS CompCo, LLC, a Delaware limited liability company ("CompCo"), which entered into the Variable Compensation Agreement, dated as of May 31, 2024 (the "VCA"), with Pershing Square Holdco, L.P. and PSCM. For further discussion of the VCA and its contemplated termination and replacement in connection with the combined offering, see "Executive Compensation—Narrative Disclosure to Summary Compensation Table—Variable Compensation Agreement" and "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Variable Compensation Agreement and Subordinated Profits Interest."

#### Corporate Conversion
We have historically been treated as a partnership for U.S. tax purposes and have not been subject to U.S. federal income taxes, although PSCM is subject to certain state and local taxes as discussed in Note 2, "Significant Accounting Policies—Income Taxes" of the audited consolidated financial statements included elsewhere in this prospectus. Prior to the effectiveness of the registration statement of which this prospectus forms a part, Pershing Square Holdco, L.P. will convert into a Nevada corporation by means of a statutory conversion and change its name to Pershing Square Inc. We refer to this conversion throughout this prospectus as the "Corporate Conversion." See "Summary—Reorganization Transactions—Corporate Conversion" for more information on the Corporate Conversion. Accordingly, following the combined offering, we will be taxed as a corporation for U.S. federal and state income tax purposes and, as a result, we will be subject to U.S. federal income taxes, in addition to state and local taxes, with respect to our allocable share of any taxable income generated by us. For further discussion of the tax impact of the Corporate Conversion, see "Unaudited Pro Forma Consolidated Financial Information."

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#### **TABLE OF CONTENTS**

#### Basis of Accounting
Pershing Square Holdco, L.P. is considered our predecessor for accounting purposes for periods following the HoldCo Reorganization but prior to the Corporate Conversion. PSCM is considered Pershing Square Holdco, L.P.'s predecessor for accounting purposes for periods prior to the HoldCo Reorganization.

The HoldCo Reorganization was accounted for as a common control transaction. Pershing Square Holdco, L.P. was formed for the sole purpose of effectuating the HoldCo Reorganization and had no assets, liabilities or operating results prior to the HoldCo Reorganization, which did not result in any changes in the underlying business or operations of the Company. All balances and disclosures for periods prior to May 31, 2024, the date of the Holdco Reorganization, represent the historical activities of PSCM, the predecessor reporting entity to Pershing Square Holdco, L.P.

We have elected to account for the Howard Hughes Transaction using the fair value option, in accordance with ASC 825-10, *Financial Instruments*. As a part of the election, we will recognize any changes in the fair value of the transaction each reporting period.

#### Key Components of Our Results of Operations

#### Income
We generate substantially all of our revenue from management fees and performance fees under the terms of the investment management agreements with the funds we manage. We also earn revenue from management fees under the terms of the HHH Services Agreement.

The simplified diagram below depicts the management fees and performance fees we earn from HHH and our existing core funds. The diagram below is presented for illustrative purposes only to facilitate an understanding of our revenue streams.

![](ny20040230x14_diagram01x1.jpg)<br>

&nbsp;&nbsp;&nbsp;&nbsp;<br>

\*<br> Management fee presented on an annual basis.

*Management Fees* 

Management fees consist of fees earned by PSCM for providing management and administrative services to our funds and other investment vehicles. PSCM acts as an investment manager providing management and administrative services to PSH, our private funds and other investment vehicles and, following the combined offering, PSUS, in accordance with each of their investment management agreements. As compensation for services to PSH and our private funds, PSCM receives a quarterly management fee equal to 0.375% (1.5% on an annual basis) of the Net Asset Value, before any accrued performance fees or allocation, (i) with respect to PSH, of its fee-paying shares, (ii) with respect to PSLP, of the capital accounts relating to each of its fee-paying limited partners, and (iii) with respect to PSINTL, of each series of its fee-paying shares of PSINTL.

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#### **TABLE OF CONTENTS**
In connection with the Howard Hughes Transaction, we reduced the management fees paid to PSCM by each of the core funds by an amount equal to the HHH Fees multiplied by the percentage of HHH's shares outstanding held by each such fund attributable to its fee-paying capital. As compensation for services to PSVII prior to its liquidation on December 31, 2024, PSCM received a quarterly management fee equal to 0.0625% (0.25% on an annual basis) of the balance of each fee-paying capital account of PSVII. Following the combined offering, PSCM will also receive a quarterly management fee from PSUS equal to 0.5% (2.0% on an annual basis) of the Net Asset Value of PSUS. Management fees from our funds are recognized over the period during which the related services are performed. See "Business—Advisory Fees and Compensation."

Management fees earned from our funds are generally calculated and paid to us quarterly in advance, based on the amount of fee-paying assets at the beginning of the quarter. Management fees are prorated for capital contributions in our private funds received during the quarter. Accordingly, changes in our management fee revenue from quarter to quarter are driven by changes in the quarterly balances of fee-paying assets and the relative magnitude and timing of contributions and withdrawals in a given quarter.

*Management Fees – HHH Fees*

Management fees also consist of the quarterly HHH Fees earned by PSCM for providing investment advisory and other services to HHH pursuant to the terms of the HHH Services Agreement. Pursuant to the HHH Services Agreement, we will support HHH's new diversified holding company strategy by providing services to HHH, such as (i) investment advisory services, (ii) making recommendations with respect to hedging, balance sheet optimization and capital allocation, (iii) executing transactions, (iv) assisting HHH with business and corporate development functions, (v) making voting recommendations for HHH's investments, (vi) assisting with and advising on fundraising, (vii) monitoring operations of HHH and its investments, subject to the day-to-day authority and responsibility of HHH's management, (viii) providing recommendations for persons to serve as designees or deputies of HHH's Chief Investment Officer, (ix) engaging and supervising HHH's third-party service providers, (x) making dividend payment recommendations and (xi) providing other services as may be agreed upon.

As compensation for providing services to HHH, we will earn (i) a quarterly HHH Base Management Fee of $3,750,000 ($15,000,000 on an annual basis) and (ii) a quarterly HHH Variable Management Fee equal to 0.375% of the excess value of the quarter-end stock price of shares of HHH common stock over an initial reference share price of $66.1453, multiplied by a reference share count of 59,393,938 shares. The HHH Base Management Fee and reference share price are subject to annual adjustment for inflation, based on the Core PCE Price Index, and the reference share price and reference share count are subject to adjustment for stock splits, reclassifications or similar capital changes. See "Business—Advisory Fees and Compensation—HHH Fees" for more information.

The HHH Base Management Fee is calculated and paid to us quarterly in advance at the beginning of each quarter. The HHH Variable Management Fee is calculated and paid to us quarterly no later than fifteen days following the end of each quarter, based on the volume-weighted average trading price of shares of HHH common stock for the fifteen trading days ending on the last trading day of such quarter. Accordingly, changes in our revenue from the HHH Variable Management Fee will be driven by changes in the stock price of shares of HHH common stock from quarter to quarter. As of December 31, 2025, the reference share price was $66.1453 and the volume-weighted average trading price of shares of HHH common stock for the fifteen trading days ending on December 31, 2025 was $81.1647.

*Management Fees – Contra-Revenue* 

We recognized a $292.8 million deferred asset for the premium paid above HHH's publicly traded share price (the "HHH Premium"), which is deemed for accounting purposes to represent the amount paid to obtain the HHH Services Agreement, when we completed the Howard Hughes Transaction. The HHH Premium is amortized as contra-revenue in management fees on a straight-line basis over a period of 20 years beginning May 5, 2025.

*Performance Fees* 

Performance fees consist of fees and allocations earned by PSCM, as investment manager, from certain of our funds and other investment vehicles generally based on the NAV appreciation of such funds above a high-water mark. We recognize performance fees from PSH on a "net" basis giving effect to the fee offset arrangement as described below.

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Performance fees or allocation, if earned, are payable upon the occurrence of crystallization events, which include, but are not limited to, December 31 of each year, withdrawals from our private funds and PSH's payment of a dividend. Any crystallized or accrued performance fees for PSINTL and PSH earned during the year and outstanding at year-end are reported within performance fees receivable.

Pursuant to the investment management agreement between PSH and PSCM, the annual performance fee PSCM earns from PSH is offset by (i) 20% of any performance fees and allocation earned by us and our affiliates for the same period from certain non-PSH funds (currently including PSLP and PSINTL) managed by us or any of our affiliates and (ii) 20% of any management fees earned from certain non-PSH funds (currently none but following the PSUS IPO, PSUS) that do not have performance fees or allocations as part of their terms. We refer to this arrangement as the "fee offset arrangement." In the event the offsettable fees in respect of a previous calculation period were not fully utilized in reducing the PSH performance fee for that period, the amount not utilized is carried forward. See "Business—Advisory Fees and Compensation—PSH—Performance Fee" for more information.

We consolidate the results of Pershing Square GP, LLC ("PSGP"), which earns a performance allocation from PSLP, and PSVII GP, which earned a performance allocation from PSVII prior to its liquidation on December 31, 2024. However, because we do not have any direct equity interests in PSGP or PSVII GP, 100% of these performance allocations are reflected in non-controlling interest on our consolidated statements of operations. See "—Net (Income) Loss Attributable to Non-Controlling Interest" for more information. A portion of the performance allocation PSGP receives from PSLP is available to offset the performance fee payable by PSH pursuant to the fee offset arrangement described above.

*Allocation of Performance Fee Revenue* 

In periods following the Holdco Reorganization, our consolidated statements of operations data reflect an arrangement for the allocation of performance fee revenue from our funds and other investment vehicles pursuant to the Variable Compensation Agreement (the "VCA") that we entered into in connection with the Strategic Investment.

The VCA has two primary purposes: (1) to provide the company with a preferred return-like entitlement of performance fees received by our principal operating subsidiary, PSCM and (2) to provide an important source of compensation for certain of our personnel, including our investment professionals, consistent with our historical practice of tying a significant portion of the compensation earned by such personnel, including our named executive officers, directly to the performance of the funds we manage. For additional information about the terms of the VCA, see "Executive Compensation—Narrative Disclosure to Summary Compensation Table—Variable Compensation Agreement."

The table below presents the allocation of realized performance fees, as adjusted for offsettable fees pursuant to the fee offset arrangement and VCA, as between us and CompCo that would have been required by the VCA and the successor arrangement to be implemented in connection with the combined offering using our actual results for the periods presented. As illustrated below, the Preferred Performance Fee that we are entitled to receive for a given period is a function of the applicable high-water mark of the fee-paying investors in the fund, as calculated as of January 1 for such period, as adjusted for capital activity and share buybacks. The amount of the Preferred Performance Fees that is paid in any period depends on our realized performance fees. As a result, variability in our fund performance, which impacts both the high-water mark for a period (and accordingly the corresponding Preferred Performance Fee) and our realized performance fees, can result in variability in the amounts paid to us in any period in respect of the accrued Preferred Performance Fees. Any portion of the Preferred Performance Fee that we are entitled to receive from a fund that is not paid in a given period will accrue to the next period's Preferred Performance Fee for such fund until paid by such fund.

While our Preferred Performance Fee arrangement for the allocation of performance fee revenue may result in variability in the amounts paid to us and CompCo from year to year, particularly if realized performance fees are not sufficient to satisfy the accrued Preferred Performance Fees, we believe it creates a more stable stream of recurring fee-related earnings over the long-term because of the consistency in the calculation of the Preferred Performance Fee that we are entitled to receive.

The table below has not been prepared in accordance with Article 11 of Regulation S-X and is presented for illustrative purposes only to facilitate an understanding of how the VCA and the successor arrangement to be implemented in connection with the combined offering operate. For further discussion of the VCA and its contemplated termination and replacement in connection with the combined offering, see "Executive

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Compensation—Narrative Disclosure to Summary Compensation Table—Variable Compensation Agreement" and "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Variable Compensation Agreement and Subordinated Profits Interest."

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Pershing Square Holdings, Ltd.**  | **Pershing Square Holdings, Ltd.**  | **Pershing Square Holdings, Ltd.**  | **Pershing Square Holdings, Ltd.**  | **Pershing Square Holdings, Ltd.**  | **Pershing Square Holdings, Ltd.**  | **Pershing Square Holdings, Ltd.**  | **Pershing Square Holdings, Ltd.**  |
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |  |
| **(in millions)** | **2020** | **2021** | **2022** | **2023** | **2024** | **2025** |  |
| High water mark of performance fee-paying investors<sup>(1)</sup> | $5198.3 | $9052.5 | $10935.8 | $10524.0 | $11899.7 | $12543.8 | [A]  |
| Current year's Preferred Performance Fee<sup>(2)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;$41.6 | &nbsp;&nbsp;&nbsp;&nbsp;$72.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$87.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$84.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$95.2 | &nbsp;&nbsp;&nbsp;&nbsp;$100.4 | [B] = [A] \* 16% \* 5%  |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Offsettable Management Fees<sup>(3)</sup> | $— | $— | $— | $— | $— | $— | [C]  |
| **Current year's Preferred Performance Fee owed to the Company<sup>(4)</sup>** | **$41.6** | **$72.4** | **$87.5** | **$84.2** | **$95.2** | **$100.4** | **[D] = [B] + [C]**  |
| Realized PSH Performance Fees<sup>(5)</sup> | &nbsp;&nbsp;&nbsp;$665.6 | &nbsp;&nbsp;&nbsp;$453.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | &nbsp;&nbsp;&nbsp;&nbsp;$306.2 | &nbsp;&nbsp;&nbsp;&nbsp;$226.6 | &nbsp;&nbsp;&nbsp;&nbsp;$489.2 | [E]  |
| &nbsp;&nbsp;&nbsp;&nbsp;Plus: Offsettable Performance Fees<sup>(6)</sup> | $16.0 | $3.6 | $— | $2.1 | $1.7 | $2.6 | [F]  |
| &nbsp;&nbsp;**PSH Performance Fees available for allocation<sup>(7)</sup>** | &nbsp;&nbsp;&nbsp;**$681.6** | &nbsp;&nbsp;&nbsp;**$456.9** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$—** | &nbsp;&nbsp;&nbsp;&nbsp;**$308.2** | &nbsp;&nbsp;&nbsp;&nbsp;**$228.2** | &nbsp;&nbsp;&nbsp;&nbsp;**$491.8** | **[G] = [E] + [F]**  |
| &nbsp;&nbsp;Current year's Preferred Performance Fee paid to the Company<sup>(8)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;$41.6 | &nbsp;&nbsp;&nbsp;&nbsp;$72.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$84.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$95.2 | &nbsp;&nbsp;&nbsp;&nbsp;$100.4 | [H] = MIN ([D], [G])  |
| Preferred Performance Fee Carryforward<sup>(9)</sup> from prior year(s) paid to the Company<sup>(10)</sup> | $— | $— | $— | $87.5 | $— | $— | [I] = MIN (([G] - [H]), Prior Year [K])  |
| **Total Preferred Performance Fees paid to the Company<sup>(11)</sup>** | **$41.6** | **$72.4** | **$—** | **$171.7** | **$95.2** | **$100.4** | **[J] = [H] + [I]**  |
| &nbsp;&nbsp;&nbsp;&nbsp;*Preferred Performance Fee Carryforward<sup>(9)</sup>* | &nbsp;&nbsp;&nbsp;&nbsp;*$—* | &nbsp;&nbsp;&nbsp;&nbsp;*$—* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*$87.5* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*$—* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*$—* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*$—* | [K] = MAX (([D] + Prior Year [K] - [J]), 0)  |
| Subordinated Performance Fees paid to CompCo<sup>(12)</sup> | $640.0 | $384.5 | $— | $136.5 | $133.1 | $391.5 | [L] = [G] - [J] |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Pershing Square International, Ltd.**  | **Pershing Square International, Ltd.**  | **Pershing Square International, Ltd.**  | **Pershing Square International, Ltd.**  | **Pershing Square International, Ltd.**  | **Pershing Square International, Ltd.**  | **Pershing Square International, Ltd.**  | **Pershing Square International, Ltd.**  |
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |  |
| **(in millions)** | **2020** | **2021** | **2022** | **2023** | **2024** | **2025** |  |
| High water mark of performance fee paying investors<sup>(1)</sup> | &nbsp;&nbsp;$593.2 | &nbsp;&nbsp;$391.8 | &nbsp;&nbsp;$389.9 | &nbsp;&nbsp;$361.9 | &nbsp;&nbsp;$384.0 | &nbsp;&nbsp;$281.8 | [A]  |
| **Current year's Preferred Performance Fee owed to the Company<sup>(2)</sup>** | &nbsp;&nbsp;&nbsp;&nbsp;**$4.7** | &nbsp;&nbsp;&nbsp;&nbsp;**$3.1** | &nbsp;&nbsp;&nbsp;&nbsp;**$3.1** | &nbsp;&nbsp;&nbsp;&nbsp;**$2.9** | &nbsp;&nbsp;&nbsp;&nbsp;**$3.1** | &nbsp;&nbsp;&nbsp;&nbsp;**$2.3** | **[B] = [A] \* 20% \* 80% \* 5%**  |
| Realized PSINTL Performance Fees<sup>(5)</sup> | &nbsp;&nbsp;$79.9 | &nbsp;&nbsp;$18.2 | &nbsp;&nbsp;&nbsp;&nbsp;$— | &nbsp;&nbsp;$10.3 | &nbsp;&nbsp;&nbsp;&nbsp;$8.3 | &nbsp;&nbsp;$13.1 | [C]  |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Offsettable Performance Fees<sup>(6)</sup> | &nbsp;&nbsp;$(16.0) | &nbsp;&nbsp;$(3.6) | &nbsp;&nbsp;$— | &nbsp;&nbsp;$(2.1) | &nbsp;&nbsp;$(1.7) | &nbsp;&nbsp;$(2.6) | [D]  |
| &nbsp;&nbsp;**PSINTL Performance Fees available for allocation<sup>(7)</sup>** | &nbsp;&nbsp;**$63.9** | &nbsp;&nbsp;**$14.5** | &nbsp;&nbsp;&nbsp;&nbsp;**$—** | &nbsp;&nbsp;&nbsp;&nbsp;**$8.3** | &nbsp;&nbsp;&nbsp;&nbsp;**$6.6** | &nbsp;&nbsp;**$10.5** | **[E] = [C] + [D]**  |
| &nbsp;&nbsp;Current year's Preferred Performance Fee paid to the Company<sup>(8)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;$4.7 | &nbsp;&nbsp;&nbsp;&nbsp;$3.1 | &nbsp;&nbsp;&nbsp;&nbsp;$— | &nbsp;&nbsp;&nbsp;&nbsp;$2.9 | &nbsp;&nbsp;&nbsp;&nbsp;$3.1 | &nbsp;&nbsp;&nbsp;&nbsp;$2.3 | [F] = MIN ([B], [E])  |
| Preferred Performance Fee Carryforward<sup>(9)</sup> from prior year paid to the Company<sup>(10)</sup> | &nbsp;&nbsp;$— | &nbsp;&nbsp;$— | &nbsp;&nbsp;$— | &nbsp;&nbsp;$3.1 | &nbsp;&nbsp;$— | &nbsp;&nbsp;$— | [G] = MIN (([E] - [F]), Prior Year [I])  |
| **Total Preferred Performance Fees paid to the Company<sup>(11)</sup>** | &nbsp;&nbsp;**$4.7** | &nbsp;&nbsp;**$3.1** | &nbsp;&nbsp;**$—** | &nbsp;&nbsp;**$6.0** | &nbsp;&nbsp;**$3.1** | &nbsp;&nbsp;**$2.3** | **[H] = [F] + [G]**  |
| &nbsp;&nbsp;&nbsp;&nbsp;*Preferred Performance Fee Carryforward<sup>(9)</sup>* | &nbsp;&nbsp;&nbsp;&nbsp;*$—* | &nbsp;&nbsp;&nbsp;&nbsp;*$—* | &nbsp;&nbsp;&nbsp;&nbsp;*$3.1* | &nbsp;&nbsp;&nbsp;&nbsp;*$—* | &nbsp;&nbsp;&nbsp;&nbsp;*$—* | &nbsp;&nbsp;&nbsp;&nbsp;*$—* | [I] = MAX (([B] + Prior Year [I] - [H]), 0)  |
| Subordinated Performance Fees paid to CompCo<sup>(12)</sup> | &nbsp;&nbsp;$59.2 | &nbsp;&nbsp;$11.4 | &nbsp;&nbsp;$— | &nbsp;&nbsp;$2.3 | &nbsp;&nbsp;$3.6 | &nbsp;&nbsp;$8.3 | [J] = [E] - [H] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(1) The high-water mark can vary from year to year depending on changes in the Net Asset Value and amount of fee-paying assets in a fund. 

(2) Represents an amount equal to the performance fees PSCM would have earned from the fund, as described under "Business—Advisory Fees and Compensation," if such fund had experienced a return, net of management fees, of 5% per annum above its high-water mark, subject to certain adjustments for non-PSH funds which reflect the fee offset arrangement described above and under "Business—Advisory Fees and Compensation—PSH—Performance Fees." For non-PSH funds subject to the VCA (currently only PSINTL), the performance fees that would have been earned if such fund had experienced a net of management fees return of 5% per annum above its high-water mark are reduced by the offsettable performance fees for such fund. As an example, for PSINTL, which pays PSCM a 20% performance fee, of which 20% is an 

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offsettable performance fee pursuant to the fee offset arrangement, the current year's Preferred Performance Fee owed to the Company would represent 0.8% of PSINTL's high-water mark (the product of 80% \* 20% \* 5%). For clarity, the current year's Preferred Performance Fee initially calculated for PSH, which pays PSCM a 16% performance fee, is not similarly reduced by the fee offset arrangement and represents 0.8% of PSH's high-water mark (the product of 16% \* 5%).

(3) Includes the gross amount of management fees available from certain non-PSH funds pursuant to the investment management agreement between PSH and PSCM to reduce the Preferred Performance Fee calculated for PSH. As of the date hereof, no fund generates such offsettable management fees. Following the completion of the PSUS IPO, the gross amount of such offsettable management fees will consist of 20% of PSUS's management fees.

(4) Represents an amount equal to the performance fees PSCM would have earned from PSH, as described under "Business—Advisory Fees and Compensation," if PSH had experienced a return, net of management fees, of 5% per annum above its high-water mark, subject to certain adjustments for the offsettable management fees. As of the date hereof, no fund generates offsettable management fees. Following the completion of the PSUS IPO, the gross amount of such offsettable management fees will consist of 20% of PSUS's management fees. 

(5) Refers to the performance fees PSCM earned from the fund, after giving effect to the fee offset arrangement. Pursuant to the investment management agreement between PSH and PSCM, a portion of the performance fees available from certain non-PSH funds reduce the performance fee paid by PSH to PSCM. As of the date hereof, the gross amount of such offsettable performance fees consists of (i) 20% of PSLP's performance allocations and (ii) 20% of PSINTL's performance fees. 

(6) In the case of PSH, the offsettable performance fees of PSINTL (i.e., 20% of the realized performance fees of PSINTL) are added back to the realized PSH performance fees for purposes of determining the PSH performance fees available for allocation. To avoid double counting, these offsettable performance fees of PSINTL are excluded from the calculation of the PSINTL performance fees available for allocation. 

(7) Refers to the amount available in a given year, if any, to satisfy payment of the Preferred Performance Fee and any Preferred Performance Fee Carryforward, as described in note (9), then owed to the Company. 

(8) Refers to the amount distributed to us from PSCM with respect to the current year's Preferred Performance Fee, had this arrangement been in effect for the period presented, in an amount equal to the lesser of (i) the current year's Preferred Performance Fee then owed to the Company and (ii) the performance fees available for allocation to the Company and CompCo. For example, had this arrangement been in effect, we would not have received any distribution from PSCM in respect of the Preferred Performance Fee for 2022 because no performance fees were generated that year due to the funds' failure to achieve NAV appreciation above their respective high-water marks, resulting in no performance fees available for allocation to the Company and CompCo. As a result, the Preferred Performance Fee owed to the Company for 2022 was carried forward to 2023, a year in which the funds generated sufficient performance fees to pay the Preferred Performance Fee owed to the Company for 2023 and the Preferred Performance Fee Carryforward from 2022. Had the performance fees earned by the funds in 2023 not been sufficient to satisfy the Preferred Performance Fee owed to the Company for 2023 and/or the Preferred Performance Fee Carryforward from 2022, the unpaid portion would have continued to be carried forward to subsequent years until it was paid in full.

(9) Refers to the unpaid portion, if any, of the current year's Preferred Performance Fee owed to the Company had this arrangement been in effect for the period presented. The Preferred Performance Fee Carryforward, if any, shall accrue to subsequent periods until satisfied in full. For example, had this arrangement been in effect, a Preferred Performance Fee Carryforward would have been generated in 2022 for the reasons described above in note (8).

(10) Refers to the amount distributed to us from PSCM with respect to the Preferred Performance Fee Carryforward from prior years, had this arrangement been in effect for the period presented, in an amount equal to the lesser of (i) the accrued Preferred Performance Fee Carryforward and (ii) the performance fees available for allocation to the Company and CompCo, less the amounts distributed to us from PSCM with respect to the current year's Preferred Performance Fee.

(11) Refers to the total amount distributed to us from PSCM with respect to the current year's Preferred Performance Fee owed to the Company and any Preferred Performance Fee Carryforward from prior years had this arrangement been in effect for the period presented. 

(12) Refers to the amount distributed to CompCo from PSCM, had this arrangement been in effect for the period presented, in an amount equal to the difference, if any, between the performance fees available for allocation to the Company and CompCo and the Total Preferred Performance Fees paid to the Company. 

#### Expenses
*Profit-Sharing Partner Compensation* 

Profit-sharing partner compensation consists of expense related to our cash-based profits interests awards as well as a portion of our Long-Term Incentive Plan.

Prior to the Holdco Reorganization, we had profit-sharing arrangements whereby certain personnel and former members of our advisory board, which was dissolved on April 1, 2023, were granted profits participation interests ("Profits Interest Awards") in Pershing Square, PSGP and PSVII GP. Profits Interest Awards entitled the profit-sharing partners to a portion of the net profits earned by Pershing Square, PSGP, PSVII GP and any future Pershing Square entity from performance fees or allocations and management fees, as applicable. Profits Interest Awards do not represent a substantive class of equity under ASC 718, *Compensation* and are accounted for as cash-based profit-sharing arrangements. As such, amounts distributed or allocated to profit-sharing partners are included in profit-sharing partner compensation in the consolidated statements of operations.

The Company also established a Long-Term Incentive Plan ("LTIP") in January 2017 for the benefit of certain profit-sharing partners (the "LTIP Partners"). Similar to the Profits Interest Awards, awards under the

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LTIP (the "LTIP Awards") entitle the LTIP Partners to cash distributions pursuant to the terms of their respective agreements and grant them a reduced percentage of their Profits Interest Awards upon retirement under certain circumstances as described in the LTIP. Certain LTIP Partners' LTIP Awards vest after 10 years of tenure as a profit-sharing partner. The LTIP Awards are treated as a separate class of profits interests from the Profits Interest Awards. The LTIP Awards have been accounted for based on their substance. Portions of the LTIP Awards in which rights to distributions of profits are based fully on the discretion of the managing member of PSCM are in substance a profit-sharing arrangement and are therefore recorded within profit-sharing partner compensation. Other portions of the LTIP Awards, when fully vested, entitle LTIP Partners upon retirement to a distribution equal to the percentage outlined in each of their agreements in perpetuity and represent a substantive class of equity. In connection with the combined offering, the LTIP will be replaced in part by certain interests of PS Partner Group that may become redeemable, subject to certain conditions, for shares of our common stock held by PS Partner Group, in order to continue to align certain of our senior professionals with our long-term investment horizon.

In conjunction with the Holdco Reorganization and as discussed above, we implemented an arrangement for the allocation of performance fee revenue between us and our senior professionals. In addition, in connection with the Holdco Reorganization, former holders of LTIP Awards in PSCM received interests in PS Partner Group which were treated to the same extent as LTIP Awards. The unvested portion of interests in PS Partner Group will be amortized over a 10-year period on a straight-line basis.

Following the combined offering, the profit-sharing arrangement and LTIP related to interests in PS Partner Group and Pershing Square and its consolidated subsidiaries (including PSCM) will cease. Amounts historically allocated to profit-sharing partners and LTIP participants will instead be distributed in the form of dividends to all holders of our common stock, including former profit-sharing partners and LTIP participants, in their capacity as equity holders and therefore, amounts distributed to former profit-sharing partners and LTIP participants will no longer be accounted for as compensation expense in accordance with ASC 710.

We may also grant awards under our Equity Incentive Plan to employees, directors, consultants and advisors subsequent to the combined offering. These equity awards will be recorded as an expense in our consolidated statements of operations. See "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Equity Incentive Plan" for a discussion of the plan. We do not currently plan to grant awards under the Equity Incentive Plan to our executive officers.

*Affiliates Fee Rebate* 

Affiliates fee rebate consists of expense related to the fee rebates provided to employees and their affiliates who own PSH shares. We historically rebated management and performance fees attributable to shares of PSH held by our employees and their affiliates. Following the Holdco Reorganization, we ceased to provide these rebates, which were continued instead by PS Partner Group and CompCo. The affiliate fee rebate paid by PS Partner Group following the Holdco Reorganization is recognized as an expense. Following the combined offering, PS Partner Group and CompCo will no longer rebate the fees of employees invested in PSH.

*General and Administrative Expense* 

General and administrative expense includes occupancy expenses, aircraft expenses, professional fees, IT related expenses, café expenses, charitable donations, travel and entertainment expenses, insurance expenses, office expenses and other expenses. We expect to incur additional general and administrative expense as a result of operating as a public company, including expenses to comply with the rules and regulations of the SEC and NYSE, as well as higher expenses for directors and officers insurance, investor relations and professional services.

While we have historically incurred expenses related to charitable donations, we do not intend to incur any future expenses related to charitable donations as a public company.

On December 20, 2024, we distributed both the corporate aircraft and the aircraft note (as described in Note 6 to the audited consolidated financial statements included elsewhere in this prospectus) to PS Partner Group and ultimately to Mr. Ackman via a non-pro rata distribution. Accordingly, for periods following December 20, 2024, we no longer incur aircraft operating expenses arising from Mr. Ackman's personal use of the aircraft, although we expect to incur fees related to air travel when we charter this or other aircraft for certain flights taken in furtherance of firm business.

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*Employee Compensation and Benefits* 

Employee compensation and benefits reflects all compensation-related items not directly related to partners who participate in the profit-sharing arrangements and the LTIP, and includes salaries, benefits, payroll taxes and discretionary cash bonuses. Employee compensation and benefits also includes the cost of benefits paid to partners who participate in the profit-sharing arrangements and the LTIP. We generally recognize employee compensation and benefit expenses over the related service period. On an annual basis, discretionary cash bonuses generally comprise a significant portion of total employee compensation and benefits for employees who do not hold profit interests. Discretionary cash bonuses are dependent upon a variety of factors, including the performance of PSH, PSUS (following the completion of the PSUS IPO), our private funds and other investment vehicles for the year. For further discussion of the impact on employee compensation and benefits from subsequent changes to compensation arrangements, see "Unaudited Pro Forma Consolidated Financial Information."

*Depreciation and Amortization* 

Depreciation and amortization expense primarily consists of depreciation and amortization expenses associated with our fixed assets. Depreciation includes expenses associated with the corporate aircraft, office furniture and fixtures, office computers, equipment and software. Amortization includes expenses associated with our leasehold improvements. Depreciation of fixed assets is calculated using the straight-line method over a period of three to seven years. Leasehold improvements are amortized over the shorter of the expected useful life or the remaining term of the related lease agreement. Fixed assets and leasehold improvements are recorded at cost less accumulated depreciation and amortization.

On December 20, 2024, we transferred the corporate aircraft and therefore, for periods following such date, we no longer incur depreciation expense related to the corporate aircraft.

#### Other Income (Expenses)
*Unrealized Gain (Loss) on HHH Shares Held at Fair Value* 

We account for our investment in HHH using the fair value option, in accordance with ASC 825-10 Financial Instruments. As a part of the election, we recognize any changes in the fair value of the investment in HHH as non-operating income or loss, commensurate with appreciation or depreciation in the value of HHH's publicly traded share price as of the end of the reporting period.

*Interest Income* 

Interest income consists of interest earned from our cash on hand.

*Unrealized Gain (Loss) on Investment in Pershing Square, L.P. Held at Fair Value* 

Unrealized gain (loss) on investment in Pershing Square, L.P. held at fair value consists of the gain or loss related to PSGP's investment in PSLP. PSGP's investment in PSLP is held at fair value, which is determined using the Net Asset Value of PSLP in accordance with the Accounting Standards Codification ("ASC") 820, *Fair Value Measurement,* "practical expedient," as defined by GAAP.

*Other Income (Expense)* 

Other income (expense) primarily consists of our office space sublease and license, reimbursement of aircraft expense and reimbursement of office services.

Mr. Ackman's family office, TABLE Management, L.P. ("TABLE"), licenses a portion of our office space under a license agreement which also grants TABLE the use of certain office-related services. In addition, we sublease a portion of Pershing Square's office space to NEOX Public Benefit LLC ("Subtenant"), an entity partially owned by Mr. Ackman. The sublease commenced on December 5, 2022, with rent payments commencing on May 1, 2023 following five months of rent abatement, and expires on December 31, 2033. Prior to the combined offering, we intend to terminate our sublease arrangement with Subtenant who will enter into a direct relationship with the landlord, and we will no longer receive the related income or bear the associated lease expense, although Subtenant may continue the use of certain office-related services for which we will continue to receive certain related income.

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Historically from time to time, Mr. Ackman made personal use of PSCM's corporate aircraft and, in such cases, PSCM was reimbursed for that portion of the aircraft's operating expense. On December 20, 2024, we distributed both the corporate aircraft and the aircraft note to PS Partner Group and ultimately to Mr. Ackman via a non-pro rata distribution. As a result, following such date, we no longer receive reimbursements related to aircraft expenses.

*Interest Expense* 

Interest expense primarily consists of interest incurred on borrowings and debt issuance costs that are amortized using the effective interest method, over the term of the debt.

On December 20, 2024, we distributed both the corporate aircraft and the aircraft note to PS Partner Group and ultimately to Mr. Ackman via a non-pro rata distribution. As a result, following such date, we no longer receive reimbursements related to aircraft expenses and we no longer incur interest expense related to the aircraft note.

#### Income Tax
Income tax expense consists of taxes paid or payable by our operating subsidiaries. We are subject to the provisions of ASC 740, *Income Taxes*. This standard requires the evaluation of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether it is "more-likely-than-not" to be sustained by the applicable tax authority. Uncertain tax positions in which the benefit to be realized does not meet the "more-likely-than-not" threshold would be recorded as a tax expense in the current year.

We have been and, prior to the Corporate Conversion, will continue to be a partnership for U.S. tax purposes and not subject to U.S. federal income taxes. Accordingly, no provision has been made for federal income taxes of us since the partners are individually liable for the taxes on their share of our taxable income or loss prior to this date.

We are subject to certain state and local taxes. UBT is recorded on a quarterly basis at the rate of 4% based on the net taxable income apportioned to New York City. Commercial Rent Tax is recorded on a quarterly basis at the rate of 6% based on the amount of commercial rent subject to tax. We record interest and penalties related to income taxes, if any, within income tax expense.

PS Holdco and PS Partner Group elected to be subject to both the New York State and New York City Pass-Through Entity Tax (together, "PTET") for the year ended December 31, 2025, and PSCM made the same elections for the year ended December 31, 2024. PTET grants eligible partners a tax credit on their individual New York State and New York City income tax returns, and any PTET owed is a joint liability of (i) PS Holdco or PS Partner Group and (ii) each partner.

Upon completion of the Corporate Conversion in connection with the combined offering, we will become a corporation for U.S. federal and state income tax purposes and will be subject to U.S. federal income taxes, in addition to state and local taxes.

#### Net (Income) Loss Attributable to Non-Controlling Interest
A portion of the equity and income or loss from entities that are consolidated but not wholly owned by us is allocated to other owners. The aggregate of the income or loss and corresponding equity that is not owned by us is included within non-controlling interest in the consolidated financial statements. We do not hold any direct equity interests in PSGP, the general partner for PSLP, or PSVII GP, the general partner for PSVII. As a result, all income or loss related to both entities is allocated to non-controlling interest, and their capital balances represent the economic interests of other owners in PSGP and PSVII GP, as applicable.

#### Key Operating Metrics
We have developed and use various key operating metrics to assess and monitor the operating performance of our business. We believe that these metrics provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management team.

Our calculations of total assets under management, fee-paying assets under management and permanent capital AUM may differ from the calculations of other investment managers. As a result, these measures may not be comparable to similar measures presented by other investment managers. In addition, our calculation of total

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assets under management includes the fair value of invested capital in our funds from our personnel regardless of whether such invested capital is subject to fees. Our definitions of total assets under management and fee-paying assets under management are not based on any definition of total assets under management and fee-paying assets under management that is set forth in the agreements governing the investment funds we manage.

#### Total Assets Under Management
Total assets under management reflects (i) with respect to our core funds and PSVII, the net assets of our core funds and PSVII as calculated in accordance with GAAP or IFRS, as applicable, while adding back accrued performance fees and the principal value of PSH's outstanding bonds (approximately $2.3 billion and $3.7 billion as of December 31, 2024 and December 31, 2025, respectively) without double counting the investment made by any of our funds in PSVII and (ii) with respect to HHH, the market capitalization of HHH plus its net mortgages, notes, and loans payable as disclosed in its most recent publicly available filing.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Assets Under Management**  | **Assets Under Management**  | **Assets Under Management**  | **Assets Under Management**  | **Assets Under Management**  | **Assets Under Management**  |
| **(in millions)** | **PSH<sup>(1)</sup>** | **PSLP** | **PSINTL** | **PSVII<sup>(2)</sup>** | **Total** <br>**Funds**  |
| **Balance at December 31, 2023** | $14414.6 | $1384.3 | $591.7 | $1519.5 | $17910.1  |
| &nbsp;&nbsp;Private Funds Subscriptions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40.8 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40.8  |
| Private Funds Redemptions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;(246.0) | &nbsp;&nbsp;(209.2) | &nbsp;&nbsp;(1422.4) | &nbsp;&nbsp;(1877.6)  |
| PSH Dividends | &nbsp;&nbsp;&nbsp;&nbsp;(107.2) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(107.2)  |
| PSH Buybacks | &nbsp;&nbsp;&nbsp;&nbsp;(117.9) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(117.9)  |
| Management Fees  | &nbsp;&nbsp;&nbsp;&nbsp;(188.8)  | &nbsp;&nbsp;&nbsp;&nbsp;(11.1)  | &nbsp;&nbsp;&nbsp;&nbsp;(6.0)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.2)  | &nbsp;&nbsp;&nbsp;&nbsp;(206.1) |
| Performance Fees | &nbsp;&nbsp;&nbsp;&nbsp;(226.6) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(8.3) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(234.9)  |
| Appreciation (Depreciation) in Market Value | &nbsp;&nbsp;&nbsp;1589.1 | &nbsp;&nbsp;&nbsp;&nbsp;159.9 | &nbsp;&nbsp;&nbsp;&nbsp;65.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(96.9) | &nbsp;&nbsp;&nbsp;1717.5  |
| Increase (Decrease) in EUR FX Translation of PSH Bond Proceeds | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34.1) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34.1)  |
| **Balance at December 31, 2024** | **$15329.2** | **$1328.0** | **$433.6** | **$—** | **$17090.7** |

---

(1) As of December 31, 2024 and 2023, PSH's AUM includes bond proceeds of $1.8 billion and €500 million (translated into USD at the prevailing exchange rate at the reporting date). 

(2)<br> PSVII was liquidated as of December 31, 2024 and had no assets under management as of December 31, 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Assets Under Management** | **Assets Under Management** | **Assets Under Management** | **Assets Under Management** | **Assets Under Management** | **Assets Under Management** |
| **(in millions)** | **PSH<sup>(1)</sup>** | **PSLP** | **PSINTL** | **HHH** | **Total**<br>**Funds & HHH**  |
| **Balance at December 31, 2024** | $15329.2 | $1328.0 | $433.6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | &nbsp;&nbsp;$17090.7  |
| Private Funds Subscriptions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;104.3 | &nbsp;&nbsp;&nbsp;&nbsp;80.0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;184.3  |
| Private Funds Redemptions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;(232.2) | &nbsp;&nbsp;(199.6) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(431.8)  |
| Initiation of HHH Services Agreement<sup>(2)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;9256.4 | &nbsp;&nbsp;&nbsp;9256.4  |
| PSH Dividends | &nbsp;&nbsp;&nbsp;&nbsp;(118.1) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(118.1)  |
| PSH Buybacks | &nbsp;&nbsp;&nbsp;&nbsp;(369.1) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(369.1)  |
| Management Fees | &nbsp;&nbsp;&nbsp;&nbsp;(208.0) | &nbsp;&nbsp;&nbsp;&nbsp;(10.4) | &nbsp;&nbsp;&nbsp;&nbsp;(4.5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(222.9)  |
| Performance Fees | &nbsp;&nbsp;&nbsp;&nbsp;(489.2) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;(13.1) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(502.3) |
| Appreciation (Depreciation) in Market Value / Market Capitalization<sup>(3)</sup> | &nbsp;&nbsp;&nbsp;3222.6 | &nbsp;&nbsp;&nbsp;&nbsp;340.9 | &nbsp;&nbsp;&nbsp;112.7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;768.6 | &nbsp;&nbsp;&nbsp;4444.8  |
| PSH Bond Issuance | &nbsp;&nbsp;&nbsp;1235.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;1235.5  |
| Increase (Decrease) in EUR FX Translation of PSH Bond Proceeds | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;98.0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;98.0  |
| **Balance at December 31, 2025** | **$18700.9** | **$1530.6** | **$409.0** | **$10025.0** | &nbsp;&nbsp;**$30665.6** |

---

(1) As of December 31, 2025, PSH's AUM includes bond proceeds of $2.3 billion and €1.15 billion (translated into USD at the prevailing exchange rate at the reporting date).

(2)<br> Reflects HHH's market capitalization at market open on May 5, 2025 plus its net mortgages, notes, and loans payable as reported in its Quarterly Report on Form 10-Q for the quarter ending March 31, 2025.

(3)<br> Appreciation (depreciation) in market capitalization is only applicable to HHH.

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The table below presents the AUM of our core funds and HHH as of January 1, 2020 and as of December 31 for each of the last six years.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Assets Under Management ($ in millions)** | **Assets Under Management ($ in millions)** | **Assets Under Management ($ in millions)** | **Assets Under Management ($ in millions)** | **Assets Under Management ($ in millions)** | **Assets Under Management ($ in millions)** | **Assets Under Management ($ in millions)** | **CAGR**  |
| **Fund** | **January 1,** <br>**2020** | **December 31,** <br>**2020** | **December 31,** <br>**2021** | **December 31,** <br>**2022<sup>(3)</sup>** | **December 31,** <br>**2023** | **December 31,** <br>**2024** | **December 31,** <br>**2025** | **(2020-2025)<sup>(4)</sup>**  |
| &nbsp;&nbsp;&nbsp;&nbsp;PSH<sup>(1)</sup> | $7121 | $11153 | $14409 | $12215 | $14415 | $15329 | $18701 | 17%  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*% Growth*<br>|  | *57%* | *29%* | *(15%)* | *18%* | *6%* | *22%* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;PSLP | 727 | 903 | 1472 | 1217 | 1384 | 1328 | 1531 | 13%  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*% Growth* |  | *24%* | *63%* | *(17%)* | *14%* | *(4%)* | *15%* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;PSINTL  | 726 | 510 | 629 | 520 | 592 | 434 | 409 | (9%)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*% Growth* |  | *(30%)* | *23%* | *(17%)* | *14%* | *(27%)* | *(6%)* |  |
| **Total Core Funds** | **$8573** | **$12566** | **$16510** | **$13951** | **$16391** | **$17091** | **$20641** | **16%**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*% Growth* |  | *47%* | *31%* | *(15%)* | *17%* | *4%* | *21%* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;HHH<sup>(2)</sup> |  |  |  |  |  |  | 10025 |  |
| **Total Core Funds & HHH** | **$8573** | **$12566** | **$16510** | **$13951** | **$16391** | **$17091** | **$30666** | **24%**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*% Growth* |  | *47%* | *31%* | *(15%)* | *17%* | *4%* | *79%* |  |

---

(1) As of December 31, 2025, PSH's AUM includes bond proceeds of $2.3 billion and €1.15 billion (translated into USD at the prevailing exchange rate at the reporting date). As of December 31, 2024, 2023 and 2022, PSH's AUM includes bond proceeds of $1.8 billion and €500 million (translated into USD at the prevailing exchange rate at the reporting date). As of December 31, 2021, PSH's AUM includes bond proceeds of $2.43 billion and €500 million (translated into USD at the prevailing exchange rate at the reporting date). As of December 31, 2020, PSH's AUM includes bond proceeds of $2.1 billion. As of January 1, 2020, PSH's AUM includes bond proceeds of $1.4 billion.

(2)<br> As of December 31, 2025, HHH's AUM reflects its market capitalization as of such date plus its net mortgages, notes, and loans payable as reported in its Quarterly Report on Form 10-Q for the quarter ending September 30, 2025.

(3) AUM decreased from 2021 to 2022 as a result of (a) certain investor redemptions from our private funds and a share repurchase program with respect to PSH, (b) a debt redemption as one of PSH's outstanding bonds reached maturity, (c) a quarterly dividend payment to the PSH shareholders, (d) negative performance in our underlying portfolio related to decreases in the stock prices of some of our portfolio companies, (e) crystallization of a performance fee with respect to PSINTL and (f) fluctuations in the value of PSH's bonds denominated in Euros based on exchange rates.

(4)<br> Compound Annual Growth Rate ("CAGR") is presented from January 1, 2020 through December 31, 2025 (with the exception of HHH on its own as its calculation period is less than one year).

#### Fee-Paying Assets Under Management
Fee-Paying AUM refers to (i) with respect to our core funds and PSVII, the AUM we manage and earn a performance fee and/or management fee from for our core funds and PSVII and (ii) with respect to HHH, the market capitalization of HHH. We believe this measure is useful to stockholders as it provides insight into the capital base upon which we earn our fees.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fee-Paying Assets Under Management**  | **Fee-Paying Assets Under Management**  | **Fee-Paying Assets Under Management**  | **Fee-Paying Assets Under Management**  | **Fee-Paying Assets Under Management**  | **Fee-Paying Assets Under Management**  |
| **(in millions)** | **PSH<sup>(1)</sup>** | **PSLP** | **PSINTL** | **PSVII<sup>(2)</sup>** | **Total**<br>**Funds**  |
| **Balance at December 31, 2023** | $12062.6 | $742.6 | $426.0 | $67.3 | $13298.5  |
| &nbsp;&nbsp;Private Funds Subscriptions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;11.6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6  |
| Private Funds Redemptions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;(143.0) | &nbsp;&nbsp;(129.5) | &nbsp;&nbsp;(62.8) | &nbsp;&nbsp;&nbsp;&nbsp;(335.3)  |
| PSH Dividends | &nbsp;&nbsp;&nbsp;&nbsp;(107.2) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(107.2)  |
| PSH Buybacks | &nbsp;&nbsp;&nbsp;&nbsp;(117.9) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(117.9)  |
| Management Fees  | &nbsp;&nbsp;&nbsp;&nbsp;(188.8)  | &nbsp;&nbsp;&nbsp;(11.1)  | &nbsp;&nbsp;&nbsp;&nbsp;(6.0)  | &nbsp;&nbsp;&nbsp;(0.2)  | &nbsp;&nbsp;&nbsp;&nbsp;(206.1)  |
| Performance Fees / Allocations | &nbsp;&nbsp;&nbsp;&nbsp;(226.6) | &nbsp;&nbsp;&nbsp;(14.5) | &nbsp;&nbsp;&nbsp;&nbsp;(8.3) | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(249.4)  |
| Appreciation (Depreciation) in Market Value | &nbsp;&nbsp;&nbsp;1589.1 | &nbsp;&nbsp;&nbsp;&nbsp;84.3 | &nbsp;&nbsp;&nbsp;&nbsp;47.6 | &nbsp;&nbsp;&nbsp;(4.3) | &nbsp;&nbsp;&nbsp;1716.7  |
| **Balance at December 31, 2024** | **$13011.2** | **$669.8** | **$329.8** | **$—** | **$14010.9** |
| Less: Non-Permanent Fee-Paying AUM | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;(669.8)  | &nbsp;&nbsp;(329.8)  | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(999.6)  |
| **Permanent Fee-Paying AUM** | **$13011.2**  | **$—** | **$—** | **$—** | **$13011.2** |

---

(1)<br> PSH's Fee-Paying AUM does not reflect the bonds outstanding as described in footnotes 1 to the tables immediately above titled "Assets Under Management."

(2)<br> PSVII was liquidated as of December 31, 2024 and had no assets under management as of December 31, 2024.

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fee-Paying Assets Under Management**  | **Fee-Paying Assets Under Management**  | **Fee-Paying Assets Under Management**  | **Fee-Paying Assets Under Management**  | **Fee-Paying Assets Under Management**  | **Fee-Paying Assets Under Management**  |
| **(in millions)**  | **PSH<sup>(1)</sup>**  | **PSLP**  | **PSINTL**  | **HHH**  | **Total** <br>**Funds & HHH**  |
| **Balance at December 31, 2024**  | $13011.2  | $669.8  | $329.8  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$—  | &nbsp;&nbsp;$14010.9  |
| Private Funds Subscriptions  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$7.9  |
| Private Funds Redemptions  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;(149.0)  | &nbsp;&nbsp;(157.6)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;$(306.6)  |
| Private Funds Transfer  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.9  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.9  |
| Initiation of HHH Services Agreement<sup>(2)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;4007.3  | &nbsp;&nbsp;$4007.3  |
| PSH Dividends  | &nbsp;&nbsp;&nbsp;&nbsp;(118.1)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;$(118.1)  |
| PSH Buybacks  | &nbsp;&nbsp;&nbsp;&nbsp;(369.1)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;$(369.1)  |
| Management Fees  | &nbsp;&nbsp;&nbsp;&nbsp;(208.0)  | &nbsp;&nbsp;&nbsp;(10.4)  | &nbsp;&nbsp;&nbsp;&nbsp;(4.5)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;$(222.9)  |
| Performance Fees / Allocations  | &nbsp;&nbsp;&nbsp;&nbsp;(489.2)  | &nbsp;&nbsp;&nbsp;(29.7)  | &nbsp;&nbsp;&nbsp;(13.1)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;$(532.1) |
| Appreciation (Depreciation) in Market Value / Market Capitalization<sup>(3)</sup>  | &nbsp;&nbsp;&nbsp;3222.6 | &nbsp;&nbsp;&nbsp;158.5  | &nbsp;&nbsp;&nbsp;&nbsp;70.1  | &nbsp;&nbsp;&nbsp;&nbsp;730.3 | &nbsp;&nbsp;$4181.5 |
| **Balance at December 31, 2025**  | **$15049.4** | **$648.0**  | **$224.7**  | **$4737.6** | &nbsp;&nbsp;**$20659.7** |
| Less: Non-Permanent Fee-Paying AUM<sup>(4)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;(648.0) | &nbsp;&nbsp;(224.7) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(872.7) |
| &nbsp;&nbsp;**Permanent Capital AUM** | **$15049.4** | **$—** | **$—** | **$4737.6** | &nbsp;&nbsp;**$19787.0** |

---

(1)<br> PSH's Fee-Paying AUM does not reflect the bonds outstanding as described in footnotes 1 to the tables immediately above titled "Assets Under Management."

(2)<br> Reflects the market capitalization of HHH at market open on May 5, 2025.

(3)<br> Appreciation (depreciation) in market capitalization is only applicable to HHH.

(4)<br> Non-Permanent Fee-Paying AUM refers to the portion of Fee-Paying AUM that is subject to withdrawal or redemption at the option of the fund investor or stockholder.

The table below presents the Fee-Paying AUM of our core funds and HHH as of January 1, 2020 and as of December 31 for each of the last six years.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Fee-Paying Assets Under Management ($ in millions)** | **Fee-Paying Assets Under Management ($ in millions)** | **Fee-Paying Assets Under Management ($ in millions)** | **Fee-Paying Assets Under Management ($ in millions)** | **Fee-Paying Assets Under Management ($ in millions)** | **Fee-Paying Assets Under Management ($ in millions)** | **Fee-Paying Assets Under Management ($ in millions)** | **CAGR**  |
| **Fund** | **January 1,** <br>**2020** | **December 31,** <br>**2020** | **December 31,** <br>**2021** | **December 31,** <br>**2022<sup>(2)</sup>** | **December 31,** <br>**2023** | **December 31,** <br>**2024** | **December 31,** <br>**2025** | **(2020-2025)<sup>(3)</sup>**  |
| &nbsp;&nbsp;&nbsp;&nbsp;PSH<sup>(1)</sup> | $5721 | $9053 | $11409 | $9880 | $12063 | $13011 | $15049 | *17%*  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*% Growth* |  | *58%* | *26%* | *(13%)* | *22%* | *8%* | *16%* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;PSLP | 610 | 667 | 735 | 634 | 743 | 670 | 648 | *1%*  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*% Growth* |  | *9%* | *10%* | *(14%)* | *17%* | *(10%)* | *(3%)* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;PSINTL | 717 | 495 | 397 | 333 | 426 | 330 | 225 | *(18%)*  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*% Growth* |  | *(31%)* | *(20%)* | *(16%)* | *28%* | *(23%)* | *(32%)* |  |
| **Total Core Funds** | **$7047** | **$10215** | **$12541** | **$10847** | **$13231** | **$14011** | **$15922** | ***15%***  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*% Growth* |  | *45%* | *23%* | *(14%)* | *22%* | *6%* | *14%* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;HHH  |  |  |  |  |  |  | 4738 |  |
| **Total Core Funds & HHH** | **$7047** | **$10215** | **$12541** | **$10847** | **$13231** | **$14011** | **$20660** | ***20%***  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*% Growth* |  | *45%* | *23%* | *(14%)* | *22%* | *6%* | *47%* |  |

---

(1)<br> PSH's Fee-Paying AUM does not reflect the bonds outstanding as described in footnotes 1 to the tables immediately above titled "Assets Under Management."

(2) Fee-Paying AUM decreased from 2021 to 2022 as a result of (a) certain investor redemptions from our private funds and a share repurchase program with respect to PSH, (b) a quarterly dividend payment to the PSH shareholders, (c) negative performance in our underlying portfolio related to decreases in the stock prices of some of our portfolio companies and (d) crystallization of a performance fee with respect to PSINTL.

(3)<br> Compound Annual Growth Rate ("CAGR") is presented from January 1, 2020 through December 31, 2025 (with the exception of HHH on its own as its calculation period is less than one year).

#### Permanent Capital AUM
Permanent capital AUM refers to the portion of Fee-Paying AUM that is not subject to withdrawal or redemption at the option of the fund investor or stockholder. We believe this measure is useful to stockholders as our permanent capital base allows us to take a long-term view and be opportunistic during periods of market volatility, enables superior, long-term investment and produces a financial profile characterized by steady,

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predictable and recurring management fees. Permanent capital is also a differentiating talent attraction and retention tool, allowing us to hire and retain the top analysts for our own investment team, high-quality employees throughout our company, and experienced senior executives for our portfolio companies.

The following table compares permanent capital AUM for our core funds and HHH as of December 31, 2023, 2024 and 2025. We anticipate that our permanent capital AUM will materially increase following the PSUS IPO as we expect PSUS will be our flagship NYSE-listed permanent capital vehicle.

---

| | | | |
|:---|:---|:---|:---|
| **Permanent Capital AUM (in millions)** | **As of**  | **As of**  | **As of**  |
|  | **December 31, 2023** | **December 31, 2024** | **December 31, 2025**  |
| Core Funds and HHH<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;$12062.6 | &nbsp;&nbsp;&nbsp;&nbsp;$13011.2 | &nbsp;&nbsp;&nbsp;&nbsp;$19787.0 |

---

(1) Periods prior to May 5, 2025 do not reflect HHH's permanent capital AUM. HHH's permanent capital AUM as of December 31, 2025 reflects the market capitalization of HHH at market open on May 5, 2025 adjusted for appreciation or depreciation in such market capitalization as of the end of the reporting period. 

#### Fund Performance
The tables below provide performance information for our core funds to facilitate an understanding of our results of operations for the periods presented. The tables below provide the contributors and detractors to gross performance of the funds' portfolios for the twelve-month periods ended December 31, 2024 and December 31, 2025. The fund return information for individual funds reflected in this discussion and analysis is not necessarily indicative of the future performance of any particular fund. An investment in us is not an investment in any of our funds. This track record presentation is unaudited and does not purport to represent the respective fund's financial results in accordance with GAAP or IFRS, as applicable. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns. See "Risk Factors—Risks Related to Our Business and Industry—*The historical returns attributable to our funds and HHH, including those presented in this prospectus, should not be considered as indicative of the future results of our funds or HHH or of our future results or of any returns expected on an investment in our common stock*."

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Pershing Square Holdings, Ltd.** | **Pershing Square Holdings, Ltd.** | **Pershing Square, L.P.** | **Pershing Square, L.P.** | **Pershing Square International, Ltd.**  | **Pershing Square International, Ltd.**  |
| **January 1, 2024 - December 31, 2024** | **January 1, 2024 - December 31, 2024** | **January 1, 2024 - December 31, 2024** | **January 1, 2024 - December 31, 2024** | **January 1, 2024 - December 31, 2024**  | **January 1, 2024 - December 31, 2024**  |
| Alphabet Inc.  | &nbsp;&nbsp;&nbsp;4.9%  | Alphabet Inc.  | &nbsp;&nbsp;&nbsp;4.2%  | Alphabet Inc.  | &nbsp;&nbsp;&nbsp;4.4%  |
| Chipotle Mexican Grill, Inc.  | &nbsp;&nbsp;&nbsp;4.4% | Chipotle Mexican Grill, Inc. | &nbsp;&nbsp;&nbsp;3.9% | Chipotle Mexican Grill, Inc.  | &nbsp;&nbsp;&nbsp;4.1%  |
| Hilton Worldwide Holdings Inc.  | &nbsp;&nbsp;&nbsp;4.0%  | &nbsp;&nbsp;Brookfield Corporation  | &nbsp;&nbsp;&nbsp;3.3%  | &nbsp;&nbsp;Brookfield Corporation  | &nbsp;&nbsp;&nbsp;3.4%  |
| &nbsp;&nbsp;Brookfield Corporation  | &nbsp;&nbsp;&nbsp;3.8% | Hilton Worldwide Holdings Inc.  | &nbsp;&nbsp;&nbsp;3.3% | Hilton Worldwide Holdings Inc.  | &nbsp;&nbsp;&nbsp;3.2%  |
| &nbsp;&nbsp;Federal Home Loan Mortgage Corporation | &nbsp;&nbsp;&nbsp;2.3% | &nbsp;&nbsp;Federal Home Loan Mortgage Corporation | &nbsp;&nbsp;&nbsp;2.3% | &nbsp;&nbsp;Federal Home Loan Mortgage Corporation | &nbsp;&nbsp;&nbsp;2.5%  |
| Federal National Mortgage Association | &nbsp;&nbsp;&nbsp;2.2% | Federal National Mortgage Association | &nbsp;&nbsp;&nbsp;1.8% | Federal National Mortgage Association | &nbsp;&nbsp;&nbsp;2.3%  |
| &nbsp;&nbsp;Share Buyback Accretion | &nbsp;&nbsp;&nbsp;0.4% | Howard Hughes Holdings Inc. | &nbsp;&nbsp;&nbsp;(0.7)% | Howard Hughes Holdings Inc. | &nbsp;&nbsp;&nbsp;(0.5)%  |
| Howard Hughes Holdings Inc. | &nbsp;&nbsp;&nbsp;(0.6)% | Restaurant Brands International Inc. | &nbsp;&nbsp;&nbsp;(1.3)% | Restaurant Brands International Inc.  | &nbsp;&nbsp;&nbsp;(1.4)%  |
| Bond Interest Expense  | &nbsp;&nbsp;&nbsp;(0.6)% | &nbsp;&nbsp;Nike, Inc.  | &nbsp;&nbsp;&nbsp;(1.5)% | &nbsp;&nbsp;Nike, Inc.  | &nbsp;&nbsp;&nbsp;(1.6)%  |
| Restaurant Brands International Inc.  | &nbsp;&nbsp;&nbsp;(1.6)% | &nbsp;&nbsp;Interest Rate Swaptions | &nbsp;&nbsp;&nbsp;(1.6)% | Interest Rate Swaptions  | &nbsp;&nbsp;&nbsp;(1.6)%  |
| Universal Music Group N.V. | &nbsp;&nbsp;&nbsp;(1.7)% | Universal Music Group N.V. | &nbsp;&nbsp;&nbsp;(1.6)% | Universal Music Group N.V. | &nbsp;&nbsp;&nbsp;(2.2)%  |
| Interest Rate <br>Swaptions | &nbsp;&nbsp;&nbsp;(1.9)% | &nbsp;&nbsp;All Other Positions and Other Income/Expense  | &nbsp;&nbsp;&nbsp;(0.1)%  | &nbsp;&nbsp;All Other Positions and Other Income/Expense  | &nbsp;&nbsp;&nbsp;(0.2)%  |
| Nike, Inc. | &nbsp;&nbsp;&nbsp;(2.2)% |  |  |  |  |
| All Other Positions and Other Income/Expense | &nbsp;&nbsp;&nbsp;&nbsp;0.4% |  |  |  |  |
| **Contributors Less Detractors (Gross Return)<sup>(1)</sup>** | &nbsp;&nbsp;&nbsp;&nbsp;13.8% | **Contributors Less Detractors (Gross Return)<sup>(1)</sup>** | &nbsp;&nbsp;&nbsp;&nbsp;12.0% | **Contributors Less Detractors (Gross Return)<sup>(1)</sup>** | &nbsp;&nbsp;&nbsp;&nbsp;12.4% |

---

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#### **TABLE OF CONTENTS**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Pershing Square Holdings, Ltd**  | **Pershing Square Holdings, Ltd**  | **Pershing Square, L.P.**  | **Pershing Square, L.P.**  | **Pershing Square International, Ltd**  | **Pershing Square International, Ltd**  |
| **January 1, 2025 - December 31, 2025**  | **January 1, 2025 - December 31, 2025**  | **January 1, 2025 - December 31, 2025**  | **January 1, 2025 - December 31, 2025**  | **January 1, 2025 - December 31, 2025**  | **January 1, 2025 - December 31, 2025**  |
| &nbsp;&nbsp;Alphabet Inc. | &nbsp;&nbsp;&nbsp;&nbsp;10.3% | &nbsp;&nbsp;Alphabet Inc. | &nbsp;&nbsp;&nbsp;&nbsp;9.0% | &nbsp;&nbsp;Alphabet Inc. | &nbsp;&nbsp;&nbsp;&nbsp;8.4% |
| Federal National Mortgage Association | &nbsp;&nbsp;5.8%  | &nbsp;&nbsp;Federal Home Loan Mortgage Corporation | &nbsp;&nbsp;&nbsp;5.2%  | Federal Home Loan Mortgage Corporation | &nbsp;&nbsp;&nbsp;&nbsp;5.9%  |
| Federal Home Loan Mortgage Corporation | &nbsp;&nbsp;&nbsp;&nbsp;5.0%  | Federal National Mortgage Association | &nbsp;&nbsp;&nbsp;&nbsp;4.7%  | Federal National Mortgage Association | &nbsp;&nbsp;&nbsp;&nbsp;5.1%  |
| Brookfield Corporation  | &nbsp;&nbsp;&nbsp;&nbsp;3.5%  | Brookfield Corporation  | &nbsp;&nbsp;&nbsp;&nbsp;3.0%  | Brookfield Corporation  | &nbsp;&nbsp;&nbsp;&nbsp;3.0% |
| &nbsp;&nbsp;Uber Technologies, Inc.  | &nbsp;&nbsp;&nbsp;&nbsp;2.7% | Amazon.com, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;2.2% | Amazon.com, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;2.1%  |
| Amazon.com, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;2.4% | &nbsp;&nbsp;Uber Technologies, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;2.2% | &nbsp;&nbsp;Uber Technologies, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;2.1% |
| Share Buyback Accretion | &nbsp;&nbsp;&nbsp;&nbsp;1.2%  | Universal Music Group N.V. | &nbsp;&nbsp;&nbsp;&nbsp;1.1%  | Hilton Worldwide Holdings Inc.  | &nbsp;&nbsp;&nbsp;&nbsp;0.9%  |
| Hilton Worldwide Holdings Inc. | &nbsp;&nbsp;&nbsp;&nbsp;1.0%  | Hilton Worldwide Holdings Inc.  | &nbsp;&nbsp;&nbsp;&nbsp;0.8%  | Restaurant Brands International Inc.  | &nbsp;&nbsp;&nbsp;&nbsp;0.6%  |
| Universal Music Group N.V. | &nbsp;&nbsp;&nbsp;&nbsp;0.7% | &nbsp;&nbsp;Meta Platforms, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;0.6% | &nbsp;&nbsp;Meta Platforms, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;0.6% |
| &nbsp;&nbsp;Meta Platforms, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;0.7% | Restaurant Brands International Inc. | &nbsp;&nbsp;&nbsp;&nbsp;0.5% | Universal Music Group N.V. | &nbsp;&nbsp;&nbsp;&nbsp;0.6% |
| Restaurant Brands International Inc. | &nbsp;&nbsp;&nbsp;&nbsp;0.5%  | &nbsp;&nbsp;Nike, Inc.  | &nbsp;&nbsp;&nbsp;(1.8)%  | &nbsp;&nbsp;Howard Hughes Holdings Inc.  | &nbsp;&nbsp;&nbsp;&nbsp;0.5%  |
| Bond Interest Expense  | &nbsp;&nbsp;(0.8)%  | Chipotle Mexican Grill, Inc.  | &nbsp;&nbsp;&nbsp;(3.3)%  | &nbsp;&nbsp;Nike, Inc.  | &nbsp;&nbsp;&nbsp;(1.9)%  |
| &nbsp;&nbsp;Nike, Inc.  | &nbsp;&nbsp;(2.5)%  | &nbsp;&nbsp;All Other Positions and Other Income/Expense  | &nbsp;&nbsp;&nbsp;&nbsp;0.4%  | Chipotle Mexican Grill, Inc.  | &nbsp;&nbsp;&nbsp;(3.6)%  |
| Chipotle Mexican Grill, Inc.  | &nbsp;&nbsp;(4.6)%  |  |  | All Other Positions and Other Income/Expense | &nbsp;&nbsp;&nbsp;(0.2)% |
| &nbsp;&nbsp;All Other Positions and Other Income/Expense  | &nbsp;&nbsp;&nbsp;&nbsp;0.6%  |  |  |  |  |
| &nbsp;&nbsp;**Contributors Less Detractors (Gross Return)<sup>(1)</sup>**  | &nbsp;&nbsp;&nbsp;&nbsp;26.5%  | &nbsp;&nbsp;**Contributors Less Detractors (Gross Return)<sup>(1)</sup>**  | &nbsp;&nbsp;&nbsp;&nbsp;24.6%  | &nbsp;&nbsp;**Contributors Less Detractors (Gross Return)<sup>(1)</sup>**  | &nbsp;&nbsp;&nbsp;&nbsp;24.1% |

---

(1) Represents the gross returns from investing in the fund, before the deduction of management fees and accrued or crystallized performance fees, if any. Inclusion of such fees would produce lower returns than presented here. Gross returns reflected above (a) include only returns on the investment in the underlying issuer and the hedge positions that directly relate to the securities that reference the underlying issuer; (ii) do not reflect the cost or benefit of hedges that do not relate to the securities that reference the underlying issuer; and (iii) do not reflect the cost or benefit of portfolio hedges. Contributors or detractors to performance of 50 basis points or more are listed separately, while contributors or detractors to performance of less than 50 basis points are aggregated, except for bond interest expense and share buyback accretion, if any. The contributors and detractors to gross returns presented herein are for illustrative purposes only. The securities listed above may not have been held for the entire calendar year. **This performance information is presented in connection with the offering of our common stock and is for illustrative purposes only. It is not the performance record of PSUS and should not be considered a substitute for the performance of PSUS. There can be no assurance that any of our funds will achieve comparable or greater results in the future, or that any of our funds will be able to implement their investment strategy or achieve their investment objective.** Our funds' investments may be made under different economic conditions and may include different underlying investments in the future. Furthermore, PSH, PSLP, and PSINTL and the other funds and accounts managed by us prior to the combined offering are not registered under the 1940 Act, unlike PSUS, and, therefore, none of them are subject to the investment restrictions, leverage and derivative restrictions, diversification requirements and other regulatory requirements imposed on registered investment companies by the 1940 Act and on regulated investment companies by the Code. If such funds or accounts had been registered under the 1940 Act and/or operated as regulated investment companies under the Code, their respective returns might have been lower and their ability to undertake certain transactions or investments may have been restricted. See the accompanying PSUS Prospectus for additional information about PSUS and the risks associated with an investment in PSUS Shares. 

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#### Consolidated Results of Operations
The following tables set forth information regarding our consolidated results of operations for the years ended December 31, 2024 and 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year**<br>**Ended December 31,** | **For the Year**<br>**Ended December 31,** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change**  |
| **($ in thousands)** | **2024** | **2025** | $**%** |
| **Revenue**<br>|  |  |  |
| Management fees<sup>(1)</sup> | $206067 | $230420 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12%  |
| Performance fees<sup>(2)</sup> | &nbsp;&nbsp;249431 | &nbsp;&nbsp;532088 | &nbsp;&nbsp;&nbsp;&nbsp;113%  |
| **Total revenue** | &nbsp;&nbsp;455498 | &nbsp;&nbsp;762508 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67%  |
| **Expenses**<br>|  |  |  |
| Profit-sharing partner compensation<sup>(2)</sup> | &nbsp;&nbsp;339133 | &nbsp;&nbsp;459079 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35%  |
| &nbsp;&nbsp;Affiliates fee rebate | &nbsp;&nbsp;&nbsp;69301 | &nbsp;&nbsp;&nbsp;77580 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12%  |
| General and administrative expense | &nbsp;&nbsp;&nbsp;50812 | &nbsp;&nbsp;&nbsp;42074 | &nbsp;&nbsp;&nbsp;&nbsp;(17%)  |
| Employee compensation and benefits | &nbsp;&nbsp;&nbsp;13164 | &nbsp;&nbsp;&nbsp;20228 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54%  |
| Depreciation and amortization expense | &nbsp;&nbsp;&nbsp;&nbsp;2778 | &nbsp;&nbsp;&nbsp;&nbsp;2301 | &nbsp;&nbsp;&nbsp;&nbsp;(17%)  |
| **Total expenses** | &nbsp;&nbsp;475188 | &nbsp;&nbsp;601262 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27%  |
| **Operating income (loss)** | &nbsp;&nbsp;(19690) | &nbsp;&nbsp;161246 | &nbsp;&nbsp;&nbsp;&nbsp;919%  |
| **Non-operating income (expenses)**<br>|  |  |  |
| Unrealized gain on HHH shares held at fair value | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;110700 | &nbsp;&nbsp;&nbsp;&nbsp;100% |
| Interest income | &nbsp;&nbsp;&nbsp;28508 | &nbsp;&nbsp;&nbsp;16910 | &nbsp;&nbsp;&nbsp;&nbsp;(41%)  |
| Unrealized gain on investment in Pershing Square, L.P. held at fair value<sup>(2)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;6986 | &nbsp;&nbsp;&nbsp;12224 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75%  |
| &nbsp;&nbsp;Other income | &nbsp;&nbsp;&nbsp;&nbsp;5667 | &nbsp;&nbsp;&nbsp;&nbsp;5241 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8%)  |
| &nbsp;&nbsp;Interest expense | &nbsp;&nbsp;&nbsp;&nbsp;(3096) | &nbsp;&nbsp;&nbsp;&nbsp;(2302) | &nbsp;&nbsp;&nbsp;&nbsp;(26)%  |
| **Total non-operating income** | &nbsp;&nbsp;&nbsp;38065 | &nbsp;&nbsp;142773 | &nbsp;&nbsp;&nbsp;&nbsp;275%  |
| **Net income before taxes** | &nbsp;&nbsp;&nbsp;18375 | &nbsp;&nbsp;304019 | &nbsp;&nbsp;1,555%  |
| Income tax expense | &nbsp;&nbsp;&nbsp;15985 | &nbsp;&nbsp;&nbsp;22309 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40%  |
| **Net income** | &nbsp;&nbsp;&nbsp;&nbsp;2390 | &nbsp;&nbsp;281710 | &nbsp;&nbsp;11,687%  |
| Less: Net (income) loss attributable to non-controlling interest | &nbsp;&nbsp;(16541) | &nbsp;&nbsp;(31933) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;93%  |
| &nbsp;&nbsp;&nbsp;**Net income (loss) attributable to Pershing Square** <br>**Holdco, L.P.** | $(14151) | $249777 | &nbsp;&nbsp;1,865% |

---

(1) We recognized a $292.8 million deferred asset for the HHH Premium, which is deemed for accounting purposes to represent the amount paid to obtain the HHH Services Agreement, when we completed the Howard Hughes Transaction. The HHH Premium is amortized as contra-revenue in management fees on a straight-line basis over a period of 20 years beginning May 5, 2025.

(2) Includes amounts attributable to consolidated variable interest entities for which Pershing Square Holdco, L.P. does not have any direct equity interests. 

#### Comparison of the Years Ended December 31, 2024 and 2025

#### Revenue
*Management Fees* 

Total management fees increased by $34.0 million, or 16%, on a gross basis, and $24.4 million, or 12%, net of the HHH contra-revenue, from the year ended December 31, 2024 to the year ended December 31, 2025, primarily driven by an increase of $17.1 million in fees earned pursuant to the HHH Services Agreement and an increase of $9.6 million in management fees earned from PSH offset by a decrease of $1.5 million in management fees earned from PSINTL.

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#### **TABLE OF CONTENTS**
*Performance Fees* 

Total performance fees increased $282.7 million, or 113%, from the year ended December 31, 2024 to the year ended December 31, 2025, primarily due to an increase in performance fees earned from PSH. The increase in performance fees was driven by an increase in gross returns of 26.5% for the year ended December 31, 2025 compared to gross returns of 13.8% for the year ended December 31, 2024. See "—Fund Performance" above for more information.

#### Expenses
*Profit-Sharing Partner Compensation* 

Profit-sharing partner compensation increased $119.9 million, or 35%, from the year ended December 31, 2024 to the year ended December 31, 2025. The increase was primarily driven by an increase of $248.7 million in the Subordinated Performance Fees offset by a $111.3 million reduction in new permanent profits interests grants.

*Affiliates Fee Rebate* 

The affiliates fee rebate increased $8.3 million, or 12%, from the year ended December 31, 2024 to the year ended December 31, 2025, primarily driven by an increase in fee rebates to partners as a result of higher earned management fees and performance fees.

*General and Administrative Expense* 

General and administrative expense decreased $8.7 million, or 17%, from the year ended December 31, 2024 to the year ended December 31, 2025, primarily driven by a decrease of $6.4 million in aircraft expense and a decrease of $4.6 million in professional fees, offset by an increase of $1.8 million in travel-related expenses.

*Employee Compensation and Benefits* 

Employee compensation and benefits increased $7.1 million, or 54%, from the year ended December 31, 2024 to the year ended December 31, 2025, primarily driven by an increase in headcount.

*Depreciation and Amortization Expense* 

Depreciation and amortization expense had an immaterial decrease in the amount of $0.5 million, or 17%, from the year ended December 31, 2024 to the year ended December 31, 2025.

#### Non-operating Income (Expenses)
*Unrealized gain on HHH shares held at fair value*

Unrealized gain on HHH shares held at fair value increased by $110.7 million, or 100%, from the year ended December 31, 2024 to the year ended December 31, 2025, as a result of the HHH Transaction which took place in May 2025 and the share price of HHH's publicly traded common stock on December 31, 2025.

*Interest Income* 

Interest income decreased by $11.6 million, or 41%, from the year ended December 31, 2024 to the year ended December 31, 2025. Interest income for the year ended December 31, 2024 was primarily related to interest on cash and cash equivalents as a result of the Strategic Investment. Cash and cash equivalents have decreased for the year ended December 31, 2025 as a result of the Howard Hughes Transaction, which has led to a decrease in interest income for the period.

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#### **TABLE OF CONTENTS**
*Unrealized Gain on Investment in Pershing Square, L.P. Held at Fair Value* 

Unrealized gain on investment in PSLP held at fair value increased by $5.2 million, or 75%, from the year ended December 31, 2024 to the year ended December 31, 2025. As of December 31, 2025 and 2024, PSGP had an ownership interest of approximately 5.2% and 4.5%, respectively, in PSLP. For the years ended December 31, 2025 and 2024, PSGP recorded a gain of $12.2 million and $7.0 million, respectively, from its investment in PSLP based on PSLP's performance.

*Other Income*

Other income had an immaterial decrease in the amount of $0.4 million, or 8%, from the year ended December 31, 2024 to the year ended December 31, 2025.

*Interest Expense* 

Interest expense had an immaterial decrease in the amount of $0.8 million, or 26%, from the year ended December 31, 2024 to the year ended December 31, 2025.

*Income Tax Expense* 

Income tax expense increased by $6.3 million, or 40%, from the year ended December 31, 2024 to the year ended December 31, 2025, which was primarily related to the New York City Unincorporated Business Tax ("UBT").

*Net (Income) Loss Attributable to Non-Controlling Interest* 

Net income attributable to non-controlling interest increased by $15.4 million, or 93%, from the year ended December 31, 2024 to the year ended December 31, 2025, which was directly attributable to the increased gain allocated from PSLP. For the year ended December 31, 2024, the net income allocated from PSLP and PSVII was $16.5 million. For the year ended December 31, 2025, the net income allocated from PSLP was $31.9 million. PSVII was liquidated as of December 31, 2024 and had no assets under management as of December 31, 2024.

#### Consolidated Changes in Financial Condition
The following table sets forth information regarding our consolidated changes in financial condition as of December 31, 2024 and 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,**  | **As of December 31,**  | **Change**  |
| **($ in thousands)** | **2024**  | **2025**  | $**%**  |
| **Assets**<br>|  |  |  |
| Cash and cash equivalents  | $964857  | $55398  | &nbsp;&nbsp;&nbsp;&nbsp;(94%)  |
| Restricted cash  | 119  | 119  | &nbsp;&nbsp;&nbsp;&nbsp;0%  |
| Performance fees receivable  | 232670  | 497330  | &nbsp;&nbsp;&nbsp;&nbsp;114%  |
| Due from affiliates<sup>(1)</sup> | 8069  | 15614  | &nbsp;&nbsp;&nbsp;&nbsp;93%  |
| Prepaid expenses  | 866  | 1345  | &nbsp;&nbsp;&nbsp;&nbsp;55%  |
| Investment in Howard Hughes Holdings Inc. shares, at fair value  | —  | 717930  | &nbsp;&nbsp;&nbsp;&nbsp;100%  |
| Deferred HHH Services Agreement premium  | —  | 283158 | &nbsp;&nbsp;&nbsp;&nbsp;100%  |
| Investment in Pershing Square, L.P., at fair value<sup>(1)</sup> | 59513  | 79288  | &nbsp;&nbsp;&nbsp;&nbsp;33%  |
| &nbsp;&nbsp;Lease right-of-use assets  | 30590  | 28441  | &nbsp;&nbsp;&nbsp;&nbsp;(7%)  |
| Fixed assets and leasehold improvements (net of accumulated depreciation of $15,292 and $17,593)  | 16835  | 14984  | &nbsp;&nbsp;&nbsp;&nbsp;(11%)  |
| Deferred sublease incentive  | 4640  | 4129  | &nbsp;&nbsp;&nbsp;&nbsp;(11%)  |
| Other assets  | 634  | 3466  | &nbsp;&nbsp;&nbsp;&nbsp;447%  |
| **Total assets** | 1318793  | 1701202  | &nbsp;&nbsp;&nbsp;&nbsp;29%  |
| **Liabilities**<br>|  |  |  |
| Accrued compensation and benefits<sup>(1)</sup> | 170115  | 426094  | &nbsp;&nbsp;&nbsp;&nbsp;150%  |
| Performance fee distributions payable<sup>(1)</sup> | 49283  | 54839  | &nbsp;&nbsp;&nbsp;&nbsp;11%  |

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| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,**  | **As of December 31,**  | **Change**  |
| **($ in thousands)** | **2024**  | **2025**  | $**%**  |
| &nbsp;&nbsp;Affiliates fee rebate payable  | 21662  | 24144  | &nbsp;&nbsp;&nbsp;&nbsp;11%  |
| Taxes payable  | 13628  | 17029  | &nbsp;&nbsp;&nbsp;&nbsp;25%  |
| Distributions payable to partners | 8736  | 10104  | &nbsp;&nbsp;&nbsp;&nbsp;16%  |
| Accounts payable | 6982  | 8620  | &nbsp;&nbsp;&nbsp;&nbsp;23%  |
| Deferred revenue | —  | 3786  | &nbsp;&nbsp;&nbsp;&nbsp;100%  |
| Operating lease liabilities  | 46329  | 42673  | &nbsp;&nbsp;&nbsp;&nbsp;(8%)  |
| Loans payable  | 34800  | 34800  | &nbsp;&nbsp;&nbsp;&nbsp;0%  |
| **Total liabilities**  | 351535  | 622089  | &nbsp;&nbsp;&nbsp;&nbsp;77%  |
| **Partners' capital**<br>|  |  |  |
| Partners' capital controlling interests  | 920469  | 1016418  | &nbsp;&nbsp;&nbsp;&nbsp;10%  |
| Non-controlling interest in consolidated variable interest entities<sup>(1)</sup> | 46789  | 62695  | &nbsp;&nbsp;&nbsp;&nbsp;34%  |
| **Total partners' capital**  | 967258  | 1079113 | &nbsp;&nbsp;&nbsp;&nbsp;12%  |
| **Total liabilities and partners' capital**  | $1318793  | $1701202 | &nbsp;&nbsp;&nbsp;&nbsp;29% |

---

(1) Includes amounts attributable to consolidated variable interest entities for which Pershing Square Holdco, L.P. does not have any direct equity interests.

#### Comparison of Balances as of December 31, 2024 and December 31, 2025
*Cash and Cash Equivalents* 

Cash and cash equivalents decreased by $909.5 million, or 94%, from December 31, 2024 to December 31, 2025, primarily driven by the use of cash for the HHH Transaction which was completed in May 2025.

*Performance Fees Receivable* 

Performance fees receivable increased by $264.7 million, or 114%, from December 31, 2024 to December 31, 2025, primarily due to an increase in the performance fees receivable from PSH. See "—Comparison of the Years Ended December 31, 2024 and 2025—Revenue—Performance Fees."

*Investment in HHH Shares, at Fair Value* 

Investment in HHH shares, at fair value increased by $717.9 million, or 100%, from December 31, 2024 to December 31, 2025, due to the Howard Hughes Transaction which was completed in May 2025.

*Deferred HHH Services Agreement Premium* 

Deferred HHH Services Agreement premium increased by $283.2 million, or 100%, from December 31, 2024 to December 31, 2025, due to the HHH Premium, which is deemed for accounting purposes to represent the amount paid above HHH's publicly traded share price to obtain the HHH Services Agreement, offset by the amortization. The HHH Premium is amortized as contra-revenue in management fees on a straight-line basis over a period of 20 years with a start date of May 5, 2025.

*Accrued Compensation and Benefits* 

Accrued compensation and benefits increased by $256.0 million, or 150%, from December 31, 2024 to December 31, 2025, primarily due to increased profit-sharing partner compensation. Distributions of profit-sharing partner compensation are accrued in the year in which our performance fees crystalize, but are not paid out until after year end.

#### Non-GAAP Financial Measures
We report certain financial measures that are not required by, or presented in accordance with, GAAP. Management uses these non-GAAP financial measures to assess the performance of our business across reporting periods and believes this information is useful to investors for the same reasons. See below for our definitions of Fee-Related Earnings ("FRE") and Distributable Earnings ("DE").

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#### **TABLE OF CONTENTS**

#### Fee-Related Earnings
FRE is a non-GAAP financial measure used by us to evaluate our business by highlighting earnings from recurring management fees and Preferred Performance Fees. We believe FRE is useful to investors because it provides additional insights into the fee-driven operating profitability of our business that is not directly based on the net income of the funds we manage. FRE represents management fees and Preferred Performance Fees less the compensation directly related to the management fees and performance fees, which includes salaries, benefits, payroll taxes and discretionary cash bonuses and other operating expenses, and after deducting "Subordinated Performance Fees," which consist of amounts in excess of Preferred Performance Fees which are payable to CompCo pursuant to the VCA.

As described above, we implemented the VCA in connection with the Strategic Investment. However, in order to facilitate comparisons with our results following the combined offering, we have presented FRE for the periods presented on a basis that reflects the allocation of our historical performance fees as between the Preferred Performance Fees and Subordinated Performance Fees that the VCA would have required. Although the VCA will be terminated in connection with the combined offering and PSCM will issue the Preferred Profits Interest (as defined below) and the Subordinated Profits Interest (as defined below) to CompCo, the terms of the Preferred Profits Interest and the Subordinated Profits Interest will generally provide for the same calculation of Preferred Performance Fees and Subordinated Performance Fees, and same allocation of such fees between us and CompCo, as currently provided by the VCA. For further information, see "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Variable Compensation Agreement and Subordinated Profits Interest."

#### Distributable Earnings
DE is a non-GAAP financial measure used to assess performance and amounts available for distribution or dividends, including to our personnel and owners of PS Partner Group and holders of our common stock. DE represents FRE plus interest income or less interest expense, as applicable.

These non-GAAP financial measures should not be considered a substitute for, superior to or an alternative to net income attributable to Pershing Square Holdco, L.P., which is the most directly comparable GAAP measure. Further, these non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider non-GAAP financial measures in isolation or as a substitute for GAAP measures including revenues, net income (loss) and net income attributable to Pershing Square Holdco, L.P. We may calculate or present these non-GAAP financial measures differently than other companies who report measures with the same or similar names, and as a result, the non-GAAP financial measures we report may not be comparable.

The following tables set forth our FRE and DE calculations and a reconciliation of DE and FRE to the most directly comparable financial measure calculated in accordance with GAAP for the years ended December 31, 2020, 2021, 2022, 2023, 2024 and 2025:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Pershing Square Holdco, L.P.** | **Pershing Square Holdco, L.P.** | **Pershing Square Holdco, L.P.** | **Pershing Square Holdco, L.P.** | **Pershing Square Holdco, L.P.** | **Pershing Square Holdco, L.P.** |  |
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **CAGR<sup>(5)</sup>**  |
| **($ in thousands)** | **2020** | **2021** | **2022** | **2023** | **2024**  | **2025** | **2020-2025** |
| Management fees | $117286 | $162443 | $163515 | $170801 | $206067 | $230420 | 14% |
| Management fees – contra-revenue<sup>(1)</sup> |  |  |  |  |  | 9612 |  |
| Preferred Performance Fees – current year<sup>(2)</sup> | 46332 | 75555 | 33 | 87087 | 98269 | 102604 |  |
| Preferred Performance Fees – carryforwards |  |  |  | 90573 |  |  |  |
| **FRE revenue** | **$163618** | **$237998** | **$163548** | **$348461** | **$304336** | **$342636** | **16%**  |
| &nbsp;&nbsp;&nbsp;&nbsp;***% Growth*** |  | ***45%*** | ***(31%)*** | ***113%*** | ***(13%)*** | ***13%*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Employee compensation and benefits | $(19170) | $(12699) | $(10859) | $(13124) | $(13164) | $(20228) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: General and administrative expense, net<sup>(3)</sup> | (11029) | (13428) | (21801) | (18380) | (45145) | (36834) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Depreciation and amortization expense | (2762) | (2985) | (5035) | (2758) | (2778) | (2301) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Plus: Non-recurring expenses<sup>(4)</sup> |  |  |  |  | 25890 | 14652 |  |
| **Less: FRE expenses** | **$(32961)** | **$(29112)** | **$(37695)** | **$(34262)** | **$(35197)** | **$(44711)** | ***6%***  |
| &nbsp;&nbsp;&nbsp;&nbsp;***% Growth*** |  | ***(12%)*** | ***29%*** | ***(9%)*** | ***3%*** | ***27%*** |  |
| **Fee-related earnings** | **$130657** | **$208886** | **$125853** | **$314199** | **$269139** | **$297925** | ***18%***  |
| &nbsp;&nbsp;&nbsp;&nbsp;***% Margin*** | ***79.9%*** | ***87.8%*** | ***77.0%*** | ***90.2%*** | ***88.4%*** | ***87.0%*** |  |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Pershing Square Holdco, L.P.** | **Pershing Square Holdco, L.P.** | **Pershing Square Holdco, L.P.** | **Pershing Square Holdco, L.P.** | **Pershing Square Holdco, L.P.** | **Pershing Square Holdco, L.P.** |  |
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **CAGR<sup>(5)</sup>**  |
| **($ in thousands)** | **2020** | **2021** | **2022** | **2023** | **2024**  | **2025** | **2020-2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;***% Growth*** |  | ***60%*** | ***(40%)*** | ***150%*** | ***(14%)*** | ***11%*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expense), net | $(1139) | $(932) | $(2529) | $(6330) | $25413 | $14608 |  |
| **Distributable earnings** | **$129518** | **$207954** | **$123324** | **$307869** | **$294552** | **$312533** | ***19%***  |
| &nbsp;&nbsp;&nbsp;&nbsp;***% Growth*** |  | ***61%*** | ***(41%)*** | ***150%*** | ***(4%)*** | ***6%*** |  |

---

(1) We recognized a $292.8 million deferred asset for the HHH Premium, which is deemed for accounting purposes to represent the amount paid to obtain the HHH Services Agreement, when we completed the Howard Hughes Transaction. The HHH Premium is amortized as contra-revenue in management fees on a straight-line basis over a period of 20 years beginning May 5, 2025.

(2) Reflects total performance fees less performance fees from Pershing Square, L.P. See footnote 3 in the table immediately below. 

(3)<br> Reflects general and administrative expense less other income.

(4) Refers to non-recurring expenses that do not represent the ongoing cost of running our business and are not reflective of our operational performance. For the year ended December 31, 2024, includes expenses related to the Strategic Investment and for the year ended December 31, 2025, includes expenses related to the HHH Transaction and the combined transaction.

(5)<br> Compound Annual Growth Rate ("CAGR") is presented from January 1, 2020 through December 31, 2025.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Pershing Square Holdco, L.P.**  | **Pershing Square Holdco, L.P.**  | **Pershing Square Holdco, L.P.**  | **Pershing Square Holdco, L.P.**  | **Pershing Square Holdco, L.P.**  | **Pershing Square Holdco, L.P.**  |
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
| **($ in thousands)** | **2020** | **2021** | **2022** | **2023** | **2024** | **2025**  |
| Net income (loss) attributable to Pershing Square Holdco, L.P. | $481852 | $300064 | $51839 | $209460 | $(14151) | $249777  |
| Net (income) loss attributable to non-controlling interest | (60000) | (31678) | 4729 | (24261) | (16541) | (31933)  |
| **Net income** | **$541852** | **$331742** | **$47110** | **$233721** | **$2390** | **$281710**  |
| &nbsp;&nbsp;&nbsp;&nbsp;*% Margin* | 56.2% | 48.7% | 28.8% | 45.6% | 0.5% | 36.9%  |
| Income tax expense | 17400 | 10516 | 4793 | 18170 | 15985 | 22309  |
| **Net income before taxes** | **$559252** | **$342258** | **$51903** | **$251891** | **$18375** | **$304019**  |
| Subordinated Performance Fees<sup>(1)</sup> | (699174) | (395863) |  | (138829) | (136618) | (399741)  |
| Management fees – contra-revenue<sup>(2)</sup> |  |  |  |  |  | 9612  |
| Gain on lease modification |  |  | (3570) |  |  | —  |
| Gain on unvested compensation |  | (897) |  |  |  | —  |
| Unrealized (gain) loss allocated from Pershing Square, L.P.<sup>(3)</sup> | (4496) | (15763) | 4737 | (11362) | (6986) | (12224)  |
| Unrealized (gain) loss on HHH shares held at fair value |  |  |  |  |  | (110700) |
| Performance fees from Pershing Square, L.P.<sup>(3)</sup> | (70585) | (35935) | (13) | (19408) | (14543) | (29742)  |
| Non-recurring expenses<sup>(4)</sup> |  |  |  |  | 25890 | 14652  |
| Affiliates fee rebate<sup>(5)</sup> | 164037 | 141041 | 34849 | 115706 | 69301 | 77580  |
| Profit-sharing partner compensation<sup>(6)</sup> | 210584 | 183936 | 35418 | 115830 | 339133 | 459077  |
| Performance fee offset<sup>(7)</sup> | (30100) | (10823) |  | (5959) |  | —  |
| **Distributable earnings** | **$129518** | **$207954** | **$123324** | **$307869** | **$294552** | **$312533**  |
| &nbsp;&nbsp;&nbsp;&nbsp;***% Growth*** |  | ***61%*** | ***(41%)*** | ***150%*** | ***(4%)*** | ***6%*** |
| Interest income (expense), net | $1139 | $932 | $2529 | $6330 | $(25413) | $(14608)  |
| **Fee-related earnings** | **$130657** | **$208886** | **$125853** | **$314199** | **$269139** | **$297925**  |
| &nbsp;&nbsp;&nbsp;&nbsp;***% Growth*** |  | ***60%*** | ***(40%)*** | ***150%*** | ***(14%)*** | ***11%*** |

---

(1)<br> PSCM pays the Subordinated Performance Fees to CompCo, an entity that compensates its members (including our investment professionals and certain other employees). As such, the Subordinated Performance Fees are not available to us for distribution or dividends.

(2) We recognized a $292.8 million deferred asset for the HHH Premium, which is deemed for accounting purposes to represent the amount paid to obtain the HHH Services Agreement, when we completed the Howard Hughes Transaction. The HHH Premium is amortized as contra-revenue in management fees on a straight-line basis over a period of 20 years beginning May 5, 2025. 

(3)<br> The operations of PSGP, the general partner of PSLP, are consolidated with our results under GAAP rules, but we have no equity interest in PSGP and, as a result, the gain/loss allocated from PSLP is attributable to non-controlling interest.

(4) Refers to non-recurring expenses that do not represent the ongoing cost of running our business and are not reflective of our operational performance. For the year ended December 31, 2024, includes expenses related to the Strategic Investment and for the year ended December 31, 2025, includes expenses related to the HHH Transaction and the combined transaction. 

(5) We have historically rebated management and performance fees attributable to shares of PSH held by our employees and their affiliates. Such rebates will not continue following the completion of the combined offering, and therefore in order to facilitate period-to-period comparability, we have presented DE for the historical periods presented on a basis that excludes such affiliates fee rebate. 

(6)<br> Prior to or following the completion of the combined offering, shares of our common stock and/or certain interests of PS Partner Group will be granted to the partners in PS Partner Group in exchange for their existing profit-sharing interests. As a result, all cash-based

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profit-sharing distributions which had previously been treated as a compensation expense prior to the completion of the combined offering will be treated as equity distributions subsequent to such offering. Therefore, in order to facilitate period-to-period comparability, we have presented DE for the historical periods presented on a basis that excludes such profit-sharing partner compensation.

(7) Refers to the portion of the fees earned by certain of our funds that serves to reduce the performance fee paid by PSH to PSCM. As such, the amount of the performance fee offset is not available to us for distribution or dividends. 

#### Liquidity and Capital Resources

#### Overview
We have historically financed our operations and working capital through net cash provided by operating activities, primarily from management fees and performance fees, and borrowings under our 2014 line of credit (the "2014 Line of Credit") and the 2021 Line of Credit.

We expect that our cash flow from operations, current cash and cash equivalents will be sufficient to fund our operations and planned capital expenditures and to service our debt obligations for the next twelve months and the foreseeable future.

#### 2014 Line of Credit and 2021 Line of Credit
We entered into the 2014 Line of Credit and 2021 Line of Credit on October 3, 2014, and December 15, 2021, respectively. See Note 6, "Debt Obligations" to our consolidated financial statements included elsewhere in this prospectus.

Each of the 2014 Line of Credit and the 2021 Line of Credit includes provisions that restrict or limit, among other things, the ability of Pershing Square to incur additional indebtedness or to create additional liens or other encumbrances on Pershing Square or the guarantor, Mr. Ackman's, assets, aside from additional financing from Pershing Square as defined in the agreement, financing related to its aircraft as discussed under "Aircraft Loan," and certain other permitted indebtedness. Each of the 2014 Line of Credit and the 2021 Line of Credit requires the guarantor to maintain a net worth of at least $1 billion, exclusive of any interest in Pershing Square. The guarantor is also required to maintain at least $250 million of aggregate liquidity that is free and clear of any and all encumbrances, consisting of liquid assets at the bank, and/or beneficial ownership in Pershing Square or equity in third-party hedge funds with quarterly liquidity or better.

In addition, the 2021 Line of Credit is secured by a pledge and security agreement whereby Pershing Square granted the lender a security interest in Pershing Square's management fees.

Pershing Square and the guarantor have complied with the financial covenants imposed by the 2014 Line of Credit and the 2021 Line of Credit throughout the borrowing period. As of December 31, 2025, $34,800,000 was outstanding under the 2014 Line of Credit, which amount will be paid upon completion of the combined offering, and we had no borrowings under the 2021 Line of Credit.

#### Cash Flows
The following table summarizes our cash flows for the years ended December 31, 2024 and 2025:

---

| | | |
|:---|:---|:---|
| **Pershing Square Holdco, L.P.** | **Pershing Square Holdco, L.P.** | **Pershing Square Holdco, L.P.** |
|  | **For the Year Ended December 31,**  | **For the Year Ended December 31,**  |
| **(in thousands)** | **2024** | **2025** |
| Net cash provided by (used in) operating activities | &nbsp;&nbsp;&nbsp;&nbsp;$294481 | &nbsp;&nbsp;&nbsp;&nbsp;$(134233) |
| &nbsp;&nbsp;Net cash provided by (used in) investing activities | &nbsp;&nbsp;&nbsp;&nbsp;(1558) | &nbsp;&nbsp;&nbsp;&nbsp;(607679) |
| Net cash provided by (used in) financing activities | &nbsp;&nbsp;&nbsp;&nbsp;667399 | &nbsp;&nbsp;&nbsp;&nbsp;(167546) |

---

*Cash Flows from Operating Activities* 

For the year ended December 31, 2024, net cash provided by operating activities was $294.5 million resulting from net income of $2.4 million adjusted for non-cash depreciation and amortization expense, non-cash lease expense, amortization of our LTIP Awards, and profit-sharing partner compensation. Cash flows provided

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by operating activities were also impacted by changes in operating assets and liabilities of $173.8 million, primarily due to an $89.0 million decrease in performance fees receivable, a $62.7 million decrease in amounts due from affiliates, and a $72.7 million increase in accrued compensation and benefits, offset by a $56.1 million decrease in the affiliates fee rebate payable.

For the year ended December 31, 2025, net cash used in operating activities was $134.2 million, resulting from net income of $281.7 million, adjusted for non-cash depreciation and amortization expense, non-cash lease expense, and amortization of our LTIP awards and the deferred HHH Services Agreement premium amounting to $15.7 million, and a $110.7 million unrealized gain on investments held at fair value. Cash flows used in operating activities were also impacted by changes in operating assets and liabilities of $320.9 million, primarily due to a $264.7 million increase in performance fees receivable and a $292.8 million increase related to the deferred asset for the HHH Premium, offset by a $256.0 increase in accrued compensation and benefits.

*Cash Flows from Investing Activities* 

For the year ended December 31, 2024, net cash used in investing activities was insignificant.

For the year ended December 31, 2025, net cash used in investing activities of $607.7 million was primarily related to the Howard Hughes Transaction.

*Cash Flows from Financing Activities* 

For the year ended December 31, 2024, net cash provided by financing activities was $667.4 million consisting of $1.0 billion in proceeds from capital contributions as a result of the Strategic Investment and $16.4 million proceeds from loans, partially offset by $298.7 million of payments made for capital distributions, $80.5 million of loan repayments, and $16.5 million of payments made for offering costs related to the PSUS Shares and equity interests of Pershing Square Holdco, L.P.

For the year ended December 31, 2025, net cash used in financing activities of $167.5 million was primarily related to payments made for capital distributions.

#### Contractual Obligations and Commercial Commitments
The following table presents our contractual obligations and other commitments as of December 31, 2025:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Total** | **Less than**<br>**1 year** | **1-3** <br>**years** | **3-5** <br>**years** | **More than**<br>**5 years**  |
|  | **(in thousands)**  | **(in thousands)**  | **(in thousands)**  | **(in thousands)**  | **(in thousands)**  |
| 2014 Line of Credit | $34800 | &nbsp;&nbsp;&nbsp;&nbsp;$— | $34800 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$—  |
| 2021 Line of Credit | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Interest on 2014 Line of Credit<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;2247  | &nbsp;&nbsp;2074 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;173 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Operating lease obligations | $53726 | $6429 | $12806 | &nbsp;&nbsp;13549 | $20942 |

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(1) Estimated interest payments on our 2014 Line of Credit include estimated future interest payments calculated using 5.96% interest rate in effect as of December 31, 2025. 

#### Critical Accounting Policies and Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amounts of income and expenses during the reported period. While management believes that the estimates utilized in preparing the consolidated financial statements are reasonable and prudent, actual results could differ from those estimates.

An accounting policy is considered to be critical if the nature of the estimates or assumptions is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change, and the effect of the estimates and assumptions on financial condition or operating performance.

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#### Consolidation
We consolidate all subsidiaries in accordance with GAAP and FASB ASC 810, *Consolidation* ("ASC 810"). We consolidate all entities that we control either as the primary beneficiary of a variable interest entity ("VIE") or through a majority voting interest. We identify VIEs we must consolidate by evaluating (1) whether we hold a variable interest in an entity, (2) whether the entity is a VIE, and (3) whether our involvement would make us the primary beneficiary. Entities that do not qualify as VIEs are generally assessed for consolidation as voting interest entities ("VOEs"). Under the VOE model, we consolidate those entities for which we hold a majority voting interest. The determination of whether or not to consolidate a variable interest entity under GAAP, which may include our funds, requires a significant amount of judgment. As none of our funds are currently consolidated, the fees earned from our funds under our investment management agreements are recorded as revenue. If any of our funds become consolidated, the fees earned from the fund would be eliminated in consolidation.

In evaluating whether we hold a variable interest in an entity, fees we receive from the entity (including management fees and performance fees) that are customary and commensurate with the level of services we provide are not considered variable interests where we do not also hold other economic interests in the entity that would absorb more than an insignificant amount of the expected losses or returns of the entity.

If there are entities where we hold a variable interest, we must then determine whether each of these entities qualifies as a VIE and, if so, whether we are the primary beneficiary. In general, a VIE is a corporation, partnership, limited liability company, trust or any other legal structure used to conduct activities or hold assets that: (i) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (ii) has a group of equity owners that lack the power to direct its activities that significantly impact economic performance, or (iii) has a group of equity owners that do not have the obligation to proportionally absorb losses or the right to proportionally receive returns generated by its operations.

In evaluating whether we are the primary beneficiary of a VIE, we evaluate our economic interests in the entity held either directly or indirectly by us. VIEs are consolidated when an entity, as the primary beneficiary, holds a controlling financial interest in the VIE. An enterprise is deemed to have a controlling financial interest in a VIE if a) the enterprise has the power to direct the activities of a VIE that impacts the economic performance and b) the enterprise has the obligation to absorb losses, or the right to receive benefits that could potentially be significant to the VIE.

We have evaluated PSH, our private funds and other investment vehicles, our respective general partners and any affiliated entities, as applicable, for consolidation with us in accordance with ASC 810. As we do not hold economic interests in PSH, our private funds and other investment vehicles that would absorb more than an insignificant amount of their expected losses or returns, we do not hold a variable interest in any of PSH, our private funds and other investment vehicles. We also do not hold a majority of the voting interests in PSH, our private funds and other investment vehicles. As a result, PSH, our private funds and other investment vehicles are not required to be consolidated with us under ASC 810.

Prior to December 20, 2024, we consolidated the accounts of a trust for our corporate aircraft (the "Aircraft Trust") created between us, as trustor, and Delaware Trust Company, as owner trustee, and the Aircraft Trust's assets and liabilities and its results of operations are included in our consolidated financial statements.

We also consolidate the accounts of both PSUS, beginning February 15, 2024, and West Side Services, LLC as they are wholly owned subsidiaries.

#### Equity Method Investments
We recognize investments in entities which we can exercise significant influence over but do not control as equity method investments. Unless the fair value option is elected, under the equity method of accounting, the investor's share of the underlying investment's income or losses is recognized, and the carrying value of the investment is adjusted accordingly.

We have evaluated our investment in HHH and PSGP's investment in PSLP and determined that we exercise significant influence over these investments and have elected to account for these investments at fair value with changes in fair value recorded in earnings.

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#### Revenue Recognition
We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers ("ASC 606"). Revenue is recognized when we transfer promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. ASC 606 requires an entity to: (i) identify the contract(s) with a customer, which includes assessing the collectability of the consideration to which it will be entitled in exchange for the goods or services transferred to the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when the entity satisfies a performance obligation.

Under the terms of the investment management agreements with the funds we manage, we generate revenues from (i) predictable and recurring management fees based on NAV, which are paid on a quarterly basis and (ii) annual performance fees based on NAV appreciation above a high-water mark. Performance fees are considered variable consideration and are therefore constrained and not recognized as revenue until it is probable that a significant reversal will not occur.

Performance fees include both performance fees earned in our capacity as the investment manager of PSINTL and PSH and performance allocations earned by the general partners of PSLP. In contrast to certain fund structures where carried interest allocations crystallize at the end of the life of the fund or upon liquidation, the performance fees and performance allocations we are eligible to receive are payable upon the occurrence of crystallization events, which include, but are not limited to, December 31 of each year, withdrawals from the private funds and PSH's payment of a dividend. We recognize performance fees as revenue upon crystallization of such performance fees. We have concluded that only once crystallization has occurred is it probable that a significant reversal will not occur given the realization of any performance fees and performance allocations are subject to factors outside our control including market volatility.

Until December 31, 2024, we were also eligible to earn a performance allocation from PSVII Master, L.P. However, no performance allocation ever crystallized prior to the cessation of the fund's operations.

Under the terms of the HHH Services Agreement, we also generate revenues from HHH, in exchange for the investment advisory and other services we provide to HHH, consisting of the HHH Base Management Fee and HHH Variable Management Fee. The HHH Variable Management Fee, if any, is calculated following the close of the final business day of each quarter. We have concluded that only once the final business day of the quarter has closed is it probable that a significant reversal of the HHH Variable Management Fee will not occur given the determination is subject to factors outside our control including market volatility.

#### Recent Accounting Developments
Information regarding recent accounting developments and their impact on Pershing Square, if any, can be found in Note 2, "Significant Accounting Policies" of the audited consolidated financial statements included elsewhere in this prospectus.

#### Quantitative and Qualitative Disclosures about Market Risk
Our exposure to market risks primarily relates to PSCM's role as investment advisor to our funds and the impact of movements in the underlying value of their investments. Our management fees and performance fees are the primary sources of revenue that could be impacted. The underlying value of our funds' investments may fluctuate in response to general equity and other market conditions.

We also have exposure to market risks from PSCM's provision of investment advisory and other services to HHH pursuant to the HHH Services Agreement and the impact of changes in the market capitalization of HHH. The HHH Variable Management Fee is the source of revenue that could be impacted. The market capitalization of HHH may fluctuate in response to general equity and other market conditions.

Additionally, interest rate movements can adversely impact the amount of interest that we pay on debt obligations bearing variable rates.

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#### Effect on Management Fees and Performance Fees
PSCM provides investment management services to our funds in exchange for a management fee. Such management fees increase or decrease in direct proportion to the effect of changes in the market value of the related funds.

PSCM also earns a quarterly management fee from our investment in HHH, consisting of the HHH Base Management Fee and HHH Variable Management Fee, in exchange for the investment advisory and other services provided to HHH. The HHH Variable Management Fee increases or decreases in direct proportion to the value of the HHH stock price relative to a reference price, subject to certain adjustments, at the end of each quarter.

PSCM also earns annual performance fees and allocations from our funds based on NAV appreciation above a high-water mark. The performance fees or allocation, if earned, are payable upon the occurrence of crystallization events, which include, but are not limited to, December 31 of each year, withdrawals from our private funds and PSH's payment of a dividend. Changes in the fair value of the funds' investments may materially impact performance fees and allocations depending upon the respective funds' performance to date as compared to the high-water mark.

#### Exchange Rate Risk
As of December 31, 2025, we have foreign currency exchange rate exposure, because (1) our funds may hold investments or debt that are denominated in non-U.S. dollar currencies that may be affected by movements in the rate of exchange between the U.S. dollar and non-U.S. dollar currencies and (2) some of our portfolio companies do business globally and have exposure to currencies other than the U.S. dollar. Our funds often attempt to hedge some of their non-U.S. dollar currency exposure by issuing debt in non-U.S. currencies that the funds are exposed to or by entering into derivative transactions, principally forward contracts and occasionally foreign currency options.

#### Interest Rate Risk
Our exposure to interest rate risk is influenced primarily by changes in interest rates on interest payments related to our debt obligations. We had $34.8 million outstanding under our debt obligations as of both December 31, 2025 and December 31, 2024. See Note 6, "Debt Obligations" to our consolidated financial statements. Management periodically reviews our exposure to interest rate fluctuations and may implement strategies to manage the exposure. As of December 31, 2025, we do not have any interest rate swaps in place for these borrowings. Based on our debt obligations as of December 31, 2025, we estimate that interest expense relating to variable-rate debt would increase by approximately $0.3 million on an annual basis in the event interest rates were to increase one percentage point during the period.

#### Credit Risk
We maintain our cash with a federally insured financial institution. We invest substantially all of our cash in U.S. Treasury money market funds and U.S. Treasury bills. As of December 31, 2025, our cash balances not invested in money market funds were held in Federal Deposit Insurance Corporation insured bank accounts, which at times, may be in excess of federally insured limits.

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#### BUSINESS
Pershing Square is a leading alternative asset manager with approximately $30.7 billion in total assets under management ("AUM") and approximately $20.7 billion in fee-paying assets under management ("Fee-Paying AUM"), of which 96% is permanent capital, as of December 31, 2025. For the year ended December 31, 2025, we generated total revenue of approximately $762.5 million and GAAP net income attributable to Pershing Square Holdco, L.P. of approximately $249.8 million.

#### Permanent Capital
We view the stability of our capital base, substantially all of which is permanent capital, as one of our most important competitive advantages. Permanent capital allows us to take a long-term view and be opportunistic during periods of market volatility, without being exposed to the need to raise capital by selling assets to meet redemptions during such periods. We expect to continue to drive significant organic AUM growth by implementing our investment strategy and compounding our capital at high rates of return, in contrast to other asset managers whose growth principally relies on fundraising to maintain and grow fee-paying assets.

We believe our permanent capital AUM also enables superior, long-term investment returns and produces a financial profile for our business characterized by steady, predictable and recurring management fees because our results are less sensitive to the market for raising capital. Our financial profile further benefits from performance fees, earned and paid annually, contingent only on our funds' mark-to-market appreciation above an annual high-water mark, rather than episodic and unpredictable realization events and the need to generate realized returns in excess of a preferred return or hurdle rate.

Permanent capital has been and is expected to continue to be a highly attractive talent attraction and retention tool, enabling us to hire and retain top analysts for our investment team and other high-quality employees throughout our company. Permanent capital and our long-term investment horizon are also excellent recruitment tools when our portfolio companies seek to hire experienced CEOs who prefer the stability and backing afforded by a significant long-term shareholder who is not required to seek an exit for its holdings due to investor redemptions or the necessity to exit due to their finite-lived funds.

#### Our Investment Strategy and Team
Our investment strategy has proven to be highly scalable and profitable because fewer professionals are required to manage a concentrated portfolio consisting of long-term holdings with limited trading activity. Over the last 22 years, we have developed the organizational talent and systems capable of managing an asset base many times larger than our current AUM.

We employ a disciplined, research-intensive approach to fundamental value investing to preserve and grow our permanent capital AUM at high rates of return using a set of core investment principles and opportunistic asymmetric hedges. From time to time, we may choose to complement our organic growth by selectively launching new permanent capital funds and other vehicles that leverage our brand and core competencies to create large 'overnight' (after the completion of a new offering or negotiated transaction) increases in our capital base without the requirement for significant new investment in personnel, infrastructure, and operating costs. The HHH Transaction and the combined offering are good examples of our growth strategy.

Founded in 2003, we are led by our Founder and Chief Executive Officer, William A. Ackman, who has spent 34 years in the alternative asset management industry. Mr. Ackman is supported by an experienced investment team who have an average of 15 years' experience in the industry. Our investment team is highly aligned with our portfolio companies, fund investors and our stockholders due to, among other reasons, the $5.8 billion (as of December 31, 2025) invested by our employees and their affiliates in our funds and HHH, our approach to performance compensation, and our employee ownership of our company. We are headquartered in New York City and had 44 employees as of December 31, 2025.

In our core investment strategy, we seek to acquire long-term, large minority stakes in high-quality, predominantly North American-listed, large-capitalization companies at attractive valuations. We seek investments in companies with simple, predictable, free-cash-flow generative businesses, strong financial profiles, and exceptional management and governance in industries with significant barriers to entry and limited exposure to

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extrinsic factors we cannot control. We look for opportunities to assist portfolio companies in accelerating growth, increasing efficiency, improving capital allocation, managing through challenges and otherwise improving performance in order to generate long-term value.

On May 5, 2025, we completed the Howard Hughes Transaction, in which we acquired 15% of the shares outstanding of HHH (for a total interest in HHH of 47% including shares held by our core funds). We provide HHH with investment advisory, corporate development, transaction execution and capital markets advisory services to support HHH's new diversified holding company strategy. In consideration of our services, HHH pays us the HHH Base Management Fee and the HHH Variable Management Fee (each as defined below). See "—Advisory Fees and Compensation—HHH Fees" for more information.

We complement our investment strategy by opportunistically utilizing hedges both to protect our funds' portfolios against specific macroeconomic risks and to capitalize on market volatility. We typically structure our hedges using asymmetric instruments, such as options and credit default swaps, which offer the opportunity for large gains if potential risks occur without exposing our funds to significant costs or meaningful losses if such risks do not occur. Historically, we have reinvested the profits from these asymmetric hedges in existing portfolio positions and new investments during periods of market disruption when valuations are generally low. Our asymmetric hedging strategy has proven to be a substantial contributor to our investment strategy's long-term performance.

#### Our Track Record
The graph below illustrates the cumulative net returns that an investor who invested in our first core fund, PSLP, at its inception on January 1, 2004 and transferred its capital account to our first core permanent capital fund, PSH, at its launch on December 31, 2012 would have received, as compared to the returns such investor would have received had it invested in the S&P 500 during the same time period.

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#### Pershing Square Cumulative Net Returns vs. S&P 500 <br>

#### Since Inception Through December 31, 2025
![](ny20040230x14_linechartx1.jpg) <br>

(1) Represents the cumulative net returns assuming an investor had invested in PSLP at its inception on January 1, 2004 and converted to PSH on December 31, 2012, after performance fees, management fees and other expenses incurred by each fund. See "Business—Advisory Fees and Compensation" for a description of applicable performance fees and management fees. Illustrates the hypothetical returns of an investor assuming these dates of investment in such funds. **Actual performance returns of each investor in PSLP and/or PSH during this timeframe may have varied (in some cases, materially) and are dependent on a number of factors, including, but not limited to, the timing of an investor's investment. For example, if an investor had invested in PSLP at a later date and/or had not converted from PSLP to PSH on December 31, 2012, its respective returns might have been lower.** Illustrates the past performance of PSLP and PSH, and past returns are not indicative of future performance. **This performance information is presented in connection with the offering of our common stock and is for illustrative purposes only. It is not the performance record of PSUS and should not be considered a substitute for the performance of PSUS. There can be no assurance that any of our funds will achieve comparable or greater results in the future, or that any of our funds will be able to implement their investment strategy or achieve their investment objective.** Our funds' investments may be made under different economic conditions and may include different underlying investments in the future. Furthermore, PSLP, PSH and the other funds and accounts managed by us prior to the combined offering are not registered under the 1940 Act, unlike PSUS, and, therefore, none of them are subject to the investment restrictions, leverage and derivative restrictions, diversification requirements and other regulatory requirements imposed on registered investment companies by the 1940 Act and on regulated investment companies by the U.S. Internal Revenue Code of 1986, as amended (the "Code"). If such funds or accounts had been registered under the 1940 Act and/or operated as regulated investment companies under the Code, their respective returns might have been lower and their ability to undertake certain transactions or investments may have been restricted. See the accompanying PSUS Prospectus for additional information about PSUS and the risks associated with an investment in PSUS Shares. The historical performance information presented herein does not reflect the impact of any sales load or transaction fees. 

(2) Represents the multiple of invested capital assuming an investor had invested in PSLP at its inception on January 1, 2004 and converted to PSH on December 31, 2012 equal to the Net Asset Value, after performance fees, management fees and other expenses incurred by each fund, divided by cumulative invested capital. 

(3) The S&P 500 is an unmanaged capitalization-weighted index that measures the performance of the large-capitalization segment of the U.S. market. The index includes 500 leading U.S. stocks representing all major industries. The S&P 500 does not reflect any fees, expenses or sales loads. It is not possible to invest directly in the S&P 500 index. The volatility of the S&P 500 presented may be materially different from that of the performance of our funds. In addition, the S&P 500 employs different guidelines and criteria than our funds; as a result, the holdings in our funds may differ significantly from the securities that comprise the S&P 500. The S&P 500 allows for comparison of our funds' performance with that of a well-known, appropriate and widely recognized index; the S&P 500 is not intended to be reflective or indicative of our funds' past or future performance. 

(4) Represents the cumulative net returns from investing in the S&P 500 with dividend reinvestment. Illustrates the hypothetical returns of an investor assuming these dates of investment in the S&P 500. Actual performance returns of each investor in the S&P 500 during this timeframe may have varied (in some cases, materially) and are dependent on a number of factors, including, but not limited to, the timing of an investor's investment. If an investor had invested in the S&P 500 at a later date, for example, its respective returns might have been lower. 

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(5) Represents the multiple of invested capital from investing in the S&P 500 with dividend reinvestment equal to total fair value divided by cumulative invested capital. 

(6) The three bear markets of the last 22 years were the global financial crisis in 2008; the COVID-19 pandemic in 2020; and the recent elevated interest rate environment in 2022. Our asymmetric hedging strategy has contributed to our substantial outperformance versus the S&P 500 during these bear markets.

As depicted in the chart above, the history of our firm may be thought of as comprising three distinct phases. In the first 12 years, our approach evolved from an initial period of transactional activism, in which we executed on value-creation opportunities by catalyzing corporate events, to a form of more "quiet" long-term corporate engagement as we established a reputation for helping portfolio companies create value. We went through a challenging period of underperformance from August 2015 to December 2017, after which we made a number of strategic changes, including ending active fundraising for our two open-ended private funds, Pershing Square, L.P. ("PSLP") and Pershing Square International, Ltd. ("PSINTL").

In January 2018, we began our "permanent capital era" by focusing on growing our permanent capital base through generating and compounding long-term returns and renewing our commitment to our core investment principles. On May 31, 2024, we sold a 10% interest in our business for $1.05 billion to a consortium of strategic investors (the "Strategic Investors"), which included institutions, family offices, and alternative asset management industry leaders (the "Strategic Investment"). In connection with the Strategic Investment, we completed an internal reorganization of our ownership structure pursuant to which PS Holdco became the parent company of PSCM. On May 5, 2025, we completed the Howard Hughes Transaction representing another milestone in our permanent capital strategy.

#### Our Funds and Investment Vehicles
We currently manage three primary investment funds, which we refer to as our existing core funds. Our fund investors include retail investors, high net worth individuals, family offices, funds of funds, and institutional investors. Our largest vehicle, Pershing Square Holdings, Ltd. ("PSH"), is a FTSE 100- listed, closed-end investment company publicly traded on the London Stock Exchange. With approximately $15.0 billion in Fee-Paying AUM, PSH accounts for approximately 73% of our total Fee-Paying AUM as of December 31, 2025. In addition, we manage two private funds, PSLP and PSINTL, with approximately $1.5 billion and $409 million in AUM, respectively, and $648 million and $225 million in Fee-Paying AUM, respectively, in each case, as of December 31, 2025. We no longer market our private funds to investors, but we keep the private funds open for employees and long-term investors of Pershing Square.

Certain of the existing investors in our private funds have agreed to redeem an aggregate of $335 million of their interests in the private funds (determined as of the time of this disclosure based on the private funds' net asset value as of February 28, 2026) and apply eligible net proceeds from such redemption to participate in the combined private placement. The final net asset value used to determine the value at which interests in the private funds will be redeemed will be determined as of a redemption date prior to the completion of the PSUS IPO, and therefore, the amount set forth above will fluctuate as a result of any subsequent changes in net asset value until such redemption date.

Our core funds each have a similar investment program and generally invest in the same assets in similar proportions, subject to regulatory, tax, liquidity and other considerations.

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#### Overview of Our Existing Core Funds, HHH and PSUS<br>

#### As of December 31, 2025 (except in the case of PSUS)
![](ny20040230x14_table01x1.jpg)<br>

(1) As of December 31, 2025, PSH's AUM includes bond proceeds of $2.3 billion and €1.15 billion (translated into USD at the prevailing exchange rate at the reporting date). As of December 31, 2025, PSH's Fee-Paying AUM does not reflect the bonds outstanding.

(2)<br> As of December 31, 2025, HHH's AUM reflects its market capitalization as of such date plus its net mortgages, notes, and loans payable as reported in its Quarterly Report on Form 10-Q for the quarter ending September 30, 2025.

\* In the case of AUM, represents the assumed aggregate offering sizes in the PSUS IPO and PSUS Private Placement, including amounts invested by us, and in the case of Fee-Paying AUM, represents the assumed aggregate offering sizes in the PSUS IPO and PSUS Private Placement, excluding amounts invested by us.

Following the combined offering, our core funds will include PSUS, which we expect to be our flagship NYSE-listed permanent capital vehicle, which will also pursue our core investment strategy and will represent a material expansion of our permanent capital AUM. As a registered and regulated investment company, PSUS will be subject to certain restrictions pursuant to the 1940 Act and the Code, including investment, leverage and derivative restrictions and diversification requirements. We do not anticipate that compliance with these restrictions will materially impede the ability of PSUS to pursue our core investment strategy. See "Risk Factors—Risks Relating to Our Funds and HHH and Our Investment Strategy—*The PSUS IPO will cause a material portion of our Fee-Paying AUM to consist of registered investment company assets.*"

#### Our Management and Performance Fees
Under the terms of the investment management agreements with the funds we manage, we generate revenues from (i) predictable and recurring management fees based on Net Asset Value, which are paid on a quarterly basis and (ii) other than with respect to PSUS, we receive annual performance fees based on NAV appreciation above a high-water mark. Generally, we pay our investment professionals and certain other employees our realized performance fees in excess of an amount allocated to us in the form of a preferred entitlement that we refer to as "Preferred Performance Fees." Preferred Performance Fees are earned from the first five percentage points of fund returns, net of management fees, above the applicable high-water mark from certain core funds and subject to certain other offsettable fees.

To the extent realized performance fees are insufficient to pay us some or all of the Preferred Performance Fee, the unpaid portion accrues to subsequent crystallization periods until paid in full. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Components of Our Results of Operations—Income—Performance Fees—Allocation of Performance Fee Revenue" for additional information. We believe this Preferred Performance Fee arrangement results in recurring revenue that is less volatile and more predictable than conventional performance fee arrangements employed by other alternative asset managers, while enabling us to allocate substantial performance fees to compensate, attract and retain investment professionals and certain other employees.

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Under the terms of the HHH Services Agreement, we also generate revenues from HHH, in exchange for the investment advisory and other services we provide to HHH, consisting of (i) a quarterly base fee of $3,750,000 (the "HHH Base Management Fee") and (ii) a quarterly variable fee of 0.375% of the value of the HHH stock price relative to a reference price determined in accordance with the agreement (the "HHH Variable Management Fee" and together with the HHH Base Management Fee, the "HHH Fees"), in each case, subject to annual adjustments for inflation based on the Personal Consumption Expenditures Price Index, Excluding Food and Energy, as reported by the Bureau of Economic Analysis (the "Core PCE Price Index"). See "—Advisory Fees and Compensation—HHH Fees" for more information.

Since our founding in 2003, we have also raised capital through seven single-name, co-investment special purpose vehicles ("SPVs") to increase economic exposure to certain investments. For example, in September 2021, we raised approximately $1.1 billion through PS VII Master, L.P. and its affiliated funds (collectively, "PSVII") for our funds' investment in Universal Music Group.

#### Our Core Investment Strategy
Our core investment strategy involves acquiring large minority stakes in high-quality, predominantly North American-listed, large-capitalization growth companies at attractive valuations during periods in which we believe they have underperformed their potential and/or when we believe they are undervalued because the market underestimates their potential or overestimates the impact of certain negative factors on their businesses. At any given time, we intend for our core funds to own a concentrated portfolio of such positions with the expectation of holding each position for the long term. We historically have not concentrated such positions in any one or group of industries.

This investment approach enhances our ability to operate efficiently as fewer investment professionals are required to manage a concentrated portfolio consisting of long-term holdings with limited trading activity. Our long-term investment horizon also increases our influence over our portfolio companies, provides stability and support for management teams and boards of directors of our portfolio companies, and serves as an excellent recruitment tool when our portfolio companies seek to hire world-class senior executives, all of which we believe help to drive our investment performance. We constructively engage with management teams and boards of directors of our portfolio companies with a goal of accelerating growth, increasing efficiency, improving capital allocation, managing through challenges, and/or better positioning companies which have underperformed or have unrecognized sources of value generation. As part of our corporate engagement, our investment professionals have from time to time served on the boards of our portfolio companies. Historically, we have shown that we can achieve meaningful influence over companies in which we invest and assist them in creating long-term value with ownership stakes that we have acquired at a lower price than the substantial premium that is typically required to be paid to obtain control of a company. For example, after initiating our investment in Chipotle Mexican Grill, Inc. in 2016, we were able to add new directors to the board, help identify and retain new senior leadership, and drive key strategic initiatives to execute a turnaround of the company.

Our collaborative investment process is an important competitive advantage of our firm. Our idea generation process yields more opportunities than we utilize, which allows us to allocate capital to only what we believe to be our best ideas. Investments are originated through a wide range of sources, including our proprietary library in which we continuously track, update and review hundreds of investments that we have considered over time. Our investment professionals have a working knowledge of a large number of companies and are the primary sources of our investment ideas. Each investment idea typically goes through an initial due diligence process conducted by a two-member investment team, at least one of whom typically has relevant industry expertise. The dedicated team conducts initial due diligence, reviews company and industry research, interviews industry experts, and does financial analysis to determine our initial view of a company's business quality and intrinsic value.

Once sufficient work is completed and we determine that an investment idea meets a threshold of potential viability as an investment, Mr. Ackman, our Portfolio Manager, and/or Mr. Israel, our Chief Investment Officer, also conduct due diligence on the subject company. All investment proposals are formally presented and discussed in meetings with the investment team. We typically begin to acquire positions in approved ideas immediately upon investment team approval. Because compensation for our investment professionals is based on overall fund performance rather than the performance of any specific investment, our investment professionals are incentivized to deliver long-term, overall fund performance.

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We complement our core investment strategy by seeking to identify and execute upon asymmetric hedges both to protect our funds' portfolios against specific macroeconomic risks and to capitalize on market volatility. In order to generate asymmetric investment ideas, our investment professionals continuously analyze macroeconomic, political, and other global developments, which has the additional benefit of providing insights into macroeconomic considerations that are relevant for our current and potential future portfolio company investments. We believe that our individual company research with respect to our current and potential future portfolio company investments also yields variant macroeconomic insights, making our asymmetric hedging strategy highly synergistic with the research-intensive approach of our core investment strategy.

We believe our core investment strategy and commitment to always being a good partner to our investors have been responsible, in significant part, for the successful growth of our business; however, our strategy and approach to doing business comes with certain risks.

While we believe the concentrated portfolios of our core funds create operational efficiencies, they necessarily involve more exposure for our funds to the performance of each investment, with the attendant risk that a material loss in any one investment position could have a material adverse impact on the NAV of our funds and impact our results.

While our core investment strategy of acquiring non-controlling stakes generally enables us to avoid paying a control premium and gives us substantial influence over our portfolio companies, we face the risk that a portfolio company may make business, financial or management decisions contrary to our expectations or with which we do not agree or otherwise act in a manner that does not serve our interests. In the event a portfolio company were to resist or act against our influence, we may be forced to reconsider the investment value proposition, including whether to take a more engaged role in effectuating corporate change or exit the investment. For a discussion of other risks associated with our core investment strategy, see "Risk Factors—Risks Relating to Our Funds and HHH and Our Investment Strategy."

We have historically taken steps to benefit our investors that in the short term can impact the fees we collect. For example, in an effort to address the persistent discount at which PSH trades to NAV, in February 2024, we expanded the fee offset arrangement that reduces the performance fees we receive from PSH as a function of the fees we receive from other funds we manage, including the management fees that we will receive from PSUS upon completion of the combined offering, in order to increase demand for PSH shares by making it a more attractive fund for investors. The goal of the revised fee offset arrangement is to eventually eliminate the incentive fees PSH pays by increasing the fee income from growing other existing and new funds under management. Similarly, in connection with the Howard Hughes Transaction, we reduced the management fees payable to PSCM by each of the core funds by an amount equal to the HHH Fees multiplied by the percentage of HHH's shares outstanding held by each such fund attributable to its fee-paying capital. While such extra-contractual givebacks to our investors have an economic cost to us, we believe that our reputation for being a good partner to our investors, even if not required by the governing fund contracts, has been and will continue to be a long-term driver of Pershing Square Inc.'s long-term intrinsic value.

#### HHH's Diversified Holding Company Strategy
On May 5, 2025, we completed the Howard Hughes Transaction pursuant to which we intend to transform HHH, a long-term holding of our core funds, into a diversified holding company. As a first step, on December 17, 2025, HHH entered into an agreement to acquire Vantage, a privately held specialty insurance and reinsurance holding company, for approximately $2.1 billion in cash.

The Vantage Acquisition is expected to close in the second quarter of 2026, subject to customary regulatory approvals and closing conditions. We believe that the Vantage Acquisition will anchor HHH's transformation into a diversified holding company by combining our investment capabilities with Vantage management's insurance expertise and operations, enabling HHH to build and grow a profitable insurance company, which has the potential to serve as an important source of long-term value creation for HHH and our shareholders. HHH has also announced that, over time, it intends to acquire controlling ownership of high-quality, durable growth public and private operating companies, while continuing to invest in and grow its MPC real estate business.

PSCM intends to manage the assets of Vantage's insurance company subsidiaries in accordance with applicable regulatory and rating agency requirements. Subject to applicable law, PSCM plans to invest such assets primarily in fixed income securities (including U.S. Treasury bills) and common stocks of public companies in a manner consistent with the investment strategy of our core funds. Accordingly, we believe

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PSCM's strategy for managing the assets of Vantage's insurance company subsidiaries will be highly synergistic to our core funds' investment strategy and our own cash management practices. PSCM also plans to manage the assets of Vantage's insurance company subsidiaries in a low-leverage fashion, meaning that they will write relatively small amounts of premium relative to capital, with the result that they will likely have lower ratios of invested assets to capital than a typical U.S. property-and-casualty insurance company. We believe this low-leverage approach will allow Vantage's insurance company subsidiaries to prudently invest a relatively higher percentage of their respective assets in common stocks, as opposed to fixed income securities, compared with a typical U.S. property-and-casualty insurance company. Accordingly, we expect Vantage's insurance company subsidiaries will be able to generate higher returns on their assets compared with more highly leveraged U.S. property-and-casualty insurance companies, which generally derive their profits principally from underwriting and a predominantly fixed-income investment strategy.

We will support HHH's new diversified holding company strategy by providing HHH with investment advisory and other services that leverage our existing core competencies. For example, we believe the idea generation and diligence processes we utilize in our core investment strategy, as well as our extensive track record and reputational equity from working closely with portfolio companies and institutional investors throughout our history, will allow us to help HHH successfully pursue privately negotiated control investments. In addition, we believe the variant insights from our asymmetric hedging strategy, which has proven to be a substantial contributor to our long-term investment performance, will allow us to help protect HHH against macroeconomic risks and to capitalize on market dislocations. We believe our investment acumen, transactional experience and operational infrastructure will assist us in creating long-term value at HHH.

Although we expect the investment strategy of HHH will differ in some respects from that of our core funds, including, for example, with respect to the Vantage Acquisition and acquisition of controlling ownership stakes in operating companies, we anticipate that the type of companies in which HHH will acquire controlling interests will be sufficiently similar to the type of companies in which our core funds invest (i.e., companies with simple, predictable, free-cash-flow generative businesses), just of substantially smaller size. In addition, we expect to invest the assets of Vantage's insurance company subsidiaries in fixed income securities and common stocks of public companies in a manner consistent with the investment strategy of our core funds. As such, we do not anticipate that the Howard Hughes Transaction will require us to materially increase our fixed costs or headcount or disrupt the operation of our core funds.

There are challenges and risks inherent in the Howard Hughes Transaction. Transforming HHH into a diversified holding company will be a new and complex process for us, and there can be no assurance that the anticipated benefits of the transaction will be fully realized. For a discussion of risks associated with the Howard Hughes Transaction, see "Risk Factors."

#### Our History and Evolution

Over time, our approach began to evolve toward deeper long-term active operating engagements. For instance, in 2010, Mr. Ackman joined the board of directors of General Growth Properties, Inc. ("GGP") and led a financial restructuring with the perspective and influence of a major common stockholder, which included the identification and recruitment of new management for the company. In 2012, we won a proxy fight for control of the board of directors of Canadian Pacific Railway (now known as Canadian Pacific Kansas City), replaced the substantial majority of the incumbent board with our nominees, and then proceeded to recruit a leading industry veteran to lead a turnaround of the company. In 2016, our affiliates joined the board of Chipotle Mexican Grill, Inc. in the midst of a food safety crisis and assisted the company in recruiting a new CEO and senior leadership

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team who executed a successful turnaround. We believe that these and other such corporate engagements and our record of recruiting experienced senior leadership have allowed us to steadily establish a reputation and credibility as a preferred partner to portfolio companies and their shareholders, especially during challenging periods at these businesses.

Prior to 2014, we primarily raised capital through private funds with periodic redemption rights. One historical impediment to our strategy of long-term corporate engagements was the open-ended nature of our capital base where the liquidity needs of our shorter-term fund investors were inconsistent with our long-term investment horizon. In 2014, PSH converted into a closed-end investment company and listed its shares on Euronext Amsterdam in a $2.9 billion IPO, the largest European IPO of 2014, to become our first publicly traded permanent capital fund with $6.2 billion in AUM at the completion of the offering (PSH subsequently listed on the London Stock Exchange in May 2017 and recently delisted from Euronext Amsterdam in January 2025). At that time, as of October 1, 2014, 34% of our assets under management for our funds and other investment vehicles was in the form of permanent capital.

In 2015, we made an investment that led to a period of poor investment performance, during which our investment strategy's annual returns substantially underperformed that of the S&P 500. The loss on this one investment had a disproportionate effect on our overall fund performance because market participants sold and/or shorted our portfolio company holdings and attempted to cause a short squeeze by buying stock in the one company we were short. They did so because they believed, correctly as it turned out, that the occurrence of a large publicly visible loss on one high-profile investment would trigger investor redemptions and require us to liquidate positions in our two open-ended funds, PSLP and PSINTL, which comprised approximately two-thirds of our assets under management at that time.

In 2017, we reflected on the root causes of our underperformance and formulated a turnaround strategy, which we believe has been largely responsible for our funds' track record of substantial outperformance since that time. Our turnaround strategy consisted of four pillars: (1) exiting the problematic investments, which included exiting activist short selling as an investment strategy (though short selling had never been a material component of our investment strategy); (2) restructuring Pershing Square into a smaller investment-centric organization; (3) stabilizing our capital base by the purchase by our Founder and other employees of a large minority ownership interest in PSH; and (4) reinforcing the implementation of our core investment principles.

Early in 2018, we announced that we would no longer seek to raise capital for our two open-ended funds. This decision to focus on PSH and permanent capital was largely driven by our experience in our challenging period. Through compounded returns, net of dividends and stock buybacks of 29.5% of shares outstanding, PSH has grown organically to reach $15.0 billion in Fee-Paying AUM as of December 31, 2025. Including the Fee-Paying AUM of HHH, permanent capital represents 96% of our Fee-Paying AUM as of December 31, 2025. Permanent capital will represent an even greater portion of our Fee-Paying AUM following the completion of the PSUS IPO.

At the time we launched PSH, we believed the ability to earn a performance fee was critical to our ability to attract and retain talent. We chose a listing venue outside of the United States for PSH where applicable regulatory requirements would not preclude us from earning a performance fee. Organizing PSH as a non-U.S. fund listed outside of the United States has presented certain challenges. We believe that certain tax attributes of PSH make it an unattractive investment for many taxable U.S. investors. Furthermore, applicable regulatory restrictions both limit the ability of many U.S. investors to own PSH and inhibit our ability to market PSH to U.S. investors. We believe that these factors have caused PSH to trade at a discount to its NAV.

The establishment of PSUS represents the next evolution of our strategy. As our flagship NYSE-listed permanent capital vehicle which charges only a management fee and without the regulatory marketing limitations, U.S. ownership restrictions, and unfavorable tax characteristics of PSH for U.S. taxpayers, we believe that PSUS will not experience the challenges inherent to PSH and other offshore closed-end investment companies.

Our shift to a permanent capital strategy has enabled us to minimize marketing and fundraising efforts, allowing our investment professionals to dedicate substantially all of their business time and attention to the identification, monitoring and oversight of our portfolio companies. Our permanent capital base has enabled us to invest with a long-term ownership horizon as we are no longer beholden to the risks of short-term investor capital flows, which we experienced during our challenging period. Our last activist investment was initiated in 2016, and our investment approach is now characterized by constructive and productive corporate engagements. By exiting short selling as an investment strategy, our funds are also no longer exposed to the risk of a short squeeze.

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We believe the benefits from our investment strategy's evolution are significant, as our current approach focused on long-term constructive engagement and investment in high-quality large-capitalization companies is highly scalable, allowing us to continue to generate high returns and compound our assets and reputational equity over the long-term.

#### Our Market Opportunity
As alternative asset management remains a broadly attractive and growing industry, we believe our differentiated business model positions us to capitalize on favorable market trends:

#### Greater Equity Market and Single-Name Stock Price Volatility
In recent years, there has been significant equity market and single-name stock price volatility, even for large publicly traded companies. We believe this volatility is due to several factors. Index funds have increasingly become the largest effectively permanent owners of a growing percentage of the market capitalization of public companies. This large index ownership has increased the impact that short-term, highly leveraged investors who rapidly buy and sell securities can have on price discovery as such investors now comprise a growing percentage of the daily trading of companies. Because these shorter-term investors generally have a low tolerance for mark-to-market losses, this creates large amounts of stock price volatility for even the largest companies that disappoint or surprise investors. Unexpected macroeconomic data and unanticipated geopolitical events have also contributed to market volatility. We believe such volatility is beneficial to concentrated, long-term, fundamental value investors that manage permanent capital as it can create attractive buying opportunities coupled with a high degree of share price liquidity.

#### Democratization of Alternative Investments
Individual investors are expected to be the fastest growing segment among investors allocating to alternative assets and are projected to increase their alternatives allocations from $4 trillion to $13 trillion over the 10-year period from 2022 to 2032. High minimum initial investment commitment requirements and limited liquidity have historically been and in some cases remain barriers for individual investors to invest in alternative investments. We believe we are well positioned to benefit from the democratization of alternative investments as PSUS will not have any minimum investment requirements, and retail investors, following the PSUS IPO, will be able to purchase PSUS Shares directly on the NYSE.

#### Retail Investor Growth in Public Equity Market Participation
Direct ownership of stocks increased from 15% to 21% of U.S. families between 2019 to 2022, the largest change on record, according to the U.S. Federal Reserve. PSUS, which we expect will be our flagship NYSE-listed permanent capital vehicle, will be our first fund marketed to both U.S. retail and institutional investors.

#### Our Competitive Strengths

#### Track Record of Outperformance
We have a strong track record of low-correlated outperformance and resilience driven by investment discipline, constructive engagement with our portfolio companies, and profits from our unique asymmetric hedging strategy. Our core investment strategy has exhibited relatively low market correlation to the broader equity market (i.e., average returns of the investment strategy, net of fees, have been higher than the broader equity market during times in which the returns of the broader equity market declined and similar to the broader equity market during times in which the broader equity market increased). Our permanent capital strategy has generally proven to be defensive in down markets, outperforming the S&P 500 during the global financial crisis, the COVID-19 pandemic, and the recent elevated interest rate environment, as illustrated in the graph above titled "Pershing Square Cumulative Net Returns vs. S&P 500." We have underperformed the S&P 500 in certain years, for example, during our challenging period from 2015 to 2017, and in 2024 when our performance lagged the overall performance of the S&P 500. Our long-term goal is to substantially outperform market indexes; however, we do not expect to outperform the stock market each year.

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The chart below presents the annualized net returns an investor who invested in PSH would have experienced from January 1, 2018, the beginning of our current permanent capital era, through December 31, 2025, as compared to the returns such investor would have received had it invested in the S&P 500 during the same time period.

#### Pershing Square Permanent Capital Era Annualized Net Returns vs. S&P 500 <br>

#### From January 1, 2018 Through December 31, 2025
![](ny20040230x14_barchart0x1.jpg)<br>

(1) Represents the annualized net returns from investing in PSH, after performance fees, management fees and other expenses incurred by the fund. See "—Advisory Fees and Compensation" below for a description of applicable performance fees and management fees. Illustrates the past performance of PSH, and past returns are not indicative of future performance. If the annualized net returns from investing in PSLP and PSINTL from January 1, 2018 through December 31, 2025, after performance fees, management fees and other expenses incurred by such funds, were also included, the annualized net returns of our core funds, on a weighted-average aggregate basis, would have been 22.3%, representing 800 bps of outperformance per annum versus the S&P 500. The lower net returns of our core funds, on such aggregate basis, versus of PSH are primarily attributed to the higher percentage payable as performance fees by PSLP and PSINTL, as compared to PSH, and the fact that PSLP and PSINTL do not employ leverage in the form of low-cost, long-term debt in pursuing our core investment strategy, unlike PSH. **This performance information is presented in connection with the offering of our common stock and is for illustrative purposes only. It is not the performance record of PSUS and should not be considered a substitute for the performance of PSUS. There can be no assurance that any of our funds will achieve comparable or greater results in the future, or that any of our funds will be able to implement their investment strategy or achieve their investment objective.** Our funds' investments may be made under different economic conditions and may include different underlying investments in the future. Furthermore, PSH and the other funds and accounts managed by us prior to the combined offering are not registered under the 1940 Act, unlike PSUS, and, therefore, none of them are subject to the investment restrictions, leverage and derivative restrictions, diversification requirements and other regulatory requirements imposed on registered investment companies by the 1940 Act and on regulated investment companies by the Code. If such funds or accounts had been registered under the 1940 Act and/or operated as regulated investment companies under the Code, their respective returns might have been lower and their ability to undertake certain transactions or investments may have been restricted. See the accompanying PSUS Prospectus for additional information about PSUS and the risks associated with an investment in PSUS Shares. The historical performance information presented herein does not reflect the impact of any sales load or transaction fees. 

(2) The S&P 500 is an unmanaged capitalization-weighted index that measures the performance of the large-capitalization segment of the U.S. market. The index includes 500 leading U.S. stocks representing all major industries. The S&P 500 does not reflect any fees, expenses or sales loads. It is not possible to invest directly in the S&P 500 index. The volatility of the S&P 500 presented may be materially different from that of the performance of our funds. In addition, the S&P 500 employs different guidelines and criteria than our funds; as a result, the holdings in our funds may differ significantly from the securities that comprise the S&P 500. The S&P 500 allows for comparison of our funds' performance with that of a well-known, appropriate and widely recognized index; the S&P 500 is not intended to be reflective or indicative of our funds' past or future performance. 

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#### Permanent Capital with a Capital-Light, High-Growth Business Model
We believe that we are the only publicly traded alternative asset manager with permanent capital comprising nearly all of our AUM, with a small single-digit percentage of our Fee-Paying AUM in our two private funds comprised of investors who have invested with us for many years, typically a decade or more. We define "permanent capital" as capital that is not subject to withdrawal or redemption at the option of the fund investor or stockholder. In contrast to the non-traded "perpetual" capital vehicles sponsored by other alternative asset managers, PSH does not have any redemption provisions or mandatory share repurchase requirements that are at the election of the fund investor or stockholder, and has comparatively low distributions as a percentage of NAV. Similarly, any return of capital by HHH, a NYSE-listed operating company, whether in the form of dividends or share repurchases, would be made only at the discretion of its board of directors and not at the election of its stockholders, and HHH intends to retain all of its capital for long-term investment. As of December 31, 2025, 96% of our Fee-Paying AUM is permanent capital. Permanent capital will represent an even greater portion of our AUM following the completion of the PSUS IPO and the continued growth of HHH.

#### Composition of Fee-Paying AUM <br>

#### As of December 31, 2025
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We view the stability of our capital base, substantially all of which is permanent capital, as one of our most important competitive advantages. Permanent capital allows us to take a long-term view and be opportunistic during periods of market volatility without being exposed to the need to raise capital by selling assets to meet redemptions during such periods. We expect to continue to drive significant organic AUM growth by implementing our investment strategy and compounding our capital at high rates of return, in contrast to other asset managers whose growth relies principally on fundraising to maintain and grow their managed assets. We believe our permanent capital enables us to generate superior, long-term investment returns and produces a financial profile for Pershing Square that is characterized by steady, predictable and recurring fees. Because we do not require the headcount and other substantial costs required of a large fundraising operation, we can achieve greater operating leverage as our AUM can grow without the need to increase the size of our organization.

Permanent capital has also been and is expected to continue to be a highly attractive talent attraction and retention tool, allowing us to hire and retain top analysts for our investment team and other high-quality employees throughout our company. Permanent capital and our long-term investment horizon are also excellent recruitment tools when our portfolio companies seek to hire experienced senior executives who prefer the stability and backing afforded by a significant long-term shareholder who is not required to seek an exit for its holdings due to investor redemptions or investment holding periods due to fund life considerations.

Our permanent capital base is managed through durable contractual arrangements. Our investment management agreement with PSH can only be terminated with the approval of 66 2/3% of the voting shares and 66 2/3% of the public shares of PSH. Because our Founder and certain of our other employees, together with their affiliates, directly or indirectly hold 28% of the outstanding public shares of PSH at December 31, 2025, a decision to terminate the investment management agreement as of such date would have required the affirmative approval of 93% of the remaining outstanding public shares. Moreover, as described in "Certain Relationships and Related Person

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Transactions—Other Transactions—Our Right to Acquire PSH Shares," we will have the right to acquire the shares of PSH held by our Founder and certain of our other current and former employees and their affiliates at any time after the ninth anniversary of the Corporate Conversion and on or prior to the tenth anniversary of the Corporate Conversion.

Similarly, the HHH Services Agreement has an initial 10-year term, with successive automatic 10-year renewal terms unless the agreement is terminated or not renewed in accordance with its terms. The HHH Services Agreement may not be terminated by HHH except in limited prescribed circumstances such as fraud, misrepresentation or embezzlement by PSCM and with the approval of two-thirds of the disinterested members of its board of directors or in the event of a sale of the company which must be approved by a majority vote of the board of directors and a subsequent vote of a majority of shareholders present at a shareholder meeting. We note that Pershing Square Inc. and our core funds own 47% of the outstanding shares of HHH. HHH may only elect not to renew the HHH Services Agreement if the non-renewal is approved by a unanimous vote of the disinterested members of its board of directors and by holders of at least 70% of the outstanding shares of HHH common stock, excluding any shares held by us or our affiliates. Under the HHH Standstill Agreement, we, and our affiliates, are generally limited to an ownership cap of 47% and a voting cap of 40% of the outstanding shares of HHH common stock. See "—Termination of Investment Management Agreements and HHH Services Agreement and Key Man Protection" below for additional information.

#### Recurring Fee-Related Earnings Stream
We generate substantially all of our revenue from management fees and performance fees. We retain all of the management fees earned from our funds. We pay our investment professionals and certain other employees our realized performance fees in excess of an amount allocated to us in the form of a preferred entitlement that we refer to as "Preferred Performance Fees." Preferred Performance Fees are performance fees earned on the first five percentage points of fund returns, net of management fees, above the applicable high-water mark for certain of our core funds and subject to certain other offsettable fees. To the extent realized performance fees from a fund are insufficient to pay us some or all of the Preferred Performance Fee in any year, the unpaid portion accrues to subsequent periods until paid in full. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Components of Our Results of Operations—Income—Performance Fees—Allocation of Performance Fee Revenue" for an illustration of our Preferred Performance Fee arrangement for the allocation of performance fee revenue, as well as the relevant high-water marks, over the six-year period ending December 31, 2025.

We have structured the Preferred Performance Fees as a senior claim on our funds' performance fees to increase the stability and certainty of these future cash flows to Pershing Square Inc. Because our Preferred Performance Fees are paid from the first dollars of realized performance fees, which are contingent on the mark-to-market appreciation in the NAV of our funds above an applicable high-water mark, the amount of the Preferred Performance Fees that is paid in any year can vary depending upon the performance of our funds. In other words, if a fund does not generate a 5% return, net of the management fee, the amount of Preferred Performance Fees from that fund will be lower than if the fund generated a return in excess of 5% net of the management fee. The applicable high-water mark used to calculate the Preferred Performance Fees also can vary from year to year depending on changes in the Net Asset Value and the amount of fee-paying capital in a fund. Because the Preferred Performance Fees are paid from the first dollars of fund profit and are accrued in the event there are insufficient fund returns in any one year, as long as each fund that pays performance fees generates a 5% annual return, net of the management fee, over the long-term, the Preferred Performance Fees will be fully paid.

We believe that our Preferred Performance Fee arrangement results in recurring revenue that is less volatile and more predictable over the long-term when compared with conventional performance fee arrangements for two reasons: (1) our performance fees are paid annually subject only to our funds generating a return in excess of their high-water mark, and (2) our performance fees are determined based on mark-to-market returns including realized and unrealized gains. The structure of our Preferred Performance Fee arrangement makes for more consistent and stable cash flows compared to the performance fees of other alternative investment managers whose private equity funds generally require the sale of an asset at a price which generates cash returns in excess of a preferred return or hurdle rate. As a result of our Preferred Performance Fee arrangement, we believe that effectively all of our revenues from management fees and Preferred Performance Fees can be considered to be stable and recurring fee-related earnings.

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#### Core Investment Strategy Creates a High-Margin Business with a Largely Fixed Cost Base
Our core funds each have a similar investment program, which is to acquire long-term, large minority stakes in high-quality, predominantly North American-listed, large-capitalization companies at attractive valuations. Our core funds generally invest in the same assets in similar proportions, subject to regulatory, tax, liquidity and other applicable considerations. We view our core investment strategy as an important competitive advantage as we allocate capital only to our best ideas. Our core investment strategy also has proven to benefit from economies of scale, as, in general, the greater our percentage ownership of a company, the greater our influence over that company, influence which has helped us drive portfolio company and fund performance as well as organic growth in our AUM.

Our core investment strategy has proven to be highly scalable because fewer investment professionals are required to manage a concentrated portfolio consisting of long-term holdings with limited trading activity. We have nine investment professionals managing $30.7 billion in AUM as of December 31, 2025, and believe that we can significantly increase our AUM without materially increasing our headcount, infrastructure or other assets. The result is a high-margin operating model with a primarily fixed cost base (which excludes incentive compensation-related expense which is paid to employees out of realized performance fees only after first allocating to the Company the accrued Preferred Performance Fee).

Our business is also minimally capital intensive, apart from investments we make alongside other investors when we have launched new funds or completed corporate transactions. In light of our largely fixed cost base, highly scalable investment strategy, and minimal capital intensity, we benefit from substantial operating leverage as we grow our AUM.

#### History of Capital Markets Innovations
From time to time throughout our history, we have complemented our organic growth in AUM by launching new funds or completing innovative transactions that leverage our core competencies to create large 'overnight' increases in our Fee-Paying AUM without requiring significant new investments in infrastructure and operating costs. We have been at the forefront of two pronounced recent shifts in the asset management industry: the democratization of alternative investments and the surge in retail investor participation in public equity markets. For example, in 2014, we converted PSH into a closed-end investment company and listed its shares on Euronext Amsterdam (and later listed PSH on the London Stock Exchange in May 2017). As a result of PSH's public listing on the London Stock Exchange, PSH became our first publicly traded permanent capital fund with AUM of $6.2 billion as of October 2014.

In July 2020, our core funds sponsored the largest special purpose acquisition company ("SPAC") in history, Pershing Square Tontine Holdings, Ltd. ("PSTH"), which raised $4 billion in its initial public offering, before it was ultimately liquidated and all capital raised was returned to investors in 2022 due to PSTH's inability to close a transaction with Universal Music Group ("UMG") because necessary regulatory approvals were unable to be obtained in a timely fashion. We fulfilled our obligation to acquire 10% of UMG by acquiring the stake directly in our core funds along with a co-investment vehicle which we raised for that purpose.

We created a new form of acquisition company, Pershing Square SPARC Holdings, Ltd. ("SPARC"), a special purpose acquisition rights company, which we believe to be a more efficient and improved successor to the traditional SPAC, thereby providing investors in PSTH a free option to invest in our next acquisition company transaction. Our registration statement for SPARC became effective on September 29, 2023. We have been seeking to identify potential business combination opportunities for SPARC. SPARC has no founder stock, shareholder warrants, or underwriting fees, and represents a highly efficient approach to going public with Pershing Square as an anchor, committed capital sponsor.

The launch of PSUS, which would be our first flagship NYSE-listed permanent capital vehicle, will be our first fund marketed to both U.S. retail and institutional investors. Subject to the applicable requirements of the 1940 Act and the Code, as discussed elsewhere, PSUS is designed to be a near-mirror image of PSH, but without performance fee compensation and the regulatory marketing limitations, U.S. ownership restrictions, and tax characteristics of PSH.

The Howard Hughes Transaction has enabled us to create a permanent capital vehicle in a corporate form that we intend to use to acquire controlling interests in public and private companies and, as a result of the Vantage Acquisition, to build a profitable insurance company whose assets we will manage.

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#### PSUS IPO Will Substantially Increase Our Fee-Paying AUM
The PSUS IPO will materially increase our permanent capital and our Fee-Paying AUM, which will lead to substantial growth in our predictable and recurring management fee revenue and fee-related earnings. PSUS will pursue our core investment strategy enabling it to leverage our existing investment acumen and infrastructure. We believe the launch and management of PSUS will not require an increase in our fixed costs, making the additional revenue from PSUS a highly material contribution to our earnings and cash flows. See "Unaudited Pro Forma Consolidated Financial Information" and the accompanying PSUS Prospectus for additional information on PSUS.

#### Howard Hughes Transaction Drives Long-Term Value Creation
We believe the Howard Hughes Transaction will allow us to build a fast-growing, high-returning diversified holding company that acquires control positions in companies meeting our criteria for business quality and durable growth alongside continued growth in the cash flows from HHH's MPC real estate business. Our first initiative for HHH was to acquire or create an insurance company, the investment assets of which would be managed by PSCM. On December 17, 2025, HHH entered into an agreement to acquire Vantage, a privately held specialty insurance and reinsurance company, for approximately $2.1 billion in cash.

The Vantage Acquisition is expected to close in the second quarter of 2026, subject to customary regulatory approvals and closing conditions. We believe that the Vantage Acquisition will anchor HHH's transformation into a diversified holding company by combining our investment capabilities with Vantage management's insurance expertise and operations, enabling HHH to build and grow a profitable insurance company, which has the potential to serve as an important source of long-term value creation for HHH and our shareholders. PSCM intends to manage the assets of Vantage's insurance company subsidiaries similarly to how we manage the assets of our core funds, but with consideration to issues particular to regulated insurance companies.

We view the Howard Hughes Transaction as highly synergistic to our core investment strategy and competencies. We intend to leverage the idea generation and diligence processes we utilize in our core investment strategy, along with our extensive track record and reputational equity developed from working closely with portfolio companies, to assist HHH in pursuing privately negotiated control investments. We also intend to leverage our variant insights from our asymmetric hedging strategy to help protect HHH from macroeconomic risks and to capitalize on market dislocations.

We believe the Howard Hughes Transaction will not require us to materially increase our fixed costs or headcount, making the additional value created from such transaction, including from the quarterly HHH Fees paid to PSCM, highly accretive to our earnings and cash flows.

#### Highly Collaborative Culture and Reputation as a Preferred Partner to Portfolio Companies
We believe our firm's unique culture is fundamental to our success. Our company combines investment excellence with a flat organizational structure. Each member of our investment team plays a meaningful role in the construction and management of our portfolio. Our collaborative partnership culture, permanent capital base, the highly attractive economics of our business and our approach to employee compensation have resulted in limited employee turnover.

Our collaborative culture is also demonstrated by our track record of constructive engagements with boards of directors and oversight of our portfolio companies, which has allowed us to establish an excellent reputation and credibility as a preferred partner. We believe our reputation has been an important driver of our outperformance since inception, allowing us to garner substantial influence and drive long-term value creation in our portfolio companies without paying a control premium.

#### Alignment of Interests
We believe we have successfully built a business model that aligns our interests with our portfolio companies, investors in our funds, and the stockholders of Pershing Square Inc. Our employees and their affiliates' capital invested in our funds and HHH totaled $5.8 billion as of December 31, 2025, accounting for approximately 26% of the aggregate value of our funds' NAV, before any accrued performance fee, and HHH's market capitalization, which is substantially higher, both as a percentage and absolute dollar investment, than the typical amount of sponsor investments of other alternative asset manager teams. We also have agreed to increase our existing investment in PSUS to $150 million by investing $100 million in common shares in the PSUS

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Private Placement and an additional $50 million in a private placement of preferred shares to be issued by PSUS in connection with and upon completion of the PSUS IPO. Our employees will own the substantial majority of Pershing Square Inc. shares after the combined transaction.

Our employee compensation is tied to aggregate fund performance rather than the performance of any one or more portfolio companies or investments of our funds. Our Preferred Performance Fee arrangement increases our alignment with our investors as the substantial majority of our investment professionals' compensation comes from performance fees remaining after payment by PSCM of the Preferred Performance Fee to us. For additional information, see "Summary—Reorganization Transactions" and "Summary—Implications of Being a Controlled Company." To further align certain of our senior professionals with our long-term investment horizon, in connection with the combined offering, certain of our senior professionals will receive interests in PS Partner Group that may become redeemable, subject to certain conditions, for shares of our common stock held by PS Partner Group. See "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Redeemable Interests in PS Partner Group."

To minimize circumstances that may lead to or give the appearance of conflicts of interest with our fund investors, we maintain policies that restrict the type of investments our employees can make in their personal accounts and require regular disclosure to us of their personal securities holdings and transactions.

#### Our Growth Strategy
We intend to drive long-term shareholder value by pursuing a growth strategy of compounding our permanent capital at high rates of return and by launching new permanent capital funds and executing corporate transactions, like the HHH Transaction, that will enable us to grow our permanent capital assets.

#### Generate High Rates of Long-Term Returns To Drive Organic Growth in Fee-Paying AUM
Generating high rates of long-term returns is key to our strategy and has been fundamental to our ability to scale our business over time. Since our founding, a long-term investment in our funds has generated substantially superior returns for investors versus an investment in the S&P 500, our benchmark index. Our strategy has proven to be highly scalable because fewer investment professionals are required to manage a concentrated portfolio consisting of long-term holdings with limited trading activity, and because our long-term, large ownership stakes increase our influence over our portfolio companies, which we believe helps to drive our investment performance.

We view our selective asymmetric hedging strategy as highly synergistic to our core investment strategy and a superior alternative to a large cash position or a continuous hedging program, both of which can be a significant drag on long-term performance. Accordingly, we believe that our core investment strategy complemented by our asymmetric hedging strategy will allow us to continue to compound our permanent capital at high rates of return, creating continued rapid organic growth in our AUM. Because of our high-margin, minimally capital-intensive operating model, our growth in Fee-Paying AUM from investment returns and new permanent capital initiatives should drive substantial increases in our revenues, our earnings, and our cash flow, which will be available for future investment opportunities and for dividends or share repurchases.

#### Selective Launches of New Permanent Capital Funds Can Drive Large Percentage Increases in Fee-Paying Assets
We will continue to evaluate opportunities to selectively launch new permanent capital funds that leverage our core competencies and create large 'overnight' increases in our Fee-Paying AUM without requiring significant new investments in infrastructure and operating costs. For example, we may consider launching new permanent capital funds that focus on investments with asymmetric payoff structures and/or opportunistic private investments, which leverage our substantial experience with asymmetric hedges and history of privately negotiated transactions. In light of our relatively small current Fee-Paying AUM compared with other publicly traded alternative asset managers, new permanent capital fund launches can drive large percentage increases in Fee-Paying AUM, operating profits, and cash flow. The combined offering and the HHH Transaction are emblematic of this approach to growth. In the event we identify additional compelling opportunities for selective expansion, we believe we are well positioned to capitalize on such opportunities.

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#### Investment Objective

#### Core Funds
The investment objective of our core funds is to preserve capital and seek maximum, long-term capital appreciation and growth in intrinsic value per share commensurate with reasonable risk. We define risk as the probability of permanent loss of capital, rather than price volatility. Our core funds' investment strategy typically involves the purchase by our funds of large minority stakes in high-quality, predominantly North American-listed, large-capitalization growth companies at attractive valuations during periods in which we believe they have underperformed their potential and/or when we believe they are undervalued because the market underestimates their potential or overestimates the impact of certain negative factors on their businesses. Occasionally, our funds may purchase controlling positions in companies if we believe there is an attractive value proposition.

By working with management teams and boards of directors we seek to assist portfolio companies in creating substantial long-term value. We pursue a long-term investment strategy in which we generally make investments for our funds with the expectation of holding the investment for multiple years and do not typically engage in short-term trading of the securities of the companies in which our funds invest. We make investments on behalf of our funds with the expectation of holding each position for the long term. At any given time, we intend our core funds to own a concentrated portfolio of positions, although we may, from time to time, increase the number of holdings in the core funds' investment portfolios as a result of market or economic conditions or due to other considerations. We believe our commitment to making long-term investments provides the management teams and boards of directors of our portfolio companies with the necessary stability and support to create substantial long-term value and serves as an excellent recruitment tool when our portfolio companies seek to hire world-class senior executives who prefer the stability and backing afforded by a significant long-term shareholder.

Consistent with our core investment principles and business strategy, we seek to identify investment opportunities for our funds in high-quality companies that have a number of the characteristics enumerated below. We use these criteria and guidelines in evaluating investments, but may make investments in companies that do not meet all of these criteria.

&nbsp;&nbsp;&nbsp;&nbsp;• **Simple, predictable, and free-cash-flow-generative.** We generally seek investments in companies with a proven track record of growth and free cash flow generation, and predictable future financial performance that we expect will generate strong, sustainable growth in cash flows over the long-term.

&nbsp;&nbsp;&nbsp;&nbsp;• **Formidable barriers to entry**. We generally seek investments in companies that have long-term sustainable competitive advantages, significant barriers to entry, or "wide moats" around their business, and low risks of disruption due to competition, innovation or new entrants.

&nbsp;&nbsp;&nbsp;&nbsp;• **Limited exposure to extrinsic factors**. We generally seek investments that are not materially negatively affected by macroeconomic factors, commodity prices, regulatory risks, interest rate volatility and/or cyclical risk.

&nbsp;&nbsp;&nbsp;&nbsp;• **Strong financial profile**. We generally seek investments in companies that are conservatively financed relative to their free-cash-flow generation and their underlying asset values.

&nbsp;&nbsp;&nbsp;&nbsp;• **Minimal capital markets dependency**. We generally seek investments in companies that generally do not need to raise equity capital to fund their businesses.

&nbsp;&nbsp;&nbsp;&nbsp;• **Large capitalization**. We generally seek investments in companies with large enterprise values and significant long-term growth potential.

&nbsp;&nbsp;&nbsp;&nbsp;• **Attractive valuation**. We seek to make investments in companies at a discount to their intrinsic value with the businesses operated 'as-is,' and at a potentially substantially greater discount relative to their value if the businesses were optimized.

&nbsp;&nbsp;&nbsp;&nbsp;• **Exceptional management and governance**. We generally seek investments in companies that have trustworthy, talented, experienced, and highly competent boards and management teams and that have implemented incentive compensation and robust governance structures designed to foster close shareholder alignment. We typically prefer to make investments in companies without controlling shareholders. However, at times, we may also seek investments in other companies where we believe we can be a catalyst for effectuating corporate change through active corporate engagement.

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While we are comfortable making investments in a wide range of industries and assets, we generally prefer investments in simple businesses or assets that generate cash flows that can be estimated within a reasonable range over the long term. In seeking investment opportunities for our funds, we are willing to accept a high degree of situational, legal, and/or capital structure complexity if we believe that the resulting complexity allows for a bargain purchase.

We generally seek to make investments on behalf of the core funds in three broad categories of opportunities: (i) businesses that generate relatively predictable, growing, free cash flows; (ii) businesses or assets that we believe are significantly undervalued and often have a catalyst to realize value; and (iii) mispriced probabilistic securities or investments where we believe that the market price of a security or other investment under- or over-estimates the probability of a favorable change in interest rates or credit conditions, volatility and movement in markets, exchange rates or commodity prices, the outcome of a legal decision, contract or patent award or such other event that is expected to lead to a significant change in the valuation of such security or investment.

The substantial majority of the core funds' respective portfolios are typically allocated to a limited number of core holdings principally in companies headquartered in North America and listed in the United States, but occasionally in companies headquartered elsewhere, as was the case with our Universal Music Group investment.

We intend to continue to concentrate the core funds' assets in a relatively limited number of investments because we believe that (i) there are a limited number of attractive investments available in the marketplace at any one time and (ii) investing in a relatively modest number of attractive investments about which we have detailed knowledge provides a better opportunity to deliver superior, risk-adjusted, long-term returns when compared with a highly diversified portfolio of investments we can know less well.

While we typically pursue a long-term investment strategy for our core funds, our core funds may also make short sale investments that offer absolute return opportunities. In addition, the core funds may short individual securities to hedge or reduce our long exposures. We also opportunistically utilize hedges both to protect the investment portfolios of our core funds against specific macroeconomic risks and to capitalize on market volatility. We generally structure these asymmetric hedges using derivative investments where the amount of capital at risk is finite (an amount which typically represents a small, single-digit percentage of a fund's total assets), with the potential to earn large multiples of the invested capital if the identified risk or macro event occurs. This hedging strategy offers the potential for profits which occur when unanticipated market-disrupting events take place. Alternatively, profitable hedges may decline in value if the identified risk abates before a fund has exited the hedge.

We have historically reinvested, and expect to continue to reinvest, profits from our asymmetric hedges during periods of market disruption by increasing our investments in existing portfolio companies and occasionally acquiring new positions, taking advantage of the depressed valuations of common stocks which typically occur during market disruptions. Our opportunistic hedging strategy has allowed us to increase our exposure to high-quality companies at materially discounted valuations, contributing to our long-term investment performance. We believe our opportunistic hedging strategy is a superior alternative to holding a large cash position or maintaining a continuous hedging program, which can be a significant drag on long-term performance.

We have substantial experience in negotiating relevant agreements for derivative transactions, and we have longstanding relationships with the counterparties to such agreements, which have historically allowed us to successfully identify and execute hedges and other derivative transactions on a timely basis over multiple market cycles.

We have no overarching strategy or asset allocation model that specifies what percentage of the core funds' portfolios should be invested in each investment category. Rather, cash, cash equivalents, and/or U.S. Treasurys are generally the default investment choices until we identify new opportunities. The core funds' allocations among different investment categories are a function of their potential risk and reward compared with available opportunities in the marketplace. Accordingly, the core funds may hold significant cash balances on an ongoing basis.

We believe that investments that meet the investment objective of our core funds are often found in companies undergoing significant changes in strategy, capital structure, corporate governance, management, legal exposure, corporate form, stockholder composition and control, liquidity and financial condition, and in companies that are affected by external changes in the economic and political environment, including changes in

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the relevant tax code. We also believe that investment opportunities that meet our core funds' investment objective may at times occur in misunderstood companies, distressed securities, companies in or exiting bankruptcy, spin-offs, rights offerings, liquidations, companies for which litigation is a major asset or liability, under-followed small and mid-capitalization companies and other special situations.

In certain situations, if we believe the potential for reward justifies the commitment of time, energy and capital, we may seek to be a catalyst to realize value from an investment by taking an engaged role in effectuating corporate change, either working alone or in conjunction with management and/or other investors. We believe that these techniques can both accelerate and maximize the realization of value from an investment and that constructive engagement with portfolio companies enables us to effectuate change without paying a control premium. For more than 22 years, we have accumulated significant experience in engaging with portfolio companies and guiding management teams, boards of directors and other stockholders through strategic and operational changes and restructurings. We believe that our successful track record and reputation as a value-creating owner enhances our ability to generate higher long-term rates of return.

The core funds will not make an initial investment in the equity of companies whose securities are not publicly traded (i.e., private equity) but may invest in privately placed securities of public issuers and publicly traded securities of private issuers. Notwithstanding the foregoing, it is possible that, in limited circumstances, public companies in which the core funds have invested may later be taken private and we may make additional investments in the equity or debt of such companies. The core funds may make investments in the debt securities of a private company, provided that there is an observable market price for such debt securities.

We generally implement substantially similar investment objectives, policies and strategies at each of the core funds. Allocation of investment opportunities among our core funds is typically made in a manner determined by us in our sole discretion, after taking into account (i) the "target allocation" to a particular strategy, geography, sector or other relevant characteristics of the subject opportunity, (ii) target levels of diversification of the relevant fund, and (iii) other factors that we believe in our sole discretion are relevant under the circumstances, including cash balances, liquidity requirements of a fund or anticipated cash flows, tax considerations and regulatory restrictions that would or could limit a fund's ability to participate in the proposed investment opportunity or require that a fund maintain a level of diversification, including requirements applicable to PSUS under the 1940 Act and the Code. See "—Allocation of Opportunities" below for more information on the allocation of investment opportunities between the core funds and HHH.

The leverage strategy we have employed for our funds has historically involved accessing a modest amount of low-cost, long-term, covenant-light, investment grade debt for certain of our funds. Historically, we have only agreed to debt incurrence covenants for our funds at thresholds well above the amount of leverage such funds intend to use in their strategy and have generally not used any margin borrowings for the funds we manage. Accordingly, we believe our leverage strategy has the potential to enhance our long-term returns without adding meaningful risk to our funds' portfolios. Since inception PSH has raised approximately $4.6 billion in investment grade bonds. PSUS similarly may issue debt securities or preferred shares if it believes that market conditions would be conducive to the successful implementation of a leveraging strategy through such issuances, as described in the accompanying PSUS Prospectus. The ability of PSH and PSUS to execute their leverage strategies depend on their ability to access sufficient sources of debt financing at attractive rates. The absence of available sources of sufficient debt financing at attractive rates for extended periods of time could therefore materially and adversely affect PSH and/or PSUS.

We take a concentrated, research-intensive, fundamental value approach to investing across our core funds. Our research process is based on detailed bottom-up analysis, although we include top-down factors in our overall analysis (e.g., how will a company be impacted by a downturn in the economy, a rise or fall in interest rates, etc.). Typically, we establish a limited number of new investment positions per year, from a large number of potential investment opportunities reviewed by the investment team. After identifying appropriate subsets within this broad initial review, the investment team discusses these potential investments to further refine and limit its focus. Once a potential investment is deemed sufficiently promising, the investment team typically performs additional research involving the analysis of public filings and extensive secondary sources and analyzes the historical record of the potential investment, looking for sources of comparable data on both public and private companies. We believe individual company research with respect to our current and potential future portfolio company investments can also yield variant macroeconomic insights allowing us to opportunistically

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structure asymmetric hedges both to protect the investment portfolios of our core funds against specific macroeconomic risks and to capitalize on market volatility. Our Founder is the ultimate decision maker for all investment positions. Mr. Israel is our Chief Investment Officer.

Our Founder, Mr. Israel, and the other investment professionals work as a team. Analysts are generalists and work in small teams on every investment in the portfolio. These teams are fluid and change from investment to investment depending on the availability of resources as well as the specific knowledge and interests of the analysts. All analysts, including those not directly responsible for a specific security, are expected to ask questions, challenge investment theses and voice opinions about investments in the portfolio. We believe that this process results in ideas being thoroughly vetted prior to making an investment, and carefully monitored once in the portfolio. In addition to a weekly investment team meeting at which the entire portfolio and potential new investments are discussed, analysts meet informally throughout each day.

#### HHH
The investment objective of HHH is to seek long-term growth in intrinsic value per share. HHH's investment strategy as a diversified holding company typically involves the acquisition of control positions in high-quality, durable growth public and private companies. Our first investment initiative for HHH was to acquire or create an insurance company whose assets we will manage, and on December 17, 2025, HHH entered into an agreement to acquire Vantage, a privately held specialty insurance and reinsurance holding company.

The Vantage Acquisition is expected to close in the second quarter of 2026, subject to customary regulatory approvals and closing conditions. In connection with the Vantage Acquisition, it is expected that PSCM will be engaged as investment manager for Vantage and its insurance company subsidiaries. We believe that the Vantage Acquisition will anchor HHH's transformation into a diversified holding company by combining our investment capabilities with Vantage management's insurance expertise and operations, enabling HHH to build and grow a profitable insurance company, which has the potential to serve as an important source of long-term value creation for HHH and our shareholders. HHH's investment strategy also will continue to consist of investing in and growing its existing core real estate development and MPC real estate business.

We will not have full discretionary authority over the investments of HHH. However, HHH generally will seek to identify opportunities in companies that meet our core investment criteria, as described above. Although HHH's diversified portfolio of operating companies may include businesses in which we and HHH have limited prior experience, HHH intends to attract and retain personnel with the relevant industry knowledge and experience to successfully direct the day-to-day activities of its operating companies. We believe the benefits of diversification for HHH are significant, including mitigating the current risk that a majority of HHH's assets are allocated to its real estate development and MPC real estate business which has significant exposure to risks related to interest rates, the housing market and regulatory barriers. Pursuant to its intended diversified holding company strategy, HHH intends to operate in a manner not requiring registration as an investment company under the 1940 Act.

We will support HHH's transformation into a diversified holding company by providing investment advisory and other ancillary services to HHH, consistent with the terms of the HHH Services Agreement. Such services include (i) investment advisory services to HHH, (ii) making recommendations with respect to hedging, balance sheet optimization and capital allocation, (iii) executing transactions, (iv) assisting HHH with business and corporate development functions, (v) making voting recommendations for HHH's investments, (vi) assisting with and advising on fundraising, (vii) monitoring operations of HHH and its investments, subject to the day-to-day authority and responsibility of HHH's management, (viii) providing recommendations for persons to serve as designees or deputies of HHH's Chief Investment Officer, (ix) engaging and supervising HHH's third-party service providers, (x) making dividend payment recommendations and (xi) providing other services as may be agreed upon.

In addition to HHH's control oriented investment strategy, HHH also intends to use the Vantage Acquisition to build a profitable insurance company which has the potential to serve as an important source of long-term value creation for HHH and our shareholders. PSCM intends to manage the assets of Vantage's insurance company subsidiaries similarly to how we manage the assets of our core funds, but with consideration to issues particular to regulated insurance companies.

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We intend to leverage the concentrated, research-intensive approach to investing used with our core funds, as described above, to assist HHH in identifying opportunities. We also intend to leverage our over 22 years of experience in engaging with portfolio companies and guiding management teams, boards of directors and other stockholders through strategic and operational changes and restructurings, as well as our successful track record and reputation as a value-creating owner, to assist HHH in successfully pursuing privately negotiated control investments. In addition, we intend to leverage the variant insights from our asymmetric hedging strategy to protect HHH against macroeconomic risks and allow HHH to capitalize on market volatility. Our Founder is the Executive Chairman of the HHH Board of Directors, and Mr. Israel is HHH's Chief Investment Officer. Mr. Israel and Mr. Hakim also serve on the HHH Board of Directors. Our Founder, Mr. Israel and Mr. Hakim will not receive compensation from HHH for such services. We believe our history of constructive engagement with HHH, dating back to 2010 when we recruited the management team and were at the forefront of the creation of The Howard Hughes Corporation, will allow us to create value through the Howard Hughes Transaction.

#### Allocation of Opportunities
As discussed above, our core funds' primary investment strategy typically involves the purchase of large minority positions whereas HHH's primary investment strategy typically involves the acquisition of control positions. However, each of our funds and HHH may consider a broad range of investment opportunities as part of their investment strategies. PSCM will retain the discretion to allocate investment opportunities among our funds and HHH, including allocating a controlling position to our core funds and recommending a minority position to HHH, based on the particular opportunity and other factors it deems appropriate, and consistent with its contractual and legal obligations to our funds and HHH, including those under the HHH Services Agreement.

#### Risk Management
We define investment risk as the probability of a permanent loss of capital rather than price volatility. We do not use formulaic approaches to risk management. Instead, risk management is integrated into the portfolio management process. Our primary risk management tool is the extensive research we complete prior to an initial investment by the funds. The factors we consider in assessing long investment opportunities include:

&nbsp;&nbsp;&nbsp;&nbsp;• volatility/predictability of the businesses;

&nbsp;&nbsp;&nbsp;&nbsp;• correlation with macroeconomic factors;

&nbsp;&nbsp;&nbsp;&nbsp;• financial leverage;

&nbsp;&nbsp;&nbsp;&nbsp;• defensible market positions; and

&nbsp;&nbsp;&nbsp;&nbsp;• discount to intrinsic value.

We do not have a formulaic approach in evaluating correlations between investments, but we are mindful of sector and industry exposures and other fundamental correlations between the businesses in which we invest.

As part of our strategy to mitigate investment risk, we seek to invest the substantial majority of the core funds' capital in high-quality, low-leverage, North American, large-cap companies. Accordingly, the primary risks in the core funds' portfolio are company specific risks which are managed through investment selection and due diligence. The public nature of the investments in the core funds' portfolio and portfolio concentrations allows us to monitor and evaluate every investment on a daily basis.

We seek to limit the core funds' exposure to the risks that may be associated with the use of financial leverage and short sales. As described above, we also seek to opportunistically utilize asymmetric hedges to protect the investment portfolios of our core funds against specific macroeconomic risks. In addition to our asymmetric hedging strategy, the core funds may also use derivatives, including equity options, in order to obtain security-specific non-recourse leverage in an effort to reduce the capital commitment to a specific investment, while potentially enhancing the returns on the capital invested in that investment. The core funds may also use derivatives, such as equity and credit derivatives and put options, to achieve a synthetic short position in a company without exposing a fund to some of the typical risks of short selling, which include the possibility of unlimited losses and the risks associated with maintaining a stock borrow. The core funds generally do not use total return swaps to obtain leverage, but rather to manage regulatory, tax, legal, share ownership restrictions, or other issues. PSUS's use of derivatives is subject to compliance with Rule 18f-4 under the 1940 Act.

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To mitigate credit risk arising in connection with trading in financial instruments, we seek to have the funds enter into transactions only with reputable counterparties that we believe to be creditworthy. We hedge counterparty risks via cash, U.S. Treasurys, short-term U.S. Treasury money market funds collateral, and through the use of credit default swaps.

#### The Funds and HHH
Our wholly owned subsidiary, PSCM, serves as the investment manager of PSH, our private funds, and following the PSUS IPO, PSUS, and provides investment advisory and other services to HHH. In addition, following the closing of the Vantage Acquisition, it is expected that PSCM will be engaged as investment manager for Vantage and its insurance company subsidiaries.

The following table provides an overview of our core funds and HHH:

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| | | | |
|:---|:---|:---|:---|
| **Core Fund<sup>(1)(2)</sup>** | **Launch Date** | **Assets Under** <br>**Management as of** <br>**December 31, 2025** | **Availability**  |
| PSH<sup>(3)</sup> | December 31, 2012 | $18.7 billion | Shares traded on London Stock Exchange  |
| PSLP | January 1, 2004 | $1.5 billion | Open but not actively marketing  |
| PSINTL | January 1, 2005 | $409.0 million | Open but not actively marketing  |
| PSUS | \*  | —  | Shares to be traded on the NYSE following the PSUS IPO  |
| **Total AUM — Core Funds** |  | $20.6 billion |  |
| HHH<sup>(4)</sup> |  | $10.0 billion | Shares traded on the NYSE |
| **Total AUM — Core Funds and HHH** |  | $30.7 billion |  |

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\*<br> PSUS will commence investment operations concurrently with the consummation of the PSUS IPO.

(1)<br> There are no separately managed account arrangements, and we do not manage any proprietary accounts.

(2) Employees are permitted to invest in PSLP, PSINTL and PSH. Employee investments in PSLP and PSINTL are subject to quarterly liquidity and are not charged any management or incentive fees, and we have historically rebated the management and performance fees charged to PSH shares held by our employees and their affiliates. In 2024, we rebated 100% of our employees' and their affiliates' fees. Following the Holdco Reorganization, we ceased to provide these rebates, which were instead continued by PS Partner Group and CompCo. Following the combined offering, PS Partner Group and CompCo will no longer rebate the fees of employees invested in PSH. See "Certain Relationships and Related Person Transactions—Other Transactions—Fee Waivers and Rebates."

(3) As of December 31, 2025, PSH's AUM includes bond proceeds of $2.3 billion and €1.15 billion (translated into USD at the prevailing exchange rate at the reporting date). 

(4)<br> As of December 31, 2025, HHH's AUM reflects its market capitalization as of such date plus its net mortgages, notes, and loans payable as reported in its Quarterly Report on Form 10-Q for the quarter ending September 30, 2025.

#### Pershing Square SPARC Holdings, Ltd.
We are the non-member manager of Pershing Square SPARC Sponsor, LLC ("SPARC Sponsor"), which is the sponsor entity of Pershing Square SPARC Holdings, Ltd. ("SPARC"). PSH and our private funds are the non-managing members of SPARC Sponsor. On September 29, 2023, the SEC declared effective a registration statement on Form S-1 filed by SPARC relating to the proposed issuance and distribution of subscription warrants to purchase common stock of SPARC, referred to as "SPARs." SPARC has since begun to pursue potential business combination opportunities with private, high-quality, growth companies.

#### Howard Hughes Transaction
On May 5, 2025, we completed the Howard Hughes Transaction pursuant to which we intend to transform one of our funds' portfolio companies, HHH, into a diversified holding company. HHH will also seek to acquire, over time, controlling ownership of high-quality, durable growth public and private operating companies while

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continuing to grow its MPC real estate business. We provide HHH with investment advisory and other services, including corporate development, transaction execution and capital markets advisory services to support its new diversified holding company strategy. Upon completion of the Howard Hughes Transaction, we acquired nine million shares of HHH common stock for $900 million, representing approximately 15% of the issued and outstanding HHH common stock, and also generally hold the power to vote 40% of the issued and outstanding HHH common stock, making us the largest single stockholder of HHH by voting power.

#### Pershing Square USA, Ltd.
Our wholly owned subsidiary, PSCM, serves as the investment manager of Pershing Square USA, Ltd., a non-diversified, closed-end investment company that is registered under the 1940 Act. On March 10, 2026, PSUS filed with the SEC a registration statement on Form N-2 relating to the proposed PSUS IPO (including the issuance to us and resale by us of PSUS Shares). Please refer to the accompanying PSUS Prospectus for more information about PSUS.

In connection with the PSUS IPO and PSUS Private Placement, we have agreed to (i) increase our existing $15.9 million investment in PSUS to a $150 million investment in PSUS, which additional investment we intend to finance using a term loan facility, comprising (a) $100 million of common shares in the PSUS Private Placement and (b) $50 million of preferred shares to be issued by PSUS in a private placement in connection with and upon completion of the PSUS IPO and (ii) maintain such investment (or substantially equivalent economic position) for at least 25 years following the consummation of the combined transaction, subject to certain exceptions and unless prohibited by applicable law (the "Anchor Investment").

We will be paid a quarterly management fee equal to 0.5% (2.0% on an annual basis) of the Net Asset Value of PSUS, payable in advance at the beginning of each quarter. We are not entitled to any type of performance fee or incentive allocation from PSUS.

#### Advisory Fees and Compensation
Our primary source of income comes from the management and performance fees derived from the funds. We also earn income from the fees paid by HHH. A brief summary of these fees is provided below.

#### PSH
*Management Fee* 

We are generally paid a quarterly management fee equal to 0.375% (1.5% on an annual basis) of the Net Asset Value, before any accrued performance fees, of fee-paying shares of PSH, payable in advance at the beginning of each quarter.

In connection with the Howard Hughes Transaction, we reduced the management fees payable to PSCM by PSH by an amount equal to the HHH Fees multiplied by the percentage of HHH's shares outstanding held by PSH.

*Performance Fee* 

We receive a "variable performance fee" from PSH in an amount equal to (i) 16% of the gains attributable to each share of PSH (the "16% performance fee"), minus (ii) the "additional reduction" (as defined below). The variable performance fee is payable upon the occurrence of crystallization events, which include December 31 of each year and PSH's payment of a dividend. Any 16% performance fees paid in connection with dividends are pro-rated to reflect the ratio of the dividend to PSH's Net Asset Value at the time the dividend is paid. Accordingly, no variable performance fee can be higher than the 16% performance fee but it may, as a result of the additional reduction, be lower (although it can never be a negative amount).

The "additional reduction" is an amount equal to the lesser of the 16% performance fee and the "potential reduction amount" (as defined below).

The "potential reduction amount" is a notional amount equal to (i) 20% of the aggregate performance fees and allocation earned by us and our affiliates for the same calculation period on the gains of other current and certain future funds managed by us or any of our affiliates (including PSLP and PSINTL) plus (ii) 20% of any management fees earned from certain future funds that do not have performance fees or allocations as part of

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their terms (including, following the PSUS IPO, PSUS), plus (iii) if the potential reduction amount in respect of the previous calculation period was not fully utilized in reducing the variable performance fee for that period, the amount not utilized (which is in effect carried forward). We refer to this arrangement pursuant to which a portion of the performance fees and management fees of certain other funds serve to reduce the performance fee paid by PSH to PSCM as the "fee offset arrangement."

For purposes of calculating the variable performance fee, "gains" refer to the net realized and unrealized increase (if any) in the Net Asset Value attributable to the relevant shares (calculated before giving effect to the variable performance fee) above a high-water mark applicable to such shares, that in each case have accrued at the relevant crystallization event.

A "high-water mark" with respect to any share of PSH is the highest Net Asset Value attributable to that share at the end of any period (typically, each December 31 and any other crystallization event outside of a dividend payment) for which a performance fee is paid, provided that in the circumstances where PSH pays a dividend, the high-water mark will be reduced by the percentage of the Net Asset Value represented by such dividend. The high-water mark for the shares at the end of any period is calculated after the Net Asset Value per share is reduced by the management fee and the variable performance fee, in each case accruing at, or before, the relevant crystallization event.

#### PSLP
*Management Fee* 

We are generally paid quarterly a management fee equal to 0.375% (1.5% on an annual basis) of the Net Asset Value, before any accrued performance allocation, of the capital accounts relating to each limited partner of PSLP, payable in advance at the beginning of each quarter and prorated for any partial quarter. We have waived, and may in the future waive, in our sole discretion the management fee with respect to the capital accounts of our Founder and other personnel and their affiliates and certain other investors, including accounts related to Pershing Square Foundation and other donor advised funds associated with our personnel. As of December 31, 2025, the Fee-Paying AUM of PSLP was 42%.

In connection with the Howard Hughes Transaction, we reduced the management fees payable to PSCM by PSLP by an amount equal to the HHH Fees multiplied by the percentage of HHH's shares outstanding held by PSLP attributable to its fee-paying capital.

*Performance Fee* 

The general partner of PSLP, PSGP, is entitled to a performance allocation of (1) 20% in respect of those limited partners who elect upon subscription to be subject to such 20% performance allocation, and (2) 30% above an annual 5% hard hurdle (non-cumulative) in respect of those limited partners who elect upon subscription to be subject to such 30% performance allocation, in each case reduced by loss carry forward accounts (if any). Although we do not have any direct equity interests in PSGP, a portion of the performance allocation earned from PSLP is available to offset the variable performance fee we receive from PSH pursuant to the "potential reduction amount" described above under "—PSH—Performance Fee."

#### PSINTL
*Management Fee* 

We are generally paid quarterly a management fee equal to 0.375% (1.5% on an annual basis) of the Net Asset Value, before any accrued performance fee, of each series of fee-paying shares of PSINTL, payable in advance at the beginning of each quarter and prorated for any partial quarter. We have waived, and may in the future waive, in our sole discretion, the management fee with respect to the capital accounts of our Founder and other personnel and their affiliates and certain other investors, including accounts related to Pershing Square Foundation and other donor advised funds associated with our personnel. As of December 31, 2025, the Fee-Paying AUM of PSINTL was 55%.

In connection with the Howard Hughes Transaction, we reduced the management fees payable to PSCM held by PSINTL by an amount equal to the HHH Fees multiplied by the percentage of HHH's shares outstanding held by PSINTL attributable to its fee-paying capital.

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*Performance Fee* 

We receive a performance fee from PSINTL with respect to the fee-paying series of shares of PSINTL (Classes A, C, D, E and G). Stockholders in Classes A, C, D and E, which each have different redemption rights, pay us a performance fee equal to 20% of the increase, if any, in the Net Asset Value (before performance fees) of each series of each class of shares, during each fiscal year, above the Net Asset Value thereof for the fiscal year with respect to which a performance fee was most recently payable. Stockholders in Class G pay us a performance fee equal to 30% above an annual 5% hard-hurdle (non-cumulative), and are otherwise subject to the same management fee arrangements as those stockholders in Classes A, C, D and E. Stockholders in Class F are our affiliates or charitable entities directed, supported, or controlled by our employees or affiliates, and are not charged a management fee or performance fee.

The performance fee is calculated based on both realized gains and losses and unrealized appreciation and depreciation of securities held in PSINTL's portfolio, calculated on a series-by-series basis. A separate series is issued for each subscription for shares.

#### PSVII
*Management Fee* 

Prior to its liquidation on December 31, 2024, we were generally entitled to a quarterly management fee equal to 0.0625% (0.25% on an annual basis) of the balance of each capital account, payable in advance at the beginning of each quarter and prorated for any partial quarter, although with limited exceptions, we had waived the management fee with respect to the capital accounts for most investors.

#### Allocation of Performance Fee Revenue
In connection with the Strategic Investment, we implemented an arrangement for the allocation of performance fee revenue as between us and our investment professionals among others. Pursuant to this arrangement reflected in the VCA, for each crystallization period, we are entitled to receive the following amounts with respect to certain funds we manage (our "Preferred Performance Fee" with respect to the applicable fund): (i) with respect to PSH, an amount equal to the 16% performance fee that would have been earned if PSH had experienced a "net of management fee" return of 5% per annum above its high-water mark (and following the termination and replacement of the VCA in connection with the combined offering, minus any offsettable management fees which with respect to any fund refers to the portion of such management fee that would offset performance fees payable by PSH as described above); and (ii) with respect to certain other funds subject to the VCA (currently only PSINTL), an amount equal to the applicable performance fee that would have been earned if such fund had experienced a "net of management fee" return of 5% per annum above its high-water mark minus any offsettable performance fees which with respect to any fund refers to the portion of such performance fee that would offset performance fees payable by PSH as described above.

The calculation of the Preferred Performance Fee that we are entitled to receive from any fund is not dependent on the actual amount of performance fees earned from such fund. However, the amount of Preferred Performance Fees actually distributed to us from PSCM will be limited by the performance fees (and applicable offsettable performance fees) that PSCM actually receives from the applicable fund. In the case of PSH, PSCM's performance fees are subject to a fee offset arrangement, as described above, that reduces the amount of performance fees paid by PSH based on management fees and performance fees earned from certain other funds, and a portion of such offsettable performance fees will be made available by PSCM to pay the Preferred Performance Fees with respect to PSH or will be paid to CompCo as Subordinated Performance Fees in case of any applicable excess above the payment of the Preferred Performance Fees with respect to PSH. Any portion of the Preferred Performance Fee that we are entitled to receive from a fund that is not paid in a given period will accrue to the next period's Preferred Performance Fee for such fund until paid by such fund. For further information, see "Executive Compensation—Narrative Disclosure to Summary Compensation Table—Variable Compensation Agreement" and "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Variable Compensation Agreement and Subordinated Profits Interest." See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Components of Our Results of Operations—Income—Performance Fees—Allocation of Performance Fee Revenue" for an illustration of our Preferred Performance Fee arrangement for the allocation of performance fee revenue over the six-year period ending December 31, 2025.

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#### HHH Fees
*HHH Base Management Fee*

We are paid quarterly a base fee by HHH of $3,750,000 ($15,000,000 on an annual basis) (the "HHH Base Management Fee"), payable in advance at the beginning of each quarter. The HHH Base Management Fee shall be prorated in the case of the second quarter of 2025. The HHH Base Management Fee is subject to annual adjustment for inflation based on the Core PCE Price Index, with the first such adjustment to occur on January 1, 2026.

*HHH Variable Management Fee*

We are paid quarterly a variable fee by HHH, payable no later than fifteen days from the end of each quarter, equal to 0.375% of the (x) excess value of (a) the volume-weighted average trading price of shares of HHH common stock for the fifteen trading days ending on the last trading day of such quarter over (b) an initial reference share price equal to $66.1453 multiplied by (y) the reference share count equal to 59,393,938 shares (the "HHH Variable Management Fee" and together with the HHH Base Management Fee, the "HHH Fees").

The reference share price is subject to annual adjustment for inflation based on the Core PCE Price Index, with the first such adjustment to occur on January 1, 2026, and subject to adjustment for stock splits, reclassifications or similar capital changes. The reference share count is also subject to adjustment for stock splits, reclassifications or similar capital changes but generally shall not be adjusted for the issuance of new shares of HHH common stock.

If the HHH Services Agreement is terminated, PSCM will be entitled to any HHH Fees earned prior to such termination, provided that the quarter-end stock price for purposes of calculating the HHH Variable Management Fee will be based on the volume-weighted average trading price for the fifteen trading days ending on the date the agreement is terminated.

#### Other Investment Funds
We may offer other investment funds, including co-investment opportunities alongside the funds, to third parties selected by us in our sole discretion, including certain existing investors of the funds and/or the existing other investment funds. Co-investment opportunities may be made available through limited partnerships, limited liability companies or other special-purpose entities formed to make such investments, such as PSVII, which was formed for the purpose of investing in the securities of Universal Music Group. The terms will vary from product to product and will be determined at their establishment.

#### Termination of Investment Management Agreements and HHH Services Agreement and Key Man Protection

#### PSH
Our investment management agreement with PSH may be terminated by PSH as of December 31 of each year upon four months prior notice. In addition, any assignment by us, or any event that may be deemed an assignment, of the PSH investment management agreement under the Advisers Act, would require the consent of PSH. PSH is managed by a majority-independent board of directors that is elected by its stockholders. Any decision by the PSH board to terminate the investment management agreement or to withhold consent to an assignment under the Advisers Act would only be effective if 66 2/3% of the voting shares and 66 2/3% of the public shares of PSH support such decision. Our Founder and certain of our other employees, together with their affiliates, directly or indirectly hold public shares of PSH that represented 28% of the outstanding public shares of PSH at December 31, 2025. As a result, a decision to terminate the investment management agreement by record holders as of such date would have required the affirmative approval of 93% of the remaining outstanding public shares.

Additionally, under the indentures for certain senior notes issued by PSH (the "legacy notes"), if a Key Man Event (defined as Mr. Ackman's death, permanent disability or withdrawal as managing member of the general partner to PSCM) occurs, the specified debt to capital ratio in the debt covenant is reduced from 1.0 to 3.0 to 1.0 to 4.0. If at the time of the Key Man Event, PSH's debt to capital ratio is above 1.0 to 4.0, PSH will be required to either reduce its debt or issue additional equity to meet the new 1.0 to 4.0 ratio within 180 days, which may require PSH to liquidate certain of its positions to generate cash to meet the new ratio. If the Key Man Event covenant requires a reduction in existing leverage to meet the new 1.0 to 4.0 ratio, the outstanding

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legacy notes become callable at 101% of par in the amount necessary to achieve the required debt to capital ratio and the Company may select which notes to redeem. We have historically limited PSH's debt to capital ratio to a 33.0% threshold but have never exceeded 25.0%. As of December 31, 2025, PSH had a debt to capital ratio of 19.5% and an average ratio of 18.3% since PSH's first debt issuance.

#### PSUS
Our investment management agreement with PSUS may be terminated as a whole at any time by PSUS, without the payment of any penalty, upon the vote of a majority of the PSUS Board or a majority of the outstanding voting securities of PSUS or by us, on 60 days' written notice by either party to the other, which can be waived by the non-terminating party. In addition, our investment management agreement with PSUS will terminate automatically in the event of its "assignment" (as such term is defined in the 1940 Act). Five of the six trustees of the PSUS Board are not "interested persons" of us or PSUS for purposes of Section 2(a)(19) of the 1940 Act and are "independent," as determined by the PSUS Board. Following the PSUS IPO, subject to certain exceptions, the PSUS Board will be elected by PSUS's public shareholders. Pursuant to the requirements of the 1940 Act, at least 40% of the trustees serving on the PSUS Board at any time must not be "interested persons" of us or PSUS.

#### HHH Services Agreement
The HHH Services Agreement has an initial 10-year term, with successive automatic 10-year renewal terms unless the agreement is terminated or not renewed in accordance with its terms. The HHH Services Agreement may be terminated by HHH, with the approval of two-thirds of the disinterested members of its board of directors, with 120 days' prior written notice (or 30 days' prior written notice for causes (i), (ii), (iii) or (iv)) in the event of any of the following: (i) a material default by PSCM that causes material harm and is not cured within 60 days; (ii) fraud, misrepresentation or embezzlement by PSCM; (iii) PSCM acts in a manner constituting bad faith, willful misconduct or gross negligence or engages in criminal conduct in the performance of its duties; (iv) PSCM faces bankruptcy or insolvency; (v) upon a change of control of HHH; and (vi) with unanimous approval of the disinterested members of the HHH board of directors, if we or our affiliates no longer beneficially own all of the shares of HHH common stock purchased in connection with the Howard Hughes Transaction during the first 10 years following the closing date of such transaction (or 75% of such shares thereafter). In the event that the HHH Services Agreement is terminated pursuant to a change of control, HHH will pay PSCM a make-whole fee intended to approximate the present value of the total fees (both base and variable) that PSCM would have received had it continued to provide services for the remainder of the then-current term of the agreement. HHH may also elect not to renew the HHH Services Agreement if the non-renewal is approved by a unanimous vote of the disinterested members of its board of directors and by holders of at least 70% of the outstanding shares of HHH common stock, excluding any shares held by us or our affiliates. The HHH board of directors, subject to certain exceptions, will be elected by HHH's public stockholders.

The HHH Services Agreement may also be terminated by PSCM (i) in the event of a material default by HHH that causes material harm and is not cured within 120 days or (ii) if HHH makes a general assignment for the benefit of its creditors or faces bankruptcy or insolvency.

If the HHH Services Agreement is terminated, PSCM will be entitled to any fees earned prior to such termination. See "—Advisory Fees and Compensation—HHH Fees" for more information.

#### PSLP and PSINTL
A "Key Man Event" is deemed to occur upon Mr. Ackman's death or permanent disability. During the 90-day period following notice of a Key Man Event, subscriptions and redemptions will not be permitted. In certain circumstances following a Key Man event, limited partners or stockholders, as the case may be, of each fund may redeem all or some of their shares without being subject to the 20% Net Asset Value threshold, as described more fully in the funds' articles of association, and without being charged any redemption fees, other than the amount necessary to cover any extraordinary expenses associated with such redemption.

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#### Technology and Cybersecurity
Our business relies heavily on technology to support its operational, financial and information needs, and we consider our information security program a key component of our approach to risk management.

We have developed a comprehensive information security program in accordance with guidelines published by the National Institute of Standards and Technology, the International Organization for Standardization, industry practice and regulatory guidance applicable to us as an investment manager and commodity pool operator of the funds. In implementing and maintaining our program, we evaluate the risk of internal and external threats to and vulnerabilities of our information and technology systems, including inadvertent alteration or destruction of electronic data; network inaccessibility; unauthorized access to our data; viruses and malware; loss, destruction or theft of critical hardware; interception and compromise of electronic transmissions; and inadequate policies and procedures of third-party service providers.

To address these risks, our information security program is focused on the following key areas:

&nbsp;&nbsp;&nbsp;&nbsp;• *Governance.* Our Information Security Committee, led by members of our management team, meets semi-annually and as needed to assess information security-related risks to our business, oversee the implementation of our information security controls, policies and procedures, and review their effectiveness. Our board of directors receives regular updates on our information security operations.

&nbsp;&nbsp;&nbsp;&nbsp;• *Technical controls*. We deploy a variety of robust controls as part of our information security program including network and network storage configuration requirements, encryption of sensitive data, access controls, user identification and multi-factor authentication, firewalls, intrusion prevention and detection systems and anti-malware functionality.

&nbsp;&nbsp;&nbsp;&nbsp;• *Supervision of service providers.* We have implemented a risk-based approach to identify, oversee and mitigate risks presented by third parties with access to our information, as well as the risks to our business posed by cyber incidents affecting third-party systems.

&nbsp;&nbsp;&nbsp;&nbsp;• *Assessment and testing.* We evaluate the effectiveness of our policies and controls through regular third-party assessments and simulation exercises and use internal and external cyber penetration testing to identify critical vulnerabilities. We adjust our cybersecurity policies and controls as necessary based on the information provided by these reviews.

&nbsp;&nbsp;&nbsp;&nbsp;• *Incident response.* We maintain incident response and recovery plans to facilitate the detection and assessment of cyber incidents and to guide our response to a cybersecurity incident, and we conduct incident simulations on a regular basis.

&nbsp;&nbsp;&nbsp;&nbsp;• *Training and awareness.* We provide regular, mandatory information security training for all personnel on our information security program and how to avoid common cyber-attacks. Specialized training is provided to personnel whom we identify as vulnerable to simulated threats.

For a discussion of how risks from cybersecurity threats could affect our business, see "Risk Factors—Risks Related to Our Business and Industry—*Cybersecurity and data protection risks could result in the loss of data, interruptions in our business, and damage to our reputation, and subject us to regulatory actions, increased costs and financial losses, each of which could have a material adverse effect on our business and results of operations*."

#### Regulation and Compliance
Our business is subject to extensive regulation, including periodic examinations and regulatory investigations, by governmental and self-regulatory organizations in the jurisdictions in which we operate around the world. The level of regulation and supervision to which we are subject to varies from jurisdiction to jurisdiction and is based on the type of business activity involved.

We have operated for years within a framework that requires our being able to monitor and comply with a broad range of legal and regulatory developments that affect our activities, and we take our obligation to comply with all such laws, regulations, and internal policies seriously. We, in conjunction with our outside advisors and counsel, seek to manage our business and operations in compliance with such regulation and supervision. Our reputation depends on the integrity and business judgment of our employees, and we strive to maintain a culture of compliance throughout the firm. Rigorous legal and compliance analysis of our businesses and investments is

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important to our culture. We strive to maintain a culture of compliance through the use of policies and procedures, such as our code of ethics, compliance systems, and education and training for our people. We maintain and follow policies and procedures that are tailored to our business to facilitate compliance with the Advisers Act and other securities laws.

Our compliance team is composed of eight experienced and dedicated professionals who seek a strong, committed and globally consistent compliance culture throughout our Company. The compliance team's reporting line is independent of the investment team it supports and ultimately reports to our Chief Legal Officer & Chief Compliance Officer. The compliance team conducts regular reviews to monitor whether procedures are performed appropriately and conducts an annual review of the adequacy and implementation of all compliance policies and procedures. In addition, we have retained a third-party compliance advisor for assistance with ongoing compliance monitoring (including carrying out focused quarterly reviews on our behalf) and as a consultant with respect to compliance-related issues.

#### United States
In the United States, PSCM is registered with the SEC as an investment adviser under the Advisers Act. As a registered investment adviser, we are subject to the requirements and regulations of the Advisers Act. Such requirements relate to, among other things, fiduciary duties to advisory clients, maintaining an effective compliance program and code of ethics, investment advisory contracts, solicitation agreements, conflicts of interest, recordkeeping and reporting requirements, disclosure requirements, advertising and custody requirements, political contributions, limitations on agency cross and principal transactions between an adviser and advisory clients and general anti-fraud prohibitions. In addition, as a registered investment adviser, we are subject to routine periodic and other examinations by the staff of the SEC. The Advisers Act generally grants the SEC broad administrative powers, including the power to limit or restrict an investment adviser from conducting advisory activities if it fails to comply with federal securities laws. Additional sanctions that may be imposed for failure to comply with applicable requirements include the prohibition of individuals from associating with an investment adviser, the revocation of registrations and other censures and fines.

PSCM is also registered with the CFTC as a commodity pool operator under the Commodity Exchange Act with respect to certain funds. We rely on the CFTC's Regulation 4.7(b) ("Regulation 4.7") exemption with respect to PSINTL and PSLP. Under the exemption provided by Regulation 4.7, we are not required to file any offering memorandum with the CFTC, and the CFTC will not pass upon the merits of participating in a pool or upon the adequacy of accuracy of an offering memorandum. Nonetheless, commodity pool operators and commodity trading advisors that qualify for relief under Regulation 4.7 remain subject to certain disclosure, reporting and recordkeeping requirements. We do not rely on any exemption with respect to PSH. We expect to rely on CFTC Rule 4.12(c)(3) with respect to PSUS, which allows for "substituted compliance" with respect to certain CFTC recordkeeping, reporting and disclosure requirements. As a result, we will not be subject to certain aspects of the CFTC's rules ordinarily applicable to CPOs, including the specific disclosure requirements under CFTC rules in connection with our management of PSUS. However, the CPO of a registered investment company with less than three years of operating history, such as PSUS, is required under Rule 4.12(c)(3) to disclose the performance of all accounts and pools that are managed by the CPO and that have investment objectives, policies and strategies substantially similar to those of the newly-formed registered investment company.

#### The EU AIFMD and the UK AIFM Law
We have registered certain of our funds for marketing in the United Kingdom ("UK") and are therefore subject to the UK Alternative Investment Fund Managers Regulations 2013 as amended from time to time (the "AIFM Law"). Additionally, we have registered certain of our funds for marketing under national laws implementing the EU's Alternative Investment Fund Managers Directive (the "AIFMD") in Finland, Sweden, Belgium and the Netherlands. As Pershing Square Inc.'s source of income derives from the management of these funds by one or more subsidiaries, the costs of complying with the AIFMD and the AIFM Law may impact this income and the AIFM Law and the AIFMD may have an adverse effect on the continued operation of our funds where interests are offered to or placed with investors in the European Economic Area (the "EEA") and the UK. The AIFMD and the AIFM Law are complex and key aspects of it remain subject to interpretation, as well as continuing reform and update.

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The AIFMD and the AIFM Law impose significant regulatory requirements on alternative investment fund managers ("AIFMs"), operating within the EEA and the UK, as well as prescribing certain conditions with regard to regulatory standards, cooperation and transparency that need to be satisfied for non-EU and non-UK AIFMs to market alternative investment funds ("AIFs") into EEA Member States and the UK (such as those of our funds which have been registered to market under AIFMD and the AIFM Law). In order to market one of our AIFs to investors in the EEA or the UK, the non-EEA and non-UK investment adviser of that AIF is required to comply with the marketing conditions in the AIFMD or the AIFM Law (as applicable) and any additional national restrictions, assuming that national private placement is available. The AIFMD and the AIFM Law conditions are, broadly, that the AIFM complies with specific notification or registration requirements and certain additional transparency requirements requiring disclosures to investors in the AIF and to EEA or UK regulators, such as annual reporting and regulatory filing requirements; the AIFM complies with requirements relating to the acquisition of substantial stakes in, or control of, EEA or UK companies; and the jurisdictions in which the non-EEA or non-UK AIFM and the relevant AIF are organized satisfy certain conditions with regard to regulatory standards, cooperation and transparency.

A non-EEA or non-UK investment adviser, such as Pershing Square, is not required to comply with all of the requirements set out in the AIFMD or the AIFM Law. Accordingly, and subject to the below, investors in our funds may not receive the full protections or benefits available under AIFMD or the AIFM Law, which would otherwise be available to investors in an EEA or UK AIF managed by an EEA AIFM or UK AIFM.

Directive (EU) 2024/927 ("AIFMD II"), amending the AIFMD in the EU, was published in the Official Journal of the European Union on 26 March 2024 and entered into force on 15 April 2024. EU member states will have until 16 April 2026 to implement AIFMD II.

AIFMD II will amend or introduce provisions under the AIFMD including: regulatory reporting requirements, investor disclosures, prohibitions on AIFs or AIFMs being established in certain high-risk jurisdictions for AML purposes, licensing permissions for AIFMs, governance requirements and delegation. These will primarily affect fund managers established and licensed in the EEA. By virtue of their registrations to market under AIFMD in the EEA, it is possible that certain of our funds may be affected by the prohibitions on AIFs or AIFMs being established in certain high-risk jurisdictions for AML purposes, changes to investor disclosures and reporting requirements. The implementation of AIFMD II could have a negative impact on us including, but not limited to, increasing costs borne by us or our funds to ensure compliance with it, with these increased costs reducing any income paid to the Company.

By virtue of their registrations to market under AIFMD and the AIFM Law, certain of our funds may also be required to comply with limited parts of other EU and UK regulation such as the GDPR. For a discussion of how risks in relation to compliance with applicable data protection and privacy laws and regulations, such as the GDPR, affect our business, see "Risk Factors—Risks Related to Our Business and Industry—*Failure or alleged failure to comply with applicable data and privacy laws and regulations could subject us to ongoing costs and, in some cases, fines and reputational harm*."

#### The EEA EMIR and UK EMIR
Certain of our funds trade OTC derivatives with counterparties in the EU and the UK. Regulation (EU) No 648/2012, as amended ("EEA EMIR") regulates the operation of the derivatives market in the EEA. The United Kingdom has onshored EEA EMIR and a similar set of rules therefore now apply in the UK notwithstanding the UK's withdrawal from the European Union ("UK EMIR").

Broadly, EEA EMIR's and UK EMIR's requirements in respect of derivative transactions are: (i) mandatory clearing of OTC derivative transactions declared subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative transactions which may include the requirement for the two parties to such a transaction to exchange margin; and (iii) reporting and record-keeping requirements in respect of all derivative transactions.

The application of these requirements is dependent on the classification of the counterparties as financial counterparties ("FCs") or non-financial counterparties ("NFCs"). Financial counterparties and non-financial counterparties are further divided into those which have entered into derivative transactions having a notional value above certain specified thresholds ("FC+" or "NFC+") and those which have not ("FC-" and "NFC-").

When the relevant fund enters into an OTC derivative transaction with a counterparty established in the EEA/UK, such counterparty will require that this is conducted in compliance with the applicable requirements

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under EEA EMIR/UK EMIR. In particular, this may mean the parties either clear the transaction or, if the clearing obligation does not apply, enter into arrangements to exchange margin in respect of the transaction.

Compliance with the relevant EEA EMIR/ UK EMIR requirements (as applicable) is likely to increase the administrative burdens and costs of doing business for those of our funds trading OTC derivatives with counterparties in the EU and UK. In addition, over time divergences may arise between the rules under EEA EMIR and UK EMIR thus imposing additional compliance requirements upon the relevant Fund.

#### Other Jurisdictions
We and certain funds that we advise are registered with, have been licensed by or have obtained authorizations to be marketed in other jurisdictions outside of the United States. These registrations, licenses or authorizations relate to providing investment advice, marketing of securities and other regulated activities. Failure to comply with the laws and regulations governing these subsidiaries and funds that have been registered, licensed, or authorized could expose us to liability and/or damage our reputation.

#### Other Regulatory Considerations
Because our business and that of our funds and HHH is dynamic and is expected to change over time, we may be subject to new or additional regulatory constraints or requirements in the future. There are a number of pending or recently enacted legislative and regulatory initiatives that could significantly affect our business. Please see "Risk Factors—Risks Related to Our Business and Industry—*Extensive regulation of our business affects our activities and creates the potential for significant liabilities and penalties. The possibility of increased regulatory focus could result in additional burdens on our business,*" *"—Changing regulations regarding derivatives and commodity interest transactions could negatively impact our business and the business of our funds"* and *"*—*We are subject to increasing scrutiny from regulators, elected officials, investors and other stakeholders with respect to environmental, social and governance matters, which may constrain investment opportunities for our funds and harm our brand and reputation.*" This prospectus cannot address or anticipate every possible current or future regulation that may affect our or our funds' or HHH's businesses; however, such regulations may have a significant impact on investors in a fund, the operations of a fund or HHH, or our management activities, including restricting the types of investments a fund may make, to whom the funds may be sold, requiring additional disclosures or reporting to investors or regulatory authorities or requiring registration of a fund and/or PSCM as its investment adviser with one or more regulatory authority. Such regulatory constraints or requirements may give rise to additional costs or otherwise reduce any income received by Pershing Square Inc. in respect of our funds.

#### Human Capital Management
Our employees are integral to our culture of integrity, professionalism, excellence and cooperation. The intellectual capital collectively possessed by our employees is our most important asset. We hire qualified people, train them and encourage them to work together to provide their best thinking to the Company for the benefit of the investors in the funds we manage. As of December 31, 2025, we had 44 employees, including nine investment professionals. We have an investment team, a legal and compliance team, a technology team, a trading team, a finance team, a public relations team and an investor relations teams. See "Management" elsewhere in this prospectus for more information on our executive officers. We face intense competition in attracting and retaining talented professionals. Our ability to continue to compete effectively in our businesses will depend upon our ability to attract new employees and retain and motivate our existing employees.

#### Compensation and Benefits
Our compensation is designed to attract and retain employees and align their interests with those of the investors in our funds. We believe our high proportion of permanent capital and industry-leading assets-to-employee ratio as well as our allocation of performance fee revenue, in particular, allow us to provide appropriate incentives to attract and retain talent and align their interests with those of the investors in our funds. As described in "Business—Advisory Fees and Compensation—Allocation of Performance Fee Revenue," in connection with the Strategic Investment, we implemented an arrangement for the allocation of performance fee revenue, which entitles our investment professionals and certain other employees to substantial incentive compensation. In addition, some key personnel receive incentive compensation in the form of profit participation

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interests in both our company and the general partners of PSLP and PSVII. The senior members of the investment team are principally compensated based on the funds' overall performance, rather than the performance of any individual position, which encourages teamwork and aligns their interests with the funds' investors.

Personnel who do not have profit participation interests in our company receive a base salary and are eligible to receive additional compensation in the form of a discretionary annual bonus.

#### Health and Wellness
We believe that healthy team members are more productive, and we invest heavily in benefits and initiatives to support our employees. In addition to medical, dental, vision, life insurance, disability insurance, and retirement benefits, we provide generous primary and non-primary caregiver leave and domestic partner health insurance. We also provide employees with access to a medical advisor at no cost to help them navigate complex health situations and concerns.

#### Culture, Sustainability and Governance
We believe that a strong culture, a focus on sustainability and best-in-class governance are fundamentally aligned with running a successful business. Our interest in culture, sustainability and governance ("CSG") considerations relates to their impact on our investments and to how we operate our own business.

With respect to our investments, we view CSG as central to our investment objective to preserve capital and seek maximum, long-term capital appreciation and growth in intrinsic value per share commensurate with reasonable risk. As a concentrated, research-intensive, fundamental value investor in the public markets, the most important criterion in our investment selection process is our assessment of the long-term quality of a business. We believe that exceptional management teams demonstrate their ability to create long-term value for stockholders by managing CSG risks responsibly, integrating CSG into business practices, and by operating sustainably. As such, we consider the exposure of a business to CSG risks and its approach to CSG issues, both at the time of our initial investment and as part of our ongoing stewardship of a company. We analyze CSG risks as part of our existing due diligence process in order to understand potential key risk factors in our investments. Although we have rejected potential investments for unacceptable exposure to CSG-related risks, often our analysis confirms for us that companies we are considering already have appropriate CSG practices in place. In other cases, our due diligence may identify opportunities for long-term value creation through engagement with the business to address potential CSG-related concerns.

With respect to our own business operations, we take seriously our responsibility to maintain high ethical standards, care for our employees and affiliates, thoughtfully manage our environmental footprint and behave as responsible members of our local and broader community. We aim to responsibly manage our environmental footprint, and our goal is to be carbon-neutral. To meet that goal, we have implemented environmentally sustainable practices throughout our office space, including recycling, waste reduction and energy efficiency programs. We also intend to purchase carbon credits to offset the emissions that we are unable to eliminate, such as business travel.

Regarding our employee relations and community membership, we are committed to fostering a collaborative work environment and have established a Culture Committee to help guide our efforts to enhance our culture and company. Within this focus on our culture, we value our employees' diversity of personal experience, socioeconomic status, background, political views, race, religion, country of origin and ethnicity, sexual orientation, personal interests, perspectives and more. We are committed to fostering an inclusive culture in compliance with all applicable laws, including the recruitment, retention and development of talent with a wide spectrum of background and experiences on our investment and operational teams. We will continue to advance these initiatives and seek other opportunities to foster a culture that is welcoming for all.

We also offer our employees volunteer opportunities and encourage them to participate in various philanthropic efforts, both independently and in partnership with the Pershing Square Foundation, a charitable family foundation founded by our Founder in 2006.

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#### Legal Proceedings
We may from time to time be involved in litigation and claims incidental to the conduct of our business. Like other businesses in our industry, we are subject to scrutiny by the regulatory agencies that have or may in the future have regulatory authority over us and our business activities, which could result in regulatory agency investigations or litigation related to regulatory compliance matters.

On February 9, 2026, certain alleged stockholders of HHH, Charter Township of Shelby Fire & Police Retirement System, MVS Marine LLC and Kurtis Solberg (the "Plaintiffs"), filed a lawsuit in the Delaware Court of Chancery against PSCM LP, PS Holdco and Mr. Ackman (the "Pershing defendants") and Mr. Hakim and certain other directors of HHH (the "HHH director defendants"), captioned *Charter Township of Shelby Fire & Police Retirement System v. Pershing Square Capital Management, L.P.*, C.A. No. 2026-0184-BWD. The lawsuit alleges claims on behalf of a putative class of HHH stockholders and derivatively on behalf of HHH and contends that the HHH Transaction amounted to a transfer of control of HHH to the Pershing defendants; that the HHH director defendants breached their fiduciary duties by approving the transaction at an unfair price; and that the Pershing defendants aided and abetted those alleged breaches of fiduciary duty. The Plaintiffs also seek a declaratory judgment that the HHH Services Agreement is invalid and unenforceable under the Delaware General Corporation Law. The complaint seeks, among other things, injunctive relief preventing enforcement of the HHH Services Agreement; certain other equitable relief; unspecified damages; and an award of costs and disbursements, including attorneys' fees. We believe these claims have no merit and intend to contest these claims vigorously.

We are not currently subject to any pending judicial, administrative or arbitration proceedings that we expect to have a material impact on our results of operations or financial condition. The possibility of increased regulatory focus could result in additional burdens on our business. In addition, the possibility of tax or other legislative measures being adopted in some countries could materially adversely affect us. See "Risk Factors—Risks Related to Our Business and Industry—*Extensive regulation of our business affects our activities and creates the potential for significant liabilities and penalties. The possibility of increased regulatory focus could result in additional burdens on our business*" and "—*We are subject to substantial risks of litigation and regulatory proceedings and may face significant liabilities and damage to our professional reputation as a result of litigation and regulatory proceedings and negative publicity*."

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#### MANAGEMENT

#### Directors and Executive Officers
The following table sets forth the names, ages and positions of our directors and executive officers at the time of the combined offering.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position**  |
| William A. Ackman | &nbsp;&nbsp;59 | Chief Executive Officer and Chairman of the Board  |
| Ryan Israel | &nbsp;&nbsp;40 | Chief Investment Officer and Director  |
| Halit Coussin | &nbsp;&nbsp;54 | Chief Legal Officer, Chief Compliance Officer and Director  |
| Michael Gonnella | &nbsp;&nbsp;45 | Chief Financial Officer  |
| Ben Hakim | &nbsp;&nbsp;50 | President and Director  |
| David Coppel Calvo | &nbsp;&nbsp;47 | Director |
| Kerry Murphy Healey | &nbsp;&nbsp;65 | Director  |
| Orion Hindawi | &nbsp;&nbsp;46 | Director  |
| Marco Kheirallah | &nbsp;&nbsp;52 | Director  |
| Nicholas M. Lamotte | &nbsp;&nbsp;43 | Director |

---

**William A. Ackman has served as our Founder and Chief Executive Officer since founding PSCM in 2003, and as Chairman of our board of directors since June 2024. Prior to founding PSCM, Mr. Ackman co-founded and co-managed Gotham Partners Management Co., LLC ("Gotham Partners"), an investment adviser that managed public and private equity hedge fund portfolios, until 2003. Mr. Ackman also serves as Executive Chairman of the HHH Board of Directors since May 2025 and as the Chairman and Chief Executive Officer of SPARC since November 2021. In addition, Mr. Ackman serves on the board of the Pershing Square Foundation, which he founded in 2006. Mr. Ackman previously served as Chief Executive Officer and Chairman of Pershing Square Tontine Holdings, Ltd., as a member of the Federal Reserve Bank of New York's Investment Advisory Committee on Financial Markets and as a director of Universal Music Group N.V. Mr. Ackman received a Masters in Business Administration from the Harvard Business School and a Bachelor of Arts *magna cum laude* from Harvard College.** 

**Ryan Israel has served as our Chief Investment Officer since August 2022 and as a member of our board of directors since June 2024. Mr. Israel joined our investment team in 2009. Mr. Israel is also a member of the HHH Board of Directors and serves as Chief Investment Officer for HHH. Mr. Israel was previously an analyst at The Goldman Sachs Group, Inc. in the Technology, Media and Telecom group. Mr. Israel served as a director of Element Solutions Inc. from October 2013 through January 2019. Mr. Israel received his Bachelor of Science from the Wharton School at the University of Pennsylvania, where he graduated *summa cum laude* and beta gamma sigma in 2007.** 

**Halit Coussin has served as our Chief Legal Officer and Chief Compliance Officer since September 2015 and as a member of our board of directors since June 2024 and a director of PSH since November 2024. Prior to joining our company in 2007, Ms. Coussin served as an associate attorney at Schulte, Roth & Zabel LLP, where her practice focused on advising hedge fund managers on a variety of regulatory and compliance matters. Ms. Coussin received her LL.M. from New York University in 2000 and her LL.B. *magna cum laude* from Tel Aviv University in 1998.** 

**Michael Gonnella has served as our Chief Financial Officer since March 2017. Mr. Gonnella also serves as the Chief Financial Officer of SPARC, and previously served as Chief Financial Officer of Pershing Square Tontine Holdings, Ltd. Mr. Gonnella joined our firm in 2005. Prior to his appointment as our Chief Financial Officer, Mr. Gonnella served as our senior controller. Mr. Gonnella is a certified public accountant and received his Bachelor of Science from Seton Hall University in 2002 and his Master of Accountancy in Taxation from Rutgers Business School.** 

**Ben Hakim has served as our President since June 2024 and as a member of our board of directors since February 2025. Mr. Hakim joined our investment team in 2012. He has also served as President of SPARC since** 

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November 2021 and as a member of the HHH Board of Directors since May 2024 and previously served as President of Pershing Square Tontine Holdings, Ltd. Mr. Hakim was previously a Senior Managing Director at Blackstone Inc., where he worked in the Mergers & Acquisitions group for 13 years. Mr. Hakim received his Bachelor of Science from Cornell University in 1997.

**David Coppel Calvo has served as a member of our board of directors since January 2025. Mr. Coppel Calvo is the Chief Commercial Officer, Vice President of Investment and Board Member of Grupo Coppel (the "Coppel Group"), one of the largest non-food retailers and financial service providers in Latin America. Prior to assuming his current role in December 2018, Mr. Coppel Calvo previously served in various roles at the Coppel Group since 2008, including Director of Internal Procurement and Supply Chain and President of Coppel Corporation. In addition to serving on the board of directors of the Coppel Group, Mr. Coppel Calvo also currently serves on the board of directors of Corazón Capital and Qualitas and previously served on the board of directors of Bonobos.com Inc., INSIKT – AURA, Fibra Plus and Lululemon Mexico. Mr. Coppel Calvo is also a member of *Mexico en Moyimiento*. Mr. Coppel Calvo received a Bachelor of Science in Industrial and Systems Engineering from Tecnologico de Monterrey (ITESM) and a Masters in Business Administration from the Pan-American Institute for Senior Business Management (IPADE).** 

**Kerry Murphy Healey has served as a member of our board of directors since June 2024. Dr. Healey currently serves as a lecturer at the Princeton School of Public and International Affairs. Dr. Healey was the inaugural president of the Milken Center for Advancing the American Dream in Washington, DC, a position which she held from 2019-2022. Dr. Healey served as the President of Babson College from 2013-2019 and was elected President Emerita by the trustees of Babson College in 2021. Before joining Babson College, Dr. Healey served with distinction as the 70th lieutenant governor of Massachusetts from 2003 to 2007, where she worked to lead, enact, and implement a wide range of policy and legislative initiatives for the Romney-Healey Administration. In 2008, Dr. Healey was appointed by Secretary of State Condoleezza Rice as a founding member of the Executive Committee of the U.S. State Department's Public-Private Partnership for Justice Reform in Afghanistan, a position to which she was later reappointed by Secretary of State Hillary Clinton. Prior to her public service, Dr. Healey worked for more than a decade as a public policy consultant to the United States Department of Justice for Cambridge-based think tank Abt Associates. Dr. Healey currently serves on the board of directors of Apollo Global Management Inc. and Marti Technologies, Inc. Dr. Healey holds an A.B. in government from Harvard College and a Ph.D. in political science and law from Trinity College, Dublin. She has been a fellow at the Harvard Kennedy School's Institute of Politics and Harvard's Center for Public Leadership. She is a member of the Council on Foreign Relations and the Trilateral Commission, and a trustee of the American University of Afghanistan, the American University of Bahrain and Western Governors University.** 

**Orion Hindawi has served as a member of our board of directors since June 2024. Mr. Hindawi is the Executive Chairman and former CEO of Tanium, a private venture-backed endpoint management and cyber security company which he co-founded in 2007. Mr. Hindawi served as the CEO of Tanium from 2016 to 2023 and has served as the Executive Chairman of Tanium since February 2023. Mr. Hindawi has led the development of enterprise-scale endpoint security and management platforms for the past 18 years at BigFix, Inc. (acquired by International Business Machines Corp. in 2010) and Tanium, in addition to holding multiple software patents in network communications and systems management.** 

**Marco Kheirallah has served as a member of our board of directors since June 2024. Mr. Kheirallah is a founding partner at Lumina Capital Management, a special situations investment firm founded in 2022 in Brazil. Prior to Lumina Capital Management, beginning in 2010, Mr. Kheirallah was the Founder and Managing Partner at SIP Capital Fund. Mr. Kheirallah also served as the Chief Financial Officer at PDG Realty from 2012 to 2015. Mr. Kheirallah was a Partner at Banco Pactual from 2001 to 2009 and at Banco Matrix from 1996 to 2001. He also served as a Trader at Banco Opportunity from 1994 to 1996 and at Banco BCN from 1992 to 1994. Mr. Kheirallah received his bachelor's degree in Business Administration from Fundação Getulio Vargas, EAESP.** 

**Nicholas M. Lamotte has served as a member of our board of directors since June 2024. He is the Executive Chairman of Consulta Limited, a value-oriented investment firm. Mr. Lamotte was appointed Executive Chairman of Consulta Limited in 2024, having served in various roles at Consulta Limited since 2008, including Chief Executive Officer and Chairman of the Board. Prior to joining Consulta Limited, Mr. Lamotte was an analyst at Halcyon Asset Management from 2006 to 2008 and an analyst at The Goldman Sachs Group, Inc. from 2005 to 2006. Mr. Lamotte received a Bachelor of Arts from Brown University, where he graduated** 

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*magna cum laude and was elected to Phi Beta Kappa. Mr. Lamotte has completed the Owner/President Management program at Harvard Business School and has endowed the Nicholas M. Lamotte Scholarship for Business, Entrepreneurship and Organizations at Brown University.* 

#### Composition of the Board of Directors After the Combined Offering
Our business and affairs are managed under the direction of our board of directors. Upon completion of the combined offering, our articles of incorporation and bylaws will provide that our board of directors will consist of such number of directors as may from time to time be fixed by our board of directors. Our directors will be elected at each year's annual meeting of stockholders.

#### Director Independence
Our board of directors has affirmatively determined that each of Mr. Coppel Calvo, Dr. Healey, Mr. Hindawi, Mr. Kheirallah and Mr. Lamotte qualifies as an independent director under the NYSE listing standards.

#### Background and Experience of Directors
When considering whether directors and nominees have the experience, qualifications, attributes or skills, taken as a whole, to enable our board of directors to satisfy its oversight responsibilities effectively in light of our business and structure, the board of directors focuses primarily on each person's background and experience as reflected in the information discussed in each of the directors' individual biographies set forth above. We believe that our directors provide an appropriate mix of experience and skills relevant to the size and nature of our business. In particular, the members of our board of directors considered the following important characteristics, among others:

&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Ackman – our board of directors considered Mr. Ackman's perspective, experience, expertise and thorough knowledge of our industry as our Founder and Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Israel – our board of directors considered Mr. Israel's experience, expertise and knowledge of our industry as our Chief Investment Officer.

&nbsp;&nbsp;&nbsp;&nbsp;• Ms. Coussin – our board of directors considered Ms. Coussin's experience, expertise and knowledge of our industry as our Chief Legal Officer and Chief Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Hakim – our board of directors considered Mr. Hakim's experience, expertise and knowledge of our industry as our President.

&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Coppel Calvo – our board of directors considered Mr. Coppel Calvo's perspective, expertise and experience in significant leadership roles in the retail and financial services industries.

&nbsp;&nbsp;&nbsp;&nbsp;• Dr. Healey – our board of directors considered Dr. Healey's perspective, experience in significant leadership roles in government and academia, expertise and service as a director on other public company boards including the board of a global asset manager.

&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Hindawi – our board of directors considered Mr. Hindawi's perspective, expertise and experience in significant leadership roles in the technology industry.

&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Kheirallah – our board of directors considered Mr. Kheirallah's perspective, expertise and experience in significant leadership roles in the financial services and investment management industries.

&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Lamotte – our board of directors considered Mr. Lamotte's perspective, expertise and experience in significant leadership roles in the financial services and investment management industries.

#### Controlled Company Exception
Upon completion of the combined transaction, ManagementCo, an entity managed by members of our senior management, will initially have voting power over % of our outstanding common stock (or % if the underwriters in the PSUS IPO exercise in full their option to purchase additional PSUS Shares as described in the accompanying PSUS Prospectus) and will also hold a Special Voting Share that will have voting power

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(which shall in no event be less than one vote) equal to that number of votes required, when taken together with the aggregate voting power of the shares of our common stock over which ManagementCo then has voting power, to give ManagementCo a majority of the aggregate voting power of the Special Voting Share and the then-outstanding shares of common stock. See "Description of Capital Stock—Preferred Stock—Special Voting Share." As a result, we will be a "controlled company" within the meaning of the corporate governance standards of the NYSE.

Under these corporate governance standards, a company of which more than 50% of the voting power is beneficially owned by an individual, group or another company is a "controlled company" and may elect not to comply with certain corporate governance standards, including the requirements that (1) a majority of its board of directors consist of independent directors, (2) its board of directors have a compensation committee that is composed entirely of independent directors with a written charter addressing the committee's purpose and responsibilities and (3) its board of directors have a nominating and corporate governance committee that is composed entirely of independent directors with a written charter addressing the committee's purpose and responsibilities.

Although we are permitted to rely on these exemptions from certain corporate governance standards, we intend that, at the time of the combined offering, a majority of our board of directors will consist of independent directors and our Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee each will be composed entirely of independent directors.

#### Board Committees
We anticipate that, prior to the completion of the combined offering, our board of directors will establish the following committees: an audit committee, a compensation committee and a nominating and corporate governance committee. The expected composition and responsibilities of each committee are described below. Our board of directors may also establish from time to time any other committees that it deems necessary or desirable. Members will serve on these committees until their resignation or until otherwise determined by our board of directors.

#### Audit Committee
Upon the completion of the combined offering, we expect our audit committee will consist of , and , with serving as chair. Our audit committee will be responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;• selecting and hiring our independent auditors and approving the audit and non-audit services to be performed by our independent auditors;

&nbsp;&nbsp;&nbsp;&nbsp;• assisting the board of directors in evaluating the qualifications, performance and independence of our independent auditors;

&nbsp;&nbsp;&nbsp;&nbsp;• assisting the board of directors in monitoring the quality and integrity of our financial statements and our accounting and financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;• assisting the board of directors in monitoring our compliance with legal and regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;• reviewing the adequacy and effectiveness of our internal control over financial reporting processes;

&nbsp;&nbsp;&nbsp;&nbsp;• overseeing our internal audit function;

&nbsp;&nbsp;&nbsp;&nbsp;• reviewing with management and our independent auditors our annual and quarterly financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;• establishing procedures for the receipt, retention and treatment of complaints received by us regarding accounting, internal accounting controls or auditing matters and the confidential, anonymous submission by our employees of concerns regarding questionable accounting or auditing matters; and

&nbsp;&nbsp;&nbsp;&nbsp;• preparing the audit committee report that the rules and regulations of the SEC require to be included in our annual proxy statement.

The SEC rules and the NYSE rules require us to have one independent audit committee member upon the listing of our common stock on the NYSE, a majority of independent directors within 90 days of the effective

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date of the registration statement and all independent audit committee members within one year of the effective date of the registration statement. , and qualify as independent directors under the NYSE listing standards and the independence standards of Rule 10A-3 of the Exchange Act. We will have a fully independent audit committee upon listing.

#### Compensation Committee
Upon the completion of the combined offering, we expect our compensation committee will consist of , and , with serving as chair. Our compensation committee will be responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving corporate goals and objectives relevant to the compensation of our CEO, evaluating our CEO's performance in light of those goals and objectives, and, either as a committee or together with the other independent directors (as directed by the board of directors), determining and approving our CEO's compensation level based on such evaluation;

&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving, or making recommendations to the board of directors with respect to, the compensation of our other executive officers, including annual base salary, bonus and equity-based incentives and other benefits;

&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and recommending the compensation of our directors;

&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and discussing annually with management our "Compensation Discussion and Analysis" disclosure to the extent required by SEC rules;

&nbsp;&nbsp;&nbsp;&nbsp;• preparing the compensation committee report to the extent required by the SEC to be included in our annual proxy statement; and

&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and making recommendations with respect to our equity compensation plans.

While we are electing to have a fully independent compensation committee even though it is not required, our compensation committee will not have oversight and control over all executive compensation decisions. Following the combined offering, a significant portion of our executives' compensation will be comprised of (i) Subordinated Performance Fees distributed by CompCo and (ii) certain interests of PS Partner Group that may become redeemable, subject to certain conditions, for shares of our common stock held by PS Partner Group. Both CompCo and PS Partner Group will be controlled by ManagementCo, not our board of directors. For additional information, see "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering."

#### Nominating and Corporate Governance Committee
Upon the completion of the combined offering, we expect our nominating and corporate governance committee will consist of , and , with serving as chair. The nominating and corporate governance committee will be responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;• assisting our board of directors in identifying prospective director nominees and recommending nominees to the board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;• overseeing the evaluation of the board of directors and management;

&nbsp;&nbsp;&nbsp;&nbsp;• reviewing developments in corporate governance practices and developing and recommending a set of corporate governance guidelines; and

&nbsp;&nbsp;&nbsp;&nbsp;• recommending members for each committee of our board of directors.

Our stockholders may provide suggestions for prospective director nominees to the chair of our nominating and corporate governance committee.

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#### Compensation Committee Interlocks and Insider Participation
We do not presently have a compensation committee. Decisions regarding the compensation of our executive officers have historically been made by Mr. Ackman in consultation with other members of our senior leadership. Upon the completion of the combined offering, the members of our compensation committee will be , and .

None of our executive officers serves as a member of the board of directors or the compensation committee (or other committee performing equivalent functions) of any other entity that has one or more executive officers serving on our board of directors or compensation committee.

#### Code of Ethics
We will adopt a new Code of Business Conduct and Ethics that applies to all of our officers, directors and employees, which will be posted on our website. We will also adopt a Code of Ethics for Senior Financial Officers, which will apply to certain of our financial professionals, including our principal executive officer, principal financial officer, principal accounting officer and controller, or persons performing similar functions, and will be posted on our website. Our Code of Ethics for Senior Financial Officers is a "code of ethics," as defined in Item 406(b) of Regulation S-K. We will make any legally required disclosures regarding amendments to, or waivers of, provisions of both the Code of Business Conduct and Ethics and the Code of Ethics for Senior Financial Officers on our website. The information contained on, or accessible from, our website is not part of this prospectus by reference or otherwise.

#### Director Compensation
Our board of directors will adopt a policy with respect to the compensation payable to our non-employee directors upon consummation of the combined offering pursuant to which each non-employee director will be eligible to receive annual compensation for his or her service in accordance with market practice.

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#### EXECUTIVE COMPENSATION
This discussion provides an overview of the material elements of our executive compensation program and provides a description of the compensation earned by our principal executive officer and our two other most highly compensated executive officers for the year ended December 31, 2025. These individuals are referred to as our "named executive officers."

#### Quarterly Profit-Sharing Distributions
We make quarterly profit-sharing distributions of available excess cash to each of our named executive officers in proportion to their respective profit-sharing percentages. Prior to the Holdco Reorganization, such distributions were comprised of separate allocations of profits arising from management fees received by PSCM and performance fees received by, or performance allocations to, PSCM and certain of its affiliates, including PSGP. As discussed below, effective as of the Holdco Reorganization, direct interests held by our personnel, including our named executive officers, in PSCM were contributed (indirectly) to Pershing Square Holdco, L.P. In lieu of holding direct interests in PSCM, our applicable personnel, including our named executive officers, received profits-interest awards in PS Partner Group in the same applicable profit-sharing percentages as they held in PSCM (subject to ordinary course changes in such allocations). As discussed below, such personnel also hold profit-sharing interests in CompCo. Accordingly, following the Holdco Reorganization, such distributions have been comprised of (i) proceeds received by PS Partner Group (pursuant to its ownership of limited partnership interests in Pershing Square Holdco, L.P.), (ii) PSGP's performance allocation (which it earns in connection with its services as the general partner to PSLP) and (iii) proceeds received by CompCo (pursuant to the Variable Compensation Agreement discussed below).

Such distributions are made pursuant to awards under our Long-Term Incentive Plan, dated April 17, 2017 (as amended from time to time, the "LTIP"). For Mr. Ackman, 100% of such distributions (excluding those from CompCo) were accounted for as capital distributions in 2025. For each of Messrs. Israel and Hakim, 25% of such distributions (excluding those from CompCo) were accounted for as capital distributions attributable to their Permanent Profits-Interests (as defined below) under the LTIP in 2025, while the remaining portion of these distributions were recorded as profit-sharing partner compensation. We do not account for capital distributions as compensation.

Accordingly, in addition to the amounts reflected in the table below, (i) Mr. Ackman received capital distributions in 2025 in the amount of $107,503,624, reflecting the full amount of his profit-sharing distributions and (ii) Messrs. Israel and Hakim received $5,258,059 and $2,119,686, respectively, in respect of their Permanent Profits-Interests. For additional information, see "—Narrative Disclosure to Summary Compensation Table—Long-Term Incentive Plan" below and Note 2, "Significant Accounting Policies" of the audited consolidated financial statements included elsewhere in this prospectus.

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#### Summary Compensation Table
The following table provides summary information concerning compensation earned by our named executive officers for the years ended December 31, 2024 and 2025.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and** <br>**Principal Position**  | **Year**  | **Salary** <br>**($)<sup>(1)</sup>**  | **Bonus** <br>**($)<sup>(1)</sup>** | **Stock** <br>**Awards ($)**  | **Option** <br>**Awards** <br>**($)<sup>(1)</sup>**  | **Non-Equity** <br>**Incentive Plan** <br>**Compensation** <br>**($)<sup>(1)</sup>**  | **All Other** <br>**Compensation** <br>**($)<sup>(2)</sup>**  | **Total** <br>**($)**  |
| &nbsp;&nbsp;&nbsp;William A. Ackman<br>*Chief Executive Officer* | 2025 |  |  |  |  |  | 142775160  | 142775160 |
|  | 2024 |  |  |  |  |  | &nbsp;&nbsp;46647594 | &nbsp;&nbsp;46647594 |
| &nbsp;&nbsp;&nbsp;Ryan Israel<br>*Chief Investment Officer* | 2025 |  |  |  |  |  | &nbsp;&nbsp;44045910  | &nbsp;&nbsp;44045910  |
|  | 2024 |  |  |  |  |  | &nbsp;&nbsp;27997302 | &nbsp;&nbsp;27997302 |
| &nbsp;&nbsp;&nbsp;Ben Hakim<br>*President*  | 2025 |  |  |  |  |  | &nbsp;&nbsp;17771413  | &nbsp;&nbsp;17771413 |

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(1)<br> We did not pay salaries or bonuses or grant option awards to our named executive officers in 2025.

(2) Includes distributions received under the LTIP from PS Partner Group, PSCM and PSGP, as applicable, in respect of 2025 for Messrs. Israel and Hakim of $15,774,176 and $6,359,057, respectively, in proportion to each officer's profit-sharing percentages thereunder (and not attributable to their Permanent Profits-Interests). Such distributions are recorded as profit-sharing partner compensation in our audited consolidated financial statements. 

Includes cash distributions received under the LTIP from CompCo in respect of 2025 for Messrs. Ackman, Israel and Hakim of $139,698,760, $28,261,234 and $11,401,856, respectively, in accordance with their respective profit-sharing percentages.

This column also includes the following amounts related to benefits and perquisites received by Mr. Ackman in 2025 (with each perquisite calculated based on the aggregate incremental cost to the Company, other than security services, which reflect the total cost incurred by the Company for such services, as described in greater detail below under "Narrative Disclosure to Summary Compensation Table—Security"): $40,000 related to public relations services; and $3,025,900 related to security services for the Company, Mr. Ackman and members of his family. Please refer to "Narrative Disclosure to Summary Compensation Table—Security" below for further details.

For each of our named executive officers, amounts also include $10,500 in Company contributions to our 401(k) savings plan in 2025.

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#### Narrative Disclosure to Summary Compensation Table

#### Long-Term Incentive Plan
PSCM acts as an investment manager providing management and administrative services to our funds in accordance with each of their investment management agreements. As compensation for services to our funds, PSCM receives quarterly management fees based on the Net Asset Value of the applicable fund. In addition, PSCM earns performance fees from certain funds for serving as their investment manager. Likewise, certain of our affiliates, including PSGP, receive performance allocations for serving as the general partner to certain of our funds. Performance fees and the performance allocation are generally based on the NAV appreciation of the applicable fund through the end of the fiscal year or upon capital withdrawals, above a high-water mark. The performance fees/allocations, if earned, are payable upon the occurrence of crystallization events, which generally include, but are not limited to, December 31 of each year, withdrawals from our private funds and PSH's payment of a dividend. For additional information, see Note 2, "Significant Accounting Policies" of the audited consolidated financial statements included elsewhere in this prospectus.

We have historically tied a significant portion of the compensation earned by certain partners (the "LTIP Partners"), including Messrs. Israel and Hakim, directly to the performance of the funds we manage, in the form of awards of participating profits interests under the LTIP (the "LTIP Awards").

LTIP Awards historically entitled the LTIP Partners to cash distributions of management fee-based and/or performance fee-based net profits earned by PSCM and applicable Pershing Square entities ("LTIP Entities") pursuant to the terms of their respective agreements and, subject to applicable vesting schedules, entitled them to a reduced percentage of their total LTIP Awards (the "Permanent Profits-Interests") following a Qualifying Termination (as defined below under "—Termination and Change of Control Provisions") in perpetuity (subject to permissible dilution and other terms of the LTIP). As of December 31, 2025, each of Messrs. Israel and Hakim have vested in their Permanent Profits-Interest to the maximum extent under the applicable vesting schedule.

The portion of an LTIP Partner's LTIP Awards attributable to their Permanent Profits-Interests represents a substantive class of equity, and distributions in respect of such Permanent Profits-Interests are recorded as capital distributions. The remaining portion of an LTIP Partner's LTIP Award is in substance a profit-sharing arrangement and is therefore recorded as profit-sharing partner compensation. Holders of LTIP Awards are also entitled to a portion of the consideration related to a Terminal Value Event as defined in the LTIP, including, but not limited to, a sale or transfer of all or any portion of equity interests in LTIP Entities, including through an initial public offering, as described further below under "—Termination and Change of Control Provisions."

Effective as of the Holdco Reorganization, direct interests held by our personnel, including our named executive officers, in PSCM were contributed (indirectly) to Pershing Square Holdco, L.P., and the LTIP was amended to cause such interests to cease to be considered LTIP Awards. In lieu of such direct interests in PSCM, our applicable personnel, including our named executive officers, received profits-interest awards, including LTIP Awards, in the same applicable profit-sharing percentages as they held in PSCM (subject to ordinary course changes in such allocations), in PS Partner Group. In addition, such personnel also hold profits-interests awards, including LTIP Awards, in CompCo, which entered into the Variable Compensation Agreement, dated as of May 31, 2024 (the "VCA"), attached hereto as Exhibit 10.9, with Pershing Square Holdco, L.P. and PSCM. Following the Holdco Reorganization and prior to the combined offering, PS Partner Group and our owners who previously held interests directly in PSCM own approximately 90% of the issued and outstanding limited partnership interests in Pershing Square Holdco, L.P. For 2025, distributions received by our named executive officers pursuant to the LTIP were primarily comprised of proceeds received by PS Partner Group (pursuant to its ownership of limited partnership interests in Pershing Square Holdco, L.P.), PSGP (which earns a performance allocation in connection with its services as the general partner to PSLP), and CompCo (pursuant to the VCA), which were distributed to their respective owners, including our named executive officers, in accordance with their respective profit-sharing percentages. The LTIP amendment provided that the interests in PS Partner Group and CompCo received by former holders of LTIP Awards in PSCM, including Messrs. Israel and Hakim, would be treated as LTIP Awards in those entities.

#### Variable Compensation Agreement
In connection with the Strategic Investment, we implemented an arrangement for the allocation of performance fee revenue from our funds and other investment vehicles as encapsulated in the VCA.

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The VCA has two primary purposes: (1) to provide the company with a preferred return-like entitlement of performance fees received by our principal operating subsidiary, PSCM and (2) to provide an important source of compensation for certain of our personnel, including our investment professionals, consistent with our historical practice of tying a significant portion of the compensation earned by such personnel, including our named executive officers, directly to the performance of the funds we manage. In furtherance of these purposes, the VCA provides for the following:

&nbsp;&nbsp;&nbsp;&nbsp;• we are entitled to receive from PSCM (directly or indirectly): (i) 100% of management fees earned from all our funds and HHH, minus any "offsettable management fees" which with respect to any fund (currently none but expected to include PSUS upon completion of the combined offering) refers to the portion of its management fees that are available to offset performance fees payable by PSH; and (ii) the following amounts with respect to certain funds we manage (our "Preferred Performance Fee" with respect to the applicable fund): (a) with respect to PSH, an amount equal to the 16% performance fee that would have been earned if PSH had experienced a "net of management fee" return of 5% per annum above its high-water mark; and (b) with respect to certain other funds subject to the VCA (currently only PSINTL), an amount equal to the applicable performance fee that would have been earned if such fund had experienced a "net of management fee" return of 5% per annum above its high-water mark minus any "offsettable performance fees" which with respect to such fund refers to the portion of such performance fee that would offset performance fees payable by PSH; and

&nbsp;&nbsp;&nbsp;&nbsp;• CompCo is entitled to receive from PSCM the following amounts, in each case solely to the extent such amount exceeds the Preferred Performance Fees we receive from PSCM (the "Subordinated Performance Fees"): (i) with respect to PSH, all performance fees received from PSH, inclusive of any portion of offsettable management fees (currently none) and offsettable performance fees (currently only PSINTL's) received from certain other funds subject to the VCA that would offset performance fees payable by PSH; and (ii) with respect to certain other funds subject to the VCA (currently only PSINTL), all performance fees received from such fund, exclusive of any offsettable performance fees that would offset performance fees payable by PSH.

The calculation of the Preferred Performance Fee that we are entitled to receive from any fund is not dependent on the actual amount of performance fees earned from such fund. However, the amount of Preferred Performance Fees actually distributed to us from PSCM will be limited by the performance fees (and applicable offsettable performance fees) that PSCM actually receives from the applicable fund. In the case of PSH, PSCM's performance fees are subject to a fee offset arrangement, as described above, that reduces the amount of performance fees paid by PSH based on management fees and performance fees earned from certain other funds, and a portion of such offsettable performance fees will be made available by PSCM to pay the Preferred Performance Fees with respect to PSH or will be paid to CompCo as Subordinated Performance Fees in case of any applicable excess above the payment of the Preferred Performance Fees with respect to PSH.

The Subordinated Performance Fees will be an important source of compensation for certain of our personnel, including all investment professionals, consistent with our historical practice of tying a significant portion of the compensation earned by such personnel, including our named executive officers, directly to the performance of the funds we manage. Any portion of the Preferred Performance Fee that we are entitled to receive from a fund that is not paid in a given period will accrue to the next period's Preferred Performance Fee for such fund until paid by such fund. Further, any Preferred Performance Fee with respect to one fund shall not be payable to us from the proceeds received from another fund. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Components of Our Results of Operations—Income—Performance Fees—Allocation of Performance Fee Revenue" for an illustration of our Preferred Performance Fee arrangement for the allocation of performance fee revenue over the six-year period ended December 31, 2025.

In connection with the combined offering, the VCA will be terminated and PSCM will issue the Preferred Profits Interest to us and the Subordinated Profits Interest to CompCo. In connection with this termination of the VCA, the offsettable management fees will no longer reduce our entitlement to 100% of the management fees earned from our funds and will no longer be made available by PSCM to pay the Preferred Performance Fees with respect to PSH or paid to CompCo as Subordinated Performance Fees in case of any applicable excess.

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Instead, the offsettable management fees will serve to reduce the Preferred Performance Fee which we are entitled to receive with respect to PSH by such amount. See "—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Variable Compensation Agreement and Subordinated Profits Interest."

#### Policies and Practices Related to the Timing of Equity Awards
We do not have a policy or practice in relation to the timing or the determination of the terms of a grant of options or other equity awards (including LTIP Awards) in relation to the disclosure of material nonpublic information by the Company. Any grants under our equity plans will be made in accordance with applicable laws and the applicable rules of the national securities exchange on which the Company may then list its common stock, including any such laws or rules relating to the timing of a grant of options or other awards in relation to the disclosure of material nonpublic information by the Company. We have not timed the disclosure of material nonpublic information for the purpose of affecting the value of our executive compensation.

#### Clawback Policy
We intend to adopt a compensation clawback policy to comply with SEC and stock exchange listing rules implementing the requirements of Dodd-Frank Wall Street Reform and Consumer Protection Act. Under the policy, we will be required in certain situations to recoup incentive-based compensation paid or payable to certain of our current or former executive officers, including our named executive officers, in the event of an accounting restatement.

#### Employee Benefits and Perquisites
In addition to the perquisites and benefits identified in the Summary Compensation Table above, our named executive officers are also eligible to receive the same benefits we provide, and to participate in all plans we offer, to our other full-time employees, including: health and dental insurance; group term life insurance; long-term disability insurance; other health and welfare benefits; and other voluntary benefits. We maintain a defined contribution savings plan under Section 401(k) of the U.S. Internal Revenue Code of 1986, as amended (the "Code"). All employees and profit-sharing partners are eligible to participate in the 401(k) plan. The 401(k) plan allows participants to invest in a variety of mutual funds across several fund families, and we make a safe harbor contribution in the amount of 3% of each participant's eligible compensation, subject to certain Code limitations. The safe harbor contribution is provided to employees and profit-sharing partners (including our named executive officers), regardless of whether they elect to contribute to the 401(k) plan.

#### Security
We believe that the personal safety and security of our senior executives is critical to the Company and its shareholders. Pursuant to our executive security program, we may provide security services to certain executives, which include home security systems and monitoring and, in some cases, personal security services, which may include protection of family members. These protections are provided due to the range of security issues and threats that have been and may continue to be encountered by our senior executives from time to time.

Additionally, based on an independent, third-party security study, the disinterested members of our board of directors intend to approve the provision of certain additional personal security services to Mr. Ackman due to heightened security considerations. Given Mr. Ackman's role as our chief executive officer, the enhanced media attention that Mr. Ackman is subject to, and the current threat landscape, the security study for Mr. Ackman recommended that Mr. Ackman use private aviation for all air travel, whether for personal, commuting, or business purposes. The security study also recommended the implementation of additional security measures for Mr. Ackman's travel in elevated-risk destinations.

We view the security services provided to Mr. Ackman, and any additional security services we may provide in the future for our other executive officers and employees, as an integral part of our risk management program and as necessary and appropriate business expenses. However, such services may be viewed as conveying a personal benefit to Mr. Ackman. The Company is unable to disaggregate the incremental cost of these services to Mr. Ackman. Accordingly, we have reported the total cost of such services to the Company in the "All Other Compensation" column of the Summary Compensation Table as required by Item 402 of Regulation S-K.

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#### Outstanding Equity Awards at December 31, 2025
As of December 31, 2025, there were no stock or option awards outstanding for each of Messrs. Ackman, Israel and Hakim.

#### Termination and Change of Control Provisions
As discussed above, effective as of the Holdco Reorganization, interests in PSCM are no longer considered LTIP Awards and no interests in Pershing Square Holdco, L.P. are considered LTIP Awards, and upon consummation of the combined offering, we (i.e., Pershing Square Inc. and its consolidated subsidiaries, including PSCM) will not be subject to the LTIP, which will continue to apply to certain other entities. See "—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—LTIP."

Except as provided under the LTIP, none of our named executive officers are currently party to any arrangement that provides for severance benefits. See "—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—LTIP."

As described above, PSCM (including on behalf of its affiliates) maintained the LTIP under which Messrs. Israel and Hakim (along with certain other key employees) were issued a certain number of LTIP Awards. Under the LTIP, each participant is entitled to, with respect to LTIP Entities, (i) certain cash distributions of management fee-based and performance fee-based net profits following the participant's Qualifying Termination and (ii) additional consideration payable in connection with certain corporate transactions (referred to as "Terminal Value Events"), each as further described below.

Pursuant to the LTIP, if a participant is terminated without "cause," by the participant for "good reason," as a result of death/disability, or as a result of a qualifying retirement (each, a "Qualifying Termination"), the participant is entitled to the following (the "Termination Benefit") with respect to LTIP Entities: (i) a certain percentage (the "Applicable Percentage") of performance fee-based net profits with respect to the calendar year of such termination (the "Termination Year") in respect of the participant's applicable LTIP Awards held immediately prior to such participant's termination of employment, (ii) the portion of management fee-based net profits allocated to such participant on or prior to the participant's termination date in respect of the participant's LTIP Awards, and (iii) management fee-based net profits with respect to the participant's Permanent Profits-Interests for the remaining calendar quarters of the Termination Year. The "Applicable Percentage" is the greater of (x) the number of days the participant was employed during the Termination Year divided by 365, and (y) 33.33% or, for certain LTIP Partners, including Messrs. Israel and Hakim, 25% in the case the participant is terminated as a result of retirement. For purposes of the LTIP, "good reason" generally means (i) a material and not temporary (*e.g.,* as opposed to a project or a period where an employee otherwise reporting to such LTIP Partner would report to someone else at Pershing Square) reduction of the LTIP Partner's duties, authorities, responsibilities, reporting relationships, role or position, (ii) a change in the geographic location of our principal office or the LTIP Partner's principal place of employment to a location more than fifty (50) miles outside of New York City, and/or (iii) our material breach of the LTIP.

Upon a participant's Qualifying Termination, such participant's LTIP Awards convert into a combination of "Permanent Profits-Interests" and "Sunset Profits-Interests," pursuant to a formula set forth in the LTIP. In addition to the Termination Benefit, following a Qualifying Termination each participant is entitled to receive with respect to the LTIP Entities (i) a portion of the performance fee-based net profits for the first three years following termination in respect of both the Sunset Profits-Interests and Permanent Profits-Interests, and then, thereafter, only with respect to Permanent Profits-Interests, and (ii) a portion of the management fee-based net profits each year following the participant's Qualifying Termination with respect to Permanent Profits-Interest only.

The LTIP also entitles participants to consideration in connection with a "Terminal Value Event" with respect to LTIP Entities. A "Terminal Value Event" is generally defined as any sale or transfer of all or any portion of the LTIP Entity's equity interests, other than the issuance of profits-interests awards, or an initial public offering, merger, consolidation, or similar transaction, a sale of assets (e.g., advisory agreements), or any other similar transaction involving or relating to the LTIP Entity and a third party. Participants who are employed at the time of the Terminal Value Event (or who were terminated without "cause" or for "good reason" within twelve months prior) are entitled to consideration in connection with the Terminal Value Event with respect to the LTIP Entities, which is generally equal to a portion of the upside in value of the applicable LTIP Entity involved in the transaction. For participants who are employed at the time of a Terminal Value Event, the participant participates in each Terminal Value Event with respect to the Permanent Profits-Interests he or she

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would have been entitled to receive with respect to the LTIP Entity if terminated without "cause" on the date of the Terminal Value Event, or (B) for participants who have been terminated without "cause" or who terminated for "good reason" within 12 months prior to the Terminal Value Event, the participant participates in each the Terminal Value Event with respect to his or her Permanent Profits-Interests with respect to the LTIP Entity outstanding at such time, in each of cases (A) and (B) multiplied by a certain "TVE Tenure Factor" (which ranges from 1.0 to 1.333 based on years of service).

#### Pension Benefits and Non-Qualified Deferred Compensation
Our named executive officers do not participate in any pension or non-qualified deferred compensation plans and received no pension benefits or non-qualified deferred compensation during the year ended December 31, 2025.

#### Compensation Arrangements To Be Adopted in Connection with the Combined Offering

#### LTIP
In connection with the combined offering, the LTIP will be amended. The amendment of the LTIP will be described in a subsequent pre-effective amendment to the registration statement of which this prospectus forms a part.

#### Redeemable Interests in PS Partner Group
In connection with the combined offering, certain of our senior professionals will receive interests in PS Partner Group that may become redeemable, subject to certain conditions, for shares of our common stock held by PS Partner Group. More information on such redeemable interests in PS Partner Group will be described in a subsequent pre-effective amendment to the registration statement of which this prospectus forms a part.

#### Variable Compensation Agreement and Subordinated Profits Interest
In connection with the combined offering, the VCA will be terminated and PSCM will issue a profits interest to us (the "Preferred Profits Interest") and to CompCo (the "Subordinated Profits Interest"). The terms of the Preferred Profits Interest and the Subordinated Profits Interest will generally provide for the same calculation of Preferred Performance Fees and Subordinated Performance Fees, and same allocation of such fees between us and CompCo, as currently provided by the VCA. However, the offsettable management fees will no longer reduce our entitlement to 100% of the management fees earned from our funds and will no longer be made available by PSCM to pay the Preferred Performance Fees with respect to PSH or paid to CompCo as Subordinated Performance Fees in case of any applicable excess, as currently contemplated under the VCA. Instead, the offsettable management fees will serve to reduce the Preferred Performance Fee which we are entitled to receive with respect to PSH by such amount.

CompCo will be controlled by ManagementCo, not our board of directors. Accordingly, neither our Compensation Committee nor our stockholders will have control over compensatory decisions made by CompCo. For further information, see "Summary—Reorganization Transactions—Corporate Conversion" and "Summary—Implications of Being a Controlled Company."

#### Equity Incentive Plan
Our board of directors expects to adopt, and we expect our stockholders to approve, the Equity Incentive Plan prior to the completion of the offering, in order to provide a means through which we intend to attract, retain and motivate key personnel and to align their interests with those of our stockholders. Awards under the Equity Incentive Plan may be granted to any (i) individual employed by us or our subsidiaries; (ii) director or officer of us or our subsidiaries; or (iii) consultant or advisor to us or our subsidiaries who may be offered securities registrable pursuant to a registration statement on Form S-8 under the Securities Act (or, for consultants or advisors outside of the U.S., may be offered securities consistent with the applicable law). The Equity Incentive Plan will generally be administered by the Compensation Committee or such other committee of our board of directors to which it has properly delegated power, or if no such committee or subcommittee exists, our board of directors (as applicable, the "Committee"), subject to the right of the Committee to delegate all or any portion of its authority to one or more of officers (subject to certain limitations).

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The Equity Incentive Plan reserves 20,000,000 shares for issuance and has a term of 10 years from the date of its adoption (unless earlier terminated by our board of directors pursuant to its terms).

All awards granted under the Equity Incentive Plan will vest and/or become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee. Awards available for grant under the Equity Incentive Plan include non-qualified stock options and incentive stock options, restricted shares of our common stock, restricted stock units, or other equity-based awards tied to the value of our shares.

Awards are generally subject to adjustment in the event of (i) any dividend (other than regular cash dividends) or other distribution, recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, split-off, spin-off, combination, repurchase or exchange of shares of common stock or other securities, issuance of warrants or other rights to acquire shares of common stock or other securities, or other similar transactions or events (including a change in control of the Company), or (ii) unusual or nonrecurring events affecting the Company, including changes in applicable rules, rulings, regulations or other requirement. In addition, in connection with any change in control, the Committee may, in its sole discretion, provide for any one or more of the following: (i) a substitution or assumption of, acceleration of the vesting of, the exercisability of, or lapse of restrictions on, any one or more outstanding awards and (ii) cancellation of any one or more outstanding awards and payment to the holders of such awards that are vested as of such cancellation (including any awards that would vest as a result of the occurrence of such event but for such cancellation) the value of such awards, if any, as determined by the Committee.

Our board of directors may amend, alter, suspend, discontinue, or terminate the Equity Incentive Plan or any portion thereof at any time, but no such amendment, alteration, suspension, discontinuance or termination may be made without stockholder approval if (i) such approval is required under applicable law; (ii) it would materially increase the number of securities which may be issued under the Equity Incentive Plan (except for increases in connection with certain corporate events); or (iii) it would materially modify the requirements for participation in the Equity Incentive Plan. Any such amendment, alteration, suspension, discontinuance or termination that would materially and adversely affect the rights of any participant or any holder or beneficiary of any award will not to that extent be effective without such individual's consent.

All awards granted under the Equity Incentive Plan are subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with (i) any clawback, forfeiture or other similar policy adopted by our board of directors or the Compensation Committee and as in effect from time to time and (ii) applicable law or listing exchange requirement.

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#### DIRECTOR COMPENSATION
Each independent director on the board of directors of the general partner to Pershing Square Holdco, L.P. currently receives a quarterly cash retainer of $75,000. Directors are also reimbursed for reasonable out-of-pocket expenses incurred in connection with the performance of their duties as directors, including travel expenses in connection with their attendance in-person at board and committee meetings. The following table provides summary information concerning compensation paid or accrued by us to or on behalf of our independent directors during 2025. None of the directors included in the table below had any stock or option awards outstanding as of December 31, 2025.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name<sup>(1)</sup>** | **Fees Earned** <br>**or Paid in** <br>**Cash** <br>**($)** | **Stock** <br>**Awards** <br>**($)** | **Option** <br>**Awards** <br>**($)** | **Non-Equity** <br>**Incentive Plan** <br>**Compensation** <br>**($)** | **Non-Qualified** <br>**Deferred** <br>**Compensation** <br>**Earnings** <br>**($)** | **All Other** <br>**Compensation** <br>**($)** | **Total** <br>**($)**  |
| &nbsp;&nbsp;David Coppel Calvo<sup>(2)</sup> | &nbsp;&nbsp;294167 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 294167  |
| Kerry Murphy Healey | &nbsp;&nbsp;300000 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 300000  |
| Orion Hindawi | &nbsp;&nbsp;300000 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 300000  |
| Marco Kheirallah | &nbsp;&nbsp;300000 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 300000  |
| Nicholas M. Lamotte | &nbsp;&nbsp;300000 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 300000 |
| Christine Todd<sup>(3)</sup> | &nbsp;&nbsp;&nbsp;6667 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;6667 |

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(1)<br> Our executive directors, including Messrs. Ackman, Hakim and Israel and Ms. Coussin, were not separately compensated for their service on the board.

(2)<br> Mr. Coppel Calvo joined the board on January 29, 2025.

(3)<br> Ms. Todd departed from the board on January 8, 2025.

As described in "Summary—Reorganization Transactions," prior to the effectiveness of each of this registration statement and the PSUS Registration Statement, Pershing Square Holdco, L.P. will convert into a Nevada corporation pursuant to a statutory conversion and change its name to Pershing Square Inc., and the board of directors (and members thereof) of the general partner to Pershing Square Holdco, L.P. will become the board of directors (and members thereof) of Pershing Square Inc.

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#### CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS
The agreements described in this section, or forms of such agreements as they will be in effect at the time of the combined offering, are filed as exhibits to the registration statement of which this prospectus forms a part, and the following descriptions are qualified by reference thereto.

#### Howard Hughes Transaction
On May 5, 2025, we entered into the Share Purchase Agreement and related agreements with HHH in connection with the Howard Hughes Transaction. See "Business" for more information regarding the transaction.

#### Corporate Conversion
Prior to the completion of the combined offering, we will complete the Corporate Conversion described in "Summary—Reorganization Transactions—Corporate Conversion." See "Principal Stockholders" for information regarding the number of shares of our common stock that will be held by our Founder and other directors and officers following the combined offering.

#### Registration Rights Agreements
In connection with the combined offering, we will enter into a registration rights agreement with ManagementCo. This agreement will provide for customary "demand" registrations and "piggyback" registration rights. This registration rights agreement also will provide that we will pay certain expenses relating to such registrations and indemnify such registration rights holders against (or make contributions in respect of) certain liabilities which may arise under the Securities Act.

In connection with the Strategic Investment, our pre-IPO owners, including the Strategic Investors, were granted certain "demand" and "piggyback" registration rights and were also entitled to have us pay certain expenses relating to such registrations and entitled to indemnification rights against certain liabilities which may arise under the Securities Act. In connection with the combined offering, we will enter into an additional registration rights agreement with such pre-IPO owners memorializing the foregoing and the right for a majority in interest of the Strategic Investors, until the first anniversary of the combined offering, upon the resignation or removal from our board of directors of Mr. Lamotte, to nominate one director to our board of directors for so long as the Strategic Investors, collectively, beneficially own shares of our common stock representing an investment in us that is equal to at least two-thirds of their collective investment in Pershing Square Holdco, L.P. as of the closing date of the Strategic Investment.

#### Other Transactions

#### Fee Waivers and Rebates
We waive management and performance fees on investments in our private funds by our employees and their affiliates. We have also historically rebated management and performance fees attributable to shares of PSH held by our employees and their affiliates. Following the Holdco Reorganization, we ceased to provide these rebates, which were continued instead by PS Partner Group and CompCo. For the year ended December 31, 2025, the affiliates fee rebate was $77,579,860 (2024: $69,300,950). Following the combined offering, PS Partner Group and CompCo will no longer rebate the fees of employees invested in PSH.

#### Subordinated Performance Fees
In connection with the Strategic Investment, we implemented an arrangement for the allocation of performance fee revenue from our funds and other investment vehicles pursuant to the VCA. This arrangement increases the certainty and predictability to Pershing Square Inc. of performance-related revenue and provides an important source of compensation for our investment professionals. Under the VCA, Pershing Square Inc. retains the Preferred Performance Fees—generally, the annual performance fees from each fund earned on the first five percentage points of return net of the management fee—and pays the balance of performance fees—the Subordinated Performance Fees—to CompCo, an entity that compensates its members (including our investment professionals and certain other employees). CompCo is controlled by ManagementCo, and certain of our personnel, including each of our executive officers, hold profit-sharing interests in CompCo. For further information on the ownership structure of CompCo and ManagementCo, see "Summary—Reorganization

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Transactions—Corporate Conversion." In connection with the combined offering, the VCA will be terminated and PSCM will issue the Preferred Profits Interest to us and the Subordinated Profits Interest to CompCo. For further information, see "Executive Compensation—Compensation Arrangements To Be Adopted in Connection with the Combined Offering—Variable Compensation Agreement and Subordinated Profits Interest."

For the year ended December 31, 2025, the second year in which our Preferred Performance Fee arrangement for the allocation of performance fee revenue was in effect, PSCM made aggregate distributions to CompCo of Subordinated Performance Fees, which were in turn distributed by CompCo to our investment professionals and certain other employees, of $385,350,074 (2024: $136,618,188), which amount is included in profit-sharing partner compensation in our consolidated statements of operations.

#### Corporate Aircraft
Prior to December 20, 2024, we owned a corporate aircraft that was used by our leadership team for business-related travel. The initial cost of the aircraft was $46,027,163. From time to time, Mr. Ackman made personal use of the aircraft. In such cases, we were reimbursed for that portion of the aircraft's operating expenses. For the year ended December 31, 2024, Mr. Ackman agreed to reimburse us $701,578 for that portion of the aircraft's operating expenses, which amount has been paid. As of December 31, 2025, $0 (2024: $1,121) of the reimbursed expenses remained outstanding and unpaid.

On December 20, 2024, ownership of our corporate aircraft was transferred to WAFH V LLC (the "Trust"), the beneficial owner of which is an entity wholly owned by Mr. Ackman. In connection with this transfer, the associated aircraft note (as described in Note 6 to the audited consolidated financial statements included elsewhere in this prospectus) with a carrying amount of $9,774,534 was transferred to the Trust. Accordingly, following such date, we no longer incur aircraft operating expenses arising from Mr. Ackman's personal use of this aircraft (or are reimbursed by Mr. Ackman for his personal use of such aircraft).

Concurrently with such transfer, we entered into an Aircraft Lease Agreement (the "Aircraft Lease Agreement") with the Trust, pursuant to which we lease the aircraft for business purposes on an as-needed basis on a fixed hourly rate. The Aircraft Lease Agreement has an initial term of six months and renews for successive six month periods unless terminated by either party upon 30 days' notice. For the year ended December 31, 2025, $850,098 (2024: $8,781) of payments to the Trust related to the use of the aircraft had been made under the Aircraft Lease Agreement, which amount is included in general and administrative expense in our consolidated statements of operations.

While the Trust remains responsible for the aircraft's fixed costs, we are responsible for variable costs and incidental expenses associated with use of the aircraft. To facilitate aircraft operations, we entered into a Pilot and Flight Services Agreement with Executive Jet Management, Inc. ("EJM"), pursuant to which EJM provides pilot staffing, flight crew, and other flight management services. For the year ended December 31, 2025, we paid $1,026,586 (2024: $5,243) to EJM for services rendered under this agreement.

#### Office Space Sublease
Mr. Ackman is a partial owner of NEOX Public Benefit LLC (the "Subtenant"), which subleases a portion of our office space. The sublease commenced on December 5, 2022, with rent payments commencing on May 1, 2023 following five months of rent abatement, and expires on December 31, 2033. For the year ended December 31, 2025, the Subtenant paid $2,919,044 (2024: $2,499,409) in rent and $597,485 (2024: $648,317) for office-related services, which amounts are both included in other income in our consolidated statements of operations. In addition, the landlord has agreed to pay us an amount of $1,660,000 for the reimbursement of certain costs incurred by the Subtenant, which we are expected to pay directly to the Subtenant within 30 days following receipt of such reimbursement. Prior to the combined offering, we intend to terminate our sublease arrangement with Subtenant who will enter into a direct relationship with the landlord and we will no longer receive the related income or bear the associated lease expense, although Subtenant may continue the use of certain office-related services for which we will continue to receive certain related income.

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#### Office Space License
Mr. Ackman's family office, TABLE Management, L.P. ("TABLE") licenses a portion of our office space under a license agreement which also grants TABLE the use of certain office-related services. For the year ended December 31, 2025, TABLE paid $1,179,477 for office space (2024: $1,129,046) and $536,319 (2024: $688,590) for office-related services under the license agreement, which amounts are both included in other income in our consolidated statements of operations.

#### Ownership in Landlord Entity
Mr. Ackman and his affiliates indirectly own 50% of Georgetown Eleventh Avenue Owners, LLC, the owner of the building in which we rent office space. For the year ended December 31, 2025, we paid approximately $6,561,075 (2024: $6,641,725) in rent to Georgetown Eleventh Avenue Owners, LLC.

#### Strategic Investment
As set forth in the table below, each of Messrs. Coppel Calvo, Hindawi, Kheirallah and Lamotte and Dr. Healey invested in the Strategic Investment, either individually or through an investment vehicle or trust.

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| | | |
|:---|:---|:---|
| **Director**  | **Investment Size**  | **Interest**  |
| David Coppel Calvo | $70 million  | Direct or indirect ownership of 16% of Pacat LP., which invested in the Strategic Investment.<sup>(1)</sup>  |
| Kerry Murphy Healey | $2 million  | Individual.  |
| Orion Hindawi | $5 million  | 100% beneficial owner of an irrevocable trust that invested in the Strategic Investment.  |
| Marco Kheirallah | $6 million  | 65% beneficial owner of SIP Capital Fund Ltd., which invested in the Strategic Investment.  |
| Nicholas M. Lamotte | $200 million  | Executive Chairman of Consulta Limited, the investment manager of Consulta SPV II, LP. Consulta SPV II, LP invested in the Strategic Investment.<sup>(2)</sup> |

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(1)<br> Certain of Mr. Coppel Calvo's immediate family members also directly or indirectly own interests in Pacat LP.

(2) Mr. Lamotte and certain members of his immediate family may be deemed to be the beneficial owners of Consulta SPV II, LP by virtue of their beneficial ownership interests in the entity and in Consulta Limited. Mr. Lamotte and his immediate family disclaim beneficial ownership of the securities held by Consulta SPV II, LP except to the extent of their pecuniary interest therein.

#### Our Right To Acquire PSH Shares
Our Founder, Mr. Israel, a former employee and certain of their affiliates (the "Subject PSH Shares Holders") directly or indirectly hold an aggregate of 46,265,743 public shares of PSH (the "Subject PSH Shares"). We entered into an agreement (the "PSH Share Agreement") with the Subject PSH Shares Holders whereby we have the right, but not the obligation, on the terms and subject to the conditions provided in the PSH Share Agreement, to acquire the Subject PSH Shares (or in the case of any Subject PSH Shares held through a holding entity, 100% of the issued and outstanding ownership interests of such holding entity) at any time after the ninth anniversary of the Corporate Conversion and on or before the tenth anniversary of the Corporate Conversion in exchange for shares of Pershing Square Inc. common stock. For purposes of determining the number of shares of our common stock to be issued to the Subject PSH Share Holders in the event we elect to exercise this right, (i) the Subject PSH Shares (and/or the holding entities holding such shares, as applicable) will be valued at a price per share equal to the volume-weighted average price per share of PSH as reported on the London Stock Exchange over the twenty trading-day period ending on the exercise date, and (ii) shares of our common stock will be valued at a price per share equal to the volume-weighted average price per share as reported on the NYSE over the twenty trading-day period ending on the exercise date. The value of any entity holding Subject PSH Shares shall be the value of such shares using the foregoing valuation methodology (i) increased by the amount of any cash held by such entity arising from dividends on the Subject PSH Shares and (ii) decreased by the amount of any accrued tax liability for income realized from dividends on the Subject PSH Shares.

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We may exercise our right at any time during the one-year period immediately preceding the tenth anniversary of the Corporate Conversion. The PSH Share Agreement restricts transfers of the Subject PSH Shares prior to the exercise or expiry of our right, subject to certain exceptions for permitted transfers. The PSH Share Agreement conditions our right to acquire the Subject PSH Shares, among other things, on our ability to effect such acquisition in a manner that generally will be tax-free for U.S. federal income tax purposes to the Subject PSH Shares Holders and in a manner that will not result in a change of control under certain bond indentures of PSH. Any decision by us to exercise our right to acquire the Subject PSH Shares would be subject to our related person transaction policy described below in "—Statement of Policy Regarding Transactions with Related Persons."

#### Other
PS Holdco and PS Partner Group elected to be subject to both the New York State and New York City Pass-Through Entity Tax (together, "PTET") for the year ended December 31, 2025, and PSCM made the same elections for the year ended December 31, 2024. PTET grants eligible partners a tax credit on their individual New York State and New York City income tax returns, and any PTET owed is a joint liability of (i) PS Holdco or PS Partner Group and (ii) each partner. For the year ended December 31, 2025, PS Holdco and PS Partner Group made PTET payments totaling $32,937,551 (2024: $71,304,813) on behalf of our partners. These PTET payments were recorded, as applicable, in profit-sharing partner compensation and/or capital distributions according to each partner's participation in the LTIP. For Mr. Ackman, PTET payments were recorded as capital distributions. As of December 31, 2025, PTET accruals of $10,104,536 and $3,224,380 (2024: $8,736,219 and $3,263,171) were recorded in distributions payable to partners and accrued compensation and benefits, respectively. As a result of the Corporate Conversion, we will not incur any PTET liability following the combined offering.

#### Statement of Policy Regarding Transactions with Related Persons
Prior to the completion of the combined offering, our board of directors will adopt a written statement of policy regarding transactions with related persons, which we refer to as our "related person policy." Our related person policy requires that a "related person" (as defined in paragraph (a) of Item 404 of Regulation S-K) must promptly disclose to our chief legal officer any "related person transaction" (defined as any transaction that is anticipated would be reportable by us under Item 404(a) of Regulation S-K in which we were or are to be a participant and the amount involved exceeds $120,000 and in which any related person had or will have a direct or indirect material interest) and all material facts with respect thereto. Our chief legal officer will then promptly communicate that information to our audit committee. No related person transaction entered into following the combined offering will be executed without the approval or ratification of our board of directors or a duly authorized committee of our board of directors. It is our policy that directors interested in a related person transaction will recuse themselves from any vote on a related person transaction in which they have an interest.

#### Indemnification of Directors and Officers
Our bylaws provide that we will indemnify our directors and officers to the fullest extent permitted by Nevada law, subject to limited exceptions. In addition, our articles of incorporation will limit the individual liability of our directors and officers to the fullest extent permitted by Nevada law. We also intend to enter into indemnification agreements with our directors and executive officers. These agreements will require us to indemnify these individuals to the fullest extent permitted under Nevada law against liabilities that may arise by reason of their service to us, and to advance expenses, including attorneys' fees, incurred by them in defending against proceedings to which they are or are threatened to be made a party or participant, subject to limited exceptions. There is no pending litigation or proceeding naming any of our directors or officers to which indemnification is being sought, and we are not aware of any pending or threatened litigation that may result in claims for indemnification by any director or officer.

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#### PRINCIPAL STOCKHOLDERS
The following table sets forth information regarding the beneficial ownership of shares of our common stock by (1) each person known to us to beneficially own more than 5% of our outstanding common stock, (2) each of our directors and named executive officers and (3) all of our directors and executive officers as a group.

This beneficial ownership information is presented after giving effect to the Reorganization Transactions, including the Corporate Conversion. Information is provided with respect to the amount and percentage of shares of common stock immediately before the combined transaction and following the issuance of our common stock in the combined transaction, assuming no exercise of the option of the underwriters in the PSUS IPO to purchase additional PSUS Shares and, separately, assuming full exercise of the option of the underwriters in the PSUS IPO to purchase additional PSUS Shares.

The amounts and percentages of shares beneficially owned are reported on the basis of SEC regulations governing the determination of beneficial ownership of securities. Under SEC rules, a person is deemed to be a "beneficial owner" of a security if that person has or shares voting power or investment power, which includes the power to dispose of or to direct the disposition of such security. A person is also deemed to be a beneficial owner of any securities of which that person has a right to acquire beneficial ownership within 60 days. Securities that can be so acquired are deemed to be outstanding for purposes of computing such person's ownership percentage, but not for purposes of computing any other person's percentage. Under these rules, more than one person may be deemed to be a beneficial owner of the same securities and a person may be deemed to be a beneficial owner of securities as to which such person has no economic interest.

Except as otherwise indicated in the footnotes below, each of the beneficial owners has, to our knowledge, sole voting and investment power with respect to the indicated shares. Unless otherwise noted, the address of each beneficial owner is c/o Pershing Square Inc., 787 Eleventh Avenue, 9th Floor, New York, New York 10019.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name of Beneficial Owner**  | **Before the** <br>**Combined** <br>**Transaction** | **Before the** <br>**Combined** <br>**Transaction** | **After the Combined** <br>**Transaction if the** <br>**Underwriters' Option in** <br>**the PSUS IPO Is Not** <br>**Exercised**  | **After the Combined** <br>**Transaction if the** <br>**Underwriters' Option in** <br>**the PSUS IPO Is Not** <br>**Exercised**  | **After the Combined** <br>**Transaction if the** <br>**Underwriter' Option in** <br>**the PSUS IPO Is Exercised**  | **After the Combined** <br>**Transaction if the** <br>**Underwriter' Option in** <br>**the PSUS IPO Is Exercised**  |
|  | **Number of** <br>**Common** <br>**Stock**  | **% of** <br>**Common** <br>**Stock**  | **Number of** <br>**Common** <br>**Stock**  | **% of** <br>**Common** <br>**Stock**  | **Number of** <br>**Common** <br>**Stock** <br>| **% of** <br>**Common** <br>**Stock**  |
| **5% beneficial owners:** <br>|  |  |  |  |  |  |
| PS Holdco GP Managing Member, LLC<sup>(1)</sup>  |  |  |  |  |  |  |
| **Directors and named executive officers:** <br>|  |  |  |  |  |  |
| William A. Ackman  |  |  |  |  |  |  |
| Ryan Israel  |  |  |  |  |  |  |
| Halit Coussin  |  |  |  |  |  |  |
| Ben Hakim  |  |  |  |  |  |  |
| David Coppel Calvo |  |  |  |  |  |  |
| Kerry Murphy Healey |  |  |  |  |  |  |
| Orion Hindawi |  |  |  |  |  |  |
| Marco Kheirallah |  |  |  |  |  |  |
| Nicholas M. Lamotte |  |  |  |  |  |  |
| All directors and executive officers as a group (10 persons)  |  |  |  |  |  |  |

---

\* Represents less than 1%. 

(1) PS Holdco GP Managing Member, LLC ("ManagementCo") will also be the sole holder of a Special Voting Share. The Special Voting Share will have no economic rights but will have voting power (which shall in no event be less than one vote) equal to that number of votes required, when taken together with the aggregate voting power of the shares of our common stock over which ManagementCo then has voting power, to give ManagementCo a majority of the aggregate voting power of the Special Voting Share and the then-outstanding shares of common stock. Because the shares of our common stock over which ManagementCo will initially have voting power will provide it with in excess of a simple majority of the voting power of the outstanding shares of our common stock, the Special Voting Share will initially provide only a single additional vote to ManagementCo. Control over the voting and dispositive power of ManagementCo is shared among its members consisting of our Founder, Ryan Israel, Ben Hakim, Michael Gonnella, Anthony Massaro and Halit Coussin.

If the offering size of the PSUS IPO increases or decreases by $100 million, the percentage of our common stock beneficially owned by PS Holdco GP Managing Member, LLC, Mr. Ackman, and all of our directors and executive officers as a group, respectively, would decrease or increase, as applicable, by %, % and %, respectively, (or %, % and % if the underwriters in the PSUS IPO exercise in full their option to purchase additional PSUS Shares).

For information relating to our material relationships and related person transaction with our principal stockholders, see the section titled "Certain Relationships and Related Person Transactions."

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#### DESCRIPTION OF CAPITAL STOCK
The following is a description of the material terms of, and is qualified in its entirety by, our articles of incorporation and bylaws, as each will be in effect upon the consummation of the combined offering, the forms of which are filed as exhibits to the registration statement of which this prospectus forms a part. Under "Description of Capital Stock," "we," "us," "our," and "our company" refer to Pershing Square Inc. and not to any of its subsidiaries.

Our purpose is to engage in any lawful act or activity for which corporations may be organized under the NRS. Upon the consummation of the combined offering, our authorized capital stock will consist of 1,000,000,000 shares of common stock, par value $0.001 per share, and 100,000,000 shares of preferred stock, par value $0.001 per share, of which one (1) share is designated as the Special Voting Share. Unless our board of directors determines otherwise, we will issue all shares of our capital stock in uncertificated form.

#### Common Stock
In general, holders of shares of our common stock are entitled to one vote for each share held of record on all matters on which stockholders are entitled to vote generally, including the election or removal of directors. If at any time any person or group (other than ManagementCo or any person of which ManagementCo, or a wholly owned subsidiary of ManagementCo, serves as general partner or managing member or holds a majority by voting power of the interests entitled to vote generally in the election of the board of directors, managers or equivalent governing body of such person) directly or indirectly controls shares of our common stock representing more than 24.9% of the aggregate total votes to which the outstanding shares of common stock and the Special Voting Share would otherwise entitle their holders, then the shares of common stock in excess of such percentage directly or indirectly controlled by such person or group will not be entitled to vote on any matter and will not be considered to be outstanding when sending notices of a meeting of stockholders to vote on any matter (unless otherwise required by law), calculating required votes, determining the presence of a quorum or for other similar purposes under our articles of incorporation.

The holders of our common stock do not have cumulative voting rights in the election of directors.

Holders of shares of our common stock are entitled to receive dividends or other distributions when, as and if declared by our board of directors out of funds legally available therefor, subject to any statutory or contractual restrictions on the payment of dividends or other distributions and to the rights of the holders of any outstanding series of our preferred stock.

Upon our liquidation, dissolution or winding up and after payment in full of all amounts required to be paid to creditors, and subject to the rights of the holders of any outstanding series of preferred stock, the holders of shares of our common stock will be entitled to receive pro rata our remaining assets available for distribution to stockholders.

All shares of our common stock that will be outstanding at the time of the completion of the combined offering will be fully paid and non-assessable. The common stock will not be subject to further calls or assessments by us. Holders of shares of our common stock do not have preemptive, subscription, redemption or conversion rights. There will be no redemption or sinking fund provisions applicable to the common stock. The rights, powers, preferences and privileges of holders of our common stock will be subject to those of the holders of any shares of our preferred stock or any other series or class of stock we may authorize and issue in the future.

Our articles of incorporation will provide that shares of our common stock held by our pre-IPO owners may not be sold until the first anniversary of the combined offering.

#### Preferred Stock

#### Special Voting Share
Our articles of incorporation will designate one share of our authorized preferred stock as the Special Voting Share. The Special Voting Share will have voting power (which shall in no event be less than one vote) equal to that number of votes required, when taken together with the aggregate voting power of the shares of our

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common stock over which the holder then has voting power, to give the holder a majority of the aggregate voting power of the Special Voting Share and the then-outstanding shares of common stock. The Special Voting Share will vote together with our common stock as a single class, except as otherwise required by law or our articles of incorporation.

Following completion of the combined offering, ManagementCo, an entity managed by members of our senior management, will hold the one (1) issued and outstanding Special Voting Share. Subject to applicable law, the Special Voting Share shall not be transferable by ManagementCo except to us.

The holder of our Special Voting Share does not have any right to receive dividends or any other distributions. Upon our liquidation, dissolution or winding up, our articles of incorporation provide that the holder of the Special Voting Share is entitled to receive, after payment of our debts and liabilities and subject to the rights of any class or series of our stock having a preference over the Special Voting Share as to distributions upon a liquidation, dissolution or winding up, and before any payment of any distributions of assets to our common stock, out of our assets available for distribution, a liquidating distribution in an amount equal to the par value of the Special Voting Share.

#### Additional Series of Preferred Stock
Our articles of incorporation authorize our board of directors to establish one or more additional series of preferred stock (including convertible preferred stock). Unless required by law or by any stock exchange, and subject to the terms of our articles of incorporation, the authorized but unissued shares of preferred stock will be available for designation and issuance by our board of directors without further action by holders of our common stock or the Special Voting Share. Our board of directors is able to determine, with respect to any series of preferred stock, the powers (including voting powers), preferences and relative, participating, optional or other special rights, and the qualifications, limitations, or restrictions thereof, of that series, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;• the designation of the series;

&nbsp;&nbsp;&nbsp;&nbsp;• the number of shares of the series, which our board of directors may, except where otherwise provided in the preferred stock designation, increase (but not above the total number of authorized shares of the class) or decrease (but not below the number of shares then outstanding);

&nbsp;&nbsp;&nbsp;&nbsp;• whether dividends or other distributions, if any, will be cumulative or non-cumulative and the rate of any such dividends or distributions applicable to the series;

&nbsp;&nbsp;&nbsp;&nbsp;• the dates at which dividends or other distributions, if any, will be payable on the shares of such series;

&nbsp;&nbsp;&nbsp;&nbsp;• the redemption rights and price or prices, if any, for shares of the series;

&nbsp;&nbsp;&nbsp;&nbsp;• the terms and amounts of any sinking fund provided for the purchase or redemption of shares of the series;

&nbsp;&nbsp;&nbsp;&nbsp;• the amounts payable on shares of the series in the event of any voluntary or involuntary liquidation, dissolution or winding-up of our affairs or other event;

&nbsp;&nbsp;&nbsp;&nbsp;• whether the shares of the series will be convertible into shares of any other class or series, or any other security, of us or any other entity, and, if so, the specification of the other class or series or other security, the conversion price or prices or rate or rates, any rate adjustments, the date or dates as of which the shares will be convertible, and all other terms and conditions upon which the conversion may be made;

&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on the issuance of shares of the same series or of any other class or series of our capital stock; and

&nbsp;&nbsp;&nbsp;&nbsp;• the voting powers, if any, of the holders of the series.

The powers, preferences and relative, participating, optional or other special rights, and the qualifications, limitations, or restrictions thereof, of each series of our preferred stock may differ from those of any and all other series outstanding at any time. We could issue one or more series of preferred stock that could, depending on the terms of the series, impede or discourage an acquisition attempt or other transaction that some, or a majority, of the holders of our common stock might believe to be in their best interests or in which the holders

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of our common stock might receive a premium over the market price of the shares of our common stock. Additionally, the issuance of one or more additional series of our preferred stock may adversely affect the rights or interests of holders of our common stock by restricting dividends or other distributions on the common stock, diluting the voting power of the common stock or subordinating the rights of the common stock to distributions upon a liquidation, dissolution or winding up or other event. As a result of these or other factors, the issuance of one or more additional series of preferred stock could have an adverse impact on the market price of our common stock.

#### Dividends
The NRS only permits the board of directors of a corporation, subject to any restrictions in the articles of incorporation, to declare and pay dividends or other distributions if, after giving effect to the dividend or other distribution (a) the corporation would not be able to pay its debts as they become due in the usual course of business; or (b) except as otherwise specifically allowed by the articles of incorporation, the corporation's total assets would be less than the sum of its total liabilities plus the amount that would be needed, if the corporation were to be dissolved immediately after the time of the distribution, to satisfy the preferential rights upon such dissolution of holders of shares of any class or series of the capital stock of the corporation having preferential rights superior to those receiving the distribution. Our articles of incorporation provide that we are allowed to make any distribution that otherwise would be prohibited by NRS 78.288(2)(b) and, accordingly, we will not be subject to the "balance sheet" test described in clause (b) of the immediately preceding sentence. The declaration, amount and payment of any dividends or other distributions in the future will be made at the sole discretion of our board of directors in accordance with applicable law and we may reduce or discontinue entirely the payment of such dividends or other distributions at any time. Our board of directors may take into account, among other things, our results of operations, cash requirements, financial condition, contractual restrictions and other factors that our board of directors may deem relevant.

#### Dissenter's and Appraisal Rights
Under the NRS, with certain exceptions, our stockholders will have dissenter's rights in connection with a merger, statutory conversion or statutory exchange in which we are a constituent entity or certain corporate actions pursuant to which a stockholder would be obligated as a result thereof to accept money or scrip rather than receive a fraction of a share in exchange for the cancellation of all of the stockholder's outstanding shares. Pursuant to the NRS, stockholders who properly demand and perfect dissenter's rights in connection with any corporate action giving rise to dissenter's rights will have the right to receive payment of the fair value of their shares as determined by the District Court of the State of Nevada, plus interest, as calculated in accordance with the applicable provisions of the NRS, on the amount determined to be the fair value, from the effective time of the corporate action giving rise to dissenter's rights through the date of payment of the judgment.

#### Stockholder Derivative Actions
Under Nevada law, any of our stockholders may bring an action in our name to enforce a right of the Company and procure a judgment in our favor, also known as a derivative action, provided that the stockholder bringing the action is a holder of our shares at the time of the transaction to which the action relates or such stockholder's stock thereafter devolved by operation of law. To bring such an action, the stockholder must otherwise comply with Nevada law regarding derivative actions, including by making a pre-suit demand on our board of directors to pursue the claims or satisfying its burden to show that any pre-suit demand would be futile, and demonstrating that it is a fair and adequate representative of the interests of similarly situated stockholders. Derivative actions may not be dismissed—including if there is a settlement—without notice to the stockholders and court approval. Our articles of incorporation have vested an independent and disinterested litigation demand committee with sole and exclusive authority to consider the merits of any such demands and make decisions and take actions with respect to any such demands, including whether to initiate a proceeding. This provision may affect a stockholder's ability to commence, maintain or control a derivative proceeding.

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#### Stockholder Meetings
Our bylaws provide that annual stockholder meetings will be held at a date, time and physical location, if any, as exclusively selected by our board of directors. Our articles of incorporation provide that special meetings of the stockholders may be called only by or at the direction of our board of directors, the chairman of our board or our chief executive officer or by or at the direction of our board of directors or the chairman of our board at the request of ManagementCo. To the extent permitted under applicable law, we may conduct meetings solely by means of remote communications, including by webcast.

#### Anti-Takeover Effects of Our Articles of Incorporation and Bylaws and Certain Provisions of Nevada Law
Our articles of incorporation, bylaws and the NRS contain provisions that are summarized in the following paragraphs and may have the effect of increasing the likelihood of continuity and stability in the composition of our board of directors. These provisions may also help us avoid costly takeover battles, reduce our vulnerability to a hostile or abusive change of control and protect the ability of our board of directors to enhance long-term stockholder value in connection with any unsolicited offer to acquire us. However, these provisions may have an anti-takeover effect and may delay, deter or prevent a merger or acquisition of our company by means of a tender offer, proxy contest or other takeover attempt that a stockholder might consider in its best interest, including those attempts that might result in a premium over the prevailing market price for the shares of common stock held by stockholders.

#### Voting Rights of ManagementCo
As described above in "—Preferred Stock—Special Voting Share," the Special Voting Share will have voting power (which shall in no event be less than one vote) equal to that number of votes required, when taken together with the aggregate voting power of the shares of our common stock over which ManagementCo then has voting power, to give ManagementCo a majority of the aggregate voting power of the Special Voting Share and the then-outstanding shares of common stock. As a result, ManagementCo will be able to control all matters requiring the approval of a majority of our stockholders, including the election of our directors, the amendment of our articles of incorporation and bylaws and significant corporate transactions such as a change in control, merger, consolidation or sale of assets, even if ManagementCo has voting power over less than 50% of the voting power of shares of our common stock, although ManagementCo will be unable to remove a director without the approval of two-thirds of the voting power of our stockholders. This concentrated control could discourage others from initiating a potential merger, takeover or other change of control transaction that other stockholders may view as beneficial.

We have created this voting arrangement, and the provision described below under "—Loss of Voting Rights," to protect our firm from change of control events, such as the risk that changes in the ownership of our voting securities could be deemed to have resulted in an "assignment" of our investment management agreements under the 1940 Act or the Advisers Act or a "change of control" under the indentures governing the senior notes of PSH.

#### Loss of Voting Rights
As described above in "—Common Stock," if at any time any person or group (other than ManagementCo or any person of which ManagementCo, or a wholly owned subsidiary of ManagementCo, serves as general partner or managing member or holds a majority by voting power of the interests entitled to vote generally in the election of the board of directors, managers or equivalent governing body of such person) directly or indirectly controls shares of our common stock representing more than 24.9% of the aggregate total votes to which the outstanding shares of common stock and the Special Voting Share would otherwise entitle their holders, then the shares of common stock in excess of such percentage directly or indirectly controlled by such person or group will not be entitled to vote on any matter and will not be considered to be outstanding when sending notices of a meeting of stockholders to vote on any matter (unless otherwise required by law), calculating required votes, determining the presence of a quorum or for other similar purposes under our articles of incorporation.

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#### Authorized but Unissued Capital Stock
Nevada law does not require stockholder approval for any issuance of shares that are authorized and available for issuance. However, the listing requirements of the NYSE, which would apply so long as the shares of common stock remain listed on the NYSE, require stockholder approval of certain issuances equal to or exceeding 20% of the then outstanding voting power of our capital stock or the then outstanding number of shares of common stock. These additional shares may be used for a variety of corporate purposes, including future public offerings, to raise additional capital or to facilitate acquisitions.

Our board of directors may generally issue shares of one or more additional series of preferred stock on terms designed to discourage, delay or prevent a change of control of our company or change the composition of our board. Moreover, our authorized but unissued shares of preferred stock will be available for future issuances in one or more additional series without stockholder approval and could be utilized for a variety of corporate purposes, including future offerings to raise additional capital, to facilitate acquisitions and employee benefit plans.

One of the effects of the existence of authorized and unissued and unreserved common stock or preferred stock may be to enable our board of directors to issue shares to persons who are supportive of or aligned with current management, which issuance could render more difficult or discourage an attempt to obtain control of our company by means of a merger, tender offer, proxy contest or otherwise, and thereby protect the continuity in the composition of our board and in our management and possibly deprive our stockholders of opportunities to sell their shares of common stock at prices higher than prevailing market prices.

#### Restrictions on Business Combinations
Nevada's "combinations with interested stockholders" statutes (NRS 78.411 through 78.444, inclusive) provide that specified types of business "combinations" between certain Nevada corporations and any person deemed to be an "interested stockholder" of the corporation are prohibited for two years after such person first becomes an "interested stockholder" unless the corporation's board of directors approves the combination (or the transaction by which such person becomes an "interested stockholder") in advance, or unless the combination is approved by the board of directors and 60% of the corporation's voting power not beneficially owned by the interested stockholder, its affiliates and associates. Furthermore, in the absence of prior approval certain restrictions may apply even after such two-year period. For purposes of these statutes, an "interested stockholder" is any person who is (1) the beneficial owner, directly or indirectly, of 10% or more of the voting power of the outstanding voting shares of the corporation, or (2) an affiliate or associate of the corporation and at any time within the two previous years was the beneficial owner, directly or indirectly, of 10% or more of the voting power of the then-outstanding shares of the corporation. The definition of the term "combination" is sufficiently broad to cover most significant transactions between a corporation and an "interested stockholder."

These statutes generally apply to Nevada corporations with 200 or more stockholders of record. However, a Nevada corporation may elect in its articles of incorporation not to be governed by these particular laws, but if such election is not made in the corporation's original articles of incorporation, the amendment (1) must be approved by the affirmative vote of the holders of stock representing a majority of the outstanding voting power of the corporation not beneficially owned by interested stockholders or their affiliates and associates, and (2) is not effective until 18 months after the vote approving the amendment and does not apply to any combination with a person who first became an interested stockholder on or before the effective date of the amendment. We have made such an opt-out election in our original articles of incorporation.

#### Control Share Acquisitions
Nevada's "acquisition of controlling interest" statutes, NRS 78.378 to 78.3793 prohibit an acquirer, under certain circumstances, from voting its shares of a target corporation's stock after crossing certain ownership threshold percentages, unless the acquirer obtains approval of the target corporation's disinterested stockholders. The statute specifies three thresholds: one-fifth or more but less than one-third, one-third but less than a majority, and a majority or more, of the outstanding voting power. Generally, once an acquirer crosses one of the above thresholds, those shares in an offer or acquisition and acquired within 90 days thereof become "control shares" and such control shares are deprived of the right to vote until disinterested stockholders restore the right. These

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provisions also provide that if control shares are accorded full voting rights and the acquiring person has acquired a majority or more of all voting power, all other stockholders who do not vote in favor of authorizing voting rights to the control shares are entitled to demand payment for the fair value of their shares in accordance with Nevada's dissenter's rights statutes.

A corporation may elect to not be governed by, or "opt out" of, the control share provisions by making an election in its articles of incorporation or bylaws, provided that the opt-out election must be in place on the 10th day following the date an acquiring person has acquired a controlling interest, that is, crossing any of the three thresholds described above. We have opted out of the control share statutes in our articles of incorporation.

#### Number of Directors; Removal of Directors; Vacancies and Newly Created Directorships
Under NRS 78.335, subject to limited statutory exceptions and unless the articles of incorporation or an amendment thereto provide for a higher voting threshold, any director or one or more of the incumbent directors may be removed as such only by the vote of stockholders representing not less than two-thirds of the voting power of the issued and outstanding stock entitled to vote, which is currently the minimum proportion permitted under Nevada law for such purpose, however, our articles of incorporation will provide that if the NRS is at any time amended to so provide in the future, any of our directors may be removed by such lower percentage, but not less than a majority of the voting power of the issued and outstanding stock entitled to vote, as the NRS may permit. Our articles of incorporation provide that the total number of directors constituting our board of directors may be fixed exclusively by a resolution adopted by our board of directors and further provides that all vacancies, including those caused by an increase in the number of directors, may be filled by a majority of the remaining directors, though less than a quorum.

#### No Cumulative Voting
Under Nevada law, the right to vote cumulatively does not exist unless the articles of incorporation specifically authorize cumulative voting. Our articles of incorporation do not authorize cumulative voting. Therefore, stockholders holding a majority of the voting power of the shares of our capital stock entitled to vote generally in the election of directors will be able to elect all of our directors.

#### Special Stockholder Meetings
Our articles of incorporation provide that special meetings of our stockholders may be called at any time only by or at the direction of the board of directors, the chairman of our board or our chief executive officer or by or at the direction of our board of directors or the chairman of our board at the request of ManagementCo. Our bylaws prohibit the conduct of any business at a special meeting other than as specified in the notice for such meeting. These provisions may have the effect of deterring, delaying or discouraging hostile takeovers, or changes in control or management of our company.

#### Stockholder Action by Written Consent
Pursuant to NRS 78.320, unless otherwise provided in the articles of incorporation or bylaws and unless prohibited by the rules of the NYSE, any action required or permitted to be taken at any annual or special meeting of the stockholders may be taken without a meeting, without prior notice and without a vote, if, before or after the action, a written consent setting forth the action is signed by the holders of at least a majority of the voting power of the stockholders, or if a different proportion of voting power is required for such an action at a meeting, that proportion of written consents. Our articles of incorporation do not prohibit, and our bylaws expressly permit, action by the written consent of our stockholders.

#### Director Nominations and Stockholder Proposals
Our articles of incorporation and our bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors. These provisions will not apply to the director nomination right of a majority in interest of the Strategic Investors so long as such right remains in effect. See "Certain Relationships and Related Person Transactions—Registration Rights Agreements" for additional information. In order for any matter to be "properly brought" before a meeting, a stockholder will have to comply with advance notice requirements and provide us with certain information. Generally, to be

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timely, a stockholder's notice must be received at our principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary date of the immediately preceding annual meeting of stockholders (which date shall, for purposes of our first annual meeting of stockholders following the combined offering, be deemed to have occurred on June 1 of the preceding calendar year). In the event that the date of the annual meeting is advanced by more than 30 days, or delayed by more than 70 days, from the anniversary date of the previous year's meeting, or if no annual meeting was held in the preceding year, a stockholder's notice must be received at our principal executive offices not less than the later of 90 days prior to the upcoming meeting or the tenth day following the public announcement of the upcoming meeting nor more than 120 days prior to the upcoming annual meeting of stockholders. Our articles of incorporation and our bylaws allow the board of directors to adopt such rules and regulations for the conduct of meetings as it shall deem appropriate which may have the effect of precluding the conduct of certain business at a meeting if the rules and regulations are not followed. These provisions may also defer, delay or discourage a potential acquirer from conducting a solicitation of proxies to elect the acquirer's own slate of directors or otherwise attempting to influence or obtain control of our company.

#### Exclusive Forum and Limited Waiver of Jury Trial
To prevent having to litigate claims in multiple jurisdictions and the threat of inconsistent or contrary rulings by different courts, among other considerations, our articles of incorporation include forum selection provisions.

More specifically, our articles of incorporation and bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Eighth Judicial District Court of the State of Nevada (or, if such court lacks subject matter jurisdiction, the state and federal courts in the State of Nevada) will, to the fullest extent permitted by law, be the sole and exclusive forum for: (i) any derivative action or proceeding brought on our behalf; (ii) any action asserting a breach of fiduciary duty owed by any current or former director, officer, stockholder or employee of the Company to the Company or our stockholders; (iii) any internal action (as defined in NRS 78.046), including any action asserting a claim against us arising under NRS Chapter 78, our articles of incorporation, our bylaws, any agreement entered into pursuant to NRS 78.365 or as to which the NRS confers jurisdiction on the District Court of the State of Nevada; or (iv) any action asserting a claim against us that is governed by the internal affairs doctrine.

Our articles of incorporation further will provide that, to the fullest extent not inconsistent with any applicable U.S. federal laws, any and all "internal actions" (as defined in NRS 78.046) must be tried in a court of competent jurisdiction (subject to the exclusive forum provisions in our articles of incorporation) before the presiding judge as the trier of fact and not before a jury. Pursuant to NRS 78.046 (as amended effective May 30, 2025, pursuant to Assembly Bill No. 239), such requirement will conclusively operate as a waiver of the right to trial by jury by each party to any such internal action.

To the fullest extent permitted by law, any person or entity purchasing or otherwise acquiring or holding any interest in shares of capital stock of our company shall be deemed to have notice of and consented to the exclusive forum and jury waiver provisions in our articles of incorporation. However, investors will not be deemed to have waived compliance with the federal securities laws and the rules and regulations thereunder as a result of such provisions.

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#### Limitations on Liability and Indemnification of Officers and Directors
The NRS authorizes corporations to limit or eliminate, subject to limited statutory exceptions and unless the articles of incorporation or an amendment thereto (in each case filed on or after October 1, 2003), provide for greater individual liability, the individual liability of directors and officers to corporations and their stockholders and creditors for any damages as a result of any act or failure to act in such individual's capacity as a director or officer, unless the statutory presumption established under NRS 78.138(3) (namely that directors and officers, in deciding upon matters of business, are presumed to act in good faith, on an informed basis and with a view to the interests of the corporation) has been rebutted, and it is proven that (i) the director's or officer's act or failure to act constituted a breach of his or her fiduciary duties as a director or officer, and (ii) such breach involved intentional misconduct, fraud or a knowing violation of law. Our articles of incorporation include a provision that eliminates the individual liability of our directors and officers to the fullest extent permitted under Nevada law. The effect of these provisions is to eliminate the rights of us and our stockholders or creditors to recover monetary damages from a director or officer for breach of fiduciary duty as a director or officer, including breaches involving grossly negligent behavior but not intentional misconduct, fraud or a knowing violation of law.

Our bylaws generally provide that we must indemnify and advance expenses to our directors and officers to the fullest extent authorized by the NRS, subject to limited exceptions. We also are expressly authorized to carry directors' and officers' liability insurance providing indemnification for our directors, officers and certain employees for some liabilities. We believe that these indemnification and advancement provisions and insurance are useful to attract and retain qualified directors and executive officers.

The limitation of liability under Nevada law, and the limitations on liability, indemnification and advancement provisions in our articles of incorporation and bylaws, may discourage stockholders from bringing a lawsuit against directors and officers for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against directors, even though such an action, if successful, might otherwise benefit us and our stockholders. In addition, your investment may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions.

There is currently no pending material litigation or proceeding involving any of our directors, officers or employees for which indemnification is sought.

#### Limited Fiduciary Duty of Controlling Stockholders
Pursuant to NRS 78.240 (as amended effective May 30, 2025, pursuant to Assembly Bill No. 239), no stockholder (other than a "controlling stockholder" as discussed below) has any fiduciary duty to us or any other stockholder, and each stockholder (other than a "controlling stockholder"), regardless of such stockholder's relative ownership of shares, is entitled to exercise or withhold the voting power of such shares in such stockholder's personal interest and without regard to any other person or interest.

A "controlling stockholder" is defined as a stockholder of a corporation having the voting power, by virtue of such stockholder's relative beneficial ownership of shares or otherwise pursuant to the articles of incorporation, to elect at least a majority of the corporation's directors. The only fiduciary duty of a controlling stockholder of a corporation, in such person's capacity as a stockholder, is to refrain from exerting undue influence over any director or officer of the corporation with the purpose and proximate effect of inducing a breach of fiduciary duty by such director or officer, for which breach the director or officer is liable pursuant to NRS 78.138, and which breach:

&nbsp;&nbsp;&nbsp;&nbsp;• directly relates to the initiation, evaluation, negotiation, authorization or approval by the board of directors, or a committee thereof, of a contract or transaction to which the controlling stockholder or any of its affiliates or associates is a party or in which the controlling stockholder or any of its affiliates or associates has a material and nonspeculative financial interest; and

&nbsp;&nbsp;&nbsp;&nbsp;• results in material, nonspeculative and non-ratable financial benefit to the controlling stockholder, which benefit excludes, and results in a material and nonspeculative detriment to the other stockholders generally.

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However, the exercise or withholding of voting power by a controlling stockholder, or the indication or implication by a controlling stockholder as to whether or to what extent such voting power may be exercised or withheld, does not, by itself, constitute or indicate a breach of this limited fiduciary duty. A controlling stockholder is presumed to have not breached its fiduciary duty with respect to any contract or transaction if it is authorized or approved, or recommended to the board of directors, by a committee of the board consisting only of disinterested directors.

Due to the anticipated aggregate voting power of our capital stock by ManagementCo (including its holding of the Special Voting Share) at the time of this offering, ManagementCo would be deemed, at such time, to be a "controlling stockholder" under the statutory provisions described above.

#### Listing
We have applied to list our common stock on the NYSE under the trading symbol "PS." Our common stock will trade separately on the NYSE from PSUS Shares, which will also be listed on the NYSE following the PSUS IPO as described in the accompanying PSUS Prospectus.

#### Transfer Agent and Registrar
The transfer agent and registrar (the "Transfer Agent") for shares of our common stock will be Broadridge Financial Solutions, LLC.

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#### CERTAIN U.S. FEDERAL INCOME TAX CONSEQUENCES
The following is a summary of certain U.S. federal income tax consequences of the ownership and disposition of our common stock and our potential treatment as a personal holding company. Except with respect to the allocation of purchase price between your shares of our common stock and PSUS Shares, this summary deals only with common stock that is held as a capital asset by a non-U.S. holder (as defined below).

A "U.S. holder" means a beneficial owner of our common stock (other than an entity or arrangement treated as a partnership for U.S. federal income tax purposes) that is, for U.S. federal income tax purposes, any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;• an individual who is a citizen or resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;• a corporation (or any other entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;• an estate the income of which is subject to U.S. federal income taxation regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;• a trust if it (1) is subject to the primary supervision of a court within the United States and one or more United States persons have the authority to control all substantial decisions of the trust or (2) has a valid election in effect under applicable United States Treasury regulations to be treated as a United States person.

A "non-U.S. holder" means a beneficial owner of our common stock (other than an entity or arrangement treated as a partnership for U.S. federal income tax purposes) that is not a U.S. holder.

This summary is based upon provisions of the Code, and regulations, rulings and judicial decisions as of the date hereof. Those authorities may be changed, perhaps retroactively, so as to result in U.S. federal income tax consequences different from those summarized below. This summary does not address all of the U.S. federal income tax consequences that may be relevant to you in light of your particular circumstances, nor does it address the Medicare tax on net investment income, U.S. federal estate and gift taxes or the effects of any state, local or non-U.S. tax laws. In addition, it does not represent a detailed description of the United States federal income tax consequences applicable to you if you are subject to special treatment under the U.S. federal income tax laws (including if you are a person subject to special rates of withholding or other U.S. taxation, U.S. expatriate, foreign pension fund, "controlled foreign corporation," "passive foreign investment company" or a partnership or other pass-through entity for United States federal income tax purposes). We cannot assure you that a change in law will not alter significantly the tax considerations that we describe in this summary.

If a partnership (or other entity or arrangement treated as a partnership for U.S. federal income tax purposes) holds our common stock, the tax treatment of a partner generally will depend upon the status of the partner and the activities of the partnership. If you are a partnership or a partner of a partnership considering an investment in our common stock, you should consult your tax advisors.

**If you are considering the purchase of our common stock, you should consult your own tax advisors concerning the particular U.S. federal income tax consequences to you of the ownership and disposition of our common stock, as well as the consequences to you arising under other U.S. federal tax laws and the laws of any other taxing jurisdiction.** 

#### Taxation of the Company - Personal Holding Companies
Although we do not expect to be treated as a personal holding company, or PHC, for U.S. federal income tax purposes, we could be subject to additional U.S. federal income tax on a portion of our income if it is determined that we are a PHC. A U.S. corporation will be classified as a PHC for U.S. federal income tax purposes in a given taxable year if (1) at any time during the last half of such taxable year, five or fewer individuals (without regard to their citizenship or residency and including as individuals for this purpose certain entities such as certain tax-exempt organizations and pension funds) own or are deemed to own (pursuant to certain constructive ownership rules) more than 50% of the stock of the corporation by value and (2) at least 60% of the corporation's adjusted ordinary gross income, as determined for U.S. federal income tax purposes, for such taxable year, consists of PHC income (which includes, among other things, dividends, interest, royalties, annuities and, under certain circumstances, rents). No assurance can be given that we will not become a PHC following the combined offering or in the future.

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If we are or were to become a PHC in a given taxable year, we would be subject to an additional 20% PHC tax on our undistributed PHC income, which includes the company's taxable income, subject to certain adjustments. If we were to become a PHC and had significant amounts of undistributed PHC income, the amount of PHC tax could be material; in that event, distribution of such income would reduce the PHC income subject to tax.

#### Allocation of Purchase Price and Basis for U.S. Holders and Non-U.S. Holders
While not free from doubt, your acquisition pursuant to the combined offering of (1) PSUS Shares and (2) shares of our common stock for no additional consideration in conjunction therewith should be treated for U.S. federal income tax purposes as the acquisition of both such PSUS Shares and such shares of our common stock for the aggregate purchase price paid in the combined offering. Under this treatment, for U.S. federal income tax purposes, your aggregate tax basis in the PSUS Shares and shares of our common stock that you receive will equal the total purchase price you pay in the combined offering, and you must allocate the purchase price between the PSUS Shares and the shares of our common stock you received pursuant to the combined offering based on the relative fair market values of the shares acquired in the combined offering. The portion of the purchase price allocated to your PSUS Shares will be your tax basis in such PSUS Shares and the portion of the purchase price allocated to the shares of our common stock that you receive will be your tax basis in such shares of our common stock. We believe that one reasonable method for determining fair market value is to use the volume-weighted average trading prices of the PSUS Shares and shares of our common stock on the first day of trading of the PSUS Shares and shares of our common stock on the NYSE. We intend, promptly following the completion of the first day of trading of the PSUS Shares and the shares of our common stock on the NYSE, to provide additional guidance on our website regarding the computation of basis using this method based on our determination of such weighted average trading prices. However, there can be no assurance that the IRS or a court will agree with any such determination.

Your aggregate tax basis in the PSUS Shares and shares of our common stock that you receive will equal the total purchase price you pay in the combined offering even if the combined volume-weighted average trading prices of your PSUS Shares and shares of our common stock on the first day of trading equal an aggregate amount greater than (or less than) your total purchase price.

Investors should note that the allocation of tax basis between the PSUS Shares and shares of our common stock pursuant to the formula discussed herein may differ from the allocation of the proceeds of the combined offering to PSUS. In addition, this allocation of tax basis may differ from the allocation of the purchase price for certain purposes by your broker. In addition, investors who seek to dispose of either PSUS Shares or shares of our common stock prior to the determination of the fair market values following the first day of trading may not know the portion of their aggregate tax basis that will ultimately be allocated to such security, and as a result may not know the exact amount of gain or loss that may result from such disposition until such determination.

No statutory, administrative or judicial authority directly addresses the treatment of a transaction similar to the combined offering for U.S. federal income tax purposes and, therefore, the foregoing treatment of the PSUS Shares and shares of our common stock and the purchase price allocation between the PSUS Shares and shares of our common stock received in the combined offering (including the method of determining the relative fair market values of such shares detailed above) are not binding on the IRS or the courts. Because there are no authorities that directly address the treatment of a transaction similar to the combined offering for U.S. federal income tax purposes, no assurance can be given that the IRS or the courts will agree with the characterization described above or our determination regarding allocation of tax basis, and any alternative characterization or allocation could result in different and potentially adverse consequences for you, PSUS, or the Company. Accordingly, you are urged to consult your own tax advisor regarding the tax consequences of participating in the combined offering, including the allocation of tax basis between the PSUS Shares and shares of our common stock.

#### Tax Consequences for Non-U.S. Holders

#### Dividends
In the event that we make a distribution of cash or other property (other than certain pro rata distributions of our stock) in respect of our common stock, the distribution generally will be treated as a dividend for U.S. federal income tax purposes to the extent it is paid from our current or accumulated earnings and profits, as

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determined under U.S. federal income tax principles. Any portion of a distribution that exceeds our current and accumulated earnings and profits generally will be treated first as a tax-free return of capital, causing a reduction in the adjusted tax basis of a non-U.S. holder's common stock, and to the extent the amount of the distribution exceeds a non-U.S. holder's adjusted tax basis in our common stock, the excess will be treated as gain from the disposition of our common stock (the tax treatment of which is discussed below under "—Gain on Disposition of Common Stock").

Dividends paid to a non-U.S. holder generally will be subject to withholding of U.S. federal income tax at a 30% rate or such lower rate as may be specified by an applicable income tax treaty. However, dividends that are effectively connected with the conduct of a trade or business by the non-U.S. holder within the United States (and, if required by an applicable income tax treaty, are attributable to a U.S. permanent establishment) are not subject to the withholding tax, provided certain certification and disclosure requirements are satisfied. Instead, such dividends are subject to U.S. federal income tax on a net income basis generally in the same manner as if the non-U.S. holder were a United States person as defined under the Code. Any such effectively connected dividends received by a foreign corporation may be subject to an additional "branch profits tax" at a 30% rate or such lower rate as may be specified by an applicable income tax treaty.

A non-U.S. holder who wishes to claim the benefit of an applicable treaty rate for dividends will be required (a) to provide the applicable withholding agent with a properly executed Internal Revenue Service ("IRS") Form W-8BEN or Form W-8BEN-E (or other applicable form) certifying under penalty of perjury that such holder is not a United States person as defined under the Code and is eligible for treaty benefits or (b) if our common stock is held through certain foreign intermediaries, to satisfy the relevant certification requirements of applicable U.S. Treasury regulations. Special certification and other requirements apply to certain non-U.S. holders that are pass-through entities rather than corporations or individuals.

A non-U.S. holder eligible for a reduced rate of U.S. federal withholding tax pursuant to an income tax treaty may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS.

#### Gain on Disposition of Common Stock
Subject to the discussion of backup withholding below, any gain realized by a non-U.S. holder on the sale or other disposition of our common stock generally will not be subject to U.S. federal income tax unless:

&nbsp;&nbsp;&nbsp;&nbsp;• the gain is effectively connected with a trade or business of the non-U.S. holder in the United States (and, if required by an applicable income tax treaty, is attributable to a U.S. permanent establishment of the non-U.S. holder);

&nbsp;&nbsp;&nbsp;&nbsp;• the non-U.S. holder is an individual who is present in the United States for 183 days or more in the taxable year of that disposition, and certain other conditions are met; or

&nbsp;&nbsp;&nbsp;&nbsp;• we are or have been a "United States real property holding corporation" for U.S. federal income tax purposes and certain other conditions are met.

A non-U.S. holder described in the first bullet point immediately above will be subject to tax on the gain derived from the sale or other disposition in the same manner as if the non-U.S. holder were a United States person as defined under the Code. In addition, if any non-U.S. holder described in the first bullet point immediately above is a foreign corporation, the gain realized by such non-U.S. holder may be subject to an additional "branch profits tax" at a 30% rate or such lower rate as may be specified by an applicable income tax treaty. An individual non-U.S. holder described in the second bullet point immediately above will be subject to a 30% (or such lower rate as may be specified by an applicable income tax treaty) tax on the gain derived from the sale or other disposition, which gain may be offset by United States source capital losses even though the individual is not considered a resident of the United States.

If the third bullet were to apply, then except as described below, gain recognized by a non-U.S. holder on the disposition of our common stock would generally be subject to tax in the same manner as if the non-U.S. holder were a United States person as defined under the Code. Generally, a corporation is a "United States real property holding corporation" if the fair market value of its United States real property interests equals or exceeds 50% of the sum of the fair market value of its worldwide real property interests and its other assets used or held for use in a trade or business (all as determined for United States federal income tax

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purposes). We believe we are not and do not anticipate becoming a "United States real property holding corporation" for U.S. federal income tax purposes. Because the determination of whether we are a United States real property holding corporation depends on the fair market value of our United States real property interests relative to the fair market value of our non-U.S. real property interests and our other business assets, there can be no assurance we will not be a United States real property holding corporation at the time of the Corporate Conversion or will not become one in the future. Even if we were to become a United States real property holding corporation, gain arising from a non-U.S. holder's sale or other taxable disposition of shares of our common stock will not be subject to U.S. federal income tax if our common stock is "regularly traded," as defined by applicable Treasury Regulations, on an established securities market and such non-U.S. holder owns, actually and constructively, five percent (5%) or less of our common stock throughout the shorter of the five-year period ending on the date of the sale or other taxable disposition or the non-U.S. holder's holding period.

#### Information Reporting and Backup Withholding
Distributions paid to a non-U.S. holder and the amount of any tax withheld with respect to such distributions generally will be reported to the IRS. Copies of the information returns reporting such distributions and any withholding may also be made available to the tax authorities in the country in which the non-U.S. holder resides under the provisions of an applicable income tax treaty.

A non-U.S. holder will not be subject to backup withholding on distributions received if such holder certifies under penalty of perjury that it is a non-U.S. holder (and the payor does not have actual knowledge or reason to know that such holder is a United States person as defined under the Code), or such holder otherwise establishes an exemption.

Information reporting and, depending on the circumstances, backup withholding will apply to the proceeds of a sale or other disposition of our common stock within the United States or conducted through certain United States-related financial intermediaries, unless the beneficial owner certifies under penalty of perjury that it is a non-U.S. holder (and the payor does not have actual knowledge or reason to know that the beneficial owner is a United States person as defined under the Code), or such owner otherwise establishes an exemption.

Backup withholding is not an additional tax and any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a non-U.S. holder's U.S. federal income tax liability provided the required information is timely furnished to the IRS.

#### Additional Withholding Requirements
Under Sections 1471 through 1474 of the Code (such Sections commonly referred to as "FATCA"), a 30% U.S. federal withholding tax may apply to any dividends paid on our common stock to (i) a "foreign financial institution" (as specifically defined in the Code and whether such foreign financial institution is the beneficial owner or an intermediary) which does not provide sufficient documentation, typically on IRS Form W-8BEN-E, evidencing either (x) an exemption from FATCA, or (y) its compliance (or deemed compliance) with FATCA (which may alternatively be in the form of compliance with an intergovernmental agreement with the United States) in a manner which avoids withholding, or (ii) a "non-financial foreign entity" (as specifically defined in the Code and whether such non-financial foreign entity is the beneficial owner or an intermediary) which does not provide sufficient documentation, typically on IRS Form W-8BEN-E, evidencing either (x) an exemption from FATCA, or (y) adequate information regarding certain substantial United States beneficial owners of such entity (if any). If a dividend payment is both subject to withholding under FATCA and subject to the withholding tax discussed above under "—Dividends," an applicable withholding agent may credit the withholding under FATCA against, and therefore reduce, such other withholding tax. While withholding under FATCA would also have applied to payments of gross proceeds from the sale or other taxable disposition of our common stock, proposed U.S. Treasury regulations (upon which taxpayers may rely until final regulations are issued) eliminate FATCA withholding on payments of gross proceeds entirely. You should consult your own tax advisors regarding these requirements and whether they may be relevant to your ownership and disposition of our common stock.

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#### SHARES ELIGIBLE FOR FUTURE SALE
Prior to the combined transaction, there has been no public market for shares of our common stock. We cannot predict the effect, if any, future sales of shares of common stock, or the availability for future sale of shares of common stock, in the public market will have on the market price of shares of our common stock prevailing from time to time. The sale of substantial amounts of shares of our common stock in the public market, or the perception that such sales could occur, could harm the prevailing market price of shares of our common stock and could impair our future ability to raise capital through the sale of our equity or equity-related securities at a time and price that we deem appropriate. See "Risk Factors— Risks Related to the Combined Offering and Ownership of Our Common Stock—*Substantial sales of our common stock following the combined offering could cause the market price of our common stock to decline*."

Upon completion of the combined transaction, we will have a total of 400,000,000 shares of our common stock outstanding. The shares of our common stock delivered to the initial investors in the PSUS IPO in the combined offering will be freely tradable without restriction or further registration under the Securities Act by persons other than our "affiliates." Under the Securities Act, an "affiliate" of an issuer is a person that directly or indirectly controls, is controlled by or is under common control with that issuer. The shares of our common stock held by our pre-IPO owners and management and the 16.7 million shares of our common stock to be delivered to the private placement investors in the combined private placement will be "restricted securities," as defined in Rule 144 and may not be sold absent registration under the Securities Act or compliance with Rule 144 or in reliance on another exemption from registration.

We will enter into a registration rights agreement with ManagementCo and a registration rights agreement with our pre-IPO owners, in each case, that will require us to register under the Securities Act the resale of these shares of common stock. See "Certain Relationships and Related Person Transactions—Registration Rights Agreements." Such securities registered under any such registration statement will be available for sale in the open market unless restrictions apply.

In addition, 20,000,000 shares may be granted under our Equity Incentive Plan, which will be in effect for a period of 10 years from the date of its adoption (unless earlier terminated by our board of directors pursuant to its terms). We intend to file one or more registration statements on Form S-8 under the Securities Act to register shares of our common stock or securities convertible into or exchangeable for shares of our common stock issued pursuant to our Equity Incentive Plan. Any such Form S-8 registration statements will automatically become effective upon filing. Accordingly, shares registered under such registration statements will be available for sale in the open market.

Our articles of incorporation authorize us to issue additional shares of common stock and options, rights, warrants and appreciation rights relating to common stock for the consideration and on the terms and conditions established by our board of directors in its sole discretion. In accordance with the NRS and the provisions of our articles of incorporation, we may also issue preferred stock that has designations, preferences, rights, powers and duties that are different from, and may be senior to, those applicable to shares of common stock. See "Description of Capital Stock."

#### Lock-Up Agreements, Transfer Restrictions and Registration Rights
We, PS Partner Group, and our officers and directors have agreed, subject to certain exceptions, that we and they will not offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, any shares of our common stock or securities convertible into or exchangeable or exercisable for any shares of our common stock, enter into a transaction that would have the same effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of our common stock, whether any of these transactions are to be settled by delivery of our common stock or other securities, in cash or otherwise, or publicly disclose the intention to make any such offer, sale, pledge or disposition, or to enter into any transaction, swap, hedge or other arrangement, without, in each case, the prior written consent of the representatives of the underwriters for a period ending 180 days after the date of this prospectus. These agreements are subject to certain exceptions, as set forth in "Underwriting."

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In addition, in connection with the Strategic Investment, our pre-IPO owners, including our Founder and certain other senior professionals and the Strategic Investors, have agreed not to sell interests in us held by them until the first anniversary of the combined offering. Our articles of incorporation will memorialize this one-year transfer restriction for shares of our common stock held by our pre-IPO owners. See "Description of Capital Stock—Common Stock" for more information.

Following the expiration of the applicable lock-up period or transfer restriction, certain stockholders will have the right, subject to certain conditions, to require us to register the sale of their shares of our common stock under federal securities laws. See "Certain Relationships and Related Person Transactions—Registration Rights Agreements." If these stockholders exercise this right, our other existing stockholders may require us to register their registrable securities.

Following the applicable lock-up period or transfer restriction described above, shares of our common stock that are restricted securities or are held by our affiliates as of the date of this prospectus will be eligible for sale in the public market in compliance with the requirements of Rule 144, which are described in greater detail below.

#### Rule 144
In general, under Rule 144, as currently in effect, a person who is not deemed to be our affiliate for purposes of Rule 144 or to have been one of our affiliates at any time during the three months preceding a sale and who has beneficially owned the shares of common stock proposed to be sold for at least six months, including the holding period of any prior owner other than our affiliates, is entitled to sell those shares of common stock without complying with the manner of sale, volume limitation or notice provisions of Rule 144, subject to compliance with the public information requirements of Rule 144. If such a person has beneficially owned the shares of common stock proposed to be sold for at least one year, including the holding period of any prior owner other than our affiliates, then that person is entitled to sell those shares of common stock without complying with any of the requirements of Rule 144. In general, six months after the effective date of the registration statement of which this prospectus forms a part, under Rule 144, as currently in effect, our affiliates or persons selling shares of common stock on behalf of our affiliates are entitled to sell, within any three-month period, a number of shares of common stock that does not exceed the greater of (1) 1% of the number of shares of common stock then outstanding and (2) the average weekly trading volume of the shares of common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to that sale. Sales under Rule 144 by our affiliates or persons selling shares of common stock on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

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#### UNDERWRITING
We and the underwriters named below (the "underwriters"), acting through Citigroup Global Markets Inc., UBS Securities LLC, BofA Securities, Inc., Jefferies LLC and Wells Fargo Securities, LLC as their representatives (the "Representatives"), have entered into an underwriting agreement (the "Underwriting Agreement") with respect to the shares of our common stock being delivered to each initial investor in the PSUS IPO. Each of the underwriters named below is also acting as an underwriter in the PSUS IPO, pursuant to an underwriting agreement (the "PSUS Underwriting Agreement") among the underwriters, PSUS, Pershing Square Capital Management, L.P., as investment manager to PSUS, and us, as the selling shareholder in the PSUS IPO. Subject to certain conditions, each underwriter has severally agreed to accept delivery of the number of shares of our common stock set forth opposite their respective names. The underwriters are committed to accept delivery of all such shares of our common stock (other than those covered by the over-allotment option described below) if any PSUS Shares are purchased in the PSUS IPO. The underwriters for this offering and the offering of PSUS Shares in the PSUS IPO will be the same. The underwriters are committed to purchase all of the PSUS Shares offered in the PSUS IPO (other than those covered by the over-allotment option described below) and to acquire all shares of our common stock offered in this offering, if they purchase any PSUS Shares.

---

| | |
|:---|:---|
| **Underwriter** | **Number of Shares**  |
| Citigroup Global Markets Inc.  |  |
| UBS Securities LLC |  |
| BofA Securities, Inc.  |  |
| Jefferies LLC |  |
| Wells Fargo Securities, LLC |  |
| **Total** |  |

---

If an underwriter fails to purchase any PSUS Shares it has agreed to purchase in connection with the PSUS IPO, the Underwriting Agreement provides that if one or more substitute underwriters is found in connection with the PSUS IPO, such substitute underwriter will accept delivery of our shares of common stock in proportion to the number of PSUS Shares agreed to be sold to such substitute underwriter in connection with the PSUS IPO. Additionally, if an underwriter fails to accept delivery of the shares of our common stock it has agreed to accept, the Underwriting Agreement provides that one or more substitute underwriters may be found, the delivery commitments of the remaining underwriters may be increased or the Underwriting Agreement may be terminated.

Pursuant to the PSUS Underwriting Agreement, the underwriters have an option, exercisable for 45 days from the date of this prospectus, to purchase up to an additional PSUS Shares to cover over-allotments, if any, at the initial offering price of the PSUS Shares. The Underwriting Agreement provides for the delivery of up to additional shares of our common stock to cover over-allotments upon the exercise by the underwriters of such option. The underwriters may exercise such option solely for the purpose of covering over-allotments. Generally, the Underwriters would not be expected to engage in stabilizing transactions or purchase securities to cover syndicate short positions, unless the combined trading price of a PSUS Share and a share of our common stock is in the aggregate less than the public offering price of $50.00. To the extent that the underwriters exercise this option, each of the underwriters will have a firm commitment, subject to certain conditions, to purchase an additional number of PSUS Shares, and deliver the applicable number of additional shares of our common stock, proportionate to such underwriter's initial commitment.

Solely for the purpose of facilitating the delivery of our common stock and the PSUS Shares, the public offering price of our common stock may be reflected as $0.01 per share and the public offering price of the PSUS Shares may be reflected as $49.99 per share in certain communications related to the settlement of the combined offering. However, for the avoidance of doubt, 100% of the net proceeds of the PSUS IPO will be received by PSUS and the combined offering will not result in any proceeds to us.

The Underwriting Agreement provides that the obligations of the underwriters to accept delivery of the shares of our common stock included in this offering are subject to approval of certain legal matters by counsel and certain other conditions.

As described in the PSUS Prospectus, in connection with the PSUS IPO, the underwriters of the PSUS IPO will receive a commission equal to a percentage of the aggregate public offering price of the PSUS Shares sold

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in the PSUS IPO pursuant to the PSUS Underwriting Agreement. In addition, as described in the PSUS Prospectus, PSUS will reimburse the underwriters of the PSUS IPO for certain out-of-pocket expenses, including counsel fees, in connection with the PSUS IPO. As described in the PSUS Prospectus, certain underwriters will also receive fees for structuring the combined offering. No additional compensation will be paid to the underwriters in connection with this offering.

We will bear all costs associated with this offering. We estimate that the total expenses of the combined offering, including registration, filing and listing fees, printing and legal and accounting expenses, but excluding the underwriting discounts and commissions to the underwriters of the PSUS IPO, will be approximately $.

Prior to the combined offering, there has been no public or private market for the shares of our common stock. Moreover, prior to the opening trade, there will not be a price at which underwriters initially sold shares of our common stock to the public as there would be in a traditional underwritten initial public offering. This lack of an initial public offering price could impact the range of buy and sell orders collected by the NYSE from various broker-dealers. Consequently, the public price of our common stock may be more volatile than in a traditional underwritten initial public offering and could, upon listing on the NYSE, decline significantly and rapidly from the opening price. Furthermore, there can be no assurance that an active trading market in the shares of our common stock will develop and continue after the combined offering. See the section titled "Risk Factors—Risks Related to the Combined Offering and Ownership of Our Common Stock."

The shares of our common stock are expected to be listed on the NYSE under the trading or ticker symbol "PS," subject to notice of issuance. The shares of our common stock will trade separately on the NYSE from PSUS Shares, which will also be listed on the NYSE following the PSUS IPO as described in the accompanying PSUS Prospectus.

In connection with the requirements for listing the shares of our common stock on the NYSE, the underwriters have undertaken to deliver lots of 100 or more shares of our common stock to a minimum of 400 beneficial owners in the United States. The minimum investment requirement is 100 PSUS Shares with which the underwriters will deliver 20 shares of our common stock.

The underwriters have informed us that they do not intend delivery of our shares of common stock to discretionary accounts to exceed five percent of the total number of shares of common stock offered by them.

We have agreed to indemnify the underwriters for or to contribute to the losses arising out of certain liabilities, including liabilities under the Securities Act, or to contribute to payments the underwriters may be required to make in respect of those liabilities, except in the cases of willful misfeasance, bad faith or gross negligence.

We, PS Partner Group, and our officers and directors have agreed, subject to enumerated exceptions, that for a period ending 180 days after the date of this prospectus, we and they will not, without the prior written consent of the Representatives, offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, any shares of our common stock or securities convertible into or exchangeable or exercisable for any shares of our common stock, enter into a transaction that would have the same effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of our common stock, whether any of these transactions are to be settled by delivery of our common stock or other securities, in cash or otherwise, or publicly disclose the intention to make any such offer, sale, pledge or disposition, or to enter into any transaction, swap, hedge or other arrangement. The Representatives, in their sole discretion, may release all or any portion of the shares of our common stock subject to these lock-up agreements at any time.

At our request and as directed by us, the underwriters have reserved for sale at the initial public offering price up to % of the PSUS Shares in the PSUS IPO (including the delivery of the applicable proportion of shares of our common stock) to certain investors, which includes investors in our funds as well as certain other individuals affiliated with PSCM. We will not pay underwriting discounts and commissions on the PSUS Shares sold (including the delivery of the applicable proportion of shares of our common stock) to such investors. The number of PSUS Shares (including the delivery of the applicable proportion of shares of our common stock) available for sale to the general public will be reduced by the number of shares sold to the foregoing investors as directed by us.

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In connection with the combined offering, the underwriters may purchase and sell shares of our common stock and/or PSUS Shares in the open market, including over-allotment and stabilizing transactions and purchases to cover syndicate short positions created in connection with the combined offering, which may require corresponding purchases or sales by the underwriters of shares of the other component security in the open market. Stabilizing transactions consist of certain bids or purchases for the purpose of preventing or retarding a decline in the market price of the subject securities and syndicate short positions involve the sale by the underwriters of a greater number of subject securities than they are required to deliver in the offering. The underwriters also may impose a penalty bid, whereby selling concessions allowed to syndicate members or other broker dealers may be reclaimed by the syndicate if the securities they have sold are repurchased by the syndicate in stabilizing or covering transactions. These activities aim to stabilize, maintain or otherwise affect the market price of the subject securities, which may be higher than the price that might otherwise prevail in the open market. Stabilizing transactions by the underwriters with respect to the trading of shares of our common stock and/or PSUS Shares on the NYSE, including over-allotment and stabilizing transactions and purchases to cover syndicate short positions created in connection with the combined offering, may require corresponding purchases or sales by the underwriters of the other component security in the open market, and therefore stabilizing transactions with respect to the trading of one security may affect the trading market for the other security, including in potentially unexpected ways. See "Risk Factors—Risks Related to the Combined Offering and Ownership of Our Common Stock—*No public market for our common stock currently exists, and an active trading market for our common stock may never develop or be sustained after the combined offering. Following the combined offering, our stock price may fluctuate significantly*."

A prospectus in electronic format may be made available on websites maintained by one or more underwriters or selected dealers, if any, participating in the combined offering. The Representatives may agree to allocate a number of shares of our common stock to underwriters for delivery to their online brokerage account holders. Internet distributions will be allocated by the Representatives to underwriters that may make Internet distributions on the same basis as other allocations.

Certain underwriters have performed investment banking and advisory services for us and our affiliates from time to time, for which they have received customary fees and expenses. Certain underwriters may, from time to time, engage in transactions with or perform services for us and our affiliates in the ordinary course of business.

The principal business address of Citigroup Global Markets Inc. is 388 Greenwich Street, New York, New York 10013. The principal business address of UBS Securities LLC is 11 Madison Avenue, New York, New York 10010. The principal business address of BofA Securities, Inc. is One Bryant Park, New York, New York 10036. The principal business address of Jefferies LLC is 520 Madison Avenue, New York, New York 10022. The principal business address of Wells Fargo Securities, LLC is 550 South Tryon Street, Charlotte, North Carolina 28202.

#### Selling Restrictions
Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or delivered, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and delivery of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

#### For Prospective Investors Located in Australia
This prospectus: (i) does not constitute a disclosure document or a prospectus under Chapter 6D.2 of the Corporations Act 2001 (cth) (the "Corporations Act"); (ii) has not been, and will not be, lodged with the Australian Securities and Investments Commission ("ASIC"), as a disclosure document for the purposes of the

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Corporations Act and does not purport to include the information required of a disclosure document for the purposes of the Corporations Act; and (iii) may only be provided in Australia to select investors who are able to demonstrate that they fall within one or more of the categories of investors, available under section 708 of the Corporations Act ("Exempt Investors").

The shares of our common stock may not be directly or indirectly offered for subscription or delivered, and no invitations to subscribe for or buy the shares of our common stock may be issued, and no draft or definitive offering memorandum, advertisement or other offering material relating to any shares of our common stock may be distributed in Australia, except where disclosure to investors is not required under Chapter 6D of the Corporations Act or is otherwise in compliance with all applicable Australian laws and regulations. By submitting a subscription for the shares of our common stock, an investor represents and warrants that it is an exempt investor.

As any offer of shares of our common stock under this document will be made without disclosure in Australia under Chapter 6D.2 of the Corporations Act, the offer of those securities for resale in Australia within 12 months may, under section 707 of the Corporations Act, require disclosure to investors under Chapter 6D.2 if none of the exemptions in section 708 applies to that resale. By applying for the shares of our common stock you undertake to us that you will not, for a period of 12 months from the date of issue of the shares of our common stock, offer, transfer, assign or otherwise alienate those shares of our common stock to investors in Australia except in circumstances where disclosure to investors is not required under Chapter 6D.2 of the Corporations Act or where a compliant disclosure document is prepared and lodged with ASIC.

#### For Prospective Investors Located in Brazil
The Company is not listed with any stock exchange, organized over the counter market or electronic system of securities trading. The shares of our common stock have not been and will not be registered with any securities exchange commission or other similar authority, including the Brazilian Securities and Exchange Commission (*Comissão de Valores Mobiliários*, or the "CVM"). The shares of our common stock will not be directly or indirectly offered or delivered within Brazil through any public offering, as determined by Brazilian law and by the rules issued by the CVM, including Law No. 6,385 (Dec. 7, 1976) and CVM Rule No. 400 (Dec. 29, 2003), as amended from time to time, or any other law or rules that may replace them in the future.

Acts involving a public offering in Brazil, as defined under Brazilian laws and regulations and by the rules issued by the CVM, including Law No. 6,385 (Dec. 7, 1976) and CVM Rule No. 400 (Dec. 29, 2003), as amended from time to time, or any other law or rules that may replace them in the future, must not be performed without such prior registration. Persons in Brazil wishing to acquire shares of our common stock should consult with their own counsel as to the applicability of these registration requirements or any exemption therefrom. Without prejudice to the above, the delivery and solicitation of shares of our common stock is limited to qualified investors as defined by CVM Rule No. 409 (Aug. 18, 2004), as amended from time to time or as defined by any other rule that may replace it in the future.

This prospectus is intended solely for the use of the addressee and cannot be delivered or disclosed in any manner whatsoever to any person or entity other than the addressee.

#### For Prospective Stockholders in Canada
No prospectus has been filed with any securities commission or similar regulatory authority in Canada in connection with the offer and delivery of the shares of our common stock. No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon this document or on the merits of the shares of our common stock and any representation to the contrary is an offence. The offer and delivery of the shares of our common stock in Canada is being made on a private placement basis and is exempt from the requirement that the issuer prepare and file a prospectus under applicable Canadian securities laws. Any resale of shares of our common stock acquired by a Canadian investor in the combined offering must be made in accordance with applicable Canadian securities laws, which resale restrictions may under certain circumstances apply to resales of the shares of our common stock outside of Canada.

The Company is not, and may never be, a "reporting issuer," as such term is defined under applicable Canadian securities legislation, in any province or territory of Canada in which the shares of our common stock will be offered and there currently is no public market for any of the shares of our common stock in Canada, and one may never develop.

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*Representations of Purchasers* 

Each Canadian investor who receives shares of our common stock will be deemed to have represented to the Company, the underwriters and to each dealer from whom a delivery confirmation is received, as applicable that:

A. Where required by law, the investor is acquiring the shares of our common stock as principal, or is deemed to be acquiring as principal in accordance with applicable securities laws of the province in which such investor is resident, for its own account and not as agent for the benefit of another person, and for investment only and not with a view to resale or distribution; 

B. The investor, or any ultimate holder for which the investor is acting as agent, is entitled under applicable Canadian securities laws to acquire the shares of our common stock without the benefit of a prospectus qualified under such securities laws, and without limiting the generality of the foregoing, is (i) an "accredited investor" as defined in section 1.1 of National Instrument 45-106 Prospectus Exemptions ("NI 45-106") or, in Ontario, in section 73.3(1) of the Securities Act (Ontario), and (ii) a "permitted client" as defined in section 1.1 of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations; and 

C.<br> The investor is not a person created or used solely to acquire or hold the shares of our common stock as an "accredited investor" as described in paragraph (m) of the definition of "accredited investor" in section 1.1 of NI 45-106.

*Rights of Action for Damages or Rescission* 

Securities legislation in certain of the Canadian provinces provides certain purchasers of securities pursuant to an offering document (such as this prospectus), including where the distribution involves an "eligible foreign security" as such term is defined in Ontario Securities Commission rule 45-501 Ontario prospectus and registration exemptions and in Multilateral Instrument 45-107 Listing Representation and Statutory Rights of Action Disclosure Exemptions, as applicable, with a remedy for damages or rescission, or both, in addition to any other rights they may have at law, where the offering document (such as this prospectus), or other offering document that constitutes an offering memorandum, and any amendment thereto, contains a "misrepresentation," as defined in the applicable securities legislation. These remedies, or notice with respect to these remedies, must be exercised or delivered, as the case may be, by the purchaser within the time limits prescribed by applicable securities legislation and are subject to limitations and defences under applicable securities legislation. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

*Underwriting Conflicts* 

Pursuant to section 3a.3 of National Instrument 33-105 Underwriting Conflicts ("NI 33-105") (or section 3a.4 in the case of securities issued or guaranteed by the government of a non-Canadian jurisdiction), the combined offering is conducted pursuant to an exemption from the requirement that Canadian investors be provided with certain underwriter conflicts of interest disclosure that would otherwise be required pursuant to subsection 2.1(1) of NI 33-105.

*Language of Documents* 

Each purchaser residing in the Province of Québec hereby agrees that it is the purchaser's express wish that all documents evidencing or relating in any way to the sale of the securities and all other contracts and related documents be drafted in the English language. *Chaque acheteur residant dans la province de Québec reconnaît que c'est sa volonté expresse que tous les documents faisant foi ou se rapportant de quelque manière à la vente des titres et tous les autre contrats et documents s'y rapportant soient rédigés en anglais.*

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#### For Prospective Stockholders in China
The shares of our common stock may not be marketed, offered or delivered directly or indirectly in a public manner within the People's Republic of China (the "PRC," for the purpose of this prospectus, excluding Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan) and neither this prospectus nor any offering material or information contained herein relating to the shares of our common stock, may be supplied to the public in the PRC or used in connection with any offer for the subscription of the shares of our common stock to the public in the PRC.

The shares of our common stock may only be marketed, offered or delivered in a non-public manner to not more than 200 specific institutional investors, including qualified domestic institutional investors as defined in the trial measures for the administration of securities investment outside the PRC by qualified domestic institutional investors (![](ny20040230x14_characters01.jpg)), qualified domestic insurance companies, qualified domestic trust companies, qualified domestic commercial banks and other qualified domestic investors (collectively, "Qualified Domestic Investors"). Other persons should not act or rely on this prospectus or any of its contents.

No public media or other means of public distribution or announcement will be used within the PRC in connection with the shares of our common stock or the delivery or distribution of this prospectus. This prospectus is being supplied to you solely for your information and may not be reproduced, redistributed, disclosed or passed on, in any way, to any other person or published, in whole or in part, for any other purpose. Neither this prospectus nor any part of it is intended as or constitutes provision of any consultancy or advisory service of securities investment or public inducement.

Subject to the foregoing, the distribution of this prospectus does not constitute a public offering of the securities under the securities laws of the PRC (![](ny20040230x14_characters02.jpg)), and is not intended as, and does not constitute, providing consulting or advisory service of securities investment as defined under the PRC laws.

#### For Prospective Stockholders in the European Economic Area
For the purposes of Directive 2011/61/EU of the European Parliament and the (European) Commission on Alternative Investment Fund Managers (the "Directive"), the Company will constitute a non-EU AIF whose AIFM is the management company, itself a non-EU AIFM (as each of the foregoing terms is defined in the directive). As of the date hereof, each member state of the European Economic Area ("EEA") has adopted domestic legislation implementing the directive into its national law. Under the Directive, "marketing" (as defined in the Directive) to or with any investor domiciled or with a registered office in the EEA will be restricted by such laws and no such marketing will take place except as permitted by such laws.

Unless stated otherwise below, the shares of our common stock can only be marketed to investors domiciled, or with a registered office, in a member state of the EEA in which such marketing is permitted by applicable national law to those investors that are considered to be a professional client or may, on request, be treated as a professional client, within the meaning of Annex II to Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU.

#### For Prospective Stockholders in the Netherlands
The shares of our common stock have not been and will not be offered, transferred or delivered in the Netherlands, as part of their initial distribution or at any time thereafter, directly or indirectly, other than to individuals or legal entities which are or are considered to be 'qualified investors' (*gekwalificeerde beleggers*) within the meaning of article 1:1 of the Dutch Financial Supervision Act (*wet op het financieel toezicht*, the "WFT"). The AIFM makes use of the National Private Placement Regime ("NPPR") referred to in article 1:13b of the WFT. As a consequence, the offering of the shares of our common stock does not require the Company to have a license pursuant to the WFT. In accordance with the NPPR, the Company is subject to certain reporting requirements vis-à-vis the Netherlands Authority for the Financial Markets (*Stichting Autoriteit Financiële Markten*).

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#### For Prospective Stockholders in the United Kingdom
For the purposes of the Alternative Investment Fund Managers Regulations 2013/1773 (as amended) ("UK AIFMR"), the Company will constitute a non-UK AIF whose AIFM is the management company, itself a non-UK AIFM (as each of the foregoing terms is defined in UK AIFMR). Under UK AIFMR, "marketing" (as defined in UK AIFMR) to or with any investor domiciled or with a registered office in the United Kingdom will be restricted by UK AIFMR and no such marketing will take place except as permitted by UK AIFMR.

Unless stated otherwise below, the shares of our common stock can only be marketed to investors domiciled, or with a registered office, in the United Kingdom to those investors that are considered to be a professional client or may, on request, be treated as a professional client, within the meaning of point (8) of article 2(1) of Regulation (EU) No. 600/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

For the purposes of investors in the United Kingdom, this communication is being made to and directed only at persons who: (i) have professional experience of participating in unregulated schemes falling within article 14 of the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001 (as amended, the "CIS Order") and fall within article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "FPO"); or (ii) fall within article 22(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the CIS Order and article 49(5)(a) to (d) of the FPO; or (iii) persons to whom this report may otherwise be lawfully made to or directed at, provided, that such persons are also "qualified investors" as defined in paragraph 15 of Schedule 1 to the Public Offers and Admissions to Trading Regulations 2024, all such persons together being referred to as relevant persons. The investments and investment activity to which this communication relates are available to, and will only be engaged in with, relevant persons. No other person should act or rely on it.

#### For Prospective Stockholders in Hong Kong
The contents of this prospectus have not been reviewed or approved by any regulatory authority in Hong Kong. This prospectus does not constitute an offer or invitation to the public in Hong Kong to acquire shares of our common stock. Accordingly, unless permitted by the securities laws of Hong Kong, no person may issue or have in its possession for the purposes of issue, this prospectus or any advertisement, invitation or document relating to the shares of our common stock, whether in Hong Kong or elsewhere, which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong other than in relation to shares of our common stock which are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" (as such term is defined in the Securities and Futures Ordinance of Hong Kong (cap. 571) (the "SFO") and the subsidiary legislation made thereunder) or in circumstances which do not result in this prospectus being a "prospectus" as defined in the Companies (Winding Up and Miscellaneous Provisions) Ordinances of Hong Kong (Cap. 32) (the "CWMPO") or which do not constitute an offer or an invitation to the public for the purposes of the SFO or the CWMPO. The offer of the shares of our common stock is personal to the person to whom this prospectus has been delivered by or on behalf of the Company, and a subscription for shares of our common stock will only be accepted from such person. No person to whom a copy of this prospectus is issued may issue, circulate or distribute this prospectus in Hong Kong or make or give a copy of this prospectus to any other person. You are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this prospectus, you should obtain independent professional advice.

#### For Prospective Stockholders in Israel
The shares of our common stock have not been registered and are not expected to be registered under the Israeli Securities Law – 1968 (the "Securities Law") or under the Israeli Joint Investment Trust Law – 1994 due to applicable exemptions. Accordingly, the shares of our common stock will only be offered and delivered in Israel pursuant to applicable private placement exemptions, to parties that qualify as both (i) Sophisticated Investors described in Section 15a(b)(1) of the Securities Law and (ii) as "Qualified Customers" for purposes of Section 3(a)(11) of the Law for the Regulation of Provision of Investment Advice, Marketing Investments and Portfolio Management – 1995 (the "Investment Advisor Law"). The Company is not a licensed investment marketer under the Investment Advisor Law and the Company does not maintain insurance as required under such law. The Company may be deemed to be providing investment marketing services but is not an investment advisor for purposes of Israeli law. If any recipient in Israel of a copy of this prospectus is not qualified as

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described above, such recipient should promptly return this prospectus to the Company. By retaining a copy of this prospectus you are hereby confirming that you qualify as both a Sophisticated Investor and Qualified Customer, fully understand the ramifications thereof and agree to be treated as such by the Company.

#### For Prospective Stockholders in Mexico
The shares of our common stock have not been and will not be registered with the National Securities Registry (*Registro Nacional de Valores*) maintained by the National Banking and Securities Commission of Mexico (*Comisión Nacional Bancaria y de Valores*; the "CNBV") and may not be offered or delivered publicly in Mexico or otherwise be subject to intermediation activities in Mexico, except that the shares of our common stock may be offered and delivered to investors in Mexico qualifying as institutional or accredited investors pursuant to the private placement exemptions provided in article 8 of the Mexican Securities Market Law (*Ley del Mercado de Valores*). This prospectus is solely our responsibility and has not been reviewed or authorized by the CNBV and may not be publicly distributed in Mexico. In making an investment decision, all investors, including any Mexican investor who may acquire shares of our common stock from time to time, must rely on their own examination of the terms of the combined offering and the shares of our common stock, including the merits and risks involved.

#### For Prospective Stockholders in Japan
No public offering of the shares of our common stock is being made to investors resident in Japan and no securities registration statement pursuant to Article 4, paragraph 1, of the Financial Instruments and Exchange Act (Act No. 25 of 1948, as amended) (the "FIEA") has been made or will be made in respect of the offering of the shares of our common stock in Japan pursuant to an exemption from the registration requirements applicable to a private placement of securities to Qualified Institutional Investors (as defined in Article 10 of the Cabinet Ordinance Concerning Definitions under Article 2 of the FIEA (Ordinance No. 14 of 1995, as amended) as set forth in Article 2, Paragraph 3, Item 2 (a) of the FIEA or small number investors as set forth in Article 2, Paragraph 3, Item 3 of the FIEA. The shares of our common stock may not be offered or delivered, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan unless they are offered or delivered pursuant to an exemption from the registration requirements of, and in compliance with, the FIEA and any applicable laws and regulations of Japan. Neither the Financial Services Agency of Japan nor the Kanto Local Finance Bureau has passed upon the accuracy or adequacy of this prospectus or otherwise approved or authorized the offering of the shares of our common stock in Japan or to investors resident in Japan.

#### For Prospective Investors Located in the State of Qatar and the Qatar Financial Centre ("QFC")
This prospectus is provided on an exclusive basis to the specifically intended recipient thereof, for the recipient's personal use only and on the basis that the recipient is willing and able to conduct an independent investigation of the risks involved in this prospectus, the underlying instruments and any related documents. Nothing in this prospectus constitutes, is intended to constitute, shall be treated as constituting or shall be deemed to constitute, any offer or sale of securities in the State of Qatar or in the QFC to the public or the inward marketing of securities or an attempt to do business or conduct activities, as a bank, an investment company or otherwise in the State of Qatar or in the QFC.

This prospectus, the underlying instruments and any related documents have not been reviewed, approved, registered or licensed by or with the Qatar Central Bank, the Qatar Financial Centre Regulatory Authority, the Qatar Financial Markets Authority or any other regulator in the State of Qatar, the QFC or under any laws of the State of Qatar or the QFC. No transaction will be concluded in your jurisdiction. Recourse against the dealer, and those involved with it, may be limited or difficult and may have to be pursued in a jurisdiction outside Qatar and the QFC. Any distribution of this prospectus by the recipient to third parties in Qatar or the QFC beyond the terms hereof is not authorized and shall be at the liability of such recipient.

Any enquiries regarding the financial services or securities contained herein should be made by contacting the adviser.

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#### For Prospective Investors Located in the Kingdom of Saudi Arabia
This document may not be distributed in the Kingdom of Saudi Arabia except to such persons as are permitted under the Rules on the Offer of Securities and Continuing Obligations issued by the Saudi Arabian Capital Market Authority.

The Capital Market Authority does not make any representation as to the accuracy or completeness of this document and expressly disclaims any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this document. Prospective purchasers of the securities offered hereby should conduct their own due diligence on the accuracy of the information relating to the securities. If you do not understand the contents of this document, you should consult an authorized financial adviser.

#### For Prospective Stockholders in Singapore
This prospectus and any other material in connection with the offer or sale is not a prospectus as defined in the Securities and Futures Act 2001 of Singapore (the "SFA"). Accordingly, statutory liability under the SFA in relation to the content of prospectuses would not apply. You should consider carefully whether the investment is suitable for you.

This prospectus has not been and will not be registered as a prospectus with the Monetary Authority of Singapore (the "MAS") and the combined offering is not regulated by any financial supervisory authority pursuant to any legislation in Singapore. The Company is not authorised or recognised by the MAS and the shares of common stock are not allowed to be offered to the retail public. Accordingly, this prospectus and any other document or material in connection with the offer or delivery, or invitation for subscription or purchase, of the shares of our common stock may not be circulated or distributed, nor may the shares of our common stock be offered or delivered, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor under Section 4A of the SFA, or (ii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

Certain resale restrictions apply to the offer and investors are advised to acquaint themselves with such restrictions. The shares of our common stock, or interests in those shares, may not be offered or delivered or transferred to any person in Singapore other than to an institutional investor under Section 4A of the SFA or as permitted in writing by the Company and in accordance with the conditions of any other applicable provision of the SFA.

You should therefore ensure that your own transfer arrangements comply with the restrictions. You should seek legal advice to ensure compliance with the above arrangement.

#### For Prospective Investors Located in Switzerland
The Company has not been approved for offering to non-qualified investors by the Swiss Financial Market Supervisory Authority FINMA ("FINMA") pursuant to article 120(1) of the Swiss Federal Act on Collective Investment Schemes ("CISA") and no representative or paying agent in Switzerland has been appointed pursuant to article 120(4) CISA. Accordingly, the shares of our common stock may only be offered (within the meaning of article 3(g) of the Swiss Federal Act on Financial Services ("FinSA")) or marketed (within the meaning of article 127a of the Collective Investment Schemes Ordinance), directly or indirectly, in or from Switzerland and this prospectus and any other offering documents relating to the Company may only be made available in or from Switzerland to professional clients as defined in article 4(3) or private clients within the meaning of article 4(2) FinSA who are in a long-standing investment advisory or investment management relationship with a regulated financial intermediary and who did not declare that they shall not be treated as qualified investors in accordance with article 10 (3ter) CISA. Investors in the shares of our common stock do not benefit from the specific investor protection provided by CISA and the supervision by FINMA in connection with the approval for offering or the appointment of a representative and paying agent in Switzerland.

#### For Prospective Investors Located in the Dubai International Financial Centre (DIFC)
This prospectus relates to a company which is not subject to any form of regulation or approval by the Dubai Financial Services Authority ("DFSA").

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This prospectus is only intended for recipients who are classified as 'Deemed' Professional Clients under the DFSA Rulebook or following their request for such prospectus.

The DFSA has no responsibility for reviewing or verifying any prospectus or other documents in connection with the Company. Accordingly, the DFSA has not approved this prospectus or any other associated documents nor taken any steps to verify the information set out in this prospectus, and has no responsibility for it.

The shares of our common stock to which this prospectus relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers should conduct their own due diligence on the shares of our common stock.

If you do not understand the contents of this document you should consult an authorised financial adviser.

#### For Prospective Investors Located in the Abu Dhabi Global Market (ADGM)
This communication is sent strictly within the context of, and constitutes, an Exempt Communication.

This document relates to the shares of our common stock which is not subject to any form of regulation or approval by the Financial Services Regulatory Authority of the Abu Dhabi Global Market (the "FSRA"). The FSRA accepts no responsibility for reviewing or verifying any prospectus or documents in connection with the shares of our common stock. Accordingly, the FSRA has not approved this document or any other associated documents nor taken any steps to verify the information set out in this document, and has no responsibility for it.

The financial product to which this document relates may be illiquid and/or subject to restrictions on its resale. Prospective investors should conduct their own due diligence on the financial product.

This document does not constitute or form part of any offer to issue or deliver, or any solicitation of any offer to subscribe for the shares of our common stock in the Abu Dhabi Global Market and accordingly should not be construed as such.

If you do not understand the contents of this document you should consult an authorised financial adviser.

#### For Prospective Investors Located in United Arab Emirates (Excluding the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM))
This document, and the information contained herein, does not constitute, and is not intended to constitute, a public offer of securities in the United Arab Emirates ("UAE") and accordingly should not be construed as such. The shares of our common stock are only being offered to a limited number of exempt Professional Investors in the UAE who fall under one of the following categories: federal or local governments, government institutions and agencies or companies wholly owned by any of them. The shares of our common stock have not been approved by or licensed or registered with the UAE Central Bank, the Securities and Commodities Authority, the Dubai Financial Services Authority, the Financial Services Regulatory Authority or any other relevant licensing authorities or governmental agencies in the UAE (the "Authorities"). The Authorities assume no liability for any investment that the named addressee makes as an exempt Professional Investor. The document is for the use of the named addressee only and should not be given or shown to any other person (other than employees, agents or consultants in connection with the addressee's consideration thereof).

#### For Prospective Stockholders in Jersey
Consent under the Control of Borrowing (Jersey) Order 1958 has not been obtained for the circulation of this prospectus. Accordingly, the offer that is the subject of this prospectus may only be made in Jersey where the offer is not an offer to the public or the offer is valid in the United Kingdom or Guernsey and is circulated in Jersey only to persons similar to those to whom, and in a manner similar to that in which, it is for the time being circulated in the United Kingdom or Guernsey as the case may be. By accepting this offer each prospective investor in Jersey represents and warrants that he or she is in possession of sufficient information to be able to make a reasonable evaluation of the offer.

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#### For Prospective Stockholders in Thailand
This document is provided to you as permitted by applicable laws and regulations, or solely at your request, and is not intended to be an offer, sale, or invitation for subscription or purchase of any interests in the Company in Thailand. This document has not been, and will not be, reviewed or approved by the Office of the Securities and Exchange Commission of Thailand. Accordingly, this document and any other documents and materials, in connection with the offer or delivery, or invitations for subscription or purchase of any interests in the Company, may not be circulated or distributed, nor may the interests in the Company be offered or delivered, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to the public or any members of the public in Thailand, unless it is conducted by an entity holding appropriate securities business license under Thai law in accordance with the relevant laws and regulations.

#### For Prospective Stockholders in Chile
On June 27, 2012, the CMF issued General Rule No. 336 (Norma de Carácter General No. 336), or NCG 336, which is intended to govern the private offering of securities in Chile. NCG 336 provides that the offering of securities that meet the conditions described therein shall not be considered public offerings in Chile and shall be exempted from complying with the general rules applicable to public offerings.

The following information is provided to prospective investors pursuant to NCG 336:

1)<br> Date of commencement of the offer: as set forth on the cover page of this registration statement. The offer of the shares of our common stock is subject to NCG 336.

2) The subject matter of this offer are securities not registered with the securities registry (registro de valores) or the foreign securities registry (registro de valores extranjeros) kept by the CMF. As a consequence, the shares of our common stock are not subject to the oversight of the CMF.

3)<br> Since the shares of our common stock are not registered in Chile, there is no obligation to provide public information regarding the shares of our common stock in Chile.

4)<br> The shares of our common stock shall not be subject to public offering in Chile unless registered with the relevant securities registry kept by the CMF.

#### For Prospective Stockholders in Colombia
The shares of our common stock have not been and will not be registered with the Colombian National Registry of Securities and Issuers (*Registro Nacional de Valores y Emisores – RNVE*) maintained by the Financial Superintendence of Colombia (*Superintendencia Financiera de Colombia*; the "SFC") and, therefore, the shares of our common stock may not be publicly offered or delivered in Colombia. However, the shares of our common stock may be offered in Colombia under Colombian law pursuant to the private placement exemption set forth in the Colombian regulation (*Decree 2555 of 2010*), in accordance of which an offering shall be deemed a private placement if it is addressed to fewer than one hundred (100) specific persons (*article 6.1.1.1.1, Decree 2555 of 2010*). These materials are solely our responsibility and have not been reviewed or authorized by the SFC and may not be publicly distributed in Colombia. In making an investment decision, all investors, including any Colombian investor who may acquire shares of our common stock from time to time, must rely on their own examination of the terms of the offering and shares of our common stock, including the merits and risks involved.

#### For Prospective Stockholders in Kuwait
This document is not for general circulation to the public in Kuwait. The shares of our common stock have not been licensed for offering in Kuwait by the Kuwait Capital Markets Authority or any other relevant Kuwaiti government agency. The offering of the shares of our common stock in Kuwait on the basis of a private placement or public offering is, therefore, restricted in accordance with Law No. 7 of 2010 and the bylaws thereto (as amended). No private or public offering of the shares of our common stock is being made in Kuwait, and no agreement relating to the sale of the shares of our common stock will be concluded in Kuwait. No marketing or solicitation or inducement activities are being used to offer or market the shares of our common stock in Kuwait.

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#### For Prospective Stockholders in Peru
The shares of our common stock have not been and will not be registered with or approved by the Peruvian Superintendency of Capital Markets (*Superintendencia del Mercado de Valores,* or the "Peruvian SMV") or the Lima Stock Exchange (*Bolsa de Valores de Lima,* or the "BVL" or the "Lima Stock Exchange"). Accordingly, this offering will not be a public offering in Peru.

Peruvian securities laws and regulations on public offerings will not be applicable to the offering of the shares of our common stock and, therefore, the disclosure obligations set forth therein will not be applicable to us, before or after their acquisition by prospective investors. Offering materials relating to the offering of shares of our common stock are being supplied to those Peruvian investors who have expressly requested them. Such materials may not be distributed to any person or entity other than the intended recipients. Accordingly, the shares of our common stock cannot be offered or delivered in Peru, except if: (i) such shares of our common stock were previously registered with the Peruvian SMV, or (ii) such offering is considered a private offering under the Peruvian securities laws and regulations. The Peruvian securities laws establish, among other things, that an offer directed exclusively to institutional investors (as defined by Peruvian law) qualifies as a private offering. In making an investment decision, institutional investors (as defined by Peruvian law) must rely on their own examination of the terms of the offering of the shares of our common stock to determine their ability to invest in such shares.

No offer or invitation to subscribe for or sell shares of our common stock or beneficial interests therein can be made in Peru except in compliance with the Peruvian securities laws and regulations.

In making an investment decision, institutional investors must rely on their own examination of the terms of the offering of shares of our common stock to determine their ability to invest in them.

#### For Prospective Shareholders in Bahrain
This prospectus and the shares of our common stock have not been reviewed, approved or registered by the Central Bank of Bahrain ("CBB"), the Bahrain Bourse or the Ministry of Industry and Commerce of the Kingdom of Bahrain. None of these authorities has passed upon the merits of an investment in our common stock or the adequacy of this prospectus.

This prospectus does not constitute, and may not be used in connection with, an offer to the public in Bahrain. No marketing, promotion or offering of shares of our common stock will be conducted in or from within Bahrain, and no mass or general advertising will be undertaken in Bahrain. Any sale to persons in Bahrain will occur only on a strictly cross-border, reverse-enquiry basis. All subscription documents will be executed, and all subscription monies will be paid to and received, outside Bahrain. The distribution of this prospectus and any related offering materials in or into Bahrain is restricted. This prospectus may not be issued, passed to, or made available to the public generally in Bahrain.

By subscribing, each person in Bahrain represents, warrants and agrees that its approach to the Company was unsolicited and not the result of any marketing, promotion, invitation or inducement made in or from within Bahrain; that no in-person marketing meetings, roadshows or other promotional activities occurred with it in Bahrain; that all subscription documentation will be executed and all subscription monies will be remitted from and received outside Bahrain; that it will not reproduce or distribute this prospectus or any offering materials in or into Bahrain; and that it understands this prospectus is intended only for persons who are "Accredited Investors" as defined by the CBB and does not constitute a public offer in Bahrain.

#### For Prospective Investors Located in the British Virgin Islands
This prospectus and the shares of our common stock have not been registered, recognized, approved or licensed by the British Virgin Islands Financial Services Commission (the "BVI FSC"). Neither the BVI FSC nor any other authority in the British Virgin Islands ("BVI") has passed upon the merits of an investment in shares of our common stock or the adequacy of this prospectus. This prospectus does not constitute, and there will not be, an offering of shares of our common stock to the public in the BVI. The shares of our common stock are not being offered or sold, and no invitation to subscribe for shares of our common stock is being made in or from within the BVI. No person is authorized, in or from within the BVI, to make any invitation or inducement to any other person to subscribe for or purchase shares of our common stock, or otherwise to promote the Company.

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Notwithstanding the foregoing, shares of our common stock may be offered and sold (i) on a reverse-enquiry or unsolicited basis to persons in the BVI and (ii) from outside the BVI to BVI-domiciled companies, BVI corporate trustees and BVI partnerships comprised wholly of non-natural persons (together, "BVI Entities"), provided that no person promotes the Company in or from within the BVI, no in-person marketing occurs in the BVI, and all subscription documentation is executed and all subscription monies are received outside the BVI. By subscribing, each person or entity in the BVI (each, a "BVI Person") represents, warrants and agrees that its approach to the Company was unsolicited and not the result of any promotion, invitation or inducement made in or from within the BVI; that it did not participate in any in-person marketing meetings, roadshows or other promotional activities in the BVI; that all subscription documentation will be executed and all subscription monies will be remitted from and received outside the BVI; and that it will not reproduce or distribute this prospectus or any offering materials in or from within the BVI. If such BVI Person is a BVI-domiciled company, a BVI corporate trustee or a BVI partnership comprised wholly of non-natural persons, it further represents that any solicitation, if any, occurred from outside the BVI.

#### For Prospective Investors Located in India
This prospectus and the shares of our common stock have not been registered with, reviewed or approved by the Securities and Exchange Board of India ("SEBI"), the Reserve Bank of India ("RBI"), the Registrar of Companies ("ROC"), or any other Indian authority. No Indian authority has passed upon the merits of an investment in shares of our common stock or the adequacy of this prospectus. This prospectus does not constitute, and may not be used in connection with, an offer or invitation to the public in India, or a "prospectus" for registration with the ROC. The shares of our common stock will not be marketed, offered or sold in or into India except in a manner consistent with private placement practices and on a strictly reverse-enquiry basis. No cold-calling, mass solicitation, general advertising, or roadshows will be undertaken in India. All subscription documents will be executed, and all subscription monies will be paid and received, outside India. The distribution of this prospectus and any related offering materials in or into India is restricted. This prospectus may not be reproduced or distributed for the purpose of an offer or solicitation in India. Persons in India who receive this prospectus must inform themselves about and observe any applicable legal or regulatory restrictions.

By subscribing, each investor who is resident in, or located in, India represents, warrants and agrees that its approach was wholly unsolicited and not the result of any marketing, invitation or inducement in or into India; that it did not participate in any in-person marketing meetings, roadshows or other promotional activities in India; that all subscription documentation will be executed and all subscription monies will be remitted from and received outside India; that it will not distribute offering materials in or into India; and that it is permitted under applicable Indian exchange control and overseas investment rules (including, as applicable, the Foreign Exchange Management Act and the Overseas Investment/Liberalised Remittance Scheme framework) to acquire and hold shares of our common stock and has obtained, and will maintain, any required approvals or consents.

#### For Prospective Shareholders in Indonesia
This prospectus and the shares of our common stock have not been registered with, reviewed or approved by the Financial Services Authority of the Republic of Indonesia (Otoritas Jasa Keuangan or "OJK"). This prospectus does not constitute, and may not be used in connection with, an offering that constitutes a public offering in Indonesia. The shares of our common stock may not be offered or sold, directly or indirectly, in or into Indonesia or to any Indonesian party in a manner that would constitute a public offering under Indonesian law. No public advertising, mass solicitation or mass-media distribution in or into Indonesia will be undertaken. Subscription documents will not be executed in, and subscription monies will not be paid to or received in, Indonesia. The distribution of this prospectus and any related offering materials in or into Indonesia is restricted. This prospectus may not be reproduced or distributed for the purpose of an offer or solicitation in Indonesia. Persons in Indonesia who receive this prospectus must observe all applicable legal or regulatory restrictions.

By subscribing, each Indonesian party represents and agrees that it has not received any offer, invitation or inducement made in or into Indonesia or through Indonesian mass media; that no in-person marketing in Indonesia occurred with it; that all subscription documentation will be executed and all subscription monies will be remitted from and received outside Indonesia; and that it will not distribute offering materials in or into Indonesia and understands that the offering is not a public offering in Indonesia.

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#### For Prospective Investors Located in South Africa
This prospectus and the shares of our common stock have not been approved by the Financial Sector Conduct Authority ("FSCA") under the Collective Investment Schemes Control Act, 2002 ("CISCA") and are not registered for public offer in South Africa. This prospectus does not constitute, and may not be used for, an offer to the public in South Africa. No marketing, promotion or solicitation will be conducted in or into South Africa. Any sale to persons in South Africa will occur only in response to a genuine, specific and unsolicited reverse enquiry, and all subscription documents will be executed and all subscription monies will be paid and received outside South Africa. The distribution of this prospectus and any related offering materials in or into South Africa is restricted. This prospectus may not be reproduced or distributed for the purpose of an offer or solicitation in South Africa.

By subscribing, each South African investor represents, warrants and agrees that its approach was a genuine, specific and unsolicited reverse enquiry; that it did not receive any marketing, promotion or solicitation in or into South Africa; that no in-person marketing meetings or roadshows occurred with it in South Africa; that all subscription documentation will be executed and all subscription monies will be remitted from and received outside South Africa; and that it will not distribute offering materials in or into South Africa. The investor acknowledges that the Company is not approved under CISCA and that this prospectus does not constitute a public offer in South Africa.

#### For Prospective Investors Located in Barbados
The shares of our common stock have not been and will not be registered or approved by the Financial Services Commission of Barbados (the "FSC") under the Barbados Mutual Funds Act, Cap. 320B or the Securities Act, Cap. 318A, and no Barbadian regulator has reviewed this prospectus. Accordingly, this prospectus does not constitute, and should not be construed as an offer, sale, or invitation for subscription or purchase of any shares of our common stock in Barbados.

#### For Prospective Investors Located in Turkey
The securities described herein have not been, and will not be, registered with the Capital Markets Board of Turkey (the "CMB"), and no prospectus or issuance certificate has been approved by the CMB. This document does not constitute, and may not be used in connection with, a public offering in Turkey. No general solicitation, advertisement, or marketing will be carried out in or into Turkey. These materials are provided solely at the specific unsolicited request of the investor, on a confidential basis, and may not be reproduced or distributed in or into Turkey. Any sale to a person resident in Turkey will occur only on a genuine, unsolicited reverse enquiry basis. Documents to purchase the securities described herein will not be executed in, and monies to purchase such securities will not be paid to or received in, Turkey. Turkish residents are responsible for complying with applicable Turkish law, including routing transactions through a locally licensed intermediary and transferring payments via Turkish banks, as required.

By reviewing this document, each person resident in Turkey represents and agrees that it requested this information on an unsolicited basis and that it will not reproduce or distribute this document in or into Turkey.

#### For Prospective Shareholders in The Bahamas
The securities described herein have not been registered with, approved or licensed by the Securities Commission of The Bahamas ("SCB") and no prospectus or issuance certificate has been filed or approved in The Bahamas. This document does not constitute, and may not be used in connection with, an offer to the public in The Bahamas.

Interests will be offered and sold in or into The Bahamas only in circumstances that do not constitute a public offering and solely to "Accredited Investors" as defined in the Securities Industry Regulations, 2012. No general solicitation, advertising or public marketing will be undertaken in or into The Bahamas. The Fund is not administered or managed in or from The Bahamas.

These materials are provided solely at the specific request of the recipient on a confidential basis and may not be reproduced or distributed in or into The Bahamas. Subscription documents should be executed, and subscription monies paid and received, outside The Bahamas. Persons in The Bahamas are responsible for complying with any applicable Bahamian laws, including exchange control requirements of the Central Bank of The Bahamas.

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#### LEGAL MATTERS
Certain legal matters in connection with this offering will be passed upon for us by Simpson Thacher & Bartlett LLP, Washington, D.C. The validity of the shares of common stock issued in this offering will be passed upon for us by Brownstein Hyatt Farber Schreck, LLP, Las Vegas, Nevada. Certain legal matters in connection with this offering will be passed upon for the underwriters by Skadden, Arps, Slate, Meagher & Flom LLP, New York, New York.

#### EXPERTS
The consolidated financial statements of Pershing Square Holdco, L.P. at December 31, 2025 and 2024, and for each of the two years in the period ended December 31, 2025, appearing in this prospectus and registration statement have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their report thereon appearing elsewhere herein, and are included in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

The consolidated financial statements of Howard Hughes Holdings Inc. as of December 31, 2025 and 2024, and for each of the years in the three-year period ended December 31, 2025, and management's assessment of the effectiveness of internal control over financial reporting as of December 31, 2025 have been included herein in reliance upon the report of KPMG LLP, independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.

#### WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of common stock offered by this prospectus. This prospectus, filed as part of the registration statement, does not contain all of the information set forth in the registration statement and its exhibits and schedules, portions of which have been omitted as permitted by the rules and regulations of the SEC. For further information about us and shares of our common stock, we refer you to the registration statement and to its exhibits and schedules. Statements in this prospectus about the contents of any contract, agreement or other document are not necessarily complete and in each instance we refer you to the copy of such contract, agreement or document filed as an exhibit to the registration statement. You may inspect these reports and other information without charge at a website maintained by the SEC. The address of this site is www.sec.gov.

Upon the completion of this offering, we will become subject to the informational requirements of the Exchange Act and will be required to file reports and other information with the SEC. You will be able to inspect copies of these materials without charge at the SEC's website. We intend to make available to our common stockholders annual reports containing consolidated financial statements audited by an independent registered public accounting firm.

Following the completion of this offering, Mr. Ackman, our Founder and Chief Executive Officer, intends to use his X (formerly Twitter) account (@BillAckman) as a means of publicly disseminating current information about the Company and the funds from time to time including information about new and disposed of investments and hedges, as well as his views on macroeconomic, geopolitical and other developments. Accordingly investors should monitor this account in addition to following the Company's SEC filings and the Company's website (), as well as the Company's press releases and investor presentations and events. Information on, or accessible from, Mr. Ackman's X account or on the Company's website is not part of this prospectus by reference or otherwise.

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#### INDEX TO FINANCIAL STATEMENTS

---

| | |
|:---|:---|
| **Pershing Square Holdco, L.P.** <br>**Audited Consolidated Financial Statements** | **Page**  |
| [Report of Independent Registered Public Accounting Firm](#tRIR2) | [F-2](#tRIR2) |
| [Consolidated Statements of Financial Condition as of December 31, 2025 and 2024](#tCSF2) | [F-3](#tCSF2) |
| [Consolidated Statements of Operations for the Years Ended December 31, 2025 and 2024](#tCSO2) | [F-4](#tCSO2) |
| &nbsp;&nbsp;&nbsp;[Consolidated Statements of Changes in Partners' Capital for the Years Ended December 31, 2025 ](#tCSCF2)<br>[and 2024](#tCSCF2) | [F-5](#tCSCF2) |
| [Consolidated Statements of Cash Flows for the Years Ended December 31, 2025 and 2024](#tCSC2) | [F-6](#tCSC2) |
| [Notes to Consolidated Financial Statements](#tNCF2) | [F-7](#tNCF2) |

---

---

| | |
|:---|:---|
| **Howard Hughes Holdings Inc.** <br>**Audited Consolidated Financial Statements** | **Page** |
| [Management's Report on Internal Control over Financial Reporting](#t1MRIC) | [F-31](#t1MRIC) |
| [Report of Independent Registered Public Accounting Firm](#t1ROI) | [F-32](#t1ROI) |
| [Consolidated Balance Sheets as of December 31, 2025 and 2024](#t1CBS) | [F-34](#t1CBS) |
| [Consolidated Statements of Operations for the Years Ended December 31, 2025, 2024, and 2023](#t1CSO) | [F-35](#t1CSO) |
| &nbsp;&nbsp;&nbsp;[Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2025, ](#t1CSC)<br>[2024, and 2023](#t1CSC) | [F-36](#t1CSC) |
| [Consolidated Statements of Equity for the Years Ended December 31, 2025, 2024, and 2023](#t1CSE) | [F-37](#t1CSE) |
| [Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024, and 2023](#t1CSCF) | [F-38](#t1CSCF) |
| [Notes to Consolidated Financial Statements](#t2NCFS) | [F-40](#t2NCFS) |

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F-1<br>

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#### **TABLE OF CONTENTS**

#### Report of Independent Registered Public Accounting Firm
To the Partners of Pershing Square Holdco, L.P. and the Board of Directors of Pershing Square Holdco GP, LLC

#### Opinion on the Financial Statements
We have audited the accompanying consolidated statements of financial condition of Pershing Square Holdco, L.P. (the "Partnership") as of December 31, 2025 and 2024, the related consolidated statements of operations, changes in partners' capital and cash flows for each of the two years in the period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Partnership at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

#### Basis for Opinion
These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on the Partnership's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Partnership's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Ernst & Young LLP

We have served as the Partnership's auditor since 2010.

New York, New York

March 9, 2026

F-2<br>

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#### **TABLE OF CONTENTS**

#### <br>

#### Consolidated Statements of Financial Condition

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| | | |
|:---|:---|:---|
| **Year ended December 31,** | **2025** | **2024**  |
| **Assets**<br>|  |  |
| Cash and cash equivalents | &nbsp;&nbsp;&nbsp;&nbsp;**$55397767** | &nbsp;&nbsp;$964856513  |
| Restricted cash | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**118935** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;118935  |
| Performance fees receivable | &nbsp;&nbsp;&nbsp;&nbsp;**497330469** | &nbsp;&nbsp;&nbsp;&nbsp;232670263  |
| Due from affiliates<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15613554** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8069477  |
| Prepaid expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1344606** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;865523  |
| Investment in Howard Hughes Holdings Inc. ("HHH"), at fair value | &nbsp;&nbsp;&nbsp;&nbsp;**717930000** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Deferred HHH Services Agreement premium | &nbsp;&nbsp;&nbsp;&nbsp;**283158457** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Investment in Pershing Square, L.P., at fair value<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**79288239** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59512945  |
| Lease right-of-use assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28440786** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30589920  |
| Fixed assets and leasehold improvements (net of accumulated depreciation of **$17,592,861** and $15,292,146) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14983725** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16835002  |
| Deferred sublease incentive | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4129121** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4639939  |
| Other assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3465870** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;634149  |
| **Total assets** | **$1701201529** | $1318792666  |
| **Liabilities**<br>|  |  |
| Accrued compensation and benefits<sup>(1)</sup> | &nbsp;&nbsp;**$426093557** | &nbsp;&nbsp;&nbsp;$170114923  |
| Performance fee distributions payable<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**54838527** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49282797  |
| Affiliates fee rebate payable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24143741** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21661699  |
| Taxes payable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17029108** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13627356  |
| Distributions payable to partners | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10104536** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8736219  |
| Accounts payable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8620401** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6981829  |
| Deferred revenue | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3786000** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;Operating lease liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**42672771** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46329394  |
| &nbsp;&nbsp;Loans payable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**34800000** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34800000  |
| **Total liabilities** | &nbsp;&nbsp;&nbsp;&nbsp;**622088641** | &nbsp;&nbsp;&nbsp;&nbsp;351534217  |
| **Commitments and Contingencies (see Note 7)**<br>|  |  |
| **Partners' capital**<br>|  |  |
| Partners' capital controlling interests | &nbsp;&nbsp;**1016418004** | &nbsp;&nbsp;&nbsp;&nbsp;920469068  |
| Non-controlling interest in consolidated variable interest entities<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**62694884** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46789381  |
| &nbsp;&nbsp;Total partners' capital | &nbsp;&nbsp;**1079112888** | &nbsp;&nbsp;&nbsp;&nbsp;967258449  |
| **Total liabilities and partners' capital** | **$1701201529** | $1318792666 |

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<sup>(1)</sup> Includes amounts attributable to consolidated variable interest entities ("VIEs") for which Pershing Square Holdco, L.P. does not have any direct equity interests.

The accompanying notes form an integral part of these consolidated financial statements.<br>

F-3<br>

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#### <br>

#### Consolidated Statements of Operations

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| | | |
|:---|:---|:---|
| **Year ended December 31,** | **2025** | **2024**  |
| **Revenue**<br>|  |  |
| Management fees (net of contra-revenue of **$9,611,543** and $0) | **$230420369** | $206066898  |
| Performance fees<sup>(1)</sup> | &nbsp;&nbsp;**532087325** | &nbsp;&nbsp;249430688  |
| &nbsp;&nbsp;**Total revenue** | &nbsp;&nbsp;**762507694** | &nbsp;&nbsp;455497586 |
| **Expenses**<br>|  |  |
| Profit-sharing partner compensation<sup>(1)</sup> | &nbsp;&nbsp;**459079001** | &nbsp;&nbsp;339132746  |
| Affiliates fee rebate | &nbsp;&nbsp;&nbsp;**77579860** | &nbsp;&nbsp;&nbsp;69300950  |
| General and administrative expense | &nbsp;&nbsp;&nbsp;**42074054** | &nbsp;&nbsp;&nbsp;&nbsp;50811911  |
| Employee compensation and benefits | &nbsp;&nbsp;&nbsp;**20228019** | &nbsp;&nbsp;&nbsp;13164376  |
| &nbsp;&nbsp;Depreciation and amortization expense | &nbsp;&nbsp;&nbsp;&nbsp;**2300715** | &nbsp;&nbsp;&nbsp;&nbsp;2778063  |
| **Total expenses** | &nbsp;&nbsp;**601261649** | &nbsp;&nbsp;475188046 |
| **Operating income (loss)** | &nbsp;&nbsp;**161246045** | &nbsp;&nbsp;(19690460)  |
| **Non-operating income (expenses)**<br>|  |  |
| Unrealized gain (loss) on HHH shares held at fair value | &nbsp;&nbsp;**110700000** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Interest income | &nbsp;&nbsp;&nbsp;**16910323** | &nbsp;&nbsp;&nbsp;28508310  |
| Unrealized gain (loss) on investment in Pershing Square, L.P. held at fair value<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;**12224037** | &nbsp;&nbsp;&nbsp;&nbsp;6986422  |
| Other income | &nbsp;&nbsp;&nbsp;&nbsp;**5240476** | &nbsp;&nbsp;&nbsp;&nbsp;5666428  |
| Interest expense | &nbsp;&nbsp;&nbsp;&nbsp;**(2302369)** | &nbsp;&nbsp;&nbsp;&nbsp;(3095596)  |
| **Total non-operating income (expenses)** | &nbsp;&nbsp;**142772467** | &nbsp;&nbsp;&nbsp;38065564 |
| **Net income (loss) before taxes** | &nbsp;&nbsp;**304018512** | &nbsp;&nbsp;&nbsp;18375104  |
| Income tax expense | &nbsp;&nbsp;&nbsp;**22308640** | &nbsp;&nbsp;&nbsp;15985175  |
| **Net income (loss)** | &nbsp;&nbsp;**281709872** | &nbsp;&nbsp;&nbsp;&nbsp;2389929  |
| Less: Net (income) loss attributable to non-controlling interest | &nbsp;&nbsp;**(31933262)** | &nbsp;&nbsp;(16541033)  |
| **Net income (loss) attributable to Pershing Square Holdco, L.P.** | **$249776610** | $(14151104) |

---

(1) Includes amounts attributable to consolidated VIEs for which Pershing Square Holdco, L.P. does not have any direct equity interests. 

The accompanying notes form an integral part of these consolidated financial statements.<br>

F-4<br>

------

#### **TABLE OF CONTENTS**

#### <br>

#### Consolidated Statements of Changes in Partners' Capital

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Controlling** <br>**Interest - GP<sup>(1)</sup>** | **Controlling** <br>**Interest - LPs<sup>(1)</sup>** | **Limited Partner** <br>**Interest -** <br>**PS Holdco<sup>(2)</sup>** | **Non-controlling** <br>**Interest** | **Total**  |
| **As of December 31, 2023** | $3418131 | &nbsp;&nbsp;&nbsp;$75426004 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | $45847566 | &nbsp;&nbsp;$124691701  |
| Capital contributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1647202 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1647202  |
| Capital distributions | &nbsp;&nbsp;(1500428) | &nbsp;&nbsp;(148542421) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;(8099218) | &nbsp;&nbsp;&nbsp;(158142067)  |
| &nbsp;&nbsp;Net income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;313638 | &nbsp;&nbsp;&nbsp;&nbsp;31050107 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;5079321 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36443066  |
| **As of May 31, 2024** | &nbsp;&nbsp;&nbsp;**2231341** | &nbsp;&nbsp;&nbsp;**(40419108)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;**42827669** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4639902**  |
| General Partner transfer<sup>(1)</sup> | &nbsp;&nbsp;(2231341) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2231341 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Limited Partner transfer<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;40419108 | &nbsp;&nbsp;&nbsp;&nbsp;(40419108) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Capital contributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;1165766679 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;1165766679  |
| Capital distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;(145049016) | &nbsp;&nbsp;&nbsp;(7500000) | &nbsp;&nbsp;&nbsp;(152549016)  |
| Offering costs for Pershing Square Holdco, L.P. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(16545979) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(16545979)  |
| &nbsp;&nbsp;Net income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(45514849) | &nbsp;&nbsp;&nbsp;11461712 | &nbsp;&nbsp;&nbsp;&nbsp;(34053137)  |
| **As of December 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;**920469068** | &nbsp;&nbsp;&nbsp;**46789381** | &nbsp;&nbsp;&nbsp;&nbsp;**967258449**  |
| Capital contributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1461901** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1461901**  |
| Capital distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;**(155289575)** | &nbsp;&nbsp;**(16027759)** | &nbsp;&nbsp;&nbsp;**(171317334)**  |
| &nbsp;&nbsp;Net income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;**249776610** | &nbsp;&nbsp;&nbsp;**31933262** | &nbsp;&nbsp;&nbsp;&nbsp;**281709872**  |
| **As of December 31, 2025** | **$—** | **$—** | **$1016418004** | **$62694884** | **$1079112888** |

---

(1)<br> These balances represent the former classes of equity of Pershing Square Capital Management, L.P. prior to the Reorganization (defined and described in Note 1) which took place on May 31, 2024.

(2)<br> Pershing Square Holdco GP, LLC, the general partner of Pershing Square Holdco, L.P., did not have a capital balance at any time during the periods disclosed and is therefore not shown in the Consolidated Statements of Changes in Partners' Capital.

The accompanying notes form an integral part of these consolidated financial statements.<br>

F-5<br>

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#### **TABLE OF CONTENTS**

#### <br>

#### Consolidated Statements of Cash Flows

---

| | | |
|:---|:---|:---|
| **Year ended December 31,**  | **2025** | **2024**  |
| **Cash flows from operating activities**<br>|  |  |
| Net income | **$281709872** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$2389929  |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities:<br>|  |  |
| &nbsp;&nbsp;&nbsp;Amortization of deferred HHH Services Agreement premium | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9611543** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2300715** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2778063  |
| &nbsp;&nbsp;&nbsp;Non-cash lease expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2302819** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2782814  |
| &nbsp;&nbsp;&nbsp;Amortization of LTIP grants in profit-sharing partner compensation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1461901** | &nbsp;&nbsp;&nbsp;&nbsp;112737683  |
| &nbsp;&nbsp;&nbsp;Unrealized (gain) loss on HHH shares held at fair value | &nbsp;&nbsp;**(110700000)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Changes in operating assets and liabilities:<br>|  |  |
| &nbsp;&nbsp;&nbsp;Performance fees receivable | &nbsp;&nbsp;**(264660206)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89026283  |
| &nbsp;&nbsp;&nbsp;Due from affiliates | &nbsp;&nbsp;&nbsp;&nbsp;**(7544077)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62671548  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(479083)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;536375  |
| &nbsp;&nbsp;&nbsp;Deferred HHH Services Agreement premium | &nbsp;&nbsp;**(292770000)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;Investment in Pershing Square, L.P. | &nbsp;&nbsp;&nbsp;**(19775294)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6307697  |
| &nbsp;&nbsp;&nbsp;Deferred sublease incentive | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**510818** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;698573  |
| &nbsp;&nbsp;&nbsp;Other assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**321218** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;Accrued compensation and benefits | &nbsp;&nbsp;&nbsp;**255978634** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72688143  |
| &nbsp;&nbsp;&nbsp;Taxes payable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3401752** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;804022  |
| &nbsp;&nbsp;&nbsp;Deferred revenue | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3786000** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;Accounts payable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1638572** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1401191  |
| &nbsp;&nbsp;&nbsp;Affiliates fee rebate payable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2482042** | &nbsp;&nbsp;&nbsp;&nbsp;(56064460)  |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | &nbsp;&nbsp;&nbsp;&nbsp;**(3810308)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4276979)  |
| **Net cash provided by (used in) operating activities** | &nbsp;&nbsp;**(134233082)** | &nbsp;&nbsp;&nbsp;&nbsp;294480882  |
| **Cash flows from investing activities**<br>|  |  |
| Purchase of investment in HHH, net | &nbsp;&nbsp;**(607230000)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Purchases of fixed assets and leasehold improvements | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(449438)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1557877)  |
| **Net cash provided by (used in) investing activities** | &nbsp;&nbsp;**(607679438)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1557877) |
| **Cash flows from financing activities**<br>|  |  |
| Payments for capital distributions | &nbsp;&nbsp;**(164393287)** | &nbsp;&nbsp;&nbsp;(298747239)  |
| Offering costs for Pershing Square USA, Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;**(3152939)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(321218)  |
| Proceeds from capital contributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;1047164069  |
| Proceeds from borrowings | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16384813  |
| Repayment of borrowings | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;(80535856)  |
| Offering costs for Pershing Square Holdco, L.P. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;(16545979)  |
| **Net cash provided by (used in) financing activities** | &nbsp;&nbsp;**(167546226)** | &nbsp;&nbsp;&nbsp;&nbsp;667398590 |
| Net change in cash and cash equivalents and restricted cash | &nbsp;&nbsp;**(909458746)** | &nbsp;&nbsp;&nbsp;&nbsp;960321595  |
| Cash and cash equivalents and restricted cash, beginning of period | &nbsp;&nbsp;&nbsp;**964975448** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4653853  |
| **Cash and cash equivalents and restricted cash, end of period** | **$55516702** | $964975448  |
| **Supplemental disclosures:**<br>|  |  |
| Cash paid during the period for income tax expense | &nbsp;&nbsp;&nbsp;**$19437613** | &nbsp;&nbsp;&nbsp;&nbsp;$15181153  |
| Cash paid during the period for interest expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2358213** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4332283  |
| Non-cash activities:<br>|  |  |
| &nbsp;&nbsp;&nbsp;Capital contributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1461901** | &nbsp;&nbsp;&nbsp;&nbsp;120249812  |
| *Reconciliation of cash and cash equivalents and restricted cash*<br>|  |  |
| Cash and cash equivalents | &nbsp;&nbsp;&nbsp;&nbsp;**55397767** | &nbsp;&nbsp;&nbsp;&nbsp;964856513  |
| Restricted cash | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**118935** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;118935  |
| **Total cash and cash equivalents and restricted cash, end of period** | **$55516702** | $964975448 |

---

The accompanying notes form an integral part of these consolidated financial statements.<br>

F-6<br>

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#### **TABLE OF CONTENTS**

#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Notes to Consolidated Financial Statements
1. **ORGANIZATION** 

Pershing Square Holdco, L.P., a Delaware limited partnership ("PS Holdco" or the "Partnership"), was formed on April 11, 2024. Pershing Square Holdco GP, LLC, a Delaware limited liability company, serves as the general partner of PS Holdco. PS Holdco is the successor reporting entity to Pershing Square Capital Management, L.P., a Delaware limited partnership ("PSCM"), formed on December 17, 2003 that commenced operations on January 2, 2004.

On May 31, 2024, as part of an internal reorganization of PSCM (the "Reorganization"), PS Holdco became the indirect owner of PSCM and its general partner, PS Management GP, LLC, a Delaware limited liability company ("PSCM GP"). Prior to the Reorganization, 99% of the limited partnership interests of PSCM (the "PSCM LP Interests") were owned by Mr. William Ackman and other limited partners, and 1% of the PSCM LP Interests were owned by PSCM GP. At the time of the Reorganization, PSCM GP did not have any holdings other than its 1% interest in PSCM. Mr. Ackman was the managing member and sole owner of PSCM GP.

As part of the Reorganization, Mr. Ackman contributed his limited liability company interests in PSCM GP, and the limited partners of PSCM contributed the PSCM LP Interests to Pershing Square Partner Group, LLC, a Delaware limited liability company ("PSPG"). Immediately thereafter, PSPG contributed its interests in PSCM GP and the PSCM LP Interests to PS Holdco, and PS Holdco then contributed both interests to Pershing Square Intermediate Holdings, LLC, a Delaware limited liability company and wholly owned subsidiary of PS Holdco ("Intermediate Holdings"). As a result of the Reorganization, Intermediate Holdings is the sole limited partner of PSCM, and PS Holdco is the indirect owner of PSCM and PSCM GP.

On May 31, 2024, a consortium of strategic investors purchased a 10% minority equity interest in PS Holdco for a purchase price of $1.05 billion. Following the sale, PSPG owns 90% of the issued and outstanding limited partnership interests of PS Holdco.

On the same date, PS CompCo, LLC, a Delaware limited liability company ("CompCo" which was formerly named PS VariableCo, LLC), PSCM and PS Holdco entered into the Variable Compensation Agreement ("VCA"). The terms of the VCA specify the allocation of any performance fees earned by PSCM between PS Holdco and CompCo. Refer to Note 4 "Variable Compensation Agreement" for more details on the VCA.

#### Investment Manager and Managed Funds
PSCM is the investment manager to Pershing Square, L.P., a Delaware limited partnership ("PSLP"), Pershing Square International, Ltd., a Cayman Islands exempted company ("PSINTL" and together with PSLP, the "Private Funds"), and Pershing Square Holdings, Ltd., a publicly traded Guernsey limited liability company ("PSH", and collectively with the Private Funds, the "Core Funds"). The Core Funds generally implement substantially similar investment objectives, policies and strategies.

Prior to December 31, 2024, PSCM was also the investment adviser to PS VII, L.P., a Delaware limited partnership ("PSVII LP"), PS VII International, L.P., a Cayman Islands exempted limited partnership ("PSVII Intl"), PS VII Master, L.P., a Cayman Islands exempted limited partnership ("PSVII Master"), PS VII A International, L.P., a Cayman Islands exempted limited partnership ("PSVIIA"), and PS VII Employee Fund, LLC, a Delaware limited liability company ("PSVII Employee Fund" and together with PSVII LP, PSVII Intl, PSVII Master, and PSVIIA, the "PSVII Funds" and collectively with the Core Funds, the "Pershing Square Funds"). The PSVII Funds operated collectively as a co-investment vehicle that primarily invested in securities of (or otherwise sought to be exposed to the value of securities issued by) Universal Music Group, N.V. ("UMG"). PSVII GP, LLC, the general partner of PSVII Master, PSVII LP, PSVII Intl and PSVIIA ("PSVII GP"), determined to cease the operations of PSVII Master and PSVIIA and distribute its assets to limited partners as of December 31, 2024. All subsequent references to the PSVII Funds throughout these financial statements are applicable only up to their cessation date of December 31, 2024.

F-7<br>

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#### **TABLE OF CONTENTS**

#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
PSCM is a concentrated, research-intensive, fundamental value investor in the public markets. PSCM's investment objective with respect to the Core Funds is to preserve capital and seek maximum, long-term capital appreciation commensurate with reasonable risk. PSCM defines risk as the probability of a permanent loss of capital, rather than price volatility. In its value approach to investing, PSCM seeks to identify and have the Core Funds primarily invest in long (and occasionally short) investment opportunities that PSCM believes exhibit significant valuation discrepancies between current trading prices and intrinsic business (or net asset) value, often with a catalyst for value recognition.

The substantial majority of the Core Funds' portfolio is typically allocated to 8 to 12 core holdings usually comprising liquid, listed large capitalization North American companies. The Core Funds may make investments in a wide range of industry sectors, geographies and asset classes. PSCM seeks to invest in high-quality businesses, which it believes have limited downside and generate predictable, recurring cash flows. PSCM is an active and engaged investor that works with the companies in the Core Funds' portfolio to create substantial, enduring and long-term shareholder value. PSCM aims to manage risks through careful investment selection and portfolio construction, and may use opportunistic hedging strategies to mitigate market-related downside risk or to take advantage of asymmetric profit opportunities.

On May 5, 2025, PS Holdco and Howard Hughes Holdings Inc. ("HHH") entered into a Share Purchase Agreement (the "HHH Share Purchase Agreement") whereby PS Holdco purchased 9,000,000 shares of HHH's common stock, par value $0.01 per share, at a purchase price of $100 per share for an aggregate purchase price of $900,000,000. Following the completion of this purchase, PS Holdco owned 15.2% of HHH common stock, while the Core Funds, which PS Holdco does not consolidate, owned 31.7% of HHH common stock, providing PS Holdco and its affiliates with a collective voting power of 46.9% of the outstanding HHH common stock. Pursuant to a Standstill Agreement between PS Holdco and HHH dated May 5, 2025, PS Holdco, PSCM and the Core Funds are, in the aggregate, generally subject to a voting cap of 40% of the outstanding common stock of HHH (with all shares in excess of the cap voted proportionally to HHH shareholders other than PS Holdco, PSCM and the Core Funds).

In connection with the HHH Share Purchase Agreement, PSCM entered into a Services Agreement with HHH dated May 5, 2025 (the "HHH Services Agreement" and together with the HHH Share Purchase Agreement, the "HHH Agreements"), pursuant to which PSCM provides HHH with investment, advisory and other services. In consideration for these services, PSCM will receive a quarterly fixed fee (the "Base Management Fee") and be eligible to receive a quarterly variable fee (the "Variable Management Fee" and together with the Base Management Fee, the "HHH Fees"). The HHH Services Agreement has an initial 10-year term, with successive automatic 10-year renewal terms unless the agreement is terminated or not renewed in accordance with its terms. HHH may elect not to renew the HHH Services Agreement if the non-renewal is approved by a unanimous vote of the disinterested members of its board of directors and, subsequently, by holders of at least 70% of the outstanding shares of HHH common stock, excluding any shares held by PSCM and its affiliates (including PS Holdco). The HHH Services Agreement may be terminated by HHH in prescribed circumstances such as (i) with the approval of two-thirds of the disinterested members of its board of directors upon (a) a default of any material provision of the HHH Services Agreement by PSCM or any of its permitted assignees or subcontractors that results in material harm to HHH, (b) fraud, misappropriation or embezzlement by PSCM or any of its permitted assignees or subcontractors against HHH, (c) action(s) by PSCM or any of its permitted assignees or subcontractors constituting bad faith, willful misconduct, gross negligence, or criminal conduct in the performance of its duties under the HHH Services Agreement, (d) PSCM's entry into bankruptcy, insolvency or reorganization proceedings or (e) certain changes of control of HHH or (ii) with the prior unanimous approval of the disinterested members of its board of directors, upon PS Holdco and its affiliates (and their permitted transferees), in the aggregate, ceasing to own at least 9,000,000 shares of HHH's common stock, subject to equitable adjustment to reflect the effect of any stock split, reverse stock split or other capital reorganization, reclassification or adjustment with similar effect) on or prior to May 5, 2035 or ceasing to own at least 75% of such number of shares thereafter, in each case as a result of sales of shares to third parties.

F-8<br>

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#### **TABLE OF CONTENTS**

#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
On August 5, 2025 in connection with the HHH Services Agreement, each of the Core Funds amended and restated its investment management agreement ("IMA") to reduce the management fees PSCM will earn by an amount equal to the HHH Fees multiplied by the percentage of HHH's shares outstanding held by the relevant Core Fund attributable to fee-paying capital.

PSCM's primary sources of revenue are (i) management fees from the Core Funds and, prior to December 31, 2024, PSVII Master, (ii) the HHH Fees and (iii) performance fees from PSH and PSINTL. The Core Funds and PSVII Master pay management fees based on a percentage of their net asset value (before any accrued performance fees), and performance fees are based on a percentage charged of the net profits of PSH and PSINTL above a prior high-water mark. In addition, as described under "Consolidation" in Note 2, the performance allocations earned by the general partners of PSLP and PSVII Master are consolidated with PSCM's and the Partnership's revenue despite neither entity being the recipient of the funds resulting from the performance allocations. For any given period, the Partnership's revenues will be primarily driven by the performance of these funds.

PSCM is registered with the U.S. Securities and Exchange Commission ("SEC") as an investment adviser under the Advisers Act and with the Commodity Futures Trading Commission ("CFTC") as the commodity pool operator of the Core Funds under the Commodity Exchange Act, as amended.

#### Other Subsidiaries and Relationships
Pershing Square USA, Ltd. ("PSUS") is a Delaware statutory trust formed on November 28, 2023 and is registered with the SEC under the Investment Company Act of 1940, as amended, as a closed-end, non-diversified management investment company. PSCM has purchased PSUS common shares for the purpose of providing operating capital and is currently the sole equity holder of PSUS common shares. Refer to Note 4 for details on the share purchases.

West Side Services, LLC, a Delaware limited liability company, is a wholly owned subsidiary of PSCM related to certain of its office operations.

PSCM is the non-member manager of Pershing Square SPARC Sponsor, LLC ("SPARC Sponsor"), a Delaware limited liability company. The Core Funds are the non-managing members of SPARC Sponsor. SPARC Sponsor is the sponsor entity of Pershing Square SPARC Holdings, Ltd. ("SPARC"), a Delaware corporation formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other business combination transaction with one or more businesses. SPARC is actively looking for target companies for its business combination.

On December 15, 2025, the Partnership entered into a PSH Share Agreement with Mr. Ackman and certain other affiliates (together with Mr. Ackman, the "Shareholders") for no consideration, pursuant to which each Shareholder granted the Partnership the right, but not the obligation, to acquire from such Shareholder a certain percentage of the outstanding ordinary shares of PSH (the "Subject PSH Shares") in exchange for shares in the Partnership's publicly listed successor entity at an agreed upon ratio (the "PSH Share Acquisition"). As of December 31, 2025, the Subject PSH Shares represented approximately 26% of the total number of PSH shares issued and outstanding. Pursuant to the PSH Share Agreement, the Partnership has the right to consummate the PSH Share Acquisition at any time on or after the ninth anniversary, and on or before the tenth anniversary, of the IPO of the Partnership. As such, no PSH shares were acquired as of December 31, 2025.

2. **SIGNIFICANT ACCOUNTING POLICIES** 

#### Basis of Presentation
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the accounts of the Partnership, its wholly owned subsidiaries, and entities in which the Partnership is deemed to be the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation.

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The Partnership accounted for the Reorganization, described under "Organization" in Note 1, as a common control transaction. The Reorganization resulted in a change in reporting entity from PSCM to PS Holdco. All balances and disclosures for periods prior to May 31, 2024, the date of the Reorganization, represent the historical activities of PSCM, the predecessor reporting entity to PS Holdco.

All amounts are stated in U.S. dollars. The following is a summary of the significant accounting and reporting policies used in preparing the Partnership's consolidated financial statements.

#### Use of Estimates
The preparation of the Partnership's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amounts of income and expenses during the reported period. While management believes that the estimates utilized in preparing the consolidated financial statements are reasonable and prudent, actual results could differ from those estimates.

#### Consolidation
The Partnership consolidates all subsidiaries in accordance with GAAP and Financial Accounting Standards Board ("FASB") ASC 810, *Consolidation* ("ASC 810").

The Partnership consolidates the accounts of both Intermediate Holdings, as a 100% directly owned subsidiary, and PSCM, as a 100% indirectly owned subsidiary. The Partnership includes both entities' assets and liabilities and their results of operations in the Partnership's consolidated financial statements.

The Partnership consolidates all entities that it, or any of its subsidiaries (for the remainder of this Consolidation section, any reference to the "Partnership" also includes all of its subsidiaries), control either as the primary beneficiary of a variable interest entity ("VIE") or through a majority voting interest. The Partnership identifies VIEs it must consolidate by evaluating (i) whether it holds a variable interest in an entity, (ii) whether the entity is a VIE, and (iii) whether the Partnership's involvement would make it the primary beneficiary. Entities that do not qualify as VIEs are generally assessed for consolidation as voting interest entities ("VOEs"). Under the VOE model, the Partnership consolidates those entities for which it holds a majority voting interest.

In evaluating whether the Partnership holds a variable interest in an entity, fees received from the entity (including management fees and performance fees) that are customary and commensurate with the level of services provided are not considered variable interests where the Partnership does not also hold other economic interests in the entity that would absorb more than an insignificant amount of the expected losses or returns of the entity.

If there are entities where the Partnership holds a variable interest, the Partnership must then determine whether each entity qualifies as a VIE and, if so, whether the Partnership is the primary beneficiary. A VIE is a corporation, partnership, limited liability company, trust or other legal structure used to conduct activities or hold assets that has: (i) insufficient equity to carry out its principal activities without additional subordinated financial support, (ii) a group of equity owners that lack the power to direct its activities that significantly impact economic performance, or (iii) a group of equity owners that do not have the obligation to proportionally absorb losses or the right to proportionally receive returns generated by its operations.

In evaluating whether the Partnership is the primary beneficiary of a VIE, the Partnership evaluates its economic interests in the entity held either directly or indirectly. VIEs are consolidated when an entity, as the primary beneficiary, holds a controlling financial interest in the VIE. An enterprise is deemed to have a controlling financial interest in a VIE if (i) the enterprise has the power to direct the activities of a VIE that impacts the economic performance and (ii) the enterprise has the obligation to absorb losses, or the right to receive benefits that could potentially be significant to the VIE.

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The Partnership has evaluated the Pershing Square Funds, their respective general partners and any affiliated entities, as applicable, for consolidation with the Partnership in accordance with ASC 810. As the Partnership does not hold economic interests in the Pershing Square Funds that would absorb more than an insignificant amount of their expected losses or returns, the Partnership does not hold a variable interest in any of the Pershing Square Funds. The Partnership also does not hold a majority of the voting interests in the Pershing Square Funds. As a result, the Pershing Square Funds are not required to be consolidated with the Partnership under ASC 810.

Conversely, the Partnership has determined to consolidate Pershing Square GP, LLC ("PSGP"), the general partner of PSLP, and PSVII GP under ASC 810. As PSCM compensates its personnel using the performance allocations received by PSGP and PSVII GP, PSCM is exposed to variability in the expected losses or returns of these entities and holds a variable interest in both PSGP and PSVII GP. PSCM, as investment manager of the Pershing Square Funds, has the power to direct the activities of PSGP and PSVII GP that most significantly impact its economic performance (i.e. PSGP and PSVII GP's receipt of performance allocations), and PSCM is the primary beneficiary of such economic performance as a result of using PSGP and PSVII GP's performance allocations to compensate PSCM's personnel.

The following tables summarize the consolidated balances of PSGP:

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| | | |
|:---|:---|:---|
| **Summarized Financial Information - Pershing Square GP, LLC** | **December 31, 2025** | **December 31, 2024**  |
| *Statements of Financial Condition*<br>|  |  |
| Assets<br>|  |  |
| &nbsp;&nbsp;&nbsp;Investment in Pershing Square, L.P., at fair value | &nbsp;&nbsp;&nbsp;**$79288239** | &nbsp;&nbsp;&nbsp;$59512945  |
| &nbsp;&nbsp;&nbsp;Due from affiliates | &nbsp;&nbsp;&nbsp;**11800000** | &nbsp;&nbsp;&nbsp;7500000  |
| **Total assets** | &nbsp;&nbsp;&nbsp;**$91088239** | &nbsp;&nbsp;&nbsp;$67012945  |
| Liabilities and Equity<br>|  |  |
| &nbsp;&nbsp;&nbsp;Accrued compensation and benefits | &nbsp;&nbsp;&nbsp;**$16593355** | &nbsp;&nbsp;&nbsp;$12723564  |
| &nbsp;&nbsp;&nbsp;Performance fee distributions payable | &nbsp;&nbsp;&nbsp;**11800000** | &nbsp;&nbsp;&nbsp;7500000  |
| **Total liabilities** | &nbsp;&nbsp;&nbsp;**28393355** | &nbsp;&nbsp;&nbsp;20223564  |
| &nbsp;&nbsp;&nbsp;Non-controlling interest | &nbsp;&nbsp;&nbsp;**62694884** | &nbsp;&nbsp;&nbsp;46789381  |
| **Total liabilities and equity** | &nbsp;&nbsp;&nbsp;**$91088239** | &nbsp;&nbsp;&nbsp;$67012945 |

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| | | |
|:---|:---|:---|
| *Statements of Operations* <br>|  |  |
| &nbsp;&nbsp;&nbsp;Performance allocation from Pershing Square, L.P.<sup>(1)</sup> | **$29742303** | $14543002  |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on investment in Pershing Square, L.P. held at fair value | &nbsp;&nbsp;&nbsp;**12224037** | &nbsp;&nbsp;&nbsp;6986422  |
| &nbsp;&nbsp;&nbsp;Profit-sharing partner compensation | &nbsp;&nbsp;**(10033078)** | &nbsp;&nbsp;(4988391)  |
| **Net income (loss) attributable to non-controlling interest** | **$31933262** | $16541033 |

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(1)<br> Included in performance fees on PS Holdco's Consolidated Statements of Operations

The Partnership does not have any variable interests in VIEs that are not consolidated. The Partnership also consolidates the accounts of PSUS, PSCM GP and West Side Services, LLC as they are wholly owned subsidiaries of PSCM.

Prior to December 20, 2024, the Partnership consolidated the accounts of a trust for the Partnership's corporate aircraft created between the Partnership as trustor and Delaware Trust Company as owner trustee. The Partnership no longer owns this aircraft as it was distributed in kind to Mr. Ackman on December 20, 2024. Refer to Note 4 "Corporate Aircraft" for details on the distribution.

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#### &nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Non-controlling Interests
A portion of the equity and income or loss from entities that are consolidated but not wholly owned by the Partnership is allocated to other owners. The portion allocated to other owners is included within non-controlling interest in the consolidated financial statements. The Partnership does not hold any direct equity interests in PSGP or PSVII GP. As a result, all net income related to both entities is allocated to non-controlling interest, and the capital balances of PSGP and PSVII GP represent the direct equity interests of other owners in PSGP and PSVII GP, as applicable.

Non-controlling interest is presented as a separate component of partners' capital in the Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Partners' Capital to clearly distinguish the controlling interests in the Partnership (general partner and limited partner interests) from the non-controlling interests in PSGP and PSVII GP, as applicable. Net income in the Consolidated Statements of Operations includes the net income attributable to the holders of non-controlling interests in the VIEs. Income and losses are allocated to the non-controlling interest in proportion to their relative ownership interests.

#### Revenue Recognition
PSCM receives management fees and performance fees from certain Pershing Square Funds in exchange for investment management services. These revenues are derived from PSCM's IMAs with each fund. PSCM also receives the HHH Fees in exchange for investment, advisory and other services, pursuant to the HHH Services Agreement.

The Partnership recognizes revenue in accordance with ASC 606, *Revenue from Contracts with Customers* ("ASC 606"). Revenue is recognized when the Partnership transfers promised goods or services to customers in an amount that reflects the consideration to which the Partnership expects to be entitled in exchange for those goods or services. ASC 606 requires an entity to: (i) identify the contract(s) with a customer, which includes assessing the collectability of the consideration to which it will be entitled in exchange for the goods or services transferred to the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when the entity satisfies a performance obligation.

*Management Fees* 

PSCM acts as investment manager providing management and administrative services to the Pershing Square Funds in accordance with each of their IMAs. As compensation for such services, PSCM receives a quarterly management fee of 0.375%, equal to 1.50% annually, of the net asset value (before any accrued performance fees or allocations) of the Core Funds, and a quarterly management fee of 0.0625%, equal to 0.25% on an annual basis, of the net asset value (before any accrued performance allocation) of the PSVII Funds. The Core Funds reduce management fees by an amount equal to the HHH Fees multiplied by the percentage of HHH's shares outstanding held by the relevant Core Fund attributable to fee-paying capital. Management fees are recognized in the period during which the related services are performed.

Management fees are generally calculated and paid to PSCM quarterly in advance, based on the amount of fee-paying assets under management at the beginning of the quarter. Management fees are prorated for capital contributions in the Private Funds received during the quarter. Accordingly, changes in PSCM's management fee revenue from quarter to quarter are driven by changes in fee-paying assets and the relative magnitude and timing of contributions and withdrawals.

*Management Fees - HHH Fees* 

Pursuant to the HHH Services Agreement, PSCM receives from HHH: (i) the quarterly Base Management Fee of $3.75 million, which is adjusted annually for inflation and (ii) the quarterly Variable Management Fee equal to 0.375% of the increase in HHH's equity market capitalization above a reference market capitalization

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#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
(the "Reference Market Cap"). The Reference Market Cap is determined by multiplying the post-transaction share count (the "Reference Share Count") by a reference market price (the "Reference Market Price"), which is adjusted annually for inflation, subject to equitable adjustment for stock splits, reclassifications or similar capital changes.

Consistent with ASC 606, the Partnership considers the HHH Agreements to be one contract as they were executed at the same time with a single commercial objective. As a result, the $900,000,000 purchase price was recognized as two separate amounts following the execution of the HHH Agreements: (i) a $607,230,000 investment in HHH, which was calculated as 9,000,000 shares multiplied by HHH's publicly traded price of $67.47 as of the close of business on May 2, 2025, the most recent observable price at the time (refer to "Fair Value of Financial Instruments" for details on the classification and fair value election for this investment), and (ii) a $292,770,000 deferred asset for the premium paid above HHH's publicly traded share price (the "HHH Premium"), which is deemed to represent the amount paid to obtain the HHH Services Agreement.

The HHH Premium will be amortized straight-line as contra-revenue in management fees over a period of 20 years, with the first period's amortization being prorated for a start date of May 5, 2025. For the year ended December 31, 2025, the HHH Premium amortization recognized as contra-revenue totaled $9,611,543. The estimated amortization expense related to the HHH Premium for each of the next five fiscal years is $14,638,500.

The Partnership assessed the HHH Premium for impairment and determined that it was fully recoverable over the amortization period of 20 years; therefore, no impairment was recognized.

*Performance Fees* 

PSCM earns performance fees from PSINTL and PSH as their investment manager, and PSGP receives a performance allocation from PSLP as its general partner. Performance fees and the performance allocation are based on the net income of each Core Fund through the end of the fiscal year or upon capital withdrawals, above a prior high-water mark. The performance fees/allocation, if earned, are payable upon the occurrence of crystallization events, which include, but are not limited to, December 31 of each year, withdrawals from the Private Funds and PSH's payment of a dividend. Any crystallized or accrued performance fees for PSINTL and PSH earned during the year and outstanding at year-end are reported within performance fees receivable. See Note 4 for further disclosure regarding Core Fund performance fees.

#### Cash and Cash Equivalents
The Partnership considers all highly liquid financial instruments with a maturity of three months or less at the time of purchase to be cash equivalents. As of December 31, 2025, cash and cash equivalents was comprised of $1,339,595 (2024: $1,776,964) of cash held at a U.S. bank and $54,058,172 (2024: $963,079,549) of cash equivalents held in two money market funds invested in U.S. Treasury obligations (JPMorgan 100% U.S. Treasury Securities Money Market Fund and UBS Select 100% US Treasury Preferred Fund Class T). Money market funds are carried at net asset value, which approximates fair value, and would be considered Level I if they were included in the fair value hierarchy. The interest earned on cash invested in money market funds is recorded in interest income.

#### Restricted Cash
The Partnership has provided various security deposits held by service providers in the normal course of business. Such security deposits are generally restricted until the termination of each service provider's contract period.

#### Due from Affiliates
The Pershing Square Funds, partners, employees and other affiliates reimburse the Partnership from time to time for expenses the Partnership pays on their behalf. Reimbursements owed to the Partnership are reflected in due from affiliates. See Note 4 for further disclosure of transactions with related parties.

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#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
As of December 31, 2025, due from affiliates was primarily comprised of (i) PSGP's capital withdrawal from PSLP of $11,800,000 that was not received as of the balance sheet date, and (ii) the Variable Management Fee of $3,345,230 receivable from HHH.

As of December 31, 2024, due from affiliates was primarily comprised of $7,500,000 of PSGP's capital withdrawal from PSLP that was not received as of December 31, 2024.

As of December 31, 2025 and 2024, no allowance related to due from affiliates was deemed necessary.

#### Fair Value of Financial Instruments
The Partnership's assets and liabilities that qualify as financial instruments under GAAP are generally recorded at fair value or at an amount where the carrying value approximates fair value due to the instrument's short-term nature.

The Partnership's investment in HHH is classified as an equity method investment as the Partnership is deemed to exert significant influence over HHH, given (i) the Partnership's ability to vote based on its direct ownership and the Core Funds' ownership of HHH and (ii) PSCM's right to designate directors on the Board of Directors of HHH. The Partnership has elected the fair value option for this investment, and changes in fair value are, therefore, recognized through profit and loss. The Partnership's investment in HHH is a Level I investment in the fair value hierarchy as its shares are publicly traded and quoted prices are readily available.

As of December 31, 2025, the Partnership's investment in HHH was valued at $717,930,000, which represented an ownership percentage of approximately 15.2%. For the year ended December 31, 2025, the Partnership recorded an unrealized gain of $110,700,000 from its investment in HHH.

The summarized financial information of the Partnership's equity method investment in HHH is as follows. The summarized Statement of Operations is presented for the period from May 5, 2025, the inception date of the Partnership's investment in HHH, through December 31, 2025.

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| | |
|:---|:---|
| **Summarized Financial Information - HHH** | **December 31, 2025**  |
| *Statement of Financial Condition*<br>|  |
| Assets<br>|  |
| &nbsp;&nbsp;&nbsp;Net investment in real estate | &nbsp;&nbsp;$7367055000  |
| &nbsp;&nbsp;&nbsp;All other assets | &nbsp;&nbsp;&nbsp;3272406000  |
| **Total assets** | **$10639461000**  |
| Liabilities and Equity<br>|  |
| &nbsp;&nbsp;&nbsp;Mortgages, notes, and loans payable, net | &nbsp;&nbsp;$5109828000  |
| &nbsp;&nbsp;&nbsp;All other liabilities | &nbsp;&nbsp;&nbsp;1687387000  |
| **Total liabilities** | &nbsp;&nbsp;&nbsp;**6797215000**  |
| &nbsp;&nbsp;&nbsp;Total equity | &nbsp;&nbsp;&nbsp;3842246000  |
| &nbsp;&nbsp;**Total liabilities and equity** | **$10639461000** |

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| | |
|:---|:---|
|  | **For the period from**<br>**May 5, 2025 to**<br>**December 31, 2025**  |
| *Statement of Operations*<br>|  |
| &nbsp;&nbsp;&nbsp;Total revenues | $1229024000  |
| &nbsp;&nbsp;&nbsp;Total expenses | &nbsp;&nbsp;&nbsp;(948112000)  |
| &nbsp;&nbsp;&nbsp;Total other income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(294000)  |
| **Operating income** | &nbsp;&nbsp;&nbsp;&nbsp;**280618000**  |
| **Net income (loss)** | &nbsp;&nbsp;&nbsp;&nbsp;**121035000**  |
| **Net income (loss) attributable to common stockholders** | **$121427000** |

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#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
PSGP's investment in PSLP is considered an equity method investment as PSCM is deemed to exert significant influence over PSLP as the fund's investment manager. The Partnership has elected the fair value option for this investment. Fair value for PSGP's investment in PSLP is determined using the net asset value of PSLP in accordance with the "practical expedient" as defined by GAAP.

As of December 31, 2025, PSGP had an investment of $79,288,239 (2024: $59,512,945) in PSLP, which represented an ownership percentage of approximately 5.2% (2024: 4.5%). For the year ended December 31, 2025, PSGP recorded a gain of $12,224,037 (2024: gain of $6,986,422) from its investment in PSLP.

The summarized financial information of the Partnership's equity method investment in PSLP is as follows:

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| | | |
|:---|:---|:---|
| **Summarized Financial Information - Pershing Square, L.P.** | **December 31, 2025** | **December 31, 2024**  |
| *Statements of Financial Condition*<br>|  |  |
| Assets<br>|  |  |
| &nbsp;&nbsp;&nbsp;Investments and derivative contracts | **$1617395505** | $1388621627  |
| &nbsp;&nbsp;&nbsp;Other assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28012056** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31896578  |
| &nbsp;&nbsp;**Total assets** | **$1645407561** | $1420518205  |
| Liabilities and Equity<br>|  |  |
| &nbsp;&nbsp;&nbsp;Other liabilities | **$114759041** | $92556743  |
| **Total liabilities** | &nbsp;&nbsp;&nbsp;&nbsp;**114759041** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;92556743  |
| &nbsp;&nbsp;&nbsp;Partners' capital | &nbsp;&nbsp;**1530648520** | &nbsp;&nbsp;1327961462  |
| **Total liabilities and equity** | **$1645407561** | $1420518205 |

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| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
| *Statements of Operations*<br>| **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;Net gain from investments in securities and derivative contracts | **$331635242** | $145537342  |
| &nbsp;&nbsp;&nbsp;Investment income | &nbsp;&nbsp;&nbsp;&nbsp;**11579153** | &nbsp;&nbsp;&nbsp;16122457  |
| &nbsp;&nbsp;&nbsp;Total expenses | &nbsp;&nbsp;**(12643683)** | &nbsp;&nbsp;(12811605)  |
| **Net income** | **$330570712** | $148848194 |

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Partners in PSGP can withdraw all of their partnership interest each calendar quarter upon 45 days prior written notice, but are subject to (i) PSCM's contractual or regulatory restrictions on trading, or "trading windows" whereby PSCM may be in possession of any material nonpublic information regarding one or more of PSLP's portfolio companies and (ii) any other limitations on withdrawals as set forth in the general partner agreement.

#### Fixed Assets and Leasehold Improvements, Net of Accumulated Depreciation and Amortization
Fixed assets and leasehold improvements consist of leasehold improvements principally for the build-out of the Partnership's office space, furniture and fixtures, office computers and equipment along with computer software. The Partnership previously owned a corporate aircraft, which it distributed in-kind to Mr. Ackman on December 20, 2024. Refer to Note 4 "Corporate Aircraft" for details on the distribution.

Fixed assets and leasehold improvements are recorded at cost less accumulated depreciation and amortization. Depreciation of fixed assets is calculated using the straight-line method over a period of three to seven years. Leasehold improvements are amortized over the shorter of the expected useful life or the remaining term of the related lease agreement. Total depreciation and amortization expense of the Partnership for the year ended December 31, 2025 was $2,300,715 (2024: $2,778,063). The Partnership evaluates fixed assets for impairment whenever events or changes in circumstances indicate that an asset's carrying value may not be fully recovered. The Partnership has determined that there was no impairment to be recorded for its fixed assets.

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#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
The following table provides the gross balances for each class of fixed assets and total accumulated depreciation and amortization for all asset classes:

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| | | | |
|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2024**  |
| **Asset Class** | **Useful Life** |  |  |
| Leasehold Improvements | &nbsp;&nbsp;&nbsp;&nbsp;15 | &nbsp;&nbsp;**$28395531** | &nbsp;&nbsp;$28333531  |
| Furniture and Fixtures | &nbsp;&nbsp;&nbsp;&nbsp;7 | &nbsp;&nbsp;&nbsp;&nbsp;**2173959** | &nbsp;&nbsp;&nbsp;&nbsp;2071436  |
| Office Computers and Equipment | &nbsp;&nbsp;&nbsp;&nbsp;5 | &nbsp;&nbsp;&nbsp;&nbsp;**1528371** | &nbsp;&nbsp;&nbsp;&nbsp;1260768  |
| Computer Software | &nbsp;&nbsp;&nbsp;&nbsp;3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**478725** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;461413  |
| Total Fixed Assets and Leasehold Improvements (gross) |  | &nbsp;&nbsp;&nbsp;**32576586** | &nbsp;&nbsp;&nbsp;32127148  |
| Less: Accumulated Depreciation and Amortization |  | &nbsp;&nbsp;**(17592861)** | &nbsp;&nbsp;(15292146)  |
| **Total Fixed Assets and Leasehold Improvements (net)** |  | &nbsp;&nbsp;**$14983725** | &nbsp;&nbsp;$16835002 |

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#### Accounts Payable
Accounts payable is comprised of primarily general and administrative expenses as well as interest expense that were accrued but not paid as of year-end. For more details on general and administrative expenses, refer to Note 5.

#### Income Taxes
The Partnership is a partnership for U.S. tax purposes and is not subject to U.S. federal income taxes. Accordingly, no provision has been made for federal income taxes of the Partnership since the partners are individually liable for the taxes on their share of the Partnership's taxable income or loss.

The Partnership is subject to certain state and local taxes. New York City Unincorporated Business Tax ("UBT") is recorded on a quarterly basis at the rate of 4% based on the net taxable income apportioned to New York City. Commercial Rent Tax ("CRT") is recorded on a quarterly basis at the rate of 6% based on the amount of commercial rent subject to tax. The Partnership records interest and penalties related to income taxes, if any, within income tax expense. For the year ended December 31, 2025, the Partnership recorded $22,308,640 (2024: $15,985,175) of tax expense, which primarily relates to UBT. As of December 31, 2025, $16,494,887 of UBT expense remained payable (2024: $13,627,356).

For the 2025 tax year, the Partnership and its parent entity PSPG both elected to be subject to the New York State Pass-Through Entity Tax ("NYS PTET") and the New York City Pass-Through Entity Tax ("NYC PTET" and together with NYS PTET, "PTET"). The Partnership's predecessor entity PSCM made the same elections for the 2024 tax year.

PTET grants eligible partners a tax credit on their individual New York State and New York City income tax returns. Any PTET owed is a joint liability of (i) the Partnership or PSPG and (ii) each partner. For the year ended December 31, 2025, the Partnership and PSPG made quarterly PTET payments totaling $32,937,551 (2024: $71,304,813) on behalf of their partners. These PTET payments were recorded, as applicable, in profit-sharing partner compensation and/or capital distributions according to each partner's participation in LTIP (defined below). For Mr. Ackman, PTET payments were recorded as capital distributions.

As of December 31, 2025, PTET accruals of $10,104,536 and $3,224,380 (2024: $8,736,219 and $3,263,171) were recorded in distributions payable to partners and accrued compensation and benefits, respectively.

The Partnership is subject to the provisions of ASC 740*, Income Taxes.* This standard requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Partnership's tax returns to determine whether it is "more-likely-than-not" to be sustained by the applicable tax authority. Uncertain tax positions in which the benefit to be realized does not meet the "more-likely-than-not" threshold would be recorded as a tax expense in the current year. For the years ended December 31, 2025 and 2024, the Partnership

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#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
did not accrue interest or penalties related to uncertain tax positions. The Partnership has evaluated its tax positions for the years ended December 31, 2025 and 2024 and does not believe that there will be a significant change to the uncertain tax positions within twelve months of the reporting date. The Partnership's tax returns for tax years 2022 and forward are open to examination by the IRS.

#### Lessee arrangements
PSCM leases office space, other real estate and certain equipment under operating leases. In accordance with ASC 842, *Leases* ("ASC 842"), the Partnership determines if an arrangement is or contains a lease at inception date by evaluating whether the arrangement conveys the right to use an identified asset and whether the Partnership obtains substantially all of the economic benefits from and has the ability to direct the use of the asset.

Under ASC 842, the Partnership elected the practical expedient to not separate lease and non-lease components. The Partnership also elected to apply the short-term lease recognition exemption which eliminates the requirement to present in the Consolidated Statements of Financial Condition leases with a term of 12 months or less. These two practical expedients were elected for all classes of underlying assets.

For short-term leases, instead of recognizing a lease liability and right-of-use asset ("ROU asset"), the Partnership recognizes short-term lease payments as an expense on a straight-line basis over the lease term. A short-term lease is defined as a lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. When determining whether a lease qualifies as a short-term lease, the Partnership evaluates the lease term and the purchase option in the same manner as all other leases.

At the commencement date of a lease which does not qualify as a short-term lease, the Partnership recognizes a lease liability and an ROU asset representing the Partnership's right to use the underlying asset over the lease term. The initial measurement of the lease liability is calculated on the basis of the present value of the remaining lease payments, and the ROU asset is measured on the basis of this liability, adjusted by prepaid and accrued rent, lease incentives and initial direct costs. Operating lease cost is recognized on a straight-line basis over the lease term, with the cost presented as a component of general and administrative expense. The Partnership does not have finance leases.

PSCM's leases require other payments such as costs related to service components, real estate taxes, common area maintenance and insurance. These costs are generally variable in nature and based on the actual costs incurred and required by the lease. As the Partnership has elected to not separate lease and non-lease components for all classes of underlying assets, all variable costs associated with the leases are expensed in the period incurred and are disclosed within general and administrative expense. PSCM's lease agreements do not contain any material residual value guarantees or material restrictive financial covenants. For details on PSCM's leases with related parties, refer to Note 4. Neither the Partnership nor PSCM has any leases that have not yet commenced that create significant rights and obligations for the lessee.

When determining the lease term, the Partnership does not include renewal options unless the renewals are deemed to be reasonably certain of being exercised at the lease commencement date.

ASC 842 requires that a lessee use the rate implicit in the lease when measuring the lease liability and ROU asset, unless that rate is not readily determinable. Alternatively, the Partnership is permitted to use its incremental borrowing rate ("IBR") which is defined as the rate of interest that the Partnership would have to pay to borrow an amount equal to the lease payments on a collateralized basis, over a similar term and in a similar economic environment. Since the rate implicit in the lease is not readily determinable, the Partnership uses its incremental borrowing rate when measuring its or PSCM's leases. The IBR is calculated by considering the Partnership's synthetic credit standing and existing line of credit, the impact of collateral and the term of the lease.

F-17<br>

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#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Offering Costs
Offering costs consist of fees related to underwriting, legal advice, regulatory filings, printing and other costs for services directly related to the offering of common shares of PSUS or equity interests of PS Holdco.

All PSUS offering costs incurred subsequent to July 31, 2024, the date of postponement of PSUS's initial planned IPO, have been deferred and are recorded in other assets in anticipation of a future offering. PSUS offering costs incurred prior to July 31, 2024 were written off to general and administrative expense.

Refer to Note 5 for details on the treatment of PS Holdco's offering costs in the current period.

#### Other Income
Other income is primarily comprised of (i) payments received from TABLE Management, L.P. ("TABLE") related to their office license agreement with PSCM, (ii) office space sublease income and the reimbursement of office services from NEOX Public Benefit LLC and (iii) the reimbursement of expenses related to the corporate aircraft from Mr. Ackman. Refer to Note 4 for more details on each relationship.

#### Employee Benefit Plan
The Partnership has a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. All employees and profit-sharing partners are eligible to participate in the savings plan (the "Plan"). The Plan allows participants to invest in a variety of mutual funds across several fund families. The Partnership makes a safe harbor contribution in the amount of 3% of each participant's eligible compensation, subject to certain Internal Revenue Code limitations. The safe harbor contribution is processed on a per payroll basis for employees and annually for profit-sharing partners, regardless of whether they elect to contribute to the Plan. Safe harbor contributions are vested immediately. For the year ended December 31, 2025, expenses related to the Plan were $419,590 (2024: $383,946) and are included in employee compensation and benefits.

#### Employee Compensation and Benefits
Employee compensation and benefits reflects all compensation-related items not directly related to the profit-sharing arrangements and the long-term incentive plan discussed below, and includes salaries, benefits, payroll taxes and discretionary cash bonuses. Employee compensation and benefits also includes the cost of benefits paid to partners who participate in the profit-sharing arrangements and the long-term incentive plan. The Partnership generally recognizes employee compensation and benefit expenses over the related service period. On an annual basis, discretionary cash bonuses generally comprise a significant portion of total employee compensation and benefits for employees who do not hold profits interests. Discretionary cash bonuses are dependent upon a variety of factors, including the performance of the Pershing Square Funds for the year.

#### Profit-Sharing Arrangements
Prior to the Reorganization, PSCM had profit-sharing arrangements whereby certain personnel were granted profits participation interests ("Profits Interest Awards") in PSCM, PSGP and PSVII GP. Profits Interest Awards entitled the profit-sharing partners to a portion of the net profits earned by PSCM, PSGP, PSVII GP and any future Pershing Square entity from performance fees/allocations and management fees, as applicable.

Following the Reorganization, the Profits Interest Awards in PSGP and PSVII GP remained unchanged. The Profits Interest Awards in PSCM were contributed to PSPG, and each profit-sharing partner was admitted as a member of CompCo. Upon admission to CompCo, each profit-sharing partner holds Profits Interest Awards in two vehicles at the same percentages as the awards they previously held in PSCM (subject to ordinary course changes in such allocations): (i) PSPG, and (ii) CompCo. Refer to Note 4 "Variable Compensation Agreement" for more details.

F-18<br>

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#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
Profits Interest Awards do not represent a substantive class of equity under ASC 718, *Compensation* ("ASC 718") and are accounted for as cash-based profit-sharing arrangements. As such, amounts distributed or allocated to profit-sharing partners are included in profit-sharing partner compensation in the Consolidated Statements of Operations.

#### Long-Term Incentive Plan
Prior to the Reorganization, and similar to the Profits Interest Awards, awards under the Long-Term Incentive Plan ("LTIP" and the "LTIP Awards") entitled certain profit-sharing partners (the "LTIP Partners") to cash distributions of management fee-based and performance-based net profits pursuant to the terms of their respective agreements and granted them a reduced percentage of their Profits Interest Awards upon retirement under certain circumstances as described in the LTIP. Certain LTIP Partners' LTIP Awards vested after 10 years of tenure as a profit-sharing partner.

Following the Reorganization, the LTIP Awards related to PSGP and PSVII GP remained unchanged. The LTIP Awards related to PSCM were contributed to PSPG, and each LTIP Partner was admitted as a member of CompCo. Upon admission to CompCo, each LTIP Partner holds LTIP Awards in two vehicles at the same percentages as the awards they previously held in PSCM (subject to ordinary course changes in such allocations): (i) PSPG, and (ii) CompCo.

The LTIP Awards are treated as a separate class of profits interests from the Profits Interest Awards.

The LTIP Awards are accounted for based on their substance. Portions of the LTIP Awards where rights to distributions of profits are based fully on the discretion of Mr. Ackman, or any successor thereof, are in substance a profit-sharing arrangement and are therefore recorded within profit-sharing partner compensation. Other portions of the LTIP Awards, when fully vested, entitle LTIP Partners upon retirement to a distribution equal to the percentage outlined in each of their agreements in perpetuity (the "permanent profits-interests") and represent a substantive class of equity. The fair value of such awards is recognized on a straight-line basis over a service period of up to 10 years. The amortization of these awards is included in profit-sharing partner compensation in the Consolidated Statements of Operations.

LTIP Partners are also entitled to a portion of the consideration related to a Terminal Value Event as defined in the LTIP, including, but not limited to, a sale or transfer of all or any portion of the Partnership's equity interests, including through an initial public offering. The Partnership accounts for forfeitures of permanent profits-interests as they occur.

For the year ended December 31, 2025, the Partnership did not grant additional permanent profits-interests. For the year ended December 31, 2024, the Partnership granted additional permanent profits-interests valued at $111,282,207, all of which vested immediately upon grant.

During the year ended December 31, 2025, $1,461,901 (2024: $1,455,475) of permanent profits-interests that were granted in prior years vested, and no permanent profits-interests were forfeited. The Partnership expects to recognize compensation expense on its currently unvested permanent profits-interests of $752,958 over a weighted average period of 1 year.

F-19<br>

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#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
The following table summarizes the components of profit-sharing partner compensation expense as well as the total distributions resulting from permanent profits-interests:

---

| | | |
|:---|:---|:---|
| **Year ended December 31** | **2025** | **2024**  |
| &nbsp;&nbsp;CompCo Subordinated Performance Fee<sup>(1)</sup> | **$385350074** | $136618188  |
| Profit-sharing partner compensation | &nbsp;&nbsp;&nbsp;**72267026** | &nbsp;&nbsp;&nbsp;89776876  |
| Amortization of unvested grants of permanent profits-interests | &nbsp;&nbsp;&nbsp;&nbsp;**1461901** | &nbsp;&nbsp;&nbsp;&nbsp;1455475  |
| New grants of permanent profits-interests | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;111282207  |
| **Total profit-sharing partner compensation** | **$459079001** | $339132746  |
| **LTIP permanent profits-interest distributions** | **$37440632** | $41633980 |

---

(1) Refer to Note 4 "Variable Compensation Agreement" for more details on both CompCo and the related service contract. The profit-sharing partner compensation expense resulting from the 2025 Subordinated Performance Fee is net of UBT withholding of $14,390,666.

The measurement of the fair value of permanent profits-interests requires the Partnership to make estimates about future operating results and appropriate risk-adjusted discount rates. The methods used to estimate the fair value include the market approach and the income approach, each of which involves a significant degree of judgment. The Partnership engaged a third-party valuation specialist to assist in developing models for both methods. Under the market approach, fair value is determined by multiplying the net fee-related earnings ("FRE") of the Partnership by the relevant valuation multiple of comparable public companies. Under the income approach, fair value is determined through a discounted cash flow analysis.

The following table summarizes information about the significant assumptions used to develop the fair value of permanent profits-interests for the year ended December 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Earning Streams** | **Methodology** | **Unobservable Input** | **2025** | **October 23, 2024<sup>(1)</sup>** | **July 1, 2024<sup>(1)</sup>**  |
| Net FRE earnings | Income approach | Discount rate | N/A | **13.0%–15.0% (14.0%)** | **11.0%–13.0% (12.0%)**  |
| Net FRE earnings | Income approach | Exit multiple | N/A | **14.0x–16.0x (15.0x)** | **16.0x–18.0x (17.0x)**  |
| Performance fees | Income approach | Discount rate | N/A | **14.5%–19.5% (17.0%)** | **11.5%–16.5% (14.0%)**  |
| Performance fees | Income approach | Exit multiple | N/A | **11.5x–12.5x (12.0x)** | **14.5x–15.5x (15.0x)**  |
| Net FRE earnings | Market approach | Net FRE multiples | N/A | **16.0x–26.0x (21.0x)** | **18.0x–28.0x (23.0x)** |

---

(1)<br> Multiples disclosed as weighted averages, and inputs in parentheses are the midpoints of the disclosed ranges

#### Recent Accounting Pronouncements
In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires entities with a single reportable segment to provide all disclosures in accordance with Topic 280 and amends current guidance for reportable segment disclosure requirements. This guidance is effective for public entities for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. The Partnership adopted this standard on December 31, 2024 on a retrospective basis, and, as a result, the Partnership included Note 9 to the Consolidated Financial Statements. Adoption of ASU 2023-07 did not have an impact in the Consolidated Statements of Financial Condition, Consolidated Statements of Operations, or Consolidated Statements of Cash Flows.

In December 2023, the FASB issued ASU 2023-09 amending ASC 740, *Income Taxes*, to enhance the transparency and decision-usefulness of income tax disclosures, particularly in the rate reconciliation table and disclosures about income taxes paid. The new guidance requires all entities to disclose, on an annual basis, income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. ASU 2023-09 is effective for

F-20<br>

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#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
annual periods beginning after December 15, 2025 for private companies and after December 15, 2024 for public companies, with early adoption permitted. ASU 2023-09 should be applied prospectively, but entities may apply it retrospectively. The Partnership is currently assessing its impact.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires disaggregated disclosure of certain expenses including employee compensation, depreciation and intangible asset amortization on an annual and interim basis. The guidance is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The Partnership is currently assessing the impact of ASU 2024-03.

3. **PARTNERS' CAPITAL** 

The Partnership makes quarterly distributions of excess cash in proportion to each partner's ownership percentage. Cash distributions made at the start of the year include any performance fees earned in the prior year.

PS Holdco records all cash distributions resulting from PSPG's Profits Interest Awards and the non-permanent portion of PSPG's LTIP Awards in profit-sharing partner compensation. The portion of cash distributions resulting from the LTIP Awards that are permanent profits-interests are recorded as capital distributions. All cash distributions made to the Partnership's strategic investors are recorded as capital distributions.

In the case of performance fees which are paid and/or distributed at the start of the year following when they were earned, the Partnership accrues the portion which is classified as capital distributions in performance fee distributions payable.

4. **RELATED PARTY TRANSACTIONS** 

#### Management Fees
PSCM earns most of its management fees and all of its performance fees/allocations from the Pershing Square Funds, which are considered related parties as PSCM manages their operations and makes investment decisions on their behalf as investment manager. PSCM may elect to waive the management fee with respect to certain partners or shareholders of the Pershing Square Funds in accordance with each Pershing Square Fund's organizational documents. For the year ended December 31, 2025, PSCM earned management fees from the Core Funds of $222,898,715 (2024: $206,066,898 from the Pershing Square Funds).

Pursuant to the HHH Services Agreement, on May 5, 2025 PSCM began earning the Base Management Fee and the Variable Management Fee from HHH. For the year ended December 31, 2025, PSCM earned a Base Management Fee of $9,848,901 and a Variable Management Fee of $7,284,296. The HHH Fees are recorded in management fees. For the year ended December 31, 2025, PSCM reduced management fees for the Core Funds by $4,107,791, which was calculated as the HHH Fees multiplied by the percentage of HHH's shares outstanding held by the Core Funds that were attributable to fee-paying capital.

As of December 31, 2025, the Variable Management Fee for the three months ended December 31, 2025 remained receivable and is recorded in due from affiliates. PSCM also received in advance the $3,786,000 Base Management Fee for the three months ended March 31, 2026, which is recorded in deferred revenue as of December 31, 2025.

F-21<br>

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#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
The following table presents a summary of all sources of management fees:

---

| | | |
|:---|:---|:---|
| **Year ended December 31** | **2025** | **2024**  |
| Pershing Square Holdings, Ltd. | **$207995255** | $188818228  |
| Pershing Square, L.P. | &nbsp;&nbsp;&nbsp;**10373793** | &nbsp;&nbsp;&nbsp;11071033  |
| Pershing Square International, Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;**4529667** | &nbsp;&nbsp;&nbsp;&nbsp;6007199  |
| PS VII Master, L.P. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170438  |
| HHH Base Management Fee | &nbsp;&nbsp;&nbsp;&nbsp;**9848901** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| HHH Variable Management Fee | &nbsp;&nbsp;&nbsp;&nbsp;**7284296** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| **Total Management Fees - Gross** | **$240031912** | $206066898  |
| &nbsp;&nbsp;Less: Amortization of HHH Premium | &nbsp;&nbsp;&nbsp;&nbsp;**(9611543)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| **Total Management Fees - Net** | **$230420369** | $206066898 |

---

#### Performance Fees
*Pershing Square International, Ltd.* 

PSCM receives a performance fee in connection with its services as investment manager to PSINTL (such performance fee, the "PSINTL Performance Fee"). The PSINTL Performance Fee is recognized as revenue by PSCM at the end of each fiscal year and on a quarterly basis from redeeming investors in PSINTL during the year. The PSINTL Performance Fee is an amount equal to 20% of the increase, if any, in the net asset value (before performance fees) of each series and class of shares in PSINTL (except Class F and Class G as described below) above the net asset value for the fiscal year for which a performance fee was most recently payable.

The board of directors of PSINTL may issue shares subject to a lower or no management fee and/or performance fee for members, partners, officers, managers, employees or affiliates of PSCM or other shareholders in the board of directors' sole discretion. Class F shareholders are affiliates of PSCM or charitable entities directed, supported, or controlled by employees or affiliates of PSCM and are not charged a management fee or performance fee. Class G shares are subject to a PSINTL Performance Fee of 30% above an annual 5% hard hurdle (non-cumulative).

For the year ended December 31, 2025, the PSINTL Performance Fee totaled $13,146,491 (2024: $8,299,501). As of December 31, 2025, $10,708,077 (2024: $7,314,090) was receivable from PSINTL.

*Pershing Square Holdings, Ltd.* 

On February 7, 2024, PSCM and the board of PSH announced an amendment to the performance fee provisions in PSCM's investment management agreement with PSH. Prior to the amendment, PSCM received a "Variable Performance Fee" from PSH in an amount equal to 16% of the NAV appreciation (before giving effect to accrued performance fees) attributable to the fee-paying shares of PSH above a high-water mark minus a fee reduction of 20% of the performance fees earned by PSCM from non-PSH funds. However, PSH would not benefit from the potential fee reduction until PSCM had first recovered $120 million of costs it incurred in connection with PSH's IPO in 2014. The amendment eliminated PSCM's right to receive the outstanding unrecovered IPO costs (which had been reduced to $36 million as of the time of the amendment), and expanded the fee reduction to also include 20% of management fees earned from any non-PSH Pershing Square funds that invest in public securities and do not charge performance fees. As of December 31, 2025 and December 31, 2024, there was no non-PSH fund that generated management fees and did not charge a performance fee.

The Variable Performance Fee, if earned, is payable upon the occurrence of crystallization events, which include, but are not limited to, December 31 of each year and PSH's payment of a dividend. Variable Performance Fees resulting from dividends are pro-rated to reflect the ratio of the dividend to PSH's net asset value at the time the dividend is paid. Payment of the Variable Performance Fee is subject to a hold-back where 1% is held until completion of PSH's financial statement audit.

F-22<br>

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#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
For the year ended December 31, 2025, the Variable Performance Fee totaled $489,198,531 (2024: $226,588,185). As of December 31, 2025, $486,622,392 (2024: $225,356,173) of the Variable Performance Fee remained receivable from PSH.

*Variable Compensation Agreement* 

Per the VCA, PS Holdco is entitled to receive from PSCM the following performance fee amounts: (i) with respect to PSH, an amount equal to the 16% performance fee that would have been earned if PSH had experienced a net of management fee return of 5% per year above its high-water mark; and (ii) with respect to other funds subject to the VCA (currently only PSINTL), an amount equal to the applicable performance fee (20% for PSINTL) that would have been earned if such fund experienced a net of management fee return of 5% per year above its high-water mark less the portion of such performance fee that would offset performance fees payable by PSH ((i) and (ii) collectively the "Preferred Performance Fee").

Further, per the VCA, CompCo is entitled to receive from PSCM the following amounts, in each case solely to the extent such amount exceeds the applicable Preferred Performance Fee and net of any applicable taxes: (i) with respect to PSH, all performance fees received from PSH, inclusive of the portion of management fees and performance fees (currently only PSINTL) received from other funds that would offset performance fees payable by PSH, and (ii) with respect to other funds subject to the VCA (currently only PSINTL), all performance fees received from such fund, exclusive of the portion of such performance fees that would offset performance fees payable by PSH ((i) and (ii) collectively the "Subordinated Performance Fee").

For the year ended December 31, 2025, the Preferred Performance Fee and Subordinated Performance Fee totaled $102,604,282 (2024: $98,269,498) and $399,740,740 (2024: $136,618,188), respectively.

As CompCo is a vehicle used to compensate employees, the Partnership considers its relationship with CompCo to be a service contract and therefore records the Subordinated Performance Fee in profit-sharing partner compensation. The Preferred Performance Fee is recorded in both profit-sharing partner compensation and capital distributions in accordance with the methodology discussed in Note 3.

#### Performance Allocations
*Pershing Square, L.P.* 

PSGP receives a performance allocation in connection with its services as the general partner to PSLP. At the end of each fiscal year or upon investor withdrawals, for each PSLP limited partner's capital account that has been allocated net income, a performance allocation shall be made to the capital account of PSGP (the "PSLP Performance Allocation"). Tranche A limited partnership interests are subject to a PSLP Performance Allocation of 20% and Tranche G limited partnership interests are subject to a PSLP Performance Allocation of 30% above an annual 5% hard hurdle (non-cumulative), in each case reduced by the balance of such limited partner's loss carry forward account (if any).

For the year ended December 31, 2025, the PSLP Performance Allocation totaled $29,742,303 (2024: $14,543,002). The Partnership has no direct equity interest in PSGP, and as a result, all income from PSGP is reflected in net income attributable to non-controlling interest. PSGP may, in its sole discretion, elect to waive the PSLP Performance Allocation with respect to any limited partner of PSLP.

*PSVII Master, L.P.* 

Prior to December 31, 2024, PSVII GP was eligible to receive a performance allocation in connection with its services as the general partner to PSVII Master; however, no performance allocation ever crystallized.

Following PSVII GP's decision to cease the operations of PSVII Master as of December 31, 2024, the Partnership no longer receives management fees from PSVII Master or a performance allocation in PSVII GP.

F-23<br>

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#### &nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Howard Hughes Holdings Inc.
As part of the HHH Share Purchase Agreement, HHH agreed to reimburse the Partnership for up to $25 million of reasonable and documented expenses incurred by the Partnership in connection with the negotiation and execution of the transaction. The Partnership incurred $22,501,828 of such expenses, all of which were reimbursed by HHH. These expenses and associated reimbursements were treated as transaction costs with no net impact to the cost to obtain the HHH shares.

#### Pershing Square USA, Ltd.
As of December 31, 2025, the Partnership has purchased 318,320 (2024: 276,320) common shares of PSUS at a price of $50.00 per share for a total investment of $15,916,000 (2024: $13,816,000). The purchases were made to provide PSUS with capital for organizational costs.

#### Affiliates Fee Rebate
Prior to the Reorganization, management fees and performance fees paid by PSH public shares held by PSCM's partners, employees and certain of their affiliated entities were rebated (the "Affiliate Rebate") by PSCM to such shareholders on a quarterly basis for management fees and on an annual basis for crystallized performance fees. The Affiliate Rebate was accounted for as an expense in PSCM's financial statements.

Following the Reorganization, the Affiliate Rebate is an allocation of part of PSPG's distribution from PS Holdco to the affiliated PSH shareholders. The Affiliate Rebate is recognized by PS Holdco as an expense paid by PSPG on PS Holdco's behalf. For the year ended December 31, 2025, the Affiliate Rebate totaled $77,579,860 (2024: $69,300,950). As of December 31, 2025, $24,143,741 (2024: $21,661,699) of the Affiliate Rebate remained payable.

#### Corporate Aircraft
Prior to December 20, 2024, the Partnership owned a corporate aircraft which was used by senior management for business related travel. From time to time, Mr. Ackman made personal use of the aircraft. In such cases, the Partnership was reimbursed by Mr. Ackman for the aircraft's operating expenses. For the year ended December 31, 2024, Mr. Ackman reimbursed the Partnership for aircraft expenses of $701,578.

On December 20, 2024, the Partnership distributed both the corporate aircraft and the Aircraft Note (defined in Note 6) to PSPG and ultimately Mr. Ackman via a non-pro rata distribution (the "Aircraft Distribution").

#### Office Space Sublease
PSCM subleases a portion of PSCM's office space to NEOX Public Benefit LLC ("Subtenant"), an entity affiliated with Mr. Ackman. The sublease commenced on December 5, 2022 and expires on December 31, 2033. Rent payments under the sublease commenced on May 1, 2023 following five months of rent abatement. PSCM provided an improvement allowance of $4,380,125, which was applied solely against the aggregate cost and expense of the performance of the Subtenant's initial improvements in the subleased premise. In addition, the landlord has agreed to pay PSCM an amount of $1,660,000 for the reimbursement of certain costs incurred by Subtenant, which PSCM is expected to pay directly to the Subtenant within 30 days following receipt of such reimbursement.

For the year ended December 31, 2025, the Subtenant paid (i) $2,919,044 (2024: $2,499,409) of rent, and (ii) $597,485 (2024: $648,317) for office-related services. Both amounts are included in other income in the Consolidated Statements of Operations.

F-24<br>

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#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Office Space License
PSCM licenses a portion of its office space to Mr. Ackman's family office, TABLE, under a license agreement. The agreement grants TABLE the use of a designated portion of PSCM's office space and certain office-related services, including information technology and general administrative services. For the year ended December 31, 2025, TABLE paid (i) $1,179,477 (2024: $1,129,046) for office space, and (ii) $536,319 (2024: $688,590) for office-related services under the license agreement. Both amounts are included in other income.

#### Ownership in Landlord Entity
Georgetown Eleventh Avenue Owners, LLC (the "Landlord"), owns the building in which PSCM rents office space. Mr. Ackman and certain of Mr. Ackman's affiliates are indirectly invested in the Landlord.

5. **GENERAL AND ADMINISTRATIVE EXPENSE** 

The following table presents the components of general and administrative expense:

---

| | | |
|:---|:---|:---|
| **Year ended December 31** | **2025** | **2024**  |
| &nbsp;&nbsp;Professional fees | **$25482550** | $30111052  |
| Occupancy | &nbsp;&nbsp;&nbsp;**5832817** | &nbsp;&nbsp;&nbsp;5645516  |
| Travel and entertainment | &nbsp;&nbsp;&nbsp;**3315145** | &nbsp;&nbsp;&nbsp;1545665  |
| Information technology | &nbsp;&nbsp;&nbsp;**2582864** | &nbsp;&nbsp;&nbsp;2639763  |
| &nbsp;&nbsp;Office costs | &nbsp;&nbsp;&nbsp;**2419092** | &nbsp;&nbsp;&nbsp;2366238  |
| Other expenses | &nbsp;&nbsp;&nbsp;**1394480** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;856316  |
| &nbsp;&nbsp;Insurance | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**629267** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;578048  |
| Media | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**256549** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Dues & memberships | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**161290** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;200407  |
| Aircraft | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;6373906  |
| &nbsp;&nbsp;Charitable donations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;495000  |
| **Total General and Administrative Expense** | **$42074054** | $50811911 |

---

For the year ended December 31, 2025, professional fees includes $11,158,078 (2024: $7,577,643) of expensed offering costs related to PS Holdco's potential future initial public offering, which is planned to be executed in conjunction with the IPO of PSUS. The Partnership does not anticipate it will be the direct recipient of the funds raised in the offering, so all related offering costs are being expensed as they are incurred.

6. **DEBT OBLIGATIONS** 

#### Lines of Credit
PSCM obtained a line of credit from JPMorgan Chase Bank, N.A. (the "Lender") in October 2014 (the "2014 Line of Credit"). The terms of the 2014 Line of Credit, including maturity date, maximum principal amount and interest rate, have been amended from time to time. As of December 31, 2025, the 2014 Line of Credit had a maturity date of January 31, 2027 and a maximum principal amount of $45,000,000. The 2014 Line of Credit is unsecured and personally guaranteed by Mr. Ackman (the "Guarantor").

During the year ended December 31, 2025, PSCM did not borrow or repay any principal on the 2014 Line of Credit (2024: borrowed $16,384,813 and repaid $2,750,709). As of December 31, 2025 and 2024, $34,800,000 of principal was outstanding and $10,200,000 was left undrawn. The principal amount outstanding on the 2014 Line of Credit is included in loans payable. The outstanding borrowings of the 2014 Line of Credit bear an annual interest rate of the SOFR screen rate +2.20%.

The 2014 Line of Credit includes provisions that restrict or limit, among other things, the ability of PSCM to incur additional indebtedness or to create additional liens or other encumbrances on PSCM or the Guarantor's assets, aside from additional financing from the Lender, financing related to its aircraft as discussed under

F-25<br>

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#### **TABLE OF CONTENTS**

#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
"Aircraft Loan," and certain other permitted indebtedness. The 2014 Line of Credit requires the Guarantor to maintain a net worth of at least $1 billion, exclusive of any interest in PSCM. The Guarantor is also required to maintain at least $250 million of aggregate liquidity that is free and clear of any and all encumbrances, consisting of liquid assets at the bank, and/or beneficial ownership in PSCM or equity in third-party hedge funds with quarterly liquidity or better. PSCM and the Guarantor have complied with the financial covenants imposed by the 2014 Line of Credit agreement throughout the borrowing period.

PSCM obtained an additional line of credit from the Lender in December 2021 (the "2021 Line of Credit"). The terms of the 2021 Line of Credit, including maturity date, maximum principal amount and interest rate, have been amended from time to time. As of December 31, 2025, the 2021 Line of Credit had a maturity date of January 31, 2027 and a maximum principal amount of $80,000,000. The 2021 Line of Credit is permitted indebtedness under the 2014 Line of Credit.

The 2021 Line of Credit is secured by a pledge and security agreement whereby PSCM granted the Lender a security interest in PSCM's management fees. The 2021 Line of Credit has the same Guarantor and covenants as the 2014 Line of Credit.

During the year ended December 31, 2025, PSCM did not borrow or repay any principal on the 2021 Line of Credit (2024: repaid $76,700,000). As of December 31, 2025 and 2024, there was no principal balance outstanding on the 2021 Line of Credit, and $80,000,000 was left undrawn. The outstanding borrowings of the 2021 Line of Credit bear an annual interest rate of the SOFR screen rate + 2.35%.

#### Aircraft Loan
Prior to the Aircraft Distribution described in Note 4, the Partnership, through a wholly owned subsidiary, had entered into a promissory note (the "Aircraft Note") with the Lender to assist in the financing of the aircraft. Mr. Ackman served as guarantor of the Aircraft Note. The terms of the Aircraft Note, including maturity date and interest rate, were amended from time to time. Pursuant to the final amendment, installment payments of $321,206 were paid quarterly over a 60-month period, with a final payment of approximately $9.8 million that would have been due on April 30, 2025.

The outstanding borrowings of the Aircraft Note bore an annual interest rate of 1.91%. Following the Aircraft Distribution, and as of December 31, 2025 and December 31, 2024, the Partnership held no liability related to the Aircraft Note.

The Aircraft Note included provisions that restricted or limited, among other things, the ability of PSCM to incur additional indebtedness or to create additional liens or other encumbrances on the guarantor's assets, aside from financing related to the 2014 Line of Credit and the 2021 Line of Credit, additional financing from the Lender and certain other permitted indebtedness. The Aircraft Note required the guarantor to maintain a net worth of at least $1 billion, exclusive of any interest in PSCM. The guarantor was also required to maintain unencumbered liquid assets in an aggregate amount not less than 50% of all amounts outstanding under the Aircraft Note. PSCM and the guarantor complied with the financial covenants imposed by the Aircraft Note throughout the borrowing period.

F-26<br>

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#### **TABLE OF CONTENTS**

#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
The following table summarizes the Partnership and its subsidiaries' outstanding debt as of December 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
| **Maturities of Debt** | **2014 Line of** <br>**Credit** | **2021 Line of** <br>**Credit** | **Total**  |
| 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$—  |
| 2027 | &nbsp;&nbsp;34800000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;34800000  |
| 2028 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| 2029 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| 2030 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;**Total Debt Obligations** | **$34800000** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$—** | **$34800000** |

---

The following table summarizes the interest expense and average interest rate of the Partnership and its subsidiaries' outstanding debt:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31,**  | **Year ended December 31,**  | **Year ended December 31,**  | **Year ended December 31,**  |
|  | **2025** | **2025** | **2024**  | **2024**  |
|  | **Interest** <br>**Expense** | **Average** <br>**Rate** | **Interest** <br>**Expense** | **Average** <br>**Rate**  |
| **2014 Line of Credit** | **$2282439** | &nbsp;&nbsp;**6.47%** | $2438769 | &nbsp;&nbsp;7.30%  |
| **2021 Line of Credit** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;466826 | &nbsp;&nbsp;7.46%  |
| **Aircraft Note** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;190001 | 1.90%  |
| **Total Debt Interest** | **$2282439** |  | $3095596 |  |

---

7. **COMMITMENTS AND CONTINGENCIES** 

#### Litigation
From time to time, the Partnership may be involved in litigation and claims incidental to the conduct of the Partnership's business, including without limitation, the investment activities of the Pershing Square Funds. PSCM is subject to regulation, oversight and examination by regulatory agencies in the U.S. and globally that have, or may in the future have, regulatory authority over the Partnership and its business activities. This regulatory environment may result in agency examinations, investigations, litigation and subpoenas, and material costs related to each. As of December 31, 2025 and 2024, there were no known regulatory investigations, claims or litigation against the Partnership.

#### Other Contingencies, Risks and Uncertainties
From time to time, in the normal course of business, the Partnership may enter into contracts that contain a variety of indemnification provisions. The Partnership's maximum exposure under these arrangements is unknown, as any such exposure involves possible future claims that may be, but have not yet been made against the Partnership, based on events which have not yet occurred. However, the Partnership has not had prior material claims or losses pursuant to these contracts and believes the risk of material loss to be remote and therefore, no liability has been recorded. Other than as disclosed above and in Note 6, there were no other commitments or contingencies as of December 31, 2025 and 2024.

F-27<br>

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#### **TABLE OF CONTENTS**

#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
8. **LEASES** 

#### Partnership as a lessee
PSCM has several operating lease agreements for its office, other real estate and certain equipment. PSCM's office lease represents a significant majority of the total lease commitment; it is noncancelable and expires on January 31, 2034. PSCM has the option to extend the office lease term for an additional 15 years at the end of the initial term. Because PSCM is not reasonably certain to exercise the renewal option, the option is not considered in determining the lease term, and associated potential option payments are excluded from lease payments.

Between 2021 and 2022, PSCM provided various landlord incentives which were capitalized as deferred sublease incentive and continue to be amortized over the life of the lease. As of December 31, 2025, the unamortized portion of the deferred sublease incentive was $4,129,121 (2024: $4,639,939).

The following table presents the components of PSCM's right-of-use assets and liabilities related to leases:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **December 31,** <br>**2025** | **December 31,** <br>**2024**  |
| **Component of Lease Balances** | **Statements of Financial Condition Line Item**<br>|  |  |
| Operating lease assets | Lease right-of-use assets | **$28440786** | $30589920  |
| Operating lease liabilities | Operating lease liabilities | &nbsp;&nbsp;**42672771** | &nbsp;&nbsp;46329394 |

---

The following table presents the components of PSCM's lease cost and the classification of such costs:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Year ended December 31,**  | **Year ended December 31,**  |
|  |  | **2025** | **2024**  |
| **Component of Lease Cost** | **Statements of Operations Line Item**<br>|  |  |
| Operating lease cost | General and administrative expense | **$4919227** | $5568248  |
| Variable lease cost | General and administrative expense | &nbsp;&nbsp;&nbsp;&nbsp;**475201** | &nbsp;&nbsp;&nbsp;&nbsp;569484  |
| Sublease income | Other income | &nbsp;&nbsp;**(5232325)** | &nbsp;&nbsp;(4965362)  |
| **Total lease expense** | **Total lease expense** | **$162103** | $1172370 |

---

The following table includes the future maturities of operating lease payments for subsequent periods:

---

| | |
|:---|:---|
| **For the Years Ended December 31,**  | **Operating Lease**  |
| 2026 | &nbsp;&nbsp;&nbsp;$6428598  |
| 2027 | &nbsp;&nbsp;&nbsp;&nbsp;6418749  |
| 2028 | &nbsp;&nbsp;&nbsp;&nbsp;6387350  |
| 2029 | &nbsp;&nbsp;&nbsp;&nbsp;6756768  |
| 2030 | &nbsp;&nbsp;&nbsp;&nbsp;6792245  |
| Thereafter | &nbsp;&nbsp;&nbsp;20942755  |
| &nbsp;&nbsp;&nbsp;**Total future minimum lease payments** | **$53726465**  |
| Less: liability accretion | &nbsp;&nbsp;(11053694)  |
| &nbsp;&nbsp;&nbsp;**Total lease liabilities** | **$42672771** |

---

The following table includes additional information related to PSCM's operating leases:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,**  | **Year ended December 31,**  |
|  | **2025** | **2024**  |
| Cash paid for amounts included in the measurement of operating lease liabilities | **$6426717** | $7059918  |
| Right-of-use asset balance changes due to new / remeasured operating lease liabilities | **153685** | —  |
| Weighted-average remaining lease term – Operating leases | 8.1 years | 9.1 years  |
| Weighted-average discount rate – Operating leases | **5.93%** | 5.93% |

---

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#### **TABLE OF CONTENTS**

#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Partnership as a lessor
The following table includes future sublease income payments expected to be received under the sublease:

---

| | |
|:---|:---|
| **For the Years Ended December 31,**  | **Operating Lease**  |
| 2026 | &nbsp;&nbsp;$2978485  |
| 2027 | &nbsp;&nbsp;&nbsp;2978485  |
| 2028 | &nbsp;&nbsp;&nbsp;3142010  |
| 2029 | &nbsp;&nbsp;&nbsp;3223772  |
| 2030 | &nbsp;&nbsp;&nbsp;3223772  |
| Thereafter | &nbsp;&nbsp;&nbsp;9834841  |
| **Total sublease income receivable** | **$25381365** |

---

9. **SEGMENT INFORMATION** 

The Partnership, together with its subsidiaries, conducts its business and generates substantially all of its revenues in the United States through one operating and reportable segment. The Partnership's single reportable segment reflects the allocation of the entity's resources, operational decision-making and assessment of financial performance by the Partnership's chief operating decision makers (the "CODM") using a consolidated, 'one-firm approach,' with a single expense pool.

The Partnership's CODM is the operational leadership group, which includes the chief executive officer, president, chief financial officer and chief legal and compliance officer. The CODM reviews the Partnership's assets using the same categorization as presented in the Consolidated Statements of Financial Condition. The CODM utilizes net income (loss) as presented in the Consolidated Statements of Operations as the primary financial measure for assessing the performance of the Partnership, monitoring budget versus actual results and determining discretionary compensation. The CODM also reviews the Partnership's significant expenses at a level consistent with that which is presented in the Consolidated Statements of Operations.

10. **CREDIT RISK** 

The Partnership may invest its cash in U.S. Treasury money market funds. As of December 31, 2025 and 2024, the Partnership's cash balances not invested in money market funds were held in Federal Deposit Insurance Corporation insured bank accounts, which at times, may be in excess of federally insured limits.

11. **SUBSEQUENT EVENTS** 

The Partnership has evaluated the need for disclosures and/or adjustments resulting from subsequent events. This evaluation did not result in any additional subsequent events that necessitated disclosure and/or adjustment other than as disclosed below.

#### Performance Fees
All performance fees reported as receivable as of December 31, 2025 were received by PSCM as of February 25, 2026.

#### Litigation
On February 9, 2026, certain alleged stockholders of HHH filed a lawsuit in the Delaware Court of Chancery against PSCM, PS Holdco and Mr. Ackman (the "Pershing defendants") and Mr. Hakim and certain other directors of HHH (the "HHH director defendants"). The lawsuit alleges claims on behalf of a putative class of HHH stockholders and derivatively on behalf of HHH and contends that the HHH Share Purchase Agreement and related transactions amounted to a transfer of control of HHH to the Pershing defendants at an unfair price; that the HHH director defendants breached their fiduciary duties by approving the transaction; and that the Pershing defendants aided and abetted those alleged breaches of fiduciary duty. The plaintiffs also seek a

F-29<br>

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#### <br>

#### &nbsp;&nbsp;&nbsp;&nbsp; <br>
declaratory judgment that the HHH Services Agreement is invalid and unenforceable under the Delaware General Corporation Law. The complaint seeks, among other things, injunctive relief preventing enforcement of the HHH Services Agreement; certain other equitable relief; unspecified damages; and an award of costs and disbursements, including attorneys' fees. The Partnership cannot reasonably estimate the amount or range of any potential loss, if any, related to these claims. Accordingly, no accrual has been recorded as of December 31, 2025.

F-30<br>

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#### Management's Report on Internal Control over Financial Reporting
Management of Howard Hughes Holdings Inc. (the Company) is responsible for establishing and maintaining a system of internal control over financial reporting designed to provide reasonable assurance that transactions are executed in accordance with management authorization and that such transactions are properly recorded and reported in the financial statements, and that records are maintained so as to permit preparation of the financial statements in accordance with U.S. generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Management has assessed the effectiveness of the Company's internal control over financial reporting utilizing the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated Framework (2013 Framework). Management concluded, based on its assessment, that the Company's internal control over financial reporting was effective as of December 31, 2025.

KPMG LLP, an independent registered public accounting firm, has audited the Company's internal control over financial reporting as of December 31, 2025, as stated in their report which is included in this Annual Report on Form 10-K (Annual Report).

F-31<br>

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#### **TABLE OF CONTENTS**

#### Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of <br>

Howard Hughes Holdings Inc.:

#### Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting
We have audited the accompanying consolidated balance sheets of Howard Hughes Holdings Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes and financial statement schedule III (collectively, the consolidated financial statements). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control – Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025 based on criteria established in *Internal Control – Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission.

#### Basis for Opinions
The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's consolidated financial statements and an opinion on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

#### Definition and Limitations of Internal Control Over Financial Reporting
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made

F-32<br>

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#### **TABLE OF CONTENTS**
only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

#### Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

#### Master Planned Communities (MPC) cost of sales estimates
As discussed in Note 1 to the consolidated financial statements, when developed residential or commercial land is sold, the cost of sales includes actual costs incurred and estimates of future development costs, based on relative sales value, that benefit the property sold. For purposes of allocating development costs, estimates of future revenues and future development costs are re-evaluated throughout the year, with adjustments being allocated prospectively to the remaining parcels available for sale. MPC cost of sales estimates are highly judgmental as they are sensitive to cost escalation and sales price escalation, which are subject to judgment and affected by expectations about future market or economic conditions. The Company recognized MPC cost of sales of $188.7 million for the year ended December 31, 2025.

We identified the evaluation of estimated future development costs and revenues that drive the MPC cost of sales estimates as a critical audit matter. Subjective auditor judgment was required to evaluate the cost escalation and sales price escalation assumptions.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the process to estimate MPC cost of sales. This included controls related to management's monitoring and review of the assumptions noted above. We tested the assumptions related to cost escalation and sales price escalation by:

&nbsp;&nbsp;&nbsp;&nbsp;• agreeing the current year estimates for revenues and costs to actual results, where applicable

&nbsp;&nbsp;&nbsp;&nbsp;• comparing the Company's historical cost escalation and sales price escalation estimates to actual results to assess the Company's ability to accurately estimate these amounts

&nbsp;&nbsp;&nbsp;&nbsp;• performing site visits for certain MPC developments, as needed and historically when warranted, to compare the overall status of the developments to what is reflected within the MPC cost of sales estimates

&nbsp;&nbsp;&nbsp;&nbsp;• comparing expected price per acre for each property type available for sale to applicable market data

&nbsp;&nbsp;&nbsp;&nbsp;• comparing the cost and sales price escalation rates throughout the duration of the development to available market data.

/s/ KPMG LLP <br>

We have served as the Company's auditor since 2022.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>

Dallas, Texas <br>

February 19, 2026

F-33<br>

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#### **TABLE OF CONTENTS**

#### HOWARD HUGHES HOLDINGS INC. <br>

#### CONSOLIDATED BALANCE SHEETS

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| <br>*thousands except par values and share amounts* | **2025** | **2024**  |
| **ASSETS**<br>|  |  |
| &nbsp;&nbsp;&nbsp;Master Planned Communities assets | &nbsp;&nbsp;**$2635077**  | $2511662  |
| &nbsp;&nbsp;&nbsp;Buildings and equipment | &nbsp;&nbsp;&nbsp;**4028862**  | &nbsp;&nbsp;3841872  |
| &nbsp;&nbsp;&nbsp;Less: accumulated depreciation | &nbsp;&nbsp;**(1082124)**  | &nbsp;&nbsp;&nbsp;(949533)  |
| &nbsp;&nbsp;&nbsp;Land | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**307625**  | &nbsp;&nbsp;&nbsp;&nbsp;302446  |
| &nbsp;&nbsp;&nbsp;Developments | &nbsp;&nbsp;&nbsp;**1477615**  | &nbsp;&nbsp;1341029  |
| Net investment in real estate | &nbsp;&nbsp;&nbsp;**7367055**  | &nbsp;&nbsp;7047476  |
| &nbsp;&nbsp;Investments in unconsolidated ventures | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**170122**  | &nbsp;&nbsp;&nbsp;&nbsp;169566  |
| Cash and cash equivalents | &nbsp;&nbsp;&nbsp;**1468507**  | &nbsp;&nbsp;&nbsp;&nbsp;596083  |
| Restricted cash | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**628651**  | &nbsp;&nbsp;&nbsp;&nbsp;402420  |
| Accounts receivable, net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**134122**  | &nbsp;&nbsp;&nbsp;&nbsp;105185  |
| Municipal Utility District (MUD) receivables, net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**459729**  | &nbsp;&nbsp;&nbsp;&nbsp;463799  |
| Deferred expenses, net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**160966**  | &nbsp;&nbsp;&nbsp;&nbsp;139350  |
| Operating lease right-of-use assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5231**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5806  |
| Other assets, net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**245078**  | &nbsp;&nbsp;&nbsp;&nbsp;281551  |
| &nbsp;&nbsp;&nbsp;**Total assets** | **$10639461**  | $9211236  |
| **LIABILITIES**<br>|  |  |
| Mortgages, notes, and loans payable, net | &nbsp;&nbsp;**$5109828**  | $5127469  |
| Operating lease obligations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4868**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5456  |
| Deferred tax liabilities, net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**164472**  | &nbsp;&nbsp;&nbsp;&nbsp;142100  |
| Accounts payable and other liabilities | &nbsp;&nbsp;&nbsp;**1518047**  | &nbsp;&nbsp;1094437  |
| &nbsp;&nbsp;&nbsp;**Total liabilities** | &nbsp;&nbsp;&nbsp;**6797215**  | &nbsp;&nbsp;6369462  |
| Commitments and Contingencies (see Note 12)<br>|  |  |
| **EQUITY**<br>|  |  |
| Preferred stock: $0.01 par value; 50,000,000 shares authorized, none issued | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Common stock: $0.01 par value; 150,000,000 shares authorized, 65,910,640 issued, and 59,370,353 outstanding as of December 31, 2025, and 56,610,009 shares issued, and 50,116,150 outstanding as of December 31, 2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**659**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;566  |
| Additional paid-in capital | &nbsp;&nbsp;&nbsp;**4458838**  | &nbsp;&nbsp;3576274  |
| Retained earnings (accumulated deficit) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(62096)**  | &nbsp;&nbsp;&nbsp;(185993)  |
| Accumulated other comprehensive income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1827)**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1968  |
| Treasury stock, at cost, 6,540,287 shares as of December 31, 2025, and 6,493,859 shares as of December 31, 2024 | &nbsp;&nbsp;&nbsp;&nbsp;**(620118)**  | &nbsp;&nbsp;&nbsp;(616589)  |
| &nbsp;&nbsp;&nbsp;Total stockholders' equity | &nbsp;&nbsp;&nbsp;**3775456**  | &nbsp;&nbsp;2776226  |
| Noncontrolling interests | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**66790**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65548  |
| &nbsp;&nbsp;&nbsp;Total equity | &nbsp;&nbsp;&nbsp;**3842246**  | &nbsp;&nbsp;2841774  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | **$10639461**  | $9211236 |

---

See Notes to Consolidated Financial Statements.<br>

F-34<br>

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#### **TABLE OF CONTENTS**

#### HOWARD HUGHES HOLDINGS INC. <br>

#### CONSOLIDATED STATEMENTS OF OPERATIONS

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
| <br>*thousands except per share amounts* | **2025** | **2024** | **2023**  |
| **REVENUES**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Condominium rights and unit sales | &nbsp;&nbsp;**$370156**  | &nbsp;&nbsp;$778616  | &nbsp;&nbsp;&nbsp;$47707  |
| &nbsp;&nbsp;&nbsp;Master Planned Communities land sales | &nbsp;&nbsp;&nbsp;&nbsp;**562586**  | &nbsp;&nbsp;&nbsp;&nbsp;453195  | &nbsp;&nbsp;&nbsp;370185  |
| &nbsp;&nbsp;&nbsp;Rental revenue | &nbsp;&nbsp;&nbsp;&nbsp;**441446**  | &nbsp;&nbsp;&nbsp;&nbsp;422100  | &nbsp;&nbsp;&nbsp;383617  |
| &nbsp;&nbsp;&nbsp;Other land, rental, and property revenues | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**48363**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44755  | &nbsp;&nbsp;&nbsp;&nbsp;46255  |
| &nbsp;&nbsp;&nbsp;Builder price participation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**52341**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52023  | &nbsp;&nbsp;&nbsp;&nbsp;60989  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | &nbsp;&nbsp;**1474892**  | &nbsp;&nbsp;1750689  | &nbsp;&nbsp;&nbsp;908753  |
| **EXPENSES**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Condominium rights and unit cost of sales | &nbsp;&nbsp;&nbsp;&nbsp;**369408**  | &nbsp;&nbsp;&nbsp;&nbsp;582574  | &nbsp;&nbsp;&nbsp;&nbsp;55417  |
| &nbsp;&nbsp;&nbsp;Master Planned Communities cost of sales | &nbsp;&nbsp;&nbsp;&nbsp;**188704**  | &nbsp;&nbsp;&nbsp;&nbsp;169191  | &nbsp;&nbsp;&nbsp;140050  |
| &nbsp;&nbsp;&nbsp;Operating costs | &nbsp;&nbsp;&nbsp;&nbsp;**213449**  | &nbsp;&nbsp;&nbsp;&nbsp;208578  | &nbsp;&nbsp;&nbsp;205453  |
| &nbsp;&nbsp;&nbsp;Rental property real estate taxes | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**60768**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58395  | &nbsp;&nbsp;&nbsp;&nbsp;55649  |
| &nbsp;&nbsp;&nbsp;Provision for (recovery of) doubtful accounts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**232**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;504  | &nbsp;&nbsp;&nbsp;&nbsp;(2762)  |
| &nbsp;&nbsp;&nbsp;General and administrative | &nbsp;&nbsp;&nbsp;&nbsp;**122240**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;91752  | &nbsp;&nbsp;&nbsp;&nbsp;86671  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | &nbsp;&nbsp;&nbsp;&nbsp;**183232**  | &nbsp;&nbsp;&nbsp;&nbsp;179799  | &nbsp;&nbsp;&nbsp;168734  |
| &nbsp;&nbsp;&nbsp;Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19146**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15002  | &nbsp;&nbsp;&nbsp;&nbsp;13302  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | &nbsp;&nbsp;**1157179**  | &nbsp;&nbsp;1305795  | &nbsp;&nbsp;&nbsp;722514  |
| **OTHER**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Gain (loss) on sale or disposal of real estate and other assets, net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29825**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22907  | &nbsp;&nbsp;&nbsp;&nbsp;24162  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income (loss), net | &nbsp;&nbsp;&nbsp;&nbsp;**(16023)**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;92120  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5823  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13802**  | &nbsp;&nbsp;&nbsp;&nbsp;115027  | &nbsp;&nbsp;&nbsp;&nbsp;29985  |
| Operating income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;**331515**  | &nbsp;&nbsp;&nbsp;&nbsp;559921  | &nbsp;&nbsp;&nbsp;216224  |
| &nbsp;&nbsp;Interest income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**46998**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25349  | &nbsp;&nbsp;&nbsp;&nbsp;25500  |
| Interest expense | &nbsp;&nbsp;&nbsp;**(169931)**  | &nbsp;&nbsp;&nbsp;(164926)  | &nbsp;&nbsp;(157575)  |
| Gain (loss) on extinguishment of debt | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(698)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(465)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(97)  |
| Gain (loss) on sale of MUD receivables | &nbsp;&nbsp;&nbsp;&nbsp;**(48197)**  | &nbsp;&nbsp;&nbsp;&nbsp;(48651)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;Equity in earnings (losses) from unconsolidated ventures | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1772**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5829)  | &nbsp;&nbsp;&nbsp;&nbsp;25776  |
| Income (loss) from continuing operations before income taxes | &nbsp;&nbsp;&nbsp;&nbsp;**161459**  | &nbsp;&nbsp;&nbsp;&nbsp;365399  | &nbsp;&nbsp;&nbsp;109828  |
| Income tax expense (benefit) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**37616**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80184  | &nbsp;&nbsp;&nbsp;&nbsp;26418  |
| Net income (loss) from continuing operations | &nbsp;&nbsp;&nbsp;&nbsp;**123843**  | &nbsp;&nbsp;&nbsp;&nbsp;285215  | &nbsp;&nbsp;&nbsp;&nbsp;83410  |
| Net income (loss) from discontinued operations, net of tax | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;&nbsp;(88223)  | &nbsp;&nbsp;(634940)  |
| &nbsp;&nbsp;Net income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;**123843**  | &nbsp;&nbsp;&nbsp;&nbsp;196992  | &nbsp;&nbsp;(551530)  |
| Net (income) loss attributable to noncontrolling interests | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**54**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;711  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(243)  |
| Net income (loss) attributable to common stockholders | **$123897**  | $197703  | $(551773) |
| Basic income (loss) per share — continuing operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$2.22**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$5.75  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1.68  |
| Basic income (loss) per share — discontinued operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$—**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$(1.78)  | &nbsp;&nbsp;&nbsp;$(12.81)  |
| Basic income (loss) per share attributable to common stockholders | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$2.22**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$3.98  | &nbsp;&nbsp;&nbsp;$(11.13)  |
| Diluted income (loss) per share — continuing operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$2.21**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$5.73  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1.68  |
| Diluted income (loss) per share — discontinued operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$—**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$(1.77)  | &nbsp;&nbsp;&nbsp;$(12.80)  |
| Diluted income (loss) per share attributable to common stockholders  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$2.21**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$3.96  | &nbsp;&nbsp;&nbsp;$(11.12) |

---

See Notes to Consolidated Financial Statements.<br>

F-35<br>

------

#### **TABLE OF CONTENTS**

#### HOWARD HUGHES HOLDINGS INC. <br>

#### CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
| <br>*thousands* | **2025** | **2024** | **2023**  |
| Net income (loss) | **$123843**  | $196992  | $(551530)  |
| Other comprehensive income (loss)<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate caps and swaps<sup>(a)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;**(3885)**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;321  | &nbsp;&nbsp;&nbsp;&nbsp;(9322)  |
| &nbsp;&nbsp;&nbsp;Pension adjustment<sup>(b)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**90**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;375  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;259  |
| &nbsp;&nbsp;Other comprehensive income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;**(3795)**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;696  | &nbsp;&nbsp;&nbsp;&nbsp;(9063)  |
| Comprehensive income (loss) | &nbsp;&nbsp;**120048**  | &nbsp;&nbsp;197688  | &nbsp;&nbsp;(560593)  |
| &nbsp;&nbsp;&nbsp;Comprehensive (income) loss attributable to noncontrolling interests | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**54**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;711  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(243)  |
| Comprehensive income (loss) attributable to common stockholders | **$120102**  | $198399  | $(560836) |

---

(a) Amounts are shown net of deferred tax benefit of $1.2 million for the year ended December 31, 2025, deferred tax expense of $0.1 million for the year ended December 31, 2024, and deferred tax benefit of $2.7 million for the year ended December 31, 2023. 

(b)<br> The deferred tax impact was not meaningful for the years ended December 31, 2025, 2024, and 2023.

See Notes to Consolidated Financial Statements.<br>

F-36<br>

------

#### **TABLE OF CONTENTS**

#### HOWARD HUGHES HOLDINGS INC. <br>

#### CONSOLIDATED STATEMENTS OF EQUITY

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Additional** <br>**Paid-In** <br>**Capital** | **Retained** <br>**Earnings** <br>**(Accumulated** <br>**Deficit)** | **Accumulated** <br>**Other** <br>**Comprehensive** <br>**Income (Loss)** | **Treasury Stock** | **Treasury Stock** | **Total** <br>**Stockholders'** <br>**Equity** | **Noncontrolling** <br>**Interests** | **Total** <br>**Equity**  |
| <br>*thousands except shares* | **Shares** | **Amount** | **Additional** <br>**Paid-In** <br>**Capital** | **Retained** <br>**Earnings** <br>**(Accumulated** <br>**Deficit)** | **Accumulated** <br>**Other** <br>**Comprehensive** <br>**Income (Loss)** | **Shares** | **Amount** | **Total** <br>**Stockholders'** <br>**Equity** | **Noncontrolling** <br>**Interests** | **Total** <br>**Equity**  |
| &nbsp;&nbsp;**Balance, December 31, 2022** | 56226273  | &nbsp;&nbsp;&nbsp;$564  | $3972561  | &nbsp;&nbsp;&nbsp;$168077  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$10335  | (6424276) | $(611038) | &nbsp;&nbsp;$3540499  | &nbsp;&nbsp;&nbsp;&nbsp;$65613  | $3606112  |
| &nbsp;&nbsp;Net income (loss)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;(551773)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;(551773)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;243  | &nbsp;&nbsp;&nbsp;(551530)  |
| Interest rate swaps, net of tax expense (benefit) of $(2729)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9322)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9322)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9322)  |
| Pension adjustment, net of tax, expense (benefit) of $70 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;259  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;259  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;259  |
| Teravalis noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;219  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;219  |
| &nbsp;&nbsp;Stock plan activity | &nbsp;&nbsp;&nbsp;&nbsp;269518  | &nbsp;&nbsp;&nbsp;&nbsp;1  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15935  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;(33501)  | &nbsp;&nbsp;&nbsp;&nbsp;(2728)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13208  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13208  |
| &nbsp;&nbsp;Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22)  |
| &nbsp;&nbsp;**Balance, December 31, 2023** | 56495791  | &nbsp;&nbsp;&nbsp;$565  | $3988496  | &nbsp;&nbsp;&nbsp;$(383696)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1272  | (6457777)  | $(613766) | &nbsp;&nbsp;$2992871  | &nbsp;&nbsp;&nbsp;&nbsp;$66053  | $3058924  |
| Net income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;197703  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;197703  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(711)  | &nbsp;&nbsp;&nbsp;&nbsp;196992  |
| Interest rate swaps, net of tax expense (benefit) of $60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;321  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;321  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;321  |
| &nbsp;&nbsp;Pension adjustment, net of tax expense (benefit) of $118 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;375  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;375  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;375  |
| Teravalis noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;206  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;206  |
| Distribution of Seaport Entertainment Group Inc. to stockholders | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;(428229)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;(428229)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;(428229)  |
| &nbsp;&nbsp;Stock plan activity | &nbsp;&nbsp;&nbsp;&nbsp;114218  | &nbsp;&nbsp;&nbsp;&nbsp;1  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16007  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;(36082)  | &nbsp;&nbsp;&nbsp;&nbsp;(2823)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13185  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13185  |
| &nbsp;&nbsp;**Balance, December 31, 2024** | 56610009  | &nbsp;&nbsp;&nbsp;$566  | $3576274  | &nbsp;&nbsp;&nbsp;$(185993)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1968  | (6493859)  | $(616589) | &nbsp;&nbsp;$2776226  | &nbsp;&nbsp;&nbsp;&nbsp;$65548  | $2841774  |
| Net income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;123897  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;123897  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(54)  | &nbsp;&nbsp;&nbsp;&nbsp;123843  |
| &nbsp;&nbsp;Interest rate swaps, net of tax expense (benefit) of $(1231) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3885)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3885)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3885)  |
| Pension adjustment, net of tax expense (benefit) of $24 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90  |
| Deconsolidation of Associations of Unit Owners | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;979  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;979  |
| Teravalis noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;317  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;317  |
| Issuance of common shares, net | &nbsp;&nbsp;9000000  | &nbsp;&nbsp;&nbsp;90  | &nbsp;&nbsp;&nbsp;&nbsp;862699  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;862789  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;862789  |
| &nbsp;&nbsp;Stock plan activity | &nbsp;&nbsp;&nbsp;&nbsp;300631  | &nbsp;&nbsp;&nbsp;&nbsp;3  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19865  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;(46428)  | &nbsp;&nbsp;&nbsp;&nbsp;(3529)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16339  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16339  |
| &nbsp;&nbsp;**Balance, December 31, 2025** | 65910640  | &nbsp;&nbsp;&nbsp;$659  | $4458838  | &nbsp;&nbsp;&nbsp;$(62096)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$(1827)  | (6540287) | $(620118) | &nbsp;&nbsp;$3775456  | &nbsp;&nbsp;&nbsp;&nbsp;$66790  | $3842246 |

---

See Notes to Consolidated Financial Statements.<br>

F-37<br>

------

#### **TABLE OF CONTENTS**

#### HOWARD HUGHES HOLDINGS INC. <br>

#### CONSOLIDATED STATEMENTS OF CASH FLOWS

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
| <br>*thousands* | **2025** | **2024** | **2023**  |
| **CASH FLOWS FROM OPERATING ACTIVITIES**<br>|  |  |  |
| Net income (loss) | **$123843**  | $196992  | $(551530)  |
| Net income (loss) from discontinued operations, net of taxes | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;(88223)  | &nbsp;&nbsp;(634940)  |
| Net income (loss) from continuing operations | &nbsp;&nbsp;&nbsp;**123843**  | &nbsp;&nbsp;&nbsp;285215  | &nbsp;&nbsp;&nbsp;&nbsp;83410  |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | &nbsp;&nbsp;&nbsp;**164031**  | &nbsp;&nbsp;&nbsp;160638  | &nbsp;&nbsp;&nbsp;151881  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | &nbsp;&nbsp;&nbsp;&nbsp;**19444**  | &nbsp;&nbsp;&nbsp;&nbsp;19360  | &nbsp;&nbsp;&nbsp;&nbsp;16960  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs  | &nbsp;&nbsp;&nbsp;&nbsp;**12375**  | &nbsp;&nbsp;&nbsp;&nbsp;12396  | &nbsp;&nbsp;&nbsp;&nbsp;11840  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangibles other than in-place leases | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**120**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;120  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;120  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Straight-line rent amortization | &nbsp;&nbsp;&nbsp;&nbsp;**(6156)**  | &nbsp;&nbsp;&nbsp;&nbsp;(7012)  | &nbsp;&nbsp;&nbsp;&nbsp;(7464)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes  | &nbsp;&nbsp;&nbsp;&nbsp;**23579**  | &nbsp;&nbsp;&nbsp;&nbsp;61529  | &nbsp;&nbsp;&nbsp;&nbsp;(9897)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted stock and stock option amortization | &nbsp;&nbsp;&nbsp;&nbsp;**19802**  | &nbsp;&nbsp;&nbsp;&nbsp;16006  | &nbsp;&nbsp;&nbsp;&nbsp;16394  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on sale of properties | &nbsp;&nbsp;&nbsp;**(29825)**  | &nbsp;&nbsp;&nbsp;(22907)  | &nbsp;&nbsp;&nbsp;(24162)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of MUD receivables | &nbsp;&nbsp;&nbsp;&nbsp;**48197**  | &nbsp;&nbsp;&nbsp;&nbsp;48651  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of MUD receivables | &nbsp;&nbsp;&nbsp;**180043**  | &nbsp;&nbsp;&nbsp;176680  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on extinguishment of debt | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**698**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;465  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;97  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in (earnings) losses from unconsolidated ventures, net of distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4496**  | &nbsp;&nbsp;&nbsp;&nbsp;12436  | &nbsp;&nbsp;&nbsp;(15539)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for (recovery of) doubtful accounts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3414**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(499)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8274  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Master Planned Communities development expenditures | &nbsp;&nbsp;**(477870)**  | &nbsp;&nbsp;(427979)  | &nbsp;&nbsp;(403633)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Master Planned Communities cost of sales, net of SID bonds transfers to buyers | &nbsp;&nbsp;&nbsp;**170968**  | &nbsp;&nbsp;&nbsp;151177  | &nbsp;&nbsp;&nbsp;126167  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Condominium development expenditures | &nbsp;&nbsp;**(511013)**  | &nbsp;&nbsp;(681998)  | &nbsp;&nbsp;(472666)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Condominium rights and units cost of sales, net of closing commissions | &nbsp;&nbsp;&nbsp;**358953**  | &nbsp;&nbsp;&nbsp;565419  | &nbsp;&nbsp;&nbsp;&nbsp;53156  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4742**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1319  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Changes:<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | &nbsp;&nbsp;&nbsp;**(18215)**  | &nbsp;&nbsp;&nbsp;&nbsp;83784  | &nbsp;&nbsp;&nbsp;117334  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets, net | &nbsp;&nbsp;&nbsp;&nbsp;**26595**  | &nbsp;&nbsp;&nbsp;&nbsp;15681  | &nbsp;&nbsp;&nbsp;&nbsp;30687  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Condominium deposits, net | &nbsp;&nbsp;&nbsp;**289108**  | &nbsp;&nbsp;&nbsp;(19065)  | &nbsp;&nbsp;&nbsp;&nbsp;88595  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred expenses, net | &nbsp;&nbsp;&nbsp;**(40556)**  | &nbsp;&nbsp;&nbsp;(31123)  | &nbsp;&nbsp;&nbsp;(26874)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | &nbsp;&nbsp;&nbsp;&nbsp;**95597**  | &nbsp;&nbsp;&nbsp;&nbsp;28777  | &nbsp;&nbsp;&nbsp;&nbsp;38847  |
| &nbsp;&nbsp;&nbsp;Cash provided by (used in) operating activities of continuing operations | &nbsp;&nbsp;&nbsp;**462370**  | &nbsp;&nbsp;&nbsp;447751  | &nbsp;&nbsp;(215154)  |
| &nbsp;&nbsp;&nbsp;Cash provided by (used in) operating activities of discontinued operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;(51160)  | &nbsp;&nbsp;&nbsp;(43327)  |
| &nbsp;&nbsp;&nbsp;**Cash provided by (used in) operating activities** | &nbsp;&nbsp;&nbsp;**462370**  | &nbsp;&nbsp;&nbsp;396591  | &nbsp;&nbsp;(258481)  |
| **CASH FLOWS FROM INVESTING ACTIVITIES**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment expenditures | &nbsp;&nbsp;&nbsp;&nbsp;**(3499)**  | &nbsp;&nbsp;&nbsp;&nbsp;(2143)  | &nbsp;&nbsp;&nbsp;&nbsp;(7340)  |
| &nbsp;&nbsp;&nbsp;Operating property improvements | &nbsp;&nbsp;&nbsp;**(44758)**  | &nbsp;&nbsp;&nbsp;(47949)  | &nbsp;&nbsp;&nbsp;(40211)  |
| &nbsp;&nbsp;&nbsp;Property development and redevelopment | &nbsp;&nbsp;**(170959)**  | &nbsp;&nbsp;(252953)  | &nbsp;&nbsp;(231038)  |
| &nbsp;&nbsp;&nbsp;Acquisition of assets | &nbsp;&nbsp;&nbsp;&nbsp;**(18115)**  | &nbsp;&nbsp;&nbsp;(18456)  | &nbsp;&nbsp;&nbsp;&nbsp;(5898)  |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of properties, net | &nbsp;&nbsp;&nbsp;&nbsp;**12336**  | &nbsp;&nbsp;&nbsp;&nbsp;48408  | &nbsp;&nbsp;&nbsp;&nbsp;39543  |
| &nbsp;&nbsp;&nbsp;Reimbursements under tax increment financings and grants | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6583**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8721  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1469  |
| &nbsp;&nbsp;&nbsp;Distributions from unconsolidated ventures | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4386**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6657  | &nbsp;&nbsp;&nbsp;&nbsp;12995  |
| &nbsp;&nbsp;&nbsp;Investments in unconsolidated ventures, net | &nbsp;&nbsp;&nbsp;&nbsp;**(3582)**  | &nbsp;&nbsp;&nbsp;&nbsp;(3500)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;Other | &nbsp;&nbsp;&nbsp;&nbsp;**(1458)**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;Net parent investment in discontinued operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;(169490)  | &nbsp;&nbsp;(115185)  |
| &nbsp;&nbsp;&nbsp;Cash provided by (used in) investing activities of continuing operations | &nbsp;&nbsp;**(219066)**  | &nbsp;&nbsp;(430705)  | &nbsp;&nbsp;(345665)  |
| &nbsp;&nbsp;&nbsp;Cash provided by (used in) investing activities of discontinued operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;129911  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9522  |
| &nbsp;&nbsp;&nbsp;**Cash provided by (used in) investing activities** | &nbsp;&nbsp;**(219066)**  | &nbsp;&nbsp;(300794)  | &nbsp;&nbsp;(336143)  |

---

See Notes to Consolidated Financial Statements.<br>

F-38<br>

------

#### **TABLE OF CONTENTS**

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
| <br>*thousands* | **2025** | **2024** | **2023**  |
| **CASH FLOWS FROM FINANCING ACTIVITIES**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from mortgages, notes, and loans payable | &nbsp;&nbsp;&nbsp;&nbsp;**759545**  | &nbsp;&nbsp;&nbsp;&nbsp;761429  | &nbsp;&nbsp;&nbsp;&nbsp;677441  |
| &nbsp;&nbsp;&nbsp;Principal payments on mortgages, notes, and loans payable | &nbsp;&nbsp;&nbsp;**(782458)**  | &nbsp;&nbsp;&nbsp;(807548)  | &nbsp;&nbsp;&nbsp;(147623)  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock, net | &nbsp;&nbsp;&nbsp;&nbsp;**862789**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;Debt extinguishment costs | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(422)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;Special Improvement District bond funds released from (held in) escrow | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25254**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16850  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11037  |
| &nbsp;&nbsp;&nbsp;Deferred financing costs and bond issuance costs | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(6091)**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6235)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(569)  |
| &nbsp;&nbsp;&nbsp;Taxes paid on stock options exercised and restricted stock vested | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3641)**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2306)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2696)  |
| &nbsp;&nbsp;&nbsp;Stock options exercised | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**58**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;Sale of preferred stock in Seaport subsidiary | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9850  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;Contributions from Teravalis noncontrolling interest owner | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**317**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;206  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;219  |
| &nbsp;&nbsp;&nbsp;Cash provided by (used in) financing activities of continuing operations | &nbsp;&nbsp;&nbsp;&nbsp;**855351**  | &nbsp;&nbsp;&nbsp;&nbsp;(27754)  | &nbsp;&nbsp;&nbsp;&nbsp;537809  |
| &nbsp;&nbsp;&nbsp;Cash provided by (used in) financing activities of discontinued operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;(122597)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10935  |
| &nbsp;&nbsp;&nbsp;**Cash provided by (used in) financing activities** | &nbsp;&nbsp;&nbsp;&nbsp;**855351**  | &nbsp;&nbsp;&nbsp;(150351)  | &nbsp;&nbsp;&nbsp;&nbsp;548744  |
| Net change in cash, cash equivalents, and restricted cash | &nbsp;&nbsp;**1098655**  | &nbsp;&nbsp;&nbsp;&nbsp;(54554)  | &nbsp;&nbsp;&nbsp;&nbsp;(45880)  |
| Cash, cash equivalents, and restricted cash at beginning of period | &nbsp;&nbsp;&nbsp;&nbsp;**998503**  | &nbsp;&nbsp;1053057  | &nbsp;&nbsp;1098937  |
| Cash, cash equivalents, and restricted cash at end of period | &nbsp;&nbsp;**2097158**  | &nbsp;&nbsp;&nbsp;&nbsp;998503  | &nbsp;&nbsp;1053057  |
| Less: Cash, cash equivalents, and restricted cash of discontinued operations at end of period | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43845  |
| **Cash, cash equivalents, and restricted cash of continuing operations at end of period** | **$2097158**  | $998503  | $1009212  |
| **RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents  | **$1468507** | &nbsp;&nbsp;$596083  | &nbsp;&nbsp;$629714  |
| &nbsp;&nbsp;&nbsp;Restricted cash | &nbsp;&nbsp;&nbsp;&nbsp;**628651**  | &nbsp;&nbsp;&nbsp;&nbsp;402420  | &nbsp;&nbsp;&nbsp;&nbsp;379498  |
| **Cash, cash equivalents, and restricted cash of continuing operations at end of period** | **$2097158**  | $998503  | $1009212  |
| **SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION — CONTINUING OPERATIONS**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Interest paid, net | &nbsp;&nbsp;**$282844**  | &nbsp;&nbsp;$298364  | &nbsp;&nbsp;$239995  |
| &nbsp;&nbsp;&nbsp;Interest capitalized | &nbsp;&nbsp;&nbsp;&nbsp;**148780**  | &nbsp;&nbsp;&nbsp;&nbsp;151632  | &nbsp;&nbsp;&nbsp;&nbsp;109510  |
| &nbsp;&nbsp;&nbsp;Income taxes paid (refunded), net<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8793**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1500  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5305  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Texas | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**560**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2443  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2379  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Arizona | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**410**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maryland | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**235**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York | &nbsp;&nbsp;&nbsp;&nbsp;**(14150)**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2300  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Illinois | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;624  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other states | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**150**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| **NON-CASH TRANSACTIONS — CONTINUING OPERATIONS**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Consideration from sale of properties | &nbsp;&nbsp;&nbsp;&nbsp;**$41125**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$5250  |
| &nbsp;&nbsp;&nbsp;Special Improvement District bonds transfers to buyers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17736**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18014  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13883  |
| &nbsp;&nbsp;&nbsp;Special Improvement District bonds held in third-party escrow | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16425**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37990  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21290  |
| &nbsp;&nbsp;&nbsp;Capitalized stock compensation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3187**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3936  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4669  |
| &nbsp;&nbsp;&nbsp;Accrued property improvements, developments, and redevelopments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(9612)**  | &nbsp;&nbsp;&nbsp;&nbsp;(13441)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;909  |
| &nbsp;&nbsp;&nbsp;Initial recognition of operating lease right-of-use asset | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;766  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;Initial recognition of operating lease obligation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;766  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| **NON-CASH TRANSACTIONS — DISCONTINUED OPERATIONS**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Distribution of Seaport Entertainment Group Inc. to stockholders | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$—**  | &nbsp;&nbsp;$361210  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— |

---

See Notes to Consolidated Financial Statements.<br>

F-39<br>

------

1. Presentation of Financial Statements and Significant Accounting Policies

**General Howard Hughes Holdings Inc. (HHH or the Company) is a holding company that owns a real estate development subsidiary, The Howard Hughes Corporation (HHC). Through HHC, the Company operates a large-scale, mixed-use real estate platform focused on the development of master planned communities (MPCs), the investment in strategic real estate development opportunities, and the ownership and operation of income-producing properties. References to HHH, the Company, we, us, and our refer to Howard Hughes Holdings Inc. and its consolidated subsidiaries, which includes The Howard Hughes Corporation, unless otherwise specifically stated. References to HHC or Howard Hughes Communities refer to The Howard Hughes Corporation and its consolidated subsidiaries unless otherwise specifically stated.** 

In 2025, the Company began executing a long-term strategy to transition from a pure-play real estate company to a diversified holding company. On May 5, 2025, the Company issued 9,000,000 shares of newly issued common stock to Pershing Square for an aggregate purchase price of $900 million. In connection with the investment, the Company and Pershing Square entered into related agreements, including a Services Agreement, Shareholder Agreement, Standstill Agreement, and Registration Rights Agreement. The Company intends to use the proceeds from the transaction to acquire or invest in operating businesses.

As previously disclosed in our Current Report on Form 8-K filed on December 18, 2025, the Company entered into a definitive agreement to acquire 100% of Vantage Group Holdings Ltd. (Vantage), a privately held specialty insurance and reinsurance company, for cash consideration of approximately $2.1 billion. The transaction remains subject to regulatory approvals and other customary closing conditions, and is expected to close in the second quarter of 2026. To support the funding of the acquisition, the Company also entered into an equity commitment letter with Pershing Square Holdings, Ltd. under which Pershing Square committed to purchase up to $1.0 billion of the Company's preferred stock, prior to and contingent upon the closing of the Vantage acquisition. Over time, the Company will have the right, but not the obligation, to repurchase the preferred stock during specified periods and upon certain triggering events. The acquisition is expected to be funded through the Company's cash on hand, and proceeds from the issuance of the preferred stock.

See Note 2 - *Pershing Square* for additional information related to the transactions with Pershing Square in the current period.

**Principles of Consolidation and Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). The consolidated financial statements include the accounts of Howard Hughes Holdings Inc. and its subsidiaries after elimination of intercompany balances and transactions. The Company also consolidates certain variable interest entities (VIEs) in accordance with Financial Accounting Standards Board's Accounting Standards Codification (ASC) 810 *Consolidation*. The outside equity interests in certain entities controlled by the Company are reflected in the Consolidated Financial Statements as noncontrolling interests.** 

On July 31, 2024, the spinoff of Seaport Entertainment Group Inc. and its subsidiaries (Seaport Entertainment or SEG) was completed (the Spinoff). As the Spinoff represented a strategic shift in the Company's operations, the results of SEG are presented as discontinued operations in the Consolidated Statements of Operations and the Consolidated Statements of Cash Flows and, as such, have been excluded from both continuing operations and segment results for all periods presented. The Consolidated Statements of Comprehensive Income (Loss), and Equity are presented on a consolidated basis for both continuing operations and discontinued operations. The disclosures presented in the notes to the Consolidated Financial Statements are presented on a continuing operations basis unless otherwise noted. See Note 3 - *Discontinued Operations* for additional information.

Management has evaluated for disclosure or recognition all material events occurring subsequent to the date of the Consolidated Financial Statements up to the date and time this Annual Report was filed.

**Variable Interest Entities The Company has interests in various legal entities that represent a variable interest entity. A VIE is an entity: (a) that has total equity at risk that is not sufficient to permit the entity to finance its activities without additional subordinated financial support from other entities; (b) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity's economic performance, or the obligation to absorb the entity's expected losses or the right to receive the entity's expected residual return, or both (i.e., lack the characteristics of a controlling financial interest); or (c) where the** 

F-40<br>

------

voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity's activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights.

The Company determines if a legal entity is a VIE by performing a qualitative analysis that requires certain subjective decisions, taking into consideration the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties and the purpose of the arrangement. Upon the occurrence of certain reconsideration events, the Company reassesses its initial determination as to whether the entity is a VIE.

The Company also performs a qualitative assessment of each VIE to determine if it is the primary beneficiary. The Company is the primary beneficiary and would consolidate the VIE if it has a controlling financial interest where it has both (a) the power to direct the economically significant activities of the entity and (b) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. This assessment requires certain subjective decisions, taking into consideration the contractual agreements that define the ownership structure, the design of the entity, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights and board representation of the respective parties. Management's assessment of whether the Company is the primary beneficiary of a VIE is continuously performed.

Upon initial consolidation of a VIE, the Company records the assets, liabilities, and noncontrolling interests at fair value and recognizes a gain or loss for the difference between (i) the fair value of the consideration paid, the fair value of noncontrolling interests and the reported amount of any previously held interests and (ii) the net amount of the fair value of the assets and liabilities.

If the Company determines it is no longer the primary beneficiary of a VIE, it will deconsolidate the entity and measure the initial cost basis for any retained interests that are recorded upon the deconsolidation at fair value. The Company will recognize a gain or loss for the difference between the fair value and the previous carrying amount of its investment in the VIE.

#### Consolidated Variable Interest Entities
**Teravalis At December 31, 2025, and 2024, the Company owned an 88.0% interest in Teravalis, the Company's newest large-scale master planned community in the West Valley of Phoenix, Arizona, and a third party owned the remaining 12.0%. Teravalis was determined to be a VIE, and as the Company has the power to direct the activities that most significantly impact its economic performance, the Company is considered the primary beneficiary and consolidates Teravalis.** 

Under the terms of the LLC agreement, cash distributions and the recognition of income-producing activities will be pro rata based on economic ownership interest. As of December 31, 2025, the Company's Consolidated Balance Sheets included $543.9 million of MPC assets and $65.2 million of Noncontrolling interest related to Teravalis. As of December 31, 2024, the Company's Consolidated Balance Sheets included $542.1 million of MPC assets and $65.1 million of Noncontrolling interest related to Teravalis.

**'Ilima The Company entered into a joint venture agreement with Discovery Land Company (Discovery) to form Block E Ward Village ('Ilima) for the purpose of developing, constructing, and operating a residential condominium tower in Ward Village. 'Ilima was determined to be a VIE, and as the Company has the power to direct the activities that most significantly impact its economic performance, the Company is considered the primary beneficiary and consolidates 'Ilima. Pre-sales for 'Ilima commenced in June 2025. The Company currently funds 100% of the predevelopment activity.** 

Once pre-sales targets are met and construction financing is obtained, the Company will contribute land and Discovery will contribute to up $5.0 million. All other necessary capital contributions will be funded by the Company. After completion of the condominium tower and closing of condominium sales, cash distributions and the recognition of income-producing activities will be pro rata based on ownership interest. At December 31, 2025, and 2024, the Company owned approximately 100% of this venture.

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#### **TABLE OF CONTENTS**
The Company's Consolidated Balance Sheets included the following amounts related to 'Ilima as of December 31:

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| | | |
|:---|:---|:---|
| *thousands* | **2025** | **2024**  |
| Buildings and equipment | &nbsp;&nbsp;&nbsp;**$7161**  | &nbsp;&nbsp;$698  |
| Less: accumulated depreciation | &nbsp;&nbsp;&nbsp;&nbsp;**(1354)**  | &nbsp;&nbsp;&nbsp;&nbsp;(19)  |
| Developments | &nbsp;&nbsp;&nbsp;**14684**  | &nbsp;&nbsp;7747  |
| Net investment in real estate | &nbsp;&nbsp;&nbsp;**20491**  | &nbsp;&nbsp;8426  |
| Cash and cash equivalents | &nbsp;&nbsp;&nbsp;**21690**  | &nbsp;&nbsp;&nbsp;&nbsp;271  |
| Restricted cash | &nbsp;&nbsp;**136418**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Accounts receivable, net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**65**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Deferred expenses, net | &nbsp;&nbsp;&nbsp;**13571**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Other assets, net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**565**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;**Total assets** | **$192800**  | $8697  |
| Accounts payable and other liabilities | **$153430**  | $159  |
| **Total liabilities** | **$153430**  | $159 |

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**Investments in Unconsolidated Ventures The Company's investments in unconsolidated ventures are accounted for under the equity method to the extent that, based on contractual rights associated with the investments, the Company can exert significant influence over a venture's operations. Under the equity method, the Company's investment in the venture is recorded at cost and is subsequently adjusted to recognize the Company's allocable share of the earnings or losses of the venture. Dividends and distributions received by the Company are recognized as a reduction in the carrying amount of the investment. Generally, joint venture operating agreements provide that assets, liabilities, funding obligations, profits and losses, and cash flows are shared in accordance with ownership percentages. For certain equity method investments, various provisions in the joint venture operating agreements regarding distributions of cash flow based on capital account balances, allocations of profits and losses, and preferred returns may result in the Company's economic interest differing from its stated ownership or if applicable, the Company's final profit-sharing interest after receipt of any preferred returns based on the venture's distribution priorities. For these investments, the Company recognizes income or loss based on the joint venture's distribution priorities, which could fluctuate over time and may be different from its stated ownership or final profit-sharing percentage.** 

The Company periodically assesses the appropriateness of the carrying amount of its equity method investments, as events or changes in circumstance may indicate that a decrease in value has occurred which is other-than-temporary. In addition to the property-specific impairment analysis performed on the underlying assets of the investment, the Company also considers the ownership, distribution preferences, limitations and rights to sell and repurchase its ownership interests. If a decrease in value of an investment is deemed to be other-than-temporary, the investment is reduced to its estimated fair value, and an impairment-related loss is recognized in the Consolidated Statements of Operations as a component of Equity in earnings (losses) from investments in unconsolidated ventures.

For investments in ventures where the Company has virtually no influence over operations and the investments do not have a readily determinable fair value, the Company has elected the measurement alternative to carry the securities at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the issuer. Equity securities not accounted for under the equity method, or where the measurement alternative has not been elected, are required to be reported at fair value with unrealized gains and losses reported in the Consolidated Statements of Comprehensive Income (Loss) as Net unrealized gains (losses) on instruments measured at fair value through earnings.

**Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The estimates and assumptions include, but are not limited to, capitalization of development costs, provision for income taxes, recoverable amounts of receivables and deferred tax assets, initial valuations of tangible and intangible assets acquired, and the related useful lives of assets upon which depreciation and amortization is based. Estimates and assumptions have also** 

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been made with respect to future revenues and costs, and the fair value of warrants, debt, and options granted. MPC cost of sales estimates are highly judgmental as they are sensitive to cost escalation, sales price escalation, and lot absorption, which are subject to judgment and affected by expectations about future market or economic conditions. Additionally, the future cash flow estimates and fair values used for impairment analysis are highly judgmental and reflect current and projected trends in rental, occupancy, pricing, development costs, sales pace, capitalization rates, selling costs, and estimated holding periods for the applicable assets. Both MPC cost of sale estimates and estimates used in impairment analysis are affected by expectations about future market or economic conditions. Actual results could differ from these and other estimates.

**Segments The Company operates in three business segments: (i) Operating Assets; (ii) MPC; and (iii) Strategic Developments. Segment information is prepared on the same basis that management reviews information for operational decision-making purposes. Management evaluates the performance of each of HHH's real estate assets or investments individually and aggregates such properties into segments based on their economic characteristics and types of revenue streams.** 

#### Net Investment in Real Estate
***Master Planned Community Assets, Buildings and Equipment, and Land Real estate assets are stated at cost less any provisions for impairments and depreciation as applicable. Expenditures for significant improvements to the Company's assets are capitalized. Tenant improvements relating to the Company's operating assets are capitalized and depreciated over the shorter of their economic lives or the lease term. Maintenance and repair costs are charged to expense when incurred.***

***Depreciation The Company periodically reviews the estimated useful lives of properties. Depreciation or amortization expense is computed using the straight-line method based upon the following estimated useful lives:***

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| | | |
|:---|:---|:---|
| **Asset Type** | **Years** | **Balance Sheet Location**  |
| Buildings and improvements | 7 - 40 | Buildings and Equipment  |
| Equipment and fixtures | 5 - 20 | Buildings and Equipment  |
| Computer hardware and vehicles | 3 - 5 | Buildings and Equipment  |
| Tenant improvements | Related lease term | Buildings and Equipment  |
| Leasing costs | Related lease term | Other assets, net |

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From time to time, the Company may reassess the development strategies for certain buildings and improvements which results in changes to the Company's estimate of their remaining useful lives. The Company did not recognize additional depreciation expense of significance for the years ended December 31, 2025, 2024, and 2023.

***Developments Development costs, which primarily include direct costs related to placing the asset in service associated with specific development properties, are capitalized as part of the property being developed. Construction and improvement costs incurred in connection with the development of new properties or the redevelopment of existing properties are capitalized before they are placed into service. Such costs include planning, engineering, design, direct material, labor, and subcontract costs. Real estate taxes, utilities, direct legal and professional fees related to the sale of a specific unit, interest, insurance costs, and certain employee costs incurred during construction periods are also capitalized. Capitalization commences when the development activities begin and ceases when a project is completed, put on hold, or at the date that the Company decides not to move forward with a project. Capitalized costs related to a project where HHH has determined not to move forward are expensed if they are not deemed recoverable. Capitalized interest costs are based on qualified expenditures and interest rates in place during the construction period. Demolition costs associated with redevelopments are expensed as incurred unless the demolition was included in the Company's development plans and imminent as of the acquisition date of an asset.***

Once construction of operating properties is complete, the assets are placed into service, and capitalized costs are reclassed to Buildings and equipment and are depreciated in accordance with the Company's policy. Once construction of condominiums is complete, the assets are reflected as condominium inventory in Other assets, net until the sale of each condominium unit is closed and the related cost is realized in Condominium rights and units cost of sales. In the event that management no longer has the ability or intent to complete a development, the costs previously capitalized are evaluated for impairment.

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#### **TABLE OF CONTENTS**
Developments consist of the following categories as of December 31:

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| | | |
|:---|:---|:---|
| *thousands* | **2025** | **2024**  |
| Development costs | **$1307851**  | $1190746  |
| &nbsp;&nbsp;Land and improvements | &nbsp;&nbsp;&nbsp;&nbsp;**169764**  | &nbsp;&nbsp;&nbsp;&nbsp;150283  |
| Total Developments | **$1477615**  | $1341029 |

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***Acquisitions of Properties The Company accounts for the acquisition of real estate properties in accordance with ASC 805 Business Combinations. This methodology requires that assets acquired and liabilities assumed be recorded at their fair values on the date of acquisition for business combinations and at relative fair values for asset acquisitions. Acquisition costs related to the acquisition of a business are expensed as incurred. Costs directly related to asset acquisitions are considered additions to the purchase price and increase the cost basis of such assets.***

The fair value of tangible assets of an acquired property (which includes land, buildings and improvements) is determined by valuing the property as if it were vacant, and the as-if-vacant value is then allocated to land, buildings and improvements based on management's determination of the fair value of these assets. The as-if-vacant values are derived from several sources which incorporate significant unobservable inputs that are classified as Level 3 inputs in the fair value hierarchy and primarily include a discounted cash flow analysis using discount and capitalization rates based on recent comparable market transactions, where available.

The fair value of acquired intangible assets consisting of in-place, above-market, and below-market leases is recorded based on a variety of considerations, some of which incorporate significant unobservable inputs that are classified as Level 3 inputs in the fair value hierarchy. In-place lease considerations include, but are not necessarily limited to: (1) the value associated with avoiding the cost of originating the acquired in-place leases (i.e., the market cost to execute a lease, including leasing commissions and tenant improvements); (2) the value associated with lost revenue related to tenant reimbursable operating costs incurred during the assumed lease-up period (i.e., real estate taxes, insurance, and certain other operating expenses); and (3) the value associated with lost rental revenue from existing leases during the assumed lease-up period. Above-market and below-market leases are valued at the present value, using a discount rate that reflects the risks associated with the leases acquired, of the difference between (1) the contractual amounts to be paid pursuant to the in-place lease; and (2) management's estimate of current market lease rates, measured over the remaining non-cancelable lease term, including any below-market renewal option periods.

***Impairment HHH reviews its long-lived assets (including those held by its unconsolidated ventures) for potential impairment indicators whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount of an asset is not recoverable and exceeds its fair value. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future economic conditions, such as occupancy, rental rates, capital requirements, and sales values that could differ materially from actual results in future periods. If impairment indicators exist and it is expected that undiscounted cash flows generated by the asset are less than its carrying amount, an impairment provision is recorded to write down the carrying amount of the asset to its fair value.***

Impairment indicators for HHH's assets or projects within MPCs are assessed separately and include, but are not limited to, significant decreases in sales pace or average selling prices, significant increases in expected land development and construction costs or cancellation rates, and projected losses on expected future sales. MPC assets have extended life cycles that may last 20 to 40 years, or longer, and have few long-term contractual cash flows. Further, MPC assets generally have minimal to no residual values because of their liquidating characteristics. MPC development periods often occur through several economic cycles. Subjective factors such as the expected timing of property development and sales, optimal development density, and sales strategy impact the timing and amount of expected future cash flows and fair value.

Impairment indicators for Operating Assets are assessed for each property and include, but are not limited to, significant decreases in net operating income, significant decreases in occupancy, ongoing low occupancy, and significant net operating losses.

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Impairment indicators for assets in the Strategic Developments are assessed by project and include, but are not limited to, significant changes in projected completion dates, revenues or cash flows, development costs, market factors, significant decreases in comparable property sale prices, and feasibility.

The cash flow estimates used for determining recoverability and estimating fair value are inherently judgmental and reflect current and projected trends in rental rates, occupancy, pricing, development costs, sales pace, capitalization rates, and estimated holding periods for the applicable assets. Although the estimated fair value of certain assets may be exceeded by the carrying amount, a real estate asset is only considered to be impaired when its carrying amount is not expected to be recovered through estimated future undiscounted cash flows. To the extent an impairment provision is necessary, the excess of the carrying amount of the asset over its estimated fair value is expensed to operations. In addition, the impairment provision is allocated proportionately to adjust the carrying amount of the asset. The adjusted carrying amount, which represents the new cost basis of the asset, is depreciated over the remaining useful life of the asset or, for MPCs, is expensed as a cost of sales when land is sold. Assets that have been impaired will in the future have lower depreciation and cost of sale expenses. The impairment will have no impact on cash flows.

**Cash and Cash Equivalents Cash and cash equivalents consist of highly-liquid investments with maturities at date of purchase of three months or less and include registered money market mutual funds which are invested in United States Treasury bills that are valued at the net asset value of the underlying shares in the funds as of the close of business at the end of each period as well as deposits with major banks throughout the United States. Such deposits are in excess of FDIC limits and are placed with high-quality institutions in order to minimize concentration of counterparty credit risk.** 

**Restricted Cash Restricted cash reflects amounts segregated in escrow accounts in the name of the Company, primarily related to escrowed condominium deposits from buyers and other amounts related to taxes, insurance, and legally restricted security deposits and leasing costs.** 

**Accounts Receivable, net Accounts receivable, net includes straight-line rent receivables, tenant receivables, related-party receivables, and other receivables. On a quarterly basis, management reviews the lease-related receivables, including straight-line rent receivables and tenant receivables, for collectability. This analysis includes a review of past due accounts and considers factors such as the credit quality of tenants, current economic conditions, and changes in customer payment trends. When full collection of a lease-related receivable or future lease payment is deemed to be not probable, a reserve for the receivable balance is charged against rental revenue and future rental revenue is recognized on a cash basis. The Company also records reserves for estimated losses if the estimated loss amount is probable and can be reasonably estimated.** 

Related-party receivables are primarily due from the Floreo joint venture. This balance includes reimbursable overhead costs incurred by the Company on behalf of Floreo and a $6.0 million guaranty fee associated with the increased borrowing capacity of Floreo's bond financing in the first quarter of 2025. See Note 4 - *Investments in Unconsolidated Ventures* for additional information on the Floreo joint venture and Note 12 - *Commitments and Contingencies* for additional information on the guaranty fee.

Other receivables are primarily related to short-term trade receivables. The Company is exposed to credit losses through the sale of goods and services to customers and assesses its exposure to credit loss related to these receivables on a quarterly basis based on historical collection experience and future expectations by portfolio. The Company records an allowance for credit losses if the estimated loss amount is probable.

The following table represents the components of Accounts Receivable, net of amounts considered uncollectible, in the accompanying Consolidated Balance Sheets as of December 31:

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| | | |
|:---|:---|:---|
| *thousands* | **2025** | **2024**  |
| Straight-line rent receivables | &nbsp;&nbsp;**$96975**  | &nbsp;&nbsp;$91050  |
| Tenant receivables | &nbsp;&nbsp;&nbsp;&nbsp;**5512**  | &nbsp;&nbsp;&nbsp;&nbsp;1638  |
| Related-party receivables | &nbsp;&nbsp;&nbsp;**18640**  | &nbsp;&nbsp;&nbsp;&nbsp;6908  |
| Other receivables | &nbsp;&nbsp;&nbsp;**12995**  | &nbsp;&nbsp;&nbsp;&nbsp;5589  |
| Accounts receivable, net<sup>(a)</sup> | **$134122**  | $105185 |

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(a) As of December 31, 2025, the total reserve balance for amounts considered uncollectible was $7.2 million, composed of $7.0 million attributable to lease-related receivables and $0.2 million attributable to the allowance for credit losses related to other accounts receivable. As of December 31, 2024, the total reserve balance was $8.2 million, comprised of $8.1 million attributable to lease-related receivables and $0.1 million attributable to the allowance for credit losses related to other accounts receivables. 

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The following table summarizes the impacts of the collectability reserves in the accompanying Consolidated Statements of Operations for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| *thousands* |  |  |  |
| **Statements of Operations Location** | **2025** | **2024** | **2023**  |
| Rental revenue | **$3117**  | $(860)  | $10984  |
| Provision for (recovery of) doubtful accounts | &nbsp;&nbsp;&nbsp;&nbsp;**232**  | &nbsp;&nbsp;&nbsp;504  | &nbsp;&nbsp;(2762)  |
| Total (income) expense impact | **$3349**  | $(356)  | $8222 |

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**Municipal Utility District Receivables, net In Houston, Texas, certain development costs are reimbursable through the creation of a Municipal Utility District, also known as Water Control and Improvement Districts, which are separate political subdivisions authorized by Article 16, Section 59 of the Texas Constitution and governed by the Texas Commission on Environmental Quality (TCEQ). MUDs are formed to provide municipal water, wastewater, drainage services, recreational facilities, and roads to those areas where they are currently unavailable through the regular city services. Typically, the developer advances funds for the creation of the facilities, which must be designed, bid, and constructed in accordance with the City of Houston's and TCEQ requirements.** 

The MUD Board of Directors authorizes and approves all MUD development contracts, and MUD bond sale proceeds are used to reimburse the developer for its construction costs, including interest. At the date the expenditures occur, the Company determines the costs it believes will be eligible for reimbursement and recognizes that as MUD receivables. These expenditures are subject to review by the MUD engineers for eligibility in accordance with the development contracts as part of the process for reimbursement. MUD receivables are pledged as security to creditors under the debt facilities relating to Bridgeland.

**Sale of MUD Receivables In September 2024, the Company entered into a sales transaction of MUD receivables, in which it transferred the reimbursement rights to $186.0 million of existing MUD receivables and $9.3 million of related accrued interest, as well as $40.0 million of anticipated future MUD receivables, for total cash consideration of $176.7 million. Using the relative fair value method, $146.7 million of the cash consideration was allocated to the sale of the existing MUD receivables and $30.0 million was allocated to the sale of the anticipated future MUD receivables. As a result of the sale, the Company derecognized the existing MUD receivables and related accrued interest, resulting in a loss on sale of $51.5 million in the Consolidated Statements of Operations in the third quarter of 2024. Due to an adjustment to the allocation between projects, a slight reduction in the loss was recognized in the fourth quarter of 2024, and the final impact of this sale was a loss of $48.7 million.** 

In May 2025, the Company entered into a transaction in which it transferred the reimbursement rights to $147.0 million of existing MUD receivables and $14.1 million of related accrued interest, as well as $95.9 million of anticipated future MUD receivables, for total cash consideration of $180.0 million. Using the relative fair value method, $112.8 million of the cash consideration was allocated to the sale of the existing MUD receivables and $67.2 million was allocated to the sale of the anticipated future MUD receivables. As a result of the sale, the Company derecognized the existing MUD receivables and related accrued interest, resulting in a loss on sale of $48.2 million in the Consolidated Statements of Operations.

For both transactions, the Company is required to complete future development activities. As such, liabilities associated with the future development spend were recorded at amortized cost in Accounts payable and other liabilities on the Consolidated Balance Sheets. The associated discounts, which represent the differences between the total future development spend and the allocated cash proceeds, are being amortized into interest expense over the expected development period using the effective interest method. As of December 31, 2025, the total remaining liability was $64.4 million and the total unamortized discount was $12.8 million. Interest expense related to the discount amortization was $21.8 million for the year ended December 31, 2025.

**Other Assets, net The major components of Other assets, net include security, escrow, and other deposits; Special Improvement District (SID) receivables; in-place leases; intangibles; Tax increment financing (TIF) receivables; prepaid expenses related to the Company's properties; condominium inventory; and various other assets.** 

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SID receivables are amounts due from SID bonds related to the Company's Summerlin MPC. Proceeds from SID bonds are held in escrow by a third-party and are used to reimburse the Company for a portion of the development costs incurred in Summerlin. See Note 9 - *Mortgages, Notes, and Loans Payable, Net* for additional information on the SID bonds.

The Company's intangibles include in-place lease assets and above-market lease assets where HHH is the lessor, as well as internally developed software, trademark and trade name intangibles related to MPCs, and goodwill. The Company amortizes finite-lived intangible assets less any residual value, if applicable, on a straight-line basis over the term of the related lease or the estimated useful life of the asset.

TIF receivables are amounts which the Company has submitted for reimbursement from Howard County in Maryland or from the state of Maryland, in conjunction with development costs expended on key roads and infrastructure work within Merriweather District specified per the terms of the county's TIF legislation, Special Obligation Bonds issued in October 2017, and Grant Disbursement Agreement executed in April 2023.

Notes receivable, net includes non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Subsequent to initial recognition, they are recorded at amortized cost less any provision for impairment as required under ASC 326 *Financial Instruments - Credit Losses*.

Condominium inventory includes available for sale units at HHH's completed condominium towers and is stated at the lower of cost or fair value less selling costs. Condominium inventory includes land acquisition and development costs, construction costs, and interest and real estate taxes that are capitalized during the development period. HHH evaluates condominium inventory for impairment when potential indicators exist. An impairment loss is recognized if the carrying amount of condominium inventory exceeds the fair value less selling costs, which is based on comparable sales in the normal course of business under existing and anticipated market conditions.

**Financial Instruments - Credit Losses The Company is exposed to credit losses through the sale of goods and services to the Company's customers. Receivables held by the Company primarily relate to short-term trade receivables and financing receivables, which include MUD receivables, SID bonds, TIF receivables, net investments in lease receivables, and notes receivable. The Company assesses its exposure to credit loss based on historical collection experience and future expectations by portfolio segment. Historical collection experience is evaluated on a quarterly basis by the Company.** 

The amortized cost basis of financing receivables, consisting primarily of MUD and SID receivables, totaled $560.3 million as of December 31, 2025, and $569.1 million as of December 31, 2024. The MUD receivable balance includes accrued interest of $48.2 million at December 31, 2025, and $44.0 million at December 31, 2024. The allowance for credit losses for financing receivables was not material as of December 31, 2025, and 2024, and there was no material activity related to the allowance for credit losses for the years ended December 31, 2025, 2024, and 2023.

Financing receivables are considered to be past due once they are 30 days contractually past due under the terms of the agreement. The Company currently does not have significant financing receivables that are past due or on nonaccrual status. There have been no significant write-offs or recoveries of amounts previously written-off during the current period for financing receivables.

**Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect for years in which the temporary differences are expected to reverse. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards.** 

The Company periodically assesses the realizability of its deferred tax assets. If the Company concludes that it is more likely than not that some of the deferred tax assets will not be realized, the tax asset is reduced by a valuation allowance. The Company considers many factors when assessing the likelihood of future realization of deferred tax assets, including expectations of future taxable income, carryforward periods available to the Company for tax reporting purposes, various income tax strategies, and other relevant factors. In addition, interest and penalties related to uncertain tax positions, if necessary, are recognized in income tax expense.

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In the Company's MPCs, gains with respect to land sales, whether for commercial use or for single-family residences, are reported for tax purposes either on the modified accrual method or on the percentage-of-completion method. Under the percentage-of-completion method, a gain is recognized for tax purposes as costs are incurred in satisfaction of contractual obligations.

**Deferred Expenses, net Deferred expenses consist principally of leasing costs. Deferred leasing costs are amortized to expense using the straight-line method over the related lease term. Deferred expenses are shown net of accumulated amortization of $68.1 million as of December 31, 2025, and $69.1 million as of December 31, 2024.** 

**Marketing and Advertising Each of the Company's segments incur various marketing and advertising costs as part of their development, branding, leasing, or sales initiatives. These costs include special events, broadcasts, direct mail and online digital and social media programs, and they are expensed as incurred.** 

**Fair Value of Financial Instruments The carrying values of cash and cash equivalents, escrows, receivables, accounts payable, accrued expenses, and other assets and liabilities are reasonable estimates of their fair values because of the short maturities of these instruments.** 

**Derivative Instruments and Hedging Activities Derivative instruments and hedging activities require management to make judgments on the nature of its derivatives and their effectiveness as hedges. These judgments determine if the changes in fair value of the derivative instruments are reported as a component of Net Income in the Consolidated Statements of Operations or as a component of Comprehensive Income in the Equity on the Consolidated Balance Sheets. While management believes its judgments are reasonable, a change in a derivative's effectiveness as a hedge could materially affect expenses, net income, and equity. The Company accounts for the changes in the fair value of an effective hedge in other comprehensive income (loss) and subsequently reclassifies the balance from other comprehensive income (loss) to earnings over the term that the hedged transaction affects earnings. The Company accounts for the changes in the fair value of an ineffective hedge directly in earnings.** 

**Stock-Based Compensation The Company maintains various equity incentive plans, with outstanding stock-based compensation awards (Awards) which include stock options and restricted stock awards (RSAs). In 2023, pursuant to the holding company reorganization discussed above, each outstanding share of HHC's common stock was automatically converted into one share of HHH common stock. HHH assumed all obligations under the equity incentive plans. All stock options and restricted stock outstanding will be settled in HHH stock.** 

In 2024, at the time of the Spinoff, all of these Awards were modified to adjust the number of HHH shares by certain ratios and/or allocation factors. The stock options were modified into HHH stock options and SEG stock options based on the applicable ratios and/or allocation factors. In addition, the growth targets for the RSAs based on Net Asset Value and related performance conditions were revised to carve out the impact of the Spinoff. Also, the market conditions related to Total Shareholder Return (TSR) targets were evaluated as of the Spinoff date for the TSR-based RSAs and then modified to time-based, service conditions only. See Note 13 - *Stock-Based Compensation Plans* for additional information.

The Company applies the provisions of ASC 718 *Stock Compensation* which requires all share-based payments to be recognized in the Consolidated Statements of Operations based on their fair values. The fair value of stock option awards is determined using the Black-Scholes option-pricing model. Restricted stock awards are valued using the market price of the Company's common stock on the grant date. For restricted stock awards with market conditions or performance conditions, the award is valued using a Monte Carlo simulation. The Company records compensation cost for stock-based compensation awards over the requisite service period. If the requisite service period is satisfied, compensation cost is not adjusted unless the award contains a performance condition. If an award contains a performance condition, expense is recognized only for those shares that ultimately vest using the per-share fair value measured at the grant date. The Company recognizes forfeitures as they occur.

#### Revenue Recognition and Related Matters
***Condominium Rights and Unit Sales Revenue from the sale of an individual unit in a condominium project is recognized at a point in time (i.e., the closing) when HHH satisfies the single performance obligation to construct a condominium project and transfers control of a completed unit to a buyer. The transaction price, which is the amount of consideration the Company receives upon delivery of the completed condominium unit to the buyer, is allocated to this single obligation and is received at closing less any amounts previously paid on deposit.***

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#### **TABLE OF CONTENTS**
The Company receives cash payments in the form of escrowed condominium deposits from customers who have contracted to purchase a condominium unit based on billing schedules established in HHH's condominium purchase agreement contracts. The amounts are recorded in Restricted cash until released from escrow in accordance with the escrow agreement and on approval of HHH's lender to fund construction costs of a project. A corresponding condominium contract deposit liability is established at the date of receipt, representing a portion of HHH's unsatisfied performance obligation at each reporting date.

These deposits, along with the balance of the contract value, are recognized at closing upon satisfaction of HHH's performance obligation and transfer of title to the buyer. Real estate project costs directly associated with a condominium project, which are HHH's costs to fulfill contracts with condominium buyers, are capitalized while all other costs are expensed as incurred. Total estimated project costs include direct costs such as the carrying value of the land, site planning, architectural, construction, and financing costs, as well as indirect cost allocations. The allocations include costs which clearly relate to the specific project, including certain infrastructure and amenity costs which benefit the project as well as others, and are based upon the relative sales value of the units. Furthermore, incremental costs incurred to obtain a contract to sell condominium units are evaluated for capitalization in accordance with ASC 340-40 *Components, Costs & Considerations*, with incremental costs to fulfill a contract only being capitalized if the costs relate directly to a specifically identified contract, enhance resources to satisfy performance obligations in the future, and are expected to be recovered.

***Master Planned Communities Land Sales Revenues from land sales are recognized at a point in time when the land sale closing process is complete. The transaction price generally has both fixed and variable components, with the fixed price stipulated in the contract and representative of a single performance obligation. See Builder Price Participation (BPP) below for a discussion of the variable component. The fixed transaction price, which is the amount of consideration received in full upon transfer of the land title to the buyer, is allocated to this single obligation and is received at closing of the land sale less any amounts previously paid on deposit.***

The Company receives cash payments in the form of land purchase deposits from homebuilders or other commercial buyers who have contracted to purchase land within the Company's MPCs, and HHH holds any escrowed deposits in Restricted cash or Cash and cash equivalents based on the terms of the contract. In situations where the Company has completed the closing of a developed land parcel or superpad and consideration is paid in full, but a portion of HHH's performance obligation relating to the enhancement of the land is still unsatisfied, revenue related to HHH's obligation is recognized over time. The Company recognizes only the portion of the improved land sale where the improvements are fully satisfied based on a cost input method. The aggregate amount of the transaction price allocated to the unsatisfied obligation is recorded as deferred land sales and is presented in Accounts payable and other liabilities. The Company measures HHH's unsatisfied obligation based on the costs remaining relative to the total cost at the date of closing.

When residential or commercial land is sold, the cost of sales includes actual costs incurred and estimates of future development costs benefiting the property sold. In accordance with ASC 970-360-30-1 *Real Estate Project Costs*, when land is sold, costs are allocated to each sold superpad or lot based upon the relative sales value. For purposes of allocating development costs, estimates of future revenues and development costs are re-evaluated throughout the year, with adjustments being allocated prospectively to the remaining parcels available for sale. For certain parcels of land, including acquired parcels that the Company does not intend to develop or for which development was complete at the date of acquisition, the specific identification method is used to determine the cost of sales.

***Builder Price Participation BPP is the variable component of the transaction price for certain Master Planned Communities land sales. BPP is earned when a developer that acquired land from HHH develops and sells a home to an end user at a price higher than a predetermined breakpoint. The excess over the breakpoint is shared between HHH and the developer at the time of closing on the sale of the home based on a previously agreed-upon percentage. Generally, BPP is constrained, and accordingly, the Company does not recognize an estimate of variable consideration. The Company's conclusion is based on the following factors:***

–<br> BPP is highly susceptible to factors outside HHH's influence such as unemployment and interest rates

–<br> the time between the sale of land to a homebuilder and closing on a completed home can take up to three years

–<br> there is significant variability in home pricing from period to period

F-49<br>

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The Company evaluates contracts with homebuilders with respect to BPP at each reporting period to determine whether a change in facts and circumstances has eliminated the constraint and will record an estimate of BPP revenue, if applicable.

For Condominium rights and unit sales, Master planned communities land sales, and Builder price participation the Company elected the practical expedient to not adjust promised amount of consideration for the effects of a significant financing component when the expected period between transfer of the promised asset and payment is one year or less.

#### Rental Revenues Revenue associated with the Company's operating assets includes minimum rent, percentage rent in lieu of fixed minimum rent, tenant recoveries, and overage rent.
Minimum rent revenues are recognized on a straight-line basis over the terms of the related leases when collectability is reasonably assured and the tenant has taken possession of, or controls, the physical use of the leased asset. Percentage rent in lieu of fixed minimum rent is recognized as sales are reported from tenants. Minimum rent revenues also include amortization related to above-market and below-market tenant leases on acquired properties.

Recoveries from tenants are stipulated in the leases, are generally computed based upon a formula related to real estate taxes, insurance, and other real estate operating expenses, and are generally recognized as revenues in the period the related costs are incurred.

If the lease provides for tenant improvements, the Company determines whether the tenant improvements are owned by the tenant or by HHH. When HHH is the owner of the tenant improvements, rental revenue begins when the improvements are substantially complete. When the tenant is the owner of the tenant improvements, any tenant allowance funded by the Company is treated as a lease incentive and amortized as an adjustment to rental revenue over the lease term.

***Other Land, Rental, and Property Revenues Other land revenues recognized over time include ground maintenance revenue, and homeowner association management fee revenue. These revenues are recognized over time, as time elapses. The amount of consideration and the duration are fixed, as stipulated in the related agreements, and represent a single performance obligation.***

Other land revenues also include transfer and advertising fees on the secondary sales of homes in MPCs, forfeitures of earnest money deposits by buyers of HHH's condominium units, lease termination fees, and other miscellaneous items. These items are recognized at a point in time when the real estate closing process is complete or HHH has a legal right to the respective fee or deposit.

Other rental revenues also includes overage rent which is recognized on an accrual basis once tenant sales exceed contractual thresholds contained in the lease and is calculated by multiplying the tenant sales in excess of the minimum amount by a percentage defined in the lease.

**Noncontrolling Interests As of December 31, 2025, and December 31, 2024, noncontrolling interests related to the 12% noncontrolling interest in Teravalis and the noncontrolling interest in the Ward Village Homeowners' Associations (HOAs). All revenues and expenses related to the HOAs are attributable to noncontrolling interests and do not impact net income attributable to common stockholders.** 

#### Recently Issued Accounting Standards The following is a summary of recently issued and other notable accounting pronouncements which relate to the Company's business.
**Accounting Standards Update 2024-03, Disaggregation of Income Statement Expenses This update requires the disclosure of additional disaggregated information in the notes to financial statements for certain categories of costs and expenses that are included on the face of the statement of operations. The new disclosure requirements are effective for annual periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its financial statement presentation and disclosures.** 

2. Pershing Square

**Common Share Issuance to Pershing Square On May 5, 2025, the Company entered into a Share Purchase Agreement (Purchase Agreement), by and between the Company and Pershing Square Holdco, L.P. (PS Holdco), pursuant to which the Company sold to PS Holdco 9,000,000 newly issued shares of the Company's common** 

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#### **TABLE OF CONTENTS**
stock at a purchase price of $100 per share, for an aggregate purchase price of $900 million (the Pershing Square Issuance). In connection with the Purchase Agreement, the Company also entered into several other agreements, dated May 5, 2025, with PS Holdco and Pershing Square Capital Management, L.P. (together, Pershing Square), including a Services Agreement, a Shareholder Agreement, a Standstill Agreement, and a Registration Rights Agreement.

As of December 31, 2025, Pershing Square beneficially owned approximately 46.9% of the Company's outstanding shares of common stock. The Company expects to use the proceeds from the transaction to acquire or make investments in operating companies as part of the Company's new strategy of becoming a diversified holding company.

***Transaction Costs The Company incurred $38.3 million in costs directly attributable to the Pershing Square Issuance. As required by the Purchase Agreement, these transaction costs included the reimbursement of $25.0 million of reasonable and documented expenses incurred by Pershing Square in connection with the negotiation and execution of the transaction. These reimbursement costs were treated as a reduction of the proceeds and recorded directly in Additional paid-in capital on the Consolidated Balance Sheets. The remaining $13.3 million of costs were incurred directly by the Company and included $12.2 million of costs attributable to the sale of common stock recognized in Additional paid-in capital and $1.1 million of costs which were expensed as incurred as General and administrative expenses in the Consolidated Statements of Operations.***

***Services Agreement Pursuant to the terms of the Services Agreement, Pershing Square will support the Company's new diversified holding company strategy by providing services to the Company, such as (i) investment advisory services, (ii) making recommendations with respect to hedging, balance sheet optimization and capital allocation, (iii) executing transactions, (iv) assisting the Company with business and corporate development functions, (v) making voting recommendations for the Company's investments, (vi) assisting with and advising on fundraising, (vii) monitoring operations of the Company and its investments, subject to the day-to-day authority and responsibility of management of the Company, (viii) providing recommendations for persons to serve as designees or deputies of the Chief Investment Officer, (ix) engaging and supervising third-party service providers, (x) making dividend payment recommendations, and (xi) providing other services as may be agreed upon. The Services Agreement will have an initial ten-year term and will have successive renewal terms of ten years.***

The Company will pay Pershing Square a quarterly base advisory fee of $3.75 million and a quarterly variable advisory fee equal to 0.375% of the excess value of the quarter-end stock price of the Company's common stock minus the reference price of $66.15, multiplied by the existing share count as of the transaction date, which will not increase with the issuance of new shares of common stock. The base fee and the reference share price are subject to annual adjustment based on the Core Personal Consumption Expenditures (PCE) Price Index. The total advisory fee recognized in General and administrative expenses in the Consolidated Statements of Operations was $17.1 million for the year ended December 31, 2025. As of December 31, 2025, the Consolidated Balance Sheets reflect accounts payable of $3.3 million due to Pershing Square with respect to the advisory fees.

**Potential Preferred Share Issuance to Pershing Square In December 2025, in association with the pending acquisition of Vantage, the Company entered into an equity commitment letter with Pershing Square Holdings, Ltd. under which Pershing Square committed to purchase up to $1.0 billion of the Company's preferred stock, prior to and contingent upon the closing of the Vantage acquisition. The preferred stock will be perpetual, non-voting (subject to customary protective rights), and will become convertible into the common stock of Vantage if not redeemed by the end of the seventh fiscal year post-transaction. The Company will have the right, but not the obligation, to repurchase the preferred stock during specified periods and upon certain triggering events. The Company is evaluating the accounting implications of the potential preferred stock issuance and will provide further disclosures upon execution of the transaction.** 

3. Discontinued Operations

On July 31, 2024, the Spinoff of SEG was completed. The Spinoff included all assets previously included in the Company's Seaport segment and the Las Vegas Aviators and the Las Vegas Ballpark, which were previously included in the Operating Assets segment. As the Spinoff represents a strategic shift in the Company's operations, the results of SEG are included as discontinued operations for all periods presented.

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The following table presents key components of Net income (loss) from discontinued operations, net of income taxes, for the years ended December 31:

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| | | |
|:---|:---|:---|
| *thousands* | **2024** | **2023**  |
| Total revenues | &nbsp;&nbsp;&nbsp;$60846  | $115349  |
| Total operating expenses | &nbsp;&nbsp;&nbsp;&nbsp;88381  | &nbsp;&nbsp;&nbsp;133767  |
| General and administrative<sup>(a)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;32535  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4522  |
| Depreciation and amortization | &nbsp;&nbsp;&nbsp;&nbsp;16717  | &nbsp;&nbsp;&nbsp;&nbsp;47384  |
| Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81  |
| Provision for impairment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;(672492)  |
| Other income (loss), net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(67)  | &nbsp;&nbsp;&nbsp;&nbsp;(1539)  |
| Interest income (expense), net | &nbsp;&nbsp;&nbsp;&nbsp;(7414)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;874  |
| Gain (loss) on extinguishment of debt | &nbsp;&nbsp;&nbsp;&nbsp;(1563)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(47)  |
| Equity in earnings (losses) from unconsolidated ventures | &nbsp;&nbsp;&nbsp;(18960)  | &nbsp;&nbsp;&nbsp;(81484)  |
| Net income (loss) from discontinued operations before income taxes | &nbsp;&nbsp;(104791)  | &nbsp;&nbsp;(825093)  |
| Income tax expense (benefit) | &nbsp;&nbsp;&nbsp;(16568)  | &nbsp;&nbsp;(190153)  |
| Net income (loss) from discontinued operations, net of taxes | $(88223)  | $(634940) |

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(a)<br> General and administrative expenses relate to costs incurred to complete the spinoff of Seaport Entertainment.

**Continuing Involvement with SEG In connection with the Spinoff, HHH entered into several agreements with Seaport Entertainment that governed the execution of the transaction and the relationship of the parties following the Spinoff including a Separation and Distribution Agreement, Transition Services Agreement, Tax Matters Agreement, Employee Matters Agreement, Guaranty Agreement, and various other agreements. All agreements expired on August 1, 2025, and as such, HHH has no continuing obligations to or from SEG under these agreements.** 

***Seaport Entertainment Guaranty Following the execution of the Spinoff, HHH provided a full backstop guaranty for SEG's outstanding mortgage related to its 250 Water Street property (SEG Term Loan). On February 6, 2026, SEG announced that it had closed the sale of its 250 Water Street property. As part of the transaction, SEG repaid the SEG Term Loan in full and HHH was released from the related backstop guaranty. See Note 12 - Commitments and Contingencies for additional information.***

4. Investments in Unconsolidated Ventures

In the normal course of business, the Company enters into partnerships and ventures with an emphasis on investments associated with the development and operation of real estate assets. As of December 31, 2025, the Company does not consolidate the investments below as it does not have a controlling financial interest in these ventures. As such, the Company primarily reports its interests in accordance with the equity method. As of December 31, 2025, these ventures had debt totaling $434.0 million, with the Company's proportionate share of this debt totaling $215.5 million. All of this indebtedness is without recourse to the Company, with the exception of the collateral maintenance obligation for Floreo. See Note 12 - *Commitments and Contingencies* for additional information related to the Company's collateral maintenance obligation.

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Investments in unconsolidated ventures consist of the following:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ownership Interest<sup>(a)</sup>** | **Ownership Interest<sup>(a)</sup>** | **Carrying Value** | **Carrying Value** | **Share of Earnings/Dividends**  | **Share of Earnings/Dividends**  | **Share of Earnings/Dividends**  |
| *thousands except percentages* | **December 31,**<br>**2025** | **December 31,**<br>**2024** | **December 31,**<br>**2025** | **December 31,**<br>**2024** | **Year Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
| *thousands except percentages* | **December 31,**<br>**2025** | **December 31,**<br>**2024** | **December 31,**<br>**2025** | **December 31,**<br>**2024** | **2025** | **2024** | **2023** |
| **Equity Method Investments**<br>|  |  |  |  |  |  |  |
| **Operating Assets**<br>|  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating equity investments<sup>(b)</sup> | **Various**  | Various | &nbsp;&nbsp;**$10649**  | &nbsp;&nbsp;&nbsp;$7036 | &nbsp;&nbsp;**$(776)** | &nbsp;&nbsp;&nbsp;$2577 | &nbsp;&nbsp;&nbsp;&nbsp;$(64)  |
| **Master Planned Communities**<br>|  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;The Summit<sup>(c)</sup> | **50.0%** | 50.0% | &nbsp;&nbsp;&nbsp;**35815**  | &nbsp;&nbsp;&nbsp;37409  | &nbsp;&nbsp;**(1594)** | &nbsp;&nbsp;(16807) | &nbsp;&nbsp;24787  |
| &nbsp;&nbsp;&nbsp;Floreo<sup>(d)</sup> | **50.0%** | 50.0% | &nbsp;&nbsp;&nbsp;**59008** | &nbsp;&nbsp;&nbsp;60788 | &nbsp;&nbsp;**(1780)** | &nbsp;&nbsp;&nbsp;&nbsp;4908 | &nbsp;&nbsp;(2121)  |
| **Strategic Developments**<br>|  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;West End Alexandria<sup>(c)</sup> | **58.3%** | 58.3% | &nbsp;&nbsp;&nbsp;**60830** | &nbsp;&nbsp;&nbsp;60513 | &nbsp;&nbsp;&nbsp;&nbsp;**317** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;256  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;139  |
| &nbsp;&nbsp;&nbsp;Other | **50.0%** | 50.0% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2  |
|  |  |  | &nbsp;&nbsp;**166343** | &nbsp;&nbsp;165787 | &nbsp;&nbsp;**(3833)** | &nbsp;&nbsp;&nbsp;(9071) | &nbsp;&nbsp;22743  |
| **Other investments<sup>(e)</sup>** |  |  | &nbsp;&nbsp;&nbsp;&nbsp;**3779** | &nbsp;&nbsp;&nbsp;&nbsp;3779 | &nbsp;&nbsp;&nbsp;**5605** | &nbsp;&nbsp;&nbsp;&nbsp;3242 | &nbsp;&nbsp;&nbsp;3033  |
| **Investments in unconsolidated ventures** |  |  | &nbsp;&nbsp;**$170122** | &nbsp;&nbsp;$169566 | **$1772** | $(5829) | $25776 |

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(a)<br> Ownership interests presented reflect the Company's stated ownership interest or if applicable, the Company's final profit-sharing interest after receipt of any preferred returns based on the venture's distribution priorities.

(b) Two of the operating equity investments were in a combined deficit position of $23.8 million at December 31, 2025, and $18.0 million at December 31, 2024, and presented in Accounts payable and other liabilities on the Consolidated Balance Sheets. 

(c) For these equity method investments, various provisions in the venture operating agreements regarding distributions of cash flow based on capital account balances, allocations of profits and losses, and preferred returns may result in the Company's economic interest differing from its stated interest or final profit-sharing interest. For these investments, the Company recognizes income or loss based on the venture's distribution priorities, which could fluctuate over time and may be different from its stated ownership or final profit-sharing interest. 

(d)<br> Classified as a VIE; however, the Company is not the primary beneficiary and accounts for its investment in accordance with the equity method. Refer to discussion below for additional information.

(e) Other investments represent investments not accounted for under the equity method. There were no impairments, or upward or downward adjustments to the carrying amounts of these securities either during current year or cumulatively. 

**The Summit In 2015, the Company formed DLV/HHPI Summerlin, LLC (The Summit) with Discovery Land Company (Discovery) to develop a custom home community in Summerlin. The Company contributed land for Phase I in 2015 and initially received distributions and recognized its share of income or loss based on the joint venture's distribution priorities. The Company has now received all of its preferred return distributions, and recognizes its share of income or loss for Phase I based on its final profit-sharing interest.** 

In July 2022, the Company contributed an additional 54 acres to The Summit (Phase II land). The Phase II land is adjacent to the existing Summit development and includes approximately 28 custom home sites. The first lot sales closed in the first quarter of 2023. The Company will receive distributions and recognize its share of income or loss for Phase II based on the joint venture's distribution priorities in the amended Summit LLC agreement, which could fluctuate over time. Upon receipt of preferred returns to HHH, distributions and recognition of income or loss will be allocated to the company based on its final profit-sharing interest.

**Floreo In the fourth quarter of 2021, simultaneous with the Teravalis land acquisition, the Company closed on the acquisition of a 50% interest in Trillium Development Holding Company, LLC (Floreo) and entered into an LLC Agreement with JDM Partners and El Dorado Holdings to develop the first village within the new Teravalis MPC on 3,029 acres of land in the greater Phoenix, Arizona area. The first land sales closed in the first quarter of 2024.** 

In October 2022, Floreo closed on a $165.0 million bond financing. In February 2025, the borrowing capacity on the bond increased to $365.0 million. Outstanding borrowings as of December 31, 2025, were $242.0 million.

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The Company provided a guaranty on this financing in the form of a collateral maintenance obligation and received an initial guaranty fee of $5.0 million and will receive an additional guaranty fee of $6.0 million associated with the increased borrowing capacity. The financing and related guaranty provided by the Company triggered a reconsideration event, and as of December 31, 2022, Floreo was classified as a VIE. Due to rights held by other members, the Company does not have a controlling financial interest in Floreo and is not the primary beneficiary. As of December 31, 2025, the Company's maximum exposure to loss as a result of this investment is limited to the $59.0 million aggregate carrying value as the Company has not made any other firm commitments to fund amounts on behalf of this VIE, and cash collateral that the Company may be obligated to post related to its collateral maintenance obligation. See Note 12 - *Commitments and Contingencies* for additional information related to the Company's collateral maintenance obligation.

**West End Alexandria In the fourth quarter of 2021, the Company entered into an Asset Contribution Agreement with Landmark Land Holdings, LLC (West End Alexandria) to redevelop a site previously known as Landmark Mall. Other equity owners include Foulger-Pratt Development, LLC (Foulger-Pratt) and Seritage SRC Finance (Seritage). In exchange for equity interests in West End Alexandria, the Company conveyed its Landmark Mall property, Seritage conveyed additional land, and Foulger-Pratt contributed cash consideration.** 

Development plans for the 41-acre property include approximately four million square feet of residential, retail, commercial, and entertainment offerings integrated into a cohesive neighborhood with a central plaza and a network of parks and public transportation. Foulger-Pratt manages construction of the development. Demolition was completed in 2023, with completion of infrastructure work expected in 2026.

The Company does not have the ability to control the activities that most impact the economic performance of the venture as Foulger-Pratt is the managing member and manages all development activities. As such, the Company accounts for its ownership interest in accordance with the equity method.

**Summarized Financial Information The following tables provide combined summarized financial statement information for the Company's unconsolidated ventures. Financial statement information is included for each investment for all periods in which the Company's ownership interest was accounted for as an equity method investment.** 

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| | | |
|:---|:---|:---|
| *thousands* | **December 31, 2025** | **December 31, 2024**  |
| **Consolidated Balance Sheets**<br>|  |  |
| Total Assets | &nbsp;&nbsp;&nbsp;&nbsp;$952501 | &nbsp;&nbsp;&nbsp;&nbsp;$879908  |
| Total Liabilities | &nbsp;&nbsp;&nbsp;&nbsp;599167 | &nbsp;&nbsp;&nbsp;&nbsp;526320  |
| Total Equity | &nbsp;&nbsp;&nbsp;&nbsp;353334 | &nbsp;&nbsp;&nbsp;&nbsp;353588 |

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
| <br>*thousands* | **2025** | **2024** | **2023**  |
| **Consolidated Statements of Operations** <br>|  |  |  |
| Revenues | $191463  | $219766  | $347084  |
| Operating Income | &nbsp;&nbsp;&nbsp;25293  | &nbsp;&nbsp;&nbsp;35545  | &nbsp;&nbsp;&nbsp;75099  |
| Net income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;9893  | &nbsp;&nbsp;&nbsp;20987  | &nbsp;&nbsp;&nbsp;55006 |

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5. Acquisitions and Dispositions

#### Acquisitions
***Strategic Developments In May 2025, the Company acquired the 7 Waterway office property and the adjacent parking garage for $16.3 million in an asset acquisition. The approximately 186,369 square-foot office property is located in The Woodlands.***

***Operating Assets In June 2024, the Company acquired the 6 Waterway (formerly Waterway Plaza II) office property and the adjacent parking garage for $19.2 million in an asset acquisition. The approximately 141,763-square-foot office property is located in The Woodlands.***

**Dispositions Gains and losses on asset dispositions are recorded to Gain (loss) on sale or disposal of real estate and other assets, net in the Consolidated Statements of Operations, unless otherwise noted.** 

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#### **TABLE OF CONTENTS**
***Strategic Developments The Grogan's Mill Library and Community Center was developed in connection with a land swap agreement entered into with Montgomery County, Texas. In July 2025, upon completion of construction, the Company transferred the Grogan's Mill Library and Community Center to Montgomery County in exchange for a land parcel on the Waterway in The Woodlands (Town Green), resulting in a gain of $10.1 million. Town Green was measured at fair value and is held in the strategic segment for future development. See Note 10 - Fair Value for additional information.***

***Operating Assets In September 2025, the Company completed the sale of two land parcels, which included a 6,890 square foot retail space, in Ward Village for total proceeds of $6.0 million, resulting in a gain of $4.4 million.***

In January 2025, the Company completed the sale of two land parcels, which included a 13,870 square foot retail space, in Ward Village for total consideration of $12.2 million, resulting in a gain of $10.0 million.

During 2024, the Company completed the sale of four non-core ground leases in The Woodlands, for total proceeds of $9.6 million, resulting in a gain of $6.7 million.

In December 2024, the Company completed the sale of Lakeland Village Center at Bridgeland, a 67,947-square-foot retail property in Bridgeland, for $28.0 million, resulting in a gain of $11.4 million.

In February 2024, the Company completed the sale of Creekside Park Medical Plaza, a 32,689-square-foot medical office building in The Woodlands, for $14.0 million, resulting in a gain of $4.8 million.

In December 2023, the Company completed the sale of Memorial Hermann Medical Office, a 20,000-square-foot medical office building in The Woodlands, for $9.6 million, resulting in a gain of $3.2 million.

In July 2023, the Company completed the sale of two self-storage facilities with a total of 1,370 storage units in The Woodlands, for $30.5 million, resulting in a gain of $16.1 million.

In March 2023, the Company completed the sale of two land parcels in Honolulu, including an 11,929-square-foot building at the Ward Village Retail property, for total consideration of $6.3 million, resulting in a gain of $4.7 million.

6. Impairment

The Company reviews its long-lived assets for potential impairment indicators when events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment or disposal of long-lived assets in accordance with ASC 360 *Property, Plant, and Equipment*, requires that if impairment indicators exist and expected undiscounted cash flows generated by the asset over an anticipated holding period are less than its carrying amount, an impairment provision should be recorded to write down the carrying amount of the asset to its fair value. The impairment analysis does not consider the timing of future cash flows and whether the asset is expected to earn an above- or below-market rate of return. No impairment charges were recorded in continuing operations during the three years ended December 31, 2025, 2024, and 2023.

The Company periodically evaluates strategic alternatives with respect to each property and may revise the strategy from time to time, including the intent to hold the asset on a long-term basis or the timing of potential asset dispositions. For example, the Company may decide to sell property that is held for use, and the sale price may be less than the carrying amount. As a result, changes in strategy could result in impairment charges in future periods.

The Company evaluates each investment in an unconsolidated venture discussed in Note 4 - *Investments in Unconsolidated Ventures* periodically for recoverability and valuation declines that are other-than-temporary. If the decrease in value of an investment is deemed to be other-than-temporary, the investment is reduced to its estimated fair value. No impairment charges were recorded in continuing operations during the three years ended December 31, 2025, 2024, and 2023.

In 2023, the Company recorded a $709.5 million impairment charge related to the Seaport segment, which is now reported in discontinued operations following the Spinoff.

F-55<br>

------

7. Other Assets and Liabilities

#### Other Assets, Net The following table summarizes the significant components of Other assets, net as of December 31:

---

| | | |
|:---|:---|:---|
| *thousands* | **2025** | **2024**  |
| Special Improvement District receivable, net  | &nbsp;&nbsp;**$90417**  | &nbsp;&nbsp;$97432  |
| &nbsp;&nbsp;Security, escrow, and other deposits  | &nbsp;&nbsp;&nbsp;**54608**  | &nbsp;&nbsp;&nbsp;66348  |
| In-place leases, net  | &nbsp;&nbsp;&nbsp;**28486**  | &nbsp;&nbsp;&nbsp;32995  |
| Prepaid expenses  | &nbsp;&nbsp;&nbsp;**19669**  | &nbsp;&nbsp;&nbsp;22791  |
| Tenant incentives and other receivables, net  | &nbsp;&nbsp;&nbsp;**15259**  | &nbsp;&nbsp;&nbsp;12567  |
| Other  | &nbsp;&nbsp;&nbsp;&nbsp;**11934**  | &nbsp;&nbsp;&nbsp;28433  |
| Intangibles, net  | &nbsp;&nbsp;&nbsp;&nbsp;**7930**  | &nbsp;&nbsp;&nbsp;&nbsp;3359  |
| TIF receivable, net  | &nbsp;&nbsp;&nbsp;&nbsp;**4012**  | &nbsp;&nbsp;&nbsp;&nbsp;4340  |
| Condominium inventory  | &nbsp;&nbsp;&nbsp;&nbsp;**3937**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;525  |
| Interest rate derivative assets  | &nbsp;&nbsp;&nbsp;&nbsp;**3113**  | &nbsp;&nbsp;&nbsp;&nbsp;9082  |
| Notes receivable, net  | &nbsp;&nbsp;&nbsp;&nbsp;**2932**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;870  |
| Net investment in lease receivable  | &nbsp;&nbsp;&nbsp;&nbsp;**2781**  | &nbsp;&nbsp;&nbsp;&nbsp;2809  |
| **Other assets, net** | **$245078**  | $281551 |

---

#### Accounts Payable and Other Liabilities The following table summarizes the significant components of Accounts payable and other liabilities as of December 31:

---

| | | |
|:---|:---|:---|
| *thousands* | **2025** | **2024**  |
| Condominium deposit liabilities  | &nbsp;&nbsp;**$748795**  | &nbsp;&nbsp;$459683  |
| Construction payables  | &nbsp;&nbsp;&nbsp;&nbsp;**263845**  | &nbsp;&nbsp;&nbsp;&nbsp;252619  |
| Deferred income  | &nbsp;&nbsp;&nbsp;&nbsp;**166121**  | &nbsp;&nbsp;&nbsp;&nbsp;125784  |
| Accounts payable and accrued expenses  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**69023**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48317  |
| MUD sale liability  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**64364**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19468  |
| Tenant and other deposits  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**59736**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47112  |
| Accrued interest  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**50800**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51828  |
| Accrued real estate taxes  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**35311**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29284  |
| Accrued payroll and other employee liabilities  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**31452**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32154  |
| Other  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27911**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28188  |
| Interest rate derivative liabilities  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**689**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| **Accounts payable and other liabilities** | **$1518047**  | $1094437 |

---

8. Intangibles

The following table summarizes the Company's intangible assets and liabilities:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2024**  | **As of December 31, 2024**  | **As of December 31, 2024**  |
| <br>*thousands* | **Gross Asset** <br>(Liability) | **Accumulated** <br>**(Amortization)/** <br>**Accretion** | **Net Carrying** <br>**Amount** | **Gross Asset** <br>(Liability) | **Accumulated** <br>**(Amortization)/** <br>**Accretion** | **Net Carrying** <br>**Amount**  |
| Intangible Assets: <br>|  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other intangibles | &nbsp;&nbsp;**$8052**  | &nbsp;&nbsp;&nbsp;**$(2615)**  | &nbsp;&nbsp;**$5437**  | &nbsp;&nbsp;$4526  | &nbsp;&nbsp;&nbsp;$(1324)  | &nbsp;&nbsp;$3202  |
| &nbsp;&nbsp;&nbsp;Goodwill | &nbsp;&nbsp;&nbsp;**2336**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;**2336**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;Indefinite lived intangibles | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**157**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**157**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;157  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;157  |
| Tenant leases: <br>|  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;In-place value | &nbsp;&nbsp;**54008**  | &nbsp;&nbsp;&nbsp;**(25522)**  | &nbsp;&nbsp;**28486**  | &nbsp;&nbsp;56019  | &nbsp;&nbsp;&nbsp;(23024)  | &nbsp;&nbsp;32995  |
| &nbsp;&nbsp;&nbsp;Above-market | &nbsp;&nbsp;&nbsp;**1053**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(475)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**578**  | &nbsp;&nbsp;&nbsp;1281  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(395)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;886  |
| &nbsp;&nbsp;&nbsp;Below-market | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—**  | &nbsp;&nbsp;&nbsp;&nbsp;(627)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;627  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Total indefinite lived intangibles |  |  | &nbsp;&nbsp;**$2493**  |  |  | &nbsp;&nbsp;$157  |
| Total amortizing intangibles |  |  | &nbsp;&nbsp;**$34501**  |  |  | &nbsp;&nbsp;$37083 |

---

F-56<br>

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#### **TABLE OF CONTENTS**
Other intangibles includes trademark and trade name intangibles related to MPCs as well as internally developed software. These intangibles are included in Other assets, net and are amortized on a straight-line basis over the estimated useful life of the asset. The tenant in-place, above-market, and below-market lease intangible assets resulted from real estate acquisitions. The in-place value and above-market value of tenant leases are included in Other assets, net and are amortized over periods that approximate the related lease terms. The below-market tenant leases are included in Accounts payable and other liabilities and are amortized over the remaining non-cancelable terms of the respective leases. See Note 7 - *Other Assets and Liabilities* for additional information regarding Other assets, net and Accounts payable and other liabilities.

Net amortization and accretion expense for these intangible assets and liabilities was $5.2 million in 2025, $4.6 million in 2024, and $4.3 million in 2023.

Future net amortization and accretion expense is estimated for each of the five succeeding years as shown below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *thousands* | **2026** | **2027** | **2028** | **2029** | **2030**  |
| Net amortization and accretion expense | $5793  | $5173  | $5064  | $5025  | $5014 |

---

9. Mortgages, Notes, and Loans Payable, Net

#### Mortgages, Notes, and Loans Payable All mortgages, notes, and loans payable of HHH are held by HHC and its subsidiaries.

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| <br>*thousands* | **2025** | **2024**  |
| **Fixed-rate debt**<br>|  |  |
| &nbsp;&nbsp;&nbsp;Senior unsecured notes | **$2050000**  | $2050000  |
| &nbsp;&nbsp;&nbsp;Secured mortgages payable | &nbsp;&nbsp;**1793561**  | &nbsp;&nbsp;1635750  |
| &nbsp;&nbsp;&nbsp;Special Improvement District bonds | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**80294**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83779  |
| **Variable-rate debt<sup>(a)</sup>**<br>|  |  |
| &nbsp;&nbsp;&nbsp;Secured Bridgeland Notes | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**85000**  | &nbsp;&nbsp;&nbsp;&nbsp;283000  |
| &nbsp;&nbsp;&nbsp;Secured mortgages payable | &nbsp;&nbsp;**1135359**  | &nbsp;&nbsp;1115908  |
| Unamortized deferred financing costs<sup>(b)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;**(34386)**  | &nbsp;&nbsp;&nbsp;&nbsp;(40968)  |
| Mortgages, notes, and loans payable, net | **$5109828**  | $5127469 |

---

(a)<br> The Company has entered into derivative instruments to manage the variable interest rate exposure. See Note 11 - *Derivative Instruments and Hedging Activities* for additional information.

(b)<br> Deferred financing costs are amortized to interest expense over the initial contractual term of the respective financing agreements using the effective interest method (or other methods which approximate the effective interest method).

As of December 31, 2025, land, buildings and equipment, developments, and other collateral with a net book value of $4.8 billion have been pledged as collateral for the Company's debt obligations. Senior unsecured notes totaling $2.1 billion and $52.1 million of secured mortgages payable are recourse to the Company.

***Senior Unsecured Notes During 2020 and 2021, the Company issued $2.1 billion of aggregate principal of senior unsecured notes. These notes have fixed rates of interest that are payable semi-annually and are interest only until maturity. The following table summarizes the Company's senior unsecured notes by issuance date:***

---

| | | | |
|:---|:---|:---|:---|
| *$ in thousands* | **Principal** | **Maturity Date** | **Interest Rate**  |
| August 2020 | &nbsp;&nbsp;$750000  | August 2028 | &nbsp;&nbsp;&nbsp;&nbsp;5.375%  |
| February 2021 | &nbsp;&nbsp;&nbsp;&nbsp;650000  | February 2029 | &nbsp;&nbsp;&nbsp;&nbsp;4.125%  |
| February 2021 | &nbsp;&nbsp;&nbsp;&nbsp;650000  | February 2031 | &nbsp;&nbsp;&nbsp;&nbsp;4.375%  |
| Senior unsecured notes | $2050000  |  |  |

---

On February 17, 2026, HHC, the Company's wholly owned subsidiary, issued $500.0 million of 5.875% senior unsecured notes due 2032 and $500.0 million of 6.125% senior unsecured notes due 2034 (collectively the New Notes). The New Notes will pay interest semi-annually, in each case payable on March 1 and September 1 of

F-57<br>

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#### **TABLE OF CONTENTS**
each year, beginning on September 1, 2026. HHC used the net proceeds to redeem its outstanding $750.0 million 5.375% senior unsecured notes due 2028, including the payment of premiums, accrued and unpaid interest and expenses related to such redemption, and will use the remaining proceeds for general corporate purposes.

The New Notes were offered in a private placement, solely to persons reasonably believed to be qualified institutional buyers. The New Notes have not been, and will not be, registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

***Secured Mortgages Payable The Company's outstanding mortgages are collateralized by certain of the Company's real estate assets. Certain of the Company's loans contain provisions that grant the lender a security interest in the operating cash flow of the property that represents the collateral for the loan. Certain mortgage notes may be prepaid subject to a prepayment penalty equal to a yield maintenance premium, defeasance, or a percentage of the loan balance. Construction loans related to the Company's development properties are generally variable-rate, interest-only, and have maturities of five years or less. Debt obligations related to the Company's operating properties generally require monthly installments of principal and interest.***

The following table summarizes the Company's secured mortgages payable:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024**  | **December 31, 2024**  | **December 31, 2024**  | **December 31, 2024**  |
| <br>*$ in thousands* | **Principal** | **Range of** <br>**Interest Rates** | **Weighted-**<br>**average** <br>**Interest Rate** | **Weighted-**<br>**average** <br>**Years to** <br>**Maturity** | **Principal** | **Range of** <br>**Interest Rates** | **Weighted-**<br>**average** <br>**Interest Rate** | **Weighted-**<br>**average** <br>**Years to** <br>**Maturity** |
| Fixed rate<sup>(a)</sup> | **$1793561** | **3.13% - 8.67%** | &nbsp;&nbsp;&nbsp;&nbsp;4.91% | &nbsp;&nbsp;&nbsp;&nbsp;5.1 | $1635750  | 3.13% - 8.67% | &nbsp;&nbsp;&nbsp;&nbsp;4.74% | &nbsp;&nbsp;&nbsp;&nbsp;5.8  |
| Variable rate<sup>(b)</sup> | &nbsp;&nbsp;**1135359** | **5.77% - 8.87%** | &nbsp;&nbsp;&nbsp;&nbsp;7.34% | &nbsp;&nbsp;&nbsp;&nbsp;1.3 | &nbsp;&nbsp;1115908  | 6.43% - 9.42% | &nbsp;&nbsp;&nbsp;&nbsp;7.67% | &nbsp;&nbsp;&nbsp;&nbsp;1.7  |
| &nbsp;&nbsp;Secured mortgages payable  | **$2928920** | **3.13% - 8.87%** | &nbsp;&nbsp;&nbsp;&nbsp;5.85% | &nbsp;&nbsp;&nbsp;&nbsp;3.6 | $2751658  | 3.13% - 9.42% | &nbsp;&nbsp;&nbsp;&nbsp;5.93% | &nbsp;&nbsp;&nbsp;&nbsp;4.1 |

---

(a)<br> Interest rates presented are based upon the coupon rates of the Company's fixed-rate debt obligations.

(b)<br> Interest rates presented are based on the applicable reference interest rates as of December 31, 2025 and 2024, excluding the effects of interest rate derivatives.

The Company has entered into derivative instruments to manage its variable interest rate exposure. The weighted-average interest rate of the Company's variable-rate mortgages payable, inclusive of interest rate derivatives, was 7.15% as of December 31, 2025, and 7.02% as of December 31, 2024. See Note 11 - *Derivative Instruments and Hedging Activities* for additional information.

The Company's secured mortgages mature over various terms through September 2052. On certain of its debt obligations, the Company has the option to exercise extension options, subject to certain terms, which may include minimum debt service coverage, minimum occupancy levels or condominium sales levels, as applicable, and other performance criteria. In certain cases, due to property performance not meeting identified covenants, the Company may be required to pay down a portion of the loan to exercise the extension option.

During 2025, the Company's mortgage activity included draws on existing mortgages of $573.5 million, refinancings of $184.2 million, and repayments of $365.7 million. As of December 31, 2025, the Company's secured mortgage loans had $686.6 million of undrawn lender commitment available to be drawn for property development, subject to certain restrictions.

***Special Improvement District Bonds The Summerlin MPC uses SID bonds to finance certain common infrastructure improvements. These bonds are issued by the municipalities and are secured by the assessments on the land. The majority of proceeds from each bond issued is held in a construction escrow and disbursed to the Company as infrastructure projects are completed, inspected by the municipalities, and approved for reimbursement. Accordingly, the SID bonds have been classified as debt, and the Summerlin MPC pays the debt service on the bonds semi-annually. As Summerlin sells land, the buyers assume a proportionate share of the bond obligation at closing, and the residential sales contracts provide for the reimbursement of the principal amounts that the Company previously paid with respect to such proportionate share of the bond. These bonds***

F-58<br>

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bear interest at fixed rates ranging from 4.13% to 6.50% with maturities ranging from 2030 to 2055 as of December 31, 2025, and fixed rates ranging from 4.13% to 6.05% with maturities ranging from 2025 to 2054 as of December 31, 2024. For the year ended December 31, 2025, $16.4 million in SID bonds were issued and obligations of $17.7 million were assumed by buyers.

***Secured Bridgeland Notes The Company's $600.0 million secured notes mature in 2029 and are secured by MUD receivables and land in Bridgeland. The loan requires a 10% fully refundable deposit on the outstanding balance and has an interest rate of 6.06%. In the second quarter of 2025, $198.0 million was repaid using the proceeds from the sale of MUD receivables, bringing outstanding borrowings to $85.0 million as of December 31, 2025.***

***Debt Compliance On certain of its debt obligations, the Company has the option to exercise extension options, subject to certain terms, which may include minimum debt service coverage, minimum occupancy levels or condominium sales levels, as applicable, and other performance criteria. In certain cases, due to property performance not meeting identified covenants, the Company may be required to pay down a portion of the loan to exercise the extension option.***

As of December 31, 2025, the Company was not in compliance with certain property-level debt covenants due to not meeting certain debt service coverage ratios caused by lease expirations, vacancies, rent abatements, and other factors. As a result, the excess net cash flow after debt service from the underlying properties became restricted. While the restricted cash could not be used for general corporate purposes, it could be used to fund operations of the underlying assets, and therefore there was no material impact on the Company's liquidity or its ability to operate these assets.

#### Scheduled Maturities The following table summarizes the contractual obligations relating to the Company's mortgages, notes, and loans payable as of December 31, 2025:

---

| | |
|:---|:---|
| *thousands* | **Mortgages, notes, and** <br>**loans payable** <br>**principal payments**  |
| 2026 | &nbsp;&nbsp;&nbsp;&nbsp;$663243  |
| 2027 | &nbsp;&nbsp;&nbsp;&nbsp;507661  |
| 2028<sup>(a)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;923362  |
| 2029 | &nbsp;&nbsp;&nbsp;&nbsp;1075975  |
| 2030 | &nbsp;&nbsp;&nbsp;&nbsp;277225  |
| Thereafter<sup>(a)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;1696748  |
| Total principal payments | &nbsp;&nbsp;&nbsp;&nbsp;5144214  |
| Unamortized deferred financing costs | &nbsp;&nbsp;&nbsp;&nbsp;(34386)  |
| Mortgages, notes, and loans payable | &nbsp;&nbsp;&nbsp;&nbsp;$5109828 |

---

(a) Subsequent to year end, on February 17, 2026, HHC, the Company's wholly owned subsidiary, issued $500.0 million of 5.875% senior unsecured notes due 2032 and $500.0 million of 6.125% senior unsecured notes due 2034. HHC used the net proceeds to redeem its outstanding $750.0 million 5.375% senior unsecured notes due 2028, including premiums, accrued and unpaid interest and related expenses, and will use the remaining proceeds for general corporate purposes. 

10. Fair Value

ASC 820, *Fair Value Measurement* (ASC 820), emphasizes that fair value is a market-based measurement that should be determined using assumptions market participants would use in pricing an asset or liability. The standard establishes a hierarchical disclosure framework that prioritizes and ranks the level of market price observability used in measuring assets or liabilities at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the asset or liability. Assets or liabilities with readily available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

F-59<br>

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#### **TABLE OF CONTENTS**
The following table presents the fair value measurement hierarchy levels required under ASC 820 for the Company's assets and liabilities that are measured at fair value on a recurring basis.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025**<br>**Fair Value Measurements Using** | **December 31, 2025**<br>**Fair Value Measurements Using** | **December 31, 2025**<br>**Fair Value Measurements Using** | **December 31, 2025**<br>**Fair Value Measurements Using** | December 31, 2024<br>Fair Value Measurements Using  | December 31, 2024<br>Fair Value Measurements Using  | December 31, 2024<br>Fair Value Measurements Using  | December 31, 2024<br>Fair Value Measurements Using  |
| *thousands* | **Total** | **Quoted Prices** <br>**in Active** <br>**Markets for** <br>**Identical Assets** <br>**(Level 1)** | **Significant** <br>**Other** <br>**Observable** <br>**Inputs** <br>**(Level 2)** | **Significant** <br>**Unobservable** <br>**Inputs** <br>**(Level 3)** | Total | Quoted Prices <br>in Active <br>Markets for <br>Identical Assets <br>(Level 1) | Significant <br>Other <br>Observable <br>Inputs <br>(Level 2) | Significant <br>Unobservable <br>Inputs <br>(Level 3) |
| Interest rate derivative assets | **$3113** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | &nbsp;&nbsp;**$3113** | &nbsp;&nbsp;&nbsp;&nbsp;$— | $9082 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | $9082 | &nbsp;&nbsp;&nbsp;&nbsp;$—  |
| Interest rate derivative liabilities | &nbsp;&nbsp;&nbsp;&nbsp;**689** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;**689** | &nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;— |

---

The fair values of interest rate derivatives are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates derived from observable market interest rate curves.

The estimated fair values of the Company's financial instruments that are not measured at fair value on a recurring basis are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2025** | **December 31, 2025** | December 31, 2024  | December 31, 2024  |
| *thousands* | **Fair Value** <br>**Hierarchy** | **Carrying** <br>**Amount** | **Estimated** <br>**Fair Value** | Carrying<br>Amount | Estimated <br>Fair Value  |
| Assets:<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash, cash equivalents, and restricted cash | Level 1 | **$2097158**  | **$2097158**  | &nbsp;&nbsp;$998503  | &nbsp;&nbsp;$998503  |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net<sup>(a)</sup> | Level 3 | &nbsp;&nbsp;&nbsp;&nbsp;**134122**  | &nbsp;&nbsp;&nbsp;&nbsp;**134122**  | &nbsp;&nbsp;&nbsp;&nbsp;105185  | &nbsp;&nbsp;&nbsp;&nbsp;105185  |
| &nbsp;&nbsp;&nbsp;Notes receivable, net<sup>(b)</sup> | Level 3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2932**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2932**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;870  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;870  |
| Liabilities:<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fixed-rate debt<sup>(c)</sup> | Level 2 | &nbsp;&nbsp;**3923855**  | &nbsp;&nbsp;**3794729**  | &nbsp;&nbsp;3769529  | &nbsp;&nbsp;3495298  |
| &nbsp;&nbsp;&nbsp;Variable-rate debt<sup>(c)</sup> | Level 2 | &nbsp;&nbsp;**1220359**  | &nbsp;&nbsp;**1220359**  | &nbsp;&nbsp;1398908  | &nbsp;&nbsp;1398908 |

---

(a) Accounts receivable, net is shown net of an allowance of $7.2 million at December 31, 2025, and $8.2 million at December 31, 2024. Refer to Note 1 - *Presentation of Financial Statements and Significant Accounting Policies* for additional information on the allowance. 

(b)<br> Notes receivable, net is shown net of an immaterial allowance at December 31, 2025, and December 31, 2024.

(c)<br> Excludes related unamortized financing costs.

The carrying amounts of Cash and restricted cash, Accounts receivable, net, and Notes receivable, net approximate fair value because of the short-term maturity of these instruments.

The fair value of the Company's senior unsecured notes, included in fixed-rate debt in the table above, is based upon the trade price closest to the end of the period presented. The fair value of other fixed-rate debt in the table above was estimated based on a discounted future cash payment model, which includes risk premiums and risk-free rates derived from the Secured Overnight Financing Rate (SOFR) or U.S. Treasury obligation interest rates as of December 31, 2025. Refer to Note 9 - *Mortgages, Notes, and Loans Payable, Net* for additional information. The discount rates reflect the Company's judgment as to what the approximate current lending rates for loans or groups of loans with similar maturities and credit quality would be if credit markets were operating efficiently and assuming that the debt is outstanding through maturity.

The carrying amounts for the Company's variable-rate debt approximate fair value given that the interest rates are variable and adjust with current market rates for instruments with similar risks and maturities.

F-60<br>

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The below table includes a non-financial asset received as consideration in a land swap transaction and measured at fair value on a non-recurring basis:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *thousands* | **Segment** | **Total Fair** <br>**Value** <br>**Measurement** | **Fair Value Measurements Using**  | **Fair Value Measurements Using**  | **Fair Value Measurements Using**  |
| *thousands* | **Segment** | **Total Fair** <br>**Value** <br>**Measurement** | **Quoted Prices** <br>**in Active** <br>**Markets for** <br>**Identical Assets** <br>**(Level 1)** | **Significant** <br>**Other** <br>**Observable** <br>**Inputs** <br>**(Level 2)** | **Significant** <br>**Unobservable** <br>**Inputs** <br>**(Level 3)**  |
| Town Green<sup>(a)</sup> | Strategic Developments | &nbsp;&nbsp;$28900 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | &nbsp;&nbsp;&nbsp;&nbsp;$— | &nbsp;&nbsp;$28900 |

---

(a)<br> The fair value was determined based on an independent property appraisal using market-participant assumptions as of June 2025. Refer to Note 5 - *Acquisitions and Dispositions* for additional information.

11. Derivative Instruments and Hedging Activities

The Company is exposed to interest rate risk related to its variable interest rate debt, and it manages this risk by utilizing interest rate derivatives. The Company uses interest rate swaps, collars, and caps to add stability to interest costs by reducing the Company's exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company's fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate collars designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above an established ceiling rate and payment of variable amounts to a counterparty if interest rates fall below an established floor rate, in exchange for an upfront premium. No payments or receipts are exchanged on interest rate collar contracts unless interest rates rise above or fall below the established ceiling and floor rates. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an upfront premium. Certain of the Company's interest rate caps are not currently designated as hedges, and therefore, any gains or losses are recognized in current-period earnings within Interest expense in the Consolidated Statements of Operations. These derivatives are recorded on a gross basis at fair value on the Consolidated Balance Sheet.

Assessments of hedge effectiveness are performed quarterly using regression analysis. The change in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in Accumulated other comprehensive income (loss) (AOCI) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings within the same income statement line item being hedged. Derivatives accounted for as cash flow hedges are classified in the same category in the Consolidated Statements of Cash Flows as the items being hedged. Gains and losses from derivative financial instruments are reported in Cash provided by (used in) operating activities within the Consolidated Statements of Cash Flows.

The Company is exposed to credit risk in the event of non-performance by its derivative counterparties. To mitigate its credit risk, the Company reviews the creditworthiness of counterparties and enters into agreements with those that are considered credit-worthy, such as large financial institutions with favorable credit ratings. There were no derivative counterparty defaults as of December 31, 2025 or 2024.

If the derivative contracts are terminated prior to their maturity, the amounts previously recorded in AOCI are recognized in earnings over the period that the hedged transaction impacts earnings. During the year ended December 31, 2025, the Company recorded an immaterial reduction in Interest expense related to the amortization of terminated swaps.

Amounts reported in AOCI related to derivatives will be reclassified to Interest expense as interest payments are made on the Company's variable-rate debt. Over the next 12 months, HHH estimates that $1.2 million of net gain will be reclassified to Interest expense including amounts related to the amortization of terminated swaps.

F-61<br>

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The following table summarizes certain terms of the Company's derivative contracts. The Company reports derivative assets in Other assets, net and derivative liabilities in Accounts payable and other liabilities.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **Fair Value Asset (Liability)**  | **Fair Value Asset (Liability)**  |
| <br>*thousands* | <br>**Notional Amount** | <br>**Fixed Interest**<br>**Rate<sup>(a)</sup>** | <br>**Effective**<br>**Date** | <br>**Maturity**<br>**Date** | **December 31,**<br>**2025** | **December 31,**<br>**2024**  |
| **Derivative instruments not designated as hedging instruments: <sup>(b)</sup>** | **Derivative instruments not designated as hedging instruments: <sup>(b)</sup>** | **Derivative instruments not designated as hedging instruments: <sup>(b)</sup>** | **Derivative instruments not designated as hedging instruments: <sup>(b)</sup>** | **Derivative instruments not designated as hedging instruments: <sup>(b)</sup>** | **Derivative instruments not designated as hedging instruments: <sup>(b)</sup>** | **Derivative instruments not designated as hedging instruments: <sup>(b)</sup>** |
| Interest rate collar | &nbsp;&nbsp;&nbsp;&nbsp;219080 | 2.00% - 4.50% | 6/1/2023 | 6/1/2025 | &nbsp;&nbsp;&nbsp;&nbsp;**$—** | &nbsp;&nbsp;&nbsp;&nbsp;$35  |
| Interest rate collar | &nbsp;&nbsp;&nbsp;&nbsp;234364 | 2.00% - 4.50% | 6/1/2023 | 6/1/2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34  |
| Interest rate cap | &nbsp;&nbsp;&nbsp;&nbsp;75000 | 2.50% | 10/12/2021 | 9/29/2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;919  |
| Interest rate cap | &nbsp;&nbsp;&nbsp;&nbsp;59500 | 2.50% | 10/12/2021 | 9/29/2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;729  |
| Interest rate cap | &nbsp;&nbsp;&nbsp;&nbsp;250000 | 4.50% | 6/17/2025 | 7/1/2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Interest rate cap | &nbsp;&nbsp;&nbsp;&nbsp;69712 | 6.00% | 6/20/2024 | 7/15/2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30  |
| Interest rate cap | &nbsp;&nbsp;&nbsp;&nbsp;8890 | 6.00% | 6/20/2024 | 7/15/2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4  |
| Interest rate cap | &nbsp;&nbsp;&nbsp;&nbsp;133467 | 5.25% | 12/2/2024 | 12/15/2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1** | &nbsp;&nbsp;&nbsp;&nbsp;297  |
| **Derivative instruments designated as hedging instruments:** | **Derivative instruments designated as hedging instruments:** | **Derivative instruments designated as hedging instruments:** | **Derivative instruments designated as hedging instruments:** | **Derivative instruments designated as hedging instruments:** | **Derivative instruments designated as hedging instruments:** | **Derivative instruments designated as hedging instruments:** |
| Interest rate cap | &nbsp;&nbsp;&nbsp;&nbsp;127000 | 3.50% | 11/7/2024 | 11/7/2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;725  |
| Interest rate cap | &nbsp;&nbsp;&nbsp;&nbsp;72581 | 5.00% | 12/22/2022 | 12/21/2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15  |
| Interest rate swap | &nbsp;&nbsp;&nbsp;&nbsp;79444 | 3.97% | 5/1/2025 | 4/15/2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(59) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Interest rate swap | &nbsp;&nbsp;&nbsp;&nbsp;32400 | 3.98% | 7/10/2025 | 8/1/2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(88) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Interest rate swap | &nbsp;&nbsp;&nbsp;&nbsp;175000 | 3.69% | 1/3/2023 | 1/1/2027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(542) | &nbsp;&nbsp;&nbsp;1062  |
| Interest rate swap | &nbsp;&nbsp;&nbsp;&nbsp;40800 | 1.68% | 3/1/2022 | 2/18/2027 | &nbsp;&nbsp;&nbsp;&nbsp;**792** | &nbsp;&nbsp;&nbsp;1979  |
| Interest rate cap | &nbsp;&nbsp;&nbsp;&nbsp;127000 | 3.50% | 11/7/2025 | 1/8/2027 | &nbsp;&nbsp;&nbsp;&nbsp;**145** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Interest rate cap | &nbsp;&nbsp;&nbsp;&nbsp;59000 | 4.15% | 12/21/2025 | 12/21/2028 | &nbsp;&nbsp;&nbsp;&nbsp;**183** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Interest rate swap | &nbsp;&nbsp;&nbsp;&nbsp;33894 | 4.89% | 11/1/2019 | 1/1/2032 | &nbsp;&nbsp;&nbsp;**1991** | &nbsp;&nbsp;&nbsp;3253  |
| **Total fair value derivative assets** |  |  |  |  | &nbsp;&nbsp;&nbsp;**$3113** | &nbsp;&nbsp;&nbsp;$9082  |
| **Total fair value derivative liabilities** |  |  |  |  | &nbsp;&nbsp;&nbsp;**(689)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| **Total fair value derivatives asset (liability), net** |  |  |  |  | &nbsp;&nbsp;&nbsp;**$2424** | &nbsp;&nbsp;&nbsp;$9082 |

---

(a)<br> These rates represent the swap rate and cap strike rate on HHH's interest rate swaps, caps, and collars.

(b) Interest income related to these contracts was $0.4 million in 2025 and $1.4 million in 2024. 

The tables below present the effect of the Company's derivative financial instruments in the Consolidated Statements of Operations for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| | **Amount of Gain (Loss) Recognized in AOCI on** <br>**Derivatives**  | **Amount of Gain (Loss) Recognized in AOCI on** <br>**Derivatives**  | **Amount of Gain (Loss) Recognized in AOCI on** <br>**Derivatives**  |
| **Derivatives in Cash Flow Hedging Relationships**<br>*thousands* | **2024** | **2023** | **2022**  |
| Interest rate derivatives | &nbsp;&nbsp;&nbsp;&nbsp;**$(962)**  | &nbsp;&nbsp;&nbsp;&nbsp;$4818 | &nbsp;&nbsp;&nbsp;&nbsp;$3809 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Amount of Gain (Loss) Reclassified from AOCI into** <br>**Statements of Operations**  | **Amount of Gain (Loss) Reclassified from AOCI into** <br>**Statements of Operations**  | **Amount of Gain (Loss) Reclassified from AOCI into** <br>**Statements of Operations**  |
| **Location of Gain (Loss) Reclassified from AOCI into Statements of Operations**<br>*thousands* | **2025** | **2024** | **2023**  |
| Interest expense | &nbsp;&nbsp;&nbsp;&nbsp;**$2923**  | &nbsp;&nbsp;&nbsp;&nbsp;$4497 | &nbsp;&nbsp;&nbsp;&nbsp;$13131 |

---

**Credit-risk-related Contingent Features The Company has agreements at the property level with certain derivative counterparties that contain a provision where if the Company defaults on the related property-level indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its related derivative obligations. The fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $0.7 million as of December 31, 2025.** 

F-62<br>

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12. **Commitments and Contingencies** 

**Litigation In the normal course of business, from time to time, the Company is involved in legal proceedings relating to the ownership and operations of its properties. In management's opinion, the liabilities, if any, that may ultimately result from normal course of business legal actions are not expected to have a material effect on the Company's consolidated financial position, results of operations, or liquidity.** 

***Columbia The Company is currently developing certain property it owns in Merriweather District (formerly Downtown Columbia), which is subject to certain recorded documents, covenants, and restrictions (the Covenants). Under the Covenants, HHH is the master developer of Merriweather District. In 2017, IMH Columbia, LLC (IMH) purchased the site of a former Sheraton Hotel (the Hotel Lot) subject to the Covenants. IMH has made demands that HHH accede to IMH's development plans for the Hotel Lot and HHH has exercised its right under the Covenants to object to IMH's plans for the Hotel Lot. IMH filed a complaint seeking (1) a declaration that HHH gave its consent, under the Covenants, to IMH's proposed changes in use and onsite parking, or that the limitations under the Covenants are obsolete and unenforceable, (2) damages reimbursing the costs and expenses IMH claims to have incurred in reliance on HHH's alleged consent to IMH's proposed development, (3) damages related to the expectation of lost profits, which IMH alleged were caused by HHH breaching the Covenants by prohibiting IMH from proceeding with its proposed development, and (4) declarations finding that HHH breached the shared parking related Covenants relating to HHH's own property. The jury trial concluded in April 2024, and the jury found partially in favor of IMH and awarded damages of $17.0 million, which will accrue post-judgment interest of 10% annually from the date of the final judgment. The Company appealed the judgment, and the Court of Appeals heard oral arguments in September 2025. In December 2025, the Appellate Court of Maryland affirmed the judgment in full and the Company does not intend to file a motion for reconsideration or appeal the decision. As such, the Company accrued a liability of $19.8 million at December 31, 2025, inclusive of $17.0 million for the initial judgment and $2.8 million of related interest, and recognized the amount in Other income (loss), net in the accompanying Consolidated Statements of Operations for year ended December 31, 2025.***

***Timarron Park On June 14, 2018, the Company was served with a petition involving approximately 500 individuals or entities who claim that their properties, located in the Timarron Park neighborhood of The Woodlands, were damaged by flood waters that resulted from the unprecedented rainfall that occurred throughout Harris County and surrounding areas during Hurricane Harvey in August 2017. The complaint was filed in State Court in Harris County of the State of Texas. In general, the plaintiffs allege negligence in the development of Timarron Park and violations of Texas' Deceptive Trade Practices Act and name as defendants The Howard Hughes Corporation, The Woodlands Land Development Company, and two unaffiliated parties involved in the planning and engineering of Timarron Park. The plaintiffs are seeking restitution for damages to their properties and diminution of their property values. On August 9, 2022, the Court granted the Company's summary judgment motions and dismissed the plaintiffs' claims. The plaintiffs filed a motion for a new trial, which was denied. Plaintiffs appealed. In November 2024, a three-judge panel of the Court of Appeals affirmed the trial court's judgment in the Company's favor. Plaintiffs sought rehearing. In December 2025, the Court of Appeals again affirmed the trial court's judgment in the Company's favor in a subsequent opinion issued following rehearing. The plaintiffs have obtained an extension of time to seek further rehearing or rehearing en banc and may also seek discretionary review by the Texas Supreme Court. Any such review is discretionary. The Company will continue to defend the matter as it believes that these claims are without merit and that it has substantial legal and factual defenses to the claims and allegations contained in the complaint. Based upon the present status of this matter, the Company does not believe it is probable that a loss will be incurred. Accordingly, the Company has not recorded a charge as a result of this action.***

***Kō'ula In January 2025, the Association of Unit Owners of Kō'ula filed two complaints against the Company and the general contractor, with one complaint alleging multiple code violations and construction defects (Defect Action) and the other claiming that the Company understated operating costs and disproportionately allocated common expenses to the detriment of unit owners (Budget Action). The Company's insurance carrier has agreed to defend the Defect Action, while coverage for the Budget Action was denied. The Company filed a motion to consolidate both complaints, which was granted in June 2025, and the court's order regarding the same was entered in September 2025. The Company filed motions to dismiss both actions in October 2025. The Court heard both motions in December 2025, and the Company is awaiting a ruling. The trial is presently scheduled for January 2027. The Company has not accrued any amount related to this claim as the damage is undetermined.***

F-63<br>

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**Letters of Credit and Surety Bonds As of December 31, 2025, the Company had outstanding letters of credit totaling $5.2 million and surety bonds totaling $383.1 million. As of December 31, 2024, the Company had outstanding letters of credit totaling $3.9 million and surety bonds totaling $353.8 million. These letters of credit and surety bonds were issued primarily in connection with insurance requirements, special real estate assessments, and construction obligations.** 

**Operating Leases The Company leases land or buildings at certain properties from third parties, which are recorded in Operating lease right-of-use assets and Operating lease obligations on the Consolidated Balance Sheets. See Note 18 - *Leases* for further discussion.** 

**Guaranty Agreements The Company evaluates the likelihood of future performance under the below guarantees and, as of December 31, 2025 and 2024, there were no events requiring financial performance under the following guarantees.** 

***Seaport Entertainment Guaranty Following the execution of the Spinoff, HHH provided a full backstop guaranty for SEG's outstanding $61.3 million mortgage related to its 250 Water Street property (SEG Term Loan). As consideration for providing such guaranty, SEG paid the Company an annualized guaranty fee equal to 2.0% of the total outstanding principal, paid monthly. The Company's maximum exposure under this guaranty was equal to the outstanding principal and interest balance at the end of each period. On February 6, 2026, SEG announced that it had closed the sale of its 250 Water Street property. As part of the transaction, SEG repaid the SEG Term Loan in full and the Company was released from the related backstop guaranty.***

***Floreo Guaranty In October 2022, Floreo, the Company's 50%-owned joint venture in Teravalis, closed on a $165 million bond financing with a maturity date of October 1, 2027. In February 2025, the borrowing capacity on the bond was increased to $365.0 million and the maturity was extended to December 1, 2029. Outstanding borrowings as of December 31, 2025, were $242.0 million. A wholly owned subsidiary of the Company (HHC Subsidiary) provided a guaranty for the bond in the form of a collateral maintenance commitment under which it will post refundable cash collateral if the LTV ratio exceeds 50%. A separate wholly owned subsidiary of the Company also provided a backstop guaranty requiring the payment of cash collateral in the event HHC Subsidiary fails to make necessary payments when due. In February 2025, in connection with the increase of the borrowing capacity, the potential cash collateral commitment associated with this guaranty increased from $50.0 million to $100.0 million. The cash collateral becomes nonrefundable if Floreo defaults on the bond obligation.***

The Company received a fee of $5.0 million in exchange for providing the initial guaranty and recognized an additional guaranty fee of $6.0 million associated with the increased borrowing capacity. This deferred income was recorded in Accounts payable and other liabilities on the Consolidated Balance Sheets as of December 31, 2025 and 2024, and will be recognized in Other income (loss), net in a manner that corresponds to the bond repayment by Floreo. The Company's maximum exposure under this guaranty is equal to the cash collateral that the Company may be obligated to post. As of December 31, 2025, the Company has not posted any cash collateral. Given the existence of other collateral including the undeveloped land owned by Floreo, the entity's extensive and discretionary development plan, and its eligibility for reimbursement of a significant part of the development costs from the Community Facility District in Arizona, the Company does not expect to have to post collateral.

***Merriweather District (formerly Downtown Columbia) To the extent that increases in taxes do not cover debt service payments on the Redevelopment District TIF bonds issued by Howard County, Maryland, the Company's wholly owned subsidiary is obligated to pay special taxes. Management has concluded that, as of December 31, 2025, any obligations to pay special taxes are not probable.***

***Ward Village As part of the Company's development permits with the Hawai'i Community Development Authority for the condominium towers at Ward Village, the Company entered into a guaranty whereby it is required to reserve 20% of the residential units for local residents who meet certain maximum income and net worth requirements. This guaranty, which is triggered once the necessary permits are granted and construction commences, was satisfied for Waiea, Anaha, and Ae'o, with the opening of Ke Kilohana, which is a workforce tower fully earmarked to fulfill this obligation for the first four towers. The reserved units for 'A'ali'i tower are***

F-64<br>

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included in the 'A'ali'i tower. Units for Kō'ula, Victoria Place, The Park Ward Village, and Kalae were satisfied with the construction of Ulana Ward Village, which is a second workforce tower fully earmarked to fulfill the remaining reserved housing guaranty in the community. Construction on Ulana Ward Village began in early 2023, and was completed in November 2025.

13. Stock-Based Compensation Plans

In September 2025, the Company's stockholders approved the Howard Hughes Holdings Inc. 2025 Equity Incentive Plan (the 2025 Equity Plan). Pursuant to the 2025 Equity Plan, 2,000,000 shares of the Company's common stock were reserved for issuance. The 2025 Equity Plan provides for grants of stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards. Employees, directors, and consultants of the Company are eligible for Awards. The 2025 Equity Incentive Plan is administered by the Compensation Committee of the Board of Directors (Compensation Committee).

Prior to the adoption of the 2025 Equity Plan, equity awards were issued under The Howard Hughes Corporation 2020 Equity Incentive Plan (the 2020 Equity Plan) and The Howard Hughes Corporation Amended and Restated 2010 Equity Incentive Plan (the 2010 Equity Plan). The adoption of the 2025 Equity Plan did not impact the administration of Awards issued under previous plans but following adoption of the 2025 Equity Plan, equity awards will no longer be granted under previous plans.

As of December 31, 2025, there were a maximum of 1,939,450 HHH shares available for future grants under the 2025 Equity Plan.

The following summarizes stock-based compensation expense, net of amounts capitalized to development projects, for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| *thousands* | **2025** | **2024** | **2023**  |
| Stock Options<sup>(a)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;**$270** | &nbsp;&nbsp;&nbsp;&nbsp;$195 | &nbsp;&nbsp;&nbsp;&nbsp;$336  |
| Restricted Stock<sup>(b)</sup> | &nbsp;&nbsp;**16345** | &nbsp;&nbsp;11875 | &nbsp;&nbsp;11389  |
| Pre-tax stock-based compensation expense | **$16615** | $12070 | $11725  |
| Income tax benefit | **$1116** | $1077 | $1001 |

---

(a) Amounts shown are net of immaterial amounts capitalized to development projects. 

(b) Amounts shown are net of $3.2 million capitalized to development projects in 2025, $3.9 million capitalized to development projects in 2024, and $4.6 million capitalized to development projects in 2023. 

#### Stock Options There were no grants of stock options in 2025. The following table summarizes stock option activity:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Stock** <br>**Options** | **Weighted-**<br>**average** <br>**Exercise Price** | **Weighted-average** <br>**Remaining Contractual** <br>**Term (years)** | **Aggregate** <br>**Intrinsic Value**  |
| Stock options outstanding at December 31, 2024 | 91402 | &nbsp;&nbsp;&nbsp;$91.90 |  |  |
| Exercised<sup>(a)</sup> | &nbsp;&nbsp;(1615) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;63.36 |  |  |
| Expired | (21547) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;123.44 |  |  |
| Stock options outstanding at December 31, 2025 | 68240 | &nbsp;&nbsp;&nbsp;$82.62 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 | &nbsp;&nbsp;$575760  |
| Stock options vested and expected to vest at December 31, 2025  | 68240 | &nbsp;&nbsp;&nbsp;$82.62 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 | &nbsp;&nbsp;$575760  |
| Stock options exercisable at December 31, 2025 | 59621 | &nbsp;&nbsp;&nbsp;$83.16 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 | &nbsp;&nbsp;$505949 |

---

(a) The total intrinsic value of stock options exercised was immaterial during 2025, based on the difference between the market price at the exercise date and the exercise price. There were no stock options exercised during 2024 or 2023. 

The fair value of stock option awards is determined using the Black-Scholes option-pricing model with the following assumptions:

–<br> *Expected life*—Based on the average of the time to vesting and full term of an option

–<br> *Risk-free interest rates*—Based on the U.S. Treasury rate over the expected life of an option

F-65<br>

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#### **TABLE OF CONTENTS**
–<br> *Expected volatility*—Based on the average of implied and historical volatilities as of each of the grant dates

The fair value on the grant date and the significant assumptions used in the Black-Scholes option-pricing model are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023**  |
| Weighted-average grant date fair value | **N/A** | $11.16 | N/A  |
| Assumptions<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Expected life of options (in years) | **N/A** | &nbsp;&nbsp;&nbsp;&nbsp;3.3 | N/A  |
| &nbsp;&nbsp;&nbsp;Risk-free interest rate | **N/A** | &nbsp;&nbsp;&nbsp;&nbsp;4.3% | N/A  |
| &nbsp;&nbsp;&nbsp;Expected volatility | **N/A** | &nbsp;&nbsp;&nbsp;30.6% | N/A  |
| &nbsp;&nbsp;&nbsp;Expected annual dividend per share | **—** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | N/A |

---

Generally, options granted vest over requisite service periods, expire ten years after the grant date and generally do not become exercisable until their restrictions on exercise lapse after the five-year anniversary of the grant date.

The balance of unamortized stock option expense as of December 31, 2025, was $0.1 million, which is expected to be recognized over a weighted-average period of 1.3 years.

**Restricted Stock Restricted stock awards may not be sold or otherwise transferred until restrictions have lapsed as established by the Compensation Committee. In addition to the granting of restricted stock to employees, the Company awards restricted stock to non-employee directors as part of their annual retainer. The employee awards generally vest over a range of three to five years, and non-employee director awards generally vest in approximately one year.** 

The following table summarizes restricted stock activity:

---

| | | |
|:---|:---|:---|
|  | **Restricted Stock** | **Weighted-average** <br>**Grant Date Fair Value**  |
| Restricted stock outstanding at December 31, 2024 | &nbsp;&nbsp;&nbsp;&nbsp;371955 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$56.43  |
| Granted | &nbsp;&nbsp;&nbsp;&nbsp;376989 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76.68  |
| Vested | &nbsp;&nbsp;&nbsp;&nbsp;(171887) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69.37  |
| Forfeited | &nbsp;&nbsp;&nbsp;&nbsp;(77582) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66.81  |
| Restricted stock outstanding at December 31, 2025 | &nbsp;&nbsp;&nbsp;&nbsp;499475 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$65.66 |

---

The grant date fair value of restricted stock is based on the closing price of common stock at grant date. For restricted stock awards that vest based on stockholder returns, the grant date fair value is calculated using a Monte-Carlo approach which simulates the Company's stock price on the corresponding vesting dates and is reflected at the target level of performance. For restricted stock awards that vest based on net asset value per share, the grant date fair value is calculated using a Monte-Carlo approach which simulates the Company's net asset value on the vesting date and is reflected at the target level of performance.

The weighted-average grant-date fair value per share of restricted stock granted was $66.16 during 2024 and $83.85 during 2023. The fair value of restricted stock that vested was $12.9 million during 2025, $10.3 million during 2024, and $9.6 million during 2023, based on the HHH market price at the vesting date.

The balance of unamortized restricted stock expense as of December 31, 2025, was $20.9 million, which is expected to be recognized over a weighted-average period of 2.1 years.

14. Income Taxes

Deferred income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax basis of assets and liabilities using enacted tax rates currently in effect. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards.

F-66<br>

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The following summarizes income tax expense (benefit) for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| *thousands* | **2025** | **2024** | **2023**  |
| Current<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Federal | **$12744** | $15534 | $33783  |
| &nbsp;&nbsp;&nbsp;State | &nbsp;&nbsp;&nbsp;**1293** | &nbsp;&nbsp;&nbsp;3121 | &nbsp;&nbsp;&nbsp;2532  |
| Total current | &nbsp;&nbsp;**14037** | &nbsp;&nbsp;18655 | &nbsp;&nbsp;36315  |
| Deferred<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Federal | &nbsp;&nbsp;**24463** | &nbsp;&nbsp;61853 | &nbsp;&nbsp;(7601)  |
| &nbsp;&nbsp;&nbsp;State | &nbsp;&nbsp;&nbsp;&nbsp;**(884)** | &nbsp;&nbsp;&nbsp;&nbsp;(324) | &nbsp;&nbsp;(2296)  |
| Total deferred | &nbsp;&nbsp;**23579** | &nbsp;&nbsp;61529 | &nbsp;&nbsp;(9897)  |
| Total | **$37616** | $80184 | $26418 |

---

Reconciliation of the Income tax expense (benefit) if computed at the U.S. federal statutory income tax rate to the Company's reported Income tax expense (benefit) for the years ended December 31 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *thousands except percentages* | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| Tax computed at the U.S. federal statutory rate | **$33906**  | **21.0%** | $76734  | 21.0% | $23064  | 21.0%  |
| Increase (decrease) in valuation allowance, net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**148** | &nbsp;&nbsp;**0.1%** | &nbsp;&nbsp;(20736)  | (5.7)% | &nbsp;&nbsp;&nbsp;4003 | &nbsp;&nbsp;3.7%  |
| State and local income tax expense (benefit), net of federal income tax<sup>(a)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**182** | &nbsp;&nbsp;**0.1%** | &nbsp;&nbsp;&nbsp;18719 | &nbsp;&nbsp;5.1% | &nbsp;&nbsp;(4432)  | (4.0)%  |
| Tax expense on compensation disallowance | &nbsp;&nbsp;&nbsp;**4380** | &nbsp;&nbsp;**2.7%** | &nbsp;&nbsp;&nbsp;&nbsp;1920 | &nbsp;&nbsp;0.5% | &nbsp;&nbsp;&nbsp;2133 | &nbsp;&nbsp;1.9%  |
| Other, net | &nbsp;&nbsp;**(1000)**  | **(0.6)%** | &nbsp;&nbsp;&nbsp;&nbsp;3547 | &nbsp;&nbsp;1.0% | &nbsp;&nbsp;&nbsp;1650 | &nbsp;&nbsp;1.5%  |
| &nbsp;&nbsp;Income tax expense (benefit) | **$37616**  | 23.3% | $80184  | 21.9% | $26418  | 24.1% |

---

(a) Tax in Maryland, Hawai'i, Virginia, Texas, New York, and New York City comprise more than 50% of the tax effect in this category. 

As of December 31, 2025, the amounts and expiration dates of operating loss carryforwards for tax purposes are as follows:

---

| | | |
|:---|:---|:---|
| *thousands* | **Amount** | **Expiration** <br>**Date**  |
| Net operating loss carryforwards - Federal | $708566 | n/a  |
| Net operating loss carryforwards - State | &nbsp;&nbsp;326955 | 2025-2044  |
| Net operating loss carryforwards - State | &nbsp;&nbsp;304402 | n/a  |
| Charitable contribution carryforwards - Federal | &nbsp;&nbsp;&nbsp;&nbsp;3432 | 2030  |
| General business tax credit carryforwards | &nbsp;&nbsp;&nbsp;&nbsp;1095 | 2044 |

---

The following summarizes tax effects of temporary differences and carryforwards included in the net deferred tax liabilities as of December 31:

---

| | | |
|:---|:---|:---|
| *thousands* | **2025** | **2024**  |
| Deferred tax assets:<br>|  |  |
| &nbsp;&nbsp;&nbsp;Accrued expenses | &nbsp;&nbsp;**$10192** | &nbsp;&nbsp;&nbsp;$9376  |
| &nbsp;&nbsp;&nbsp;Investments in unconsolidated ventures | &nbsp;&nbsp;&nbsp;&nbsp;**5105** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;&nbsp;Other | &nbsp;&nbsp;&nbsp;&nbsp;**2644** | &nbsp;&nbsp;&nbsp;&nbsp;4841  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | &nbsp;&nbsp;&nbsp;&nbsp;**1049** | &nbsp;&nbsp;&nbsp;&nbsp;1283  |
| &nbsp;&nbsp;&nbsp;Operating loss and tax carryforwards | &nbsp;&nbsp;**189054** | &nbsp;&nbsp;205244  |
| Total deferred tax assets | &nbsp;&nbsp;**208044** | &nbsp;&nbsp;220744  |
| &nbsp;&nbsp;&nbsp;Valuation allowance | &nbsp;&nbsp;**(16431)** | &nbsp;&nbsp;(16314)  |
| Total net deferred tax assets | **$191613** | $204430  |

---

F-67<br>

------

---

| | | |
|:---|:---|:---|
| *thousands* | **2025** | **2024**  |
| Deferred tax liabilities:<br>|  |  |
| &nbsp;&nbsp;&nbsp;Master Planned Communities properties | **$(304057)** | $(297889)  |
| &nbsp;&nbsp;&nbsp;Operating and development properties and fixed assets | &nbsp;&nbsp;&nbsp;**(32045)** | &nbsp;&nbsp;&nbsp;(25675)  |
| &nbsp;&nbsp;&nbsp;Deferred income | &nbsp;&nbsp;&nbsp;**(18167)** | &nbsp;&nbsp;&nbsp;(18839)  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | &nbsp;&nbsp;&nbsp;&nbsp;**(1816)** | &nbsp;&nbsp;&nbsp;&nbsp;(2981)  |
| &nbsp;&nbsp;&nbsp;Investments in unconsolidated ventures | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;(1146)  |
| Total deferred tax liabilities | &nbsp;&nbsp;**(356085)** | &nbsp;&nbsp;(346530)  |
| Total net deferred tax liabilities | **$(164472)** | $(142100) |

---

The deferred tax liability associated with the Company's MPCs is largely attributable to the difference between the basis and value determined as of the date of the acquisition by its predecessors adjusted for sales that have occurred since that time. The recognition of these deferred tax liabilities is dependent upon the timing and sales price of future land sales and the method of accounting used for income tax purposes. The deferred tax liability related to deferred income represents the difference between the income tax method of accounting and the financial statement method of accounting for prior sales of land in the Company's MPCs.

Generally, the Company is currently open to audit under the statute of limitations by the Internal Revenue Service as well as state taxing authorities for the years ended December 31, 2022 through 2024. In the Company's opinion, it has made adequate tax provisions for years subject to examination. However, the final determination of tax examinations and any related litigation could be different from what was reported on the returns.

The Company applies the generally accepted accounting principle related to accounting for uncertainty in income taxes, which prescribes a recognition threshold that a tax position is required to meet before recognition in the financial statements and provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure, and transition issues.

The Company recognizes and reports interest and penalties related to unrecognized tax benefits, if applicable, within the provision for income tax expense. The Company had no unrecognized tax benefits for the years ended December 31, 2025, 2024, or 2023, and therefore did not recognize any interest expense or penalties on unrecognized tax benefits.

15. Accumulated Other Comprehensive Income (Loss)

The following tables summarize changes in AOCI, all of which are presented net of tax:

---

| | |
|:---|:---|
| *thousands* |  |
| **Balance at December 31, 2022** | $10335  |
| Derivative instruments:<br>|  |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | &nbsp;&nbsp;&nbsp;&nbsp;3809  |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss reclassified to net income | &nbsp;&nbsp;(13131)  |
| Pension adjustment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;259  |
| Net current-period other comprehensive income (loss) | &nbsp;&nbsp;&nbsp;(9063)  |
| **Balance at December 31, 2023** | &nbsp;&nbsp;&nbsp;$1272  |
| Derivative instruments:<br>|  |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | &nbsp;&nbsp;&nbsp;&nbsp;4818  |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss reclassified to net income | &nbsp;&nbsp;&nbsp;(4497)  |
| Pension adjustment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;375  |
| Net current-period other comprehensive income (loss) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;696  |
| **Balance at December 31, 2024** | &nbsp;&nbsp;&nbsp;$1968  |

---

F-68<br>

------

---

| | |
|:---|:---|
| *thousands* |  |
| Derivative instruments:<br>|  |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | &nbsp;&nbsp;&nbsp;&nbsp;(962)  |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss reclassified to net income | &nbsp;&nbsp;(2923)  |
| Pension adjustment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90  |
| Net current-period other comprehensive income (loss) | &nbsp;&nbsp;(3795)  |
| **Balance at December 31, 2025** | $(1827) |

---

The following table summarizes the amounts reclassified out of AOCI for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| **Accumulated Other Comprehensive Income (Loss) Components** <br>***thousands*** | **2025** | **2024** | **Affected line items in the** <br>**Statements of Operations**  |
| (Gains) losses on cash flow hedges | **$(3833)**  | $(5821) | Interest expense  |
| &nbsp;&nbsp;Income taxes on (gains) losses on cash flow hedges | &nbsp;&nbsp;&nbsp;&nbsp;**910** | &nbsp;&nbsp;&nbsp;1324 | Income tax expense (benefit)  |
| &nbsp;&nbsp;Total reclassifications of (income) loss for the period | **$(2923)**  | $(4497) |  |

---

16. Earnings Per Share

Basic earnings (loss) per share (EPS) is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding. Diluted EPS is computed after adjusting the numerator and denominator of the basic EPS computation for the effects of all potentially dilutive common shares. The dilutive effect of options and non-vested stock issued under stock-based compensation plans is computed using the treasury stock method.

Information related to the Company's EPS calculations is summarized for the years ended December 31 as follows:

---

| | | | |
|:---|:---|:---|:---|
| *thousands except per share amounts* | **2025** | **2024** | **2023**  |
| **Net income (loss)**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Net income (loss) from continuing operations | **$123843** | $285215 | &nbsp;&nbsp;&nbsp;$83410  |
| &nbsp;&nbsp;&nbsp;Net (income) loss attributable to noncontrolling interests | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**54** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;711 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(243)  |
| &nbsp;&nbsp;&nbsp;Net income (loss) from continuing operations attributable to common stockholders | &nbsp;&nbsp;**123897** | &nbsp;&nbsp;285926 | &nbsp;&nbsp;&nbsp;&nbsp;83167  |
| &nbsp;&nbsp;&nbsp;Net income (loss) from discontinued operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;(88223) | &nbsp;&nbsp;(634940)  |
| &nbsp;&nbsp;&nbsp;Net income (loss) attributable to common stockholders | **$123897** | $197703 | $(551773)  |
| **Shares**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Weighted-average common shares outstanding — basic | &nbsp;&nbsp;&nbsp;**55722** | &nbsp;&nbsp;&nbsp;49686 | &nbsp;&nbsp;&nbsp;&nbsp;49568  |
| &nbsp;&nbsp;&nbsp;Restricted stock and stock options | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**324** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;226 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48  |
| &nbsp;&nbsp;&nbsp;Weighted-average common shares outstanding — diluted | &nbsp;&nbsp;&nbsp;**56046** | &nbsp;&nbsp;&nbsp;49912 | &nbsp;&nbsp;&nbsp;&nbsp;49616  |
| **Net income (loss) per common share**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Basic income (loss) per share — continuing operations | &nbsp;&nbsp;&nbsp;&nbsp;**$2.22** | &nbsp;&nbsp;&nbsp;&nbsp;$5.75 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1.68  |
| &nbsp;&nbsp;&nbsp;Basic income (loss) per share — discontinued operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$—** | &nbsp;&nbsp;&nbsp;&nbsp;$(1.78) | &nbsp;&nbsp;&nbsp;$(12.81)  |
| &nbsp;&nbsp;&nbsp;Basic income (loss) per share — attributable to common stockholders | &nbsp;&nbsp;&nbsp;&nbsp;**$2.22** | &nbsp;&nbsp;&nbsp;&nbsp;$3.98 | &nbsp;&nbsp;&nbsp;$(11.13) |
| &nbsp;&nbsp;&nbsp;Diluted income (loss) per share — continuing operations | &nbsp;&nbsp;&nbsp;&nbsp;**$2.21** | &nbsp;&nbsp;&nbsp;&nbsp;$5.73 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1.68  |
| &nbsp;&nbsp;&nbsp;Diluted income (loss) per share — discontinued operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$—** | &nbsp;&nbsp;&nbsp;&nbsp;$(1.77) | &nbsp;&nbsp;&nbsp;$(12.80)  |
| &nbsp;&nbsp;&nbsp;Diluted income (loss) per share — attributable to common stockholders | &nbsp;&nbsp;&nbsp;&nbsp;**$2.21** | &nbsp;&nbsp;&nbsp;&nbsp;$3.96 | &nbsp;&nbsp;&nbsp;$(11.12)  |
| **Anti-dilutive shares excluded from diluted EPS**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Restricted stock and stock options | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**142** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250 |

---

**Common Stock Repurchases In March 2022, the Board authorized a share repurchase program, pursuant to which the Company may, from time to time, purchase up to $250.0 million of its common stock through open-market transactions. The date and time of such repurchases will depend upon market conditions, and the program may be suspended or discontinued at any time. During 2022, the Company repurchased approximately $235.0 million of its common stock.** 

F-69<br>

------

17. Revenues

Revenues from contracts with customers (excluding lease-related revenues) are recognized when control of the promised goods or services is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Revenue and cost of sales for condominium units sold are not recognized until the construction is complete, the sale closes, and the title to the property has transferred to the buyer (point in time). Additionally, certain real estate selling costs, such as the costs related to the Company's condominium model units, are either expensed immediately or capitalized as property and equipment and depreciated over their estimated useful life.

The following presents the Company's revenues disaggregated by revenue source for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| *thousands* | **2025** | **2024** | **2023**  |
| **Revenues from contracts with customers** <br>|  |  |  |
| &nbsp;&nbsp;&nbsp;**Recognized at a point in time:**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Condominium rights and unit sales | &nbsp;&nbsp;**$370156**  | &nbsp;&nbsp;$778616  | &nbsp;&nbsp;$47707  |
| &nbsp;&nbsp;&nbsp;Master Planned Communities land sales | &nbsp;&nbsp;&nbsp;&nbsp;**562586**  | &nbsp;&nbsp;&nbsp;&nbsp;453195  | &nbsp;&nbsp;370185  |
| &nbsp;&nbsp;&nbsp;Builder price participation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**52341**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52023  | &nbsp;&nbsp;&nbsp;60989  |
| &nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;&nbsp;**985083**  | &nbsp;&nbsp;1283834  | &nbsp;&nbsp;478881  |
| &nbsp;&nbsp;&nbsp;**Recognized at a point in time or over time:**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Other land, rental, and property revenues | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**48363**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44755  | &nbsp;&nbsp;&nbsp;46255  |
| **Rental and lease-related revenues**<br>|  |  |  |
| &nbsp;&nbsp;&nbsp;Rental revenue | &nbsp;&nbsp;&nbsp;&nbsp;**441446**  | &nbsp;&nbsp;&nbsp;&nbsp;422100  | &nbsp;&nbsp;383617  |
| Total revenues | **$1474892**  | $1750689  | $908753 |

---

**Contract Assets and Liabilities Contract assets are the Company's right to consideration in exchange for goods or services that have been transferred to a customer, excluding any amounts presented as a receivable. Contract liabilities are the Company's obligation to transfer goods or services to a customer for which the Company has received consideration.** 

There were no contract assets for the periods presented. The contract liabilities primarily relate to escrowed condominium deposits, MPC land sales deposits, and deferred MPC land sales related to unsatisfied land improvements. The beginning and ending balances of contract liabilities and significant activity during the periods presented are as follows:

---

| | |
|:---|:---|
| *thousands* | **Contract** <br>**Liabilities**  |
| Balance at December 31, 2023 | $575621  |
| Consideration earned during the period | &nbsp;&nbsp;(865949)  |
| Consideration received during the period | &nbsp;&nbsp;&nbsp;874864  |
| Balance at December 31, 2024 | $584536  |
| Consideration earned during the period | &nbsp;&nbsp;(479157)  |
| Consideration received during the period | &nbsp;&nbsp;&nbsp;791517  |
| Balance at December 31, 2025 | $896896 |

---

**Remaining Unsatisfied Performance Obligations The Company's remaining unsatisfied performance obligations represent a measure of the total dollar value of work to be performed on contracts executed and in progress. These performance obligations primarily relate to the completion of condominium construction and transfer of control to a buyer, as well as the completion of contracted MPC land sales and related land improvements. These obligations are associated with contracts that generally are non-cancelable by the customer after 30 days for all Ward Village condominiums and after 6 days for The Ritz-Carlton Residences; however, purchasers of condominium units have the right to cancel the contract should the Company elect not to construct** 

F-70<br>

------

the condominium unit within a certain period of time or materially change the design of the condominium unit. The aggregate amount of the transaction price allocated to the Company's remaining unsatisfied performance obligations as of December 31, 2025, was $4.4 billion. The Company expects to recognize this amount as revenue over the following periods:

---

| | | | |
|:---|:---|:---|:---|
| *thousands* | **Less than 1 year** | **1-2 years** | **3 years and thereafter**  |
| Total remaining unsatisfied performance obligations | &nbsp;&nbsp;$1072317  | $447395  | &nbsp;&nbsp;&nbsp;&nbsp;$2884803 |

---

The Company's remaining performance obligations are adjusted to reflect any known project cancellations, revisions to project scope and cost, and deferrals, as appropriate. These amounts exclude estimated amounts of variable consideration which are constrained, such as builder price participation.

18. Leases

The Company has lease agreements with lease and non-lease components and has elected to aggregate these components into a single component for all classes of underlying assets. Certain of the Company's lease agreements include non-lease components such as fixed common area maintenance charges.

**Lessee Arrangements The Company determines whether an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets and Operating lease obligations on the Consolidated Balance Sheets. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of future minimum lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses an estimate of the incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future lease payments. The Operating lease right-of-use asset also includes any lease payments made, less any lease incentives and initial direct costs incurred. The Company does not have any finance leases.** 

The Company's lessee agreements consist of operating leases primarily for ground leases and other real estate. The Company's leases have remaining lease terms of approximately 1 year to approximately 24 years, excluding extension options. The Company considers its strategic plan and the life of associated agreements in determining when options to extend or terminate lease terms are reasonably certain of being exercised. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Certain of the Company's lease agreements include variable lease payments based on a percentage of income generated through subleases, changes in price indices and market rates, and other costs arising from operating, maintenance, and taxes. The Company's lease agreements do not contain residual value guarantees or restrictive covenants. The Company leases certain buildings constructed on its ground leases to third parties.

The Company's leased assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
| *thousands* | **2025** | **2024**  |
| Operating lease right-of-use assets | **$5231**  | $5806  |
| Operating lease obligations | &nbsp;&nbsp;**4868**  | &nbsp;&nbsp;5456 |

---

Future minimum lease payments as of December 31, 2025, are as follows:

---

| | |
|:---|:---|
| *thousands* | **Operating Leases**  |
| 2026 | &nbsp;&nbsp;&nbsp;&nbsp;$956  |
| 2027 | &nbsp;&nbsp;&nbsp;&nbsp;898  |
| 2028 | &nbsp;&nbsp;&nbsp;&nbsp;616  |
| 2029 | &nbsp;&nbsp;&nbsp;&nbsp;622  |
| 2030 | &nbsp;&nbsp;&nbsp;&nbsp;381  |
| Thereafter | &nbsp;&nbsp;&nbsp;&nbsp;5300  |
| Total lease payments | &nbsp;&nbsp;&nbsp;&nbsp;8773  |
| Less: imputed interest | &nbsp;&nbsp;&nbsp;&nbsp;(3905)  |
| Present value of lease liabilities | &nbsp;&nbsp;&nbsp;&nbsp;$4868 |

---

F-71<br>

------

Other information related to the Company's lessee agreements is as follows:

---

| | | |
|:---|:---|:---|
| | **Year ended December 31,**  | **Year ended December 31,**  |
| **Supplemental Consolidated Statements of Cash Flows Information**<br>*thousands* | **2025** | **2024**  |
| Cash paid for amounts included in the measurement of lease liabilities:<br>|  |  |
| &nbsp;&nbsp;&nbsp;Operating cash flows on operating leases | &nbsp;&nbsp;&nbsp;&nbsp;**$992**  | &nbsp;&nbsp;&nbsp;&nbsp;$759 |

---

---

| | | |
|:---|:---|:---|
| **Other Information** | **2025** | **2024**  |
| Weighted-average remaining lease term (years)<br>|  |  |
| &nbsp;&nbsp;&nbsp;Operating leases | 16.3 | 16.4  |
| Weighted-average discount rate<br>|  |  |
| &nbsp;&nbsp;&nbsp;Operating leases | &nbsp;&nbsp;7.2% | &nbsp;&nbsp;7.1% |

---

**Lessor Arrangements The Company receives rental income from the leasing of retail, office, multifamily, and other space under operating leases, as well as certain variable tenant recoveries. Operating leases for retail, office, and other properties are with a variety of tenants and have a remaining average term of approximately five years. Lease terms generally vary among tenants and may include early termination options, extension options, and fixed rental rate increases or rental rate increases based on an index. Multifamily leases generally have a term of 12 months or less. Minimum rent revenues related to operating leases are as follows:** 

---

| | | |
|:---|:---|:---|
| | **Year ended December 31,**  | **Year ended December 31,**  |
| <br>*thousands* | **2025** | **2024**  |
| Total minimum rent payments | **$246603**  | $235652 |

---

Total future minimum rents associated with operating leases are as follows:

---

| | |
|:---|:---|
| *thousands* | **Total Minimum Rent**  |
| 2026 | &nbsp;&nbsp;&nbsp;&nbsp;$248354  |
| 2027 | &nbsp;&nbsp;&nbsp;&nbsp;248617  |
| 2028 | &nbsp;&nbsp;&nbsp;&nbsp;226818  |
| 2029 | &nbsp;&nbsp;&nbsp;&nbsp;207142  |
| 2030 | &nbsp;&nbsp;&nbsp;&nbsp;181921  |
| &nbsp;&nbsp;Thereafter | &nbsp;&nbsp;&nbsp;&nbsp;619494  |
| Total | &nbsp;&nbsp;&nbsp;&nbsp;$1732346 |

---

Minimum rent revenues are recognized on a straight-line basis over the terms of the related leases when collectability is reasonably assured and the tenant has taken possession of, or controls, the physical use of the leased asset. Percentage rent in lieu of fixed minimum rent is recognized as sales are reported from tenants. Minimum rent revenues reported in the Consolidated Statements of Operations also include amortization related to above-market and below-market tenant leases on acquired properties.

19. Segments

The Company has three business segments, Operating Assets, MPC, and Strategic Developments, which are organized based on the different products and services that each segment offers, and are separately managed as each requires different operating strategies or management expertise reflective of management's operating philosophies and methods. The Company's segments or assets within such segments could change in the future as development of certain properties commences or other operational or management changes occur. All operations are within the United States.

Activity within each of the Company's reportable segments is as follows:

---

| | |
|:---|:---|
| –<br>| ***Operating Assets*** – consists of developed or acquired retail, office, and multifamily properties along with other real estate investments. These properties are currently generating rental revenues and may be redeveloped, repositioned, or sold to improve segment performance or to recycle capital.  |

---

F-72<br>

------

---

| | |
|:---|:---|
| –<br>| ***MPC*** – consists of the development and sale of land in large-scale, long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. Revenues are primarily generated through the sale of residential and commercial land to homebuilders and developers.  |

---

---

| | |
|:---|:---|
| –<br>| ***Strategic Developments*** – consists of residential condominium and commercial property projects currently under development and all other properties held for development which have no substantial operations. Revenues are primarily generated from the sale of condominium units.  |

---

The Chief Operating Decision Maker (CODM), which is the Company's Chief Executive Officer, may use different operating measures to assess operating results and allocate resources among the three segments, however the measure that is most consistent with the amounts included in the consolidated financial statements is earnings before taxes (EBT). EBT, as it relates to each business segment, includes the revenues and expenses of each segment, as shown below. EBT excludes corporate expenses and other items that are not allocable to the segments. The CODM utilizes EBT to evaluate the current financial performance and project the future financial performance of each segment to determine the allocation of capital resources. This measure is also used to evaluate the need for operational adjustments, such as adjustments to prices, cost structures, and product mix necessary to achieve profitability targets.

F-73<br>

------

Segment EBT is as follows for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| *thousands* | **Operating** <br>**Assets Segment** | **MPC Segment** | **Strategic** <br>**Developments** <br>**Segment**  |
| **Year Ended December 31, 2025** <br>|  |  |  |
| Total revenues | &nbsp;&nbsp;$465568  | &nbsp;&nbsp;$634856  | $374363  |
| Condominium rights and unit cost of sales | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;(369408)  |
| Master Planned Communities cost of sales | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;(188704)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Operating costs | &nbsp;&nbsp;(145464)  | &nbsp;&nbsp;&nbsp;(45298)  | &nbsp;&nbsp;&nbsp;(22490)  |
| Rental property real estate taxes | &nbsp;&nbsp;&nbsp;(58577)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;(2191)  |
| (Provision for) recovery of doubtful accounts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(232)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Segment operating income (loss) | &nbsp;&nbsp;&nbsp;261295  | &nbsp;&nbsp;&nbsp;400854  | &nbsp;&nbsp;&nbsp;(19726)  |
| Depreciation and amortization | &nbsp;&nbsp;(172835)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(408)  | &nbsp;&nbsp;&nbsp;&nbsp;(6579)  |
| Interest income (expense), net | &nbsp;&nbsp;(136637)  | &nbsp;&nbsp;&nbsp;&nbsp;75160  | &nbsp;&nbsp;&nbsp;&nbsp;18851  |
| Other income (loss), net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2266  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;120  | &nbsp;&nbsp;&nbsp;(18487)  |
| Equity in earnings (losses) from unconsolidated ventures | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4829  | &nbsp;&nbsp;&nbsp;&nbsp;(3374)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;317  |
| Gain (loss) on sale or disposal of real estate and other assets, net | &nbsp;&nbsp;&nbsp;&nbsp;14354  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3750  | &nbsp;&nbsp;&nbsp;&nbsp;11721  |
| &nbsp;&nbsp;Gain (loss) on extinguishment of debt | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(698)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Segment EBT | &nbsp;&nbsp;$(27426)  | &nbsp;&nbsp;$476102  | $(13903)  |
| **Year Ended December 31, 2024** <br>|  |  |  |
| Total revenues | &nbsp;&nbsp;$444300  | &nbsp;&nbsp;$522925  | $783396  |
| Condominium rights and unit cost of sales | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;(582574)  |
| Master Planned Communities cost of sales | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;(169191)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Operating costs | &nbsp;&nbsp;(138172)  | &nbsp;&nbsp;&nbsp;(52736)  | &nbsp;&nbsp;&nbsp;(17670)  |
| Rental property real estate taxes | &nbsp;&nbsp;&nbsp;(55915)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;(2480)  |
| (Provision for) recovery of doubtful accounts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(504)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Segment operating income (loss) | &nbsp;&nbsp;&nbsp;249709  | &nbsp;&nbsp;&nbsp;300998  | &nbsp;&nbsp;&nbsp;180672  |
| Depreciation and amortization | &nbsp;&nbsp;(169040)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(438)  | &nbsp;&nbsp;&nbsp;&nbsp;(7255)  |
| Interest income (expense), net | &nbsp;&nbsp;(138207)  | &nbsp;&nbsp;&nbsp;&nbsp;60473  | &nbsp;&nbsp;&nbsp;&nbsp;18603  |
| Other income (loss), net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;822  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;90534  |
| Equity in earnings (losses) from unconsolidated ventures | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5819  | &nbsp;&nbsp;&nbsp;(11899)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;251  |
| Gain (loss) on sale or disposal of real estate and other assets, net | &nbsp;&nbsp;&nbsp;&nbsp;22907  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| &nbsp;&nbsp;Gain (loss) on extinguishment of debt | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(465)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Segment EBT | &nbsp;&nbsp;$(28455)  | &nbsp;&nbsp;$349134  | $282805  |
| **Year Ended December 31, 2023**<br>|  |  |  |
| Total revenues | &nbsp;&nbsp;$410254  | &nbsp;&nbsp;$448452  | &nbsp;&nbsp;&nbsp;$49987  |
| Condominium rights and unit cost of sales | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;(55417)  |
| Master Planned Communities cost of sales | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;(140050)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Operating costs | &nbsp;&nbsp;(130125)  | &nbsp;&nbsp;&nbsp;(53420)  | &nbsp;&nbsp;&nbsp;(21908)  |
| Rental property real estate taxes | &nbsp;&nbsp;&nbsp;(52502)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;(3147)  |
| (Provision for) recovery of doubtful accounts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2762  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Segment operating income (loss) | &nbsp;&nbsp;&nbsp;230389  | &nbsp;&nbsp;&nbsp;254982  | &nbsp;&nbsp;&nbsp;(30485)  |
| Depreciation and amortization | &nbsp;&nbsp;(161138)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(418)  | &nbsp;&nbsp;&nbsp;&nbsp;(3963)  |
| Interest income (expense), net | &nbsp;&nbsp;(125197)  | &nbsp;&nbsp;&nbsp;&nbsp;64291  | &nbsp;&nbsp;&nbsp;&nbsp;16074  |
| Other income (loss), net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2092  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(102)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;690  |
| Equity in earnings (losses) from unconsolidated ventures | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2968  | &nbsp;&nbsp;&nbsp;&nbsp;22666  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;142  |
| Gain (loss) on sale or disposal of real estate and other assets, net | &nbsp;&nbsp;&nbsp;&nbsp;23926  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;236  |
| &nbsp;&nbsp;Gain (loss) on extinguishment of debt | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(97)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Segment EBT | &nbsp;&nbsp;$(27057)  | &nbsp;&nbsp;$341419  | $(17306) |

---

F-74<br>

------

The following represents the reconciliation of segment EBT to Net income (loss) from continuing operations before income taxes in the Consolidated Statements of Operations for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| *thousands* | **2025** | **2024** | **2023**  |
| Operating Assets EBT | &nbsp;&nbsp;**$(27426)**  | $(28455)  | $(27057)  |
| MPC EBT | &nbsp;&nbsp;&nbsp;**476102**  | &nbsp;&nbsp;349134  | &nbsp;&nbsp;341419  |
| Strategic Developments EBT | &nbsp;&nbsp;&nbsp;**(13903)**  | &nbsp;&nbsp;282805  | &nbsp;&nbsp;(17306)  |
| General and administrative expenses | &nbsp;&nbsp;**(122240)**  | &nbsp;&nbsp;(91752)  | &nbsp;&nbsp;(86671)  |
| Gain (loss) on sale of MUD receivables | &nbsp;&nbsp;&nbsp;**(48197)**  | &nbsp;&nbsp;(48651)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |
| Corporate interest expense, net | &nbsp;&nbsp;&nbsp;**(80307)**  | &nbsp;&nbsp;(80446)  | &nbsp;&nbsp;(87243)  |
| Corporate income, expenses, and other items | &nbsp;&nbsp;&nbsp;**(22570)**  | &nbsp;&nbsp;(17236)  | &nbsp;&nbsp;(13314)  |
| Net income (loss) from continuing operations before income taxes | **$161459**  | $365399  | $109828 |

---

The following represents the reconciliation of segment revenue to Total revenues in the Consolidated Statements of Operations for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| *thousands* | **2025** | **2024** | **2023**  |
| Operating Assets revenue | &nbsp;&nbsp;**$465568**  | &nbsp;&nbsp;$444300  | $410254  |
| MPC revenue | &nbsp;&nbsp;&nbsp;&nbsp;**634856**  | &nbsp;&nbsp;&nbsp;&nbsp;522925  | &nbsp;&nbsp;448452  |
| &nbsp;&nbsp;Strategic Developments revenue | &nbsp;&nbsp;&nbsp;&nbsp;**374363**  | &nbsp;&nbsp;&nbsp;&nbsp;783396  | &nbsp;&nbsp;&nbsp;49987  |
| Corporate income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**105**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60  |
| Total revenues | **$1474892**  | $1750689  | $908753 |

---

The following represents asset information by segment and the reconciliation of total segment assets to Total assets on the Consolidated Balance Sheets as of December 31:

---

| | | |
|:---|:---|:---|
| *thousands* | **2025** | **2024**  |
| Operating Assets | &nbsp;&nbsp;**$3606214**  | $3548162  |
| Master Planned Communities | &nbsp;&nbsp;&nbsp;**3487301**  | &nbsp;&nbsp;3373827  |
| Strategic Developments | &nbsp;&nbsp;&nbsp;**2378762**  | &nbsp;&nbsp;1836791  |
| Corporate  | &nbsp;&nbsp;&nbsp;**1167184**  | &nbsp;&nbsp;&nbsp;&nbsp;452456  |
| Total assets | **$10639461**  | $9211236 |

---

The following represents capital expenditures by segment for the years ended December 31:

---

| | | |
|:---|:---|:---|
| *thousands* | **2025** | **2024**  |
| Operating Assets | &nbsp;&nbsp;**$45333**  | &nbsp;&nbsp;$63781  |
| Master Planned Communities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**184**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;232  |
| Strategic Developments | &nbsp;&nbsp;**176689**  | &nbsp;&nbsp;239472 |

---

20. Quarterly Financial Information (Unaudited)

The Company completed the Spinoff of SEG in the third quarter of 2024. As the Spinoff represented a strategic shift in the Company's operations, the results of SEG are presented as discontinued operations, which resulted in retrospective changes to the Company's Consolidated Statements of Operations. See Note 3 - *Discontinued Operations* for additional information.

F-75<br>

------

The following table provides summarized quarterly financial data for 2024. All per share amounts presented below are calculated based on whole dollars and number of shares, and therefore the sum of continuing and discontinued operations per share amounts may not recalculate to the total per share amounts.

---

| | | | | |
|:---|:---|:---|:---|:---|
| *thousands except per share amounts* | **First** <br>**Quarter** | **Second** <br>**Quarter** | **Third** <br>**Quarter** | **Fourth** <br>**Quarter**  |
| **2024**<br>|  |  |  |  |
| Total revenues | $156484  | $283468  | $327147  | $983590  |
| Operating income (loss) | &nbsp;&nbsp;&nbsp;12608  | &nbsp;&nbsp;&nbsp;88464  | &nbsp;&nbsp;198339  | &nbsp;&nbsp;260510  |
| Net income (loss) from continuing operations | &nbsp;&nbsp;(21000)  | &nbsp;&nbsp;&nbsp;47367  | &nbsp;&nbsp;&nbsp;96528  | &nbsp;&nbsp;162320  |
| Net income (loss) from discontinued operations, net of tax | &nbsp;&nbsp;(31467)  | &nbsp;&nbsp;(26309)  | &nbsp;&nbsp;(24031)  | &nbsp;&nbsp;&nbsp;&nbsp;(6416)  |
| Net income (loss) | &nbsp;&nbsp;(52467)  | &nbsp;&nbsp;&nbsp;21058  | &nbsp;&nbsp;&nbsp;72497  | &nbsp;&nbsp;155904  |
| Net (income) loss attributable to noncontrolling interests | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;273  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;414  |
| Net income (loss) attributable to common stockholders | &nbsp;&nbsp;(52477)  | &nbsp;&nbsp;&nbsp;21092  | &nbsp;&nbsp;&nbsp;72770  | &nbsp;&nbsp;156318  |
| Basic income (loss) per share — continuing operations | &nbsp;&nbsp;&nbsp;&nbsp;$(0.42)  | &nbsp;&nbsp;&nbsp;&nbsp;$0.95  | &nbsp;&nbsp;&nbsp;&nbsp;$1.95  | &nbsp;&nbsp;&nbsp;&nbsp;$3.27  |
| &nbsp;&nbsp;Basic income (loss) per share — discontinued operations | &nbsp;&nbsp;&nbsp;&nbsp;$(0.63)  | &nbsp;&nbsp;&nbsp;&nbsp;$(0.53)  | &nbsp;&nbsp;&nbsp;&nbsp;$(0.48)  | &nbsp;&nbsp;&nbsp;&nbsp;$(0.13)  |
| &nbsp;&nbsp;&nbsp;Basic income (loss) per share attributable to common <br>stockholders | &nbsp;&nbsp;&nbsp;&nbsp;$(1.06)  | &nbsp;&nbsp;&nbsp;&nbsp;$0.42  | &nbsp;&nbsp;&nbsp;&nbsp;$1.46  | &nbsp;&nbsp;&nbsp;&nbsp;$3.15  |
| Diluted income (loss) per share — continuing operations | &nbsp;&nbsp;&nbsp;&nbsp;$(0.42)  | &nbsp;&nbsp;&nbsp;&nbsp;$0.95  | &nbsp;&nbsp;&nbsp;&nbsp;$1.95  | &nbsp;&nbsp;&nbsp;&nbsp;$3.25  |
| Diluted income (loss) per share — discontinued operations | &nbsp;&nbsp;&nbsp;&nbsp;$(0.63)  | &nbsp;&nbsp;&nbsp;&nbsp;$(0.53)  | &nbsp;&nbsp;&nbsp;&nbsp;$(0.48)  | &nbsp;&nbsp;&nbsp;&nbsp;$(0.13)  |
| Diluted income (loss) per share attributable to common stockholders | &nbsp;&nbsp;&nbsp;&nbsp;$(1.06)  | &nbsp;&nbsp;&nbsp;&nbsp;$0.42  | &nbsp;&nbsp;&nbsp;&nbsp;$1.46  | &nbsp;&nbsp;&nbsp;&nbsp;$3.12 |

---

F-76<br>

------

#### SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION <br>

#### DECEMBER 31, 2025

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Initial Cost<sup>(b)</sup>** | **Initial Cost<sup>(b)</sup>** | **Costs Capitalized Subsequent** <br>**to Acquisition<sup>(c)</sup>** | **Costs Capitalized Subsequent** <br>**to Acquisition<sup>(c)</sup>** | **Gross Amounts at Which Carried at** <br>**Close of Period<sup>(d)</sup>**  | **Gross Amounts at Which Carried at** <br>**Close of Period<sup>(d)</sup>**  | **Gross Amounts at Which Carried at** <br>**Close of Period<sup>(d)</sup>**  | | | |
| <br>**Name of Center** <br>***thousands*** | <br>**Location** | <br>**Center Type** | <br>**Encumbrances<sup>(a)</sup>** | **Land** | **Buildings and** <br>**Improvements** | **Land<sup>(e)</sup>** | **Buildings and** <br>**Improvements<sup>(e)</sup>** | **Land** | **Buildings and** <br>**Improvements**  | **Total** | <br>**Accumulated** <br>**Depreciation<sup>(f)</sup>** | <br>**Date of** <br>**Construction** | <br>**Date** <br>**Acquired /** <br>**Completed**  |
| **Bridgeland**<br>|  |  |  |  |  |  |  |  |  |  |  |  |  |
| Bridgeland | Cypress, TX | MPC | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$85000  | $260223  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$—  | $262010  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1633  | &nbsp;&nbsp;&nbsp;$522233  | &nbsp;&nbsp;&nbsp;&nbsp;$1633  | &nbsp;&nbsp;&nbsp;$523866  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$(899)  |  | 2004  |
| Bridgeland Predevelopment  | Cypress, TX | Development | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;3004  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;3004  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3004  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |  |  |
| Houston Ground Leases - Bridgeland  | Cypress, TX | Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;4281  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4281  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4281  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |  | Various  |
| Lakeside Row  | Cypress, TX | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35500  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;812  | &nbsp;&nbsp;&nbsp;&nbsp;42875  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;563  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;812  | &nbsp;&nbsp;&nbsp;&nbsp;43438  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44250  | &nbsp;&nbsp;&nbsp;&nbsp;(10574)  | 2018 | 2019  |
| Memorial Hermann Medical Office  | Cypress, TX | Development | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3735  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;9339  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;9339  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9339  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | 2025 |  |
| &nbsp;&nbsp;One Bridgeland Green  | Cypress, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;1118  | &nbsp;&nbsp;&nbsp;&nbsp;33482  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1118  | &nbsp;&nbsp;&nbsp;&nbsp;33482  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34600  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(316)  | 2024 | 2025  |
| Starling at Bridgeland  | Cypress, TX | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37976  | &nbsp;&nbsp;&nbsp;&nbsp;1511  | &nbsp;&nbsp;&nbsp;&nbsp;57505  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;701  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1511  | &nbsp;&nbsp;&nbsp;&nbsp;58206  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59717  | &nbsp;&nbsp;&nbsp;&nbsp;(7169)  | 2021 | 2022  |
| &nbsp;&nbsp;Village Green at Bridgeland Central  | Cypress, TX | Retail | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13793  | &nbsp;&nbsp;&nbsp;&nbsp;1428  | &nbsp;&nbsp;&nbsp;&nbsp;15323  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1428  | &nbsp;&nbsp;&nbsp;&nbsp;15323  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16751  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(519)  | 2024 | 2024  |
| &nbsp;&nbsp;Wingspan  | Cypress, TX | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32400  | &nbsp;&nbsp;&nbsp;&nbsp;1214  | &nbsp;&nbsp;&nbsp;&nbsp;72042  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1214  | &nbsp;&nbsp;&nbsp;&nbsp;72080  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;73294  | &nbsp;&nbsp;&nbsp;&nbsp;(6384)  | 2022 | 2023  |
| **Columbia** <br>|  |  |  |  |  |  |  |  |  |  |  |  |  |
| Color Burst Park Retail  | Columbia, MD | Retail | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;337  | &nbsp;&nbsp;&nbsp;&nbsp;6945  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2107  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;347  | &nbsp;&nbsp;&nbsp;&nbsp;9052  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9399  | &nbsp;&nbsp;&nbsp;&nbsp;(1550)  | 2019 | 2020  |
| Columbia Ground Leases  | Columbia, MD | Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;1271  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;1271  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1271  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(71)  |  | 2024  |
| Columbia Office Properties  | Columbia, MD | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;1175  | &nbsp;&nbsp;&nbsp;&nbsp;14394  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1108)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1175  | &nbsp;&nbsp;&nbsp;&nbsp;13286  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14461  | &nbsp;&nbsp;&nbsp;&nbsp;(7615)  |  | 2004 / 2007  |
| Columbia Parking Garages  | Columbia, MD | Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;42940  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(40)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;42900  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42900  | &nbsp;&nbsp;&nbsp;&nbsp;(7939)  | Various | Various  |
| &nbsp;&nbsp;Columbia Predevelopment  | Columbia, MD | Development | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;36713  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;36713  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36713  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |  |  |
| Juniper  | Columbia, MD | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;116876  | &nbsp;&nbsp;&nbsp;&nbsp;3923  | &nbsp;&nbsp;&nbsp;&nbsp;112435  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9327  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3923  | &nbsp;&nbsp;&nbsp;&nbsp;121762  | &nbsp;&nbsp;&nbsp;&nbsp;125685  | &nbsp;&nbsp;&nbsp;&nbsp;(26311)  | 2018 | 2020  |
| &nbsp;&nbsp;10285 Lakefront Medical Office  | Columbia, MD | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17983  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;48156  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;48156  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48156  | &nbsp;&nbsp;&nbsp;&nbsp;(2220)  | 2022 | 2024  |
| One Mall North  | Columbia, MD | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;7822  | &nbsp;&nbsp;&nbsp;&nbsp;10818  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3817  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7822  | &nbsp;&nbsp;&nbsp;&nbsp;14635  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22457  | &nbsp;&nbsp;&nbsp;&nbsp;(12681)  |  | 2016  |
| &nbsp;&nbsp;Marlow  | Columbia, MD | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75159  | &nbsp;&nbsp;&nbsp;&nbsp;4088  | &nbsp;&nbsp;&nbsp;&nbsp;130083  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3978  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4088  | &nbsp;&nbsp;&nbsp;&nbsp;134061  | &nbsp;&nbsp;&nbsp;&nbsp;138149  | &nbsp;&nbsp;&nbsp;&nbsp;(15566)  | 2021 | 2022  |
| &nbsp;&nbsp;6100 Merriweather  | Columbia, MD | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65800  | &nbsp;&nbsp;&nbsp;&nbsp;2550  | &nbsp;&nbsp;&nbsp;&nbsp;86867  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12519  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2550  | &nbsp;&nbsp;&nbsp;&nbsp;99386  | &nbsp;&nbsp;&nbsp;&nbsp;101936  | &nbsp;&nbsp;&nbsp;&nbsp;(19935)  | 2018 | 2019  |
| One Merriweather  | Columbia, MD | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49800  | &nbsp;&nbsp;&nbsp;&nbsp;1433  | &nbsp;&nbsp;&nbsp;&nbsp;56125  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1082  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1433  | &nbsp;&nbsp;&nbsp;&nbsp;57207  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58640  | &nbsp;&nbsp;&nbsp;&nbsp;(18762)  | 2015 | 2017  |
| Two Merriweather  | Columbia, MD | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25600  | &nbsp;&nbsp;&nbsp;&nbsp;1019  | &nbsp;&nbsp;&nbsp;&nbsp;33016  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5201  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1019  | &nbsp;&nbsp;&nbsp;&nbsp;38217  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39236  | &nbsp;&nbsp;&nbsp;&nbsp;(9352)  | 2016 | 2017  |
| &nbsp;&nbsp;Merriweather District<sup>(g)</sup> | Columbia, MD | Development | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;400  | &nbsp;&nbsp;&nbsp;&nbsp;156861  | &nbsp;&nbsp;&nbsp;&nbsp;(400)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(39356)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;117505  | &nbsp;&nbsp;&nbsp;&nbsp;117505  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |  | Various  |
| &nbsp;&nbsp;Merriweather Row  | Columbia, MD | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58927  | &nbsp;&nbsp;&nbsp;24685  | &nbsp;&nbsp;&nbsp;&nbsp;94824  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62754  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24685  | &nbsp;&nbsp;&nbsp;&nbsp;157578  | &nbsp;&nbsp;&nbsp;&nbsp;182263  | &nbsp;&nbsp;&nbsp;&nbsp;(48418)  |  | 2012/2014  |
| &nbsp;&nbsp;Rouse Building  | Columbia, MD | Retail | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21837  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;28865  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1905  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;30770  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30770  | &nbsp;&nbsp;&nbsp;&nbsp;(9995)  | 2013 | 2014  |
| **Summerlin**<br>|  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Aristocrat  | Las Vegas, NV | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31718  | &nbsp;&nbsp;&nbsp;&nbsp;5004  | &nbsp;&nbsp;&nbsp;&nbsp;34588  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;152  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5004  | &nbsp;&nbsp;&nbsp;&nbsp;34740  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39744  | &nbsp;&nbsp;&nbsp;&nbsp;(9425)  | 2017 | 2018  |
| &nbsp;&nbsp;Constellation  | Las Vegas, NV | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24200  | &nbsp;&nbsp;&nbsp;&nbsp;3069  | &nbsp;&nbsp;&nbsp;&nbsp;39759  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2681  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3069  | &nbsp;&nbsp;&nbsp;&nbsp;42440  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45509  | &nbsp;&nbsp;&nbsp;&nbsp;(12535)  |  | 2017  |
| Downtown Summerlin<sup>(h)(i)</sup> | Las Vegas, NV | Retail/Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1297  | &nbsp;&nbsp;&nbsp;30855  | &nbsp;&nbsp;&nbsp;&nbsp;364100  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30537  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30855  | &nbsp;&nbsp;&nbsp;&nbsp;394637  | &nbsp;&nbsp;&nbsp;&nbsp;425492  | &nbsp;&nbsp;&nbsp;&nbsp;(150337)  | 2013 | 2014 / 2015  |
| Hockey Ground Lease<sup>(h)</sup> | Las Vegas, NV | Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;121  | &nbsp;&nbsp;&nbsp;&nbsp;6705  | &nbsp;&nbsp;&nbsp;&nbsp;2198  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6705  | &nbsp;&nbsp;&nbsp;&nbsp;2198  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8903  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(458)  |  | 2017  |
| Meridian  | Las Vegas, NV | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16690  | &nbsp;&nbsp;&nbsp;&nbsp;4509  | &nbsp;&nbsp;&nbsp;&nbsp;42242  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4509  | &nbsp;&nbsp;&nbsp;&nbsp;42242  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46751  | &nbsp;&nbsp;&nbsp;&nbsp;(2149)  | 2022 | 2024  |
| &nbsp;&nbsp;1700 Pavilion<sup>(h)</sup> | Las Vegas, NV | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75045  | &nbsp;&nbsp;&nbsp;&nbsp;1700  | &nbsp;&nbsp;&nbsp;&nbsp;101760  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11020  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1700  | &nbsp;&nbsp;&nbsp;&nbsp;112780  | &nbsp;&nbsp;&nbsp;&nbsp;114480  | &nbsp;&nbsp;&nbsp;&nbsp;(11902)  | 2021 | 2022  |
| &nbsp;&nbsp;Two Summerlin<sup>(h)</sup> | Las Vegas, NV | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40849  | &nbsp;&nbsp;&nbsp;&nbsp;3037  | &nbsp;&nbsp;&nbsp;&nbsp;47104  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1924  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3037  | &nbsp;&nbsp;&nbsp;&nbsp;49028  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52065  | &nbsp;&nbsp;&nbsp;&nbsp;(13916)  | 2017 | 2018  |
| Summerlin<sup>(h)</sup> | Las Vegas, NV | MPC | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78535  | &nbsp;&nbsp;990179  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;266875  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1298  | &nbsp;&nbsp;1257054  | &nbsp;&nbsp;&nbsp;&nbsp;1298  | &nbsp;&nbsp;1258352  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(856)  |  | 2004  |
| Summerlin Grocery Anchored Center<sup>(h)</sup>  | Las Vegas, NV | Retail | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14986  | &nbsp;&nbsp;&nbsp;&nbsp;4073  | &nbsp;&nbsp;&nbsp;&nbsp;43050  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4073  | &nbsp;&nbsp;&nbsp;&nbsp;43050  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47123  | &nbsp;&nbsp;&nbsp;&nbsp;(1506)  | 2023 | 2024  |
| Summerlin Predevelopment  | Las Vegas, NV | Development | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;25540  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;25540  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25540  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  |  |  |
| &nbsp;&nbsp;Tanager<sup>(h)</sup> | Las Vegas, NV | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58599  | &nbsp;&nbsp;&nbsp;&nbsp;7331  | &nbsp;&nbsp;&nbsp;&nbsp;53978  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1002  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7331  | &nbsp;&nbsp;&nbsp;&nbsp;54980  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62311  | &nbsp;&nbsp;&nbsp;&nbsp;(13743)  | 2017 | 2019  |
| &nbsp;&nbsp;Tanager Echo<sup>(h)</sup> | Las Vegas, NV | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70032  | &nbsp;&nbsp;&nbsp;&nbsp;2302  | &nbsp;&nbsp;&nbsp;&nbsp;86013  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;96  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2302  | &nbsp;&nbsp;&nbsp;&nbsp;86109  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88411  | &nbsp;&nbsp;&nbsp;&nbsp;(8825)  | 2021 | 2023 |
| **Teravalis**<br>|  |  |  |  |  |  |  |  |  |  |  |  |  |
| Teravalis  | Phoenix, AZ | MPC | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;544546  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;312  | &nbsp;&nbsp;&nbsp;&nbsp;2663  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20  | &nbsp;&nbsp;&nbsp;&nbsp;547209  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;332  | &nbsp;&nbsp;&nbsp;&nbsp;547541  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(144)  |  | 2021  |

---

F-77<br>

------

#### **TABLE OF CONTENTS**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Initial Cost<sup>(b)</sup>** | **Initial Cost<sup>(b)</sup>** | **Costs Capitalized Subsequent** <br>**to Acquisition<sup>(c)</sup>** | **Costs Capitalized Subsequent** <br>**to Acquisition<sup>(c)</sup>** | **Gross Amounts at Which Carried at** <br>**Close of Period<sup>(d)</sup>**  | **Gross Amounts at Which Carried at** <br>**Close of Period<sup>(d)</sup>**  | **Gross Amounts at Which Carried at** <br>**Close of Period<sup>(d)</sup>**  | | | |
| <br>**Name of Center** <br>***thousands*** | <br>**Location** | <br>**Center Type** | <br>**Encumbrances<sup>(a)</sup>** | **Land** | **Buildings and** <br>**Improvements** | **Land<sup>(e)</sup>** | **Buildings and** <br>**Improvements<sup>(e)</sup>** | **Land** | **Buildings and** <br>**Improvements**  | **Total** | <br>**Accumulated** <br>**Depreciation<sup>(f)</sup>** | <br>**Date of** <br>**Construction** | <br>**Date** <br>**Acquired /** <br>**Completed**  |
| **The Woodlands**<br>|  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Creekside Park  | The Woodlands, TX | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36179  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;729  | &nbsp;&nbsp;&nbsp;&nbsp;40116  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;713  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;729  | &nbsp;&nbsp;&nbsp;&nbsp;40829  | &nbsp;&nbsp;41558  | &nbsp;&nbsp;&nbsp;&nbsp;(11202)  | 2017 | 2018  |
| &nbsp;&nbsp;Creekside Park The Grove  | The Woodlands, TX | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57000  | &nbsp;&nbsp;&nbsp;1876  | &nbsp;&nbsp;&nbsp;&nbsp;52382  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;352  | &nbsp;&nbsp;&nbsp;1876  | &nbsp;&nbsp;&nbsp;&nbsp;52734  | &nbsp;&nbsp;54610  | &nbsp;&nbsp;&nbsp;&nbsp;(9747)  | 2019 | 2021  |
| &nbsp;&nbsp;Creekside Park West  | The Woodlands, TX | Retail | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15366  | &nbsp;&nbsp;&nbsp;1228  | &nbsp;&nbsp;&nbsp;&nbsp;17922  | &nbsp;&nbsp;&nbsp;(121)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1094  | &nbsp;&nbsp;&nbsp;1107  | &nbsp;&nbsp;&nbsp;&nbsp;19016  | &nbsp;&nbsp;20123  | &nbsp;&nbsp;&nbsp;&nbsp;(3862)  | 2018 | 2019  |
| &nbsp;&nbsp;Grogan's Mill Retail  | The Woodlands, TX | Retail | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;3711  | &nbsp;&nbsp;&nbsp;&nbsp;5928  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;3711  | &nbsp;&nbsp;&nbsp;&nbsp;5928  | &nbsp;&nbsp;&nbsp;9639  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(384)  | 2024 | 2025  |
| Houston Ground Leases - The Woodlands  | The Woodlands, TX | Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;13324  | &nbsp;&nbsp;&nbsp;&nbsp;2582  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;13324  | &nbsp;&nbsp;&nbsp;&nbsp;2582  | &nbsp;&nbsp;15906  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(644)  |  | Various  |
| One Hughes Landing  | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44063  | &nbsp;&nbsp;&nbsp;1678  | &nbsp;&nbsp;&nbsp;&nbsp;34761  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;507  | &nbsp;&nbsp;&nbsp;1678  | &nbsp;&nbsp;&nbsp;&nbsp;35268  | &nbsp;&nbsp;36946  | &nbsp;&nbsp;&nbsp;&nbsp;(12784)  | 2012 | 2013  |
| Two Hughes Landing  | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43554  | &nbsp;&nbsp;&nbsp;1269  | &nbsp;&nbsp;&nbsp;&nbsp;34950  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2416)  | &nbsp;&nbsp;&nbsp;1269  | &nbsp;&nbsp;&nbsp;&nbsp;32534  | &nbsp;&nbsp;33803  | &nbsp;&nbsp;&nbsp;&nbsp;(12483)  | 2013 | 2014  |
| &nbsp;&nbsp;Three Hughes Landing  | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70000  | &nbsp;&nbsp;&nbsp;2626  | &nbsp;&nbsp;&nbsp;&nbsp;46372  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32687  | &nbsp;&nbsp;&nbsp;2626  | &nbsp;&nbsp;&nbsp;&nbsp;79059  | &nbsp;&nbsp;81685  | &nbsp;&nbsp;&nbsp;&nbsp;(27104)  | 2014 | 2016  |
| 1725 Hughes Landing Boulevard  | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67050  | &nbsp;&nbsp;&nbsp;1351  | &nbsp;&nbsp;&nbsp;&nbsp;36764  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26207  | &nbsp;&nbsp;&nbsp;1351  | &nbsp;&nbsp;&nbsp;&nbsp;62971  | &nbsp;&nbsp;64322  | &nbsp;&nbsp;&nbsp;&nbsp;(16184)  | 2013 | 2015  |
| 1735 Hughes Landing Boulevard  | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58793  | &nbsp;&nbsp;&nbsp;3709  | &nbsp;&nbsp;&nbsp;&nbsp;97651  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(264)  | &nbsp;&nbsp;&nbsp;3709  | &nbsp;&nbsp;&nbsp;&nbsp;97387  | &nbsp;&nbsp;101096  | &nbsp;&nbsp;&nbsp;&nbsp;(43156)  | 2013 | 2015  |
| Hughes Landing Daycare  | The Woodlands, TX | Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;138  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;138  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;138  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | 2018 | 2019  |
| Hughes Landing Retail  | The Woodlands, TX | Retail | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30594  | &nbsp;&nbsp;&nbsp;5184  | &nbsp;&nbsp;&nbsp;&nbsp;32562  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;136  | &nbsp;&nbsp;&nbsp;5184  | &nbsp;&nbsp;&nbsp;&nbsp;32698  | &nbsp;&nbsp;37882  | &nbsp;&nbsp;&nbsp;&nbsp;(11848)  | 2013 | 2015  |
| 1701 Lake Robbins  | The Woodlands, TX | Retail | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;1663  | &nbsp;&nbsp;&nbsp;&nbsp;3725  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;856  | &nbsp;&nbsp;&nbsp;1663  | &nbsp;&nbsp;&nbsp;&nbsp;4581  | &nbsp;&nbsp;&nbsp;6244  | &nbsp;&nbsp;&nbsp;&nbsp;(1515)  |  | 2014  |
| &nbsp;&nbsp;2201 Lake Woodlands Drive  | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;3755  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1220  | &nbsp;&nbsp;&nbsp;3755  | &nbsp;&nbsp;&nbsp;&nbsp;1220  | &nbsp;&nbsp;&nbsp;4975  | &nbsp;&nbsp;&nbsp;&nbsp;(1178)  |  | 2011  |
| Lakefront North  | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50000  | &nbsp;&nbsp;10260  | &nbsp;&nbsp;&nbsp;&nbsp;39357  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17657  | &nbsp;&nbsp;10260  | &nbsp;&nbsp;&nbsp;&nbsp;57014  | &nbsp;&nbsp;67274  | &nbsp;&nbsp;&nbsp;&nbsp;(16348)  |  | 2018  |
| One Lakes Edge  | The Woodlands, TX | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;63884  | &nbsp;&nbsp;&nbsp;1057  | &nbsp;&nbsp;&nbsp;&nbsp;81768  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1227  | &nbsp;&nbsp;&nbsp;1057  | &nbsp;&nbsp;&nbsp;&nbsp;82995  | &nbsp;&nbsp;84052  | &nbsp;&nbsp;&nbsp;&nbsp;(29256)  | 2013 | 2015  |
| &nbsp;&nbsp;Two Lakes Edge  | The Woodlands, TX | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;105000  | &nbsp;&nbsp;&nbsp;1870  | &nbsp;&nbsp;&nbsp;&nbsp;96349  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1375  | &nbsp;&nbsp;&nbsp;1870  | &nbsp;&nbsp;&nbsp;&nbsp;97724  | &nbsp;&nbsp;99594  | &nbsp;&nbsp;&nbsp;&nbsp;(22241)  | 2018 | 2020  |
| Millennium Six Pines  | The Woodlands, TX | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40569  | &nbsp;&nbsp;&nbsp;4000  | &nbsp;&nbsp;&nbsp;&nbsp;54624  | &nbsp;&nbsp;&nbsp;7225  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1047  | &nbsp;&nbsp;11225  | &nbsp;&nbsp;&nbsp;&nbsp;55671  | &nbsp;&nbsp;66896  | &nbsp;&nbsp;&nbsp;&nbsp;(19471)  |  | 2016  |
| Millennium Waterway  | The Woodlands, TX | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51000  | &nbsp;&nbsp;15917  | &nbsp;&nbsp;&nbsp;&nbsp;56002  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1789  | &nbsp;&nbsp;15917  | &nbsp;&nbsp;&nbsp;&nbsp;57791  | &nbsp;&nbsp;73708  | &nbsp;&nbsp;&nbsp;&nbsp;(28700)  |  | 2012  |
| &nbsp;&nbsp;8770 New Trails  | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33894  | &nbsp;&nbsp;&nbsp;2204  | &nbsp;&nbsp;&nbsp;&nbsp;35033  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80  | &nbsp;&nbsp;&nbsp;2204  | &nbsp;&nbsp;&nbsp;&nbsp;35113  | &nbsp;&nbsp;37317  | &nbsp;&nbsp;&nbsp;&nbsp;(9614)  | 2019 | 2020  |
| &nbsp;&nbsp;9303 New Trails  | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7025  | &nbsp;&nbsp;&nbsp;1929  | &nbsp;&nbsp;&nbsp;&nbsp;11915  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2321  | &nbsp;&nbsp;&nbsp;1929  | &nbsp;&nbsp;&nbsp;&nbsp;14236  | &nbsp;&nbsp;16165  | &nbsp;&nbsp;&nbsp;&nbsp;(5391)  |  | 2011  |
| 1 Riva Row  | The Woodlands, TX | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89153  | &nbsp;&nbsp;&nbsp;3226  | &nbsp;&nbsp;&nbsp;&nbsp;140726  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;3226  | &nbsp;&nbsp;&nbsp;&nbsp;140726  | &nbsp;&nbsp;143952  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(309)  | 2023 | 2025  |
| &nbsp;&nbsp;3831 Technology Forest Drive  | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16000  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;514  | &nbsp;&nbsp;&nbsp;&nbsp;14194  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3770  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;514  | &nbsp;&nbsp;&nbsp;&nbsp;17964  | &nbsp;&nbsp;18478  | &nbsp;&nbsp;&nbsp;&nbsp;(8411)  | 2014 | 2014  |
| &nbsp;&nbsp;The Lane at Waterway  | The Woodlands, TX | Multifamily | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37500  | &nbsp;&nbsp;&nbsp;2029  | &nbsp;&nbsp;&nbsp;&nbsp;40033  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;475  | &nbsp;&nbsp;&nbsp;2029  | &nbsp;&nbsp;&nbsp;&nbsp;40508  | &nbsp;&nbsp;42537  | &nbsp;&nbsp;&nbsp;&nbsp;(8571)  | 2019 | 2020  |
| &nbsp;&nbsp;The Ritz-Carlton Residences  | The Woodlands, TX | Development | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110127  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;156083  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;156083  | &nbsp;&nbsp;156083  | &nbsp;&nbsp;&nbsp;&nbsp;(2729)  | 2024 |  |
| &nbsp;&nbsp;The Woodlands  | The Woodlands, TX | MPC | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | 269411  | &nbsp;&nbsp;&nbsp;&nbsp;9814  | &nbsp;&nbsp;(82097)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9744)  | &nbsp;&nbsp;187314  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70  | &nbsp;&nbsp;187384  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(70)  |  | 2011  |

---

F-78<br>

------

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Initial Cost<sup>(b)</sup>** | **Initial Cost<sup>(b)</sup>** | **Costs Capitalized Subsequent** <br>**to Acquisition<sup>(c)</sup>** | **Costs Capitalized Subsequent** <br>**to Acquisition<sup>(c)</sup>** | **Gross Amounts at Which Carried at** <br>**Close of Period<sup>(d)</sup>**  | **Gross Amounts at Which Carried at** <br>**Close of Period<sup>(d)</sup>**  | **Gross Amounts at Which Carried at** <br>**Close of Period<sup>(d)</sup>**  | | | |
| <br>**Name of Center** <br>***thousands*** | <br>**Location** | <br>**Center Type** | <br>**Encumbrances<sup>(a)</sup>** | **Land** | **Buildings and** <br>**Improvements** | **Land<sup>(e)</sup>** | **Buildings and** <br>**Improvements<sup>(e)</sup>** | **Land** | **Buildings and** <br>**Improvements**  | **Total** | <br>**Accumulated** <br>**Depreciation<sup>(f)</sup>** | <br>**Date of** <br>**Construction** | <br>**Date** <br>**Acquired /** <br>**Completed**  |
| The Woodlands Parking Garages  | The Woodlands, TX | Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6885  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3600  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2497  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15140  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9382  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18740  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28122  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4840)  |  | Various  |
| &nbsp;&nbsp;The Woodlands Predevelopment  | The Woodlands, TX | Development | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50481  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50481  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50481  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2153)  |  |  |
| The Woodlands Towers at the Waterway<sup>(j)</sup>  | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;378340  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11044  | &nbsp;&nbsp;&nbsp;&nbsp;437561  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51340  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11044  | &nbsp;&nbsp;&nbsp;&nbsp;488901  | &nbsp;&nbsp;&nbsp;&nbsp;499945  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(99312)  |  | 2019  |
| The Woodlands Warehouse  | The Woodlands, TX | Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13700  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4480  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4389  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;120  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4480  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4509  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8989  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1085)  |  | 2019  |
| 3 Waterway Square  | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38217  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;748  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42214  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5899  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;748  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48113  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48861  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19134)  | 2012 | 2013  |
| 4 Waterway Square  | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20574  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1430  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51553  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11690  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1430  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;63243  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64673  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25718)  |  | 2011  |
| &nbsp;&nbsp;6 Waterway<sup>(k)</sup> | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9663  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;841  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10279  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1394  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;841  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11673  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12514  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1473)  |  | 2024  |
| 7 Waterway  | The Woodlands, TX | Development | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16377  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16377  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16377  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | 2025 |  |
| &nbsp;&nbsp;20/25 Waterway Avenue  | The Woodlands, TX | Retail | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14339  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2346  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8871  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;756  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2346  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9627  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11973  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3335)  |  | 2011  |
| Waterway Square Retail  | The Woodlands, TX | Retail | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1341  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4255  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1314  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1341  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5569  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6910  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2209)  |  | 2011  |
| &nbsp;&nbsp;1400 Woodloch Forest  | The Woodlands, TX | Office | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1570  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13023  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6098  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1570  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19121  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20691  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9008)  |  | 2011  |
| **The Woodlands Hills**<br>|  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;The Woodlands Hills  | Conroe, TX | MPC | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99284  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;21983  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12  | &nbsp;&nbsp;&nbsp;&nbsp;121267  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12  | &nbsp;&nbsp;&nbsp;&nbsp;121279  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)  |  | 2014  |
| **Ward Village**<br>|  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;'A'ali'i  | Honolulu, HI | Condominium | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;714  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;161  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;875  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;875  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(91)  | 2018 | 2021  |
| Ae'o  | Honolulu, HI | Condominium | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1162  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1162  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1162  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(204)  | 2016 | 2018  |
| Anaha  | Honolulu, HI | Condominium | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1097  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1097  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1097  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(222)  | 2014 | 2017  |
| &nbsp;&nbsp;Kalae  | Honolulu, HI | Development | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74074  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;216451  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;216451  | &nbsp;&nbsp;&nbsp;&nbsp;216451  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | 2024 |  |
| Ke Kilohana  | Honolulu, HI | Condominium | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;656  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;656  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;656  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(109)  | 2016 | 2019  |
| Kewalo Basin Harbor  | Honolulu, HI | Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10489  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24116  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(773)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23343  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23343  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8292)  | 2017 | 2019  |
| Kō'ula  | Honolulu, HI | Condominium | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1184  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1258  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1258  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(107)  | 2019 | 2022  |
| &nbsp;&nbsp;The Park Ward Village  | Honolulu, HI | Development | &nbsp;&nbsp;&nbsp;&nbsp;269930  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;528262  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;528262  | &nbsp;&nbsp;&nbsp;&nbsp;528262  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | 2022 |  |
| Ulana Ward Village  | Honolulu, HI | Condominium | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15315  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15315  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15315  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)  | 2023 | 2025  |
| Victoria Place  | Honolulu, HI | Condominium | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1396  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1396  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1396  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(359)  | 2021 | 2024  |
| &nbsp;&nbsp;Waiea  | Honolulu, HI | Condominium | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1206  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;414  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1620  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1620  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(336)  | 2014 | 2016  |
| Ward Predevelopment  | Honolulu, HI | Development | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24029  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;260109  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;260109  | &nbsp;&nbsp;&nbsp;&nbsp;260109  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6476)  |  |  |
| &nbsp;&nbsp;Ward Village Parking Garages  | Honolulu, HI | Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4448  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;257  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;140353  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4705  | &nbsp;&nbsp;&nbsp;&nbsp;140353  | &nbsp;&nbsp;&nbsp;&nbsp;145058  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(42705)  | 2011 / 2016 | 2013 / 2018  |
| Ward Village Retail  | Honolulu, HI | Retail | &nbsp;&nbsp;&nbsp;&nbsp;161650  | &nbsp;&nbsp;&nbsp;&nbsp;159559  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89321  | &nbsp;&nbsp;(108164)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;204651  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51395  | &nbsp;&nbsp;&nbsp;&nbsp;293972  | &nbsp;&nbsp;&nbsp;&nbsp;345367  | &nbsp;&nbsp;&nbsp;&nbsp;(114673)  | Various | Various  |
| **Total excluding Corporate and Deferred financing costs** | **Total excluding Corporate and Deferred financing costs** | **Total excluding Corporate and Deferred financing costs** | &nbsp;&nbsp;&nbsp;&nbsp;**3094214**  | &nbsp;&nbsp;**2569963**  | &nbsp;&nbsp;&nbsp;**4859732**  | &nbsp;&nbsp;&nbsp;**372738**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**633583**  | &nbsp;&nbsp;**2942701**  | &nbsp;&nbsp;&nbsp;**5493315**  | &nbsp;&nbsp;**8436016**  | &nbsp;&nbsp;**(1077125)**  |  |  |
| Corporate | Various |  | &nbsp;&nbsp;&nbsp;&nbsp;2050000  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;885  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1027  | &nbsp;&nbsp;&nbsp;&nbsp;(885)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12136  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13163  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13163  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4999)  |  |  |
| Deferred financing costs | N/A |  | &nbsp;&nbsp;&nbsp;&nbsp;(34386)  |  |  |  |  |  |  |  |  |  |  |
|  |  | **Total** | &nbsp;&nbsp;&nbsp;&nbsp;**$5109828** | **$2570848** | &nbsp;&nbsp;&nbsp;**$4860759** | **$371853** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$645719** | **$2942701** | &nbsp;&nbsp;&nbsp;**$5506478** | **$8449179** | &nbsp;&nbsp;**$(1082124)** |  |  |

---

(a)<br> Refer to Note 9 - *Mortgages, Notes, and Loans Payable, Net* for additional information.

(b) The initial cost for developed projects includes costs incurred through the end of the first complete calendar year after the asset is placed in service; for projects undergoing development or redevelopment, it includes all costs incurred up to the end of the reporting period; for acquired properties not in need of redevelopment, it represents the acquisition cost. 

F-79<br>

------

(c)<br> For retail and other properties, costs capitalized subsequent to acquisitions is net of cost of disposals or other property write-downs. For MPCs, costs capitalized subsequent to acquisitions are net of the cost of land sales.

(d) The aggregate cost of land, buildings, and improvements for federal income tax purposes is approximately $6.2 billion. 

(e)<br> Reductions in Land reflect transfers to Buildings and Improvements for projects which the Company is internally developing.

(f)<br> Depreciation is based upon the useful lives in Note 1 - *Presentation of Financial Statements and Significant Accounting Policies*.

(g) Includes amounts from the Lakefront District development that is now considered a part of Merriweather District following rebranding efforts for the area. 

(h)<br> Encumbrances balance either represents or is inclusive of SIDs.

(i)<br> Downtown Summerlin includes the One Summerlin office property, which was placed in service in 2015.

(j)<br> The Woodlands Towers at the Waterway includes 1201 Lake Robbins and 9950 Woodloch Forest.

(k)<br> In 2025, the Company rebranded 6 Waterway (formerly Waterway Plaza II).

F-80<br>

------

---

| | | | |
|:---|:---|:---|:---|
| **Reconciliation of Real Estate** <br>***thousands*** | **2025** | **2024** | **2023**  |
| &nbsp;&nbsp;Balance at January 1 | **$7997009**  | $7558809  | $6854826  |
| Additions | &nbsp;&nbsp;**1226214**  | &nbsp;&nbsp;1431478  | &nbsp;&nbsp;1160786  |
| Dispositions, write-offs, and land and condominium costs of sales | &nbsp;&nbsp;&nbsp;**(774044)**  | &nbsp;&nbsp;&nbsp;(993278)  | &nbsp;&nbsp;&nbsp;(456803)  |
| &nbsp;&nbsp;Balance at December 31 | **$8449179**  | $7997009  | $7558809 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Reconciliation of Accumulated Depreciation** <br>***thousands*** | **2025** | **2024** | **2023**  |
| &nbsp;&nbsp;Balance at January 1 | &nbsp;&nbsp;**$949533**  | $829018  | $717270  |
| Depreciation Expense | &nbsp;&nbsp;&nbsp;&nbsp;**164031**  | &nbsp;&nbsp;160638  | &nbsp;&nbsp;151881  |
| Dispositions and write-offs | &nbsp;&nbsp;&nbsp;&nbsp;**(31440)**  | &nbsp;&nbsp;(40123)  | &nbsp;&nbsp;(40133)  |
| &nbsp;&nbsp;Balance at December 31 | **$1082124**  | $949533  | $829018 |

---

F-81<br>

------

## Pershing Square Inc.

#### Common Stock
![](logo_pershingsquareinc.jpg)<br>

#### PRELIMINARY PROSPECTUS

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026

### Citigroup<br>

### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

### UBS Investment Bank<br>

### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

### BofA Securities<br>

### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

### Jefferies<br>

### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

### Wells Fargo Securities
**Through and including , 2026 (the 25th day after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter.** 

------

#### **TABLE OF CONTENTS**

#### PART II <br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

#### INFORMATION NOT REQUIRED IN PROSPECTUS

---

| | |
|:---|:---|
| **ITEM 13.**<br>| **OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.**  |

---

The following table sets forth the expenses payable by the registrant expected to be incurred in connection with the issuance and distribution of the shares of common stock being registered hereby (other than underwriting discounts and commissions). All of such expenses are estimates, other than the filing and listing fees payable to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, Inc. and the NYSE.

---

| | |
|:---|:---|
| &nbsp;&nbsp;Filing Fee—Securities and Exchange Commission | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1.49  |
| Fee—Financial Industry Regulatory Authority, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;501.62 |
| Listing Fee—New York Stock Exchange | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\*  |
| Fees of Transfer Agent | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\*  |
| Fees and Expenses of Counsel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\*  |
| Fees and Expenses of Accountants | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\*  |
| Printing Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\*  |
| Miscellaneous Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\*  |
| &nbsp;&nbsp;&nbsp;Total | $\* |

---

\*<br> To be provided by amendment.

---

| | |
|:---|:---|
| **ITEM 14.**<br>| **INDEMNIFICATION OF DIRECTORS AND OFFICERS.**  |

---

We are a Nevada corporation and generally governed by Chapter 78 of the Nevada Revised Statutes ("NRS").

NRS 78.138(7) provides that, subject to limited statutory exceptions and unless the articles of incorporation or an amendment thereto (in each case filed on or after October 1, 2003) provide for greater individual liability, a director or officer is not individually liable to a corporation or its stockholders or creditors for any damages as a result of any act or failure to act in his or her capacity as a director or officer unless the presumption of Nevada's "business judgment rule" (as codified in NRS 78.138(3)) has been rebutted and it is proven that: (i) the director's or officer's act or failure to act constituted a breach of his or her fiduciary duties as a director or officer and (ii) the breach of those duties involved intentional misconduct, fraud or a knowing violation of law.

NRS 78.7502 permits a corporation to indemnify, pursuant to that statutory provision, a present or former director, officer, employee or agent of the corporation, or of another entity or enterprise (including as a manager of a limited liability company), for which such person is or was serving in such capacity at the request of the corporation, who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, except an action by or in the right of the corporation, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred in connection therewith, arising by reason of such person's service in such capacity if such person (i) is not liable pursuant to NRS 78.138, or (ii) acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the corporation and, with respect to a criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. In the case of actions brought by or in the right of the corporation, however, no indemnification pursuant to NRS 78.7502 may be made for any claim, issue or matter as to which such person has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court in which the action or suit was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.

Any discretionary indemnification pursuant to the statutory mechanism provided under NRS 78.7502, unless ordered by a court or advanced to a director or officer by the corporation in accordance with the NRS, may be made by a corporation only as authorized in each specific case upon a determination that indemnification of the

II-1<br>

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#### **TABLE OF CONTENTS**
director, officer, employee or agent is proper in the circumstances. Such determination must be made (1) by the stockholders, (2) by the board of directors by majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding, (3) if a majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding so orders, by independent legal counsel in a written opinion, or (4) if a quorum consisting of directors who were not parties to the action, suit or proceeding cannot be obtained, by independent legal counsel in a written opinion.

NRS 78.751 further provides that indemnification pursuant to the statutory mechanism provided under NRS 78.7502 does not exclude any other rights to which a person seeking indemnification or advancement of expenses may be entitled under the registrant's articles of incorporation, or any bylaw, agreement, vote of stockholders or disinterested directors or otherwise, for either an action in the person's official capacity or an action in another capacity while holding office, except that indemnification, unless ordered by a court pursuant to NRS 78.7502 or for the advancement of expenses, may not be made to or on behalf of any director or officer finally adjudged by a court of competent jurisdiction, after exhaustion of any appeals, to be liable for intentional misconduct, fraud or a knowing violation of law, and such misconduct, fraud or violation was material to the cause of action. Pursuant to NRS 78.751(5), a right to indemnification or to advancement of expenses arising under a provision of the articles of incorporation or any bylaw is not eliminated or impaired by an amendment to such provision after the occurrence of the act or omission that is the subject of the civil, criminal, administrative or investigative action, suit or proceeding for which indemnification or advancement of expenses is sought, unless the provision in effect at the time of such act or omission explicitly authorizes such elimination or impairment after such act or omission has occurred.

Our governing documents provide that to the fullest extent permitted under Nevada law and other applicable law, that we shall indemnify our directors and officers in their respective capacities as such and in any and all other capacities in which any of them serves at our request. We intend to enter into indemnification agreements with our directors and executive officers. These agreements will require us, subject to limited exceptions, to indemnify these individuals to the fullest extent permitted under Nevada law against liabilities that may arise by reason of their service to us, and to advance expenses they incur as a result of any proceeding to which they are or are threatened to be made a party or participant. Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended, may be permitted to directors or executive officers, we have been informed that, in the opinion of the Securities and Exchange Commission, such indemnification is against public policy and is therefore unenforceable.

The proposed form of Underwriting Agreement to be filed as Exhibit 1.1 to this Registration Statement provides for indemnification to our directors and officers by the underwriters against certain liabilities.

---

| | |
|:---|:---|
| **ITEM 15.**<br>| **RECENT SALES OF UNREGISTERED SECURITIES.**  |

---

The following sets forth information regarding securities sold or issued by the registrant in the three years preceding the date of this registration statement without registration under the Securities Act:

On May 31, 2024 in connection with the Strategic Investment, Pershing Square Holdco, L.P. issued limited partner interests (i) to PS Partner Group in exchange for its limited partner interests in PSCM and (ii) to the Strategic Investors in exchange for their acquisition of minority interests in our business. The issuances were exempt from registration under the Securities Act pursuant to Section 4(a)(2) thereof and Regulation D thereunder as transactions not involving a public offering.

We have agreed to deliver an aggregate of 16.7 million shares of our common stock to the private placement investors, for no additional consideration, as part of the combined private placement. The combined private placement will be settled concurrently with, and will be contingent upon, the closing of the combined offering and the satisfaction of other customary closing conditions. The offer and sale of shares of our common stock as part of the combined private placement were exempt from registration under the Securities Act pursuant to Section 4(a)(2) thereof as transactions not involving a public offering.

---

| | |
|:---|:---|
| **ITEM 16.**<br>| **EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.**  |

---

(a)<br> *Exhibits.* See the Exhibit Index immediately preceding the signature pages hereto, which is incorporated by reference as if fully set forth herein.

II-2<br>

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(b)<br> *Financial Statement Schedules*. All financial statement schedules are omitted because they are not applicable or the information is included in the registrant's consolidated financial statements or related notes.

---

| | |
|:---|:---|
| **ITEM 17.**<br>| **UNDERTAKINGS**  |

---

(1) The undersigned registrant hereby undertakes to provide to the underwriter at the closing specified in the underwriting agreements certificates in such denominations and registered in such names as required by the underwriter to permit prompt delivery to each initial investor in the PSUS IPO. 

(2) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue. 

(3)<br> The undersigned registrant hereby undertakes that:

(A) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b) (1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective. 

(B) For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. 

(C) For the purpose of determining liability under the Securities Act of 1933 to any purchaser, if the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness; provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. 

(D) For the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: 

(i)<br> Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

(ii)<br> Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

II-3<br>

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(iii)<br> The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

(iv)<br> Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

II-4<br>

------

#### EXHIBIT INDEX

---

| | |
|:---|:---|
| 1.1 | Form of Underwriting Agreement\*  |
| [3.1](ny20040230x14_ex3-1.htm) | Form of Articles of Incorporation of Pershing Square Inc. to be in effect prior to the consummation of the offering made under this Registration Statement  |
| [3.2](ny20040230x14_ex3-2.htm) | Form of Bylaws of Pershing Square Inc. to be in effect prior to the consummation of the offering made under this Registration Statement  |
| 5.1 | Opinion of Brownstein Hyatt Farber Schreck, LLP\*  |
| [10.1](ny20040230x14_ex10-1.htm) | Form of Indemnification Agreement  |
| 10.2 | Equity Incentive Plan†\*  |
| 10.3 | Form of Registration Rights Agreement with PS Holdco GP Managing Member, LLC\*  |
| 10.4 | Form of Registration Rights Agreement\*  |
| [10.5](ny20040230x14_ex10-5.htm) | Aircraft Lease Agreement, dated December 11, 2025, by and between WAFH V LLC as Lessor, and Pershing Square Capital Management, L.P., as Lessee |
| [10.6](ny20040230x14_ex10-6.htm) | Pilot and Flight Services Agreement, dated December 18, 2024, by and between Pershing Square Capital Management, L.P. and Executive Jet Management, Inc. |
| [10.7](ny20040230x14_ex10-7.htm) | Third Amended and Restated License Agreement, dated as of January 17, 2020, by and between Pershing Square Capital Management L.P. as Licensor and TABLE Management LP and the Pershing Square Foundation as Licensees |
| [10.8](ny20040230x14_ex10-8.htm)  | Sublease, dated as of December 5, 2022, between Pershing Square Capital Management, L.P. as Sublandlord and NEOX Public Benefit LLC as Subtenant |
| [10.9](ny20040230x14_ex10-9.htm) | Master Lease Agreement, dated as of October 26, 2016, between Georgetown Eleventh Avenue Owners, LLC and Pershing Square Capital Management, L.P. |
| [10.10](ny20040230x14_ex10-10.htm) | Limited Liability Company Agreement of Eleventh Avenue Holdings LLC  |
| 10.11 | Form of Fourth Amended and Restated Agreement of Limited Partnership of Pershing Square Capital Management, L.P.\*  |
| [10.12](ny20040230x14_ex10-12.htm) | PSH Share Agreement°  |
| 10.13 | Form of Amended and Restated Long-Term Incentive Plan†\*  |
| 10.14 | Form of Terms of Redeemable Interests in Pershing Square Partner Group, LLC†\* |
| [10.15](ny20040230x14_ex10-15.htm) | Amended and Restated Variable Compensation Agreement, dated as of March 3, 2026, by and among Pershing Square Holdco, L.P., Pershing Square Capital Management, L.P. and PS CompCo, LLC†  |
| [10.16](ny20040230x14_ex10-16.htm) | Amended and Restated Investment Management Agreement between Pershing Square Holdings, Ltd., a Guernsey limited liability company, and Pershing Square Capital Management, L.P., a Delaware limited partnership  |

---

II-5<br>

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#### **TABLE OF CONTENTS**

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| | |
|:---|:---|
| [10.17](ny20040230x14_ex10-17.htm) | Share Purchase Agreement, dated May 5, 2025, by and between Howard Hughes Holdings Inc. and Pershing Square Holdco, L.P.  |
| [10.18](ny20040230x14_ex10-18.htm) | Services Agreement, dated May 5, 2025, by and between Howard Hughes Holdings Inc. and Pershing Square Capital Management, L.P. |
| [10.19](ny20040230x14_ex10-19.htm) | Shareholder Agreement, dated May 5, 2025, by and between Howard Hughes Holdings Inc., Pershing Square Holdco, L.P. and Pershing Square Capital Management, L.P. |
| [10.20](ny20040230x14_ex10-20.htm) | Standstill Agreement, dated May 5, 2025, by and between Howard Hughes Holdings Inc. and Pershing Square Holdco, L.P.  |
| [10.21](ny20040230x14_ex10-21.htm) | Registration Rights Agreement, dated May 5, 2025, by and between Howard Hughes Holdings Inc., Pershing Square Holdco, L.P. and Pershing Square Capital Management, L.P., on behalf of certain of its affiliates |
| [10.22](ny20040230x14_ex10-22.htm) | Investment Management Agreement, dated October 10, 2025, by and between Pershing Square USA, Ltd., a Delaware statutory trust, and Pershing Square Capital Management, L.P., a Delaware limited partnership  |
| [10.23](ny20040230x14_ex10-23.htm) | Third Amended and Restated Line of Credit Note, dated as of January 31, 2021, between Pershing Square Capital Management, L.P. and JPMorgan Chase Bank, N.A. |
| [10.24](ny20040230x14_ex10-24.htm) | Amendment No. 1 to the Line of Credit Note, dated as of September 12, 2022, between Pershing Square Capital Management, L.P. and JPMorgan Chase Bank, N.A. |
| [10.25](ny20040230x14_ex10-25.htm) | Amendment No. 2 to the Line of Credit Note, dated as of January 6, 2023, between Pershing Square Capital Management, L.P. and JPMorgan Chase Bank, N.A. |
| [10.26](ny20040230x14_ex10-26.htm) | Amendment No. 3 to the Line of Credit Note, dated as of March 4, 2024, between Pershing Square Capital Management, L.P. and JPMorgan Chase Bank, N.A. |
| [10.27](ny20040230x14_ex10-27.htm) | Line of Credit Note, dated as of December 15, 2021, between Pershing Square Capital Management, L.P. and JPMorgan Chase Bank, N.A. |
| [10.28](ny20040230x14_ex10-28.htm)  | Amendment No. 1 to the Line of Credit Note, dated as of May 17, 2022, between Pershing Square Capital Management, L.P. and JPMorgan Chase Bank, N.A. |
| [10.29](ny20040230x14_ex10-29.htm) | Amendment No. 2 to the Line of Credit Note, dated as of January 6, 2023, between Pershing Square Capital Management, L.P. and JPMorgan Chase Bank, N.A. |
| [10.30](ny20040230x14_ex10-30.htm) | Amendment No. 3 to the Line of Credit Note, dated as of March 4, 2024, between Pershing Square Capital Management, L.P. and JPMorgan Chase Bank, N.A. |
| [10.31](ny20040230x14_ex10-31.htm) | Form of Subscription Agreement for the Combined Private Placement  |
| 21.1 | Subsidiaries of the Registrant<sup>\*</sup>  |
| [23.1](ny20040230x14_ex23-1.htm) | Consent of Ernst & Young LLP  |
| [23.2](ny20040230x14_ex23-2.htm) | Consent of KPMG LLP |

---

II-6<br>

------

---

| | |
|:---|:---|
| 23.3 | Consent of Brownstein Hyatt Farber Schreck, LLP (included as part of Exhibit 5.1)\*  |
| [24.1](#tSIG) | Power of Attorney (included in signature pages of this Registration Statement)  |
| [107](ny20040230x14_ex107.htm) | Filing Fee Table |

---

†<br> Management contract or compensatory plan or arrangement

\*<br> To be filed by amendment

°<br> Certain confidential information contained in this agreement has been omitted because it (i) is not material and (ii) would be competitively harmful if publicly disclosed.

II-7<br>

------

#### SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York, State of New York, on the 10<sup>th</sup> day of March, 2026.

---

| | |
|:---|:---|
| PERSHING SQUARE HOLDCO, L.P.  | PERSHING SQUARE HOLDCO, L.P.  |
| By: | Pershing Square Holdco GP, LLC,<br>its general partner  |
| By: | /s/ William A. Ackman |
| Name: | William A. Ackman  |
| Title: | Authorized Signatory |

---

#### POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints William A. Ackman, Ryan Israel, Halit Coussin, Michael Gonnella and Ben Hakim, and each of them, any of whom may act without joinder of the other, the individual's true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for the person and in his or her name, place and stead, in any and all capacities, to sign this Registration Statement and any or all amendments, including post-effective amendments to the Registration Statement, including a prospectus or an amended prospectus therein and any Registration Statement for the same offering that is to be effective upon filing pursuant to Rule 462 under the Securities Act, and all other documents in connection therewith to be filed with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact as agents or any of them, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement and Power of Attorney have been signed by the following persons in the capacities indicated on the 10<sup>th</sup> day of March, 2026.

---

| | |
|:---|:---|
| **Signature** | **Title**  |
| /s/ William A. Ackman | Chief Executive Officer and Chairman <br>(principal executive officer)  |
| William A. Ackman  | Chief Executive Officer and Chairman <br>(principal executive officer)  |
| /s/ Ryan Israel | Director  |
| Ryan Israel  | Director  |
| /s/ Halit Coussin | Director  |
| Halit Coussin  | Director  |
| /s/ Ben Hakim | Director  |
| Ben Hakim  | Director  |
| /s/ David Coppel Calvo | Director  |
| David Coppel Calvo  | Director  |

---

II-8<br>

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#### **TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **Signature** | **Title**  |
| /s/ Kerry Murphy Healey | Director  |
| Kerry Murphy Healey  | Director  |
| /s/ Orion Hindawi | Director  |
| Orion Hindawi | Director  |
| /s/ Marco Kheirallah | Director  |
| Marco Kheirallah  | Director  |
| /s/ Nicholas M. Lamotte | Director  |
| Nicholas M. Lamotte  | Director  |
| /s/ Michael Gonnella | Chief Financial Officer <br>(principal financial officer and principal accounting officer)  |
| Michael Gonnella | Chief Financial Officer <br>(principal financial officer and principal accounting officer)  |

---

II-9<br>

## Exhibit 3.1

#### Exhibit 3.1

#### ARTICLES OF INCORPORATION

#### OF

#### PERSHING SQUARE INC.

#### ARTICLE I

#### NAME

The name of the Corporation is Pershing Square Inc. (the "<u>Corporation</u>").

#### ARTICLE II

#### REGISTERED OFFICE AND REGISTERED AGENT

Section 2.1.

<u>Registered Office</u>. The registered office of the Corporation shall be the street address of its registered agent in the State of Nevada.

Section 2.2.

<u>Registered Agent</u>. The Corporation may, from time to time, in the manner provided by law, change the registered agent and registered office within the State of Nevada. The Corporation may also maintain an office or offices for the conduct of its business, either within or without the State of Nevada.

#### ARTICLE III

#### PURPOSE

The purpose of the Corporation is to engage in any lawful act or activity for which corporations may now or hereafter be organized under Nevada Revised Statutes (as amended from time to time and including any successor provisions, the "<u>NRS</u>") Chapter 78.

#### ARTICLE IV

#### CAPITAL STOCK

Section 4.1.

<u>Capitalization</u>. The total number of shares of all classes of stock that the Corporation is authorized to issue is 1,100,000,000 shares, divided into two classes as follows: (i) 1,000,000,000 shares of common stock, par value $0.001 per share ("<u>Common Stock</u>") and (ii) 100,000,000 shares of preferred stock, par value $0.001 per share ("<u>Preferred Stock</u>"), of which (x) one share is hereby designated as the "Special Voting Share" (the "<u>Special Voting Share</u>") and (y) the remaining 99,999,999 shares may be designated from time to time in accordance with this <u>Article IV</u>. The number of authorized shares of any of the Common Stock or Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of stockholders of the Corporation entitled to vote thereon, and no vote of the holders of any of the Common Stock or Preferred Stock voting separately as a class shall be required therefor (and any such right otherwise provided under NRS 78.2055(3), 78.207(3) or 78.390(2) is hereby specifically denied), unless a vote of any such holder is expressly required pursuant to these Articles of Incorporation (as the same may be amended and/or restated from time to time, and including any Certificate(s) of Designation (as defined below) relating to any series of Preferred Stock, the "<u>Articles</u>").

1 of 8

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Section 4.2.

<u>Preferred Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) <u>Designation of Series of Preferred Stock</u>. The Board of Directors of the Corporation (the "<u>Board</u>") is hereby expressly authorized, by resolution or resolutions, at any time and from time to time, to provide, out of the authorized but undesignated and unissued shares of Preferred Stock, for one or more series of Preferred Stock and, with respect to each such series, to fix the number of shares constituting such series and the designation of such series, the voting powers (if any) of the shares of such series, and the powers, preferences and relative, participating, optional or other special rights, if any, and any qualifications, limitations or restrictions thereof, of the shares of such series and to cause to be filed with the Nevada Secretary of State a certificate of designation with respect thereto (each, a "<u>Certificate of Designation</u>"). The powers, preferences and relative, participating, optional and other special rights of each series of Preferred Stock, and the qualifications, limitations or restrictions thereof, if any, may differ from those of any and all other series at any time outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <u>Voting Rights of Preferred Stock</u>. Except as otherwise required by law, holders of a series of Preferred Stock, as such, shall be entitled only to such voting rights, if any, as shall expressly be granted thereto by these Articles.

Section 4.3.

<u>Voting Rights of Common Stock and Special Voting Share</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) <u>Common Stock</u>. Subject to <u>Section 4.3(B)</u>, each holder of record of Common Stock, as such, shall be entitled to one vote for each share of Common Stock held of record by such holder on all matters on which stockholders generally or holders of Common Stock as a separate class or series are entitled to vote (whether voting separately as a class or series, or together with any other class(es) or series of the Corporation's capital stock); <u>provided</u> that to the fullest extent permitted by law, holders of Common Stock, as such, shall have no voting power with respect to, and shall not be entitled to vote on, any amendment to these Articles that relates solely to the terms, number of shares, powers, designations, preferences or relative, participating, optional or other special rights (including, without limitation, voting rights), or to qualifications, limitations or restrictions thereof, of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to these Articles or pursuant to the NRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <u>Limitation on Voting Power of Common Stock</u>. Notwithstanding <u>Section 4.3(A)</u>, if at any time any Person (other than PS Holdco GP Managing Member, LLC, a Delaware limited liability company (including its permitted successors and assigns, "<u>ManagementCo</u>"), or any Person of which ManagementCo, or a wholly owned subsidiary of ManagementCo, serves as general partner or managing member or holds a majority by voting power of the interests entitled to vote generally in the election of the board of directors, managers or equivalent governing body of such Person) or group (including, without limitation, any "group" as contemplated by the Securities Exchange Act of 1934, as amended, and the rules and regulations of the U.S. Securities and Exchange Commission thereunder (collectively, the "<u>Exchange Act</u>")) would otherwise directly or indirectly control the power to vote or direct the voting of shares of Common Stock representing (prior to the application of this <u>Section 4.3(B)</u>) more than 24.9% of the aggregate voting power of the then-outstanding shares of Common Stock and the Special Voting Share, collectively, then the shares of Common Stock in excess of such percentage directly or indirectly controlled by such Person or group shall not be entitled to vote on any matter and shall not be considered to be outstanding for purposes of determining the presence of a quorum at a meeting of stockholders, determining or calculating the votes required to take action or for any other similar purpose relating to a vote of the stockholders. For purposes of this <u>Section 4.3(B)</u> and <u>Section 4.6(B)</u>, "<u>Person</u>" shall mean any individual, corporation, general or limited partnership, limited liability company, joint venture, trust, association or any other entity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) <u>Voting Power of the Special Voting Share</u>. The holder of record of the Special Voting Share, as such (in such capacity, the "<u>SVS Holder</u>"), shall be entitled to voting power (which shall in no event be less than one vote) equal to that number of votes required, when taken together with the aggregate voting power of the then-outstanding shares of Common Stock (determined after the application of <u>Section 4.3(B)</u>) over which the SVS Holder then has the power to vote (directly or indirectly), to give the SVS Holder a majority of the aggregate voting power of the Special Voting Share and the then-outstanding shares of Common Stock (determined after the application of <u>Section 4.3(B)</u>). The SVS Holder, as such, shall be entitled to vote on all matters on which stockholders are entitled to vote generally or on which the Special Voting Share is entitled to vote as a separate class or series, or together with any other class(es) or series of the Corporation's capital stock; <u>provided</u> that to the fullest extent permitted by law, the SVS Holder, as such, shall have no voting power with respect to, and shall not be entitled to vote on, any amendment to these Articles that relates solely to the terms of any other outstanding series of Preferred Stock if the holders of such affected series are entitled to vote thereon as a separate class or together with the holders of one or more classes or series of capital stock of the Corporation. Notwithstanding anything to the contrary contained in these Articles, and in addition to any other vote required by the NRS or these Articles, the affirmative vote of the SVS Holder, voting separately as a class, shall be required to alter, amend or repeal this <u>Section 4.3(C)</u> or to adopt any provision inconsistent therewith. Except as otherwise provided in these Articles or required by the NRS, the SVS Holder shall vote together with the holders of Common Stock as a single class on all matters submitted to a vote of the stockholders generally and, if and to the extent that the holders of Common Stock shall vote together with the holders of any other class(es) or series of stock of the Corporation, the SVS Holder shall also vote together with the holders of such other class(es) or series of stock on an equivalent basis as the holders of the Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) <u>No Cumulative Voting</u>. No holder of shares of Common Stock or the Special Voting Share shall have the right to cumulate votes.

Section 4.4.

<u>Dividends and Other Distributions</u>. Subject to the rights, if any, of the holders of any outstanding series of Preferred Stock or any class or series of stock having a preference over or the right to participate with the Common Stock with respect to the payment of dividends and other distributions in cash, property or shares of capital stock of the Corporation and except as otherwise provided by these Articles or the NRS, dividends and other distributions may be declared and paid ratably on the Common Stock out of the funds of the Corporation that are legally available for this purpose at such times and in such amounts as the Board in its discretion shall determine. Except as otherwise provided in <u>Section 4.5</u>, no dividend or other distribution shall be declared or paid on the Special Voting Share. Notwithstanding anything to the contrary in these Articles or the Bylaws (as defined below), the Corporation is hereby specifically allowed to make any distribution that otherwise would be prohibited by NRS 78.288(2)(b).

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Section 4.5.

<u>Liquidation, Dissolution or Winding Up</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation (each, a "<u>Dissolution Event</u>"), after payment or provision for payment of the debts and other liabilities of the Corporation and subject to the right, if any, of the holders of any outstanding series of Preferred Stock or any class or series of stock having a preference over or the right to participate with the Common Stock as to distributions upon dissolution or liquidation or winding up of the Corporation, the holders of all outstanding shares of Common Stock shall be entitled to receive the remaining assets of the Corporation available for distribution to its stockholders ratably in proportion to the number of shares held by each such stockholder. Upon a Dissolution Event, after payment or provision for payment of the debts and other liabilities of the Corporation and subject to the right, if any, of the holders of any outstanding series of Preferred Stock or any class or series of stock having a preference over or the right to participate with the Special Voting Share as to distributions upon such Dissolution Event, and before any payment or distribution of assets is made in respect of Common Stock, the holder of the Special Voting Share shall be entitled only to receive, out of the assets of the Corporation available for distribution, a distribution in an amount equal to $0.001.

Section 4.6.

<u>Transfer Restrictions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) <u>Special Voting Share</u>. To the maximum extent not prohibited under applicable law, the Special Voting Share shall not be sold, assigned, encumbered, pledged, hypothecated, mortgaged, exchanged, given away, or in any other way disposed of or transferred, in whole or in part, voluntarily or involuntarily, by operation of law, pursuant to judicial process, or otherwise (each, a "<u>Transfer</u>") except a Transfer (i) to ManagementCo by operation of law, pursuant to judicial process, or otherwise in the event of any liquidation, dissolution or winding up of the affairs of the initial holder of the Special Voting Share or (ii) to the Corporation for such consideration as is determined by the Board. Any Transfer or purported Transfer of the Special Voting Share not made in accordance with this <u>Section 4.6(A)</u> shall be null and void *ab initio* and of no effect whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <u>Common Stock</u>. Until [●], each Person issued shares of Common Stock pursuant to and at the effective time of the Conversion (as defined below) (each, a "<u>Restricted Stockholder</u>") shall not Transfer, or offer or agree to Transfer, any shares of Common Stock held by such Restricted Stockholder (whether acquired at the effective time of the Conversion or thereafter), and no Restricted Stockholder shall permit any direct or indirect equityholder of such Restricted Stockholder to Transfer its direct or indirect interest in such shares of Common Stock or such Restricted Stockholder, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. with the prior written consent of the Corporation (after approval thereof by the Board), which consent may be withheld in the Corporation's sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. to an Affiliate of such Restricted Stockholder with the prior written consent of the Corporation (after approval thereof by the Board), which consent may not be unreasonably withheld and shall be subject to the Corporation receiving evidence to its reasonable satisfaction that the Transfer to such Affiliate would not expose the Corporation, its subsidiaries, ManagementCo or any other stockholders of the Corporation (or their indirect equityholders), or any investment vehicle, account or other client for which Pershing Square Capital Management, L.P. ("<u>PSCM</u>") or any Affiliate thereof provides investment advisory services (each, a "<u>Client</u>") to adverse legal, tax, accounting or reputational consequences; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. to ManagementCo or another stockholder of the Corporation with the prior written consent of the Corporation (after approval thereof by the Board), which consent may not be unreasonably withheld and shall be subject to the Corporation receiving evidence to its reasonable satisfaction that the Transfer to ManagementCo or such other stockholder of the Corporation would not expose the Corporation, its subsidiaries, ManagementCo or any other stockholders of the Corporation (or their indirect equityholders), or any Client to adverse legal, tax, accounting or reputational consequences;

<u>provided</u>, in each such case, that the applicable transferee acknowledges the restrictions of this <u>Section 4.6(B)</u> and such restrictions are noted conspicuously on the front or back of the stock certificate(s) (or in the statement of information with respect to any uncertificated shares) delivered to such transferee.

Any Transfer or attempted Transfer of any Common Stock in violation of this <u>Section 4.6(B)</u> shall be null and void *ab initio* and of no effect whatsoever.

For purposes of this <u>Section 4.6(B)</u>:

"<u>Affiliate</u>" means, with respect to any Person, (a) any other Person that, directly or indirectly, through one or more intermediaries, is in control of, is controlled by, or is under common control with, such Person or (b) if such Person is a natural Person, such Person's spouse, parents, children and siblings, whether by blood, adoption or marriage, or any trust or similar entity for the benefit of any of the foregoing Persons. For purposes of this definition, "control" of a Person means the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.

"<u>Conversion</u>" means the conversion of Pershing Square Holdco, L.P., a Delaware limited partnership, into, and the continuation of the existence thereof in the form of, the Corporation, pursuant to Section 17-219 of the Delaware Revised Uniform Partnership Act and NRS Chapter 92A.

#### ARTICLE V

#### BYLAWS

In furtherance and not in limitation of the powers conferred by the NRS, the Board is expressly authorized to make, alter, amend, change, add to, rescind or repeal, in whole or in part, the bylaws of the Corporation (as the same may be amended and/or restated from time to time, the "<u>Bylaws</u>") without the assent or vote of the stockholders in any manner not inconsistent with the laws of the State of Nevada or these Articles. In addition, the Bylaws may be amended or repealed in any respect, and new bylaws may be adopted, in each case by the affirmative vote of the holders of at least a majority of the outstanding voting power of the Corporation, voting together as a single class.

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#### ARTICLE VI

#### BOARD OF DIRECTORS

Section 6.1.

<u>Board of Directors</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) <u>Number of Directors</u>. Except as otherwise provided in these Articles or the NRS, the business and affairs of the Corporation shall be managed by or under the direction of the Board. The total number of directors constituting the whole Board shall be determined from time to time exclusively by resolution adopted by the Board, except as otherwise provided for or fixed pursuant to the provisions of <u>Article IV</u>, any Certificate of Designation and this <u>Article VI</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <u>Vacancies</u>. Subject to the rights granted to the holders of any one or more series of Preferred Stock then outstanding, any newly created directorship on the Board that results from an increase in the total number of directors and any vacancy occurring in the Board (whether by death, resignation, retirement, disqualification, removal, change in the total number of directors constituting the whole Board, or other cause) shall be filled by the affirmative vote of a majority of the directors then in office (other than directors elected by the holders of any series of Preferred Stock voting separately as a series or together with one or more series, as the case may be), even if they constitute less than a quorum. Any director elected to fill a vacancy or newly created directorship shall hold office until the next election and when his or her successor shall be elected or appointed and qualified, or until his or her earlier death, resignation, retirement, disqualification or removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) <u>Removal</u>. Any or all of the directors (other than the directors elected by the holders of any series of Preferred Stock voting separately as a series or together with one or more other such series, as the case may be) may be removed at any time either with or without cause by the affirmative vote of at least the minimum percentage of the voting power of all outstanding shares of stock of the Corporation entitled to vote thereon, voting together as a single class, then permitted under the NRS for such vote (which in any event shall not be less than a simple majority).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) <u>Rights of Holders of Preferred Stock</u>. Whenever the holders of any one or more series of Preferred Stock issued by the Corporation shall have the right, voting separately as a series or separately as a class with one or more such other series, to elect directors at an annual or special meeting of stockholders, the election, term of office, removal and other features of such directorships shall be governed by the terms of these Articles applicable thereto. Notwithstanding <u>Section 6.1(A)</u>, the number of directors that may be elected by the holders of any such series of Preferred Stock shall be in addition to the number fixed pursuant to <u>Section 6.1(A)</u>, and the total number of directors constituting the whole Board shall be automatically adjusted accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) <u>Election and Term</u>. Directors of the Corporation need not be elected by written ballot unless the Bylaws shall so provide. Except as otherwise provided in these Articles or the Bylaws, directors of the Corporation shall be elected at each annual meeting of the stockholders and shall serve until the next annual meeting of the stockholders and when their successors are duly elected or appointed and qualified, or until their earlier death, resignation, retirement, disqualification or removal.

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#### ARTICLE VII

#### CALL OF SPECIAL MEETINGS OF STOCKHOLDERS

Subject to the rights of the holders of any series of Preferred Stock, special meetings of the stockholders of the Corporation may be called only by or at the direction of the Board, the chair of the Board or the chief executive officer of the Corporation or by or at the direction of the Board or the chair of the Board at the request of ManagementCo.

#### ARTICLE VIII

#### LIMITATION OF LIABILITY OF DIRECTORS AND OFFICERS

The liability of directors and officers of the Corporation is hereby eliminated or limited to the fullest extent permitted by the NRS. Without limiting the effect of the preceding sentence, if the NRS is amended to further eliminate or limit or authorize corporate action to further eliminate or limit the liability of directors or officers, the liability of directors and officers of the Corporation shall be eliminated or limited to the fullest extent permitted by the NRS, as so amended. Neither any amendment nor repeal of this <u>Article VIII</u>, nor the adoption of any provision of these Articles inconsistent with this <u>Article VIII</u>, shall eliminate, reduce or otherwise adversely affect any limitation on the personal liability of a director or officer of the Corporation existing at the time of such amendment, repeal or adoption of such an inconsistent provision.

#### ARTICLE IX

#### INAPPLICABILITY OF CERTAIN NEVADA STATUTES

Section 9.1.

<u>Nevada "Combinations with Interested Stockholders" Statutes</u>. The Corporation hereby expressly elects not to be governed by the provisions of NRS 78.411 to 78.444, inclusive.

Section 9.2.

<u>Nevada "Acquisition of Controlling Interest" Statutes</u>. The provisions of NRS 78.378 to 78.3793, inclusive, shall not apply to the Corporation or to any acquisition of shares of the Corporation's capital stock.

#### ARTICLE X

#### DERIVATIVE ACTIONS; LIMITED WAIVER OF JURY TRIALS

Section 10.1.

<u>Derivative Actions</u>. The Litigation Demand Committee (as defined below) of the Board shall have, and is hereby delegated, the sole and exclusive authority to consider the merits of any litigation demand on the Board made by a stockholder in accordance with Nevada law and to make decisions and take actions with respect to any such demands, including whether to initiate an action or proceeding. For purposes of this <u>Section 10.1</u>, "<u>Litigation Demand Committee</u>" means a committee of the Board composed entirely of one or more disinterested directors who meet the independence standards (but who need not meet the financial literacy or financial expert qualifications) required to serve on an audit committee of a board of directors established by the Exchange Act and by the national securities exchange on which the Common Stock is listed for trading. At any time there is no Litigation Demand Committee, the Board shall retain and have the authority otherwise delegated to such committee pursuant to this <u>Section 10.1</u>.

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Section 10.2.

<u>Limited Waiver of Jury Trials</u>. To the fullest extent not inconsistent with any applicable U.S. federal laws, any and all "internal actions" (as defined in NRS 78.046) must be tried in a court of competent jurisdiction (subject to the provisions of <u>Section 10.1</u>) before the presiding judge as the trier of fact and not before a jury. This <u>Section 10.2</u> shall conclusively operate as a waiver of the right to trial by jury by each party to any such internal action.

#### ARTICLE XI

#### DEEMED NOTICE AND CONSENT; SEVERABILITY

Section 11.1.

<u>Severability</u>. If any provision or provisions of these Articles shall be held to be invalid, illegal or unenforceable as applied to any circumstance for any reason whatsoever: (i) the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of these Articles (including, without limitation, each portion of any paragraph of these Articles containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) shall not, to the fullest extent permitted by applicable law, in any way be affected or impaired thereby and (ii) to the fullest extent permitted by applicable law, the provisions of these Articles (including, without limitation, each such portion of any paragraph of these Articles containing any such provision held to be invalid, illegal or unenforceable) shall be construed so as to permit the Corporation to protect its directors, officers, employees and agents from individual liability to the fullest extent permitted under Nevada law.

Section 11.2.

<u>Deemed Notice and Consent</u>. To the fullest extent permitted by law, each and every natural person, corporation, general or limited partnership, limited liability company, joint venture, trust, association or any other entity purchasing or otherwise acquiring any interest (of any nature whatsoever) in any shares of the capital stock of the Corporation shall be deemed, by reason of and from and after the time of such purchase or other acquisition, to have notice of and to have consented to all of the provisions of (a) these Articles, (b) the Bylaws and (c) any amendment to the Articles or the Bylaws enacted or adopted in accordance with the Articles, the Bylaws and applicable law.

\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*

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## Exhibit 3.2

#### Exhibit 3.2

BYLAWS

of

PERSHING SQUARE INC.

a Nevada corporation

ARTICLE I

<u>OFFICES</u>

Section 1.1

<u>Principal Office</u>. The principal office and place of business of Pershing Square Inc., a Nevada corporation (the "<u>Corporation</u>"), shall be at such location as is established from time to time by resolution of the board of directors of the Corporation (the "<u>Board of Directors</u>").

Section 1.2

<u>Other Offices</u>. Other offices and places of business either within or without the State of Nevada may be established from time to time by resolution of the Board of Directors or as the business of the Corporation may require as determined by any officer of the Corporation. The street address of the Corporation's registered agent is the registered office of the Corporation in Nevada.

ARTICLE II

<u>STOCKHOLDERS</u>

Section 2.1

<u>Annual Meeting</u>. The annual meeting of the stockholders of the Corporation shall be held at such physical location, if any, and on such date and at such time as may be designated from time to time by the Board of Directors. At the annual meeting, directors shall be elected and any other business may be transacted as may be properly brought before the meeting pursuant to these Bylaws (as amended and/or restated from time to time, these "<u>Bylaws</u>"). Except as otherwise restricted by the articles of incorporation of the Corporation (as amended and/or restated from time to time, the "<u>Articles of Incorporation</u>"), the Board of Directors may postpone, reschedule or cancel any annual meeting of stockholders.

Section 2.2

<u>Special Meetings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to any rights of stockholders set forth in the Articles of Incorporation, special meetings of the stockholders may be called only in the manner provided in the Articles of Incorporation and held at such time as the Board of Directors, the chair of the board or the chief executive officer of the Corporation shall determine and state in the notice of such meeting. Except as otherwise set forth in the Articles of Incorporation, stockholders shall have no right to request or call a special meeting. Except as otherwise restricted by the Articles of Incorporation, the Board of Directors may postpone, reschedule or cancel any special meeting of stockholders previously scheduled by the Board of Directors, the chair of the board or the chief executive officer, *provided, however*, that notwithstanding anything to the contrary herein, with respect to any special meeting of stockholders previously scheduled by the Board of Directors or the chair of the board at the request of PS Holdco GP Managing Member, LLC ("<u>ManagementCo</u>") (as permitted by the Articles of Incorporation), the Board of Directors shall not postpone, reschedule or cancel such special meeting without the approval of all directors then in office unless ManagementCo has consented to such postponement, rescheduling or cancellation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No business shall be acted upon at a special meeting of stockholders except as set forth in the notice of the meeting.

Section 2.3

<u>Place of Meetings</u>. Any meeting of the stockholders of the Corporation to be held at a physical location may be held at the Corporation's registered office in the State of Nevada or at such other physical location in or out of the State of Nevada and the United States as may be designated in the notice of meeting. The Board of Directors may, in its sole discretion, determine that any meeting of the stockholders shall be held exclusively, or simultaneously with the conduct of the meeting at a physical location, by means of remote communication (as described in NRS (as defined below) 78.320(4)) or other available technology permitted under the NRS, in accordance with <u>Section 2.14</u>.

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Section 2.4

<u>Notice of Meetings; Waiver of Notice</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The chief executive officer, the president, any vice president, the secretary, an assistant secretary or any other individual designated by the Board of Directors shall sign and deliver or cause to be delivered to the stockholders written notice of any meeting of stockholders not less than ten (10) days, but not more than sixty (60) days, before the date of such meeting. The notice shall state the physical location, if any, the date and time of the meeting, the means of remote communication, if any, by which the stockholders or the proxies thereof shall be deemed to be present and vote and, in the case of a special meeting, the purpose or purposes for which the meeting is called. The notice shall be delivered in accordance with, and shall contain or be accompanied by such additional information as may be required by, the Nevada Revised Statutes (as amended from time to time, the "<u>NRS</u>"), including, without limitation, NRS 78.379, 92A.120 or 92A.410. Any notice of a meeting of stockholders delivered pursuant to and in accordance with NRS 78.370(9) shall be deemed to have satisfied any and all requirements applicable to such notice under these Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of an annual meeting, subject to <u>Section 2.13</u>, any proper business may be presented for action, except that (i) if a proposed plan of merger, conversion or exchange is submitted to a vote, the notice of the meeting must state that the purpose, or one of the purposes, of the meeting is to consider the plan of merger, conversion or exchange and must contain or be accompanied by a copy or summary of the plan; and (ii) if a proposed action creating dissenter's rights is to be submitted to a vote, the notice of the meeting must state that the stockholders are or may be entitled to assert dissenter's rights under NRS 92A.300 to 92A.500, inclusive, and be accompanied by a copy of those statutes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A copy of the notice shall be personally delivered or mailed postage prepaid to each stockholder of record at the address appearing on the records of the Corporation. Upon mailing, service of the notice is complete, and the time of the notice begins to run from the date upon which the notice is deposited in the mail. If the address of any stockholder does not appear upon the records of the Corporation or is incomplete, it will be sufficient to address any notice to such stockholder at the registered office of the Corporation. Notwithstanding the foregoing and in addition thereto, any notice to stockholders given by the Corporation pursuant to NRS Title 7 (including, without limitation, NRS Chapters 75, 78 and 92A), the Articles of Incorporation or these Bylaws may be given pursuant to any form of electronic transmission permitted under the NRS, if such forms of transmission are consented to in writing by the stockholder receiving such electronically transmitted notice and such consent is filed by the secretary in the corporate records. Notice shall be deemed given (i) by facsimile when directed to a number consented to by the stockholder to receive notice, (ii) by e-mail when directed to an e-mail address consented to by the stockholder to receive notice, (iii) by posting on an electronic network together with a separate notice to the stockholder of the specific posting on the later of the specific posting or the giving of the separate notice or (iv) by any other electronic transmission as consented to by, and when directed to, the stockholder. The stockholder consent necessary to permit electronic transmission to such stockholder shall be deemed revoked and of no force and effect if (A) the Corporation is unable to deliver by electronic transmission two consecutive notices given by the Corporation in accordance with the stockholder's consent and (B) the inability to deliver by electronic transmission becomes known to the secretary, assistant secretary, transfer agent or other agent of the Corporation responsible for the giving of notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The written certificate of an individual signing a notice of meeting, setting forth the substance of the notice or having a copy thereof attached thereto, the date the notice was mailed or personally delivered to the stockholders and the addresses to which the notice was mailed, shall be prima facie evidence of the manner and fact of giving such notice and, in the absence of fraud, an affidavit of the individual signing a notice of a meeting that the notice thereof has been given by a form of electronic transmission shall be prima facie evidence of the facts stated in the affidavit.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any stockholder may waive notice of any meeting by a signed writing or by transmission of an electronic record, either before or after the meeting. Such waiver of notice shall be deemed the equivalent of the giving of such notice.

Section 2.5

<u>Determination of Stockholders of Record</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For the purpose of determining the stockholders entitled to (i) notice of and to vote at any meeting of stockholders or any adjournment thereof, (ii) receive payment of any distribution or the allotment of any rights, or (iii) exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the Board of Directors may fix, in advance, a record date, which shall not be more than sixty (60) days nor less than ten (10) days before the date of such meeting, if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If stockholder action by written consent is permitted under the Articles of Incorporation and these Bylaws, the Board of Directors may adopt a resolution prescribing a date upon which the stockholders of record entitled to give written consent must be determined. The date set by the Board of Directors must not precede or be more than ten (10) days after the date the resolution setting such date is adopted by the Board of Directors. If the Board of Directors does not adopt a resolution setting a date upon which the stockholders of record entitled to give written consent must be determined, and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no prior action by the Board of Directors is required by the NRS, then the date shall be the first date on which a valid written consent is delivered to the Corporation in accordance with the NRS, the Articles of Incorporation and these Bylaws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) prior action by the Board of Directors is required by the NRS, then the date shall be the close of business on the date that the Board of Directors adopts the resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If no record date is fixed, the record date for determining stockholders: (i) entitled to notice of and to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held; and (ii) for any other purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto. A determination of stockholders of record entitled to notice of or to vote at any meeting of stockholders shall apply to any postponement of any meeting of stockholders to a date not more than sixty (60) days after the record date or to any adjournment of the meeting; provided that the Board of Directors may fix a new record date for the adjourned meeting and must fix a new record date if the meeting is adjourned to a date more than sixty (60) days later than the date set for the original meeting.

Section 2.6

<u>Quorum; Adjourned Meetings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless the Articles of Incorporation provide for a different proportion, stockholders holding at least a majority of the voting power of the Corporation's capital stock, represented in person or by proxy (regardless of whether the proxy has authority to vote on any matter), are necessary to constitute a quorum for the transaction of business at any meeting. If, on any issue, voting by classes or series is required by the laws of the State of Nevada, the Articles of Incorporation or these Bylaws, at least a majority of the voting power, represented in person or by proxy (regardless of whether the proxy has authority to vote on any matter), within each such class or series is necessary to constitute a quorum of each such class or series.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a quorum is not represented, a majority of the voting power represented or the person presiding at the meeting may adjourn the meeting from time to time until a quorum shall be represented. At any such adjourned meeting at which a quorum shall be represented, any business may be transacted which might otherwise have been transacted at the adjourned meeting as originally called. When a meeting of stockholders is adjourned to another time or physical location hereunder, notice need not be given of the adjourned meeting if the time and physical location, if any, thereof and means of remote communication, if any, by which stockholders and proxyholders may be deemed present in person and may vote at such meeting are (i) announced at the meeting at which the adjournment is taken, (ii) displayed, during the time scheduled for the meeting, on the same electronic network used to enable stockholders and proxyholders to participate in the meeting by means of remote communication or (iii) set forth in the notice of meeting given in accordance with these Bylaws. However, if a new record date is fixed for the adjourned meeting, notice of the adjourned meeting must be given to each stockholder of record as of the new record date. The stockholders present at a duly convened meeting at which a quorum is present may continue to transact business until adjournment, notwithstanding the departure of enough stockholders to leave less than a quorum of the voting power.

Section 2.7

<u>Voting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise provided in the NRS, the Articles of Incorporation, or any resolution providing for the issuance of preferred stock adopted by the Board of Directors pursuant to authority expressly vested in it by the provisions of the Articles of Incorporation, each stockholder of record, or such stockholder's duly authorized proxy, shall be entitled to one (1) vote for each share of voting stock standing registered in such stockholder's name at the close of business on the record date or the date established by the Board of Directors in connection with stockholder action by written consent, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided in these Bylaws, all votes with respect to shares (including pledged shares) standing in the name of an individual at the close of business on the record date (or the date established by the Board of Directors in connection with stockholder action by written consent, as applicable) shall be cast only by that individual or such individual's duly authorized proxy. With respect to shares held by a representative of the estate of a deceased stockholder, or a guardian, conservator, custodian or trustee, even though the shares do not stand in the name of such holder, votes may be cast by such holder upon proof of such representative capacity. In the case of shares under the control of a receiver, the receiver may vote such shares even though the shares do not stand of record in the name of the receiver but only if and to the extent that the order of a court of competent jurisdiction which appoints the receiver contains the authority to vote such shares. If shares stand of record in the name of a minor, votes may be cast by the duly appointed guardian of the estate of such minor only if such guardian has provided the Corporation with written proof of such appointment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to shares standing of record in the name of another corporation, partnership, limited liability company or other legal entity on the record date, votes may be cast: (i) in the case of a corporation, by such individual as the bylaws of such other corporation prescribe, by such individual as may be appointed by resolution of the board of directors of such other corporation or by such individual (including, without limitation, the officer making the authorization) authorized in writing to do so by the chair of the board, the chief executive officer, the president or any vice president of such corporation; and (ii) in the case of a partnership, limited liability company or other legal entity, by an individual representing such stockholder upon presentation to the Corporation of satisfactory evidence of his or her authority to do so.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary contained in these Bylaws and except for the Corporation's shares held in a fiduciary capacity, the Corporation shall not vote or cause to be voted, directly or indirectly, shares of its own stock owned or held as treasury shares (as defined in NRS 78.283(1)), and such treasury shares shall not be counted in determining the total number of outstanding shares entitled to vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any holder of shares entitled to vote on any matter may cast a portion of the votes in favor of such matter and refrain from casting the remaining votes or cast the same against the proposal, except in the case of elections of directors. If such holder entitled to vote does vote any of such stockholder's shares affirmatively and fails to specify the number of affirmative votes, it will be conclusively presumed that the holder is casting affirmative votes with respect to all shares held.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) With respect to shares standing of record in the name of two or more persons, whether fiduciaries, members of a partnership, joint tenants, tenants in common, spouses as community property, tenants by the entirety, voting trustees or otherwise and shares held by two or more persons (including proxy holders) having the same fiduciary relationship in respect to the same shares, votes may be cast in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If only one person votes, the vote of such person binds all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If more than one person casts votes, the act of the majority so voting binds all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If more than one person casts votes, but the vote is evenly split on a particular matter, the votes shall be deemed cast proportionately, as split.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If a quorum is present, unless the Articles of Incorporation, these Bylaws or the NRS provide for a different proportion, the vote of the holders of a majority of the votes cast shall be required to approve a proposal (other than the election of directors) as the act of the stockholders, unless voting by classes or series is required for any action of the stockholders by the laws of the State of Nevada, the Articles of Incorporation or these Bylaws, in which case the vote of the holders of a majority of the votes cast from each such class or series shall be required to approve such proposal. Notwithstanding the foregoing, if the proposal is one upon which, by express provision of the Articles of Incorporation or of these Bylaws, a different or minimum vote is required, such express provision shall govern and control the decision of such proposal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If a quorum is present, directors shall be elected by a plurality of the votes cast in respect of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 2.8

<u>Proxies</u>. At any meeting of stockholders, any holder of shares entitled to vote may designate, in a manner permitted by the laws of the State of Nevada, another person or persons to act as a proxy or proxies. If a stockholder designates two or more persons to act as proxies, then a majority of those persons present at a meeting has and may exercise all of the powers conferred by the stockholder or, if only one is present, then that one has and may exercise all of the powers conferred by the stockholder, unless the stockholder's designation of proxy provides otherwise. Every proxy shall continue in full force and effect until its expiration or revocation in a manner permitted by the laws of the State of Nevada.

Section 2.9

<u>Stockholder Action by Written Consent</u>. Any action required or permitted to be taken at any annual or special meeting of stockholders of the Corporation may be taken without a meeting if, before or after the action, a written consent thereto is (a) signed by stockholders holding at least a majority of the voting power of the outstanding capital stock of the Corporation entitled to vote on such action (except that if a greater proportion of the voting power would be required for such an action at a meeting, then that proportion of written consents is required), and (b) delivered to the Corporation by delivery to its registered office in the State of Nevada, its principal place of business, or an officer or agent of the Corporation having custody of the books in which proceedings of meetings of stockholders are recorded. Any such delivery made to the Corporation's registered office shall be made by hand, overnight courier or by certified or registered mail, return receipt requested. In no instance where action is duly and properly authorized by written consent need a meeting of stockholders be called or, unless otherwise required by any certificate of designation relating to any series of preferred stock, notice given.

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Section 2.10

<u>Organization</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Meetings of stockholders shall be presided over by the chair of the board, or, in the absence of the chair, by the vice chair of the board, or if there be no vice chair or in the absence of the vice chair, by the chief executive officer, or if there be no chief executive officer or in the absence of the chief executive officer, by the president, or, in the absence of the president, or, in the absence of any of the foregoing persons, by a chair designated by the Board of Directors, or by a chair chosen at the meeting by the stockholders entitled to cast a majority of the votes which all stockholders present in person or by proxy are entitled to cast. The individual acting as chair of the meeting may delegate any or all of his or her authority and responsibilities as such to any director or officer of the Corporation present in person at the meeting. The secretary, or in the absence of the secretary an assistant secretary, shall act as secretary of the meeting, but in the absence of the secretary and any assistant secretary the chair of the board of directors, the chief executive officer or chair of the meeting may appoint any person to act as secretary of the meeting. The Board of Directors may adopt by resolution such rules and regulations for the conduct of the meeting of stockholders as it shall deem appropriate. Except to the extent inconsistent with such rules and regulations as adopted by the Board of Directors, the order of business at each such meeting shall be as determined by the chair of the meeting and the chair of the meeting shall have the right and authority to prescribe such rules, regulations and procedures and to do all such acts and things as are necessary or desirable for the proper conduct of the meeting, including, without limitation, (i) the establishment of procedures for the maintenance of order and safety, (ii) limitation on participation in the meeting to stockholders of record of the Corporation, their duly authorized and constituted proxies and such other persons as the chair of the meeting shall permit, (iii) limitation on the time allotted for consideration of each agenda item and for questions or comments by meeting participants, (iv) restrictions on entry to such meeting after the time prescribed for the commencement thereof and (v) the opening and closing of the voting polls. The Board of Directors, in its discretion, or the chair of the meeting, in his or her discretion, may require that any votes cast at such meeting shall be cast by written ballot.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation may appoint one or more inspectors of elections who may be employees of the Corporation, to act at the meeting or any adjournment thereof and to make a written report thereof. The inspector or inspectors may (i) ascertain the number of shares outstanding and the voting power of each; (ii) determine the number of shares represented at a meeting and the validity of proxies or ballots; (iii) count all votes and ballots; (iv) determine any challenges made to any determination made by the inspector(s); and (v) certify the determination of the number of shares represented at the meeting and the count of all votes and ballots. Such certification and report shall specify such other information as may be required by law. In determining the validity and counting of proxies and ballots cast at any meeting of stockholders of the Corporation, the inspectors may consider such information as is permitted by applicable law. No person who is a candidate for an office at an election may serve as an inspector at such election.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Only such persons who are nominated in accordance with the procedures set forth in <u>Section 2.12</u> shall be eligible to be elected at any meeting of stockholders of the Corporation to serve as directors and only such business shall be conducted at a meeting of stockholders as shall have been brought before the meeting in accordance with the procedures set forth in <u>Section 2.12</u>. If any proposed nomination or business was not made or proposed in compliance with <u>Section 2.12</u> (including proper notice under <u>Section 2.13</u> and including whether the stockholder or beneficial owner, if any, on whose behalf the nomination or proposal is made solicited (or is part of a group which solicited) or did not so solicit, as the case may be, proxies in compliance with such stockholder's representation pursuant to clause (a)(iv)(D) of <u>Section 2.13</u>), then the chair of the meeting shall have the power to declare that such nomination shall be disregarded or that such proposed business shall not be transacted. If the stockholder (or a qualified representative of the stockholder) does not appear at the annual or special meeting of stockholders of the Corporation to present a nomination or proposed business, such nomination shall be disregarded and such proposed business shall not be transacted, notwithstanding that such proposal or nomination is set forth in the notice of meeting or other proxy materials and notwithstanding that proxies in respect of such vote may have been received by the Corporation. For purposes of this <u>Section 2.10</u>, to be considered a qualified representative of the stockholder, a person must be a duly authorized officer, manager or partner of such stockholder or authorized by a writing executed by such stockholder (or a reliable reproduction or electronic transmission of the writing) delivered to the Corporation prior to the making of such nomination or proposal at such meeting by such stockholder stating that such person is authorized to act for such stockholder as proxy at the meeting of stockholders.

Section 2.11

<u>Consent to Meetings</u>. Attendance of a person at a meeting (in person or by remote communication) shall constitute a waiver of notice of such meeting, except when the person objects at the beginning of the meeting to the transaction of any business because the meeting is not lawfully called, noticed or convened and except that attendance at a meeting is not a waiver of any right to object to the consideration of matters not included in the notice, to the extent such notice is required, if such objection is expressly made at the time any such matters are presented at the meeting. Neither the business to be transacted at nor the purpose of any regular or special meeting of stockholders need be specified in any written waiver of notice or consent, except as otherwise provided in these Bylaws.

Section 2.12

<u>Director Nominations and Business Conducted at Meetings of Stockholders</u>. Nominations of persons for election to the Board of Directors of the Corporation and the proposal of business to be considered by the stockholders may be made at an annual meeting of stockholders only (i) by or at the direction of ManagementCo, (ii) by or at the direction of the Board of Directors or the chair of the board or any authorized committee of the Board of Directors, (iii) as provided in the Registration Rights Agreement attached as Exhibit 10.4 to the Corporation's registration statement on Form S-1 (File No. 333-[●]) (with respect to nominations of persons for election to the Board of Directors only) or (iv) by any stockholder of the Corporation who is entitled to vote on such matter at the meeting, who, except in the case of ManagementCo, complied with the notice procedures set forth in <u>Section 2.13</u> and who was a stockholder of record at the time such notice is delivered to the secretary of the Corporation. The number of nominees a stockholder may nominate for election at the annual meeting or a special meeting on such stockholder's own behalf (or in the case of a stockholder giving the notice of on behalf of a beneficial owner, the number of nominees a stockholder may nominate for election at the annual meeting on behalf of such beneficial owner) shall not exceed the number of directors to be elected at such meeting. Except as otherwise provided by law, vacancies occurring in any directorship (whether by death, resignation, retirement, disqualification, removal or other cause) and newly created directorships resulting from any increase in the number of directors shall be filled in accordance with the Articles of Incorporation.

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Section 2.13

<u>Advance Notice of Director Nominations and Stockholder Proposals by Stockholders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) as to each person whom the stockholder proposes to nominate for election or re-election as a director all information relating to such person that is required to be disclosed in solicitations of proxies for election of directors, or is otherwise required, in each case pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), including such person's written consent to being named in the proxy statement as a nominee and accompanying proxy card and to serving as a director if elected, a questionnaire completed and signed by such person (in the form to be provided by the secretary upon written request of any stockholder of record within ten (10) days of such request) with respect to the background and qualification of such proposed nominee and a written representation and agreement (in the form to be provided by the secretary upon written request of any stockholder of record within ten (10) days of such request) that such proposed nominee (A) is not and will not become a party to any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any person or entity as to how such proposed nominee, if elected as a director of the Corporation, will act or vote on any issue or question that has not been disclosed to the Corporation or that could limit or interfere with such proposed nominee's fiduciary duties under applicable law, (B) is not and will not become a party to any agreement, arrangement or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director of the Corporation that has not been disclosed to the Corporation, and (C) would be in compliance, if elected as a director of the Corporation, and will comply with, all applicable publicly disclosed corporate governance, code of conduct and ethics, conflict of interest, confidentiality, corporate opportunities, trading and any other policies and guidelines of the Corporation applicable to directors;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as to any other business that the stockholder proposes to bring before the meeting, a brief description of the business desired to be brought before the meeting, the text of the proposal or business (including the text of any resolutions proposed for consideration and in the event that such business includes a proposal to amend the Bylaws, the language of the proposed amendment), the reasons for conducting such business at the meeting and any substantial interest (within the meaning of Item 5 of Schedule 14A under the Exchange Act) in such business of such stockholder and the beneficial owner, if any, on whose behalf the proposal is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination is made or the business is proposed: (A) the name and address of such stockholder, as they appear on the Corporation's books, and the name and address of such beneficial owner, (B) the class and number of shares of stock of the Corporation which are owned of record by such stockholder and such beneficial owner as of the date of the notice, and a representation that the stockholder will notify the Corporation in writing within five business days after the record date for such meeting of the class and number of shares of stock of the Corporation owned of record by the stockholder and such beneficial owner as of the record date for the meeting, and (C) a representation that the stockholder intends to appear in person or by proxy at the meeting to propose such nomination or business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) as to the stockholder giving the notice or, if the notice is given on behalf of a beneficial owner on whose behalf the nomination is made or the business is proposed, as to such beneficial owner, and if such stockholder or beneficial owner is an entity, as to each director, executive, managing member or control person of such entity (any such person, a "<u>control person</u>"): (A) the class and number of shares of stock of the Corporation which are beneficially owned (as defined below) by such stockholder or beneficial owner and by any control person as of the date of the notice, and a representation that the stockholder will notify the Corporation in writing within five business days after the record date for such meeting of the class and number of shares of stock of the Corporation beneficially owned by such stockholder or beneficial owner and by any control person as of the record date for the meeting, (B) a description of any agreement, arrangement or understanding with respect to the nomination or other business and/or the voting of shares of any class or series of stock of the Corporation between or among such stockholder or beneficial owner or control person or any of their respective affiliates or associates and/or any other person (collectively, "proponent persons"), including, in the case of a nomination, the nominee, including without limitation any agreements, arrangements or understandings relating to any compensation or payments to be paid to any such proposed nominee(s), pertaining to the nomination(s) or other business proposed to be brought before the meeting of stockholders and any agreements that would be required to be disclosed pursuant to Item 5 or Item 6 of Exchange Act Schedule 13D (regardless of whether the requirement to file a Schedule 13D is applicable to the stockholder, beneficial owner or control person) (which description shall identify the name of each other person who is party to such an agreement, arrangement or understanding) and a representation that the stockholder will notify the Corporation in writing within five business days after the record date for such meeting of any such agreement, arrangement or understanding in effect as of the record date for the meeting, (C) a description of any agreement, arrangement or understanding (including any derivative or short positions, profit interests, options, hedging transactions, and borrowed or loaned shares) that has been entered into as of the date of the stockholder's notice by, or on behalf of, such proponent person, the effect or intent of which may be to provide any proponent person, directly or indirectly, with the opportunity to mitigate loss, manage risk or benefit from changes in the share price of any class of the Corporation's stock, transfer to or from the proponent person, in whole or in part, any of the economic consequences of ownership of any security of the Corporation, or maintain, increase or decrease the voting power of the proponent person with respect to shares of any class of stock of the Corporation, and a representation that the stockholder will notify the Corporation in writing within five business days after the record date for such meeting of any such agreement, arrangement or understanding in effect as of the record date for the meeting, (D) a description of any proxy (other than a revocable proxy given in response to a public proxy solicitation made pursuant to, and in accordance with, the Exchange Act), agreement, arrangement, or understanding pursuant to which such stockholder or beneficial owner has or shares a right, directly or indirectly, to vote any shares of any class or series of capital stock of the Corporation; (E) a description of any agreement, arrangement or understanding with respect to any rights to distributions on the shares of any class or series of capital stock of the Corporation, directly or indirectly, owned beneficially by such stockholder or beneficial owner that are separated or separable pursuant to such agreement, arraignment or understanding from the underlying shares of the Corporation; (F) a description of any performance-related fees (other than an asset-based fee) that such stockholder or beneficial owner, directly or indirectly, is entitled to receive based on any increase or decrease in the value of shares of any class of capital stock of the Corporation or any interests described in clause (A) of this <u>Section 2.13(a)(iv)</u>; (G) a representation whether the stockholder or the beneficial owner, if any, and any control person will engage in a solicitation with respect to the nomination or business and, if so, the name of each participant (as defined in Item 4 of Schedule 14A under the Exchange Act) in such solicitation and whether such person intends or is part of a group which intends to (x) deliver a proxy statement and/or form of proxy to holders of at least the percentage of the Corporation's outstanding stock required to approve or adopt the business to be proposed or nomination to be made (in person or by proxy) by the stockholder, (y) otherwise solicit proxies or votes from stockholders in support of such proposal or nomination and/or (z) solicit proxies or votes in support of any proposed nominee in accordance with Rule 14a-19 promulgated under the Exchange Act; and (H) the names and addresses of other stockholders and beneficial owners actually known (without any obligation of inquiry) by any stockholder giving the notice (and/or beneficial owner, if any, on whose behalf the nomination or proposal is made) to support such nomination or proposal, and to the extent known, the class and number of all shares of the Corporation's capital stock owned beneficially and/or of record by such other stockholder(s) and beneficial owner(s); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a certification that the stockholder giving the notice and the beneficial owner(s), if any, on whose behalf the nomination is made or the business is proposed, has or have complied with all applicable federal, state and other legal requirements in connection with such stockholder's and/or each such beneficial owner's acquisition of shares of capital stock or other securities of the Corporation and/or such stockholder's and/or each such beneficial owner's acts or omissions as a stockholder of the Corporation, including, without limitation, in connection with such nomination or proposal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A stockholder providing notice of a proposed nomination for election to the Board of Directors or other business proposed to be brought before a meeting shall update and supplement such notice from time to time to the extent necessary so that the information provided or required to be provided in such notice shall be true and correct (x) as of the record date for determining the stockholders entitled to notice of the meeting and (y) as of the date that is fifteen (15) days prior to the meeting or any adjournment or postponement thereof. For the avoidance of doubt, the obligation to update and supplement as set forth in this <u>Section 2.13(b)</u> or any other section of these Bylaws shall not limit the Corporation's rights with respect to any deficiencies in any stockholder's notice, including, without limitation, any representation required herein, extend any applicable deadlines under these Bylaws or enable or be deemed to permit a stockholder who has previously submitted a stockholder's notice under these Bylaws to amend or update any proposal or to submit any new proposal, including by changing or adding nominees, matters, business and/or resolutions proposed to be brought before a meeting of stockholders. Any such update and supplement shall be delivered in writing to the secretary at the principal offices of the Corporation (i) in the case of any update and supplement required to be made as of the record date for notice of the meeting, not later than five (5) days after the later of such record date and the public announcement of such record date and (ii) in the case of any update or supplement required to be made as of fifteen (15) days prior to the meeting or adjournment or postponement thereof, not later than ten (10) days prior to the date of the meeting or any adjournment or postponement thereof. The Corporation may require any proposed nominee to furnish within ten (10) days of a request therefor such other information as may reasonably be required by the Corporation to determine the eligibility of such proposed nominee to serve as a director of the Corporation, including information relevant to a determination whether such proposed nominee is qualified under the Articles of Incorporation, these Bylaws, the rules or regulations of any stock exchange applicable to the Corporation, or any law or regulation applicable to the Corporation to serve as a director of the Corporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of <u>Section 2.13(a)</u>, a "<u>public announcement</u>" shall mean disclosure (x) in a press release released by the Corporation following its customary procedures and reported by the Dow Jones News Service, Associated Press, Business Wire or PR Newswire or a comparable national news service or is generally available on internet news sites or (y) in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Sections 13, 14 or 15(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of clause (a)(iv)(A) of this <u>Section 2.13</u>, shares shall be treated as "<u>beneficially owned</u>" by a person if the person beneficially owns such shares, directly or indirectly, for purposes of Section 13(d) of the Exchange Act and Regulations 13D and 13G thereunder or has or shares pursuant to any agreement, arrangement or understanding (whether or not in writing): (i) the right to acquire such shares (whether such right is exercisable immediately or only after the passage of time or the fulfillment of a condition or both), (ii) the right to vote such shares, alone or in concert with others and/or (iii) investment power with respect to such shares, including the power to dispose of, or to direct the disposition of, such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the foregoing provisions of this Section 2.13, a stockholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations promulgated thereunder with respect to the matters set forth in this Section 2.13; *provided, however*, that, to the fullest extent permitted by law, any references in these Bylaws to the Exchange Act or the rules and regulations promulgated thereunder are not intended to and shall not limit any requirements applicable to nominations or proposals as to any other business to be considered pursuant to these Bylaws (including clause (iii) of each of the first and second sentences of Section 2.12), and compliance with clause (iii) of each of the first and second sentences of Section 2.12 of these Bylaws shall be the exclusive means for a stockholder other than ManagementCo to make nominations or submit other business. Nothing in these Bylaws shall be deemed to affect any rights of the holders of any class or series preferred stock pursuant to any applicable provision of the Articles of Incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This <u>Section 2.13</u> shall not apply to notice of a proposal to be made by a stockholder if the stockholder has notified the Corporation of his or her intention to present the proposal at an annual or special meeting only pursuant to and in compliance with Rule 14a-8 under the Exchange Act and such proposal has been included in a proxy statement that has been prepared by the Corporation to solicit proxies for such meeting. Notwithstanding anything to the contrary contained in this <u>Section 2.13</u>, ManagementCo shall not be subject to the notice procedures set forth in paragraphs (a), (b) or (d) of this Section 2.13<u> </u>with respect to any annual or special meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the stockholder does not provide the information required under clause (a)(iii)(B) and clauses (a)(iv)(A)-(C) of this <u>Section 2.13</u> to the Corporation within the time frames specified herein, or if the stockholder (or a qualified representative of the stockholder) does not appear at the annual or special meeting of stockholders of the Corporation to present a nomination or proposed business, such nomination shall be disregarded and such proposed business shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the Corporation. The chair of the meeting shall have the power to determine whether notice of a nomination or of any business proposed to be brought before the meeting was properly made in accordance with the procedures set forth in this <u>Section 2.13</u>. Notwithstanding the foregoing provisions hereof, a stockholder shall also comply with all applicable requirements of the Act, and the rules and regulations thereunder with respect to the matters set forth herein. Notwithstanding anything to the contrary in these Bylaws, unless otherwise required by law, if any stockholder or proponent person (i) provides notice pursuant to Rule 14a-19(b) promulgated under the Exchange Act with respect to any proposed nominee and (ii) subsequently fails to comply with the requirements of Rule 14a-19 promulgated under the Exchange Act (or fails to timely provide reasonable evidence sufficient to satisfy the Corporation that such stockholder has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act in accordance with the following sentence), then the nomination of each such proposed nominee shall be disregarded, notwithstanding that the nominee is included as a nominee in the Corporation's proxy statement, notice of meeting or other proxy materials for any annual meeting (or any supplement thereto) and notwithstanding that proxies or votes in respect of the election of such proposed nominees may have been received by the Corporation (which proxies and votes shall be disregarded). If any stockholder or proponent person provides notice pursuant to Rule 14a-19(b) promulgated under the Exchange Act, such stockholder shall deliver to the Corporation, no later than five (5) business days prior to the date of the meeting and any adjournment or postponement thereof, reasonable evidence that it or such stockholder associated person has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act.

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Section 2.14

<u>Meetings Through Remote Communications</u>. Stockholders may participate in a meeting of the stockholders by any means of remote communication utilized by the Corporation, including without limitation, videoconferencing, teleconferencing, webcast or other similar method of communication by which all individuals participating in the meeting can hear each other. If any such means are utilized, the Corporation shall, to the extent required under the NRS, implement reasonable measures to (a) verify the identity of each person participating through such means as a stockholder and (b) provide the stockholders a reasonable opportunity to participate in the meeting and to vote on matters submitted to the stockholders, including an opportunity to communicate, and to read or hear the proceedings of the meeting in a substantially concurrent manner with such proceedings. If any stockholder or proxyholder votes or takes other action at the meeting by means of remote communication, a record of such vote or other action shall be maintained by the Corporation. Participation in a meeting pursuant to this <u>Section 2.14</u> constitutes presence in person at the meeting. Notwithstanding anything to the contrary in these Bylaws, a meeting of stockholders may be held solely by remote communication pursuant to and in accordance with NRS 78.320(4)-(6).

Section 2.15

<u>Delivery to the Corporation.</u> Whenever this Article II requires one or more persons (including a record or beneficial owner of stock), other than ManagementCo, to deliver a document or information to the Corporation or any officer, employee or agent thereof (including any notice, request, questionnaire, revocation, representation or other document or agreement), except as otherwise requested or consented to by the Corporation, such document or information shall be in writing exclusively (and not in an electronic transmission) and shall be delivered exclusively by hand (including, without limitation, overnight courier service) or by certified or registered mail, return receipt requested, and the Corporation shall not be required to accept delivery of any document not in such written form or so delivered.

ARTICLE III

<u>DIRECTORS</u>

Section 3.1

<u>General Powers; Performance of Duties</u>. The business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors, except as otherwise provided in the NRS or the Articles of Incorporation. A member of the Board of Directors, or a member of any committee designated by the Board of Directors shall, in the performance of such person's duties, be fully protected in relying in good faith upon records of the Corporation and upon such information, opinions, reports or statements presented to the Corporation by any of the Corporation's officers or employees, or committees of the Board of Directors, or by any other person as to matters the member reasonably believes are within such other person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Corporation.

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Section 3.2

<u>Number, Tenure, and Qualifications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors shall consist of at least one (1) individual, with the number of directors established and thereafter changed from time to time solely by resolution adopted by the Board of Directors, without the need for an amendment to these Bylaws or the Articles of Incorporation. Each director shall hold office until the next annual meeting of the stockholders and when his or her respective successor shall be elected or appointed and qualified, or until his or her earlier death, retirement, disqualification, resignation or removal. No reduction of the number of directors shall have the effect of removing any director prior to the expiration of his or her term of office. No provision of this <u>Section 3.2</u> shall restrict the right of the Board of Directors to fill vacancies or the right of the stockholders to remove directors, each as provided in these Bylaws.

Section 3.3

<u>Chair of the Board</u>. The Board of Directors shall elect a chair of the board from the members of the Board of Directors, who shall preside at all meetings of the Board of Directors and stockholders at which he or she shall be present and shall have and may exercise such powers as may, from time to time, be assigned to him or her by the Board of Directors, these Bylaws or as provided by law.

Section 3.4

<u>Vice Chair of the Board</u>. The Board of Directors may elect a vice chair of the board from the members of the Board of Directors who shall preside at all meetings of the Board of Directors and stockholders at which he or she shall be present and the chair is not present and shall have and may exercise such powers as may, from time to time, be assigned to him or her by the Board of Directors, these Bylaws or as provided by law.

Section 3.5

<u>Removal and Resignation of Directors</u>. Subject to any rights of the holders of preferred stock, if any, and except as otherwise provided in the NRS or the Articles of Incorporation, any director may be removed at any time either with or without cause by the affirmative vote of stockholders representing at least the minimum percentage of the voting power of the issued and outstanding stock of the Corporation entitled to vote thereon, voting together as a single class, then permitted under the NRS for such vote (which in any event shall not be less than a simple majority). Any director may resign effective upon giving written notice, unless the notice specifies a later time for effectiveness of such resignation, to the chair of the board, the president or the secretary, or in the absence of all of them, any other officer of the Corporation. The acceptance of a resignation shall not be necessary to make it effective unless otherwise expressly provided in the resignation.

Section 3.6

<u>Vacancies; Newly Created Directorships</u>. Subject to any rights of the holders of preferred stock, if any, any vacancies on the Board of Directors resulting from death, resignation, retirement, disqualification, removal from office, or other cause, and newly created directorships resulting from any increase in the authorized number of directors, may be filled by a majority vote of the directors then in office or by a sole remaining director, in either case though less than a quorum, and the director(s) so chosen shall hold office for a term expiring at the next annual meeting of the stockholders and when their respective successors are elected or appointed and qualified, or until their earlier death, retirement, disqualification, resignation or removal. No decrease in the number of directors constituting the Board of Directors shall shorten the term of any incumbent directors.

Section 3.7

<u>Annual and Regular Meetings</u>. The Board of Directors, including directors newly elected, if any, may hold an annual meeting of the Board of Directors without call or notice other than this <u>Section 3.7</u>, to transact such business as the Board of Directors deems necessary or appropriate. The Board of Directors may provide by resolution the physical location, date, and hour for holding regular meetings of the Board of Directors between annual meetings, and if the Board of Directors so provides with respect to a regular meeting, notice of such regular meeting shall not be required.

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Section 3.8

<u>Special Meetings</u>. Subject to any rights of the holders of preferred stock, if any, and except as otherwise required by law, special meetings of the Board of Directors may be called only by the chair of the board, or if there be no chair of the board, by the chief executive officer, or by the president or the secretary, and shall be called by the chair of the board, the chief executive officer, the president, or the secretary upon the request of at least a majority of the Board of Directors. If the chair of the board, or if there be no chair of the board, each of the chief executive officer, the president, and the secretary, fails for any reason to call such special meeting, a special meeting may be called by a notice signed by at least a majority of the Board of Directors. Unless otherwise indicated in the notice thereof, any and all business may be transacted at a special meeting.

Section 3.9

<u>Place of Meetings</u>. Any regular or special meeting of the Board of Directors may be held at such physical location as the Board of Directors, or in the absence of such designation, as the notice calling such meeting, may designate. A waiver of notice signed by the directors may designate any physical location for the holding of such meeting.

Section 3.10

<u>Notice of Meetings</u>. Except as otherwise provided in <u>Section 3.7</u>, there shall be delivered to each director at the address appearing for him or her on the records of the Corporation, at least twenty-four (24) hours before the time of such meeting, a copy of a written notice of any meeting (i) by delivery of such notice personally, (ii) by mailing such notice postage prepaid, (iii) by facsimile, (iv) by overnight courier, or (v) by electronic transmission or electronic writing, including, without limitation, e-mail. If mailed to an address inside the United States, the notice shall be deemed delivered two (2) business days following the date the same is deposited in the United States mail, postage prepaid. If mailed to an address outside the United States, the notice shall be deemed delivered four (4) business days following the date the same is deposited in the United States mail, postage prepaid. If sent via overnight courier, the notice shall be deemed delivered the business day following the delivery of such notice to the courier. If sent via facsimile, the notice shall be deemed delivered upon sender's receipt of confirmation of the successful transmission. If sent by electronic transmission (including, without limitation, e-mail), the notice shall be deemed delivered when directed to the e-mail address of the director appearing on the records of the Corporation and otherwise pursuant to the applicable provisions of NRS Chapter 75. If the address of any director is incomplete or does not appear upon the records of the Corporation, it will be sufficient to address any notice to such director at the registered office of the Corporation. Any director may waive notice of any meeting, and the attendance of a director at a meeting and oral consent entered on the minutes of such meeting shall constitute waiver of notice of the meeting unless such director objects, prior to the transaction of any business, that the meeting was not lawfully called, noticed or convened. Attendance for the express purpose of objecting to the transaction of business thereat because the meeting was not properly called or convened shall not constitute presence or a waiver of notice for purposes hereof.

Section 3.11

<u>Quorum; Adjourned Meetings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A majority of the directors in office, at a meeting duly assembled, is necessary to constitute a quorum for the transaction of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At any meeting of the Board of Directors where a quorum is not present, a majority of those present may adjourn, from time to time, until a quorum is present, and no notice of such adjournment shall be required. At any adjourned meeting where a quorum is present, any business may be transacted which could have been transacted at the meeting originally called.

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Section 3.12

<u>Manner of Acting</u>. Except as provided in <u>Section 3.14</u>, the affirmative vote of a majority of the directors present at a meeting at which a quorum is present is the act of the Board of Directors.

Section 3.13

<u>Meetings Through Electronic Communications</u>. Members of the Board of Directors or of any committee designated by the Board of Directors may participate in a meeting of the Board of Directors or such committee by any means of remote communication utilized by the Corporation, including, without limitation, videoconferencing, teleconferencing, webcast or other similar method of communication by which all individuals participating in the meeting can hear each other. If any such means are utilized, the Corporation shall, to the extent required under the NRS, implement reasonable measures to (a) verify the identity of each person participating through such means as a director or member of the committee, as the case may be, and (b) provide the directors or members of the committee a reasonable opportunity to participate in the meeting and to vote on matters submitted to the directors or members of the committee, including an opportunity to communicate, and to read or hear the proceedings of the meeting in a substantially concurrent manner with such proceedings. Participation in a meeting pursuant to this <u>Section 3.13</u> constitutes presence in person at the meeting.

Section 3.14

<u>Action Without Meeting</u>. Any action required or permitted to be taken at a meeting of the Board of Directors or of a committee thereof may be taken without a meeting if, before or after the action, a written consent thereto is signed by all of the members of the Board of Directors or the committee, excluding any director(s) not required to sign such consent pursuant to and in accordance with NRS 78.315(2). The written consent may be signed manually or electronically (or by any other means then permitted under the NRS) and in counterparts, including, without limitation, counterparts delivered by facsimile or electronic transmission, and shall be filed with the minutes of the proceedings of the Board of Directors or committee.

Section 3.15

<u>Powers and Duties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise restricted by NRS Chapter 78 or the Articles of Incorporation, the Board of Directors has full control over the business and affairs of the Corporation. The Board of Directors may delegate any of its authority to manage, control or conduct the business of the Corporation to any standing or special committee, or to any officer or agent, and to appoint any persons to be agents of the Corporation with such powers, including the power to subdelegate, and upon such terms as it deems fit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board of Directors, in its discretion, or the chair presiding at a meeting of stockholders, in his or her discretion, may submit any contract or act for approval or ratification at any annual meeting of the stockholders or any special meeting properly called and noticed for the purpose of considering any such contract or act, provided a quorum is present.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Board of Directors may, by resolution passed by at least a majority of the Board of Directors, designate one or more committees, provided that each such committee must have at least one director of the Corporation as a member. Unless the Articles of Incorporation, the charter of the committee, or the resolutions designating the committee expressly require that all members of such committee be directors of the Corporation, the Board of Directors may appoint natural persons who are not directors of the Corporation to serve on such committee. The Board of Directors may designate one or more individuals as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not he, she or they constitute a quorum, may unanimously appoint another individual to act at the meeting in the place of any such absent or disqualified member. Subject to applicable law and to the extent provided in the resolution of the Board of Directors, any such committee shall have and may exercise all the powers of the Board of Directors in the management of the business and affairs of the Corporation. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors. The committees shall keep regular minutes of their proceedings and report the same to the Board of Directors when required. Each committee of the Board of Directors may fix its own rules of procedure and shall hold its meetings as provided by such rules, except as may otherwise be provided in the resolution of the Board of Directors designating such committee. Unless otherwise provided in such a resolution, the presence of at least a majority of the members then serving on the committee shall be necessary to constitute a quorum unless there are only one or two members then serving, in which event one member shall constitute a quorum; and all matters shall be determined by a majority vote of the members present at a meeting of the committee at which a quorum is present.

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Section 3.16

<u>Compensation</u>. The Board of Directors, without regard to personal interest, may establish the compensation of directors for services in any capacity. If the Board of Directors establishes the compensation of directors pursuant to this <u>Section 3.16</u>, such compensation is presumed to be fair to the Corporation unless proven unfair by a preponderance of the evidence.

Section 3.17

<u>Organization</u>. Meetings of the Board of Directors shall be presided over by the chair of the board, or in the absence of the chair of the board by the vice chair, or in his or her absence, by a chair chosen at the meeting. The secretary, or in the absence of the secretary, an assistant secretary, shall act as secretary of the meeting, but in the absence of the secretary and any assistant secretary, the chair of the meeting may appoint any person to act as secretary of the meeting. The order of business at each such meeting shall be as determined by the chair of the meeting.

ARTICLE IV

<u>OFFICERS</u>

Section 4.1

<u>Election</u>. The Board of Directors shall elect or appoint at least a president, a secretary and a chief financial officer, or the equivalents thereof in accordance with NRS 78.130(1). The Board of Directors may from time to time, by resolution, elect or appoint such other officers and agents as it may deem advisable, who shall hold office at the pleasure of the Board of Directors, and shall have such powers and duties and be paid such compensation as may be directed by the Board of Directors. The Board of Directors may delegate any of its authority to elect or appoint officers or other agents of the Corporation to the chief executive officer. Each officer of the Corporation shall serve until their respective successors are elected and appointed and shall qualify or until their earlier resignation or removal. Any individual may simultaneously hold two or more offices.

Section 4.2

<u>Removal; Resignation</u>. Any officer or agent may be removed, with or without cause, by the Board of Directors or, if elected or appointed by the chief executive officer, the chief executive officer. Any officer may resign at any time upon written notice to the Corporation. Any such removal or resignation shall be subject to the rights, if any, of the respective parties under any contract between the Corporation and such officer or agent. In the absence, disability or refusal of any officer to exercise and perform such officer's duties, the Board of Directors may delegate to another officer such powers or duties.

Section 4.3

<u>Vacancies</u>. Any vacancy in any office because of death, resignation, removal or otherwise may be filled by the Board of Directors for the unexpired portion of the term of such office.

Section 4.4

<u>Chief Executive Officer</u>. The Board of Directors may elect a chief executive officer who, subject to the supervision and control of the Board of Directors, shall have the ultimate responsibility for the management and control of the business and affairs of the Corporation, and perform such other duties and have such other powers as may be reasonably incident to such responsibility or which are delegated to him or her by the Board of Directors, these Bylaws or as provided by law. If the Board of Directors has not elected a chair or vice chair or in the absence or inability to act as the chair, the chief executive officer shall exercise all of the powers and discharge all of the duties of the chair, but only if the chief executive officer is a director of the Corporation.

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Section 4.5

<u>President</u>. The president, if not the chief executive officer, subject to the supervision and control of the chief executive officer, shall by elected by the Board of Directors or chief executive officer and in general actively supervise and control the business and affairs of the Corporation. The president shall keep the Board of Directors fully informed as the Board of Directors may request and shall consult the Board of Directors concerning the business of the Corporation. The president shall perform such other duties and have such other powers which are delegated and assigned to him or her by the Board of Directors, the chief executive officer, these Bylaws or as provided by law or as normally exercised by a president. If a chief executive officer of the Corporation is not elected or appointed, the president shall also be deemed the chief executive officer of the Corporation.

Section 4.6

<u>Vice Presidents</u>. The Board of Directors or chief executive officer may elect one or more vice presidents. In the absence or disability of the president, or at the president's request, the vice president or vice presidents, in order of their rank as fixed by the Board of Directors, and if not ranked, the vice presidents in the order designated by the Board of Directors, or in the absence of such designation, in the order designated by the president, shall perform all of the duties of the president, and when so acting, shall have all the powers of, and be subject to all the restrictions on the president. Each vice president shall perform such other duties and have such other powers which are delegated and assigned to him or her by the Board of Directors, the chief executive officer, the president, these Bylaws or as provided by law.

Section 4.7

<u>Secretary</u>. The secretary shall attend all meetings of the stockholders, the Board of Directors and any committees thereof, and shall keep, or cause to be kept, the minutes of proceedings thereof in books provided for that purpose. He or she shall keep, or cause to be kept, a register of the stockholders of the Corporation and shall be responsible for the giving of notice of meetings of the stockholders, the Board of Directors and any committees, and shall see that all notices are duly given in accordance with the provisions of these Bylaws or as required by law. The secretary shall be custodian of the corporate seal, if any, the records of the Corporation, the stock certificate books, transfer books and stock ledgers, and such other books and papers as the Board of Directors or any appropriate committee may direct. The secretary shall perform all other duties commonly incident to his or her office and shall perform such other duties which are assigned to him or her by the Board of Directors, the chief executive officer, the president, these Bylaws or as provided by law.

Section 4.8

<u>Assistant Secretaries</u>. An assistant secretary shall, at the request of the secretary, or in the absence or disability of the secretary, perform all the duties of the secretary. He or she shall perform such other duties as are assigned to him or her by the Board of Directors, the chief executive officer, the president, these Bylaws or as provided by law.

Section 4.9

<u>Chief Financial Officer</u>. The chief financial officer shall have the care and custody of, and be responsible for, all of the money, funds, securities, receipts and valuable papers, documents and instruments of the Corporation, and all books and records relating thereto. The chief financial officer shall keep, or cause to be kept, full and accurate books of accounts of the Corporation's transactions, which shall be the property of the Corporation, and shall render financial reports and statements of condition of the Corporation when so requested by the Board of Directors, the chair of the board, the chief executive officer, or the president. The chief financial officer shall perform all other duties commonly incident to his or her office and such other duties as may, from time to time, be assigned to him or her by the Board of Directors, the chief executive officer, the president, these Bylaws or as provided by law. If a treasurer of the Corporation has not been elected or appointed, the chief financial officer shall also be deemed the treasurer of the Corporation.

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Section 4.10

<u>Assistant Treasurers</u>. An assistant treasurer shall, at the request of the chief financial officer, or in the absence or disability of the chief financial officer, perform all the duties of the chief financial officer. He or she shall perform such other duties which are assigned to him or her by the Board of Directors, the chief executive officer, the president, the chief financial officer, the treasurer, these Bylaws or as provided by law.

Section 4.11

<u>Execution of Negotiable Instruments, Deeds and Contracts</u>. All (i) checks, drafts, notes, bonds, bills of exchange, and orders for the payment of money of the Corporation, (ii) deeds, mortgages, proxies, powers of attorney and other written contracts, documents, instruments and agreements to which the Corporation shall be a party and (iii) assignments or endorsements of stock certificates, registered bonds or other securities owned by the Corporation shall be signed in the name of the Corporation by the chief executive officer or secretary or such officers or other persons as the Board of Directors may from time to time designate and with such countersignature, if any, as may be required by the Board of Directors. The Board of Directors may authorize the use of the facsimile or electronic signatures of any such persons. Any officer of the Corporation shall be authorized to attend, act and vote, or designate another officer or an agent of the Corporation to attend, act and vote, at any meeting of the owners of any entity in which the Corporation may own an interest or to take action by written consent in lieu thereof. Such officer or agent, at any such meeting or by such written action, shall possess and may exercise on behalf of the Corporation any and all rights and powers incident to the ownership of such interest.

ARTICLE V

<u>CAPITAL STOCK</u>

Section 5.1

<u>Issuance</u>. Shares of the Corporation's authorized capital stock shall, subject to any provisions or limitations of the laws of the State of Nevada, the Articles of Incorporation or any contracts or agreements to which the Corporation may be a party, be issued in such manner, at such times, upon such conditions and for such consideration as shall be prescribed by the Board of Directors.

Section 5.2

<u>Stock Certificates and Uncertificated Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless the Board of Directors shall otherwise provide by resolution that any shares of stock of the Corporation shall be represented by certificates, the Corporation's stock shall be uncertificated shares. Within a reasonable time after the issuance or transfer of any uncertificated shares on the books of the Corporation, a written statement certifying the number and class (and the designation of the series, if any) of the shares owned by such stockholder in the Corporation and any restrictions on the transfer or registration of such shares imposed by the Articles of Incorporation, these Bylaws, any agreement among stockholders or any agreement between the stockholders and the Corporation shall be sent by or on behalf of the Corporation to the stockholders of record entitled to such uncertificated shares, and, within 10 days after receipt of a written request therefor from the stockholder of record, the Corporation shall provide to such stockholder of record holding uncertificated shares, a written statement confirming the information contained in such written statement previously sent to the stockholder of record. The Corporation may adopt a system of issuance, recordation and transfer of its shares of stock by electronic or other means not involving the issuance of certificates. Except as otherwise expressly provided by the NRS, the rights and obligations of the stockholders of the Corporation shall be identical whether or not their shares of stock are represented by certificates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event the Board of Directors provides by resolution that any shares of stock of the Corporation shall be represented by certificates, such certificates shall be signed by or in the name of the Corporation by (i) the chief executive officer, the president, or a vice president and (ii) the secretary, an assistant secretary, the treasurer or the chief financial officer of the Corporation (or any other two officers or agents so authorized by the Board of Directors), certifying the number of shares of stock owned by him, her or it in the Corporation. Whenever any such certificate is countersigned or otherwise authenticated by a transfer agent or a transfer clerk and by a registrar (other than the Corporation), then facsimile or electronic signatures of any corporate officers or agents, the transfer agent, transfer clerk or the registrar of the Corporation may be printed or lithographed upon the certificate in lieu of the actual signatures. In the event that any officer(s) who have signed, or whose facsimile or electronic signatures have been used on any certificate(s) for stock cease to be an officer or officers because of death, resignation or other reason, before the certificate(s) for stock have been delivered by the Corporation, the certificate(s) may nevertheless be adopted by the Corporation and be issued and delivered as though the person(s) who signed the certificate(s), or whose facsimile or electronic signature(s) have been used thereon, had not ceased to be officer(s) of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each certificate representing shares shall state the following upon the face thereof: the name of the state of the Corporation's organization; the name of the person to whom issued; the number and class of shares and the designation of the series, if any, which such certificate represents; the par value of each share, if any, represented by such certificate or a statement that the shares are without par value. Certificates of stock shall be in such form consistent with law as shall be prescribed by the Board of Directors. No certificate shall be issued until the shares represented thereby are fully paid. In addition to the foregoing, all certificates evidencing shares of the Corporation's stock or other securities issued by the Corporation shall contain such legend or legends as may from time to time be required by the NRS or such other federal, state or local laws or regulations then in effect.

Section 5.3

<u>Surrendered; Lost or Destroyed Certificates</u>. All certificates surrendered to the Corporation, except those representing treasury shares, shall be canceled and no new certificate shall be issued until the former certificate for a like number of shares shall have been canceled, except that in case of a lost, stolen, destroyed or mutilated certificate, a new one may be issued therefor. However, any stockholder applying for the issuance of a stock certificate in lieu of one alleged to have been lost, stolen, destroyed or mutilated shall, prior to the issuance of a replacement, provide the Corporation with his, her or its affidavit of the facts surrounding the loss, theft, destruction or mutilation and, if required by the Board of Directors, an indemnity bond in an amount not less than twice the then-current market value of the stock, and upon such terms as the treasurer or the Board of Directors shall require which shall indemnify the Corporation against any loss, damage, cost or inconvenience arising as a consequence of the issuance of a replacement certificate. Prior to the surrender to the Corporation of the certificate or certificates for a share or shares of stock or notification to the Corporation of the transfer of uncertificated shares with a request to record the transfer of such share or shares, the Corporation may treat the registered owner of such share or shares as the person entitled to receive dividends, to vote, to receive notifications and otherwise to exercise all the rights and powers of an owner of such share or shares. To the fullest extent permitted by law, the Corporation shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of any other person, whether or not it shall have express or other notice thereof.

Section 5.4

<u>Replacement Certificate</u>. When the Articles of Incorporation are amended in any way affecting the statements contained in the certificates for outstanding shares of capital stock of the Corporation or it becomes desirable for any reason, in the discretion of the Board of Directors, including, without limitation, the merger of the Corporation with another Corporation or the conversion or reorganization of the Corporation, to cancel any outstanding certificate for shares and issue a new certificate therefor conforming to the rights of the holder, the Board of Directors may order any holders of outstanding certificates for shares to surrender and exchange the same for new certificates within a reasonable time to be fixed by the Board of Directors. The order may provide that a holder of any certificate(s) ordered to be surrendered shall not be entitled to vote, receive distributions or exercise any other rights of stockholders of record until the holder has complied with the order, but the order operates to suspend such rights only after notice and until compliance.

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Section 5.5

<u>Transfer of Shares</u>. No transfer of stock shall be valid as against the Corporation except on surrender and cancellation of any certificate(s) therefor (to the extent such shares are evidenced by a physical stock certificate) or by due delivery of transfer instructions (in the case of uncertificated shares) and any documents required therefor to the person in charge of the stock and transfer books and ledgers and in compliance with any procedures adopted by the Corporation or its agents and applicable law, and a record shall be made of each such transfer. Certificates representing such shares, if any, shall be cancelled and new certificates (if the shares are to be certificated) or uncertificated shares (if the shares are to be uncertificated) shall thereupon be issued. Whenever any transfer shall be expressly made for collateral security and not absolutely, the collateral nature of the transfer shall be reflected in the entry of transfer in the records of the Corporation. The Corporation shall, subject to applicable law, have power and authority to make such rules and regulations as it may deem necessary or proper concerning the issue, transfer and registration of certificates for shares of stock of the Corporation or uncertificated shares.

Section 5.6

<u>Transfer Agent; Registrars</u>. The Board of Directors may appoint one or more transfer agents, transfer clerks and registrars of transfer and may require all certificates for shares of stock to bear the signature of such transfer agents, transfer clerks and/or registrars of transfer.

Section 5.7

<u>Miscellaneous</u>. The Board of Directors shall have the power and authority to make such rules and regulations not inconsistent herewith as it may deem expedient concerning the issue, transfer, and registration of certificates for shares of the Corporation's stock.

ARTICLE VI

<u>DISTRIBUTIONS</u>

Distributions (as defined in NRS 78.191) may be declared, subject to the provisions of the laws of the State of Nevada and the Articles of Incorporation, by the Board of Directors and may be paid in money, shares of corporate stock, property or any other medium not prohibited under applicable law. The Board of Directors may fix in advance a record date, in accordance with and as provided in <u>Section 2.5</u>, prior to the distribution for the purpose of determining stockholders entitled to receive any distribution.

ARTICLE VII

<u>RECORDS AND REPORTS; CORPORATE SEAL; FISCAL YEAR</u>

Section 7.1

<u>Records</u>. All original records of the Corporation shall be kept at the principal office of the Corporation by or under the direction of the secretary or at such other place or by such other person as may be prescribed by these Bylaws or the Board of Directors.

Section 7.2

<u>Corporate Seal</u>. The Board of Directors may, by resolution, authorize a seal, and the seal may be used by causing it, or a facsimile, to be impressed or affixed or reproduced or otherwise. Except as otherwise specifically provided in these Bylaws, any officer of the Corporation shall have the authority to affix the seal to any document requiring it.

Section 7.3

<u>Fiscal Year-End</u>. The fiscal year-end of the Corporation shall be December 31, or such other date as may be fixed from time to time by resolution of the Board of Directors.

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ARTICLE VIII

<u>INDEMNIFICATION</u>

Section 8.1

<u>Indemnification and Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Indemnification of Directors and Officers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) For purposes of this <u>Article VIII</u>, (A) "<u>Indemnitee</u>" shall mean each director or officer who was or is a party to, or is threatened to be made a party to, or is otherwise involved in, any Proceeding (as defined below), by reason of the fact that he or she is or was a director, officer, employee or agent (including, without limitation, as a trustee, fiduciary, administrator or manager) of the Corporation or any predecessor entity thereof, or is or was serving in any capacity at the request of the Corporation as a director, officer, employee or agent (including, without limitation, as a trustee, fiduciary administrator, partner, member or manager) of, or in any other capacity for, another corporation or any partnership, joint venture, limited liability company, trust, or other enterprise; and (B) "<u>Proceeding</u>" shall mean any threatened, pending, or completed action, suit or proceeding (including, without limitation, an action, suit or proceeding by or in the right of the Corporation), whether civil, criminal, administrative, or investigative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Indemnitee shall be indemnified and held harmless by the Corporation to the fullest extent permitted by the laws of the State of Nevada, against all expense, liability and loss (including, without limitation, attorneys' fees, judgments, fines, taxes, penalties, and amounts paid or to be paid in settlement) reasonably incurred or suffered by the Indemnitee in connection with any Proceeding; provided that such Indemnitee either is not liable pursuant to NRS 78.138 or acted in good faith and in a manner such Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation and, with respect to any Proceeding that is criminal in nature, had no reasonable cause to believe that his or her conduct was unlawful. The termination of any Proceeding by judgment, order, settlement, conviction or upon a plea of *nolo contendere* or its equivalent, does not, of itself, create a presumption that the Indemnitee is liable pursuant to NRS 78.138 or did not act in good faith and in a manner in which he or she reasonably believed to be in or not opposed to the best interests of the Corporation, or that, with respect to any criminal proceeding he or she had reasonable cause to believe that his or her conduct was unlawful. The Corporation shall not indemnify an Indemnitee for any claim, issue or matter as to which the Indemnitee has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the Corporation or for any amounts paid in settlement to the Corporation, unless and only to the extent that the court in which the Proceeding was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances of the case, the Indemnitee is fairly and reasonably entitled to indemnity for such amounts as the court deems proper. Except as so ordered by a court and for advancement of expenses pursuant to this <u>Section 8.1</u>, indemnification may not be made to or on behalf of an Indemnitee if a final adjudication establishes that his or her acts or omissions involved intentional misconduct, fraud or a knowing violation of law and was material to the cause of action. Notwithstanding anything to the contrary contained in these Bylaws, no director or officer may be indemnified for expenses incurred in defending any threatened, pending, or completed action, suit or proceeding (including without limitation, an action, suit or proceeding by or in the right of the Corporation), whether civil, criminal, administrative or investigative, that such director or officer incurred in his or her capacity as a stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Indemnification pursuant to this <u>Section 8.1</u> shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Corporation or any predecessor entity thereof or a director, officer, employee, agent, partner, member, manager or fiduciary of, or to serve in any other capacity for, another corporation or any partnership, joint venture, limited liability company, trust, or other enterprise and shall inure to the benefit of his or her heirs, executors and administrators.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The expenses of Indemnitees must be paid by the Corporation or through insurance purchased and maintained by the Corporation or through other financial arrangements made by the Corporation, as such expenses are incurred and in advance of the final disposition of the Proceeding, upon receipt of an undertaking by or on behalf of such Indemnitee to repay the amount if it is ultimately determined by a court of competent jurisdiction that he or she is not entitled to be indemnified by the Corporation. To the extent that an Indemnitee is successful on the merits or otherwise in defense of any Proceeding, or in the defense of any claim, issue or matter therein, the Corporation shall indemnify him or her against expenses, including attorneys' fees, actually and reasonably incurred in by him or her in connection with the defense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification of Employees and Other Persons</u>. The Corporation may, by action of its Board of Directors and to the extent provided in such action, indemnify employees and other persons as though they were Indemnitees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Exclusivity of Rights</u>. The rights to indemnification provided in this <u>Article VIII</u> shall not be exclusive of any other rights that any person may have or hereafter acquire under any statute, provision of the Articles of Incorporation or these Bylaws, agreement, vote of stockholders or directors, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Insurance</u>. The Corporation may purchase and maintain insurance or make other financial arrangements on behalf of any Indemnitee for any liability asserted against him or her and liability and expenses incurred by him or her in his or her capacity as a director, officer, employee, member, managing member or agent, or arising out of his or her status as such, whether or not the Corporation has the authority to indemnify him or her against such liability and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Other Financial Arrangements</u>. The other financial arrangements which may be made by the Corporation may include the following (i) the creation of a trust fund; (ii) the establishment of a program of self-insurance; (iii) the securing of its obligation of indemnification by granting a security interest or other lien on any assets of the Corporation; and (iv) the establishment of a letter of credit, guarantee or surety. No financial arrangement made pursuant to this subsection may provide protection for a person adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable for intentional misconduct, fraud, or a knowing violation of law, except with respect to advancement of expenses or indemnification ordered by a court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Other Matters Relating to Insurance or Financial Arrangements</u>. Any insurance or other financial arrangement made on behalf of a person pursuant to this <u>Section 8.1</u> may be provided by the Corporation or any other person approved by the Board of Directors, even if all or part of the other person's stock or other securities is owned by the Corporation. In the absence of fraud, (i) the decision of the Board of Directors as to the propriety of the terms and conditions of any insurance or other financial arrangement made pursuant to this <u>Section 8.1</u> and the choice of the person to provide the insurance or other financial arrangement is conclusive; and (ii) the insurance or other financial arrangement is not void or voidable and does not subject any director approving it to personal liability for his action; even if a director approving the insurance or other financial arrangement is a beneficiary of the insurance or other financial arrangement.

Section 8.2

<u>Amendment</u>. The provisions of this <u>Article VIII</u> relating to indemnification shall constitute a contract between the Corporation and each of its directors and officers which may be modified as to any director or officer only with that person's consent or as specifically provided in this <u>Section 8.2</u>. Notwithstanding any other provision of these Bylaws relating to their amendment generally, any repeal or amendment of this <u>Article VIII</u> which is adverse to any director or officer shall apply to such director or officer only on a prospective basis, and shall not limit the rights of an Indemnitee to indemnification with respect to any action or failure to act occurring prior to the time of such repeal or amendment. Notwithstanding any other provision of these Bylaws (including, without limitation, <u>Article X</u>), no repeal or amendment of these Bylaws shall affect any or all of this <u>Article VIII</u> so as to limit or reduce the indemnification in any manner unless adopted by (i) the unanimous vote of the directors of the Corporation then serving, or (ii) by the stockholders as set forth in <u>Article X</u>; provided that no such amendment shall have a retroactive effect inconsistent with the preceding sentence.

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ARTICLE IX

<u>CHANGES IN NEVADA LAW</u>

References in these Bylaws to the laws of the State of Nevada or the NRS or to any provision thereof shall be to such law as it existed on the date these Bylaws were adopted or as such law thereafter may be changed; provided that (i) in the case of any change which expands the liability of directors or officers or limits the indemnification rights or the rights to advancement of expenses which the Corporation may provide in <u>Article VIII</u>, the rights to limited liability, to indemnification and to the advancement of expenses provided in the Articles of Incorporation and/or these Bylaws shall continue as theretofore to the extent permitted by law; and (ii) if such change permits the Corporation, without the requirement of any further action by stockholders or directors, to limit further the liability of directors or limit the liability of officers or to provide broader indemnification rights or rights to the advancement of expenses than the Corporation was permitted to provide prior to such change, then liability thereupon shall be so limited and the rights to indemnification and the advancement of expenses shall be so broadened to the extent permitted by law.

ARTICLE X

<u>FORUM FOR ADJUDICATION OF DISPUTES</u>

Section 10.1

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Section 10.2

<u>Deemed Notice and Consent</u>. To the fullest extent permitted by law, each and every natural person, corporation, general or limited partnership, limited liability company, joint venture, trust, association or any other entity purchasing or otherwise acquiring any interest (of any nature whatsoever) in any shares of the capital stock of the Corporation shall be deemed, by reason of and from and after the time of such purchase or other acquisition, to have notice of and to have consented to all of the provisions of (a) these Bylaws (including this Article XI), (b) the Articles of Incorporation and (c) any amendment to these Bylaws or the Articles of Incorporation enacted or adopted in accordance with these Bylaws, the Articles of Incorporation and applicable law.

Section 10.3

<u>Severability</u>. If any provision or provisions of these Bylaws shall be held to be invalid, illegal or unenforceable as applied to any person or entity or circumstance for any reason whatsoever, then, to the fullest extent permitted by law, the validity, legality and enforceability of such provision or provisions in any other circumstance and of the remaining provisions of these Bylaws (including, without limitation, each portion of any paragraph of these Bylaws containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) and the application of such provision or provisions to other persons, entities and circumstances shall not in any way be affected or impaired thereby.

\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*

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CERTIFICATION

The undersigned, as the duly elected Secretary of Pershing Square Inc., a Nevada corporation (the "<u>Corporation</u>"), does hereby certify that the Board of Directors of the Corporation adopted the foregoing Bylaws as of [●], 2026.

Secretary<br>

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## Exhibit 10.1

#### Exhibit 10.1<br>

#### PERSHING SQUARE INC.

#### INDEMNIFICATION AGREEMENT

This Indemnification Agreement is dated as of [●], 2026 (this "**<u>Agreement</u>**") and is between Pershing Square Inc., a Nevada corporation (the "**<u>Company</u>**"), and the undersigned [director/officer] of the Company (the "**<u>Indemnitee</u>**").

#### Background
The Company believes that, in order to attract and retain highly competent persons to serve as directors or in other capacities, including as officers, it must provide such persons with adequate protection through indemnification against the risks of claims and actions against them arising out of their services to and activities on behalf of the Company.

The Company desires and has requested the Indemnitee to serve, or to continue to serve, as a director and/or officer of the Company and, in order to induce the Indemnitee to serve, or to continue to serve, in such capacity, the Company is willing to grant the Indemnitee the indemnification provided for herein. The Indemnitee is willing to so serve, or to continue to serve, on the basis that such indemnification be provided.

The parties by this Agreement desire to set forth their agreement regarding indemnification and the advancement of expenses.

In consideration of the Indemnitee's service to the Company and the covenants and agreements set forth below, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

**Section 1.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Indemnification</u>.** To the fullest extent permitted by applicable law (including Nevada Revised Statutes (as amended from time to time, the "**<u>NRS</u>**") 78.7502 and 78.751:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company shall indemnify the Indemnitee if the Indemnitee was or is made or is threatened to be made a party to, or is otherwise involved in, as a witness or otherwise, any threatened, pending or completed action, suit or proceeding (brought in the right of the Company or otherwise), whether civil, criminal, administrative or investigative and whether formal or informal, including any and all appeals, by reason of the fact that the Indemnitee is or was or has agreed to serve as a director or officer of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise, or by reason of any action alleged to have been taken or omitted by the Indemnitee in any such capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to <u>Section 6</u>, the indemnification provided by this <u>Section 1</u> shall be from and against all loss and liability suffered and expenses (including attorneys' fees and expenses), judgments, fines and amounts paid in settlement actually and reasonably incurred by or on behalf of the Indemnitee in connection with such action, suit or proceeding, including any appeals (collectively, "**<u>Losses</u>**").

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**Section 2.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Advancement of Expenses</u>.** To the fullest extent permitted by applicable law (including NRS 78.751), but subject to the terms of this Agreement and following notice pursuant to <u>Section 3(a)</u> below, expenses (including attorneys' fees and expenses) incurred by the Indemnitee in appearing at, participating in or defending, or otherwise arising out of or related to, any action, suit or proceeding described in <u>Section 1(a)</u> shall be paid by the Company in advance of the final disposition of such action, suit or proceeding, or in connection with any action, suit or proceeding brought to establish or enforce a right to indemnification or advancement of expenses pursuant to <u>Section 3</u> (an "**<u>advancement of expenses</u>**"), within 30 days after receipt by the Company of a statement or statements from the Indemnitee requesting such advancement of expenses from time to time; *provided* that such 30-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the person or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation or information relating thereto. The Indemnitee hereby undertakes to repay any amounts so advanced (without interest) to the extent that it is ultimately determined by final judicial decision from which there is no further right to appeal (a "**<u>final adjudication</u>**") that the Indemnitee is not entitled to be indemnified or entitled to advancement of expenses under this Agreement. No other form of undertaking shall be required of the Indemnitee other than the execution of this Agreement. This <u>Section 2</u> shall be subject to <u>Section 3(b)</u> and shall not apply to any claim made by the Indemnitee for which indemnity is excluded pursuant to <u>Section 6</u>.

**Section 3.** &nbsp;&nbsp;&nbsp;&nbsp; **<u>Procedure for Indemnification; Notification and Defense of Claim</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Promptly after receipt by the Indemnitee of notice of the commencement of any action, suit or proceeding, the Indemnitee shall, if any indemnification, advancement or other claim in respect thereof is to be sought from or made against the Company hereunder, notify the Company in writing of the commencement thereof. The failure to promptly notify the Company of the commencement of any action, suit or proceeding, or of the Indemnitee's request for indemnification, advancement or other claims shall not relieve the Company from any liability that it may have to the Indemnitee hereunder and shall not constitute a waiver or release by the Indemnitee of any rights hereunder or otherwise, except to the extent the Company is actually and materially prejudiced in its defense of such action, suit or proceeding as a result of such failure. To submit a request for indemnification under <u>Section 1</u>, the Indemnitee shall submit to the Company a written request therefor. Any notice by the Indemnitee under this <u>Section 3</u> should include such documentation and information as is reasonably available to the Indemnitee and is reasonably necessary to enable the Company to determine whether and to what extent the Indemnitee is entitled to indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; With respect to any action, suit or proceeding of which the Company is so notified as provided in this Agreement, the Company shall, subject to the last two sentences of this <u>Section 3(b)</u>, be entitled to assume the defense of such action, suit or proceeding, with counsel reasonably acceptable to the Indemnitee, upon the delivery to the Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel by the Indemnitee and the retention of such counsel by the Company, the Company will not be liable to the Indemnitee under this Agreement for any subsequently incurred fees of separate counsel engaged by the Indemnitee with respect to the same action, suit or proceeding unless the employment of separate counsel by the Indemnitee has been previously authorized in writing by the Company. Notwithstanding the foregoing, if the Indemnitee, based on the advice of their counsel, shall have reasonably concluded (with written notice being given to the Company setting forth the basis for such conclusion) that, in the conduct of any such defense, there is or is reasonably likely to be a conflict of interest or position between the Company and the Indemnitee with respect to a significant issue, then the Company will not be entitled, without the written consent of the Indemnitee, to assume such defense. In addition, the Company will not be entitled, without the written consent of the Indemnitee, to assume the defense of any claim brought by or in the right of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The determination whether to grant the Indemnitee's indemnification request shall be made promptly, and in any event within 30 days, following the Company's receipt of a request for indemnification in accordance with <u>Section 3(a)</u>. If the determination of whether to grant the Indemnitee's indemnification request shall not have been made within such 30-day period, the requisite determination of entitlement to indemnification shall, subject to <u>Section 6</u>, to the fullest extent not prohibited by law, nonetheless be deemed to have been made and the Indemnitee shall be entitled to such indemnification, absent (i) an intentional misstatement by the Indemnitee of a material fact, or an intentional omission of a material fact necessary to make the Indemnitee's statement not misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; *provided*, *however*, that such 30-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the person or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation or information relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event that (i) the Company determines in accordance with this <u>Section 3</u> that the Indemnitee is not entitled to indemnification under this Agreement; (ii) the Company denies a request for indemnification, in whole or in part, or fails to respond or make a determination of entitlement to indemnification within 30 days following receipt of a request for indemnification as described above; (iii) payment of indemnification is not made within such 30-day period (as it may be extended); (iv) advancement of expenses is not timely made in accordance with <u>Section 2</u> or (v) the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder, the Indemnitee shall be entitled to an adjudication in any court of competent jurisdiction of their entitlement to such indemnification or advancement of expenses, as applicable. The Indemnitee's expenses (including attorneys' fees and expenses) incurred in connection with successfully establishing the Indemnitee's right to indemnification or advancement of expenses, in whole or in part, in any such proceeding or otherwise shall also be indemnified by the Company to the fullest extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Indemnitee shall be presumed to be entitled to indemnification and advancement of expenses under this Agreement upon submission of a request therefor in accordance with <u>Section 2</u> or <u>Section 3</u>, as the case may be. The Company shall have the burden of proof in overcoming such presumption, and such presumption shall be used as a basis for a determination of entitlement to indemnification and advancement of expenses unless the Company overcomes such presumption by clear and convincing evidence. For purposes of this Agreement, to the fullest extent permitted by applicable law, the Indemnitee shall be deemed to have acted in good faith if the Indemnitee's action is based on the records or books of account of the Company, including financial statements, or on information supplied to the Indemnitee by the officers, employees or committees of the Board of Directors of the Company (the "**<u>Board of Directors</u>**"), or on the advice of legal counsel or other advisors (including financial advisors and accountants) for the Company or on information or records given in reports made to the Company by an independent certified public accountant or by an appraiser or other expert or advisor selected by the Company, and the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Company or relevant enterprises will not be imputed to the Indemnitee in a manner that limits or otherwise adversely affects the Indemnitee's rights hereunder.

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**Section 4.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Insurance and Subrogation</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall use its reasonable best efforts to purchase and maintain a policy or policies of directors' and officers' liability insurance ("<u>**D&O Insurance**</u>") with reputable insurance companies with A.M. Best ratings of "A-" or better (or, if A.M. Best does not rate the insurance company, an equivalent rating by an equivalent licensed insurance rating organization or agency), providing the Indemnitee with coverage for any liability asserted against, and incurred by, the Indemnitee or on the Indemnitee's behalf by reason of the fact that the Indemnitee is or was or has agreed to serve as a director or officer of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise, or arising out of the Indemnitee's status as such, whether or not the Company would have the power to indemnify the Indemnitee against such liability under the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding any other provisions of this Agreement to the contrary, the Company shall have no obligation to obtain or maintain D&O Insurance if the Company determines in good faith that: (i) such insurance is not reasonably available; (ii) the premium costs for such insurance are disproportionate to the amount of coverage provided; (iii) the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit; (iv) the Company is to be acquired and a tail policy of reasonable terms and duration is purchased for pre-closing acts or omissions by the Indemnitee; or (v) the Company is to be acquired and D&O Insurance, with substantially the same terms and conditions as the D&O Insurance in place prior to such acquisition, will be maintained by the acquirer that covers pre-closing acts and omissions by the Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In all policies of D&O Insurance, the Indemnitee shall qualify as an insured in such a manner as to provide the Indemnitee the same rights and benefits as are accorded to the most favorably insured (i) of the Company's independent directors (as defined by the insurer) if the Indemnitee is such an independent director; (ii) of the Company's non-independent directors if the Indemnitee is not an independent director or (iii) of the Company's officers if the Indemnitee is an officer of the Company. If the Company has D&O Insurance in effect at the time the Company receives from the Indemnitee any notice of the commencement of an action, suit or proceeding, the Company shall give prompt notice of the commencement of such action, suit or proceeding to the insurers in accordance with the procedures set forth in the policy. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event of any payment by the Company under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee with respect to any D&O Insurance maintained by the Company. The Indemnitee shall execute all papers required and take all reasonable action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights in accordance with the terms of such D&O Insurance. The Company shall pay or reimburse all expenses actually and reasonably incurred by the Indemnitee in connection with such subrogation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (including, but not limited to, judgments, fines and amounts paid in settlement, and excise taxes or penalties relating to the Employee Retirement Income Security Act of 1974, as amended ("**<u>ERISA</u>**")) if and to the extent that the Indemnitee has otherwise actually received such payment under this Agreement or any insurance policy, contract, agreement or otherwise.

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**Section 5.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Certain Definitions</u>.** For purposes of this Agreement, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The term "**<u>action, suit or proceeding</u>**" shall be broadly construed and shall include, without limitation, the investigation, preparation, prosecution, defense, settlement, arbitration and appeal of, and the giving of testimony in, any threatened, pending or completed claim, counterclaim, cross claim, action, suit, arbitration, alternative dispute mechanism or proceeding, whether civil, criminal, administrative or investigative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The term "**<u>by reason of the fact that the Indemnitee is or was or has agreed to serve as a director or officer of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise</u>**" shall be broadly construed and shall include, without limitation, any actual or alleged act or omission to act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The term "**<u>expenses</u>**" shall be broadly construed and shall include, without limitation, all direct and indirect costs of any type or nature whatsoever (including, without limitation, all attorneys' fees and expenses and related disbursements, appeal bonds, other out-of-pocket costs, retainers, court costs, transcript costs, fees of experts and other professionals, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, any federal, state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties and reasonable compensation for time spent by the Indemnitee for which the Indemnitee is not otherwise compensated by the Company or any third party), actually and reasonably incurred by the Indemnitee in connection with either the investigation, defense or appeal of an action, suit or proceeding or establishing or enforcing a right to indemnification under this Agreement or otherwise incurred in connection with a claim that is indemnifiable hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The term "**<u>judgments, fines and amounts paid in settlement</u>**" shall be broadly construed and, subject to <u>Section 8</u>, shall include, without limitation, all direct and indirect payments of any type or nature whatsoever, as well as any penalties or excise taxes assessed on a person with respect to an employee benefit plan.

**Section 6.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Limitation on Indemnification</u>.** Notwithstanding any provision of this Agreement to the contrary, the Company shall not be obligated pursuant to this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Proceedings Initiated by the Indemnitee</u>. To indemnify or advance expenses to the Indemnitee with respect to an action, suit or proceeding (or part thereof) initiated voluntarily by the Indemnitee, except with respect to any compulsory counterclaim brought by the Indemnitee, unless (i) such indemnification is expressly required to be made by law; (ii) such action, suit or proceeding (or part thereof) was authorized or consented to by the Board of Directors; (iii) such indemnification is provided by the Company, in its sole discretion, pursuant to the powers vested in the Company under applicable law or (iv) such action, suit or proceeding is brought to establish or enforce a right to indemnification or advancement of expenses under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Action for Indemnification</u>. To indemnify the Indemnitee for any expenses incurred by the Indemnitee with respect to any action, suit or proceeding instituted by the Indemnitee to enforce or interpret this Agreement, unless the Indemnitee is successful in such action, suit or proceeding in establishing the Indemnitee's right, in whole or in part, to indemnification or advancement of expenses hereunder (in which case such indemnification or advancement shall be to the fullest extent permitted by applicable law), or unless and to the extent that the court in such action, suit or proceeding shall determine that, despite the Indemnitee's failure to establish their right to indemnification, the Indemnitee is entitled to indemnification for such expenses; *provided*, *however*, that nothing in this <u>Section 6(b)</u> is intended to limit the Company's obligations with respect to the advancement of expenses to the Indemnitee in connection with any such action, suit or proceeding instituted by the Indemnitee to enforce or interpret this Agreement, as provided in <u>Section 2</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Actions Based on Federal Statutes Regarding Profit Recovery, Return of Bonus Payments, and Reimbursement Under Clawback Policies</u>. To indemnify the Indemnitee on account of (i) any suit in which judgment is rendered against the Indemnitee for disgorgement of profits made from the purchase or sale by the Indemnitee of securities of the Company pursuant to the provisions of <u>Section 16(b)</u> of the Securities Exchange Act of 1934, as amended (the "**<u>Exchange Act</u>**"); (ii) any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to <u>Section 304</u> of the Sarbanes-Oxley Act of 2002 (the "**<u>Sarbanes-Oxley Act</u>**"), or the payment to the Company of profits arising from the purchase and sale by the Indemnitee of securities in violation of <u>Section 306</u> of the Sarbanes-Oxley Act) or (iii) any reimbursement of the Company by the Indemnitee of any compensation pursuant to any compensation recoupment or clawback policy adopted by the Board of Directors or the compensation committee of the Board of Directors, including but not limited to, any such policy adopted to comply with stock exchange listing requirements implementing <u>Section 10D</u> of the Exchange Act (any such policy, a "**<u>Clawback Policy</u>**"). In furtherance of this <u>Section 6(c)</u>, the Indemnitee hereby agrees to abide by the terms of any Clawback Policy, including, without limitation, by returning any compensation to the Company to the extent required by, and in a manner permitted by, such Clawback Policy, and hereby understands and agrees that the Indemnitee shall not be entitled to any (x) indemnification for any liability (including any amounts owed by the Indemnitee in a judgment or settlement of any proceeding relating to such Clawback Policy (a "**<u>Clawback Proceeding</u>**")) or loss (including judgments, fines, taxes, penalties or amounts paid in settlement by or on behalf of the Indemnitee) incurred by the Indemnitee in connection with any Clawback Proceeding or (y) indemnification or advancement of expenses (including attorneys' fees and expenses) from the Company and or any subsidiary of the Company incurred by the Indemnitee in connection with any Clawback Proceeding; *provided*, *however*, if the Indemnitee is successful on the merits in the defense of any claim asserted against the Indemnitee in a Clawback Proceeding, the Indemnitee shall be indemnified for the expenses (including attorneys' fees and expenses) the Indemnitee reasonably incurred to defend such claim. The Indemnitee hereby knowingly, voluntarily and intentionally waives, and agrees not to assert any claim regarding, all indemnification, advancement of expenses and other rights to which the Indemnitee is now or becomes entitled to under this Agreement, the Company's articles of incorporation and bylaws, the governing documents of each subsidiary of the Company, and the NRS, in each case to the extent such waiver and agreement is necessary to give effect to the preceding sentence of this paragraph. The Indemnitee agrees and acknowledges that the compensation the Indemnitee has or will receive from the Company or any of its subsidiaries constitutes fair and adequate consideration in exchange for the waiver and agreement provided by the Indemnitee in this paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Fraud, Violation of Law or Intentional Misconduct</u>. To indemnify the Indemnitee on account of conduct by the Indemnitee where such conduct has been determined by a final (not interlocutory) judgment or other adjudication of a court or arbitration or administrative body of competent jurisdiction as to which there is no further right or option of appeal, or the time within which an appeal must be filed has expired without such filing, to have been a knowing violation of law, fraudulent or to constitute intentional misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Prohibited by Law</u>. To indemnify or advance expenses to the Indemnitee in any circumstance where such indemnification or advancement has been determined by a final (not interlocutory) judgment or other adjudication of a court or arbitration or administrative body of competent jurisdiction as to which there is no further right or option of appeal, or the time within which an appeal must be filed has expired without such filing having been made, to be prohibited by law.

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**Section 7.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Change in Control</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company agrees that if there is a change in control of the Company, then with respect to all matters thereafter arising concerning the rights of the Indemnitee to indemnification and advancement of expenses under this Agreement, any other agreement or the Company's articles of incorporation or bylaws now or hereafter in effect, the Company shall seek legal advice only from independent counsel selected by the Indemnitee and approved by the Company (which approval shall not be unreasonably withheld). In addition, upon written request by the Indemnitee for indemnification pursuant to <u>Section 1</u> or <u>Section 3(a)</u>, a determination, if required by applicable law, with respect to the Indemnitee's entitlement thereto shall be made by such independent counsel in a written opinion to the Board of Directors, a copy of which shall be delivered to the Indemnitee. The Company agrees to pay the reasonable fees of the independent counsel referred to above and to indemnify fully such counsel against any and all expenses (including attorneys' fees and expenses), claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of this <u>Section 7</u>, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A "**<u>change in control</u>**" shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following: (A) any person or group, within the meaning of <u>Section 13(d)(3)</u> of the Exchange Act (other than PS Holdco GP Managing Member, LLC), obtains ownership, directly or indirectly, of (x) more than 50% of the total voting power of the outstanding capital stock of the Company or applicable successor entity (including any securities convertible into, or exercisable or exchangeable for such capital stock) or (y) all or substantially all of the assets of the Company and its Subsidiaries on a consolidated basis; (B) during any period of two consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board of Directors, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in <u>Sections 7(b)(i)(A)</u>, <u>7(b)(i)(C)</u> or <u>7(b)(i)(D)</u> or a director whose initial nomination for, or assumption of office as, a member of the Board of Directors occurs as a result of an actual or threatened solicitation of proxies or consents for election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the Board of Directors) whose election by the Board of the Directors or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board of Directors; (C) the effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity and (D) the approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets. For purposes of this <u>Section 7(b)(i)</u> only, "**<u>person</u>**" shall have the meaning as set forth in Sections 13(d) and <u>14(d)</u> of the Exchange Act; *provided*, *however*, that "person" shall exclude (a) the Company, (b) any trustee or other fiduciary holding securities under an employee benefit plan of the Company and (c) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The term "**<u>independent counsel</u>**" means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (A) the Company or the Indemnitee in any matter material to either such party or (B) any other party to the action, suit or proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "independent counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or the Indemnitee in an action to determine the Indemnitee's rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The term "**<u>Subsidiary</u>**" means, with respect to the Company (or an applicable successor entity), any corporation, partnership, limited liability company, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors or other governing persons or bodies thereof is at the time owned or controlled, directly or indirectly, by the Company or one or more of the other Subsidiaries of the Company or a combination thereof or (ii) if a partnership, limited liability company, trust, association or other business entity, a majority of the partnership, limited liability company or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by the Company or one or more of the other Subsidiaries of the Company or a combination thereof. For purposes hereof, the Company or its applicable Subsidiary shall be deemed to have a majority ownership interest in a partnership, limited liability company, association or other business entity if the Company or such applicable Subsidiary shall be allocated a majority of partnership, limited liability company, association or other business entity gains or losses or shall be or control the managing director, managing member, manager or general partner of such partnership, limited liability company, association or other business entity.

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**Section 8.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Certain Settlement Provisions</u>.** The Company shall have no obligation to indemnify the Indemnitee under this Agreement for any amounts paid in settlement of any action, suit or proceeding without the Company's prior written consent. The Company shall not settle any action, suit or proceeding in any manner that would attribute to the Indemnitee any admission of wrongdoing or liability or that would impose any fine or other obligation or restriction on the Indemnitee without the Indemnitee's prior written consent. Neither the Company nor the Indemnitee will unreasonably withhold their consent to any proposed settlement.

**Section 9.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Savings Clause</u>.** If any provision or provisions (or portion thereof) of this Agreement shall be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify the Indemnitee if the Indemnitee was or is made or is threatened to be made a party or is otherwise involved in (including as a witness) any threatened, pending or completed action, suit or proceeding (brought in the right of the Company or otherwise), whether civil, criminal, administrative or investigative and whether formal or informal, including any and all appeals, by reason of the fact that the Indemnitee is or was or has agreed to serve as a director or officer of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise, or by reason of any action alleged to have been taken or omitted by the Indemnitee in any such capacity, from and against all Losses suffered by, or incurred by or on behalf of, the Indemnitee in connection with such action, suit or proceeding, including any appeals, to the fullest extent permitted by any applicable portion of this Agreement that shall not have been invalidated.

**Section 10.&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp; **<u>Contribution</u>.** In order to provide for just and equitable contribution in circumstances in which the indemnification provided for herein is held by a court of competent jurisdiction to be unavailable to the Indemnitee in whole or in part, it is agreed that, in such event, the Company shall, to the fullest extent permitted by law, contribute to the payment of all Losses suffered by, or incurred by or on behalf of, the Indemnitee in connection with any action, suit or proceeding, including any appeals, in an amount that is just and equitable in the circumstances in order to reflect (i) the relative benefits received by the Company and the Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such actions, suit or proceeding and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and the Indemnitee in connection with such event(s) and/or transaction(s); *provided* that, without limiting the generality of the foregoing, such contribution shall not be required where such holding by the court is due to any limitation on indemnification set forth in <u>Section 4(d)</u>, <u>Section 6</u> or <u>Section 8</u>.

**Section 11.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Form and Delivery of Communications</u>.** All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by hand, upon receipt by the party to whom said notice or other communication shall have been directed; (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed; (c) mailed by reputable overnight courier, one day after deposit with such courier and with written verification of receipt or (d) sent by email or facsimile transmission, with receipt of oral confirmation that such transmission has been received. Notice to the Company shall be directed to the Chief Legal Officer, email: legal@persq.com, confirmation number: 212-813-3700. Notice to the Indemnitee shall be directed to the Indemnitee's contact information on file with the Company's Secretary or its Human Resources Department.

**Section 12.** &nbsp;&nbsp;&nbsp;&nbsp; **<u>Nonexclusivity</u>.** The provisions for indemnification to or the advancement of expenses and costs to the Indemnitee under this Agreement shall not limit or restrict in any way the power of the Company to indemnify or advance expenses to the Indemnitee in any other way permitted by law or be deemed exclusive of, or invalidate, any right to which any indemnitee seeking indemnification or advancement of expenses may be entitled under any law, the Company's articles of incorporation or bylaws, other agreements or arrangements, vote of stockholders or disinterested directors or otherwise, both as to action in the Indemnitee's capacity as an officer, director, employee or agent of the Company and as to action in any other capacity. The Indemnitee's rights hereunder shall inure to the benefit of the heirs, executors and administrators of the Indemnitee.

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**Section 13.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Defenses</u>.** In (i) any action, suit or proceeding brought by the Indemnitee to enforce a right to indemnification hereunder (but not in an action, suit or proceeding brought by the Indemnitee to enforce a right to an advancement of expenses) it shall be a defense that, and (ii) any action, suit or proceeding brought by the Company to recover an advancement of expenses pursuant to the terms of an undertaking by the Indemnitee pursuant to <u>Sectio</u><u>n 2</u>, the Company shall be entitled to recover such expenses upon a final adjudication that, the Indemnitee has not met the corresponding standard of conduct set forth in NRS 78.7502. Neither the failure of the Company (including its directors who are not parties to such action, a committee of such directors, independent legal counsel or the Company's stockholders) to have made a determination prior to the commencement of such suit that indemnification of the Indemnitee is proper in the circumstances because the Indemnitee has met the corresponding standard of conduct set forth in NRS 78.7502, nor an actual determination by the Company (including its directors who are not parties to such action, a committee of such directors, independent legal counsel or the Company's stockholders) that the Indemnitee has not met such standard of conduct, shall create a presumption that the Indemnitee has not met such standard of conduct or, in the case of such a suit brought by the Indemnitee, be a defense to such suit.

**Section 14.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>No Construction as Employment Agreement</u>.** Nothing contained herein shall be construed as giving the Indemnitee any right to be retained as a director or officer of the Company or in the employ of the Company or any other entity. For the avoidance of doubt, the indemnification and advancement of expenses provided under this Agreement shall continue as to the Indemnitee even though they may have ceased to be a director, officer, employee or agent of the Company.

**Section 15.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Interpretation of Agreement</u>.** It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide, in each instance, indemnification and advancement of expenses to the Indemnitee to the fullest extent permitted by law, as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Company to provide broader indemnification rights than applicable law permitted the Company to provide prior to such amendment). Whenever the words "include," "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation," whether or not they are in fact followed by those words or words of like import.

**Section 16.&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp; **<u>Entire Agreement</u>.** This Agreement and the documents expressly referred to herein constitute the entire agreement between the parties hereto with respect to the matters covered hereby, and any other prior or contemporaneous oral or written understandings or agreements with respect to the matters covered hereby are expressly superseded by this Agreement.

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**Section 17**.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Modification and Waiver</u>.** No supplement, modification, waiver or amendment of this Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. For the avoidance of doubt, (a) this Agreement may not be modified or terminated by the Company without the Indemnitee's prior written consent; (b) no amendment, alteration or interpretation of the Company's articles of incorporation or bylaws or any other agreement or arrangement shall limit or otherwise adversely affect the rights provided to the Indemnitee under this Agreement and (c) a right to indemnification or to advancement of expenses arising under a provision of the Company's articles of incorporation or bylaws or this Agreement shall not be eliminated or impaired by an amendment to such provision after the occurrence of the act or omission that is the subject of the action, suit or proceeding for which indemnification or advancement of expenses is sought.

**Section 18.** &nbsp;&nbsp;&nbsp;&nbsp; **<u>Successor and Assigns</u>.** All of the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto and their respective successors, assigns, heirs, executors, administrators and legal representatives. The Company shall require and cause any direct or indirect successor (whether by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, by written agreement in form and substance reasonably satisfactory to the Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

**Section 19.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Service of Process and Venue</u>.** The Company and the Indemnitee hereby irrevocably and unconditionally (a) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought in the Eighth Judicial District Court of the State of Nevada (the "**<u>Nevada Court</u>**"); (b) consent to submit to the exclusive jurisdiction of the Nevada Court for purposes of any action or proceeding arising out of or in connection with this Agreement; (c) appoint, to the extent such party is not otherwise subject to service of process in the State of Nevada, the Company's registered agent in the State of Nevada (as the same may be changed from time to time) as its agent in the State of Nevada for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Nevada; (d) waive any objection to the laying of venue of any such action or proceeding in the Nevada Court and (e) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Nevada Court has been brought in an improper or inconvenient forum.

**Section 20.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Governing Law</u>.** This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada. If, notwithstanding the foregoing, a court of competent jurisdiction shall make a final determination that the provisions of the law of any state other than Nevada govern indemnification by the Company of the Indemnitee, then the indemnification provided under this Agreement shall in all instances be enforceable to the fullest extent permitted under such law, notwithstanding any provision of this Agreement to the contrary.

**Section 21.** &nbsp;&nbsp;&nbsp;&nbsp; **<u>Counterparts</u>.** This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument, notwithstanding that both parties are not signatories to the original or same counterpart.

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**Section 22.&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp; **<u>Headings and Section References</u>.** The section and subsection headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Unless the context otherwise requires, any reference to a "Section" or "paragraph" refers to a Section or paragraph, as the case may be, of this Agreement.

**Section 23.&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp; **<u>Electronic Signatures.</u>** This Agreement may be signed by electronic signature and electronic transmission, including via DocuSign or other similar method, and this method of signature is as conclusive of an intention to be bound by this Agreement as if signed by a party's manuscript signature.

*[Signature Page Follows]*

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This Agreement has been duly executed and delivered to be effective as of the date first written above.

#### PERSHING SQUARE INC.
<br> By: <u><br> </u>

Name:

Title:

#### INDEMNITEE

#### <br>
<br><u><br> </u>

&nbsp;&nbsp;&nbsp;&nbsp; Name:<br>

------

## Exhibit 10.5

**Exhibit 10.5**

**<u>AIRCRAFT LEASE AGREEMENT</u>**

(Part 91 Operations)

by and between

&nbsp;&nbsp;&nbsp;&nbsp;<br>

WAFH V LLC

as Lessor,

and

Pershing Square Capital Management, L.P.

as Lessee,

concerning one (1) Gulfstream Aerospace model GV-SP (G550) aircraft bearing

U.S. Registration Number N550RP,

and

Manufacturer's Serial Number 5184

**INSTRUCTIONS FOR COMPLIANCE WITH** 

**"TRUTH IN LEASING" REQUIREMENTS UNDER FAR § 91.23**

***Within 24 hours after execution of this Aircraft Lease Agreement:***

mail a copy of the executed document, without <u>Schedule A</u>, to the following address via certified mail, return receipt requested:

Federal Aviation Administration

Aircraft Registration Branch

ATTN: Technical Section

P.O. Box 25724

Oklahoma City, Oklahoma 73125

***At least 48 hours prior to the first flight to be conducted under this Agreement:***

Provide in-person or telephonic notice of the departure airport and proposed time of departure of said first flight to the responsible Flight Standards office

***Carry a copy of this Aircraft Lease Agreement in the aircraft at all times.***

**\* \* \***

***<u>Schedule A</u> contains only economic rental data and is intentionally omitted for FAA submission purposes.***

------

This **AIRCRAFT LEASE AGREEMENT** (the "Agreement') is entered into effective as of the <u>11th</u> day of December, 2025 (the "Effective Date"), by and between WAFH V LLC, a Delaware limited liability company ("Lessor"), and Pershing Square Capital Management, L.P., a Delaware limited partnership ("Lessee").

**W I T N E S S E T H :**

WHEREAS, title to the Aircraft described and referred to herein is held by Owner Trustee and Lessor is in legal possession of the Aircraft;

WHEREAS, Lessee desires to lease from the Lessor, and Lessor desires to lease to Lessee, the Aircraft, without crew, upon and subject to the terms and conditions of this Agreement;

WHEREAS, during the term of this Agreement, the Aircraft may be subject to concurrent leases to one (1) or more Co-Lessee(s).

NOW, THEREFORE, in consideration of the mutual promises herein contained and other good and valid consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**SECTION 1. &nbsp;&nbsp;&nbsp;&nbsp; <u>DEFINITIONS</u>**

1.1 The following terms shall have the following meanings for all purposes of this Agreement:

"**Aircraft**" means the Airframe, the Engines, the Parts, and the Aircraft Documents. The Engines shall be deemed part or the "Aircraft" whether or not from time to time attached to the Airframe or removed from the Airframe.

"**Aircraft Documents**" means all flight records, maintenance records, historical records, modification records, overhaul records, manuals, logbooks, authorizations, drawings and data relating to the Airframe, any Engines, or any Part, or that are required by Applicable Law to be created or maintained with respect to the maintenance and/or operation of the Aircraft.

"**Airframe**" means that certain Gulfstream Aerospace model GV-SP (G550) aircraft bearing serial number 5184 and United States Registration Number N550RP, together with any and all Parts (including, but not limited to, landing gear and auxiliary power units but excluding the Engines) so long as such Parts shall be either incorporated or installed in or attached to the Airframe.

"**Applicable Law**" means, without limitation, all applicable laws, treaties, international agreements, decisions and orders of any court, arbitration or governmental agency or authority and rules, regulations, orders, directives, licenses and permits of any governmental body, instrumentality, agency or authority, including, without limitation, the FAR and 49 U.S.C. § 41101, *et seq.*, as amended.

**"Co-Lessee"** means any other person or entity, other than Pershing Square Capital Management, L.P., during the period of time that each such other person or entity possesses a non-exclusive leasehold interest in the Aircraft.

"**DOT**" means the United States Department of Transportation or any successor agency.

"**Engines**" means two (1) Rolls-Royce Deutschland Ltd & Co KG model BR700-710C4-11 aircraft engines bearing manufacturer's serial numbers 15471 and 15472 together with any and all Parts so long as the same shall be either incorporated or installed in or attached to such engines. Any engine which may be, from time to time, substituted for an engine shall be deemed to be an engine and subject to this Agreement for so long as it remains attached to the Airframe.

"**FAA**" means the Federal Aviation Administration or any successor agency.

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"**FAR**" means collectively the Aeronautics Regulations of the FAA and the DOT, as codified at Title 14, Parts 1 to 399 of the United States Code of Federal Regulations.

"**Flight Hour**" means one (1) hour of use of the Aircraft in flight operations, as recorded on the Aircraft hour meter and measured from the time the Aircraft takes off at the beginning of a flight, to the time the Aircraft lands at the end of a flight in one-tenth (1/10th) of an hour increments.

"**Lien**" means any mortgage, security interest, lease or other charge or encumbrance or claim or right of others created solely and directly as a result of Lessee's acts or omissions under this Agreement, including, without limitation, rights of others under any airframe or Engines interchange or pooling agreement, except for mechanics liens to be discharged in the ordinary course of business.

"**Operating Base**" means Teterboro Airport (KTEB).

"**Operational Control**" has the same meaning given the term in Section 1.1 of the FAR.

"**Owner Trustee**" means TVPX Aircraft Solutions Inc., a Utah corporation.

"**Parts**" means all appliances, components, parts, instruments, appurtenances, accessories, furnishings or other equipment of whatever nature (other than complete Engines) which may from time to time be incorporated or installed in or attached to the Airframe or any Engines and includes replacement parts.

"**Pilot in Command**" has the same meaning given the term in Section 1.1 of the FAR.

"**Taxes**" means all taxes of every kind (excluding any tax measured by or assessed against a taxpayer's income, including, without limitation, any income tax, gross income tax, net income tax, or capital gains tax) assessed or levied by any federal, state, county, local, airport, district, foreign, or other governmental authority, including, without limitation, sales taxes, use taxes, retailer taxes, federal air transportation excise taxes, federal aviation fuel excise taxes, and other similar duties, fees, and excise taxes.

"**Term**" means the entire period from the Effective Date to the date this Agreement is terminated pursuant to Section 3.1.

**SECTION 2.&nbsp;&nbsp;&nbsp;&nbsp; <u>LEASE AND DELIVERY OF THE AIRCRAFT</u>**

2.1 **Lease**. Lessor agrees to lease to Lessee, and Lessee agrees to lease from Lessor, the
 Aircraft, on the terms and conditions of this Agreement.

2.2 **Delivery**. The Aircraft shall be delivered to the Lessee on a mutually agreed date at the
 Operating Base, or such other location as the parties may mutually agree, and "AS IS," "WHERE IS," AND SUBJECT TO EACH AND EVERY DISCLAIMER OF WARRANTY AND REPRESENTATION AS SET FORTH IN SECTION 4 HEREOF. Lessor shall not be liable for delay or
 failure to furnish the Aircraft pursuant to this Agreement when such failure is caused by government regulation or authority, mechanical difficulty, war, civil commotion, strikes or labor disputes, weather conditions, or acts of God.

2.3 **Non-Exclusivity**. Lessee and Lessor acknowledge that the Aircraft is leased to Lessee on a
 non-exclusive basis, and that during the Term the Aircraft may be otherwise subject to lease to other lessees of Lessor. During any period during which a Co-Lessee has scheduled use of the Aircraft, Lessee's leasehold rights to possession of
 the Aircraft under this Agreement shall temporarily abate, but all other provisions of this Agreement shall nevertheless continue in full force and effect.

2.4 **Reserved.** 

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2.5 **FSDO Notice.** At least 48 hours prior to the first flight to be conducted under this
 Agreement, Lessee shall provide in-person or telephonic notice of the departure airport and proposed time of departure of said first flight to the responsible Flight Standards office. Within 24 hours of the execution of this Agreement, Lessee
 shall file an executed copy of this Agreement with the FAA Truth-in-Leasing filing Office in Oklahoma City, OK. Lessor shall cause an executed copy of this Agreement to be kept on board the Aircraft at all times it is in effect.

**<u>SECTION 3. TERM, SCHEDULING, AND RENT</u>**

3.1 **Term**. This Agreement shall become effective on the Effective Date and shall continue in
 effect for a period of six (6) months, unless terminated sooner pursuant to the express provisions herein contained. Each party shall have the right to terminate this Agreement without cause upon thirty (30) days prior written notice to the
 other party. Nothing contained herein shall obligate Lessee to any minimum usage of the Aircraft during the Term, it being understood and agreed that Lessee's usage shall be on an "as-needed" basis.

3.2 **Rent**. Lessee shall pay Rent in arrears during the Term in an amount equal to the Rent (plus applicable Taxes) specified in <u>Schedule A</u> attached hereto for each
 Flight Hour during the Term. No later than thirty (30) days after the end of each calendar month, Lessor shall provide Lessee with an invoice for Rent incurred in the prior month which invoice shall be paid by Lessee within ten (10) days of
 receipt. All Rent shall be paid to the Lessor in immediately available U.S. funds and in form and manner as the Lessor in its sole discretion may instruct Lessee from time to time.

3.3 **Taxes**. Lessee shall be responsible for, shall indemnify and hold harmless Lessor against, and
 Lessee shall pay all Taxes with respect to Lessee's operation, use or possession of the Aircraft and the Rent payable hereunder, when due. Lessee shall have the right to dispute or contest in good faith and at Lessee's sole expense the amount
 of any Taxes assessed or imposed directly against Lessee and/or Lessor. During the period that any such Taxes are being disputed or contested in good faith, payment of such Taxes in accordance with the terms of this Agreement may be delayed
 until a final determination of the amount due has been made.

**SECTION 4.&nbsp;&nbsp;&nbsp;&nbsp; DISCLAIMER**

DISCLAIMER OF WARRANTIES. THE AIRCRAFT IS BEING LEASED BY THE LESSOR TO THE LESSEE HEREUNDER ON A COMPLETELY "AS IS," "WHERE IS," BASIS, WHICH IS ACKNOWLEDGED AND AGREED TO BY THE LESSEE. THE WARRANTIES AND REPRESENTATIONS SET FORTH IN THIS SECTION 4 ARE EXCLUSIVE AND IN LIEU OF ALL OTHER REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, AND LESSOR HAS NOT MADE AND SHALL NOT BE CONSIDERED OR DEEMED TO HAVE MADE (WHETHER BY VIRTUE OF HAVING LEASED THE AIRCRAFT UNDER THIS AGREEMENT, OR HAVING ACQUIRED THE AIRCRAFT, OR HAVING DONE OR FAILED TO DO ANY ACT, OR HAVING ACQUIRED OR FAILED TO ACQUIRE ANY STATUS UNDER OR IN RELATION TO THIS AGREEMENT OR OTHERWISE) ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE AIRCRAFT OR TO ANY PART THEREOF, AND SPECIFICALLY, WITHOUT LIMITATION, IN THIS RESPECT DISCLAIMS ALL REPRESENTATIONS AND/OR WARRANTIES AS TO THE TITLE, AIRWORTHINESS, VALUE, CONDITION, DESIGN, MERCHANTABILITY, COMPLIANCE WITH SPECIFICATIONS, CONSTRUCTION AND CONDITION OF THE AIRCRAFT OPERATION, OR FITNESS FOR A PARTICULAR USE OF THE AIRCRAFT AND AS TO THE ABSENCE OF LATENT AND OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE, AS TO THE ABSENCE OF ANY INFRINGEMENT OR THE LIKE, HEREUNDER OF ANY PATENT, TRADEMARK OR COPYRIGHT, AS TO THE ABSENCE OF OBLIGATIONS BASED ON STRICT LIABILITY IN TORT, OR AS TO THE QUALITY OF THE MATERIAL OR WORKMANSHIP ON THE AIRCRAFT OR ANY PART THEREOF OR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED (INCLUDING ANY IMPLIED WARRANTY ARISING FROM A COURSE OF PERFORMANCE OR DEALING OR USAGE OF TRADE), WITH RESPECT TO THE AIRCRAFT OR ANY PART THEREOF. THE LESSEE HEREBY WAIVES, RELEASES, DISCLAIMS AND RENOUNCES ALL EXPECTATION OF OR RELIANCE UPON ANY SUCH AND OTHER WARRANTIES, OBLIGATIONS AND LIABILITIES OF LESSOR AND RIGHTS, CLAIMS AND REMEDIES OF THE LESSEE AGAINST LESSOR EXPRESS OR IMPLIED; ARISING BY LAW OR OTHERWISE INCLUDING BUT NOT LIMITED TO (I) ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR USE, (II) ANY IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE, (III) ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN TORT, WHETHER OR NOT ARISING FROM THE NEGLIGENCE OF LESSOR, ACTUAL OR IMPUTED, AND (IV) ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OF OR DAMAGE TO THE AIRCRAFT, FOR LOSS OF USE, REVENUE OR PROFIT WITH RESPECT TO THE AIRCRAFT, OR FOR ANY OTHER DIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES.

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**SECTION 5.&nbsp;&nbsp;&nbsp;&nbsp; <u>REGISTRATION, USE, OPERATION, MAINTENANCE AND POSSESSION</u>**

5.1 **Title and Registration**. Lessee acknowledges that Lessor is the beneficial owner of the
 Aircraft pursuant to an FAA registration trust and the Owner Trustee owns all legal, beneficial, and equitable title to the Aircraft, and that said title shall remain vested in Owner Trustee during the Term hereof. Lessee undertakes, to the
 extent permitted by Applicable Law, to do all such further acts, deeds, assurances or things as may, in the opinion of the Owner Trustee, be necessary or desirable in order to protect or preserve title to the Aircraft.

5.2 **Use and Operation**. Lessee shall operate the Aircraft in accordance with the provisions of
 Part 91 of the FAR and shall not operate the Aircraft in commercial service, as a common carrier, or otherwise for compensation or hire except to the extent permitted under Sections 91.321 and 91.501 of the FAR, if applicable. Except as
 otherwise set forth herein, Lessee shall be solely and exclusively responsible for the use, operation and control of the Aircraft at all times during which the Aircraft is in Lessee's possession under this Agreement during the Term. Lessee
 agrees not to: (i) operate or locate the Airframe or any Engines, or permit the Airframe or any Engines to be operated or located, in any area excluded from coverage by any insurance policy in effect or required to be maintained hereunder with
 respect to the Airframe or Engines, or in any war zone, (ii) operate the Airframe or any Engines or permit the Airframe or any Engines to be operated during the Term except in operations for which Lessee is duly authorized, (iii) use or permit
 the Aircraft to be used for a purpose for which the Aircraft is not designed or reasonably suitable, (iv) permit the Airframe or any Engines to be maintained, used or operated during the Term in violation of any Applicable Law, or contrary to
 any manufacturer's operating manuals or instructions or the terms of any insurance coverage,(v) knowingly permit the Aircraft to be used for the carriage of any persons or property prohibited by Applicable Law, or (vi) permit the Aircraft to be
 used during the existence of any known defect except in accordance with the FAR. Lessee may carry on the Aircraft on all flights under this Agreement such passengers, baggage, and cargo as Lessee in its sole but reasonable discretion shall
 determine; provided, however, that the number of passengers on any flight shall in no event exceed the number of seats legally available in the Aircraft, and the total load carried on any flight, including passengers, crew, baggage, and fuel
 and oil in such quantities as the Pilot in Command shall determine to be required, shall not exceed the legally permissible maximum load for the Aircraft. Lessee will abide by and conform to, be responsible for causing and cause others to abide
 by and conform to, all Applicable Laws now existing or hereafter enacted, that control or in any way affect the operation, use, maintenance, or occupancy of the Aircraft, or the use of any airport by the Aircraft.

5.3 **Aircraft Leased without Services**. Except as specifically set forth below. the Aircraft is
 leased by Lessor to Lessee hereunder as a fully managed, maintained and managed Aircraft. Lessee shall be responsible for providing the following services and supplies necessary to the operation, maintenance, and storage of the Aircraft:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.1 obtain (or cause to be obtained) all fuel, oil, and lubricants required for Lessee's operations of the
 Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.2 obtain the services of pilots for all of Lessee's operations of the Aircraft and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.3 ensure that all pilots serving on any flight conducted by Lessee possess current and valid First
 Class Medical Certificates, or upon notice to Lessor Second Class Medical Certificates issued by the FAA, and are fully competent, trained, experienced, and qualified in accordance with Applicable Law and all insurance policies covering the
 Aircraft.

5.4 **Operational Control.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.1 **Lessee's Flights.** Lessee shall exercise Operational Control of the Aircraft during all flight operations conducted by Lessee under this Agreement. Further, at all times while the Aircraft is in the possession of Lessee, Lessee shall have exclusive possession, command, and control of the Aircraft, and the pilots of any flight by Lessee shall be under the exclusive command of Lessee. Lessee understands its responsibilities for Operational Control and the consequences of that responsibility. The parties acknowledge and agree that no Co-Lessee shall have any right or obligation to exercise Operational Control of the Aircraft in connection with any flight conducted by Lessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.2 **Lessee's Flights**. Lessee shall exercise Operational Control of the Aircraft during all flight operations conducted by Lessee and (b) at all times while the Aircraft is in the possession of Lessee, Lessee shall have exclusive possession, command, and control of the Aircraft, and the pilots of Lessee's flights shall be under the exclusive command of Lessee. The parties acknowledge and agree that Lessee shall have no right or obligation to exercise Operational Control of the Aircraft in connection with any flight conducted by any Co- Lessee.

5.5 **Authority of Pilot in Command**. Notwithstanding that Lessee shall have operational control of
 the Aircraft during any flight conducted by Lessee, the parties acknowledge that pursuant to Section 91.3 of the FAR, the Pilot in Command of such flight is responsible for, and is obligated and entitled to exercise final authority over the
 safe operation of the flight, and the parties agree that the Pilot in Command may, in the exercise of such authority, refuse to commence such flight, terminate such flight, or take any other flight-related action that, in the judgment of the
 Pilot in Command, is required to ensure the safety of the Aircraft, the flight crew, the passengers, and any other persons and/or property.

5.6 **Right to Inspect**. Lessor and/or Lessor's agents shall have the right to inspect the Aircraft
 or the Aircraft Documents at any reasonable time, upon giving Lessee reasonable notice, to ascertain the condition of the Aircraft and to satisfy Lessor that the Aircraft is being properly repaired and maintained in accordance with the
 requirements of this Agreement. All required repairs shall be performed as soon as practicable after such inspection. Notwithstanding Lessor's right to inspect the Aircraft, Lessor shall have no obligation to do so, and such inspection shall
 impose upon Lessor no additional obligations hereunder.

5.7 **Modification of Aircraft**. Lessee shall not make or permit to be made any modification, alteration, improvement, or addition to the Aircraft without the express written
 consent of Lessor, except for those modifications, alterations, improvements, or additions that are necessary to comply with any applicable Airworthiness Directive or mandatory manufacturer's service bulletin. Any modifications, alterations,
 improvements, or additions to the Aircraft shall be accomplished at the sole cost and expense of Lessee and the other Co-Lessee(s), and shall be the property of Lessor.

5.8 **Fines, Penalties, and Forfeitures**. Lessee shall be solely responsible for any fines,
 penalties, or forfeitures relating in any manner to the operation or use of the Aircraft by Lessee under this Agreement.

**SECTION 6. &nbsp;&nbsp;&nbsp;&nbsp; <u>RETURN OF AIRCRAFT</u>**

6.1 **Return**. On the last day of the Term or the date of earlier termination hereof, Lessee shall return the Aircraft to Lessor by delivering the same at Lessee's
 expense to Lessor at the Operating Base or such other location within the 48 contiguous United States as Lessor may designate, fully equipped with the Engines and all Parts installed thereon.

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6.2 **Condition of Aircraft**. The Aircraft at the time of its return to Lessor, shall have, and be
 in compliance with, a current valid certificate of airworthiness issued by the FAA, and shall be airworthy according to manufacturer's specifications and FAA regulations, shall have been maintained and repaired in accordance with the provisions
 of this Agreement, and shall be in the same condition as it was in on the Effective Date of this Agreement, ordinary wear and tear excepted.

6.3 **Aircraft Documents**. Lessee shall return or cause to be returned to Lessor, at the time the
 Aircraft is returned to Lessor, all of the Aircraft Documents, updated and maintained by Lessee through the date of return of the Aircraft.

**SECTION 7.&nbsp;&nbsp;&nbsp;&nbsp; <u>LIENS</u>**

7.1 **Lessee Liens**. Lessee shall ensure that no Liens are created or placed against the Aircraft by
 Lessee or third- parties as a result of Lessee's actions. Lessee shall notify Lessor promptly upon learning of any Liens not permitted by these terms. Lessee shall, at its own cost and expense, take all such actions as may be necessary to
 discharge and satisfy in full any such Lien promptly after the same becomes known to it.

7.2 **Subordination**. All rights and interests of Lessee hereunder (including any right that Lessee
 might otherwise have under applicable law to the quiet possession and enjoyment of the Airframe and Engines) are, and at all times shall be and remain, subject and subordinate to the rights of any Lender providing financing with respect to the
 Aircraft and such Lender's rights and remedies thereunder.

**SECTION 8. <u>INSURANCE</u>**

8.1 **Liability**. Lessor shall maintain, or cause to be maintained, bodily injury and property damage, liability insurance in an
 amount not less than the amount set forth on <u>Schedule A</u> hereto Combined Single Limit. Sai d policy shall name Lessee as an Additional Insured party.

8.2 **Hull**. Lessor shall maintain, or cause to be maintained, all risks aircraft hull insurance in the amount set forth on <u>Schedule A</u> hereto, and such insurance
 shall name Lessor or its lienholder as sole loss payee.

8.3 **Insurance Certificates**. Lessor will provide Lessee with a Certificate of Insurance upon execution of this Agreement and at any time thereafter as Lessee may reasonably
 request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

8.4 **Reserved**.

8.5 **Reserved**.

**SECTION 9. <u>DEFAULTS AND REMEDIES</u>**

9.1 Upon the occurrence of any failure of Lessee to duly observe or perform any of its obligations
 hereunder, and at any time thereafter so long as the same shall be continuing, Lessor may, at its option, declare in writing to the Lessee that this Agreement is in default; and at any time thereafter, so long as Lessee shall not have remedied
 the outstanding default, Lessor may cancel, terminate, or rescind this Agreement.

9.2 Upon the occurrence of any failure of Lessor to duly observe or perform any of its obligations
 hereunder, and at any time thereafter so long as the same shall be continuing, Lessee may, at its option, declare in writing to the Lessor that this Agreement is in default; and at any time thereafter, so long as Lessor shall not have remedied
 the outstanding default, Lessee may cancel, terminate, or rescind this Agreement. In addition, Lessee shall have the right to exercise any available rights and remedies at law or in equity.

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**SECTION 10. <u>EVENT OF LOSS</u>**

10.1 **Notification of Event of Loss**. In the event that any damage to or destruction of the Aircraft shall occur as a result of Lessee's operations hereunder, or in the
 event of any whole or partial loss of the Aircraft, including, without limitation, any loss resulting from the theft, condemnation, confiscation or seizure of; or requisition of title to or use of the Aircraft by private persons or by any
 governmental or purported governmental authority, Lessee shall immediately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.1 report the event of loss to Lessor, the insurance company or companies, and to any and all applicable
 governmental agencies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.2 furnish such information and execute such documents as may be required and necessary to collect the
 proceeds from any insurance policies.

10.2 **Repair or Termination**. In-the event the Aircraft is partially destroyed or damaged. Lessor
 shall have the option, in its sole discretion, to either (i) fully repair the Aircraft in order that it shall be placed in at least as good condition as it was prior to such partial destruction or damage; or (ii) terminate this Agreement.
 Within five (5) days after the date of such partial destruction or damage, Lessor shall give written notice to Lessee specifying whether Lessor has elected to fully repair the Aircraft or to terminate this Agreement which termination shall be
 effective immediately upon such written notice from Lessor to Lessee setting forth Lessor's election to so terminate this Agreement.

**SECTION 11. <u>MISCELLANEOUS</u>**

11.1 **Entire Agreement**. This Agreement and all terms, conditions, warranties, and representations
 herein, are for the sole and exclusive benefit of the signatories hereto. This Agreement constitutes the entire agreement of the parties as of its Effective Date and supersedes all prior or independent, oral or written agreements,
 understandings, statements, representations, commitments, promises, and warranties made with respect to the subject matter of this Agreement.

11.2 **Other Transactions**. Except as specifically provided in this Agreement, none of the provisions of this Agreement, nor any oral or written statements, representations,
 commitments, promises, or warranties made with respect to the subject matter of this Agreement shall be construed or relied upon by any party as the basis of, consideration for, or inducement to engage in, any separate agreement, transaction or
 commitment for any purpose whatsoever.

11.3 **Prohibited and Unenforceable Provisions**. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
 ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibitions or unenforceability in any jurisdiction. To the extent permitted by applicable law, each of Lessor
 and Lessee hereby waives any provision of applicable law which renders any provision hereof prohibited or unenforceable in any respect.

11.4 **Enforcement**. This Agreement, including all agreements, covenants, representations and
 warranties, shall be binding upon and inure to the benefit of and may be enforced by Lessor, Lessee, and each of their agents, servants and personal representatives.

11.5 **Headings**. The section and subsection headings in this Agreement are for convenience of
 reference only and shall not modify, define, expand, or limit any of the terms or provisions hereof.

------

11.6 **Counterparts**. This Agreement may be executed by the parties hereto in two (2) separate
 counterparts, each of which when so executed and delivered shall be an original, and both of which shall together constitute but one and the same instrument.

11.7 **Amendments**. No term or provision of this Agreement may be amended, changed, waived,
 discharged, or terminated orally, but only by an instrument in writing signed by Lessor and Lessee.

11.8 **No Waiver**. No delay or omission in the exercise or enforcement or any right or remedy
 hereunder by either party shall be construed as a waiver of such right or remedy. All remedies, rights, undertakings, obligations, and agreements contained herein shall be cumulative and not mutually exclusive, and in addition to all other
 rights and remedies which either party possesses at law or in equity.

11.9 **No Assignments**. Neither party may assign its rights or obligations under this Agreement
 without the prior written permission of the other.

11.10 **Governing Law**. This Agreement has been negotiated and delivered in the State of New York and shall in all respects be governed by, and construed in accordance with,
 the laws of the State of New York, including all matters of construction, validity and performance, without giving effect to its conflict of laws provisions.

11.11 **Jurisdiction and Venue.** Exclusive jurisdiction and venue over any and all disputes between
 the parties arising under this Agreement shall be in, and for such purpose each party hereby submits to the jurisdiction of, the state and federal courts serving the State of New York.

11.12 **Notices.** All communications, declarations, demands, consents, directions, approvals,
 instructions, requests and notices required or permitted by this Agreement shall be in writing and shall be deemed to have been duly given or made when delivered personally or transmitted electronically by e-mail or facsimile, receipt
 acknowledged, or in the case of documented overnight delivery service or registered or certified mail, return receipt requested, delivery charge or postage prepaid, on the date shown on the receipt therefor, in each case at the address set
 forth below:

---

| | |
|:---|:---|
| **If to Lessor**: | WAFH V LLC |
|  | c/o TABLE Management, L.P. |
|  | 787 Eleventh Avenue, 9th Floor |
|  | New York, NY 10019 |
| **If to Lessee**: | Pershing Square Capital Management, L.P. |
|  | 787 Eleventh Avenue, 9th Floor |
|  | New York, NY 10019 |

---

------

**SECTION 12. <u>TRUTH IN LEASING</u>**

12.1 TRUTH IN LEASING STATEMENT UNDER SECTION 91.23 OF THE FARs.

WITHIN THE TWELVE (12) MONTH PERIOD PRECEDING THE DATE OF THIS AGREEMENT, THE AIRCRAFT HAS BEEN INSPECTED AND MAINTAINED AND IN ACCORDANCE WITH THE FOLLOWING PROVISIONS OF THE FAR:

CHECK ONE:

☐ 91.409 (f) (1): &nbsp;&nbsp;&nbsp;&nbsp; A continuous airworthiness inspection program that is part of a continuous airworthiness maintenance program currently in use by a person holding an air carrier operating certificate or an operating certificate issued under FAR Part 121, 127, or 135 and operating that make and model aircraft under FAR Part 121 or operating that make and model under FAR Part 135 and maintaining it under FAR 135.41l(a)(2).

☐ 91.409 (f) (2):&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; An approved aircraft inspection program approved under FAR 135.429 and currently in use by a person holding an operating certificate issued under FAR Part 135.

☒ 91.409(f) (3): &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A current inspection program recommended by the manufacturer.

☐ 91.409(f)(4): &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any other inspection program established by the registered owner or operator of the Aircraft and approved by the Administrator of the Federal Aviation Administration in accordance with FAR 9I.409(g).

THE PARTIES HERETO CERTIFY THAT DURING THE TERM OF THIS AGREEMENT AND FOR OPERATIONS CONDUCTED HEREUNDER, THE AIRCRAFT WILL BE MAINTAINED AND INSPECTED BY LESSEE IN ACCORDANCE WITH THE PROVISIONS OF FAR:

CHECK ONE:

☐ 91.409 (f) (1) ☐ 91.409 (f) (2) ☒ 91.409 (f) (3) ☐ 91.409 (f) (4)

LESSEE ACKNOWLEDGES THAT WHEN IT OPERATES THE AIRCRAFT UNDER THIS AGREEMENT, IT SHALL BE KNOWN AS, CONSIDERED, AND IN FACT WILL BE THE OPERATOR OF SUCH AIRCRAFT. EACH PARTY HERETO CERTIFIES THAT IT UNDERSTANDS THE EXTENT OF ITS RESPONSIBILITIES, SET FORTH HEREIN, FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS.

AN EXPLANATION OF FACTORS BEARING ON OPERATIONAL CONTROL AND PERTINENT FEDERAL AVIATION REGULATIONS CAN BE OBTAINED FROM THE RESPONSIBLE FLIGHT STANDARDS OFFICE.

THE PARTIES HERETO CERTIFY THAT A TRUE COPY OF THIS AGREEMENT SHALL BE CARRIED ON THE AIRCRAFT AT ALL TIMES, AND SHALL BE MADE AVAILABLE FOR INSPECTION UPON REQUEST BY AN APPROPRIATELY CONSTITUTED IDENTIFIED REPRESENTATIVE OF THE ADMINISTRATOR OF THE FAA.

THE ADDRESS OF LESSEE IS 787 ELEVENTH AVENUE, 9TH FLOOR, NEW YORK, NY 10019.

\* \* \* ***Signature Page Follows*** \* \* \*

------

IN WITNESS WHEREOF, the Lessor and the Lessee have each caused this Aircraft Lease Agreement to be duly executed as of the Effective Date.

---

| | |
|:---|:---|
| LESSOR: | LESSOR: |
| **WAFH V LLC** | **WAFH V LLC** |
| By: | /s/ William A. Ackman |
| Print: | William A. Ackman |
| Title: | Manager |
| LESSEE: | LESSEE: |
| **Pershing Square Capital Management, L.P.** | **Pershing Square Capital Management, L.P.** |
| By: | /s/ Michael Gonnella |
| Print: | Michael Gonnella |
| Title: | Chief Financial Officer |
| By: | /s/ Halit Coussin |
| Print: | Halit Coussin |
| Title: | Chief Legal Officer & Chief Compliance Officer |

---

------

**<u>AIRCRAFT LEASE AGREEMENT</u>**

**<u>Schedule A</u>**

Rent:&nbsp;&nbsp;&nbsp;&nbsp; $5,490.00 per Flight Hour (plus applicable taxes)

Liability Insurance Limits: USD $500,000,000

Hull Insurance Limit: USD $16,400,000.00

------

**<u>Schedule A</u>**

[ECONOMIC RENTAL DATA IS INTENTIONALLY OMITTED FOR FAA SUBMISSION PURPOSES]

------

## Exhibit 10.6

**Exhibit 10.6**

**PILOT AND FLIGHT SERVICES AGREEMENT**

**BY AND BETWEEN**

**PERSHING SQUARE CAPITAL MANAGEMENT, L.P.**

**AND**

**EXECUTIVE JET MANAGEMENT, INC.**

**EXECUTION DATE: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12/18/2024&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**EFFECTIVE DATE: UPON AIRCRAFT CLOSING**

------

**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
| **Table of Contents** | **Table of Contents** | **Table of Contents** |
| Section 1 - | Intent of the Parties | 1 |
| Section 2 *-* | Regulatory Considerations Relating to Control of the Aircraft | 5 |
| Section 3 - | Management Services by EJM | 5 |
| Section 4 - | Accounts and Payments | 9 |
| Section 5 - | Representations, Warranties, and Covenants | 11 |
| Section 6 - | Insurance | 12 |
| Section 7 - | Term and Termination | 13 |
| Section 8 - | Confidentiality | 14 |
| Section 9 - | Miscellaneous | 15 |

---

\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*

i

------

**<u>PILOT AND FLIGHT SERVICES AGREEMENT</u>**

This **Pilot and Flight Services Agreement** ("Agreement") is entered into by Executive Jet Management, Inc. ("EJM") and Pershing Square Capital Management, L.P. ("Customer"). EJM and Customer are sometimes referred to herein individually as a "Party" and collectively as the "Parties." In consideration of the promises and of the mutual covenants, agreements, representations, and warranties herein contained, EJM and Customer agree as follows.

Section 1 - Intent of the Parties

Customer has acquired a leasehold interest in the aircraft described in the following General Schedule (the "Aircraft") pursuant to any Aircraft Dry Lease between WAFH V, LLC, as lessor (the "Dry Lease Lessor"), and Customer, as lessee (the "Dry Lease"), and Customer desires to purchase a selection of aviation services from EJM. These services may facilitate the Customer's operation of its own Aircraft under 14 C.F.R. Part 91 in order for Customer to meet its own travel needs or, if permitted by 14 C.F.R. 91.501 or other applicable law, to meet others' travel needs.

The following General Schedule provides details regarding the Customer, the Aircraft, plans for operation of the Aircraft under this Agreement, the financial terms for the operation of the Aircraft under this Agreement, and insurance coverage to be secured for the Aircraft and its operation, and the interests that third parties may have in the Aircraft.

Attachment A provides useful information regarding relevant contact information and certain Aircraft and hangar arrangements. Attachment A may be updated from time to time by the Parties without amending this Agreement. At all times EJM will maintain the current and valid Attachment A, and EJM will provide the same to Customer any time there is a change to Attachment A or upon Customer's request.

Attachment B provides coverage details related to the USAIG Fleet Insurance Policy, which the Customer has elected. Attachment B may be updated from time to time to reflect relevant changes made by USAIG according to the terms of the Fleet Insurance Policy.

The General Schedule and all attachments shall be incorporated into the Agreement as if set forth fully herein.

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---

| | | |
|:---|:---|:---|
| **<u>General Schedule</u>** | **<u>General Schedule</u>** | **<u>General Schedule</u>** |
| &nbsp;&nbsp;**NO.** | &nbsp;&nbsp;**ITEM** | &nbsp;&nbsp;**DATA** |
| &nbsp;&nbsp;**1** | &nbsp;&nbsp;**CUSTOMER** |  |
| &nbsp;&nbsp; 1.a | &nbsp;&nbsp; Customer Name | &nbsp;&nbsp; Pershing Square Capital Management, L.P. |
| &nbsp;&nbsp; 1.b | &nbsp;&nbsp;Customer's Type of Business Entity (e.g., corporation, limited liability company) | &nbsp;&nbsp; Limited Partnership |
| &nbsp;&nbsp; 1.c | &nbsp;&nbsp; Customer Entity's State of Formation | &nbsp;&nbsp; Delaware |
| &nbsp;&nbsp; 1.d | &nbsp;&nbsp; Customer's Address | &nbsp;&nbsp; 787 11th Ave, 9th Floor<br> New York, NY 10019 |
| &nbsp;&nbsp; 1.e | &nbsp;&nbsp;Is Customer an aircraft-ownership entity with no other assets or business operations of its own? | &nbsp;&nbsp; No |
| &nbsp;&nbsp;**2** | &nbsp;&nbsp;**AIRCRAFT** |  |
| &nbsp;&nbsp;2.a | &nbsp;&nbsp;Aircraft Manufacturer | &nbsp;&nbsp;Gulfstream Aerospace |
| &nbsp;&nbsp;2.b | &nbsp;&nbsp;Aircraft Type | &nbsp;&nbsp; GV-SP<br> (G550) |
| &nbsp;&nbsp;2.c | &nbsp;&nbsp;Year of Manufacture | &nbsp;&nbsp;2008 |
| &nbsp;&nbsp;2.d | &nbsp;&nbsp;Aircraft Serial No. | &nbsp;&nbsp;5184 |
| &nbsp;&nbsp;2.e | &nbsp;&nbsp;Aircraft Registration No. | &nbsp;&nbsp;[omitted] |
| &nbsp;&nbsp; 2.f | &nbsp;&nbsp; Engine Types and Serial Numbers | &nbsp;&nbsp; Rolls Royce BR710C4-11<br> Engine Number 1, Serial Number: [omitted]<br> Engine Number 2, Serial Number: [omitted] |
| &nbsp;&nbsp;2.g | &nbsp;&nbsp;Auxiliary Power Unit Type and Serial Number | &nbsp;&nbsp; Honeywell RE220<br> Serial Number: [omitted] |
| &nbsp;&nbsp;**3** | &nbsp;&nbsp;**PLANNED AIRCRAFT OPERATIONS** |  |
| &nbsp;&nbsp; 3.a | &nbsp;&nbsp; Operation of the Aircraft by Customer | &nbsp;&nbsp;Customer desires to operate the Aircraft under Part 91 for the purpose of transporting its own personnel and guests without compensation (except as might be permitted by 14 C.F.R. 91.501 or other applicable law), and Customer will use the EJM services described herein in support of those Part 91 operations. |
| &nbsp;&nbsp;**4** | &nbsp;&nbsp;**AIRCRAFT MANAGEMENT SERVICES** |  |
| &nbsp;&nbsp; 4.a | &nbsp;&nbsp; Flight Crew | &nbsp;&nbsp; Customer desires for EJM to provide the services of two (2) captains who will be EJM employees.<br>Customer will be charged $5,243.00 per day for flight crew (inclusive of pilots and cabin attendant). |
| &nbsp;&nbsp;4.b | &nbsp;&nbsp;Maintenance | &nbsp;&nbsp;Reserved |
| &nbsp;&nbsp; 4.c | &nbsp;&nbsp; Flight Support Services | &nbsp;&nbsp;Customer desires for EJM to provide enhanced flight support services for Customer's Part 91 flight operations, with the charges for this service covered by the terms of this Agreement. |
| &nbsp;&nbsp;4.d | &nbsp;&nbsp;Fuel | &nbsp;&nbsp;Customer wants to participate in EJM's fuel management program. |
| &nbsp;&nbsp;4.e | &nbsp;&nbsp;Technical publications | &nbsp;&nbsp;Reserved |
| &nbsp;&nbsp;4.f | &nbsp;&nbsp;Travel Support | &nbsp;&nbsp;Customer wants to participate in EJM's travel support service. |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;4.g | &nbsp;&nbsp;FAA Authorizations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer desires for EJM to act as Customer's agent in applying for FAA Authorizations (i.e., RVSM, MEL, Airspace Approval, etc.) specific to Customer's flight operations under FAR Part 91. The primary business address for FAA matters is: <br> C/O Executive Jet Management, Inc. <br> Attn: Director of Operations/91 LOA<br> 4556 Airport Road<br> Cincinnati, OH 45226 |
| &nbsp;&nbsp;**5** | &nbsp;&nbsp;**FINANCIAL TERMS** |  |
| &nbsp;&nbsp;5.a | &nbsp;&nbsp;Pre-Delivery Services from Factory (Due within 30 days of services rendered) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;5.b | &nbsp;&nbsp;Pre-Buy Services Used Aircraft (Due within 30 days of services rendered) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;5.c | &nbsp;&nbsp;Feasibility Assessment (Due within 30 days of services rendered) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;5.d | &nbsp;&nbsp;Aircraft Transition Fee (Due Upon Execution of LOI) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;5.e | &nbsp;&nbsp;Hangar Evaluation Fee (Due within 30 days of services rendered) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;5.f | &nbsp;&nbsp;Crewmember Recruiting/Transition Fees | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;5.g | &nbsp;&nbsp;Monthly Management Fee ("MMF") (to be pro-rated for any partial month) | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;5.h | &nbsp;&nbsp;Operating Expenses Fund ("OEF") | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;5.i | &nbsp;&nbsp;Is a Financial Guaranty required? | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;**6** | &nbsp;&nbsp;**INSURANCE COVERAGE** |  |
| &nbsp;&nbsp;6.a | &nbsp;&nbsp;Insurance Coverage | &nbsp;&nbsp; Customer will use the fleet insurance program offered through EJM at levels specified in Attachment A and B. Such coverage will be provided to Customer pursuant to EJM's fleet insurance policy obtained by the Dry Lease Lessor at the cost and expense of the Dry Lease Lessor.<br>|
| &nbsp;&nbsp;6.b | &nbsp;&nbsp;Aircraft physical damage insurance (excluding war, hi-jacking, and other perils coverage) for owned aircraft, extended coverage with respect to any engines or parts while removed from the Aircraft, as defined in the terms and conditions of the Aircraft hull and liability policy on a stated value basis provided annually by Customer | &nbsp;&nbsp;Aircraft hull value as indicated in Item A.2.e of Attachment A |
| &nbsp;&nbsp;6.c | &nbsp;&nbsp;Passenger and third-party liability insurance (excluding war, hi-jacking, and other perils coverage) for the Aircraft which it operates | &nbsp;&nbsp; Optional enhanced combined single limit liability coverage of:<br> Five Hundred Million Dollars<br> ($500000000) |
| &nbsp;&nbsp;6.d | &nbsp;&nbsp;"War, Hi-Jacking & Other Perils Exclusion Clause Write Back Endorsement" for Aircraft Physical Damage Coverage for aircraft physical damage on an insured valued provided annually by Customer | &nbsp;&nbsp;Aircraft hull value as indicated in Item A.2.e of Attachment A |
| &nbsp;&nbsp;6.e | &nbsp;&nbsp;"War, Hi-Jacking & Other Perils Exclusion Clause Write Back Endorsement" for Aircraft Liability Coverage for passenger liability | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.f | &nbsp;&nbsp;"War, Hi-Jacking & Other Perils Exclusion Clause Write Back Endorsement" for Aircraft Liability Coverage for non-passenger bodily injury and property damage coverage | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.g | &nbsp;&nbsp;Non-Owned Aircraft Physical Damage | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.h | &nbsp;&nbsp;Spare Engine Coverage (Owned, Leased & Rented) | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.i | &nbsp;&nbsp;Personal Injury Liability Coverage | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.j | &nbsp;&nbsp;Voluntary Settlement Coverage for Owned & Non-Owned Aircraft | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.k | &nbsp;&nbsp;Medical Payments | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.l | &nbsp;&nbsp;Personal Effects and Baggage Liability | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.m | &nbsp;&nbsp;Cargo Liability | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.n | &nbsp;&nbsp;Damage to Non-Owned/Leased Hangars | &nbsp;&nbsp;See Attachment B |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;6.o | &nbsp;&nbsp;Airport Premises Liability (Note: If Customer owns, leases, or manages a hangar as a landlord, Customer will need to purchase separately any General Liability Coverage, including Hangarkeepers and Pollution Liability coverage, that might be required by other applicable hangar agreements.) | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.p | &nbsp;&nbsp;Products Liability Arising from Incidental Operations or Sale of Aircraft | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.q | &nbsp;&nbsp;Maximum Automatic Increased Value of Aircraft | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.r | &nbsp;&nbsp;Contractual Liability | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.s | &nbsp;&nbsp;Extra Expense Coverage for Temporary Replacement Parts | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.t | &nbsp;&nbsp; Extra Expense Coverage 120 Days (No Per Diem) 0 Day Wait | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.u | &nbsp;&nbsp;Trip Interruption Expense per Person including Crew | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.v | &nbsp;&nbsp;Ground Hangar Keepers Liability Each Occurrence (No Deductible) | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.w | &nbsp;&nbsp;Garage Keepers Liability Each Auto/Each Occurrence | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.x | &nbsp;&nbsp;Runway Foaming, Fire and Crash Control | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.y | &nbsp;&nbsp;Search and Rescue | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;6.z | &nbsp;&nbsp;Incidental Medical Malpractice | &nbsp;&nbsp;See Attachment B |
| &nbsp;&nbsp;**7** | &nbsp;&nbsp;**PARTIES WITH INTERESTS IN THE AIRCRAFT** |  |
| &nbsp;&nbsp;7.a | &nbsp;&nbsp;Name and address of the current registered owner(s) of the Aircraft (individually and collectively, "Owner") | &nbsp;&nbsp; TVPX Aircraft Solutions Inc., not in its individual capacity but solely as owner trustee<br> under that certain Trust Agreement dated as of _September 16, 2024<br> 39 East Eagle Ridge Drive, Suite 201,<br> North Salt Lake City, UT 84054 |
| &nbsp;&nbsp;7.b | &nbsp;&nbsp;Name of every prior registered owner of the Aircraft, including in this list the dates of ownership (months and years of registered ownership is sufficient) | &nbsp;&nbsp; CSC Delaware Trust Company, as Owner Trustee formerly known as Delaware Trust<br> Company (Pershing Square Capital Management, as Trustor)<br> 06/23/2010 to the date hereof<br>RPG550, LLC<br> 06/20/2008 through 06/23/2010 <br>Gulfstream Aerospace Corporation<br> 08/21/2007 through 06/20/2008 |
| &nbsp;&nbsp;7.c | &nbsp;&nbsp;Name of any Lender who has a security interest in the Aircraft (individually and collectively, "Lender") | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;7.d | &nbsp;&nbsp;If there is a Lender, is Lender's consent required for EJM to manage the Aircraft? | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;7.e | &nbsp;&nbsp;Name of any Financial Lessor of the Aircraft to Customer (individually and collectively, "Lessor") | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;7.f | &nbsp;&nbsp;If there is a Lessor, is Lessor's consent required for EJM to manage the Aircraft? | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;7.g | &nbsp;&nbsp;Name of every company that Customer (or an affiliate of Customer) has used for management of the Aircraft or with which Customer (or an affiliate of Customer) has placed the Aircraft for the operation of charter air transportation | &nbsp;&nbsp;N/A |
| &nbsp;&nbsp;7.h | &nbsp;&nbsp;Name of any person or entity with whom Customer has entered into a lease, interchange, timeshare, or other agreement that allows someone other than Customer and EJM to possess and operate or otherwise use the Aircraft | &nbsp;&nbsp;Dry Lease from WAFH V LLC to Pershing Square Capital Management, L.P. |
| &nbsp;&nbsp;7.i | &nbsp;&nbsp;Name of Aircraft Owner/Aircraft Lessee (provided the aircraft is leased for more than 31 days), or Owner's agent(s) under state law that may pay aircraft management fees on behalf of the Aircraft Owner | &nbsp;&nbsp;Dry Lease from WAFH V LLC to Pershing Square Capital Management, L.P. |

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Section 2 - Regulatory Considerations Relating to Control of the Aircraft

&nbsp;&nbsp;&nbsp;&nbsp;**2.1** **Acknowledgement of Differing Terminology and Standards.** The Parties acknowledge and agree that the Federal Aviation Administration ("FAA") and the Internal
 Revenue Service ("IRS") have established different standards for determining which aviation services are private in nature and which are commercial in nature. The Parties further acknowledge and agree that the FAA and the IRS have attached
 different meanings to many identical or similar terms used for the aviation industry. This Section 2 is intended to clarify the Parties' intent with respect to the aviation safety regulations of the FAA and the tax requirements of the IRS.

&nbsp;&nbsp;&nbsp;&nbsp;2.2 Operational Control Standards Applied by the FAA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Operational Control Defined.</u> The Parties acknowledge that 14 C.F.R. § 1.1 provides that "Operational control, with respect to a flight, means the exercise of
 authority over initiating, conducting or terminating a flight."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Operational Control by Customer.</u> Customer acknowledges and agrees that it will exercise operational control authority and responsibility over all flight operations
 conducted pursuant to the Dry Lease using the Aircraft, except when placed in another party's possession pursuant to an agreement identified in Item 7.h of the General Schedule. Customer further acknowledges and agrees that all of its flight
 operations conducted pursuant to the Dry Lease using the Aircraft must be conducted under Part 91 and as such may not involve the provision of air transportation for any kind of compensation or reimbursement, except as might be permitted by 14
 C.F.R. 91.501 or other applicable law. When Customer has operational control of the Aircraft, the following apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Customer is responsible for the safety of the flight operations and for complying with all applicable laws and insurance requirements relating to the possession,
 operation, and maintenance of the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Even though Customer may delegate to EJM performance of some or all of the tasks associated with carrying out Customer's responsibilities and compliance efforts, Customer
 continues to be directly responsible for performance of these tasks and for compliance with the applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Customer may have liability risk in connection with the operation of the Aircraft, including possible liability risk for at least the following: (a) enforcement actions
 for any noncompliance, and (b) liability if a flight-related occurrence causes any personal injury or property damage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In the event of an FAA violation occasioned during a period in which Customer is exercising operational control over the Aircraft, Customer shall be solely responsible
 for any fines or costs incurred as a result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Clarification.</u> For purposes of clarification, the Parties acknowledge and agree that the language in Section 2.2.b is not intended to preclude, nor shall it be
 construed as precluding, either Party from seeking remedies for breach of obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**2.3** **EJM Responsibilities on Behalf of Customer.** EJM agrees herein to act on behalf of Customer for the purposes of (a) helping Customer maintain its Aircraft, (b)
 helping Customer ensure that any flight crewmembers and maintenance technician employees are properly qualified to operate or maintain the Aircraft, and (c) providing other services to support Customer.

&nbsp;&nbsp;&nbsp;&nbsp;**2.4** **Private and Commercial Tax Standards Applied by the IRS.** The Parties intend and agree that operational possession, command, and control of the Aircraft is not the
 determining factor of whether federal excise tax will apply to the amounts paid for flight services within the meaning of federal tax law.

Section 3 - Management Services by EJM

&nbsp;&nbsp;&nbsp;&nbsp;**3.1** **Provision of Services.** EJM will perform the applicable services selected by Customer in Item 4 of the General Schedule (hereinafter the "Services"). The nature of
 the Services to be provided and the conditions under which they will be provided are described more fully in the following provisions of this Section 3. As it provides these services, EJM will ensure its own compliance with all applicable laws
 and, acting as Customer's agent, will seek to facilitate Customer's compliance with applicable laws pertaining to Customer's possession, maintenance, and operation of the Aircraft. To ensure the level of safety and service expected of EJM, the
 following minimum service guidelines apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Aircraft shall be enrolled in EJM's FOQA program;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Customer shall enroll in EJM's MedAire 360 service, and the Aircraft shall carry the MedAire Aircraft First Aid Kit with Rx (AFAK Rx), including an automated external
 defibrillator (AED);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The Aircraft shall be monitored by EJM maintenance control and flown in accordance with EJM maintenance and operational requirements (see Section 3.6 and 3.7);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Customer shall use EJM operations center to plan all Part 91 flights on the Aircraft (see Section 3.9);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Customer shall use EJM Owner Services to schedule all Part 91 flights on the Aircraft (see Section 3.11);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Customer must (i) insure the Aircraft with EJM's fleet insurance policy (see Section 6) and/or (ii) have at least one crewmember or maintenance technician who is employed
 by EJM (see Section 3.4); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. All pilots operating the Aircraft must be reviewed and approved by EJM to ensure the crewmembers meet EJM's safety requirements (see Section 3.2).

&nbsp;&nbsp;&nbsp;&nbsp;**3.2** **Qualifications of Aviation Professionals Serving the Aircraft.** Customer and EJM agree on the following safety and professional standards for the pilots, cabin
 attendants, and maintenance technicians that will be used in the operation of the Aircraft. For the mutual protection of the Parties' legal interests and good reputations, the same standards will apply regardless of who is deemed the employer
 of the aviation professional and regardless of who is deemed the operator of the Aircraft for any given flight. The Party hiring or retaining the services of the pilot, cabin attendant, or maintenance technician (together "flight crewmembers")
 is responsible for ensuring the compliance of such aviation professional with the standards below. In any case where EJM is not the person employing or retaining the pilot or cabin attendant who will serve on the Aircraft, Customer will
 provide, or cause someone to provide, EJM with the information and records necessary for EJM to review compliance with the standards below, and EJM will have the right to approve or disapprove of any proposed pilot or cabin attendant. EJM
 agrees that it will not unreasonably withhold or delay approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Each pilot must meet and maintain the following minimum qualifications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Hold a valid airline transport pilot certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Hold any other certificate, rating, type rating or endorsement appropriate to the Aircraft, type of operations contemplated by Customer, or as otherwise required by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Hold a first-class medical certificate, except EJM Director of Operations or designee may approve a second-class medical certificate in his/her sole discretion, in
 accordance with applicable regulations, and for a limited time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. All pilots have met all training, checking, and flight currency requirements from FAA and EJM's applicable policies (including SIM training from an EJM approved vendor);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Satisfy any insurance policies applicable to the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Except as mutually agreed by the Parties, if serving as a captain, have at least three thousand five hundred (3,500) hours of flight time, including either (A) one
 hundred (100) hours of flight time in the Aircraft type or (B) having completed an initial or recurrent training and checking event in a full motion simulator within the preceding six (6) months;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. Except as mutually agreed by the Parties, if serving as a first officer, have at least two thousand five hundred (2,500) hours of flight time, including either (A) one
 hundred (100) hours of flight time in the Aircraft type or (B) having completed an initial or recurrent training and checking event in a full motion simulator within the preceding six (6) months; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. Satisfy all applicable TSA and/or Homeland Security requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For subparts (vi) and (vii) above, either Party may recommend a pilot with less than the minimum requirements and the other Party may approve or deny such recommendation
 and set limitations on the duties of any such pilot in its sole discretion. Any agreed exception will be documented in writing (email exchange with agreement by each Party is acceptable).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Each cabin attendant, if any, must meet all applicable FAA training requirements and must satisfy any requirements established by any insurance policy applicable to the
 Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Each maintenance technician, if any, must hold a valid airman certificate issued by the FAA under 14 CFR Part 65, as well as any other certificate, rating, or endorsement
 appropriate to the Aircraft or otherwise required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. In addition to the standards above, the qualifications of each pilot, cabin attendant, and maintenance technician must comply with applicable law and with the conditions
 of the insurance policies required under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**3.3** **Flight Crewmembers and Maintenance Technicians Employed or Otherwise Retained by Customer.** Customer shall not employ or otherwise retain any maintenance
 technicians or flight crewmember or to provide services in support of the Aircraft. All maintenance technicians must be retained through EJM, and all flight crewmembers must be retained through EJM or Dry Lease Lessor under a separate
 agreement, if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;**3.4.** **Flight Crewmember and Maintenance Technician Services Provided by EJM.** The following terms shall apply to the extent that Customer has indicated in Items 4.a and
 4. b of the General Schedule that it desires for EJM to employ flight crewmembers and provide their services in support of Customer's flight operations under Part 91, or for EJM to employ one or more maintenance technicians to work on the
 Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Employment Responsibility.</u> As specified in Item 4.a of the General Schedule, EJM shall employ captains, first officers, and cabin attendants and furnish the
 services of those flight crewmembers in support of Customer's flight operations under Part 91, and shall employ the maintenance technicians needed to perform basic maintenance on the Aircraft. The cost of these services will be mutually agreed
 by Customer and EJM in writing and will be updated by additional mutual written agreements from time to time. In consideration for this service, Customer shall pay EJM the agreed amount of such personnel compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Compensation.</u> EJM shall be solely responsible for the payment of all compensation to its employees covered by this Section, including (without limitation) all
 salary, wage, and benefits payments. EJM shall collect and remit any applicable taxes associated with such employment and compensation package. From time to time, EJM will reevaluate the compensation provided to these employees. EJM shall
 indemnify, defend and hold Customer harmless from any monetary harm or liability associated with or claims arising from EJM's failure to make such payments or arrange such workers' compensation insurance and unemployment insurance, as set forth
 in this Section. EJM shall consult with Customer on any compensation change that EJM proposes to make for these employees. Customer's payments under this Section may be increased only if Customer agrees to the increase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Workers Compensation and Employer Liability Coverage.</u> EJM shall be solely responsible for providing workers' compensation insurance and unemployment insurance, as
 required by Applicable Law. EJM also will maintain Employer Liability Coverage in an amount of not less than One Million U.S. Dollars (US$1,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Employer Decision Making Authority.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Customer and EJM do not intend to create a co-employment relationship covering these aviation professionals. EJM shall be solely authorized to make employment decisions
 affecting its employee flight crewmembers and maintenance technicians. Customer acknowledges that, as a matter of employment law, it shall have no authority to direct EJM to make any particular employment decision affecting EJM's employees,
 even though these crewmembers and maintenance technicians: (x) are also interviewed and accepted by Customer, (y) are dedicated to serving on the Aircraft, and (z) may be hired away by Customer from EJM to become Customer's direct employees at
 any time without penalty. EJM desires Customer's feedback on the job performance and professionalism of EJM's employee flight crewmembers and maintenance technicians, and EJM shall take all of Customer's remarks into account when making
 personnel decisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To help ensure performance and Customer's satisfaction, EJM shall consult with Customer on all new employee hires contemplated in this Section and shall afford Customer
 an opportunity to meet each prospective flight crewmember and maintenance technician before they are hired. EJM will not employ an aviation professional for dedicated service on the Aircraft under this Agreement unless Customer first confirms
 its satisfaction with the candidate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) After assignment of personnel, if Customer finds deficiencies in an individual's job performance or professionalism, Customer shall inform EJM so that EJM has an
 opportunity to help address those issues with its employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If Customer continues to experience deficiencies in the individuals job performance or professionalism and, as a result, desires for EJM to dismiss or otherwise take
 personnel action against that EJM employee for any lawful reason, Customer shall inform EJM. EJM may ask for confirming information to be provided by Customer in writing. EJM will review Customer's concerns and consult with Customer on the
 situation. If the matter is not resolved by these consultations, then either Party may exercise its termination rights under Section 7.1 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**3.5** **Flight Crewmember Services by a Third Party (other than the Dry Lease Lessor set forth in Section 3.6)** To the extent that Customer has requested in Item 4.a of the
 General Schedule or later requests for EJM to arrange for flight crewmembers employed by a third party to serve on the Aircraft during Customer's flight operations under Part 91, the following terms shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Reimbursement of Costs by Customer.</u> Customer shall reimburse EJM for all fees and costs associated with the service of the third-party crewmembers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Screening of Employees.</u> EJM will assist Customer by developing and executing an appropriate screening procedure for the third-party flight crewmembers. Customer
 shall reimburse EJM for its reasonable, documented expenses associated with the provision of these services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Crewmember Training.</u> EJM shall work with Customer and the third-party service provider to ensure that the third-party pilots work under a safety-oriented program
 meeting all applicable regulatory and EJM requirements as is appropriate to the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Pilot Flight and Duty Limitations.</u> EJM will assist Customer in reviewing the third-party flight crewmember's flight and duty limitations.

&nbsp;&nbsp;&nbsp;&nbsp;**3.6** **Cabin Attendant Services by Dry Lease Lessor.** Customer desires to retain the services of a cabin attendant provided by Dry Lease Lessor. Customer shall arrange for
 such cabin attendant directly with Dry Lease Lessor. Dry Lease Lessor shall be solely responsible for the payment of all compensation to its flight crewmembers, including (without limitation) all salary, wage, and benefits payments, as well as
 for collecting and remitting any and all applicable taxes associated with such compensation, and EJM shall have no liability or obligations regarding the same. Dry Lease Lessor also shall be solely responsible for providing workers'
 compensation insurance and unemployment insurance for its flight crewmembers, as required by applicable laws. Customer shall indemnify, defend and hold EJM harmless from any monetary harm or liability associated with or claims arising from Dry
 Lease Lessor's failure to make such payments or arrange such workers' compensation insurance and unemployment insurance, as set forth in this Section 3.6.

&nbsp;&nbsp;&nbsp;&nbsp;**3.7** **Operations and Maintenance Procedures.** All flights under this Agreement shall be operated in accordance with EJM's operational and maintenance procedures as
 documented in EJM's General Operational and Maintenance Manual (GOMM and otherwise in accordance with all applicable laws and regulations).

&nbsp;&nbsp;&nbsp;&nbsp;**3.8** **Hangar for the Aircraft.** Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;**3.9** **Flight Support Services.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Customer indicated in Item 4.c of the General Schedule that it desires for EJM to provide enhanced flight support services for Customer's Part 91 flight operations. EJM
 will provide those services as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In line with EJM's emphasis on safety and continuous quest for opportunities to improve safety across the fleet, if compatible, the Dry Lease Lessor has caused the
 Aircraft to be entered into the EJM Flight Operations Quality Assurance (FOQA) program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Customer shall enroll in EJM's MedAire 360 service, and the Aircraft shall carry the MedAire Aircraft First Aid Kit with Rx (AFAK Rx), including an automated external
 defibrillator (AED).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) EJM will work with Customer to document and implement safe operational capabilities for the Aircraft and crew, including Aircraft performance, weather conditions, airport
 facilities, airspace limitations (e.g., FAA Notices to Airman and FAA Temporary Flight Restrictions), duty time, fuel reserves, weight and balance control, Aircraft servicing, crew training, and other safety considerations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) EJM will monitor and review conformance of the Aircraft operations with applicable aeronautics authorities' regulations and with the capabilities established for the
 Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) EJM will obtain information on flight and weather conditions that might affect Customer's flights using the Aircraft, and will communicate such information to Customer as
 appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) EJM will assist Customer in establishing and applying procedures for assuring that the Aircraft is airworthy and that the Aircraft and the flight crew are positioned for
 departure reasonably in advance of departure time for Customer's Part 91 flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) EJM will assist Customer with maintaining detailed logs of each Part 91 trip using the Aircraft, including recording such data as the locations on the itinerary,
 passengers carried, and total time en route.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) EJM will assist Customer in maintaining aboard the Aircraft current flight manuals, Aircraft manuals, airway charts, and other documents and materials required to support
 Customer's flight operation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) EJM will provide a system for flight scheduling by Customer, recording and coordinating trip requests and handling all details arising out of Customer's scheduling of the
 Aircraft and any other EJM-managed flights of Customer such as ground transportation, aircraft commissary and catering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) As a participant in the FAA's Collaborative Decision Making ("CDM") process for managing traffic congestion, EJM will handle the preparation and submission of CDM
 requests to facilitate Customer's Part 91 flight operations using the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) EJM will manage Customer's overflight exemption filings with the U.S. Customs and Border Protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) As applicable to the use of the Aircraft, EJM will assist Customer in the collection and reporting of flight and fuel data for compliance with regulatory requirements
 relating to aircraft emission trading systems. EJM also will assist Customer with any required emission registrations and with Customer's procurement of necessary emissions credits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Customer will be responsible for paying directly, or for reimbursing EJM, for any third-party services that might be used in the planning and following of the Aircraft
 while Customer is using the Aircraft for Part 91 transportation.

&nbsp;&nbsp;&nbsp;&nbsp;**3.10** **Fuel Program.** Customer has elected in Item 4.d of the General Schedule to participate in EJM's fuel management program. EJM will enroll Customer as a participant
 in the program and permit Customer to enjoy the benefits of participation in that program, as the same may be revised by EJM from time to time. EJM shall promptly notify Customer of any revisions to the fuel management program.

&nbsp;&nbsp;&nbsp;&nbsp;**3.11** **Travel Support Service.** Customer indicated in Item 4.f of the General Schedule that it desires for EJM to provide travel services. EJM will arrange on behalf of
 Customer all crew hotel, airline, and ground transportation services needed for Customer's flight operations and crew training.

&nbsp;&nbsp;&nbsp;&nbsp;**3.12** **Parts, Materials or Other Items.** Any and all parts, materials or other items purchased by Customer and made a permanent part of the
 Aircraft or for which EJM is reimbursed by Customer or through funds set forth herein, including any such items held as inventory, shall be the property of Customer and any such parts, materials or items shall be delivered to Customer
 immediately upon termination of this Agreement.

Section 4 - Accounts and Payments

&nbsp;&nbsp;&nbsp;&nbsp;**4.1** **Initial Payments.** Reserved.

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&nbsp;&nbsp;&nbsp;&nbsp;**4.2** **Account Statements.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. EJM will send account statements to Customer by electronic mail as follows.

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Type of Statement** | &nbsp;&nbsp; **Costs Included**<br> **(if applicable)** | &nbsp;&nbsp; **Date Typically**<br> **Sent Out** | &nbsp;&nbsp; **Date and**<br> **Method of**<br> **Payment** |
| &nbsp;&nbsp; Monthly Variable Costs\*<br> (payment in arrears) | &nbsp;&nbsp; All other costs not included in the Monthly Fixed Cost Statement, such as: <br> ● Fuel<br> ● EU/UK/CORSIA Carbon Program Compliance<br> ● Airport and air traffic control fees<br> ● Foreign flight permit fees<br> ● Customs and immigration fees<br> ● Catering<br> ● Ground transportation | &nbsp;&nbsp; within 30 days<br> after each month | &nbsp;&nbsp; 30 days after<br> delivery of the<br> statement via<br> ACH\*\* |
| &nbsp;&nbsp; \* Includes a summary of the Aircraft activity for the prior month. <br> \*\* If the Monthly Variable Cost statement shows a net amount owed to Customer, EJM shall pay such amount within 15 days after providing the statement to Customer. | &nbsp;&nbsp; \* Includes a summary of the Aircraft activity for the prior month. <br> \*\* If the Monthly Variable Cost statement shows a net amount owed to Customer, EJM shall pay such amount within 15 days after providing the statement to Customer. | &nbsp;&nbsp; \* Includes a summary of the Aircraft activity for the prior month. <br> \*\* If the Monthly Variable Cost statement shows a net amount owed to Customer, EJM shall pay such amount within 15 days after providing the statement to Customer. | &nbsp;&nbsp; \* Includes a summary of the Aircraft activity for the prior month. <br> \*\* If the Monthly Variable Cost statement shows a net amount owed to Customer, EJM shall pay such amount within 15 days after providing the statement to Customer. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Customer will pay all amounts owed under the Monthly Variable Costs Statement by making an Automated Clearing House ("ACH") payment delivered to EJM via the following
 account, without any deduction of fees for the ACH transfer.

Executive Jet Management, Inc. Wells Fargo Bank San Francisco, CA 94104 Routing # [Routing #]<br> Account # [Account #]<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. EJM will make any payments to Customer by ACH, without any deduction of fees, to an account that Customer will provide for EJM's use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. All payments made under this Agreement shall be made using United States Dollars.

&nbsp;&nbsp;&nbsp;&nbsp;**4.3** **Annual Budgets and Adjustments.** Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;**4.4** **Invoice Questions or Disputes.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Requests for Documentation and Clarification.</u> Customer may at any time ask EJM to provide reasonable, supporting documentation or clarification of the line items
 included in an account statement (including, but not limited to, fuel purchase statements and maintenance invoices).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Payment of Undisputed Items Pending Resolution of Other Items.</u> If Customer has a question or dispute about a specific line item in a Monthly Variable Costs
 statement that is not resolved before the due date for Customer's payment, Customer must pay all of the other line items covered by that Monthly Variable Costs statement.

&nbsp;&nbsp;&nbsp;&nbsp;**4.5** **Timely Payment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Timely Payment by Customer as a Condition of EJM's Obligations.</u> Customer hereby acknowledges and agrees that time is of the essence for Customer's timely payment
 to EJM and that such timely payment is a precondition of EJM's obligations to provide the Services contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Possible Suspension of Services for Lack of Timely Payment.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Customer acknowledges that EJM may suspend without advance notice all Services under this Agreement if any of the following conditions comes into existence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Customer's bank fails to process an auto-debit transaction on the due date specified for payment of the relevant invoice, and such a discrepancy is not remedied within
 two (2) business days; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Customer's account has any amount outstanding for more than ninety (90) days past its due date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Penalties for Late Payment.</u> Failure by Customer to pay an outstanding amount within ten (10) days after it is due shall result in the imposition of a charge of one
 percent (1.00%) per month, or the maximum interest allowed by law, whichever is less.

&nbsp;&nbsp;&nbsp;&nbsp;**4.6** **Cost Passthrough.** Except as otherwise expressly provided in this Agreement, all goods and services purchased by EJM to support the flight activities of the
 Aircraft shall be passed on to Customer at EJM's actual cost, with no markup by EJM. EJM shall use commercially reasonable efforts to secure discounts on all purchases made on behalf of Customer, and all such discounts shall be passed through
 to Customer in full.

&nbsp;&nbsp;&nbsp;&nbsp;**4.7** **Other Payments.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Insurance Costs Relating to EJM Fleet Policy.</u> Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Advance Payment on Large Expenses.</u> Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Federal Excise Tax.</u> As a lessee of the Aircraft for more than a 31-day period, Customer is generally not required to pay federal excise tax and EJM will not
 collect federal excise tax on payment made by Customer. However, EJM shall collect federal excise tax of 7.5% on payment for monthly management fees, flight activity charges, pass through charges and charges for other support services that are
 remitted by anyone other than (1) the registered owner of the Aircraft, (2) the lessee of the Aircraft, provided that the lease term is more than 31 days; or (3) an agent of the registered owner or lessee of the Aircraft under state law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Miscellaneous Expenses.</u> In addition to those fees and costs that are the responsibility of Customer as specified elsewhere in this Agreement, Customer shall be
 responsible for the miscellaneous expenses directly related to Customer's use of the Aircraft including, without limitation, air traffic control fees, airport landing fees, customs and immigration fees and taxes, catering, ground
 transportation, fuel, and EU/UK/CORSIA carbon compliance charges.

Section 5 - Representations, Warranties, and Covenants

&nbsp;&nbsp;&nbsp;&nbsp;**5.1** **Representations, Warranties, and Covenants of EJM.** EJM represents, warrants, and covenants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. It is a corporation organized under the laws of the State of Ohio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. It is and will remain in good standing as a corporation with its state of organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. It has the right, power, and authority to enter into this Agreement, and the officer executing this Agreement on its behalf is duly authorized to do so;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. By executing this Agreement or performing the obligations contemplated in this Agreement, it will not breach any agreement between itself and a third party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. It is an air carrier duly licensed to operate under 14 C.F.R. Parts 119 and 135.

&nbsp;&nbsp;&nbsp;&nbsp;**5.2** **Representations, Warranties, and Covenants of Customer.** Customer represents, warrants, and covenants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. It is and will remain a business entity of the type specified in Item 1.b of the General Schedule, and is organized under the laws of the State specified in Item 1.c of
 the General Schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. It is and will remain in good standing as a business entity with its State of organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. It has the right, power, and authority to enter into this Agreement, and the officer executing this Agreement on its behalf is duly authorized to do so;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. By executing this Agreement or performing the obligations contemplated in this Agreement, it will not breach any agreement between itself and a third party, including
 without limitation any loan arrangement with a Lender identified in Item 7.c of the General Schedule or any lease with a Lessor identified in Item 7.e of the General Schedule;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. The information provided in Items 1, 2, 3, and 7 of the General Schedule is complete, true, correct, and not misleading to Customer's knowledge, information, and belief;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. It holds and will continue to hold legal title or right of possession of the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. It will not offer to provide, or actually conduct, any air transportation for compensation, except as might be permitted by 14 C.F.R. 91.501 or other applicable law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. It is providing a hull value amount in Item A.2.e of Attachment A that is acceptable in Customer's estimation and that satisfies any loan or lease agreement to which
 Customer is a party, and Customer acknowledges that it is Customer's sole responsibility to monitor the value of its Aircraft and to notify EJM in writing if Customer desires any change in the hull value amount to be used in Item A.2.e of
 Attachment A.

Section 6 - Insurance

&nbsp;&nbsp;&nbsp;&nbsp;**6.1** **Aviation Insurance.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Levels of Coverage.</u> Dry Lease Lessor will maintain aviation insurance coverage that meets or exceeds the minimum levels of insurance coverage specified in
 Attachment B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) As part of the insurance application process and as an additional precondition to receipt of the binding insurance coverage contemplated in this subsection, Customer will
 provide copies of any agreements relating to the Aircraft to which the Customer is a party which agreements may be deemed a material issue in relation to the proposed insurance. All copies of such agreements shall be sent to the following
 address: Executive Jet Management, Inc., Attn: Risk Management Department, 4111 Bridgeway Avenue, Columbus, Ohio 43219.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The policy will be endorsed to state that this Agreement is an insured contract under the policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>EJM Services and Charter Conditional.</u> CUSTOMER ACKNOWLEDGES AND AGREES THAT EJM WILL HAVE NO OBLIGATION TO PROVIDE SERVICES UNDER THIS AGREEMENT IF THERE IS ANY
 GAP WHATSOEVER IN THE INSURANCE COVERAGE.

&nbsp;&nbsp;&nbsp;&nbsp;**6.2** **Workers Compensation and Employer Liability Coverage.** During the term of this Agreement, EJM will maintain in full force and effect, Workers Compensation and
 Employer Liability Coverage in an amount of not less than One Million U.S. Dollars (US$1,000,000) covering any and all employees.

&nbsp;&nbsp;&nbsp;&nbsp;**6.3** **Sole Recourse to Insurance Proceeds.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Sole Recourse for Hull Loss or Damage or for Other Liability.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) CUSTOMER AGREES TO ACCEPT THE PROCEEDS OF THE HULL INSURANCE SPECIFIED IN THE POLICY REQUIRED BY THIS AGREEMENT AS CUSTOMER'S SOLE RECOURSE AGAINST EJM FOR ANY LOSS OR
 DAMAGE SUSTAINED TO THE AIRCRAFT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) CUSTOMER AND EJM AGREE TO ACCEPT THE PROCEEDS OF THE LIABILITY INSURANCE REQUIRED BY THIS AGREEMENT AS THEIR SOLE RECOURSE AGAINST EACH OTHER IN THE EVENT OF ANY CLAIM
 RELATING TO A TYPE OF INJURY, DEATH, OR PROPERTY DAMAGE FOR WHICH SUCH INSURANCE IS BEING PROVIDED UNDER THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Exception from Sole Recourse Limitation.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The limitations provided above in <u>Section 6.3.a</u> above will not operate against one Party to the extent that insurance is disclaimed by the insurer, or the
 proceeds are withheld, reduced, or returned to the insurer ("clawed back") as a result of the actions or inactions of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event that one Party is subjected to claims or other damages as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the other Party causing the insurance coverage to be disclaimed, or the proceeds thereof to be withheld, reduced, or clawed back;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the other Party breaching its obligations under this <u>Section 6,</u> including the failure of the other Party to maintain insurance required under this Agreement; or

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| | |
|:---|:---|
| (3) | the other Party's fraud, gross negligence or willful misconduct causing insurance coverage to be disclaimed, or the proceeds thereof to be withheld, reduced, or clawed back; <br>|
| then such other Party shall indemnify, defend and hold harmless the Party that has been subjected to the claims or other damages up to the same coverage levels as specified in Attachment B, taking into consideration any insurance proceeds that might be received. | then such other Party shall indemnify, defend and hold harmless the Party that has been subjected to the claims or other damages up to the same coverage levels as specified in Attachment B, taking into consideration any insurance proceeds that might be received. |

---

Section 7 - Term and Termination

&nbsp;&nbsp;&nbsp;&nbsp;**7.1** **Term.** This Agreement shall remain in full force and effect from the Effective Date until either Party gives the other written notice of intent to terminate this
 Agreement, whereupon the Agreement shall end thirty (30) calendar days after such notice has been delivered, unless a longer period has been requested by Customer and agreed by EJM (the "Term").

&nbsp;&nbsp;&nbsp;&nbsp;**7.2** **Event of Default.** The following shall constitute a default under this Agreement ("Event of Default") by the Party responsible for such event or causing/allowing
 such event to occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. a material violation of applicable law relating to the ownership, possession, maintenance, staffing, security, or operation of the Aircraft, including any holding out of
 the Aircraft for the purpose of soliciting charter flight activity, when such holding out is done either by Customer, by a party identified in Item 7.h of the General Schedule, or by a party under the control of Customer or such party
 identified in Item 7.h of the General Schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. failure to make payments due hereunder within ten (10) days of the due date, together with failure to cure within seven (7) days after receipt of written notice that such
 payments are overdue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. except as specified in Section 7.2.b, the other Party's violation of any term, representation, or warranty set forth in this Agreement at any time during the Term hereof,
 together with a failure to cure within thirty (30) days after receipt of written notice of such violation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the surrender, suspension, or revocation of EJM's FAA-issued air carrier certificate for operations under 14 C.F.R. Parts 119 and 135;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Customer materially breaches any loan, lease, or other type of agreement with a Lender or Lessor identified in Item 7.c or 7.e of the General Schedule, respectively,
 where such breach triggers immediate termination of such agreement or where such breach remains uncured long enough to trigger termination of such agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Customer authorizes a Part 135 air carrier other than EJM to place the Aircraft on such other air carrier's operations specifications. For clarification and without
 limiting the generality of the foregoing sentence, this provision is not aimed at preventing Customer from making a future transition of management arrangements for the Aircraft, but it is aimed at preventing simultaneous listings of the
 Aircraft on two different air carrier's operations specifications such that confusion over responsibilities and authorities for ensuring the proper maintenance and operation of the Aircraft could arise among the Customer, EJM, and the
 third-party air carrier or such that such a perception that this confusion exists could arise with regulatory authorities like the FAA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. a lapse of any insurance coverage required by Section 6 of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. either Party makes a general assignment for the benefit of creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. a decree of bankruptcy or insolvency is issued against the Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. a voluntary or involuntary proceeding is commenced against the Party seeking such Party's liquidation or reorganization, or seeking the appointment of a receiver or
 liquidation over any substantial portion of such Party's assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. an attempt to assign this Agreement, or any right or interest created hereunder, in violation of Section 9.2.

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&nbsp;&nbsp;&nbsp;&nbsp;**7.3** **Termination.** In addition to any other termination rights set forth herein, this Agreement may be terminated as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Termination Related to Sale of Aircraft.</u> Upon fourteen (14) days prior written notice by Customer to EJM, in the event that Aircraft owner enters into a written
 contract to sell the Aircraft to a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Immediate Termination by either Party.</u> Immediately (without prejudice to any other rights the Parties hereto may have available) in the event of any of the
 following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an Event of Default by the other Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) condemnation, confiscation, grounding, requisition, or seizure of the Aircraft by any governmental authority which cannot, within the reasonable judgment of Customer, be
 lifted within sixty (60) calendar days of the date of such grounding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) damage to the Aircraft such that it is, in the Customer's reasonable opinion, inoperable and cannot be made operative within sixty (60) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) total loss or destruction of the Aircraft or such damage to the Aircraft that causes it to be irreparable in the opinion of the insurance carrier providing the insurance
 coverage required by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Termination by EJM for Determination of EJM as Government Contractor and/or Subject to Government Contracting Requirements.</u> Notwithstanding any language in this
 Agreement to the contrary, either party may immediately terminate this Agreement in the event that, for purposes of or as a result of this Agreement, EJM is determined to be a government or public contractor of any federal, state, or local
 governmental entity, body, agency, department, division, subdivision, or the like and/or that, for purposes of or as a result of this Agreement, EJM is otherwise subject to any federal, state, or local governmental contracting requirements,
 whether embodied in statutes, regulations, case law, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;**7.4** **Post Termination Activity.** In the event this Agreement is terminated, whether by expiration, default or otherwise, the following shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Within ninety (90) days, a full accounting shall be made by representatives of both EJM and Customer and all accounts settled between the Parties, save that EJM may later
 forward to Customer for payment invoices that EJM receives subsequently from third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. EJM shall remove the Aircraft from all direct bill fuel programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. EJM shall promptly, turn over to Customer the Aircraft and all Aircraft log books and records.

Section 8 - Confidentiality

&nbsp;&nbsp;&nbsp;&nbsp;**8.1** **Receipt of Confidential Information.** Each Party ("Receiving Party") acknowledge that it will receive nonpublic information regarding the other Party's
 ("Disclosing Party's") companies, affiliates, and customers that the Disclosing Party deems confidential ("Confidential Information"). Without limitation, such Confidential Information may include information in tangible or intangible form
 relating to and/or including: the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The terms of this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The identity and service preferences of EJM's customers or NetJets' fractional customers,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. EJM's and its affiliates' business policies, plans, practices, manuals, and maintenance tracking capabilities, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Customer's and its affiliates' business policies, plans, practices, and travel itineraries.

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&nbsp;&nbsp;&nbsp;&nbsp;**8.2** **Exclusion from Confidential Information.** Confidential Information shall not include any information that is or subsequently becomes publicly available without the
 Receiving Party's breach of an obligation owed to the Disclosing Party nor shall this Section 8 be deemed to prohibit disclosure of any Confidential Information by a party to its lenders and potential lenders, attorneys, accountants and other
 financial advisors, nor to a federal or state taxing authority in connection with taxation matters or exemptions therefrom of such party.

&nbsp;&nbsp;&nbsp;&nbsp;**8.3** **Obligations to Protect Confidential Information.** As to the Confidential Information, the Receiving Party shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Take reasonable security precautions, at least as great as the precautions the Receiving Party takes to protect its own confidential information, but no less than
 reasonable care, to keep confidential the Confidential Information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Refrain from disclosing any Confidential Information to third parties, except (i) as reasonably required in the performance of the Receiving Party's obligations under
 this Agreement, (ii) to its affiliates, (c) to the extent that disclosure to attorneys, accountants, financial advisors, lenders, brokers, intermediaries, agents or other necessary parties is necessary or advisable for performance of or advice
 in connection with this Agreement or the Aircraft, (iv) as required by law or legal process (provided that the Receiving Party, if allowed by law, gives the Disclosing Party reasonable notice prior to such disclosure to allow Disclosing Party a
 reasonable opportunity to seek a protective order or equivalent), or (v) as may be necessary to enforce the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;**8.4** **Handling of Unauthorized Disclosures.** The Receiving Party shall notify the Disclosing Party immediately upon discovery of any unauthorized use or disclosure of
 Confidential Information by the Receiving Party, and must cooperate with the Disclosing Party in every reasonable way to help the Disclosing Party regain possession of the Confidential Information and prevent further unauthorized use or
 disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;**8.5** **Equitable Relief.** Receiving Party acknowledges that monetary damages may not be a sufficient remedy for unauthorized disclosure of Confidential Information and
 that the Disclosing Party shall be entitled, without waiving any other rights or remedies, to such injunctive or equitable relief as may be deemed proper by a court of competent jurisdiction. If the Disclosing Party employs attorneys to enforce
 any rights arising out of or relating to this section and prevails in its claim, the Disclosing Party shall be entitled to recover reasonable attorney's fees and costs from the Receiving Party.

Section 9 - Miscellaneous

&nbsp;&nbsp;&nbsp;&nbsp;**9.1** **Amendment.** No amendment or waiver of this Agreement will be effective unless it is in writing and duly signed by the Parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;**9.2** **Assignment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Neither Party may assign its rights or responsibilities under this Agreement without the prior written consent of the other Party, which consent may not be unreasonably
 withheld or delayed. Any attempted assignment not approved by the other Party, as provided in this section, shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Notwithstanding the requirements of Section 9.2.a above, either Party may assign, after providing advance written notice but without having to obtain the other Party's
 prior written consent, its rights and obligations under this Agreement, in whole or in part: (i) to a parent, affiliate, or subsidiary; or (ii) to the surviving entity resulting from a merger with Customer or from the sale of substantially all
 of Customer's assets and business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Any assignment made in accordance with this section will relieve the assigning Party from any further rights or obligations under this Agreement, so long as the assignee
 agrees in writing to assume all such rights and obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Subject to the foregoing, the terms and conditions of this Agreement shall be binding upon and inure to the benefit of Customer and EJM and their respective successors
 and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;**9.3** **Audits.** Customer may at any time audit EJM's financial expense and maintenance records relating to the Aircraft, provided that such auditing activity must be
 requested in writing and must be conducted during normal business hours. As part of any such audit, Customer and its accountants, attorneys, and aviation technical advisors may make copies of the records, but solely for the purpose of the audit
 and not for distribution to third parties, other than as might be required by law.

------

&nbsp;&nbsp;&nbsp;&nbsp;**9.4** **Computation of Time.** Unless otherwise specified in this Agreement, all references to the number of days within which something will occur or must be made to occur
 shall be deemed to refer to calendar days.

&nbsp;&nbsp;&nbsp;&nbsp;**9.5** **Counterparts.** This Agreement may be executed in one or more counterparts, all of which together shall constitute the executed agreement. A facsimile signature,
 PDF signature or other electronic/digital signature (e.g., DocuSign) shall be deemed for all purposes to be an original.

&nbsp;&nbsp;&nbsp;&nbsp;**9.6** **Entire Agreement.** This Agreement contains the entire understanding between the Parties with respect to the subject matter herein and supersedes all previous
 communications, representations, and agreements, whether oral or written, between the Parties with respect to the subject matter herein. Both Parties either have retained or have at least had the opportunity to retain, at their own expense,
 legal counsel to assist them in the formation of this Agreement. Neither this Agreement nor any ambiguous provision herein may be construed for or against a Party on the basis of whether such Party proposed or drafted the language.

&nbsp;&nbsp;&nbsp;&nbsp;**9.7** **Force Majeure.** Neither Party shall be liable for any failure or delay in performance under this Agreement to the extent said failures or delays are proximately
 caused by causes beyond that Party's reasonable control and occurring without its fault or negligence, provided that, as a condition to the claim that a Party is not liable, the Party experiencing the difficulty shall give the other prompt
 written notice, with full details following the occurrence of the cause relied upon. This Agreement may be terminated immediately by either Party giving written notice to the other, if a force majeure condition lasts more than 30 calendar days.

&nbsp;&nbsp;&nbsp;&nbsp;**9.8** **Further Assurances.** Each Party hereto shall execute and deliver all such further instruments and documents as may reasonably be requested by the other Party in
 order to fully carry out the intent and accomplish the purposes of this Agreement as well as to comply with any change in any applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;**9.9** **Governing Law and Court Jurisdiction.** This Agreement shall be governed by, interpreted, and construed in accordance with the laws of the State of Ohio, excluding
 its choice of law provisions. For any matter arising under this Agreement, the Parties hereto consent to the jurisdiction of the federal trial courts in Ohio where the matter in controversy meets the jurisdictional threshold requisites, and to
 the jurisdiction of the state trial courts in Ohio where federal jurisdiction does not exist.

&nbsp;&nbsp;&nbsp;&nbsp;**9.10** **Indemnification.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Indemnification of Customer by EJM.</u> EJM shall indemnify, defend, and hold harmless Customer (including Customer's parent, sister, and subsidiary companies and all
 of their respective shareholders or members or partners, directors, officers, employees, agents, and counsel) from and against any and all third-party claims, actions, suits, proceedings, judgments, administrative agency civil penalties,
 damages, costs, and expenses (including, without limitation, reasonable and documented attorneys' fees and costs) to the extent they are due to any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) EJM's violation of any law applicable to the ownership, possession, maintenance, staffing, security, or operation of the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) EJM's material breach of a provision of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The indemnification commitment made by EJM under Section 3.4.b;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The indemnification commitment made by EJM under Section 6.3.b; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) A claim by any current, past, or prospective pilot, cabin attendant, or maintenance technician employed or otherwise retained by EJM under Section 3, where such claim
 involves job selection, retention, pay, benefits, training, promotion, discipline, retirement, severance, injury on the job, or employment taxes, except to the extent that either of the following conditions apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Such claim alleges an unlawful or wrongful action or inaction by Customer (including Customer's parent, sister, and subsidiary companies and all of their respective
 shareholders or members or partners, directors, officers, employees, agents, and counsel); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Such claim is based on an action or inaction by EJM, and EJM took such action or did not take such action based on the written direction of Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Indemnification of EJM by Customer.</u> Customer shall indemnify, defend, and hold harmless EJM (including EJM's parent, sister, and subsidiary companies and all of
 their respective shareholders or members or partners, directors, officers, employees, agents, and counsel) from and against any and all third-party claims, actions, suits, proceedings, judgments, administrative agency civil penalties, damages,
 costs, and expenses (including, without limitation, reasonable and documented attorneys' fees and costs) to the extent they are due to any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Customer's violation of any law applicable to the ownership, possession, maintenance, staffing, security, or operation of the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Customer's material breach of a provision of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The indemnification commitment made by Customer under Section 3.3.b;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The indemnification commitment made by Customer under Section 6.3.b;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The indemnification commitment made by Customer under Section 9.14; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) A claim by any current, past, or prospective pilot, cabin attendant, or maintenance technician employed or otherwise retained by Customer or EJM under Section 3, where
 such claim involves job selection, retention, pay, benefits, training, promotion, discipline, retirement, severance, injury on the job, or employment taxes, except to the extent that Section 9.10.a(v) above makes EJM responsible to indemnify
 the Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Limitation on Indemnification.</u> The indemnification obligations set forth in Sections 9.10.a(i)-(iv) and 9.10.b(i)-(iv) above are subject to the sole-recourse
 limitations set forth in Section 6.3 and the liability limitations set forth in Section 9.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.11** **Independent Contractor.** The relationship between EJM and Customer is that of an independent contractor and customer. There is no partnership or joint venture
 intended between EJM and Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12** **Liability Limitations.** THE PARTIES AGREE THAT UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL,
 EXEMPLARY, OR PUNITIVE DAMAGES, OR DIMINUTION OF VALUE FOLLOWING LOSS IN CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT, WHETHER IN CONTRACT OR TORT (INCLUDING STRICT LIABILITY AND NEGLIGENCE) SUCH AS BUT NOT LIMITED TO LOSS OF REVENUE, LOSS
 OF USE, OR ANTICIPATED PROFITS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.13** **Notices.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Unless specified otherwise herein, all notices will be directed to the recipient as provided in the chart below and will be deemed to be duly given:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) on the day of delivery if delivered by hand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) two business days after being sent by certified or registered mail (postage prepaid and return receipt requested);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) one business day after being sent by overnight courier; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) on the day of delivery if sent by facsimile with confirmation of receipt (except that if the facsimile is sent after 5:00 p.m. Eastern US, it will be deemed duly given on
 the next business day).

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Subject of Notice** | &nbsp;&nbsp;**Delivery of Notices to Customer** | &nbsp;&nbsp;**Delivery of Notices to EJM** |
| &nbsp;&nbsp;Creation, amendment, modification, or termination of this Agreement, or the waiver of any term under this Agreement | &nbsp;&nbsp;The person identified in Item A.1.a of Attachment A | &nbsp;&nbsp;The person identified in Item A.1.f of Attachment A |
| &nbsp;&nbsp;Invoices and other financial matters under this Agreement | &nbsp;&nbsp;The person identified in Item A.1.b of Attachment A | &nbsp;&nbsp;The person identified in Item A.1.g of Attachment A |
| &nbsp;&nbsp;Scheduling of the Aircraft for flight operations by Customer or by EJM, as applicable | &nbsp;&nbsp;The person identified in Item A.1.c of Attachment A | &nbsp;&nbsp;The person identified in Item A.1.h of Attachment A |
| &nbsp;&nbsp;Aircraft maintenance | &nbsp;&nbsp;The person identified in Item A.1.d of Attachment A | &nbsp;&nbsp;The person identified in Item A.1.i of Attachment A |
| &nbsp;&nbsp;Security, medical emergency, or accident response | &nbsp;&nbsp;A person identified in Item A.1.e of Attachment A | &nbsp;&nbsp;A person identified in Item A.1.j of Attachment A |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. In addition to the methods of providing notice specified above, notices relating to (i) the scheduling of Aircraft flight operations, and (ii) security, medical
 emergency, or accident response may be sent by electronic mail, and such electronic mail will be deemed to be duly given on the day of delivery, except that if the electronic mail is sent after 5:00 p.m. Eastern US, it will be deemed duly given
 on the next business day. Notices relating to security, medical emergency, or accident response also may be given by telephone call, and such telephone calls will be deemed to be duly given on the day of delivery, except that if the telephone
 call is made after 5:00 p.m. Eastern US, it will be deemed duly given on the next business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Customer and EJM may at any time change their respective designated recipients for notices under the preceding subsections. Notice of the newly designated recipient must
 be provided in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. No Party may object to the form of any notice actually received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.14** **No Government Contractor or Subcontractor.** Customer affirms (i) that EJM is not engaged as a contractor or subcontractor on any federal, state, or local
 government contract for Customer and (ii) that this Agreement is not a government contract for purposes of 41 C.F.R. Section 60-1.4, -250.4, -741.4, or any other related provision, affirmative action program requirement or federal, state, or
 local contractor requirement or obligation. Customer shall be liable for and hereby agrees to defend, indemnify and hold harmless EJM and its respective parents, affiliates, subsidiaries, officers, agents, directors, employees, guests and
 subcontractors against any and all liabilities, damages, losses, expenses, demands, claims, suits or judgments (including reasonable attorneys' fees, costs and expenses) arising out of any claim, including by any government entity, agency,
 division, department, subdivision, or the like, that for purposes of, or as a result of, this Agreement EJM is a state, federal, or local government contractor and/or that EJM is otherwise subject to any state, federal, or local governmental
 contracting requirements or obligations, whether embodied in statutes, regulations, ordinances, case law or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.15** **Preservation of Records.** The Parties agree that, during the Term of this Agreement and for two (2) years thereafter (or such longer time as may be required by
 law), they will each preserve, or cause to be preserved, their respective financial and maintenance records relating to the Aircraft. Notwithstanding the foregoing, financial records will be preserved for seven (7) years from the date of the
 applicable transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.16** **Rights of Setoff.** Customer and EJM shall both have the right to deduct from monies owed to the other Party any sums owed such other Party pursuant to this
 Agreement or pursuant to other agreements solely between the two of them. Upon the making of such a setoff by either Party, EJM will provide a full and accurate accounting as to the new account balances between the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.17** **Severability.** In the event that any one or more of the provisions of this Agreement shall for any reason be held to be invalid, illegal or unenforceable, the
 remaining provisions of this Agreement shall be unimpaired, and the invalid, illegal or unenforceable provision shall be replaced by a mutually acceptable provision, which, being valid, legal and enforceable, comes closest to the intention of
 the Parties underlying the invalid, illegal or unenforceable provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.18** **Submission of Agreement to FAA.** Customer acknowledges that EJM may be required to submit a copy of this Agreement to the U.S. Department of Transportation or to
 the FAA, and Customer expressly consents to such submission.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.19** **Survival.** When the Term of this Agreement ends, the Parties will retain all rights and obligations that they had accrued under this Agreement up to that time.
 Additionally, the following sections of this Agreement will survive beyond the end of the Term of this Agreement: 6.3, 7.3, 8, 9.9, 9.10, 9.12, 9.14, 9.15, 9.16, and 9.17.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.20** **Third-Party Beneficiaries.** There are no third-party beneficiaries of this Agreement.

**--Signature Page Follows--**

------

**The Parties have executed this Pilot and Flight Services Agreement as of the date last signed below.**

---

| | | | |
|:---|:---|:---|:---|
| **EXECUTIVE JET MANAGEMENT, INC.** | **EXECUTIVE JET MANAGEMENT, INC.** | **PERSHING SQUARE CAPITAL MANAGEMENT, L.P.** | **PERSHING SQUARE CAPITAL MANAGEMENT, L.P.** |
| By: | /s/ Michael Sylvester | By: | /s/ Michael Gonnella |
| Name: | Michael Sylvester | Name: | Michael Gonnella |
| Title: | Senior Vice President, Sales | Title: | Chief Financial Officer |
| Date: | Dec-18-2024 \| 8:51 AM PST | Date: | Dec-17-2024 \| 8:40 PM PST |
|  |  | By: | /s/ Halit Coussin |
|  |  | Name: | Halit Coussin |
|  |  | Title: | Chief Legal Officer & Chief Compliance Officer |
|  |  | Date: | Dec-18-2024 \| 8:45 AM PST |

---

\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*

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---

| | | |
|:---|:---|:---|
| **<u>Attachment A</u>** | **<u>Attachment A</u>** | **<u>Attachment A</u>** |
| &nbsp;&nbsp;**NO.** | &nbsp;&nbsp;**ITEM** | &nbsp;&nbsp;**DATA** |
| &nbsp;&nbsp;**A.1** | &nbsp;&nbsp;**PARTY CONTACTS** | &nbsp;&nbsp;Address for all EJM Contacts:<br> Executive Jet Management, Inc.<br> 4556 Airport Road <br> Cincinnati, OH 45226 |
| &nbsp;&nbsp;A.1.a | &nbsp;&nbsp;Customer contact to whom all notices relating to the creation, amendment, modification, or termination of this Agreement or relating to the waiver of any term under this Agreement must be directed | &nbsp;&nbsp; William A. Ackman<br> Nicholas Botta <br> Roy J. Katzovicz <br> Pershing Square Management L.P. <br> 787 11th Ave, 9th Floor <br> New York, NY 10019 <br> Phone: (212) 813-3700 <br>Emails: <br>[email]<br> [email]<br> [email]<br>|
| &nbsp;&nbsp;A.1.b | &nbsp;&nbsp;Customer contact to whom all invoices and financial matters under this Agreement must be directed | &nbsp;&nbsp; William A. Ackman <br> Nicholas Botta <br> Roy J. Katzovicz <br> Pershing Square Management L.P. <br> 787 11th Ave, 9th Floor <br> New York, NY 10019 <br> Phone: (212) 813-3700 <br>Emails:<br>[email]<br> [email]<br> [email]<br>|
| &nbsp;&nbsp;A.1.c | &nbsp;&nbsp;Customer contact to whom all notices relating to scheduling of the Aircraft for flight operations by Customer or by EJM, as applicable, must be directed | &nbsp;&nbsp; William A. Ackman<br> Nicholas Botta<br> Roy J. Katzovicz<br> Pershing Square Management L.P.<br> 787 11th Ave, 9th Floor<br> New York, NY 10019<br> Phone: (212) 813-3700 <br>Emails: <br> [email]<br> [email]<br> [email]<br>|
| &nbsp;&nbsp;A.1.d | &nbsp;&nbsp;Contact information for at least two individuals to whom notices relating to security, medical emergency, or accident response matters should be directed | &nbsp;&nbsp; William A. Ackman<br> Nicholas Botta<br> Roy J. Katzovicz<br> Pershing Square Management L.P.<br> 787 11th Ave, 9th Floor<br> New York, NY 10019<br> Phone: (212) 813-3700 <br>Emails: <br> [email]<br> [email]<br> [email]<br>|
| &nbsp;&nbsp;A.1.f | &nbsp;&nbsp;EJM contact to whom all notices relating to the creation, amendment, modification, or termination of this Agreement or relating to the waiver of any term under this Agreement must be directed | &nbsp;&nbsp; EJM Contracts <br>E-mail: [email] |
| &nbsp;&nbsp;A.1.g | &nbsp;&nbsp;EJM contact to whom all invoices and financial matters under this Agreement must be directed | &nbsp;&nbsp; Von Jones <br> Chief Financial Officer <br> Phone: [phone number]<br>E-mail: [email] |
| &nbsp;&nbsp;A.1.h | &nbsp;&nbsp;EJM contact to whom all notices relating to scheduling of the Aircraft for flight operations by Customer or by EJM, as applicable, must be directed | &nbsp;&nbsp;Toby Meyer <br> Director of Operations <br> Phone: [phone number] <br> Fax: [fax number]<br> E-mail: [email]<u><br></u>  |

---

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;A.1.i | &nbsp;&nbsp;EJM contact to whom all notices relating to Aircraft maintenance must be directed | &nbsp;&nbsp;Christopher A. Poliak <br> Director of Maintenance <br> Phone: [phone number] <br> Fax: [fax number]<br> E-mail: [email] |
| &nbsp;&nbsp;A.1.j | &nbsp;&nbsp;EJM contacts to whom notices relating to security, medical emergency, or accident response matters should be directed | &nbsp;&nbsp; Dennis Fox <br> Vice President, Safety <br> Phone: [phone number]<br> Fax: [fax number]<br> Email: [email]<br>Fred Calvert <br> Director, Safety Assurance <br> Phone: [phone number] <br> Fax: [fax number]<br> Email: [email]<br>Matthew T. Dunn<br> Security Manager<br> Phone: [phone number]<br> Fax: [fax number]<br> Email: [email] |
| &nbsp;&nbsp;**A.2** | &nbsp;&nbsp;**AIRCRAFT AND HANGAR INFORMATION** |  |
| &nbsp;&nbsp;A.2.a | &nbsp;&nbsp;Home Airport Location | &nbsp;&nbsp;Teterboro Airport <br> (KTEB) |
| &nbsp;&nbsp;A.2.b | &nbsp;&nbsp;Name of Hangar Lessor | &nbsp;&nbsp;Signature Aviation fka Signature Flight Support - South |
| &nbsp;&nbsp;A.2.c | &nbsp;&nbsp;Name, address, phone number, and e-mail address of officer of the Hangar Lessor | &nbsp;&nbsp;Signature Aviation fka Signature Flight Support - South <br> Dave Goncalves, General Manager <br> 101 Charles A. Lindbergh Drive <br> Teterboro, NJ 07608 <br> Phone: [phone number]<br> Fax: [fax number]<br> Email: [email] |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;A.2.d | &nbsp;&nbsp;Hangar Arrangements | &nbsp;&nbsp;Dry Lease Lessor will engage EJM to arrange a hangar at the location specified in Item A.2.a of this General Schedule. |
| &nbsp;&nbsp;A.2.e | &nbsp;&nbsp;Aircraft Hull Value | &nbsp;&nbsp;Sixteen Million Four Hundred Thousand Dollars <br> ($16,400,000.00) |
| &nbsp;&nbsp;A.2.f | &nbsp;&nbsp;Participating in the Carbon Offset Program? | &nbsp;&nbsp;No |

---

------

---

| | | |
|:---|:---|:---|
| **<u>Attachment B - USAIG Fleet Policy Insurance Coverages</u>** | **<u>Attachment B - USAIG Fleet Policy Insurance Coverages</u>** | **<u>Attachment B - USAIG Fleet Policy Insurance Coverages</u>** |
| &nbsp;&nbsp;&nbsp;**B** | &nbsp;&nbsp;**INSURANCE COVERAGE** |  |
| &nbsp;&nbsp;&nbsp;B.1 | &nbsp;&nbsp;Passenger and third-party liability insurance (excluding war, hi-jacking, and other perils coverage) for the Aircraft which it operates | &nbsp;&nbsp; Optional enhanced combined single limit liability coverage of:<br> Five Hundred Million Dollars<br> ($500000000) |
| &nbsp;&nbsp;&nbsp;B.2 | &nbsp;&nbsp;"War, Hi-Jacking & Other Perils Exclusion Clause Write Back Endorsement" for Aircraft Physical Damage Coverage for aircraft physical damage on an insured valued provided annually by Customer | &nbsp;&nbsp; Sixteen Million Four Hundred Thousand Dollars<br> ($16,400,000.00) |
| &nbsp;&nbsp;&nbsp;B.3 | &nbsp;&nbsp;"War, Hi-Jacking & Other Perils Exclusion Clause Write Back Endorsement" for Aircraft Liability Coverage for passenger liability | &nbsp;&nbsp;Not less than Two Hundred Million Dollars ($200000000) |
| &nbsp;&nbsp;&nbsp;B.4 | &nbsp;&nbsp;"War, Hi-Jacking & Other Perils Exclusion Clause Write Back Endorsement" for Aircraft Liability Coverage for non-passenger bodily injury and property damage coverage | &nbsp;&nbsp;Not less than One Hundred Fifty Million Dollars ($150000000) per occurrence |
| &nbsp;&nbsp;&nbsp;B.5 | &nbsp;&nbsp;Non-Owned Aircraft Physical Damage | &nbsp;&nbsp;Not less than Eighty Million Dollars ($80000000) per occurrence |
| &nbsp;&nbsp;&nbsp;B.6 | &nbsp;&nbsp;Spare Engine Coverage (Owned, Leased & Rented) | &nbsp;&nbsp;Not less than Fifteen Million Dollars ($15000000) per occurrence |
| &nbsp;&nbsp;&nbsp;B.7 | &nbsp;&nbsp;Personal Injury Liability Coverage | &nbsp;&nbsp;Not less than Twenty-Five Million Dollars ($25000000) per occurrence and annual aggregate |
| &nbsp;&nbsp;&nbsp;B.8 | &nbsp;&nbsp;Voluntary Settlement Coverage for Owned & Non-Owned Aircraft | &nbsp;&nbsp;Not less than One Million Dollars ($1000000) per passenger and One Million Dollars ($1000000) per crewmember |
| &nbsp;&nbsp;&nbsp;B.9 | &nbsp;&nbsp;Medical Payments | &nbsp;&nbsp;Not less than Two Hundred Thousand Dollars ($200000) per person |
| &nbsp;&nbsp;&nbsp;B.10 | &nbsp;&nbsp;Personal Effects and Baggage Liability | &nbsp;&nbsp;Not less than Five Hundred Thousand Dollars ($500000) per passenger |
| &nbsp;&nbsp;&nbsp;B.11 | &nbsp;&nbsp;Cargo Liability | &nbsp;&nbsp;Not less than Six Million Dollars ($6000000) per occurrence |
| &nbsp;&nbsp;&nbsp;B.12 | &nbsp;&nbsp;Damage to Non-Owned/Leased Hangars | &nbsp;&nbsp;Not less than Fifty Million Dollars ($50000000) per occurrence |
| &nbsp;&nbsp;&nbsp;B.13 | &nbsp;&nbsp;Airport Premises Liability (Note: If Customer owns, leases, or manages a hangar as a landlord, Customer will need to purchase separately any General Liability Coverage, including Hangarkeepers and Pollution Liability coverage, that might be required by other applicable hangar agreements.) | &nbsp;&nbsp;Not less than the Aircraft Liability Limit specified in Item B.1 |
| &nbsp;&nbsp;&nbsp;B.14 | &nbsp;&nbsp;Products Liability Arising from Incidental Operations or Sale of Aircraft | &nbsp;&nbsp;Not less than the Aircraft Liability Limit specified in Item B.1 |
| &nbsp;&nbsp;&nbsp;B.15 | &nbsp;&nbsp;Maximum Automatic Increased Value of Aircraft | &nbsp;&nbsp;Not less than Eighty Million Dollars ($80000000) |
| &nbsp;&nbsp;&nbsp;B.16 | &nbsp;&nbsp;Contractual Liability | &nbsp;&nbsp;Not less than the Aircraft Liability Limit specified in Item B.1 |
| &nbsp;&nbsp;&nbsp;B.17 | &nbsp;&nbsp;Extra Expense Coverage for Temporary Replacement Parts | &nbsp;&nbsp;Not less than Four Million Dollars ($4000000) |
| &nbsp;&nbsp;&nbsp;B.18 | &nbsp;&nbsp;Extra Expense Coverage 120 Days (No Per Diem) 0 Day Wait | &nbsp;&nbsp;Not less than Four Million Dollars ($4000000) |
| &nbsp;&nbsp;&nbsp;B.19 | &nbsp;&nbsp;Trip Interruption Expense per Person including Crew | &nbsp;&nbsp;Not less than Two Hundred Fifty Thousand Dollars ($250000) |
| &nbsp;&nbsp;&nbsp;B.20 | &nbsp;&nbsp;Ground Hangar Keepers Liability Each Occurrence (No Deductible) | &nbsp;&nbsp;Not less than Eighty Million Dollars ($80000000) |
| &nbsp;&nbsp;&nbsp;B.21 | &nbsp;&nbsp;Garage Keepers Liability Each Auto/Each Occurrence | &nbsp;&nbsp;Not less than Five Hundred Thousand Dollars ($500000) |
| &nbsp;&nbsp;&nbsp;B.22 | &nbsp;&nbsp;Runway Foaming, Fire and Crash Control | &nbsp;&nbsp;Not less than Six Million Dollars ($6000000) |
| &nbsp;&nbsp;&nbsp;B.23 | &nbsp;&nbsp;Search and Rescue | &nbsp;&nbsp;Not less than Six Million Dollars ($6000000) |
| &nbsp;&nbsp;&nbsp;B.24 | &nbsp;&nbsp;Incidental Medical Malpractice | &nbsp;&nbsp;Not less than Twenty-Five Million Dollars ($25000000) |

---

## Exhibit 10.7

**Exhibit 10.7**

THIRD AMENDED AND RESTATED LICENSE AGREEMENT

&nbsp;&nbsp;&nbsp;&nbsp;<br>

THIS THIRD AMENDED AND RESTATED LICENSE AGREEMENT (this "<u>Agreement</u>"), made as of the 17<sup>th</sup> day of January 2020 and effective as of May 1, 2019 (the "<u>Effective Date</u>"), by and between Pershing Square Capital Management L.P., a Delaware limited partnership ("<u>Licensor</u>"), having an address at 787 11<sup>th</sup> Avenue, New York, New York (the "<u>Building</u>"), TABLE Management LP ("<u>TABLE</u>") and the Pershing Square Foundation ("<u>PSF</u>" and together with TABLE, the "<u>Licensees</u>")).

W I TN E S S E T H:

WHEREAS, Licensor and TABLE entered into the License Agreement, dated as of October 13, 2011 (the "<u>Original Agreement</u>") whereby TABLE licensed, used and occupied the Licensed Premises (as defined in the Original Agreement);

WHEREAS, Licensor and TABLE entered into the Amended and Restated License Agreement, dated as of September 20, 2013 (the "<u>2013 Agreement</u>") whereby TABLE licensed, used and occupied the New Licensed Premises (as defined in the 2013 Agreement);

WHEREAS, Licensor and TABLE entered into the Second Amended and Restated License Agreement, dated as of September 26, 2016 (the "<u>2016 Agreement</u>") whereby TABLE licensed, used and occupied the 41<sup>st</sup> Floor Licensed Premises (as defined in the 2016 Agreement);

WHEREAS, as of the Effective Date, TABLE no longer occupies the 41<sup>st</sup> Floor Licensed Premises and the Licensees desire to license, use and occupy that portion of the 9<sup>th</sup> floor in the Building as more particularly shown on the floor plan and space description specified in Exhibit A, a copy of which is annexed hereto and made a part hereof ("<u>9<sup>th</sup> Floor Licensed Premises</u>");

WHEREAS, the Licensees acknowledge that the Licensees have no right to use or occupy the 9<sup>th</sup> Floor Licensed Premises, and have requested that Licensor grant them permission to use and occupy the same for the period ("<u>License Period</u>") commencing on the Effective Date and terminating on December 31, 2021, and to continue on a month-to-month basis thereafter until such time as Licensor or the Licensees shall terminate this Agreement as provided in Paragraph 3 hereof; and

WHEREAS, Licensor is willing to allow the Licensees to use and occupy the 9<sup>th</sup> Floor Licensed Premises for the License Period, subject to the terms, covenants and conditions hereinafter set forth;

WHEREAS, Licensor and TABLE wish to amend and restate the 2016 Agreement in its entirety to reflect the foregoing arrangement;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Licensor and the Licensees hereby agree to amend and restate the 2016 Agreement in its entirety as follows:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to and in accordance with the terms and conditions of this Agreement, Licensor hereby grants to the Licensees, and the Licensees hereby accepts from Licensor, as of the Effective Date, a non-exclusive, non-transferable license ("<u>License</u>") to use and occupy the 9<sup>th</sup> Floor Licensed Premises during the License Period for executive, administrative and general business offices, and for no other purpose. The Licensees acknowledge that Licensor will also continue to use and occupy the portions of the 9<sup>th</sup> Floor Licensed Premises marked as common areas, including the gym, cafeteria, pantry and conference room facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Licensees shall pay to Licensor, each calendar quarter, a fee for the License (the "<u>License Fee</u>"), in the amount listed on Exhibit B hereto for such quarter. The License Fee shall be paid quarterly in advance on the first business day of each calendar quarter or through such other method acceptable to Licensor. The License Fee shall be prorated (i) for the calendar quarter including the Effective Date, on the basis of the number of months remaining in such calendar quarter after the Effective Date and (ii) for any calendar quarter during which the License is terminated pursuant to Paragraph 3 (other than a termination as of the last day of a calendar quarter), on the basis of the number of days in such calendar quarter prior to the License Termination Date (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Either the Licensees or the Licensor may terminate the License Period and this License by giving written notice (the "<u>Termination Notice</u>") to the other of its election to do so, stating a date (the "<u>License Termination Date</u>") upon which the License Period and the License shall terminate, unless sooner terminated as provided in this Agreement. The License Termination Date shall be a date not less than thirty (30) business days following the date on which the Termination Notice shall be given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Agreement does not and shall not be deemed to constitute a lease or (except as expressly set forth herein) a conveyance of the 9th Floor Licensed Premises by Licensor to the Licensees, or to confer upon the Licensees any right, title, estate or interest in the 9<sup>th</sup> Floor Licensed Premises. This Agreement grants to the Licensees only a personal privilege to use and occupy the 9<sup>th</sup> Floor Licensed Premises for the License Period on and subject to the terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each party hereto agrees to indemnify, protect, defend and save harmless the other parties and such party's partners, officers, directors, contractors, agents and employees (each, an "<u>Indemnified Party</u>*"* and collectively, the "<u>Indemnified Parties</u>") from and against any and all liability (statutory or otherwise), claims, suits, demands, damages, judgments, costs, fines, penalties, interest and expenses (including, without limitation, reasonable counsel and other professional fees and disbursements incurred in connection therewith) to which any Indemnified Party may be subject or suffer arising from, or in connection with: (i) the use and occupancy of the 9<sup>th</sup> Floor Licensed Premises by the indemnifying party, or from any work, installation or thing whatsoever done or omitted (other than by an Indemnified Party) in or about the 9<sup>th</sup> Floor Licensed Premises by the indemnifying party, or its agents, employees, contractors or visitors during the License Period, (ii) any default by the indemnifying party in the performance of any of the indemnifying party's obligations under this Agreement, and/or (iii) any act, omission, carelessness, negligence or misconduct of the indemnifying party or its agents, employees, contractors or visitors. No party shall be held liable pursuant to this indemnity provision for, any indirect, special, consequential or punitive damages. In addition, no party shall indemnify another party for any losses related to the Indemnified Party's own tortious conduct, negligence, willful misconduct, breach of contract or violation of law.

------

The Indemnified Parties shall notify the indemnifying party in writing promptly upon learning of any claim or suit for which indemnification may be sought hereunder, provided, however, that failure to do so will not result in a waiver of the right to indemnity absent a showing of substantial prejudice to the indemnifying party. The indemnifying party shall have control over the defense and settlement of any such claim or suit. The Indemnified Parties shall have the right to participate in the defense of any claim for which indemnity is provided at its own expense through counsel of the Indemnified Parties' own choosing. The Indemnified Parties agree to provide reasonable cooperation with the defense of any claim for which indemnity is provided. In no event shall the indemnifying party be liable or otherwise responsible for any settlement effected by the Indemnified Party without the indemnifying party's prior written consent. Without limiting the foregoing, the indemnifying party shall not, without the Indemnified Party's prior written consent, settle, compromise or consent to the entry of any judgment in any such commenced or threatened claim or action, unless such settlement, compromise or consent: (a) includes an unconditional release of the Indemnified Party from all liability arising out of such commenced or threatened claim or action; and (b) is solely monetary in nature and does not include a statement as to, or an admission of fault, culpability or failure to act by or on behalf of, the Indemnified Party or otherwise adversely affect the Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Licensor shall have no obligation to alter, improve, decorate, or otherwise prepare the 9<sup>th</sup> Floor Licensed Premises for the Licensees' use and occupancy. The Licensees shall not make any alterations, decorations, installations or improvements of any kind whatsoever to the 9<sup>th</sup> Floor Licensed Premises, without obtaining Licensor's prior consent thereto. If Licensor shall give such consent to any such alterations requested by the Licensees, then the Licensees shall remove same and restore the 9<sup>th</sup> Floor Licensed Premises to its prior condition prior to the License Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Licensees shall, throughout the License Period, take good care of the 9<sup>th</sup> Floor Licensed Premises and the fixtures and appurtenances therein. All damage or injury to the 9<sup>th</sup> Floor Licensed Premises or to any other part of the Building, or to its fixtures, equipment and appurtenances, whether requiring structural or non-structural repairs, caused by or resulting from carelessness, omission, neglect or improper conduct of the Licensees, or their agents, employees, contractors or visitors, shall be repaired promptly by the Licensees at their sole cost and expense, to the satisfaction of Licensor. The Licensees shall also repair all damage to the Building and the 9<sup>th</sup> Floor Licensed Premises caused by the moving of its fixtures, furniture or equipment. All of the aforesaid repairs shall be of quality or class equal to the original work or construction.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Licensor agrees to provide to Licensees in a Building-standard manner the following services: HVAC, cleaning, telephone, mail delivery, photocopy, kitchen facilities, and electric for lighting and power. In addition, Licensor shall provide the Licensees with the following information technology services: access to Licensor's standard equipment (such as, copiers, fax machines, computers, monitors and printers), access to Licensor's word processing software, help desk services, pre-approved use of internal and external service teams, e-mail support, infrastructure services, website support, training, data network and email access, security and database services, disaster recovery services, and interfaces. Licensor shall have the right to discontinue any services being provided to the 9<sup>th</sup> Floor Licensed Premises as a result of any strike, casualty, damage, repair or alteration or other cause beyond Licensor's reasonable control. If Licensor's interest in the 9<sup>th</sup> Floor Licensed Premises is that of a tenant and such services are provided to Licensor by a superior lessor, then the Licensees' entitlement to such services shall in all events be in accordance with and subject to the terms and conditions of Licensor's lease, and Licensor shall have no liability whatsoever in the event such services are not provided by such superior lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;If the 9<sup>th</sup> Floor Licensed Premises are damaged by fire or other casualty or cause, Licensor may terminate the License granted herein upon twelve-hours' notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. &nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall inure to the benefit of Licensor's successors and assigns, and may not be modified except by a writing signed by the party to be charged.

[Signature page follows]

------

IN WITNESS WHEREOF, Licensor and the Licensees have duly executed this Agreement as of the date hereinabove set forth.

**Pershing Square Capital Management, L.P.**

By: PS Management GP, LLC,

its General Partner

---

| | | | |
|:---|:---|:---|:---|
| By: | /s/ Halit Coussin | Witnessed by: | /s/ Bernadette Jones McGee |
| Name: Halit Coussin | Name: Halit Coussin |  |  |
| Title: Chief Legal Officer | Title: Chief Legal Officer | Print Name: | Bernadette Jones McGee |
| By: | /s/ Nicholas A. Botta | Witnessed by: | /s/ Stephanie Conrad |
| Name: Nicholas A. Botta | Name: Nicholas A. Botta |  |  |
| Title: President | Title: President | Print Name: | Stephanie Conrad |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | **TABLE Management LP** | **TABLE Management LP** |
| Witnessed by: | /s/ Laurie Genatossio | By: | /s/ Andrea Markezin |
|  |  | Name: Andrea Markezin | Name: Andrea Markezin |
| Print Name: | Laurie Genatossio | Title: President | Title: President |
|  |  | **The Pershing Square Foundation** | **The Pershing Square Foundation** |
| Witnessed by: | /s/ Laurie Genatossio | By: | /s/ Andrea Markezin |
|  |  | Name: Andrea Markezin | Name: Andrea Markezin |
| Print Name: | Laurie Genatossio | Title: Treasurer | Title: Treasurer |

---

------

Exhibit A

Floor Plan and Description of Space

This floor plan is annexed to and made a part of this Agreement solely to indicate the 9<sup>th</sup> Floor Licensed Premises by outlining and diagonal marking. All areas, conditions, dimensions, and locations are approximate.

[Schedule of square footage and locations attached]

------

[Floor Plan]<br>

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Exhibit B

License Fee

---

| | |
|:---|:---|
| <br> **Year** | **License Fee (per <br> calendar <br> quarter)** |
| Q3 2019 | $195300 |
| Q4 2019 | $262900 |
| Ql 2020 | $220475 |
| Q2 2020 | $220475 |
| Q3 2020 | $220475 |
| Q4 2020 | $220475 |
| Q1 2021 | $223600 |
| Ql 2021 | $223600 |
| Ql 2021 | $223600 |
| Ql 2021 | $223600 |

---

## Exhibit 10.8

**Exhibit 10.8**

**SUBLEASE**

SUBLEASE ("**Sublease**") dated as of the <u>5th</u> day of <u>December</u>, 2022, between **PERSHING SQUARE CAPITAL MANAGEMENT, L.P.**, a Delaware limited partnership ("**Sublandlord**"), and **NEOX PUBLIC BENEFIT LLC**, a New York limited liability company ("**Subtenant**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>DEMISE AND TERM; CONDITIONS OF SUBLEASE</u>. Sublandlord hereby subleases to Subtenant, and Subtenant hereby hires from Sublandlord, a portion of the rentable area of the ninth (9<sup>th</sup>) floor as identified and shown hatched on <u>Exhibit A-1</u> hereto (the "**9<sup>th</sup> Floor Subleased Premises**") and a portion of the rentable area of the 10<sup>th</sup> floor as identified and shown hatched on <u>Exhibit A-2</u> hereto (the "**10<sup>th</sup> Floor Subleased Premises**", and collectively with the 9<sup>th</sup> Floor Subleased Premises, the "**Subleased Premises**") in the building located at 787 Eleventh Avenue, New York, New York (the "**Building**"). The term of this Sublease (the "**Term**") shall commence on the date hereof (the "**Commencement Date**") and shall end on December 31, 2033 (the "**Expiration Date**"), subject to the terms of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUBORDINATE TO PRIME LEASE</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Sublease is subject and subordinate to (a) that certain Lease dated as of October 26, 2016, between Georgetown Eleventh Avenue Owners LLC (together with its successors and assigns, "**Prime Landlord**"), as landlord, and Sublandlord, as tenant (the "**Initial Lease**"), as amended by that certain First Amendment of Lease, dated as of September 27, 2017 (the "**First Lease Amendment**"), that certain Second Amendment of Lease, dated as of May 8, 2019 (the "**Second Lease Amendment**") and that certain Third Amendment of Lease, dated as of or about the date hereof (the "**Third Lease Amendment**"; and the Initial Lease, as so amended, and as the same may be further amended from time to time, the "**Prime Lease**") and the terms thereof and (b) the matters to which the Prime Lease is or shall be subject and subordinate. Other than the Prime Lease, there are no agreements between Sublandlord and Prime Landlord with respect to the Premises (as defined in the Prime Lease) that would affect Subtenant's rights under this Sublease. A true and complete copy of the Prime Lease (with certain financial and other confidential terms redacted) has been delivered to and examined by Subtenant. To Sublandlord's knowledge, as of the date of this Sublease, Sublandlord is in full compliance with the terms of the Prime Lease and has received no notices to the contrary from Prime Landlord. Further, to Sublandlord's knowledge, Prime Landlord is not in default of the Prime Lease.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Further, in accordance with Section 13.5(i) of the Prime Lease, in the event of termination, re-entry or dispossess of Sublandlord by Prime Landlord, Prime Landlord, at Prime Landlord's option, may take over all of the right, title and interest of Sublandlord, as sublandlord under this Sublease, and Subtenant, at Prime Landlord's option, shall attorn to Prime Landlord pursuant to the then executory provisions of this Sublease, except that (1) Subtenant shall have no right to use any portion of the Premises (or other space in the Building occupied or controlled by Sublandlord) which is not part of the Subleased Premises and (2) Prime Landlord shall not be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp; liable for any previous act or omission of Sublandlord under this Sublease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp; subject to any offset which therefore accrued to Subtenant against Sublandlord (including, without limitation, any rights under 11 U.S.C. §365(h));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;bound by any rent or other sums paid by such subtenant more than one month in advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) &nbsp;&nbsp;&nbsp;&nbsp;liable for any security deposit under this Sublease not actually received by Prime Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp; liable for any work or payments on account of improvements to the Subleased Premises; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp; bound by any amendment of this Sublease not consented to in writing by Prime Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>INCORPORATION BY REFERENCE</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The terms, covenants and conditions of the Prime Lease are incorporated herein by reference so that, except as set forth in <u>Paragraph (b)</u> of this Section 3, and except to the extent that such incorporated provisions are inapplicable to or modified by the provisions of this Sublease, all of the terms, covenants and conditions of the Prime Lease that bind or inure to the benefit of the landlord thereunder shall, in respect to this Sublease, bind or inure to the benefit of Sublandlord, and all of the terms, covenants and conditions of the Prime Lease that bind or inure to the benefit of the tenant thereunder shall, in respect of this Sublease, bind or inure to the benefit of Subtenant, with the same force and effect as if such incorporated terms, covenants and conditions were completely set forth in this Sublease, and as if the words "Landlord," "Owner" or "Lessor" and "Tenant" or "Lessee" or words of similar import, wherever the same appear in the Prime Lease, were construed to mean, respectively, "Sublandlord" and "Subtenant" in this Sublease, and as if the words "leased premises", "Premises," and "Demised Premises" or words of similar import, wherever the same appear in the Prime Lease, were construed to mean "Subleased Premises" in this Sublease, and as if the word "Lease" or words of similar import, wherever the same appear in the Prime Lease, were construed to mean this "Sublease", and as if the word "License Area" or words of similar import, wherever the same appear in the Prime Lease, were construed to mean the Sublease License Area, and as if the word "Access Date" or words of similar import, wherever the same appear in the Prime Lease, were construed to mean the Commencement Date. The term "business days", wherever the same appears in this Sublease, shall have the same meaning as the term "Operating Days" as defined in the Prime Lease. Subject to the foregoing, capitalized terms used and not defined in this Sublease shall have the meanings ascribed to such terms in the Prime Lease. Notwithstanding the foregoing, the time limits contained in the Prime Lease for the giving of notices, making of demands or performing of any act, condition or covenant on the part of the tenant thereunder, or for the exercise by the tenant thereunder of any right or remedy, are changed for the purposes of incorporation herein by reference by shortening the same in each instance by five (5) days, so that in each instance Subtenant shall have five (5) days less time to observe or perform hereunder than Sublandlord has as the tenant under the Prime Lease, unless such period is five (5) or fewer days, in which instance Subtenant shall have two (2) days less time, but in no circumstances less than two (2) business days, to observe or perform hereunder than Sublandlord has as the tenant thereunder. Each party shall promptly deliver to the other party copies of all notices, requests or demands which relate to the Subleased Premises or the use or occupancy thereof after receipt of same from Prime Landlord. In the case of any time limit described above which is five (5) or fewer days after the giving of the notice applicable thereto, such notice shall be delivered by overnight courier or email as provided in Article 25 hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following references, sections and provisions of the Prime Lease shall not be incorporated herein by reference and shall not apply to this Sublease: Article 1, Section, 2.1, Article 3, Article 4, Section 5.1, Section 5.5, Section 5.6, Section 6.2.3, Section 7.6, Section 7.7, Section 10.2, Section 11.15, Article 13, Section 16.1(b) and (c), Section 17.5, Section 17.6, Section 20.5, Section 20.8, Section 20.9, Section 20.22, Section 20.23, Article 21, Article 22 to the extent pertaining to any area other than the Sublease License Area (as hereinafter defined), Article 23, Article 24, Article 25, Article 26, Article 27, Exhibit B-1, Exhibit B-2, Exhibit C, the third through sixth sentences of Section III.D of Exhibit D, as amended by the Third Lease Amendment, Exhibit G-1, Exhibit G-2, Exhibit H, Exhibit I, Exhibit J, Exhibit K, Exhibit L, Exhibit M, Exhibit O, Exhibit T, Exhibit U, Exhibit W, Exhibit X, Exhibit Y, the entire First Lease Amendment, the entire Second Lease Amendment and the following provisions and exhibits of the Third Lease Amendment: Section 1, Section 2 other than the last sentence thereof, Section 3, Section 4(c) other than the last sentence thereof, Section 5(a), Section 5(b), Section 5(d), Section 5(f), the second sentence of Section 5(p), Section 6, Section 9, Section 10, Section 11, Exhibit A, Exhibit B, Exhibit B-1, Exhibit C, Exhibit F and Exhibit Z.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>PERFORMANCE BY SUBLANDLORD; ENFORCEMENT OF PRIME LEASE.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any obligation of Sublandlord that is contained in this Sublease by incorporating the provisions of the Prime Lease may be observed or performed by Sublandlord using reasonable efforts, after notice from Subtenant, to cause Prime Landlord to observe and/or perform the same, and Sublandlord shall have a reasonable period of time to enforce its rights to cause such observance or performance, subject to Section 4(c) hereof and except in the event of an emergency (in which event Sublandlord shall enforce such rights as promptly as practicable under the circumstances). Sublandlord shall not be required to perform any obligation of Prime Landlord under the Prime Lease, and Sublandlord shall have no liability to Subtenant for the failure of Prime Landlord to perform any obligation under the Prime Lease. Subtenant shall not in any event have any rights in respect of the Subleased Premises greater than Sublandlord's rights under the Prime Lease. Except to the extent resulting solely from Sublandlord's negligence or willful misconduct, Sublandlord shall not be responsible for any failure or interruption, for any reason whatsoever, of the services or facilities that are appurtenant to, or supplied at or to, the Subleased Premises, including, without limitation, electricity, heat, air conditioning, water, elevator service and cleaning service, if any, other than Sublandlord's performance of its obligations pursuant to the first sentence of this Section 4(a) and Section 4(b) below. No failure to furnish, or interruption of, any such services or facilities shall give rise to any (i) abatement or reduction of Subtenant's obligations under this Sublease, except as expressly provided in this Sublease, (ii) constructive eviction, whether in whole or in part, or (iii) liability on the part of Sublandlord.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If Prime Landlord shall default in any of its obligations under the Prime Lease to provide Building Services (as hereinafter defined) with respect to the Subleased Premises, Sublandlord shall, upon written request of Subtenant, make a demand upon Prime Landlord to perform such obligations. If (A) following the making of such demand by Sublandlord and the expiration of any applicable grace period granted to Prime Landlord under the Prime Lease, Prime Landlord shall fail to perform or commence the performance and diligently pursue to completion its obligations under the Prime Lease to provide the applicable Building Services, (B) such breach of Prime Landlord's obligations to provide Building Services adversely affects Subtenant's use or occupancy of the Subleased Premises in any material respect, and (C) Subtenant requests in writing that Sublandlord pursue litigation against Prime Landlord with respect to such breach by Prime Landlord at Subtenant's cost, and Sublandlord elects not to do so, then Subtenant shall have the right to exercise and enforce, by legal action, in Sublandlord's name (if required because of lack of privity between Subtenant and Sublandlord), and with counsel of Subtenant's choosing and reasonably satisfactory to Sublandlord, all of the rights available to such parties to enforce performance of such obligations of Prime Landlord, provided that Subtenant shall indemnify Sublandlord in accordance with Section 7(a) hereof. The term "**Building Services"** means (i) any of the services or utilities that Prime Landlord has agreed in the Prime Lease to provide, (ii) any of the repairs or restorations that Prime Landlord has agreed in the Prime Lease to make, (iii) compliance with any laws or requirements of public authorities with which Prime Landlord has agreed in the Prime Lease to comply and (iv) the taking of any action with respect to the operation, administration or control of the Building or any of its public or common areas that Prime Landlord has agreed in the Prime Lease to take. The rights granted by this Section 4(b) are personal to Neox Public Benefit LLC ("**Named Subtenant**") and any Permitted Transferee (as hereinafter defined).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event that (A) Subtenant is unable to use all or any portion of the Subleased Premises for the ordinary conduct of Subtenant's business due to Prime Landlord's breach of an obligation under the Prime Lease to provide services, perform repairs, or comply with legal requirements and such condition continues for a period in excess of fourteen (14) consecutive days, subject to delays resulting from Force Majeure, and Subtenant has given a notice to Sublandlord stating that Subtenant's inability to use the Subleased Premises or such portion thereof is solely due to such condition (provided that no notice shall be required where Subtenant's inability to use such portion of the Subleased Premises results from the closure of the Building or the unavailability of elevator service in substantially all of the Building), (B) Subtenant does not actually use or occupy the Subleased Premises or such portion thereof for the ordinary conduct of Subtenant's business during such period, (C) such condition has not resulted from the negligence, willful misconduct, breach of contract, violation of the provisions of this Sublease or the Prime Lease by Subtenant beyond any applicable notice and cure period or violation of law required to be complied with by Subtenant, and (D) Sublandlord is entitled to and receives an abatement of rent on account of such breach by Prime Landlord under Section 20.6(c) of the Prime Lease, then Subtenant shall be entitled to a proportionate share of such rent abatement on a rentable square foot basis based upon the affected area of the Subleased Premises and the affected area of the Premises, as reasonably determined by Sublandlord.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>NO BREACH OF PRIME LEASE</u>. Neither Sublandlord nor Subtenant shall do or permit to be done any act or thing that will constitute a breach or violation of any term, covenant or condition of the Prime Lease by the tenant thereunder, whether or not such act or thing is permitted under the provisions of this Sublease, subject to the terms of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>NO PRIVITY OF ESTATE</u>. Nothing contained in this Sublease shall be construed to create privity of estate or of contract between Subtenant and Prime Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>INDEMNITY; INSURANCE; CASUALTY</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except to the extent resulting from Sublandlord's own negligence or willful misconduct, Subtenant shall indemnify, defend and hold harmless Sublandlord from and against all claims, actions, losses, costs, damages, expenses and liabilities, including, without limitation, reasonable attorneys' fees and expenses, which Sublandlord may incur or pay by reason of (i) any accidents, damages or injuries to persons or property occurring in, on or about the Subleased Premises from and after the Commencement Date, (ii) any breach or default hereunder on Subtenant's part, (iii) any work done or Alterations performed in or to the Subleased Premises by Subtenant and/or Subtenant's employees, agents, contractors, invitees or any other person claiming through or under Subtenant, (iv) any act, omission or negligence on the part of Subtenant and/or Subtenant's employees, agents, customers, contractors, invitees, or any other person claiming through or under Subtenant or (v) any action brought by Subtenant under Section 4(c) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtenant shall (i) maintain all insurance that Sublandlord is required to maintain under the Prime Lease, naming Sublandlord, Prime Landlord and any other parties required by the Prime Lease as additional insureds or loss payees, as applicable, and (ii) on or prior to the Commencement Date, shall deliver to Sublandlord appropriate certificates of such insurance, including copies of endorsements or clauses in the applicable insurance policies that evidence waivers of subrogation and naming of additional insureds. Subtenant shall deliver to Sublandlord evidence of each renewal or replacement of a policy prior to the expiration of such policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding anything to the contrary in the Prime Lease, if (i) all or a substantial portion of the Subleased Premises is rendered untenantable by fire or other casualty during the last 2 years of the Term and the estimated time for Prime Landlord to restore the Subleased Premises pursuant to the terms of the Prime Lease will exceed 3 months or (ii) the estimated time for Prime Landlord to restore the Subleased Premises as determined pursuant to the Prime Lease will exceed 15 months from the date of such damage, then Subtenant shall have the right to terminate this Sublease upon giving notice to Sublandlord. In the event that (a) the estimate of time to so complete and repair the Subleased Premises is less than 15 months and such repair and restoration of the Subleased Premises is not substantially completed within 15 months, or (b) if an estimated date of completion is more than 15 months and Subtenant did not elect to terminate the Sublease as provided above and the restoration of the Subleased Premises is not substantially completed within 90 days following the estimated date of completion, subject to extension by reason of delays resulting from Force Majeure or delays caused by Subtenant, in either of such events, Subtenant shall have a right, upon not less 30 days prior written notice to Sublandlord to terminate the Sublease as a result thereof and, unless Prime Landlord substantially completes such restoration within the foregoing 30 day period, the Sublease shall be deemed terminated.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>MUTUAL WAIVER OF SUBROGATION</u>. Without affecting any other rights or remedies, Sublandlord and Subtenant each hereby release and relieve the other, and waive their entire right to recover damages against the other, for loss or damage to its property arising out of or incident to the perils required to be insured against herein. The effect of such releases and waivers is not limited by the amount of insurance carried or required, or by any deductibles applicable hereto. The parties agree to have their respective property damage insurance carriers waive any right to subrogation that such companies may have against Sublandlord or Subtenant, as the case may be, so long as the insurance is not invalidated thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>RENT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtenant shall pay to Sublandlord rent ("**Fixed Rent**") at the then applicable rate set forth on <u>Exhibit B</u> attached hereto, subject to the terms of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The first monthly installment of Fixed Rent shall be payable on the Rent Commencement Date (as hereinafter defined). Subsequent installments of Fixed Rent shall be paid in advance in equal monthly installments on the first day of each month of the Term. If the Commencement Date shall not be the first day of a month, Fixed Rent shall be prorated on a per diem basis. The installment of Fixed Rent for the calendar month in which the Expiration Date occurs shall be prorated on a per diem basis if the Expiration Date does not occur on the last day of the month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed Rent and all other amounts ("**Additional Rent**") payable by Subtenant to Sublandlord under the provisions of this Sublease shall be paid promptly when due, without notice or demand therefor, and without deduction, abatement, counterclaim or setoff, except as otherwise expressly provided in this Sublease. Fixed Rent and Additional Rent shall be paid to Sublandlord in lawful money of the United States by check at such address or, at Subtenant's option, wire transfer or ACH to such account of Sublandlord as shall be designated by Sublandlord in writing from time to time on not less than ten (10) business days' prior written notice. No payment by Subtenant or receipt by Sublandlord of any lesser amount than the amount stipulated to be paid hereunder shall be deemed other than on account of the earliest stipulated Fixed Rent or Additional Rent; nor shall any endorsement or statement on any check or letter be deemed an accord and satisfaction, and Sublandlord may accept any check or payment without prejudice to Sublandlord's right to recover the balance due or to pursue any other remedy available to Sublandlord. Any provisions in the Prime Lease incorporated herein by reference (whether capitalized or lower case) referring to "fixed rent," "annual rent," "base rent," "rent," "additional rent," "escalations," "payments" or "charges" or words of similar import shall be deemed to refer to Fixed Rent and Additional Rent due under this Sublease.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding anything to the contrary contained herein, so long as this Sublease is in full force and effect, the Fixed Rent and the Additional Rent pursuant to Article 6 of the Prime Lease payable by Subtenant hereunder shall be abated from the Commencement Date through and including the date immediately prior to the Rent Commencement Date (the "**Rent Abatement**"). If this Sublease shall terminate due to a default by Subtenant hereunder, then the entire amount of the unamortized portion of the Rent Abatement applied to Fixed Rent, amortized over the stated term of this Sublease, shall immediately become due and payable by Subtenant to Sublandlord. For the purposes of this Sublease, the term "**Rent Commencement Date**" shall mean May 1, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ESCALATION; ELECTRICITY, UTILITIES AND OTHER CHARGES</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The payment of Additional Rent attributable to the Subleased Premises pursuant to Article 6 of the Prime Lease shall be made to Sublandlord, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp; Tenant's Share with respect to Operating Expenses shall be deemed to mean 52.4% of Tenant's Operating Payments ("**Subtenant's Operating Expense Share**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp; Tenant's Share with respect to Taxes shall be deemed to mean 52.4% of Tenant's Tax Payments ("**Subtenant's Tax Share**"),

in each case subject to equitable adjustment in the event of any increase or reduction of the Tenant's Share with respect to Operating Expenses and/or Tenant's Share with respect to Taxes, as the case may be. Promptly following a change in the Tenant's Share with respect to Operating Expenses and/or Tenant's Share with respect to Taxes, Sublandlord and Subtenant shall execute an amendment to this Sublease stating the adjusted Subtenant's Operating Expense Share and/or Subtenant's Tax Share, as the case may be, provided that the failure to execute such amendment shall not affect the amendment to the Subtenant's Operating Expense Share or Subtenant's Tax Share, as applicable, or any of the other rights or obligations of the parties under this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sublandlord shall provide electricity to the Subleased Premises on a submetering basis, and Subtenant covenants and agrees to purchase the same from Sublandlord at a base rate consisting of the charges, terms and rates for like quantities and character of service in the service and/or rate classification of the entity or entities providing the same in effect at the time said service is used and under which the Sublandlord purchases service, plus a two (2%) percent surcharge relating to administrative and overhead expenses of Sublandlord in connection therewith, provided, however, said charges may be revised by Sublandlord in order to maintain the rate of return to Sublandlord on the purchase and redistribution of tenant electricity produced under the foregoing in the event that the Public Service Commission or another governmental authority has approved or approves changes in service classifications, terms, rates, charges or methods of or rules on billing for such public utility. Where more than one submeter measures the service of Subtenant in the Subleased Premises, the service rendered through each submeter may be computed and billed separately in accordance with the rates herein. In the event that the electrical usage of Subtenant results in a surcharge in the payment of electric current for the area occupied by Subtenant pursuant to the schedules and rates of the public utility or another utility service provider supplying same, Subtenant shall pay the amount of said surcharge. Bills for electric service shall be rendered at such times as Sublandlord may elect, but not less frequently than quarterly, and the amount, as computed from a meter, shall be deemed to be paid, and be paid as Additional Rent within thirty (30) days after the same are rendered. If any tax is imposed upon Sublandlord's receipt from the sale or resale of electric energy to Subtenant by any Federal, State or municipal authority, Subtenant covenants and agrees that, where permitted by law, Subtenant's pro-rata share of such taxes shall be passed on to, and included in the bill of, and paid by Subtenant to Sublandlord. Subtenant shall install the submeter or submeters serving the Subleased Premises as part of Subtenant's Work, and the repair and replacement thereof shall be at Subtenant's sole cost and expense. Sublandlord shall reimburse Subtenant for the reasonable out of pocket costs incurred by Subtenant to install such submeter or submeters, based on reasonable evidence of same, within thirty (30) days after Subtenant's written request therefor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except to the extent provided by Prime Landlord to Sublandlord without additional charge under the Prime Lease, Subtenant shall pay as Additional Rent under this Sublease all water, sprinkler, steam, chilled water, and other costs, and related charges and administrative fees and taxes thereon related to the Subleased Premises and payable by Sublandlord as tenant under the Prime Lease, as and when due under the Prime Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtenant shall be solely responsible for and pay as Additional Rent under this Sublease upon demand all additional rent and other charges incurred or due under the Prime Lease as a result of (i) a breach of this Sublease by Subtenant, (ii) any demand by Subtenant for any additional or overtime services (including, without limitation, overtime HVAC, above-standard cleaning, above-standard refuse removal, overtime freight elevator and condenser water), and (iii) any additional costs or charges incurred as a result of Subtenant's use and occupancy of the Subleased Premises (including, without limitation, charges as a result of high-density occupancy). To the extent permitted by Prime Landlord, with respect to any request for overtime services, Subtenant may make such request in Subtenant's name directly to Prime Landlord, provided such request is made in accordance with the terms of the Primary Lease and a duplicate copy of such request is simultaneously given to Subtenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If Subtenant requires any utilities that are not provided by Prime Landlord under the Prime Lease, subject to the terms and conditions of the Prime Lease, Subtenant shall make all arrangements therefor directly with the utility provider and pay all costs thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sublandlord shall have the sole right to request and use the condenser water that Prime Landlord is obligated to make available to Sublandlord with respect to the ninth (9<sup>th</sup>) floor of the Building pursuant to Section III.D of Exhibit D of the Prime Lease (the "**Sublandlord Condenser Water**"). Notwithstanding the foregoing, Sublandlord may, in Sublandlord sole and absolute discretion, make available to Subtenant for Subtenant's use any then available Sublandlord Condenser Water, at Subtenant's expense in accordance with Section 10(d) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the Term, Subtenant shall have the sole right to use the condenser water that Prime Landlord is obligated to make available to the Subleased Premises pursuant to Section 4(a) of the Third Lease Amendment, subject to Section 10(d) hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>USE</u>. Subtenant shall use and occupy the Subleased Premises only for executive, general and administrative offices and for the uses set forth on <u>Exhibit C</u> attached hereto and made a part hereof (collectively, the "**Additional Permitted Uses**"). Subtenant shall comply with any requirements imposed by Prime Landlord in connection with the Additional Permitted Uses (whether in the Third Lease Amendment or otherwise pursuant to the Prime Lease) at Subtenant's sole cost and expense. Subtenant shall not violate the prohibitions on use contained in the Prime Lease. No representation or warranty is made by Sublandlord, and nothing contained in this paragraph or elsewhere in this Sublease, shall be deemed to be a representation or warranty by Sublandlord that the Subleased Premises may be lawfully used for Subtenant's intended purposes; and Sublandlord shall have no liability whatsoever to Subtenant if such use is not permitted by the present certificate of occupancy or any applicable zoning or other law or ordinance. Subtenant shall comply with (a) the Prime Lease, (b) all present and future laws, statutes, ordinances, orders, rules, regulations and requirements of all federal, state and municipal governments asserting jurisdiction over the Subleased Premises and (c) all requirements applicable to the Subleased Premises of the board of fire underwriters and/or the fire insurance rating or similar organization performing the same or similar function.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>CONDITION OF SUBLEASED PREMISES</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On the Commencement Date, Sublandlord shall deliver the Subleased Premises to Subtenant vacant and broom-clean and free of subtenants and occupants and any rights of possession of any parties claiming under Sublandlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sublandlord, at its sole cost and expense, shall perform the work described on <u>Exhibit D</u> attached hereto (the "**Sublandlord's Work**"). Sublandlord's Work shall be Substantially Completed in a good and workerlike manner, in accordance with <u>Exhibit D</u> and all applicable laws, and the required sign-offs relating to the Sublandlord's Work required by applicable law for Subtenant to legally occupy the Subleased Premises for the conduct of Subtenant's business will be obtained and delivered to Subtenant on or prior to the Rent Commencement Date, except to the extent of any delays caused by Subtenant (including the performance of Subtenant's Work) or Force Majeure. If Sublandlord's Work is not substantially completed in accordance with this Section 12(b) by the Rent Commencement Date (the "**Target Substantial Completion Date**"), which date shall be extended on a day for-day basis for each day that Sublandlord is delayed in substantially completing Sublandlord's Work by reason of (i) Force Majeure, or (ii) delays caused by Subtenant (the Target Substantial Completion Date, as the same may be so extended, the "**Substantial Completion Outside Date**"), then Subtenant shall be entitled to a credit against the next payment(s) of Fixed Rent payable by Subtenant under this Sublease in an amount equal to the Fixed Rent otherwise payable by Subtenant for the Subleased Premises for each day during the period commencing on the Substantial Completion Outside Date and ending on the date immediately prior to the date that Sublandlord's Work is Substantially Completed. For the purposes of this Sublease, the term "**Substantially Completed**" or "**Substantially Complete**" means when all of the subject work (e.g., Sublandlord's Work) has been completed in accordance with applicable legal requirements other than minor items or insubstantial details of construction, decoration and mechanical adjustments, the non-completion of which do not materially interfere with Subtenant's Work, and access to, the entirety of the Subleased Premises (such minor items and details referred to herein as the "**Punch List Items**"). At such time as Sublandlord's Work is Substantially Complete, Subtenant and Sublandlord shall conduct a joint inspection of the Subleased Premises at a time reasonably acceptable to Sublandlord and Subtenant to confirm that the Sublandlord's Work is Substantially Complete and to agree upon Punch List Items. Sublandlord shall correct and/or complete all Punch List Items with reasonable diligence but, in any event, within ninety (90) days after Substantial Completion of Sublandlord's Work, except to the extent of any delays caused by Force Majeure or Subtenant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as expressly provided in this Section 12 hereof, Subtenant is leasing the Subleased Premises "AS IS", and Sublandlord shall have no obligation to furnish, render or supply any work, labor, services, fixtures, equipment, decorations or other items to make the Subleased Premises ready or suitable for Subtenant's occupancy. Sublandlord has not made and does not make any representations or warranties as to the physical condition of the Subleased Premises, or any other matter affecting or relating to the Subleased Premises. In making and executing this Sublease, Subtenant has relied solely on such investigations, examinations and inspections as Subtenant has chosen to make or has made. Subtenant acknowledges that Sublandlord has afforded Subtenant the opportunity for full and complete investigations, examinations and inspections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sublandlord shall have no obligation to provide any services to Subtenant or the Subleased Premises other than any obligation of Sublandlord that is contained in this Sublease by incorporating the provisions of the Prime Lease, subject to the limitations set forth in Section 4 hereof, including, without limitation, supplemental HVAC, telephone system or technology, telecommunications and wireless internet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sublandlord and Subtenant hereby agree to reasonably cooperate to the extent reasonably necessary to allow Sublandlord to timely complete the Sublandlord's Work and to allow Subtenant to timely complete Subtenant's Work, including, without limitation, the work described in Sections 4(d) and 4(e) of the Third Lease Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>CONSENTS AND APPROVALS</u>. In any instance when Sublandlord's consent or approval is required under this Sublease, Sublandlord's refusal to consent to or approve any matter or thing shall be deemed reasonable if, <u>inter</u> <u>alia</u>, such consent or approval has not been obtained from Prime Landlord under the Prime Lease. If Subtenant shall seek the approval or consent of Sublandlord and Sublandlord shall fail or refuse to give such consent or approval, Subtenant shall not be entitled to any damages for any withholding or delay of such approval or consent by Sublandlord, it being intended that Subtenant's sole remedy shall be an action for injunction or specific performance and that such remedy shall be available only in those instances where Sublandlord shall have expressly agreed in writing not to withhold or delay its consent unreasonably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>TERMINATION AND MODIFICATION OF PRIME LEASE</u>. Sublandlord covenants and agrees not to (i) voluntarily terminate or surrender the Prime Lease, except for a termination permitted under the Prime Lease as a result of casualty or condemnation, (ii) voluntarily modify or consent to any modification, amendment or supplement to the Prime Lease except as provided in Section 29 of this Sublease, or (iii) fail to perform any obligation of Sublandlord or exercise Sublandlord's rights under the Prime Lease (except for the obligations to be performed by Subtenant hereunder) which will deprive Subtenant of its rights and benefits under this Sublease or adversely affect Subtenant's use or occupancy of the Subleased Premises. If for any reason the term of the Prime Lease shall terminate prior to the expiration of this Sublease, (y) this Sublease shall thereupon terminate (except as to such provisions that this Sublease expressly provides shall survive a termination) and (z) except to the extent the Prime Lease was terminated by reason of an Event of Default (as defined in the Prime Lease) resulting from any act or omission of Sublandlord, Sublandlord shall not be liable to Subtenant by reason thereof. Sublandlord shall indemnify and hold harmless Subtenant from and against all claims, liability, costs and expenses (excluding consequential and punitive damages), in each case of any kind whatsoever incurred by reason of Sublandlord's failure to timely comply with its obligations under the Prime Lease, or a breach by Sublandlord of this Section 14 unless, in the event of the termination of the Prime Lease (to the extent not resulting from Subtenant's default under this Sublease), Prime Landlord permits Subtenant to remain in the Subleased Premises on the terms and conditions of this Sublease. The rights granted by the preceding sentence are personal to Named Subtenant and any Permitted Transferee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ASSIGNMENT AND SUBLETTING</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtenant shall not, by the sale of all or substantially all of its assets, the sale of 50% or more of any class of its capital stock or voting securities or equity interest, transfer of control (as defined in the Prime Lease) of Subtenant, operation of law or otherwise, assign, sell, mortgage, pledge or in any other manner transfer or encumber this Sublease or any interest therein, or sublet the Subleased Premises or any part or parts thereof, or grant any concession or license or otherwise permit occupancy of all or any part of the Subleased Premises by anyone other than Subtenant (any of the foregoing, a "**Transfer**"), without the prior written approval of Prime Landlord and Sublandlord in each instance, which approval from Prime Landlord and Sublandlord shall be granted or withheld in accordance with the terms and conditions of the Prime Lease, except that, notwithstanding the foregoing and anything to the contrary provided in the Prime Lease, Sublandlord's consent shall be granted or withheld in Sublandlord's sole and absolute discretion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding anything to the contrary provided in this Section 15, without the consent of Sublandlord, but subject to the consent of Prime Landlord to the extent required by the Prime Lease, Subtenant may subsublet all or any part of the Subleased Premises to an Affiliate of Subtenant, for so long as such entity constitutes an Affiliate of Subtenant; *provided*, that (i) Sublandlord shall have received at least ten (10) business days' prior written notice of such subsublease from Subtenant (which notice shall contain a statement setting forth, in reasonable detail, the identity of the proposed Affiliate and the nature of any current business or businesses of the proposed Affiliate and demonstrating how the proposed Affiliate satisfies the definition of Affiliate defined below); and (ii) Subtenant shall deliver to Sublandlord a copy of such fully executed subsublease within five (5) business days following the effective date of such subsublease (a permitted subsubtenant pursuant to this Section 15(c), a "**Permitted Affiliate Subsubtenant**"). "**Affiliate**" means, as to any designated person or entity, any other person or entity which controls, is controlled by, or is under common control with, such designated person or entity. "**Control**" (and with correlative meaning, "controlled by" and "under common control with") means ownership or voting control, directly or indirectly, of 50% or more of the voting stock, partnership interests or other beneficial ownership interests of the entity in question or the power to control the management of the entity by means of agreement or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding anything to the contrary provided in this Section 15, without the consent of Sublandlord, but subject to the consent of Prime Landlord to the extent required by the Prime Lease, Sublandlord's consent shall not be required for the occupancy of offices within the Subleased Premises by any individual or business entity who or which is a client, service provider or otherwise has a bona fide business relationship with Subtenant (a "**Sublease Space Occupant**"), provided that (i) each Sublease Space Occupant shall be of good reputation, and engaged in a business or activity which is in keeping with the standards of the Building and which is a permitted use under this Sublease, (ii) the Sublease Space Occupants shall not occupy, in the aggregate, more than twenty percent (20%) of the rentable area of the Subleased Premises, (iii) the portions of the Subleased Premises occupied by the Sublease Space Occupants shall be physically part of, and not separately demised from, the remainder of the Subleased Premises occupied by Subtenant, (iv) no Sublease Space Occupant shall have any signage outside of the Subleased Premises, nor any listing on the Building's lobby directory, and (v) Subtenant shall give Sublandlord a Sublease Space Occupant Notice (as hereinafter defined) with respect to each such Sublease Space Occupant at least ten (10) business days prior to the commencement of such Sublease Space Occupant's occupancy in the Subleased Premises. Each such occupancy shall be subject and subordinate to this Sublease and to the matters to which this Sublease is or shall be subordinate and in the event of the termination of this Sublease, such occupancy shall immediately terminate. Occupancy by a Sublease Space Occupant shall not be deemed to vest in such Sublease Space Occupant any right or interest in this Sublease nor shall it relieve, release, impair or discharge any of Subtenant's obligations hereunder. Each "**Sublease Space Occupant Notice**" given by Subtenant to Sublandlord pursuant to this Section 15(d) shall include (A) the name and the nature of the business or occupation of such Sublease Space Occupant and (B) the material terms of such Sublease Space Occupant's occupancy.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The rights granted by Sections 15(b), 15(c) and 15(d) above are personal to Named Subtenant and any Permitted Transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If this Sublease shall be assigned or if the Subleased Premises or any part thereof be further sublet or occupied by anybody other than Subtenant, Sublandlord may, after default by Subtenant beyond any applicable notice and cure period, collect rent from the assignee, subtenant or occupant, and, if Sublandlord does so, it shall apply the net amount collected to the Fixed Rent, Additional Rent and other charges herein reserved, but no such assignment, subletting, occupancy or collection shall be deemed a waiver of Subtenant's covenants under this Section 15, or the acceptance by Sublandlord of the assignee, subtenant or occupant as tenant hereunder or a release of Subtenant from the further performance by Subtenant of any of the terms, covenants and conditions of this Sublease on the part of Subtenant to be performed hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event of any Transfer (whether or not consented to), Subtenant shall (x) pay all fees and costs, if any, that Sublandlord is required to pay to Prime Landlord under the Prime Lease in connection with such Transfer and (y) reimburse Sublandlord for all reasonable fees incurred by Sublandlord in connection with such Transfer (including, without limitation, reasonable out of pocket attorneys' fees). In addition, one-half (1/2) of the amount by which all sums or other economic consideration actually received by Subtenant in connection with any permitted assignment or sub-subletting (after deducting all reasonable and customary out of pocket costs incurred by Subtenant in connection with such sub-subletting or assignment, including, without limitation, brokerage commissions, advertising fees, legal fees, free rent concessions, work allowances and costs of improvements to the Subleased Premises, in connection with such assignment or sub-subletting) exceeds, in the aggregate, the total sum which Subtenant is obligated to pay to Sublandlord under this Sublease (prorated to reflect obligations allocable to less than all of the Subleased Premises under a sub-sublease) shall be paid to Sublandlord promptly after receipt as Additional Rent under this Sublease.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ALTERATIONS</u>. Subtenant shall not make, cause, suffer or permit the making of any alterations, changes, replacements, improvements, installations or additions ("**Alterations**") in, to or about the Subleased Premises, without the prior written approval of Sublandlord and Prime Landlord in each instance if and as required in accordance with the applicable terms and conditions of the Prime Lease (with respect to Sublandlord's consent, as incorporated by reference). Additionally, any Alterations shall be subject to Article 8 of the Prime Lease and any other applicable terms and conditions of the Prime Lease, including without limitation obtaining the consent of Prime Landlord to the contractors performing the Alterations and giving prior notice whether or not consent is required. Notwithstanding anything herein (including the Prime Lease as incorporated by reference) to the contrary, Sublandlord shall have no obligation to deliver an ACP-5 to Subtenant. If Subtenant makes, causes, suffers or permits the making of any Alterations in, to or about the Subleased Premises, Subtenant shall (x) pay all fees and costs, if any, that Sublandlord is required to pay to Prime Landlord under the Prime Lease in connection with such Alterations and (y) reimburse Sublandlord for all reasonable out of pocket fees incurred by Sublandlord in connection with such Alterations (including, without limitation, reasonable attorneys' fees). Provided that Prime Landlord has approved the work described in Sections 4(d) and 4(e) of the Third Lease Amendment, Sublandlord shall be deemed to have approved such work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>BROKERAGE</u>. Each of Subtenant and Sublandlord represents to the other that it has not dealt with any broker or finder in connection with this sublease transaction. Subtenant and Sublandlord each agree to indemnify, defend and hold the other harmless from and against any costs and expenses (including, without limitation, reasonable attorneys' fees) resulting from a breach by the indemnifying party of the foregoing representation. The provisions of this Section 17 shall survive the expiration or earlier termination of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>WAIVER OF JURY TRIAL AND RIGHT TO COUNTERCLAIM</u>. Subtenant hereby waives all right to trial by jury in any summary or other action, proceeding, or counterclaim arising out of or in any way connected with this Sublease, the relationship of Sublandlord and Subtenant, the Subleased Premises (including the use and/or occupancy thereof) and any claim of injury or damages with respect thereto. Subtenant also hereby waives all right to assert or interpose a counterclaim (but not the right to raise or assert mandatory counterclaims) in any summary proceeding or other action or proceeding to recover or obtain possession of the Subleased Premises or for nonpayment of Fixed Rent or Additional Rent. The provisions of this Section 18 shall survive the expiration or earlier termination of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>HOLDOVER</u>. If vacant and exclusive possession of the Subleased Premises is not surrendered to Sublandlord on the expiration or earlier termination of this Sublease, Sublandlord shall be entitled to immediately by legal proceedings to reenter the Subleased Premises and dispossess Subtenant (and/or any person claiming by, through or under Subtenant). In the event of any such holding over, Subtenant shall pay as holdover rent or use and occupancy for each month (or portion thereof) of the holdover tenancy (a) for the first month of such holdover, 125%, and thereafter, 150% of the Fixed Rent payable during the last month of the Term and (b) 100% of Additional Rent on account of Operating Expenses and Taxes that would then be payable by Subtenant under this Sublease had the Term not expired, subject to all of the other terms of this Sublease insofar as the same are applicable to such holdover tenancy. The acceptance of any such use and occupancy payment paid by Subtenant pursuant to this Section 19 shall in no event preclude Sublandlord from commencing and prosecuting a holdover or summary eviction proceeding and the provisions of this Section 19 shall be deemed to be an "agreement expressly providing otherwise" within the meaning of Section 232-c of the Real Property Law of the State of New York and any successor or similar law of like import. In addition, Subtenant shall indemnify and shall save Sublandlord harmless from and against all actual costs, claims, loss or liability resulting from the failure of Subtenant to surrender the Subleased Premises on the Expiration Date or sooner termination of the Sublease, including, without limitation, if Subtenant holds over beyond the expiration or earlier termination of the Prime Lease, any amounts payable by Sublandlord to Prime Landlord pursuant to Article 20 of the Prime Lease or under any indemnity contained in the Prime Lease ("**Prime Lease Holdover Payments**"), provided that, excluding Subtenant's liability for Prime Lease Holdover Payments (for which the following 90-day limitation will not apply), Subtenant shall not be liable to Sublandlord under this sentence unless Subtenant holds over for more than ninety (90) days. Nothing contained in this Section 19 shall (i) imply any right of Subtenant to remain in the Subleased Premises after the termination of this Sublease without the execution of a new lease, (ii) imply any obligation of Sublandlord to grant a new lease or (iii) be construed to limit any right or remedy that Sublandlord has against Subtenant as a holdover tenant or trespasser. The provisions of this Section 19 shall survive the expiration or earlier termination of this Sublease.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>SURRENDER</u>. Subtenant shall, on or prior to the expiration or earlier termination of this Sublease (i) remove all of Subtenant's movable fixtures and movable partitions, telephone and other equipment, computer systems, trade fixtures, furniture, furnishings and other items of personal property which are removable without material damage to the Building and any other items required to be removed in accordance with and subject to Section 20.4(b) of the Prime Lease (as incorporated by reference), including any Specialty Alterations (subject to Section 4(g) of the Third Lease Amendment) and (ii) surrender to Sublandlord the Subleased Premises, vacant, broom-clean and in good order and condition. In the event any Alterations to the Subleased Premises are performed by or on behalf of Subtenant that Prime Landlord requires must be removed and/or restored to the original condition, Subtenant shall be liable to remove and/or restore such Alterations prior to the expiration or earlier termination of this Sublease. Subtenant agrees to reimburse Sublandlord for all commercially reasonable out of pocket costs and expenses incurred in removing and storing Subtenant's property, or repairing any damage to the Subleased Premises caused by or resulting from Subtenant's failure to comply with the provisions of this Section 20. Notwithstanding anything to the contrary provided in this Section 20, Subtenant shall have the right to elect that Sublandlord, at Sublandlord's option, either remove or elect under the Prime Lease that Prime Landlord remove any Specialty Alterations installed by on behalf of Sublandlord by delivery of written notice to Sublandlord not later than six (6) months prior to the expiration of the term of this Sublease, and, in such event, Subtenant shall pay to Sublandlord, as Additional Rent within thirty (30) days after demand, Sublandlord's out of pocket costs incurred in connection with such removal and restoration, including any amounts payable by Sublandlord to Prime Landlord in connection with same. The provisions of this Section 20 shall survive the expiration or earlier termination of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>NO WAIVER</u>. Sublandlord's receipt and acceptance of Fixed Rent or Additional Rent, or Sublandlord's acceptance of performance of any other obligation by Subtenant, with knowledge of Subtenant's breach of any provision of this Sublease, shall not be deemed a waiver of such breach. No waiver by Sublandlord of any term, covenant or condition of this Sublease shall be deemed to have been made unless expressed in writing and signed by Sublandlord.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>SUCCESSORS AND ASSIGNS</u>. The provisions of this Sublease, except as herein otherwise specifically provided, shall extend to, bind and inure to the benefit of the parties hereto and their respective successors and permitted assigns. In the event of any assignment or transfer by Sublandlord of the leasehold estate under the Prime Lease, the Sublandlord shall be entirely relieved and freed of all obligations that arise or accrue under this Sublease after the effective date of such assignment or transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>LIABILITY OF SUBLANDLORD AND SUBTENANT</u>. Sublandlord's partners, employees, officers, directors and shareholders, disclosed or undisclosed, shall have no personal liability under this Sublease. Subtenant's partners, employees, officers, directors and shareholders, disclosed or undisclosed, shall have no personal liability under this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>GENERAL PROVISIONS</u>. Irrespective of the place of execution or performance, this Sublease shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements made and to be performed within the State of New York. The captions, headings and titles, if any, in this Sublease are solely for convenience of reference and shall not affect its interpretation. This Sublease shall be construed without regard to any presumption or other rule requiring construction against the party causing this Sublease to be drafted. Each covenant, agreement, obligation or other provision of this Sublease binding upon Subtenant shall be deemed and construed as a separate and independent covenant of Subtenant, not dependent on any other provision of this Sublease unless otherwise expressly provided. This Sublease may be executed in one or more counterparts, each of which shall constitute an original and all of which when taken together shall constitute one and the same instrument. An executed counterpart of this Sublease transmitted by facsimile, email or other electronic transmission shall be deemed an original counterpart and shall be as effective as an original counterpart of this Sublease and shall be legally binding upon the parties hereto to the same extent as delivery of an original counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>NOTICES</u>. All notices, requests, demands and other communications with respect to this Sublease shall be in writing, shall be delivered (a) by hand (against signed receipt), (b) by registered or certified mail (return receipt requested), (c) by nationally recognized overnight courier (with verification of delivery) or (d) by e-mail with a duplicate copy provided by one of the other enumerated means on or prior to the end of the next business day, in each case with the primary notice or a copy thereof transmitted by email, addressed as follows:

If to Sublandlord:

Pershing Square Capital Management, L.P.

787 Eleventh Avenue, 9<sup>th</sup> Floor

New York, New York 10019

Attn: Nicholas Botta

Email: [email]

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With a copies to:

Seyfarth Shaw LLP

620 Eighth Avenue

New York, New York 10018-1405

Attn: Jason T. Polevoy, Esq.

Email: [email]

and

Patterson Belknap Webb & Tyler LLP

1133 Avenue of the Americas

New York, New York 10036

Attn: Robert M. Safron, Esq.

Email: [email]

If to Subtenant:

NEOX Public Benefit LLC

787 Eleventh Avenue, 10<sup>th</sup> Floor

New York, New York 10019

Attn: Andrew Tom

Email: [email]

With a copy to:

ArentFox Schiff LLP

1185 Avenue of the Americas

Suite 3000

New York, NY 10036

Attn: Marina Rabinovich, Esq.

Email: [email]

or to such other address or addresses as Sublandlord or Subtenant may designate from time to time. Any such notices, requests, demands and other communications shall be deemed to have been received (i) on the third (3<sup>rd</sup>) business day after the mailing thereof if mailed in accordance with the terms hereof or (ii) upon hand delivery if delivered by hand or one business day following deposit with the overnight courier if delivered by overnight courier or (iii) in the event of delivery by email, upon transmission. Notice delivered by legal counsel to the parties on behalf of such counsel's client in accordance with the terms of this Section 25 shall be deemed effective notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>INTENTIONALLY OMITTED</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>HAZARDOUS SUBSTANCES</u>. Subtenant shall use no Hazardous Substances in, on, under or about the Subleased Premises or any part of the Building and surrounding areas, except as expressly permitted by this Sublease or the Prime Lease (including, without limitation, Section 4(a) and Exhibit E of the Third Lease Amendment).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>SIGNS</u>. Subtenant may not install any sign, other than in accordance with and terms of the Prime Lease, including without limitation obtaining the prior written approval of Prime Landlord and Sublandlord in each instance, which approval from Prime Landlord and Sublandlord shall be granted or withheld in accordance with the terms and conditions of the Prime Lease (with respect to Sublandlord's consent, as incorporated by reference). Sublandlord shall have no liability to Subtenant for the failure of Prime Landlord to consent to Subtenant's sign. Subtenant shall be solely responsible for the costs for any such sign(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>AMENDMENT OF PRIME LEASE</u>. Subject to Section 14, Sublandlord reserves its right to amend or modify the Prime Lease provided that such amendment does not adversely affect Subtenant, Subtenant's rights under this Sublease or, beyond a de minimis extent, Subtenant's use of the Subleased Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>INTENTIONALLY OMITTED</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>PUBLICITY</u>. Each of Sublandlord and Subtenant agrees that it will not, without the prior written consent of the other party in each instance, (i) disclose this Sublease or the terms or existence thereof, except to Prime Landlord and subject to any obligation to comply with (a) any applicable law, (b) any rule or regulation of any legal authority or securities exchange, (c) any subpoena or other legal process to make information available to the Persons (as defined in the Prime Lease) entitled thereto or (d) in connection with a dispute or legal proceeding between the parties pertaining to this Sublease; (ii) use in advertising, publicity, marketing or other promotional materials or activities, the name, trade name, trademark, trade device, service mark or symbol, or any abbreviation, contraction or simulation thereof, of Sublandlord, its affiliates or their respective partners or employees, or (iii) represent, directly or indirectly, that any product or any service of Subtenant has been approved or endorsed by Sublandlord. In addition to the foregoing, Subtenant may disclose this Sublease or the terms or existence thereof to Subtenant's attorneys and accountants, provided that such Subtenant notifies such Persons of the foregoing confidentiality requirements and such Persons are obligated to maintain the confidentiality of such information. This provision shall survive expiration or termination of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>TERRACE LICENSE</u>. Subject to and in accordance with the terms and conditions of Article 22 of the Prime Lease, as incorporated in this Sublease, Sublandlord hereby grants to Subtenant an exclusive sublicense, revocable only as set forth in Article 22 of the Prime Lease as incorporated in this Sublease, to use the portion of the License Area on the exterior of the ninth floor of the Building, adjacent to the 9<sup>th</sup> Floor Sublease Premises, as shown hatched on Exhibit A-1 hereto (the "**Sublease License Area**"). Subtenant may not sub-sublicense any portion of the Sublease License Area or grant any occupancy rights with respect Sublease License Area unless Subtenant is, in connection therewith, also subsubleasing the entire 9<sup>th</sup> Floor Subleased Premises in accordance with the terms of this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EQUIPMENT FINANCING</u>. Subject to the Prime Lease and compliance with any requirements of Prime Landlord, Subtenant shall be permitted to grant a security interest in any and all moveable equipment owned or leased by Subtenant located in the Subleased Premises (collectively, the "**Collateral Property**") in connection with customary financing secured by such Collateral Property, <u>provided</u> that: (i) such moveable equipment can be removed from the Subleased Premises, (ii) the secured party shall agree to repair any damage to the Subleased Premises and/or the Building caused by its removal of any Collateral Property therefrom and to indemnify Sublandlord and Prime Landlord with respect to same; and (iii) such secured party shall execute an agreement substantially in the form attached to the Non-Disturbance Agreement (as defined in the Third Lease Amendment) as Exhibit B. The rights granted by this Section 33 are personal to Named Subtenant and any Permitted Transferee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>PRIME LEASE AUDIT RIGHT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to the Prime Lease and the provisions of this Section, and provided that Subtenant is not then in default under this Sublease beyond any applicable notice and cure period, upon Subtenant's written request, Sublandlord will exercise Sublandlord's rights under Section 6.2.3 of the Prime Lease to examine the correctness of any Landlord's Operating Expense Statement for any Operating Year all or any part of which falls within the term of this Sublease, or any item contained therein. Any such request may be made by notice from Subtenant to Sublandlord no more than one hundred fifty (150) days after the applicable Operating Expense Statement Date with respect to such Landlord's Operating Expense Statement. Before then, upon Subtenant's request from time to time, Sublandlord shall keep Subtenant reasonably apprised as to whether Sublandlord intends to exercise Sublandlord's rights under Section 6.2.3 of the Prime Lease with respect to such Landlord's Operating Expense Statement. If Subtenant exercises such right and Sublandlord has not previously (a) exercised its audit rights under Section 6.2.3 of the Prime Lease or (b) advised Subtenant that Sublandlord does not intend to exercise such audit rights, then (i) if it is determined that the amounts paid by Sublandlord to Prime Landlord on account of Operating Expenses for the applicable Operating Year did not exceed the amounts to which Prime Landlord was entitled under the Prime Lease, then all costs and expenses of any such examination, based on reasonable evidence of same, shall be paid by Subtenant to Sublandlord within thirty (30) days after written demand therefor and (ii) if it is determined that the amounts paid by Sublandlord to Prime Landlord on account of Operating Expenses for the applicable Operating Year exceeded the amounts to which Prime Landlord was entitled under the Prime Lease, then Subtenant shall pay to Sublandlord its pro rata share of the costs and expenses of any such examination, based on reasonable evidence of same, within thirty (30) days after written demand therefor, and Subtenant shall be entitled to receive its pro rata share of any amounts that Prime Landlord may be obligated to reimburse Sublandlord pursuant clause (ii) of the last sentence of Section 6.2.3 of the Prime Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If as a result of any examination pursuant to Section 6.2.3 of the Prime Lease pertaining to an Operating Year occurring in whole or in part during the Term, Prime Landlord and Sublandlord agree, or it is finally determined by an Arbiter or by legal proceedings, that the amounts paid by Sublandlord to Prime Landlord on account of the Operating Expenses exceeded the amounts to which Prime Landlord was entitled under the Prime Lease, or that Sublandlord is entitled to a credit with respect to the Operating Expenses, then (i) if Prime Landlord shall refund to Sublandlord the amount of such excess, then within thirty (30) days after Sublandlord's receipt of such excess, Sublandlord shall refund to Subtenant Subtenant's Operating Expense Share of such excess and (ii) if Prime Landlord credits to Sublandlord the amount of such excess to Sublandlord's rent payment obligations under the Prime Lease, then Subtenant shall receive a corresponding credit, in an amount equal to Subtenant's Operating Expense Share of such excess, to Subtenant's rent payment obligations under this Sublease, in the same manner as credited to Sublandlord under the Prime Lease (in each case on a pro rata basis if attributable to any Operating Year for which a part (but not all) falls within the term of this Sublease). If Prime Landlord and Sublandlord agree, or it is finally determined by an Arbiter or by legal proceedings, that the amounts paid by Sublandlord to Prime Landlord on account of Operating Expenses for any such Operating Year were less than the amounts to which Prime Landlord was entitled under the Prime Lease, then Subtenant shall pay to Sublandlord, as additional rent hereunder, Subtenant's Operating Expense Share of the amount of such deficiency within thirty (30) days after written demand therefor together with reasonable evidence of same.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The rights granted by this Section 34 are personal to Named Subtenant and any Permitted Transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>OPTION TO EXTEND</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sublandlord and Subtenant acknowledge that Sublandlord presently has options under the Prime Lease to extend the term of the Prime Lease for up to six (6) successive extended terms of 5 years each or two (2) extended terms of 15 years (the "**Existing Prime Lease Extension Options**"). Provided that (i) this Sublease and the Prime Lease are then each in full force and effect, (ii) Subtenant shall not be in monetary or material non-monetary default under this Sublease beyond the expiration of any applicable notice and cure periods at the time when the applicable Sublease Extension Notice (as hereinafter defined) is given and at the expiration of then current term of this Sublease, (iii) Named Subtenant, together with any Permitted Affiliate Subtenants and Sublease Space Occupants, occupies one hundred percent (100%) of the Subleased Premises at the time when the applicable Sublease Extension Notice is given and at the expiration of the then current Term, (iv) Sublandlord elects to exercise the applicable Extension Option under the Prime Lease, in Sublandlord's sole and absolute discretion, and (v) Sublandlord does not elect to occupy the Subleased Premises or any portion thereof for Sublandlord's own purposes as provided below, Subtenant shall have the option to extend the Term for a period concurrent with each Existing Prime Lease Extension Option that may be exercised by Sublandlord, subject to the terms hereof (each, a "**Sublease Extension Option**"). If Subtenant desires to exercise any Sublease Extension Option, Subtenant shall give written notice thereof (a "**Sublease Extension Notice**") by not later than eighteen (18) months prior to the then current Expiration Date. Upon Subtenant's request thereafter from time to time, Sublandlord shall keep Subtenant reasonably apprised as to whether Sublandlord intends to exercise an Existing Prime Lease Extension Option and, if exercised, whether Sublandlord intends to use the Subleased Premises or any portion thereof for Sublandlord's own purposes, and Sublandlord shall notify Subtenant of such intentions at least fourteen (14) months prior to the then current Expiration Date. If Subtenant timely gives Sublandlord a Sublease Extension Notice, then Sublandlord shall notify Subtenant within five (5) business days following Sublandlord's exercise of the applicable Existing Prime Lease Extension Option of Sublandlord's exercise thereof and whether Subtenant elects to use the Subleased Premises or any portion thereof for its own business purposes during extended Prime Lease Term, and unless Sublandlord elects to use the Subleased Premises or any portion thereof for Sublandlord's own purposes, then the Term shall be automatically extended for the period commencing on the date immediately following the then current Expiration Date and ending on the date one month prior to the date of expiration of the term of the Prime Lease, as so extended (a "**Sublease Extension Term**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Each Sublease Extension Term shall constitute an extension of the Term and shall be upon all of the same terms and conditions as the existing Term except that (i) Sublandlord shall not be required to furnish any materials or perform any work to prepare the Subleased Premises for Subtenant's continued occupancy and Sublandlord shall not be required to reimburse Subtenant for any alterations or leasehold improvements made or to be made by Subtenant, and (ii) the Fixed Rent for the Subleased Premises during the applicable Sublease Extension Term shall be payable at the same rate per rentable square foot payable by Sublandlord under the Prime Lease, as determined pursuant to the Prime Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sublandlord and Subtenant, at the request of either party, shall enter into an agreement confirming any applicable Sublease Extension Term and the Fixed Rent with respect thereto, but the failure of either party to do so shall not affect the rights or obligations of the parties under this Sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The rights granted by this Section 35 are personal to Named Subtenant and any Permitted Transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>IMPROVEMENT ALLOWANCE</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sublandlord shall give Subtenant a work allowance in the amount of $4,380,125 (hereinafter called the "**Allowance**"). The Allowance shall be applied solely against the aggregate cost and expense of the performance of Subtenant's initial improvements in the Subleased Premises, ("**Subtenant's Work**"), excluding the installation of submeter or submeters serving the Subleased Premises pursuant to Section 10(b) of this Sublease ("**Submeter Work**"). To the extent that the aggregate cost and expense of Subtenant's Work, excluding Submeter Work (hereinafter called the "**Work Cost**"), exceeds the Allowance, Subtenant shall be solely responsible for the payment of the excess cost. If the Work Cost shall be less than the amount of the Allowance, the Allowance shall be reduced to the amount of such Work Cost. No more than fifteen (15%) percent of the Allowance shall be used to pay any "soft costs" of the Work Costs. For the purposes of this Section, "soft costs" shall mean Subtenant's actual out-of-pocket costs for architectural and engineering services and filing fees in connection with Subtenant's Work; *provided, however,* that "soft costs" shall not include, and no portion of the Allowance shall be allocated to, the costs of procuring furniture or furnishing and/or moving into the Subleased Premises.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Allowance shall be payable by Sublandlord to Subtenant in one or more installments, in each case, within thirty (30) days after Subtenant's requisitions, including all required supporting documentation (each being hereinafter called a "**Subtenant Requisition**"), shall have been submitted by Subtenant to Sublandlord as Subtenant's Work progresses (but not more frequently than monthly). Provided that an Event of Default is not then continuing hereunder, disbursements of the Allowance by Sublandlord shall be made in amounts equal, in each case, to ninety percent (90%) of the amount of the Subtenant Requisition until the Allowance is fully applied and consumed (it being agreed that the amounts retained by Sublandlord shall be paid to Subtenant upon completion of Subtenant's Work in compliance with this Sublease and the Prime Lease). In furtherance of the foregoing, prior to Sublandlord's payment of any portion of the Allowance, Subtenant shall deliver to Sublandlord a Subtenant Requisition for disbursement which shall be accompanied by (1) copies of paid invoices for the Subtenant's Work performed in connection therewith, (2) a certificate signed by the Subtenant's architect certifying that the Subtenant's Work represented by the aforesaid invoices has been satisfactorily completed in accordance with this Sublease, the Prime Lease and applicable laws, (3) partial lien waivers from the general contractor and any subcontractors who shall have performed the work referenced in the Subtenant Requisition, and (4) in connection with the Subtenant Requisition for the final ten percent (10%) of the Allowance (or such greater portion of the Allowance as may represent the unused balance, if any, thereof): (x) final lien waivers from the general contractor and any subcontractors who shall have performed any portion of Subtenant's Work, except to the extent that such final lien waivers have theretofore been submitted to Sublandlord, (y) final "as-built" plans in hard copy and electronic CAD format with respect to Subtenant's Work as required pursuant to the provisions of this Sublease or the Prime Lease, and (z) all sign-offs, inspection certificates and permits with respect to the use and occupancy of the Subleased Premises required to be issued by the New York City Department of Buildings, New York City Fire Department and by any other governmental authorities having jurisdiction over the Building and the Premises with respect to Subtenant's Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtenant's agreements with its contractors and materialmen for Subtenant's Work shall provide for a ten percent (10%) retainage of payments due such contractors and materialmen.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At any and all times during the progress of Subtenant's Work, representatives of Sublandlord shall have the right of access to the Subleased Premises and inspection thereof; *provided*, *however*, that Sublandlord shall incur no liability, obligation or responsibility to Subtenant or any third party, except to the extent resulting from the negligence or willful misconduct of Sublandlord or its respective representatives, and shall not be deemed to have approved any of Subtenant's Work by reason of such access and inspection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The right to receive reimbursement for the cost of Subtenant's Work as set forth in this Section 36 shall be for the exclusive benefit of Subtenant, it being the express intent of the parties hereto that, in no event shall such right be conferred upon or for the benefit of any third party, including, without limitation, any contractor, subcontractor, materialman, laborer, architect, engineer, attorney or any other person, firm or entity.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If, as of the date when a Subtenant Requisition is due to be paid hereunder by Sublandlord (and *provided* Subtenant has provided Sublandlord with all documentation required under this Section 36 with respect to such Subtenant Requisition), such Subtenant Requisition is not timely paid by Sublandlord, then, *provided* no default by Subtenant has occurred and is continuing beyond any applicable notice and/or cure periods, Subtenant shall have the right, as Subtenant's sole and exclusive remedy in connection therewith, to have such unpaid Subtenant Requisition amount credited against the next installment(s) of Fixed Rent and recurring Additional Rent thereafter becoming due under this Sublease, *provided* that Subtenant first gives at least thirty (30) days' notice to Sublandlord in connection therewith (an "**Offset Notice**"), which notice shall state in bold type and capital letters at the top of such notice and on the envelope containing such notice stating **"THIS IS A TIME SENSITIVE OFFSET NOTICE AND SUBLANDLORD SHALL BE DEEMED TO ACCEPT SUCH OFFSET IF IT FAILS TO RESPOND IN THE TIME PERIOD PROVIDED"** as a condition to the effectiveness thereof. Within the 30-day period following receipt by Sublandlord of the Subtenant Requisition or within the additional 30-day period described above, Sublandlord may dispute, in good faith, Subtenant's right to such credit by providing written notice thereof to Subtenant identifying with reasonable specificity the reasons for Sublandlord's objections and, in such case, (i) Subtenant shall not have the right to offset Fixed Rent as detailed hereunder, (ii) the parties shall endeavor in good faith to resolve their dispute and (iii) if the parties fail to resolve such dispute within 30 days, such dispute may be resolved in accordance with Section 20.2 of the Prime Lease. If Sublandlord fails to dispute Subtenant's right to such credit within the period(s) described above and fails to pay the amount set forth in the applicable Subtenant Requisition prior to the expiration of the 30 day period following the giving of the applicable Offset Notice, Subtenant shall be entitled to take such credit against the next installment(s) of Fixed Rent and recurring Additional Rent thereafter becoming due under this Lease; *provided*, that (1) at any time, from time to time, Sublandlord shall be entitled to pay any outstanding amount and (2) if Sublandlord shall properly dispute whether a Subtenant Requisition is to be disbursed, and Sublandlord prevails, Subtenant shall repay any amounts for which a disbursement was made by Sublandlord or for which Subtenant received a credit or offset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sublandlord and Subtenant acknowledge that an affiliate of Prime Landlord has agreed to pay to Sublandlord the amount of $1,660,000 (the "Reimbursement Amount") on account of the reimbursement of certain costs incurred by Subtenant as a result of Building-related matters which delayed the entering into of this Sublease. Sublandlord shall pay to Subtenant the Reimbursement Amount within thirty (30) days following Sublandlord's receipt thereof. If such affiliate of Prime Landlord fails to timely pay the Reimbursement Amount to Sublandlord, then Sublandlord shall use commercially reasonable efforts to enforce such affiliate of Prime Landlord's performance of its obligation to pay the Reimbursement Amount to Sublandlord.

**[INTENTIONALLY BLANK; SIGNATURE PAGE FOLLOWS]**

------

IN WITNESS WHEREOF, Sublandlord and Subtenant have executed this Sublease as of the day and year first above written.

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| | |
|:---|:---|
| **SUBLANDLORD:** | **SUBLANDLORD:** |
| PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. |
| By: PS Management GP, LLC, its General Partner | By: PS Management GP, LLC, its General Partner |
| By: | /s/ William A. Ackman |
|  | Name: William A. Ackman |
|  | Title: Managing Member |

---

---

| | |
|:---|:---|
| **SUBTENANT:** | **SUBTENANT:** |
| NEOX PUBLIC BENEFIT LLC | NEOX PUBLIC BENEFIT LLC |
| By: | /s/ Andrew Tom  |
|  | Name: Andrew Tom |
|  | Title: CFO |

---

------

**<u>Exhibit A-1</u>**

****

<br> **<u> </u>**

**9<sup>th</sup> Floor Subleased Premises and Sublease License Area**<br>

<u> </u>

[Floor Plan]

------

**<u>Exhibit A-2</u>**

****

<br> **10<sup>th</sup> Floor Subleased Premises**<br>

**<u> </u>**

[Floor Plan]<br>

------

**<u>Exhibit B</u>**

**<u>Fixed Rent</u>**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Period** | &nbsp;&nbsp;**Annualized Fixed Rent** | &nbsp;&nbsp;**Monthly Base Rent** |
| &nbsp;&nbsp;Lease Years 1 – 5 | &nbsp;&nbsp;$2978485.00 | &nbsp;&nbsp;$248207.08 |
| &nbsp;&nbsp;Lease Years 6 – 10 | &nbsp;&nbsp;$3223772.00 | &nbsp;&nbsp;$268647.67 |
| &nbsp;&nbsp;Lease Year 11 – Expiration Date | &nbsp;&nbsp;$3469059.00 | &nbsp;&nbsp;$289088.25 |

---

The term "**<u>Lease Year</u>**" shall mean the period beginning on the Commencement Date to and including the last day of the calendar month in which the day immediately preceding the first anniversary of the Commencement Date occurs and each one (1) year period thereafter of the Term.

------

**<u>Exhibit C</u>**

**<u>Additional Permitted Uses</u>**

WORKSHOP

A fabrication workshop for prototyping and finishing of small to large scaled objects. Activities include, but may not be limited to, woodworking, machining, curing of resins, finishing, and 3D-printing of metals, plastics, photopolymers, and glass. The installation and use of the workshop equipment are subject to the provisions of Sections 10.3 through 10.6 and 18(c) of the Prime Lease.

ROBOTIC CELL/THE THEATER

An automatic work cell in which one or more programmable robots are installed to fabricate or finish small to large scale objects.

WET LAB

A biosafety level 2 (BSL-2) laboratory, work shop and support spaces where biological materials and chemicals with potential hazard to personnel and the environment can be handled; which biological materials and chemicals ("**BioChem Materials**") shall only be stored in the Subleased Premises in accordance with this paragraph. Subtenant shall (A) comply with the requirements of Section 10.6(a) of the Prime Lease with respect to the disposal, storage and use of any BioChem Materials in the Subleased Premises, with the exception of the first sentence thereof and (B) not in any manner use, maintain, dispose of or allow the use, maintenance or disposal of any BioChem Materials in the Subleased Premises in violation of any legal requirements governing the handling of BioChem Materials. Subtenant shall not use, maintain or dispose of or allow the use, maintenance or disposal of BioChem Materials in the Subleased Premises or the Building or any part thereof, or use the Subleased Premises for the treatment, storing, disposal of, transfer, release, conveyance or recovery of BioChem Materials generated outside of the Subleased Premises, <u>unless</u> in each case the same is (i) in the ordinary course of Subtenant's business for laboratory use in the Subleased Premises, and (ii) performed in compliance with all applicable legal requirements and consistent with other laboratories in first class office buildings in midtown Manhattan and industry standards with respect to the use, maintenance and disposal of BioChem Materials. In addition, Subtenant shall now otherwise, in any manner other than in compliance with all applicable provisions of the Prime Lease governing Sublandlord's or Subtenant's use, maintenance and disposal of BioChem Materials, possess or allow the possession of any BioChem Materials on or about the Subleased Premises or the Building. Subtenant shall indemnify, defend and hold the Sublandlord and the Landlord Parties (as defined in the Prime Lease) harmless to the fullest extent of the law from any and all loss, cost, damage or expense incurred by Sublandlord or the Landlord Parties (or any of them) in connection with any breach of the obligations under this paragraph pursuant to the provisions of Article 7 of this Sublease and Section 11.1 of the Prime Lease, as applicable. The covenants and obligations of Subtenant under this paragraph shall survive the expiration or earlier termination of this Sublease and the Prime Lease.

------

TERRACE

Insectariums for raising insects (i.e., ants, silkworms and potentially beehives), subject, in each case, to the rules and regulations set forth on Exhibit E to the Prime Lease (as the same may be amended, modified or restated from time to time in accordance with Section 20.13 of the Prime Lease).

OPEN PROTOTYPING AREA

A space for gatherings, presentations and showcasing art exhibitions across various scales. Notwithstanding the foregoing, no portion of the Subleased Premises shall be open to the general public and any such gatherings, presentations and showcasings shall be limited to visitors by invitation only. Subtenant shall be required to provide Sublandlord at least 15 days' prior written notice if Subtenant desires to hold any such gathering, presentation or showcasing in the Subleased Premises, which notice shall include copies of any required public assembly and other permits required for such gathering, presentation or showcasing.

------

**<u>Exhibit D</u>**

**<u>Sublandlord's Work</u>**

● Relocation of 10<sup>th</sup> Floor electrical conduit and gas pipe per the following plans by Cosentini Associates:

&nbsp;&nbsp;&nbsp;&nbsp;1. Electrical drawings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. E-001.00 titled ELECTRICAL NOTES dated 4/15/21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. DE-110.00 titled ELECTRICAL 10<sup>TH</sup> FLOOR CONDUIT ROUTING DEMO PLAN dated 4/15/21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. E-110.00 titled ELECTRICAL 10<sup>TH</sup> FLOOR PROPOSED CONDUIT ROUTING dated 4/15/21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Plumbing Drawings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. P-001.00 titled PLUMBING SYMBOLS, NOTES, SPECIFICATION, DETAILS, SCHEDULES & DRAWING LIST dated
 4/15/21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. P-210.00 titled PLUMBING 10TH FLOOR GAS PIPE DEMO & RELOCATION PLAN dated 4/15/21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. P-321.00 titled PLUMBING GAS RISER DIAGRAM dated 4/15/21

## Exhibit 10.9

**Exhibit 10.9**

**EXECUTION VERSION**

GEORGETOWN ELEVENTH AVENUE OWNERS, LLC,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>

Landlord,

TO

PERSHING SQUARE CAPITAL MANAGEMENT, L.P.,

Tenant

LEASE

Premises at:

787 Eleventh Avenue

New York, New York

------

**<u>**TABLE OF CONTENTS**</u>**

<u>PAGE</u>

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| | |
|:---|:---|
| ARTICLE 1 BASIC LEASE PROVISIONS AND ENUMERATION OF EXHIBITS | 1 |
| ARTICLE 2 PREMISES | 10 |
| ARTICLE 3 LEASE TERM | 12 |
| ARTICLE 4 COMPLETION OF THE PREMISES AND BASE BUILDING CONDITIONS | 14 |
| ARTICLE 5 ANNUAL FIXED RENT AND ADDITIONAL RENT | 17 |
| ARTICLE 6 ESCALATION | 20 |
| ARTICLE 7 REPAIRS AND SERVICES | 38 |
| ARTICLE 8 ALTERATIONS | 42 |
| ARTICLE 9 LAWS, ORDINANCES, REQUIREMENTS OF PUBLIC AUTHORITIES | 49 |
| ARTICLE 10 USE | 51 |
| ARTICLE 11 INDEMNITY AND INSURANCE | 55 |
| ARTICLE 12 FIRE, CASUALTY OR TAKING | 62 |
| ARTICLE 13 ASSIGNMENT, SUBLETTING, MORTGAGING | 68 |
| ARTICLE 14 NO LIABILITY OR REPRESENTATIONS BY LANDLORD; FORCE MAJEURE | 83 |
| ARTICLE 15 ENTRY, RIGHT TO CHANGE PUBLIC PORTIONS OF THE BUILDING | 85 |
| ARTICLE 16 ELECTRICITY | 86 |
| ARTICLE 17 SUBORDINATION; ASSIGNMENT OF RENTS | 88 |
| ARTICLE 18 CERTAIN ADDITIONAL TENANT COVENANTS | 92 |
| ARTICLE 19 TENANT'S DEFAULT; LANDLORD'S REMEDIES | 93 |
| ARTICLE 20 MISCELLANEOUS | 101 |
| ARTICLE 21 OPTIONS TO EXTEND | 119 |
| ARTICLE 22 TERRACE AND ROOFTOP LICENSE | 122 |
| ARTICLE 23 RIGHT OF FIRST OFFER | 126 |
| ARTICLE 24 LANDLORD'S TERMINATION OPTION | 130 |
| ARTICLE 25 SIGNAGE | 130 |
| ARTICLE 26 EXPANSION SPACE | 131 |
| ARTICLE 27 ANTENNA | 133 |

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i

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THIS INSTRUMENT IS AN INDENTURE OF LEASE in which the Landlord and the Tenant are the parties hereinafter named, and which relates to space in the building (the "Building") known as, and with an address at, 787 Eleventh Avenue, New York, New York 10019.

The parties to this instrument hereby agree with each other as follows:

<u>ARTICLE 1</u>

<u>BASIC LEASE PROVISIONS AND ENUMERATION OF EXHIBITS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; INTRODUCTION. The following sets forth the basic data and identifying Exhibits, elsewhere hereinafter referred to in this Lease, and, where appropriate, constitutes definitions of the terms hereinafter listed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BASIC DATA.

---

| | |
|:---|:---|
| Date: | October 26, 2016 |
| Landlord: | GEORGETOWN ELEVENTH AVENUE OWNERS, LLC, a Delaware limited liability company |
| Present Mailing Address of Landlord: | Georgetown Eleventh Avenue Owners, LLC <br> c/o The Georgetown Company <br> 667 Madison Avenue <br> New York, New York 10065 <br> Attn: Adam Flatto  |
| Landlord's Construction Representative: | Joel Silverman |
|  | c/o The Georgetown Company |
|  | 667 Madison Avenue |
|  | New York, New York 10065 |
| Tenant: | PERSHING SQUARE CAPITAL MANAGEMENT, L.P., a Delaware limited partnership |
| Present Mailing Address of Tenant: | Pershing Square Capital Management, L.P. |
|  | 888 Seventh Avenue |
|  | 42<sup>nd</sup> Floor |
|  | New York, New York 10019 |
|  | Attn: Nicholas Botta |

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------

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| | |
|:---|:---|
| Tenant's Construction Representative: | Thomas F. Hardardt |
|  | c/o TKO Project Management |
|  | 84 Maple Hill Road |
|  | Huntington, New York 11743 |
| Access Date: | As defined in Section 3.1 hereof. |
| Expiration Date: | As defined in Section 3.2 hereof. |
| Lease Term: | As defined in Section 3.1 hereof. |
| Lease Year: | A period of twelve (12) consecutive calendar months, commencing on the first day of January in each year, except that the first Lease Year of the Lease Term shall be the period commencing on the Rent Commencement Date and ending on the succeeding December 31, and the last Lease Year of the Lease Term shall be the period commencing on January l of the calendar year in which the Lease Term ends and ending with the Expiration Date. |
| Building: | The building and other improvements erected on the Land known as and by the street number 787 Eleventh Avenue, New York, New York. |
| Premises: | Office Premises: The entire ninth (9<sup>th</sup>) floor of the Building, which is agreed to consist of 42,771 rentable square feet of space, and a portion of the tenth (10<sup>th</sup>) floor of the Building, which is agreed to consist of 24,100 rentable square feet of space (66,871 in the aggregate and subject to adjustment as provided in Section 2.1), as further described and depicted in Exhibit B-1 hereto. |
|  | Mezzanine Premises: A portion of the mezzanine of the Building, which is agreed to consist of 938 rentable square feet of space (subject to adjustment as provided in Section 2.1), as further described and depicted in Exhibit B-2 hereto. |
| Annual Fixed Rent: | With respect to the Office Premises: |
|  | Subject to abatement as set forth in Section 5.5, from the Access Date through the day preceding the fifth (5<sup>th</sup>) anniversary of the Rent Commencement Date (the "First Rental Period"), the sum of $5,990,293.00 ($89.58 per rentable square foot per annum). |

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| | |
|:---|:---|
|  | From the fifth (5<sup>th</sup>) anniversary of the Rent Commencement Date through the day preceding the tenth (10<sup>th</sup>) anniversary of the Rent Commencement Date (the "Second Rental Period"), the sum of $6,421,519.00 ($96.03 per rentable square foot per annum). |
|  | From the tenth (10<sup>th</sup>) anniversary of the Rent Commencement Date through the Expiration Date (the "Third Rental Period"), the sum of $6,852,745.00($102.48 per rentable square foot per annum). |
|  | The foregoing Annual Fixed Rent Amounts shall be subject to Section 5.1(b) and Section 5.5. |
|  | With respect to the Mezzanine Premises: |
|  | From the Rent Commencement Date through the day preceding the fifth (5<sup>th</sup>) anniversary of the Rent Commencement Date, the sum of $46,900.00 ($50.00 per rentable square foot per annum); |
|  | From the fifth (5<sup>th</sup>) anniversary of the Rent Commencement Date through the day preceding the tenth (10<sup>th</sup>) anniversary of the Rent Commencement Date, the sum of $50,099.00 ($53.41 per rentable square foot per annum). |
| <br>Additional Rent: | From the tenth (10<sup>th</sup>) anniversary of the Rent Commencement Date through the Expiration Date, the sum of $53,297.00 ($56.82 per rentable square foot per annum).<br>All charges and other sums payable by Tenant as set forth in this Lease, other than and in addition to Annual Fixed Rent. |
| Tenant's Share: | 27.73% with respect to Operating Expenses and 12.91% with respect to Taxes (each subject to adjustment as provided in Section 2.1). |
| Security Deposit: | $6,037,193.00 (subject to reduction and the other provisions set forth in Section 20.22). |
| Brokers: | None. |

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------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ENUMERATION OF EXHIBITS</u>. The following Exhibits are a part of this Lease, are incorporated herein by reference, attached hereto, and are to be treated as a part of this Lease for all purposes. Undertakings contained in such Exhibits are agreements on the part of Landlord and Tenant, as the case may be, to perform the obligations stated therein.

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| | |
|:---|:---|
| Exhibit A | Description of the Land. |
| Exhibit B-1 | Floor Plans of Office Premises. |
| Exhibit B-2 | Floor Plans of Mezzanine Premises. |
| Exhibit C | Work Letter. |
| Exhibit D | Landlord's Services. |
| Exhibit E | Rules and Regulations. |
| Exhibit F | Alteration Rules & Regulations & Design Guidelines. |
| Exhibit G-1 | Form of Letter of Credit. |
| Exhibit G-2 | Form of Guaranty. |
| Exhibit H | Form of Lease Amendment. |
| Exhibit I | Delivery Conditions. |
| Exhibit J | Base Building Conditions. |
| Exhibit K | Form of Access Date Agreement. |
| Exhibit L | Form of Rent Commencement Date Agreement. |
| Exhibit M | Expansion Space. |
| Exhibit N | Intentionally Omitted. |
| Exhibit O | Tenant's Specialty Alterations. |
| Exhibit P | Intentionally Omitted. |
| Exhibit Q | Signage Restrictions. |
| Exhibit R | Intentionally Omitted. |
| Exhibit S | Intentionally Omitted. |
| Exhibit T | Form of Subordination and Nondisturbance Agreement. |

---

------

---

| | | |
|:---|:---|:---|
| Exhibit U | -- | Form of Memorandum of Lease. |
| Exhibit V | -- | Intentionally Omitted. |
| Exhibit W | -- | List of Special Masters. |
| Exhibit X | -- | Expansion Space Delivery Conditions. |
| Exhibit Y | -- | Conduit/Riser Space. |
| Exhibit Z | -- | License Area. |
| Exhibit AA | -- | Approved Contractors. |
| Exhibit BB | -- | Form of Lien Waiver. |
| Exhibit CC | -- | Elevator Specifications. |
| Exhibit DD | -- | Building Security Specifications. |
| Exhibit EE | -- | Tenant's Additional Costs Items For Base Building Work. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>OTHER</u>. The following additional terms, wherever in this Lease (unless the context requires otherwise), shall have the respective meanings specified in the Sections of this Lease set forth below after such Terms:

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| | |
|:---|:---|
| "10<sup>th</sup> Floor Work" | Section 8.1 |
| "AAA" | Section 6.2 |
| "Abatement Notice" | Section 20.16 |
| "Access Date" | Section 3.1 |
| "Additional Insureds" | Section 11.7 |
| "Adjustment Date": | Section 8.1 |
| "Affiliate" | Section 13.1 |
| "Alterations" | Section 8.1 |
| "Alteration Threshold": | Section 8.1 |
| "Antenna" | Section 27 |
| "Annual Fixed Rent" | Section 1.2 |
| "Applicable Permanent Reduction Amounts" | Section 5.1 |
| "Applicable Reduction Amounts" | Section 5.1 |
| "Approved Contractors" | Section 8.3 |
| "Arbiter" | Section 6.2 |
| "As-Built Measurement" | Section 2.1 |
| "ATM Use" | Section 10.2 |
| "Attornment Event" | Section 13.16 |
| "available for leasing" | Section 23.3 |
| "Average Rate" | Section 16.1 |
| "Base Building" | Exhibit C |

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------

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| | |
|:---|:---|
| "Base Building Conditions" | Section 4.1 |
| "Base Building Delivery Date" | Section 4.1 |
| "Base Building Restoration" | Section 12.2 |
| "Base Operating Expenses" | Section 6.2 |
| "Base Tax Year" | Section 6.1 |
| "Base Taxes" | Section 6.1 |
| "Benefits" | Section 20.32 |
| "Bike Spaces" | Section 7.7 |
| "Bike Storage Room" | Section 7.7 |
| "Building Generator System" | Section 4.1 |
| "Building HVAC System" | Exhibit D |
| "Building Office Space": | Section 6.2.2 |
| "Competing Signage" | Section 25.2 |
| "Condenser Water Fee" | Exhibit D |
| "Contribution Requisition Period" | Exhibit C |
| "CPI" | Section 6.2 |
| "Date of the taking" | Section 12.6 |
| "Delivery Conditions" | Section 4.1 |
| "Delivery Date" | Section 23.1 |
| "Determined Fair Market Rent" | Section 21.2 |
| "Due date" | Section 5.4 |
| "Electricity Provider" | Section 16.1 |
| "Eligible Sublease" | Section 13.16 |
| "Eligible Subtenant" | Section 13.16 |
| "Estimate" | Section 12.1 |
| "Event of Default" | Section 19.1 |
| "Excess Operating Expenses" | Section 6.2 |
| "Excluded Items" | Section 6.1.1 |
| "Existing Mortgage" | Section 17.1 |
| "Existing Mortgagee" | Section 17.1 |
| "Expansion Annual Fixed Rent" | Section 26.1 |
| "Expansion Delivery Date" | Section 26.1 |
| "Expansion Landlord's Contribution" | Section 26.1 |
| "Expansion Notice" | Section 26.1 |
| "Expansion Option" | Section 26.1 |
| "Expansion Outside Delivery Date" | Section 26.1 |
| "Expansion Rent Commencement Date" | Section 26.1 |
| "Expansion Rent Concession Period" | Section 26.1 |
| "Expansion Space" | Section 26.1 |
| "Expansion Space Delivery Conditions" | Section 26.1 |
| "Extended Term" | Section 21.1 |
| "Extension Option" | Section 21.1 |
| "Estimated Delivery Date" | Section 23.1 |
| "Fair Market Rent" | Section 21.3 |
| "Fair Market Rent Proposal" | Section 21.3 |
| "Final BB Date" | Section 5.5 |

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| | |
|:---|:---|
| "Final Date" | Section 3.1 |
| "Fire Stairs" | Section 2.2 |
| "First Class Buildings" | Section 7.1 |
| "First BB Penalty Date" | Section 5.5 |
| "First Landlord Delay Outside Date" | Section 4.1 |
| "First Penalty Date" | Section 3.1 |
| "First Reduction Date" | Section 20.22 |
| "First Reduction Period" | Section 20.22 |
| "First Rental Period" | Section 1.2 |
| "Force Majeure" | Section 14.3 |
| "GAAP" | Section 6.2 |
| "Hazardous Substance" | Section 10.6 |
| "HVAC" | Exhibit D |
| "Initiating Party" | Section 21.3 |
| "ISO" | Section 11.3 |
| "Kitchen" | Section 10.2 |
| "Kitchen Exhaust System" | Section 10.2 |
| "Labor Disruption" | Section 8.5 |
| "Land" | Section 2.1 |
| "Landlord Delay" | Section 4.1 |
| "Landlord Parties" | Section 11.12 |
| "Landlord's Anticipated Access Date" | Section 3.1 |
| "Landlord's Contribution" | Exhibit C |
| "Landlord's Estimate" | Section 6.2.2 |
| "Landlord's Non-Disturbance Agreement" | Section 13.16 |
| "Landlord's Repair Conditions" | Section 2.2 |
| "Landlord's Statement": | Section 6.2.2 |
| "Lease Interest Rate" | Section 5.4 |
| "Lease Term" | Section 3.1 |
| "Leasehold Improvement Payment" | Section 13.3 |
| "Letter" | Section 20.22 |
| "Letter of Credit" | Section 20.22 |
| "License" | Section 22.1 |
| "License Area" | Section 22.1 |
| "License Area Plans" | Section 22.3 |
| "License Term" | Section 22.1 |
| "Lien" | Section 8.4 |
| "Major Casualty" | Section 12.1 |
| "Mezzanine Premises" | Section 2.1 |
| "Mezzanine Premises Work" | Section 8.1 |
| "Minimum Rating" | Section 20.22 |
| "Mortgage" | Section 17.1 |
| "Mortgagee" | Section 17.1 |
| "notice" | Section 20.9; Exhibit C |
| "OFAC" | Section 20.26 |
| "Offer Notice" | Section 13.3 |

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| | |
|:---|:---|
| "Offer Response Notice" | Section 23.2 |
| "Offered Space" | Section 23.1 |
| "Offer Space FMV" | Section 23.2 |
| "Office Premises" | Section 2.1 |
| "Offset Amount" | Exhibit C |
| "Operating Days" | Exhibit D |
| "Operating Expenses" | Section 6.2 |
| "Operating Expense Statement" | Section 6.2.1 |
| "Operating Hours" | Exhibit D |
| "Operating Year" | Section 6.2 |
| "Original Tenant" | Section 13.1 |
| "Outside Date" | Section 3.2 |
| "Overlandlord" | Section 17.1 |
| "Overtime Service" | Exhibit D |
| "Parking Garage" | Section 7.6 |
| "Parking Garage Spaces" | Section 7.6 |
| "Partial Year Fraction": | Section 6.2.2 |
| "Permitted Affiliate" | Section 13.1 |
| "Permitted Use" | Section 10.1 |
| "Plans and Specifications" | Exhibit C |
| "Predecessor Tenants" | Section 13.15 |
| "Premises" | Section 2.1 |
| "Premises Light Fixtures" | Section 16.4 |
| "Prohibited Person" | Section 20.26 |
| "Property" | Section 6.1.1(g) |
| "Proration Date": | Section 6.2.2 |
| "Punch List Items" | Section 3.1 |
| "Qualified Appraiser" | Section 21.3 |
| "rent" | Section 5.3 |
| "Rent Concession Period" | Section 5.5 |
| "Rent Commencement Date" | Section 5.5 |
| "rentable square footage" | Section 2.1 |
| "Replacement Letter" | Section 20.22 |
| "Responding Party" | Section 21.3 |
| "ROFO Election Notice" | Section 23.1 |
| "ROFO Notice" | Section 23.1 |
| "ROFO Offer" | Section 23.1 |
| "ROFO Space" | Section 23.1 |
| "RSF" | Section 2.1 |
| "Rules and Regulations" | Section 20.13 |
| "Second BB Penalty Date" | Section 5.5 |
| "Second Landlord Delay Outside Date" | Section 4.1 |
| "Second Penalty Date" | Section 3.1 |
| "Second Reduction Date" | Section 20.22 |
| "Second Reduction Period" | Section 20.22 |
| "Second Rental Period" | Section 1.2 |

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------

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| | |
|:---|:---|
| "Second Scaffolding Removal Outside Date" | Section 4.1 |
| "Signage" | Article 25 |
| "Space Occupant" | Section 13.1 |
| "Space Occupant Notice" | Section 13.1 |
| "Special Use Area" | Section 12.2 |
| "Specialty Alterations" | Section 8.1 |
| "Subsequent Premises Lease" | Section 20.17 |
| "Substantially Complete" | Section 3.1 |
| "Supporting Documentation": | Section 6.1.2 |
| "Tax Excess" | Section 6.1 |
| "Taxes" | Section 6.1 |
| "Tax Bills": | Section 6.1.2 |
| "Tax Expenses" | Section 6.1 |
| "Tax Proceeding": | Section 6.1.3 |
| "Tax Statement": | Section 6.1.1 |
| "Tax Year" | Section 6.1 |
| "Tenant BMS" | Exhibit C |
| "Tenant Delay" | Section 4.1 |
| "Tenant Exculpated Parties" | Section 20.28 |
| "Tenant Parties" | Section 11.12 |
| "Tenant's Architect" | Exhibit C |
| "Tenant's Cost" | Exhibit C |
| "Tenant's Operating Payment" | Section 6.2.2 |
| "Tenant's Property" | Section 8.6 |
| "Tenant's Signage" | Article 25 |
| "Tenant's Tax Payments" | Section 6.1.2 |
| "Tenant's Work" | Exhibit C |
| "Tenant Work Delay" | Section 4.1 |
| "Termination Effective Date" | Section 24 |
| "Third Qualified Appraiser" | Section 21.3 |
| "Third Rental Period" | Section 1.2 |
| "Third Scaffolding Removal Outside Date" | Section 4.1 |
| "Tolling Period" | Section 23.1 |
| "Transfer Notice" | Section 13.2 |
| "Underlying Lease" | Section 17.1 |
| "Work Letter" | Exhibit C |

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<u>ARTICLE 2</u>

<u>PREMISES</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>DEMISE -- PREMISES</u>. Landlord hereby demises and leases to Tenant, and Tenant hereby takes and hires from Landlord, a portion of the Building erected on the land (the "Land") more particularly described in Exhibit A hereto, which portion of the Building includes (a) the entire ninth (9<sup>th</sup>) and a portion of the tenth (10<sup>th</sup>) floors of the Building, as depicted in the floor plans annexed hereto as Exhibit B-1 (the "Office Premises") and (b) a portion of the mezzanine of the Building, as depicted in the floor plans annexed hereto as Exhibit B-2 (the "Mezzanine Premises" and together with the Office Premises, collectively, the "Premises"), for the term hereinafter stated, for the rent hereinafter reserved and upon and subject to the covenants, agreements, terms, conditions, limitations, exceptions and reservations contained in this Lease. Landlord and Tenant acknowledge that the rentable square footage of the Premises and the calculation of Annual Fixed Rent, Tenant's Share, the Security Deposit and Landlord's Contribution set forth in Section 1.2 and Exhibit C reflect current estimates and that such amounts shall be amended based on a re-measurement pursuant to the following sentence; provided, that if the Premises, as so re-measured, shall exceed 74,590 rentable square feet, then, for purposes of calculating Annual Fixed Rent, Tenant's Share, the Security Deposit and Landlord's Contribution, the rentable square footage of the Premises shall be deemed to constitute 74,590 rentable square feet. Within thirty (30) days after completion of Tenant's Work, the rentable square footage of the Premises and the Building shall be physically measured by Landlord's architect (provided such architect is reasonably acceptable to Tenant) based on as-built conditions (the "As-Built Measurement"), and the written results thereof shall be delivered to Landlord and Tenant (with industry standard explanation as stated in the last sentence of this Section 2.1) and, in any event, the rentable square footage of the Building shall be determined in a manner consistent with the method used to determine the current estimates of Tenant's Share as set forth herein. Promptly after the rentable area of the Building and Premises is determined as provided by the preceding sentence, Landlord and Tenant shall execute an amendment to this Lease stating the rentable square footage of the Premises, Annual Fixed Rent, Tenant's Share, the Security Deposit and Landlord's Contribution (and any other amounts and/or percentages set forth in this Lease that are appropriate to adjust in connection with the re-measurement) based on the As-Built Measurement, which amendment shall be substantially in the form of Exhibit H attached hereto, provided that (i) the calculation of Tenant's Share shall not include any portion of the Mezzanine Premises (or the License Area) in the numerator and (ii) the failure to execute such amendment shall not affect the amendment to the rentable square footage of the Premises, Annual Fixed Rent, Tenant's Share, the Security Deposit and Landlord's Contribution, or any of the other rights or obligations of the parties under this Lease. As used herein, "rentable square footage" or "RSF" shall mean the rentable area of the Building or any portion thereof, computed with respect to the entire Building in a manner consistent with the 1987 Real Estate Board of New York standard method of floor measurements for usable square footage on single tenant and multi-tenant floors, and applying a twenty-seven percent (27%) full floor loss factor (<u>i.e.</u>, dividing usable area by 0.73). Notwithstanding anything to the contrary contained in this Lease, except in connection with the physical measurement of the rentable square footage of the Premises and the Building pursuant to the express terms of this Section 2.1, Tenant shall have no right whatsoever to approve or disapprove of Landlord's architect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>APPURTENANT RIGHTS AND RESERVATIONS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall have, as appurtenant to the Premises, the non-exclusive right to use in common with others, subject to the Rules and Regulations, as may be revised in accordance with the provisions of Section 20.13: (i) the common lobbies, corridors, stairways and elevators and other public and common portions of the Building and (ii) subject to the provisions of Article 8 and Exhibit C hereof, conduit/riser space for the connection of Tenant's telecommunication systems as set forth in Exhibit Y.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall have a non-exclusive right to use the fire stairwells serving the Premises (the "Fire Stairs") for the sole purpose of access between the floors of the Building on which the Premises are located, at no additional rental charge to Tenant, provided that (1) such use shall be permitted by, and at all times in accordance with, all applicable legal requirements; (2) Tenant obtains all necessary governmental and regulatory approvals for the use of the Fire Stairs; (3) Tenant shall comply with all of Landlord's reasonable rules and regulations adopted from time to time with respect thereto provided no such rules or regulations shall be enforced in a discriminatory fashion against Tenant or adversely impact Tenant's rights hereunder; (4) Tenant shall not permit access doors to the Fire Stairs to be propped or blocked open; (5) Tenant shall not store anything in the Fire Stairs or otherwise impede ingress thereto or egress therefrom; (6) Tenant shall not permit or suffer any of its employees, agents or contractors to use any portion of the Fire Stairs other than for ingress and egress between the different floors of the Premises, except in case of emergency, and shall be responsible for using reasonable efforts to assure that Tenant's employees do not use the Fire Stairs for loitering or any other purpose other than ingress and egress between the different floors of the Premises and use in the event of a fire or other emergency; (7) Landlord shall, at its sole cost and expense, (i) install self-closing doors reasonably satisfactory to Landlord on all doors in accordance with legal requirements between the Fire Stairs and the floors of the Premises (provided, however, in lieu of self-closing doors, Landlord may install, at Landlord's election (unless required by applicable legal requirements, in which case Landlord shall install same) and sole cost and expense, automatic door closing devices reasonably satisfactory to Landlord and Tenant); and (ii) tie such devices into the base Building fire alarm and life safety system; (8) subject to applicable reentry rules and regulations from time to time in effect, Tenant shall, at its sole cost and expense, install a key card locking system reasonably satisfactory to Landlord on all doors between the Fire Stairs and the floors of the Premises; and (9) Tenant shall tie Tenant's security system into the Building security system so that, among other things, the Building security system can distinguish between an authorized entry into the Fire Stairs by one of Tenant's employees and an unauthorized entry by another party. Tenant shall provide Landlord with a "master" card key so that Landlord shall have access through each entry door which access may only be exercised in accordance with the terms of this Lease. Tenant shall be solely responsible for the operation of the locking system on the doors from the Fire Stairs to the Premises and hereby waives any and all claims against Landlord arising out of or in connection with parties gaining access to and from the Premises through the Fire Stairs, except to the extent any such claims arise as a direct result of the gross negligence or willful misconduct of any Landlord Party. All of the provisions of this Lease in respect of insurance and indemnification shall apply to the Fire Stairs, as if same were part of the Premises. Tenant may paint the Fire Stairs and install graphics (but not wallpaper), railings and light fixtures therein and make such other Alterations as Landlord shall approve, which approval may not be unreasonably withheld, delayed or conditioned, but shall otherwise be governed by the applicable the terms of this Lease (including, without limitation, Article 8 hereof). Tenant shall be responsible for any reasonable additional cleaning costs (relative to what the costs would have been if Tenant were not using the Fire Stairs as convenience stairs), if any, with respect to the use of the Fire Stairs by Tenant, to the extent cleaning is performed by Landlord. Tenant's right to use the Fire Stairs as contemplated by this Section 2.2(b) shall apply only with respect to contiguous floors and only during the period that this Lease demises contiguous floors.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp; Landlord reserves the right from time to time: (i) to install, use, maintain, repair, replace and relocate, for service to the Premises and/or other parts of the Building, shafts, pipes, ducts, conduits, wires, risers and other facilities and appurtenant fixtures, in the Premises or in other parts of the Building, and (ii) to alter or relocate other common facilities, whether located in the Premises or in other parts of the Building; provided that, with respect to clauses (i) and (ii), the following conditions (the "Landlord's Repair Conditions") shall apply: (A) any replacements, substitutions or alterations are substantially equivalent to or better than then existing facilities, (B) installations, replacements and relocations shall be located so far as practicable in the central core area of the Building, above ceiling surfaces, below floor surfaces, within perimeter walls of the Premises or otherwise in boxed enclosures, and shall in no event, interfere, except to a *de minimis* extent, with Tenant's use of the Premises, as used prior to any such contemplated installation, replacement or relocation, (C) all such work within the Premises shall be performed at such times and in such manner, as to create the least practicable interference with Tenant's use of the Premises, it being understood that the foregoing shall in no event obligate Landlord to do such work on an "overtime" basis unless such work will unreasonably interfere with the ordinary conduct of Tenant's business in the Premises, provided, however, that Landlord shall not be required to perform such work on an "overtime" basis to the extent that such work was requested by Tenant (unless Tenant agrees to pay to Landlord, as Additional Rent hereunder, within thirty (30) days after Landlord's written demand therefor, an amount equal to the difference between the regular rates and the overtime or other premium pay rates for labor and any other overtime costs or expenses incurred, as reasonably evidenced in Landlord's written demand), and (D) no such work shall reduce the rentable square footage of the floor area or the floor-to-ceiling height of the Premises by more than a *de minimis* amount. Except in the case of emergencies, Landlord agrees to give Tenant reasonable advance notice of any of the foregoing activities which require work in the Premises.

<u>ARTICLE 3</u>

<u>LEASE TERM</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ACCESS DATE</u>. The term of this Lease and the estate hereby granted (the "Lease Term") shall commence on the date upon which Landlord delivers written notice to Tenant that the Premises are available for Tenant, provided the Premises are delivered to Tenant with the Delivery Conditions Substantially Complete and so as to allow Tenant access to the Premises (and the License Area) such that Tenant is able to perform Tenant's Work, and such date is hereinafter called the "Access Date". The Delivery Conditions shall be deemed to be "Substantially Complete" on the date that Landlord's licensed architect shall certify that all Delivery Conditions have been completed, other than any minor details of construction, mechanical adjustment or any other similar matter, the non-completion of which does not interfere, except in an immaterial way, with Tenant's use of the Premises (including the License Area) or the performance by Tenant of Tenant's Work, as the case may be (the "Punch List Items"), provided, however, nothing contained herein shall be deemed to impair Tenant's ability to dispute the validity of the certification by Landlord's architect indicating that the Delivery Conditions are in fact Substantially Complete. At such time as the Delivery Conditions are Substantially Complete, Tenant and Landlord shall conduct a joint inspection of the Premises (and the License Area) at a time reasonably acceptable to Landlord and Tenant to confirm that the Delivery Conditions are Substantially Complete and to agree upon Punch List Items (and any disputes in connection therewith shall be resolved pursuant to the express provisions of Section 4.4 below). Landlord shall correct and/or complete all Punch List Items with reasonable diligence but, in any event, within ninety (90) days after Substantial Completion of the Delivery Conditions. Landlord shall use commercially reasonable efforts to (a) cause the Access Date to occur on or prior to June 30, 2017 (the "Landlord's Anticipated Access Date") and (b) following the Access Date, avoid any interference with or delay to the performance of Tenant's Work except in an immaterial way. If (1) the Access Date does not occur on or before the date (the "First Penalty Date") which is sixty (60) days following Landlord's Anticipated Access Date, which date shall be extended by reason of Tenant Delay or Force Majeure (but not by more than sixty (60) days on account of Force Majeure), the Rent Concession Period and the Contribution Requisition Period shall each be increased by one (1) additional day for each day after the First Penalty Date (as the same may have been so extended) that the Access Date does not occur, (2) if such failure continues for sixty (60) days after the First Penalty Date (the "Second Penalty Date"), which date shall be extended by reason of Tenant Delay then, from and after such Second Penalty Date (as the same may have been so extended), the Rent Concession Period and the Contribution Requisition Period shall each be extended by an additional (0.5) day (i.e., 1.5 days in total) until the Access Date occurs, and (3) if such failure continues for sixty (60) days after the Second Penalty Date (the "Final Date"), which date shall be extended by reason of Tenant Delay or then, from and after such Final Date (as the same may have been so extended), the Rent Concession Period and the Contribution Requisition Period shall each be extended by an additional (0.5) day (i.e., 2 days in total) until the Access Date occurs.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>OUTSIDE DATE</u>. Except as otherwise set forth in the final sentence of this Section 3.2, the foregoing shall be Tenant's sole and exclusive remedy on account of the failure of the Access Date to occur. The foregoing is intended to be "an express provision to the contrary" under Section 223-a of the New York Real Property Law or any successor statute of similar import. If the Access Date does not occur on or before December 31, 2017 (the "Outside Date"), which date shall be extended by reason of Tenant Delay (but not on account of Force Majeure), Tenant shall have the right to terminate this Lease by giving notice to Landlord of Tenant's desire to do so within thirty (30) days after the Outside Date (as the same may have been so extended) and, upon the giving of such notice, this Lease shall terminate and be of no further force and effect except for those provisions that expressly survive a termination unless, within thirty (30) days after Landlord receives such notice, the Access Date shall occur. The parties agree that the Outside Date shall be deemed extended until December 31, 2018 effective upon (and only following) delivery by Tenant to Landlord of a written election to so extend such date, provided that Tenant shall not be obligated to deliver such election or so extend the Outside Date, and shall have the right to reject such extension in its sole and absolute discretion for any or no reason, and any failure to deliver such election prior to the then existing Outside Date shall be deemed a rejection of such extension. Notwithstanding anything to the contrary contained herein, the Outside Date shall be tolled and deemed extended by one day for each day any dispute resolutions procedures are continuing pursuant to Section 4.4 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EXPIRATION DATE</u>. Subject to any extensions of the Lease Term in accordance with the terms and conditions of Article 21, the Lease Term shall end on the day immediately preceding the fifteenth (15<sup>th</sup>) anniversary of the Rent Commencement Date, which ending date is hereinafter called the "Expiration Date", or shall end on such earlier date upon which the Lease Term may expire or be terminated pursuant to any of the conditions of limitation or other provisions of this Lease or pursuant to law. Notwithstanding the foregoing, if the Rent Commencement Date is other than the first day of a month, the Expiration Date shall be the last day of the calendar month in which the fifteenth (15<sup>th</sup>) anniversary of the Rent Commencement Date occurs.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>ACCESS DATE AGREEMENT</u>. As soon as may be convenient after the Access Date has been determined, Landlord and Tenant agree to join with each other in the execution of a written agreement, in the form of Exhibit K hereto, in which the Access Date shall be stated, but the failure by either party to so execute or deliver such agreement shall not in any way reduce the respective obligations or rights of Landlord or Tenant under this Lease.

<u>ARTICLE 4</u>

<u>COMPLETION OF THE PREMISES AND BASE BUILDING CONDITIONS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>PERFORMANCE OF WORK</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant has inspected the Premises, and the Premises are being leased without representation or warranty by Landlord, except as expressly provided in this Lease. Except for the satisfaction of the Delivery Conditions, Tenant acknowledges that any work necessary to prepare the Premises for Tenant's occupancy shall be performed solely by Tenant in accordance with the provisions of this Lease, including, without limitation, Exhibit C attached hereto. Notwithstanding anything to the contrary provided in this Lease, Landlord shall complete, correct or repair at its expense in a diligent manner any latent defects relating to the condition of the Premises at the time possession is delivered to Tenant (including systems that cannot practically be tested by Tenant on the Access Date but excluding any defects whatsoever with respect to Tenant's Work and/or any Alterations by Tenant), provided that Tenant shall have notified Landlord of the same not later than the first (1st) anniversary of the Base Building Delivery Date (including any failure of any Building system to perform in accordance with the performance specifications set forth in the Work Letter); it being agreed, however, that the foregoing provisions of this <u>Section 4.1(a)</u> shall not derogate any of the repair obligations of Landlord expressly set forth in this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to and in accordance with Section 10.6(b), Landlord represents, warrants and covenants that, on the Access Date, (i) the Premises shall be free of Hazardous Substances which would violate applicable laws or governmental regulations and (ii) the Premises and the Building shall be free of noted violations of law or governmental regulations which would prevent Tenant from obtaining permits for, or performing, Tenant's Work. On or prior to the Access Date, Landlord shall deliver to Tenant a Department of Buildings ACP-5 (Not an Asbestos Project) form for the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord, at Landlord's sole cost and expense, shall satisfy the conditions set forth on Exhibit I attached hereto (the "Delivery Conditions") with respect to the Premises and License Area prior to the Access Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord, at Landlord's sole cost and expense, shall satisfy the conditions set forth on Exhibit J attached hereto (the "Base Building Conditions") with respect to the Building (the date upon which Landlord satisfies the Base Building Conditions, as certified by Landlord's architect, the "Base Building Delivery Date").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Landlord is actually delayed in the performance of the Delivery Conditions and/or the Base Building Conditions as a result of the acts or omissions of Tenant, the Tenant Parties or their respective contractors or vendors, including, without limitation, changes requested by Tenant to approved plans, Tenant's failure to comply with any of its obligations under this Lease, or the specification by Tenant of any materials or equipment used in the performance of Landlord's Work with long lead times (a "Tenant Delay"), then the Delivery Conditions and/or Base Building Conditions shall be deemed to be complete on the date that Landlord would reasonably have been expected to complete the Delivery Conditions and/or Base Building Conditions absent any such Tenant Delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If, from and after the Access Date, Tenant is actually delayed in either (x) the performance of Tenant's Work or (y) following the completion of Tenant's Work in accordance with the express terms and conditions of this Lease, obtaining a temporary or permanent certificate of occupancy permitting the use and occupancy of the Office Premises and Mezzanine Premises for the uses expressly permitted by Section 10.1 below, in each case, as a direct result of (i) Landlord's breach of Section 2.2(b)(7), 4.1(a), 4.1(b), 4.1(i), 7.1, 7.4, 8.1(e), 8.1 (last sentence), 8.3(b), 8.3(d) (last two sentences), 9.1, 10.6.(b), 10.7, 11.15, 12.2, 12.7(b) or 16.5 (second sentence) of this Lease and/or Paragraph 3 (third sentence), 4 (fourth sentence), 6, 7 or 8 (first sentence) of Exhibit C attached to this Lease, (ii) any violations issued by the Department of Buildings of The City of New York or any other public or quasi-public authority having jurisdiction with respect to the Delivery Conditions and the Base Building Conditions, or (iii) the negligence or willful misconduct of any Landlord Party (a "Landlord Delay") then without limiting Tenant's rights to terminate this Lease pursuant to and in accordance with Section 3.2, (1) if Tenant is so delayed in performing Tenant's Work by reason of any Landlord Delay (any such delay a "Tenant Work Delay"), then the Rent Concession Period and the Contribution Requisition Period shall each be increased by one (1) additional day for each day that such Tenant Work Delay continues, (2) if such Tenant Work Delay continues for a period exceeding sixty (60) days in the aggregate (the last day of such 60-day period, the "First Landlord Delay Outside Date"), then, from and after the First Landlord Delay Outside Date, the Rent Concession Period and the Contribution Requisition Period shall each be extended by an additional (0.5) day (i.e., 1.5 days in total) day for each day after the First Landlord Delay Outside Date that such Tenant Work Delay continues, and (3) if such failure continues for a period exceeding one hundred twenty (120) days in the aggregate (the last day of such 120-day period, the "Second Landlord Delay Outside Date"), then, from and after the Second Landlord Delay Outside Date, the Rent Concession Period and the Contribution Requisition Period shall be extended by an additional (0.5) day (i.e., 2 days in total) for each day after the Second Landlord Delay Outside Date that such Tenant Work Delay continues. Notwithstanding the foregoing, no claim of Landlord Delay shall be valid unless and until the date on which Tenant delivers written notice thereof to Landlord and Landlord fails to cure such act or omission within one (1) Operating Day; provided, however, if Landlord fails to cure such act or omission within one (1) Operating Day then such Landlord Delay shall be deemed to have commenced on the date on which Tenant delivered written notice thereof to Landlord but only if such Landlord Delay persists for one (1) Operating Day following delivery of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Landlord and Tenant hereby agree to reasonably cooperate to the extent reasonably necessary to allow Landlord to timely complete the Base Building Conditions and to allow Tenant to timely complete Tenant's Work.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In connection with any work performed by Landlord with respect to the Delivery Conditions, Base Building Conditions and the current redevelopment of the Property, if any temporary sidewalk bridges and/or scaffolding shall be used at the Building affecting the access, use or enjoyment of the Premises, each such use shall be made with due regard for Tenant's business being conducted at the Premises and so as to minimize any material adverse impact or unreasonable disruption to Tenant's business at the Premises and Tenant's access use and enjoyment of the Premises. Landlord shall use commercially reasonable efforts, subject to the rules of the Department of Buildings, site-safety approvals and applicable laws, regulations, municipal codes and/or requirements, to remove all such temporary sidewalk bridges and/or scaffolding within nine (9) months following the Base Building Delivery Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord shall connect the base building equipment expressly listed on Exhibit J attached hereto to the Building's emergency generator system (the "Building Generator System"); provided, however, Tenant shall pay to Landlord the incremental costs actually incurred by Landlord in connection with the performance of such work and the additional capacity required in connection with such additional connections within thirty (30) days following Landlord's written invoice and demand therefor, provided, however, that notwithstanding the foregoing, Landlord shall be responsible for all costs of connections and hookups as expressly set forth on Schedule A of Exhibit J attached hereto. Landlord shall maintain and repair the Building Generator System in a manner consistent with First Class Buildings and Tenant shall pay to Landlord, within thirty (30) days following Landlord's written invoice and demand therefor, Tenant's Share of the out-of-pocket costs reasonably and actually incurred by Landlord in connection therewith. To the extent reasonably practicable and at Tenant's sole cost and expense, Landlord shall use commercially reasonable efforts to operate the Building Generator System during such periods of power outages that Tenant desires to occupy the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>QUALITY AND PERFORMANCE OF WORK</u>. All construction work required or permitted by this Lease shall be done in a good and workmanlike manner and in compliance with all applicable laws and requirements of public authorities and insurance bodies related to, or arising out of the performance of, such construction work. Each party may inspect the work of the other at reasonable times, and the Construction Representative of each party shall promptly give notice of any approvals and other actions on the party's behalf required to be given in connection with design and construction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD'S CONTRIBUTION</u>. Landlord agrees to pay to Tenant, as a contribution towards Tenant's Cost (as defined in Exhibit C), Landlord's Contribution (as defined in Exhibit C), subject to the terms and conditions of Exhibit C.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>DISPUTE RESOLUTION</u>. In the event of any dispute between Landlord and Tenant concerning (a) the existence or duration of any Tenant Delay or Landlord Delay, as the case may be, (b) the date of satisfaction of the Delivery Conditions and/or the Base Building Conditions (including, without limitation, the validity of the certification of Landlord's architect in connection therewith), (c) whether Landlord is justified in withholding any disbursement of Landlord's Contribution under Section 7 of Exhibit C or (d) whether an event constitutes Force Majeure, such dispute, in any such case, shall be determined by a special master to be selected in the order of priority set forth on Exhibit W attached hereto (or as otherwise expressly set forth herein), whose decision (based on good faith, professional standards) shall be binding on the parties and whose fees for such service shall be borne equally by Landlord and Tenant. All such disputes shall be expedited such that (i) to the extent reasonably practicable, the parties and the special master shall meet within ten (10) Operating Days following receipt of written notice of such dispute, (ii) each party shall have no more than a total of one (1) hour to present its case, one (1) hour to question persons supplying information or documentation on behalf of the other party, and one (1) hour to summarize in a closing statement such party's case with such additional time that the special master may grant to either or both parties, and (iii) the special master shall make a determination within three (3) Operating Days after the conclusion of the presentation of Landlord's and Tenant's cases. Each of the special masters listed on Exhibit W attached hereto shall be deemed to be acceptable to Tenant and Landlord so long as such special masters have not been engaged by either Landlord or Tenant, or their respective construction consultants, general contractor, architect and/or engineer, within the two (2) years immediately preceding such dispute. In the event none of the special masters listed on Exhibit W are available (or acceptable pursuant to the immediately preceding sentence), either party may propose a special master in writing delivered to the other. If the non-proposing party does not respond to the proposing party's choice of special master within five (5) Operating Days after receipt of the proposal, the proposed special master shall be deemed to be approved for purposes of resolving the applicable dispute. If Landlord and Tenant cannot agree to a special master (to the extent not listed on Exhibit W), such special master shall be chosen in the same manner as the Arbiter shall be chosen pursuant to Section 20.2 below.

<u>ARTICLE 5</u>

<u>ANNUAL FIXED RENT AND ADDITIONAL RENT</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>FIXED RENT</u>. (a) Tenant agrees to pay to Landlord on the Access Date (but subject to the provisions of Section 5.1(b), Section 5.2 and Section 5.5 hereof) and thereafter monthly, in advance, on the first day of each and every calendar month during the Lease Term, a sum equal to one twelfth of the Annual Fixed Rent specified in Section 1.2 hereof in lawful money of the United States, without any set-off or deduction whatsoever, except as expressly provided in this Lease. Until notice of some other designation is given, Annual Fixed Rent and all other charges for which provision is herein made shall be paid by remittance to or to the order of Landlord. All remittances by Tenant shall be drawn on a member bank of The Clearing House Association, or, at Tenant's election, by wire transfer of immediately available funds as directed by Landlord.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Annual Fixed Rent shall be separately payable by Tenant with respect to the License Area, provided, however, that (i) if at any time during the Lease Term, Tenant permanently loses the right to use, or is prevented from using, the License Area for the Permitted Uses with respect thereto, as a result of a change in applicable legal requirements, any determination by any governmental authority or any cause within Landlord's reasonable control (including, without limitation, Landlord's failure to cause Landlord's architect to cooperate with Tenant (and Tenant's Architect) pursuant to and in accordance with the express terms and provisions of Section 9.1 hereof), then, provided such inability to use the License Area is not caused by Tenant (including Tenant's particular manner of use of the Premises other than for the Permitted Uses), the Annual Fixed Rent for the Office Premises shall be reduced by (x) with respect to the First Rental Period, $440,000.00 ($6.58 per rentable square foot per annum or, if the Expansion Space is added, $5.14 per rentable square foot per annum), (y) with respect to the Second Rental Period, $470,000.00 ($7.03 per rentable square foot per annum or, if the Expansion Space is added, $5.49 per rentable square foot per annum) and (z) with respect to the Third Rental Period, $500,000 ($7.48 per rentable square foot per annum or, if the Expansion Space is added, $5.85 per rentable square foot per annum) (the amounts set forth in subdivisions (x), (y) and (z) of this clause (i), the "Applicable Permanent Reduction Amounts"), (ii) if at any time during the Lease Term, Tenant temporarily loses the right, for more than thirty (30) days, to use a portion of the License Area consisting of (1) the tennis court contemplated to be installed on the roof of the Building and/or (2) greater than one third of the terrace on the ninth (9<sup>th</sup>) floor of the Building for the Permitted Uses with respect thereto, whether as a result of a change in applicable legal requirements, any determination by any governmental authority or any cause within Landlord's reasonable control (including, without limitation, Landlord's failure to cause Landlord's architect to cooperate with Tenant (and Tenant's Architect) pursuant to and in accordance with the express terms and provisions of Section 9.1 hereof), then, provided such inability to use the License Area is not caused by Tenant (including Tenant's particular manner of use of the Premises other than for the Permitted Uses), for each day during the period during which Tenant is so prevented from using the License Area after such thirty (30) day period, Tenant shall receive an abatement of Annual Fixed Rent for the Office Premises in an amount equal to (x) with respect to the First Rental Period, $1,205.48 per day ($6.58 per rentable square foot per annum or, if the Expansion Space is added, $5.14 per rentable square foot per annum, prorated on a per diem basis), (y) with respect to the Second Rental Period, $1,287.67 per day ($7.03 per rentable square foot per annum or, if the Expansion Space is added, $5.49 per rentable square foot per annum, prorated on a per diem basis) and (z) (x) with respect to the Third Rental Period, $1,369.86 per day ($7.48 per rentable square foot per annum or, if the Expansion Space is added, $5.85 per rentable square foot per annum, prorated on a per diem basis) (the amounts set forth in subdivisions (x), (y) and (z) of this clause (ii), collective with the Applicable Permanent Reduction Amounts, the "Applicable Temporary Use Reduction Amounts") and (iii) if at any time during the Lease Term, the Department of Buildings for the City of New York prohibits the use at all times (as distinct from imposing general time or date based restrictions) by Tenant of a temporary enclosure of portion of the License Area consisting of the tennis court contemplated to be installed on the roof of the Building, and Tenant does not actually construct or use any such temporary enclosure, then, provided such inability to use the License Area is not caused by Tenant (including Tenant's particular manner of use of the Premises other than for the Permitted Uses), for each day during the period during which Tenant is so prevented from using, and does not use, a temporary enclosure for the portion of the License Area consisting of the tennis court contemplated to be installed on the roof of the Building, Tenant shall receive an abatement of Annual Fixed Rent for the Office Premises in an amount equal to (x) with respect to the First Rental Period, $1,205.48 per day ($6.58 per rentable square foot per annum or, if the Expansion Space is added, $5.14 per rentable square foot per annum, prorated on a per diem basis), (y) with respect to the Second Rental Period, $1,287.67 per day ($7.03 per rentable square foot per annum or, if the Expansion Space is added, $5.49 per rentable square foot per annum, prorated on a per diem basis) and (z) (x) with respect to the Third Rental Period, $1,369.86 per day ($7.48 per rentable square foot per annum or, if the Expansion Space is added, $5.85 per rentable square foot per annum, prorated on a per diem basis) (the amounts set forth in subdivisions (x), (y) and (z) of this clause (iii), collective with the Applicable Permanent Reduction Amounts and the Applicable Temporary Use Reduction Amounts, the "Applicable Reduction Amounts").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>INTENTIONALLY OMITTED</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ADDITIONAL RENT</u>. All amounts over and above, or in addition to, the Annual Fixed Rent which are payable by Tenant to Landlord under the terms of this Lease or otherwise in connection with the use and occupancy of the Premises shall be deemed Additional Rent hereunder and shall be paid by Tenant in lawful money of the United States, without any set-off or deduction whatsoever (except as expressly provided in this Lease) and otherwise in the same manner as an installment of the Annual Fixed Rent as elsewhere provided in this Lease; and Landlord shall have all the rights and remedies in the event of the non-payment thereof as it would have had in the event of the non-payment of any installment of the Annual Fixed Rent. Tenant's obligation to pay any Annual Fixed Rent or any Additional Rent which shall have theretofore become due and payable shall survive the expiration or earlier termination of this Lease. The Annual Fixed Rent and Additional Rent are sometimes collectively referred to in this Lease as "rent." Rent for any partial months during the Lease Term shall be prorated on a per diem basis. Except as otherwise expressly set forth in this Lease, to the extent that Tenant shall fail to dispute any invoice for Additional Rent within one hundred eighty (180) days after receipt thereof, such invoice shall be conclusive and binding upon Tenant and Tenant shall be deemed to have waived any right to dispute the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>LATE PAYMENT</u>. If Landlord shall not have received any payment or installment of rent on or before the date (the "due date") on which the same first becomes payable under this Lease, the unpaid amount of such payment or installment shall bear interest from the due date through and including the date such payment or installment is received by Landlord, at a rate (the "Lease Interest Rate") equal to the lesser of (i) the rate announced by Citibank, N.A. or its successor from time to time as its prime or base rate, plus two percent (2%), or (ii) the maximum applicable legal rate, if any. Such interest shall be deemed Additional Rent and shall be paid by Tenant to Landlord upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>RENT CONCESSION</u>. Anything contained in this Article to the contrary notwithstanding, provided that this Lease has not been terminated on account of an Event of Default, Landlord hereby waives payment of Annual Fixed Rent for the period (the "Rent Concession Period") from and including the Access Date through and including the date preceding the date which is fifteen (15) months after the Access Date (the "Rent Commencement Date"). If the Rent Concession Period shall expire on a date other than the last day of a calendar month, then on the Rent Commencement Date, Tenant shall pay to Landlord a monthly installment of Annual Fixed Rent prorated to the end of said calendar month. Landlord shall use commercially reasonable efforts to cause the Base Building Delivery Date to occur on or prior to September 1, 2017. If Tenant has occupied and is operating the Premises for the conduct of its business and (1) the Base Building Delivery Date does not occur on or before December 1, 2017 (the "First BB Penalty Date"), which date shall be extended by reason of Tenant Delay or Force Majeure (but not by more than sixty (60) days on account of Force Majeure), the Rent Concession Period shall be increased by one (1) additional day for each day after the First BB Penalty Date (as the same may have been so extended) that the Base Building Delivery Date does not occur, (2) if such failure continues for sixty (60) days after the First BB Penalty Date (the "Second BB Penalty Date"), which date shall be extended by reason of Tenant Delay, then, from and after such Second BB Penalty Date (as the same may have been so extended), the Rent Concession Period shall be extended by an additional (0.5) day (i.e., 1.5 days in total) until the Base Building Delivery Date occurs, and (3) if such failure continues for sixty (60) days after the Second BB Penalty Date (the "Final BB Date"), which date shall be extended by reason of Tenant Delay, then, from and after such Final BB Date (as the same may have been so extended), the Rent Concession Period shall be extended by an additional (0.5) day (i.e., 2 days in total) until the Base Building Delivery Date occurs. The foregoing shall be Tenant's sole and exclusive remedy on account of the failure of the Base Building Delivery Date to occur. The foregoing is intended to be "an express provision to the contrary" under Section 223-a of the New York Real Property Law or any successor statute of similar import.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>RENT COMMENCEMENT DATE AGREEMENT</u>. As soon as may be convenient after the Rent Commencement Date and Base Building Delivery Date have been determined, Landlord and Tenant agree to join with each other in the execution of a written agreement, in the form of Exhibit L hereto, in which the Rent Commencement Date and the Expiration Date shall be stated, but the failure by either party to so execute or deliver such agreement shall not in any way reduce the respective obligations or rights of Landlord or Tenant under this Lease.

<u>ARTICLE 6</u>

<u>ESCALATION</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>TAX ESCALATION</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1&nbsp;&nbsp;&nbsp;&nbsp; <u>DEFINITIONS</u>. For the purposes of this Section 6.1, the following terms shall have the respective meanings set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "Taxes" shall mean the aggregate amount of (i) all real estate taxes, assessments (special or otherwise), sewer and water rents, rates and charges and any other governmental levies, impositions or charges, whether general, special, ordinary, extraordinary, or foreseen or unforeseen, which may be assessed, levied or imposed upon all or any part of the Property and (ii) any reasonable expenses (including reasonable attorneys' fees and disbursements and experts' and other witnesses' fees) incurred in contesting any of the foregoing or the Assessed Valuation of all or any part of the Property. If at any time after the Rent Commencement Date the methods of taxation prevailing as of the Rent Commencement Date shall be altered so that in lieu of or as an addition to or as an express substitute for the whole or any part of the taxes, assessments, rents, rates, charges, levies or impositions now assessed, levied or imposed upon all or any part of the Property, there shall be assessed, levied or imposed (A) a tax, assessment, levy, imposition or charge based on the rents received therefrom whether or not wholly or partially as a capital levy or otherwise, (B) a tax, assessment, levy, imposition or charge measured by or based in whole or in part upon all or any part of the Property and imposed upon Landlord, (C) a license fee measured by the rentals from the Property, or (D) any other tax, assessment, levy, imposition, charges or license fees imposed on the Property or the rentals therefrom, then all such taxes, assessments, levies, impositions, charges or license fees or the part thereof so measured or based shall be deemed to be Taxes for the Property; <u>provided</u>, <u>however</u>, that any such taxes, assessments, levies, impositions, fees, charges or like amounts which are in "addition to" taxes otherwise payable under this Section 6.1 shall only be deemed Taxes for the Property if such amounts shall generally be treated in other First Class Buildings as constituting real estate taxes for the purpose of calculating similar lease tax escalation provisions. The amount of any new tax, fee or charge that is includable as Taxes, as aforesaid, shall be calculated on the basis that the Property and all appurtenances thereto (including development rights) were the only assets of Landlord. Taxes for the Property shall in no event include any of the following items (collectively the "Excluded Items"): (1) personal property taxes and occupancy and rent taxes assessed against Landlord to the extent same are imposed on Landlord because Landlord or an Affiliate of Landlord is a tenant or occupant of the Building; (2) license and permit fees to the extent same are included in Operating Expenses; (3) any amounts included in the municipal, state or federal income taxes assessed against Landlord or Tenant, any capital levy, estate, gift, succession, inheritance or transfer taxes, or any corporate franchise taxes or unincorporated business taxes, income or profit tax, or any transfer or mortgage recording tax imposed upon any owner of the Land or the Building, or any part thereof, or capital levy that is or may be imposed upon the net income of Landlord; (4) any taxes or assessments directly imposed upon any sign attached to or located on the Land or the Building or signage required by any applicable legal requirements or on any revenue realized by Landlord as a result of such signage; or (5) any fines, penalties and other similar governmental charges applicable to the foregoing, together with any interest or costs with respect to the foregoing, incurred by reason of Landlord's failure to timely make any payments as herein provided on account thereof (unless Tenant has not timely paid Tenant's Tax Payment, in which event Tenant shall pay to Landlord Tenant's proportionate share (based on Tenant's Share of Taxes) of the amount of such penalties or late charges for which Tenant is responsible within thirty (30) days after demand therefor by Landlord with interest at the Lease Interest Rate from the date such penalty or late charges were incurred by Landlord until reimbursed by Tenant). If pursuant to any legal requirement, any amount that is included in Taxes may be divided and paid in installments (without any interest due thereon), then (x) such amount shall be deemed to have been so divided and to be payable in the maximum number of installments permitted by legal requirements to be paid, and (y) there shall be deemed included in Taxes for each Tax Year only the installments of such amount deemed to be payable during such Tax Year.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Tax Year" shall mean the Base Tax Year and each period from July 1 through June 30 after the Base Tax Year (or such other fiscal period as may hereafter be adopted by the City of New York as the fiscal year for any tax, levy or charge included in Taxes), any part or all of which occurs during the Lease Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Base Tax Year" shall mean the fiscal year commencing July 1, 2021 and ending June 30, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "Base Taxes" shall mean the actual Taxes for the Base Tax Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Tax Expenses" shall mean all reasonable out-of-pocket expenses, including, without limitation, reasonable attorney's fees and disbursements and experts' and other witnesses' fees, actually incurred by Landlord in seeking to reduce the amount of any assessed valuation of the Land and/or Building, in contesting the amount or validity of any Taxes, or in seeking a refund of Taxes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Tax Statement" shall mean a written notice from Landlord to Tenant containing the amount of Taxes and Tenant's Tax Payment for the applicable Tax Year. Landlord shall use reasonable efforts to include sufficient detail in any Tax Statement to allow Tenant to confirm the calculations contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Property" shall mean, collectively, the Land and the Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT'S SHARE OF TAXES</u>. If the Taxes for any full Tax Year after the Base Tax Year and falling within the Lease Term shall exceed the Base Taxes, or if, in the case of a Tax Year only a fraction of which is included in the Lease Term, an amount of the Taxes for such Tax Year multiplied by such fraction exceeds the Base Taxes multiplied by such fraction (the amount of such excess in either case being hereafter referred to as the "Tax Excess"), then Tenant shall pay to Landlord, as Additional Rent, Tenant's Share of the Tax Excess. From and after the Rent Commencement Date, Tenant shall also pay to Landlord, as Additional Rent, Tenant's Share of Tax Expenses. Tenant's Share of the Tax Excess and Tax Expenses for each Tax Year after the Base Tax Year shall be payable in monthly installments as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commencing on July 1, 2022, payments by Tenant on account of Tenant's Share of the Tax Excess and Tax Expenses ("Tenant's Tax Payments") shall be payable in the same installments as Taxes are payable to The City of New York, it being agreed that each such installment shall be payable by Tenant to Landlord by the later to occur of (i) the date that is thirty (30) days before the applicable installment is payable by Landlord to The City of New York and (ii) the date that is thirty (30) days after Tenant's receipt of any Tax Statement therefor. Promptly after receipt by Landlord of bills for such Taxes (collectively, "Tax Bills") or, if such bills are unavailable, reasonable supporting documentation with respect to such Taxes (collectively, "Supporting Documentation"), Landlord shall advise Tenant of the amount thereof and the computation of Tenant's payment on account thereof. Each Tax Statement to be rendered by Landlord shall set forth in reasonable detail the computation of Tenant's Tax Payment for the particular installment(s) being billed, and, if Landlord shall have received the relevant Tax Bill rendered with respect to the Property or, as applicable, the relevant Supporting Documentation, at such time, shall accurately reflect such Tax Bill or Supporting Documentation or, if Landlord shall not have received such Tax Bill or Supporting Documentation at such time, shall reflect Landlord's reasonable and good faith estimate of such installment(s) being rendered. A copy of the relevant Tax Bill or Supporting Documentation shall accompany each Tax Statement (if Landlord shall have received such Tax Bill or Supporting Documentation at the time such Landlord's Statement in respect of Taxes is delivered to Tenant). If Landlord shall not have received the relevant Tax Bill or Supporting Documentation at the time any Tax Statement is delivered to Tenant, Landlord shall deliver to Tenant, reasonably promptly after receipt thereof by Landlord, a copy of such Tax Bill or Supporting Documentation, together with a statement setting forth the amount (if any) of any overpayment or underpayment by Tenant with respect to Tenant's Tax Payment paid by Tenant in accordance with such Tax Statement and the appropriate party shall pay to the other party the amount of such overpayment or underpayment as set forth in this Section 6.12(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Taxes for any Tax Year after the Base Tax Year shall equal or be less than the Base Taxes, Tenant shall not be obligated to make any payments to Landlord pursuant to this Section 6.1.2(a) in respect of a Tax Excess for such Tax Year, but in no event shall Tenant be entitled to any refund or reduction in the Annual Fixed Rent by reason of such fact.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It is understood that the provisions of this Section 6.1 are based upon the method of payment of New York City real property taxes in effect at the date of this Lease, to wit, in semi-annual installments in advance on the first days of July and January of each Tax Year. If such method of payment is hereafter changed, Landlord shall have the right to change the method by which Tenant pays Tenant's Share of a Tax Excess to a method of periodic payments which provides Landlord with the full amount of Tenant's Share of such Tax Excess in respect of any installment of Taxes by the date on which such installment becomes due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the payments required under Section 6.1.2(a) above, Tenant shall pay to Landlord on the first day of each and every calendar month the following amounts during the following periods in the same fashion herein provided for the payment of Annual Fixed Rent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; July 1, 2018 through June 30, 2019, the sum of Fifty Five Cents ($0.55) per rentable square foot of the Premises ($37,294.95 in the aggregate, subject to adjustment of the rentable square feet of the Premises pursuant to Section 2.1);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; July 1, 2019 through June 30, 2020, the sum of One Dollar and 10/100 ($1.10) per rentable square foot of the Premises ($74,589.90 in the aggregate, subject to adjustment of the rentable square feet of the Premises pursuant to Section 2.1);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; July 1, 2020 through June 30, 2021, the sum of One Dollar and 65/100 ($1.65) per rentable square foot of the Premises ($111,884.85 in the aggregate, subject to adjustment of the rentable square feet of the Premises pursuant to Section 2.1); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; July 1, 2021 through the Expiration Date, the sum of Two Dollars and 20/100 ($2.20) per rentable square foot of the Premises ($149,179.80 in the aggregate, subject to adjustment of the rentable square feet of the Premises pursuant to Section 2.1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3&nbsp;&nbsp;&nbsp;&nbsp; <u>TAX REDUCTION PROCEEDINGS</u>. Only Landlord shall have the right to institute tax reduction or other proceedings to reduce the assessed valuation of the Land and Building (any such Proceeding, a "Tax Proceeding"). Should Landlord be successful in any such reduction proceedings and obtain a refund for any Tax Year or Years after the Base Tax Year in respect of which Tenant shall have made a payment to Landlord, pursuant to this Section 6.1, Tenant's Share of such refund (or, in the case of a refund of Taxes for a Tax Year, only a fraction of which is included in the Lease Term, such fraction thereof) shall be promptly refunded by Landlord to Tenant (within thirty (30) days following Landlord's receipt thereof). In calculating the amount of any such payment, Landlord shall have the right to deduct from such refund Tenant's Share of all Tax Expenses incurred by Landlord in obtaining the same to the extent that such Tax Expenses have not otherwise been paid to Landlord pursuant to Section 6.1.1. Without Tenant's consent, Landlord shall not at any time settle, compromise or otherwise dispose of a Tax Proceeding with respect to the Property by agreeing to terms that (i) favors other property of Landlord (or any Affiliate of Landlord) at the expense of the Property or (ii) as part of a multi-year settlement, inequitably and disproportionately reduces the Taxes for the Base Taxes as compared to other Tax Years occurring after the Base Tax Year that are involved in such settlement. The provisions of this subsection 6.1.3 shall survive the expiration of the Lease Term.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>OPERATING EXPENSE ESCALATION</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.1&nbsp;&nbsp;&nbsp;&nbsp; <u>DEFINITIONS</u>. For the purposes of this Section 6.2, the following terms shall have the respective meanings set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Base Operating Year" shall mean the Operating Year commencing on January 1, 2018 and ending on December 31, 2018.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "Base Operating Expenses" shall mean the actual Operating Expenses for the Base Operating Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Operating Expenses" shall mean the aggregate of all costs and expenses (including taxes, if any, thereon) paid or incurred by or on behalf of Landlord (whether directly or through independent contractors) in connection with the operation and maintenance of the Property (as hereinafter defined), including all expenses incurred by Landlord as a result of its compliance with any of its obligations under Sections 7.1 and 7.3 hereof, but excluding those items set forth as excluded from Operating Expenses at the end of this subsection 6.2.1(c). Operating Expenses shall be calculated on the accrual basis of accounting (but subject to the further provisions of this Section 6.2) and shall include, without limitation, the following expenses:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; salaries, wages, medical, surgical and general welfare benefits (including group life insurance), pension and welfare payments or contributions and all other fringe benefits paid to, for or with respect to all persons (whether they be employees of Landlord or its managing agent) up to and including the level of senior property manager for their services in the operation (including, without limitation, security services, messengers, porters, parking attendants and/or shuttle drivers), maintenance, repair, or cleaning of the Property and/or any of its facilities or services, and payroll taxes, workers' compensation, uniforms and dry cleaning costs for such persons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; payments under service contracts with independent contractors for operating (including, without limitation, providing security services, messengers, porters, parking attendants and/or shuttle drivers), maintaining, repairing or cleaning of the Property or any portion thereof or any fixtures or equipment therein, provided such independent contractors charge competitive market rates;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; all costs or charges for steam, heat, ventilation, air conditioning and water (including sewer rents) furnished to the Property by Landlord and/or used in the operation of the Property and all costs or charges for electricity furnished to the public and service areas of the Property and/or used in the operation of the service facilities of the Property, including any taxes on any such utilities, provided such steam, heat, ventilation, air conditioning and/or water is for the general benefit of occupants of the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ordinary repairs which are appropriate to the continued operation of the Property as a first-class Manhattan office building (including, without limitation, all repairs to the roof of the Building; provided, however, Landlord and Tenant hereby acknowledge and agree that, with respect to Operating Expenses incurred as a result of structural repairs to the Building, Tenant's Share with respect to such Operating Expenses shall be 12.91% (and 16.51% if the Expansion Space is added));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; costs of lobby decoration, painting and decoration of non-tenant areas, provided such decoration and/or painting is for the general benefit of occupants of the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; cost of snow removal and landscaping in and about the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cost of building and cleaning supplies and equipment, cost of replacements for tools and equipment used in the operation, maintenance and repair of the Property and charges for telephone service for the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;&nbsp;&nbsp; financial expenses incurred in connection with the operation of the Property, such as insurance premiums (including, without limitation, liability insurance, fire and casualty insurance, rent insurance and any other insurance that is then generally carried by owners of major first-class office buildings in Manhattan or may be required by the holder of any mortgage on the Property), attorney's fees and disbursements (exclusive of any such fees and disbursements incurred in applying for any reduction of Taxes or in connection with the leasing of space in the Property), auditing, accounting and other professional fees and expenses, and any other ordinary and customary financial expenses incurred in connection with the operation of the Property, provided that if any of the foregoing expenses are provided or used jointly on other property of Landlord or otherwise directly benefit any other property of Landlord, such expenses shall be suitably prorated among the Property and such other properties of Landlord, provided that any excess insurance proceeds shall be credited to insurance expenses; provided, however, with respect to insurance premiums, Landlord and Tenant hereby acknowledge and agree that Operating Expenses (including the Base Operating Expenses) shall only include insurance premiums allocable to the Building Office Space;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1) all management fees payable to a management company which is unrelated to Landlord or (2) if to a management company which is owned or controlled by Landlord or Landlord's principals, then management fees not exceeding a rate of three percent (3%) of actual gross rentals of the Property per annum, in each case excluding any fees related to any commercial signage revenue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the cost of capital improvements made by Landlord that are either (1) reasonably anticipated by Landlord to reduce Operating Expenses (based on Landlord's good faith estimate that the savings in Operating Expenses are likely to exceed the annual amortization of such capital improvements), or (2) pursuant to a requirement of law, ordinance, order, rule or regulation of any public authority having jurisdiction or the requirement of any insurance carrier or insurance rating organization or underwriting board first enacted after the Access Date (including the cost of compliance with any law, ordinance, order, rule or regulation of any public authority having jurisdiction or the requirement of any insurance carrier or insurance rating organization or underwriting board enacted prior to the Access Date if such compliance is required for the first time by reason of any amendment, modification or reinterpretation thereof which is first imposed or enacted after the Access Date), in either case calculated as follows: the cost of any such capital improvement shall be included in Operating Expenses for the Operating Year in which such improvement was made, provided that to the extent the cost of such capital improvement is required to be capitalized under GAAP, such cost shall be amortized on a straight-line basis over the useful life thereof utilized under GAAP, and the annual amortization of such capital improvement, together with interest on the unamortized balance of such cost at the Lease Interest Rate, shall be included in Operating Expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rental payments made for equipment used in the operation and maintenance of the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the cost of governmental licenses and permits, or renewals thereof, necessary for the operation of the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) &nbsp;&nbsp;&nbsp;&nbsp; all costs of reporting for the Building or any part thereof to maintain certification under the U.S. EPA's Energy Star® rating system, the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) rating system or a similar system or standard (but excluding costs of seeking, applying for and obtaining any initial certification);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)&nbsp;&nbsp;&nbsp;&nbsp; all costs and expenses in connection with the operation, maintenance, repair and cleaning of any parking garages and/or parking facilities available at the Property;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all costs and expenses in connection with the operation, maintenance, repair and cleaning of any shuttle or car services available at the Property, which, for the avoidance of doubt, shall include, without limitation, all costs of insurance, fuel, leasing (or owning) vehicles (and any maintenance, repair or replacement of such vehicles) and all costs to employ drivers of the shuttles/car service (or any other labor in connection therewith); provided, however, if Landlord shall have failed to comply with its express obligations under Section VII of Exhibit D attached hereto during the applicable Operating Year, such costs and expenses under this clause (xv) for the Base Year shall be determined to be an amount equal to the costs and expenses which would normally be expected to have been incurred had Landlord complied with its express obligations under Section VII of Exhibit D throughout such Operating Year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)&nbsp;&nbsp;&nbsp;&nbsp; all costs and expenses in connection with the operation, maintenance, repair and cleaning of any bike storage and/or bike sharing facilities available at the Property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) &nbsp;&nbsp;&nbsp;&nbsp; all other reasonable and necessary expenses paid in connection with the operation, maintenance, repair and cleaning of the Property which are properly chargeable against income.

Any cost or expenses of the nature described above shall be included in Operating Expenses for any Operating Year no more than once, notwithstanding that such cost or expenses may fall under more than one of the categories listed above. Subject to the limitation set forth in subdivision (ix) above, Landlord may use related or affiliated entities to provide services or furnish materials for the Property provided that the rates or fees charged by such entities are competitive with and do not exceed the highest rates charged by unrelated or unaffiliated entities in the Borough of Manhattan for the same services or materials on a competitive basis.

The following costs and expenses shall be excluded from Operating Expenses:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes and Tax Expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; franchise and income taxes imposed upon Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; debt service and other charges under any mortgage on the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; costs and expenses incurred in connection with procuring tenants, including leasing and brokerage commissions, lease marketing and advertising expenses, concessions, lease takeover or rental assumption obligations, architectural costs, engineering fees and other similar professional costs and legal fees in connection with lease negotiations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; capital improvements to the Property (including, without limitation, costs incurred in connection with making any additions to, or building additional stories on, the Building, or adding buildings or other structures adjoining the Building, or connecting the Building to other structures adjoining the Building) other than those provided in clause (x) above;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the cost of electrical energy furnished directly to tenants of the Property or any other space in the Building leased to tenants or to other rentable space in the Building whether or not the same is actually leased to tenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the cost of tenant installations and decorations incurred in connection with preparing space for any tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; salaries, wages or fringe benefits of personnel above the grade of senior property manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;rent payable under any Underlying Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)&nbsp;&nbsp;&nbsp;&nbsp; the cost of any items to the extent to which such cost is reimbursed to Landlord by tenants of the Property (other than pursuant to this Section 6.2), insurance or condemnation proceeds or third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)&nbsp;&nbsp;&nbsp;&nbsp; depreciation, amortization (except as provided in clause (x) above) and other non-cash charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12)&nbsp;&nbsp;&nbsp;&nbsp; interest, fines or penalties for late payment by Landlord, if any, except to the extent incurring such expense is a reasonable business expense under the circumstances or caused by a corresponding late payment by Tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13)&nbsp;&nbsp;&nbsp;&nbsp; any marketing, advertising, entertainment or promotional expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14)&nbsp;&nbsp;&nbsp;&nbsp; accounting, legal and appraisal fees relating to determinations of fair market rent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15)&nbsp;&nbsp;&nbsp;&nbsp; the cost of tenant allowances or inducements made for new or existing tenant(s) of the Building, including permit, license and inspection fees and any other contribution by Landlord to the cost of tenant improvements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16)&nbsp;&nbsp;&nbsp;&nbsp; costs incurred in performing work or furnishing services for any tenant, whether at such tenant's or Landlord's expense, to the extent that such work or service is in excess of any work or service that Landlord is obligated to furnish to Tenant at Landlord's expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17)&nbsp;&nbsp;&nbsp;&nbsp; financing and refinancing costs in respect of any mortgage placed upon the Property or any Underlying Lease, including points and commissions and legal and professional fees in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18)&nbsp;&nbsp;&nbsp;&nbsp; costs and expenses resulting from the gross negligence or willful misconduct of Landlord or any other Landlord Party and any damages and attorneys' fees and disbursements and other costs in connection with any judgment, settlement or arbitration award resulting from any tort liability of Landlord or any other Landlord Party, except to the extent resulting from Tenant's gross negligence or willful misconduct;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19)&nbsp;&nbsp;&nbsp;&nbsp; the cost of installing, operating and maintaining any specialty facility such as an observatory, broadcasting facilities, luncheon club, athletic or recreational club, child care or similar facility, auditorium, cafeteria or dining facility or conference center;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20)&nbsp;&nbsp;&nbsp;&nbsp; costs incurred with respect to a sale or transfer of all or any portion of the Building or any interest therein or in any person of whatever tier owning an interest therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21)&nbsp;&nbsp;&nbsp;&nbsp; costs incurred in connection with the acquisition or sale of air rights or transferable development rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22)&nbsp;&nbsp;&nbsp;&nbsp; costs of acquiring, leasing, restoring or replacing (i) sculptures, (ii) paintings, (iii) other objects of art located within or outside the Building, except for the reasonable cost of installing, removing, cleaning and maintenance of such objects in the public areas in the Building and (iv) any temporary exhibitions located at or within the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23)&nbsp;&nbsp;&nbsp;&nbsp; costs and expenses incurred by Landlord in connection with any obligation of Landlord to indemnify any tenant (including Tenant) pursuant to its lease which result from Landlord's breach of a lease or Landlord's tortious conduct, gross negligence or willful misconduct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24)&nbsp;&nbsp;&nbsp;&nbsp; the cost of overtime heating, ventilating, air-conditioning, condenser water or chilled water for supplemental systems furnished to the Premises or any other space in the Building leased to tenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25)&nbsp;&nbsp;&nbsp;&nbsp; the cost of repairs or replacements or restorations by reason of fire or other casualty or condemnation to the extent Landlord receives compensation through the proceeds of insurance or for which Landlord would have been compensated by insurance had it carried the coverage required under this Lease or by the condemning authority (except as specifically required by this Lease to be paid by Tenant);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26)&nbsp;&nbsp;&nbsp;&nbsp; any bad debt loss, rent loss or reserves for bad debts or rent loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27)&nbsp;&nbsp;&nbsp;&nbsp; the expenses paid or incurred by or on behalf of Landlord in owning, maintaining, repairing, managing and operating the portion of the Property that is used for retail or auto-dealer purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28)&nbsp;&nbsp;&nbsp;&nbsp; expenses and disbursements relating to disputes with Tenant and other tenants or other occupants of the Building;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29) &nbsp;&nbsp;&nbsp;&nbsp; expenses incurred in connection with services or other benefits (A) of a type not provided to Tenant (or provided to Tenant at separate or additional charge) but that are provided to another tenant or occupant of the Building or (B) provided to other tenants or occupants of the Building at a materially greater level than that provided to Tenant without separate or additional charge, in which case such expenses shall be excluded from Operating Expenses to the extent such expenses exceed the amount which would have been incurred to provide such services or other benefits to such other tenant or occupant at the same level as such services or other benefits are provided to Tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30)&nbsp;&nbsp;&nbsp;&nbsp; except as otherwise expressly provided herein, amounts paid to Landlord or to Affiliates of Landlord (except for the payment of management fees as provided herein) for any services in the Building to the extent such amounts exceed the cost of such services if such services had been rendered by other unaffiliated third parties on a competitive basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31)&nbsp;&nbsp;&nbsp;&nbsp; any compensation paid to clerks, attendants or other persons in commercial concessions operated by Landlord or its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(32)&nbsp;&nbsp;&nbsp;&nbsp; profits, franchise, gains, estate, income, succession, gift, corporation, unincorporated business and gross receipts taxes imposed upon Landlord, or any interest or penalties for failure to timely pay those taxes or any other taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(33)&nbsp;&nbsp;&nbsp;&nbsp; any expenses which are not paid or incurred solely in respect of the Property but rather in respect of other real property owned by Landlord or Affiliates of Landlord, <u>provided</u> <u>that</u> with respect to any expenses attributable in part to the Property and in part to other real property owned or managed by a Landlord Party (including salaries, fringe benefits and other compensation of a Landlord Party's personnel who provide services to both the Real Property and other properties, but in no event above the level of building manager) or the portion of the premiums for any insurance carried under "blanket" or similar policies), Operating Expenses shall include only such portion thereof as are apportioned by Landlord to the Property on a fair and equitable basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34)&nbsp;&nbsp;&nbsp;&nbsp; the rental cost of items which (if purchased) would be capitalized and excluded from Operating Expenses, except if the cost of such items (if purchased) would be included in Operating Expenses pursuant to Section 6.2.1(a)(x) or if in accordance with good business practices, such items are typically rented;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(35)&nbsp;&nbsp;&nbsp;&nbsp; expenditures for repairing and/or replacing any defect in any work performed by Landlord pursuant to the provisions of this Lease or for correcting any failure of the Building to comply with all applicable Legal Requirements in effect as of the Base Building Delivery Date, in each case to the extent expenditures for such repairs and/or replacements are recovered by warranty for such work (but Landlord shall not be permitted to include in Operating Expenses any costs or expenses that are already included in Operating Expenses under another provision of this Lease), and any expenditures as to which this Lease expressly provides that such repairs and/or replacements are to be made at Landlord's sole cost;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(36)&nbsp;&nbsp;&nbsp;&nbsp; accounting fees other than (A) for Landlord's reasonable home office accounting charges associated with property management, which charges shall be reasonably allocated to the Building and shall be consistently applied throughout the Term (<u>provided</u>, <u>however</u>, that such charges shall not be included in Operating Expenses if the services are actually being provided by third parties and such third party costs are included in Operating Expenses), (B) actual out-of-pocket accounting fees incurred in connection with the preparation of statements (or backup documentation) in connection with additional rent or lease escalation provisions or (C) if Landlord does not utilize home office accountants, any commercially reasonable accounting fees charged by third party accountants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(37)&nbsp;&nbsp;&nbsp;&nbsp; costs and expenses incurred in connection with enforcement of leases, including court costs, accounting fees, auditing fees, attorney's fees and disbursements in connection with any summary proceeding to dispossess any tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(38)&nbsp;&nbsp;&nbsp;&nbsp; any contributions to charitable organizations, except to the extent the same are customarily included as operating expenses in office leases of First Class Buildings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(39)&nbsp;&nbsp;&nbsp;&nbsp; costs covered by enforceable warranties and guaranties but only to the extent Landlord is actually reimbursed under such warranties and guaranties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(40)&nbsp;&nbsp;&nbsp;&nbsp; cost of clean-up, removal or remediation of any Hazardous Materials from the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(41)&nbsp;&nbsp;&nbsp;&nbsp; costs to correct any condition that is in violation of any representation, warranty or covenant of Landlord made in this Lease or in any other lease or occupancy agreement relating to space in the Building, but only if costs relating to the item to be corrected are not otherwise includable in Operating Expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(42)&nbsp;&nbsp;&nbsp;&nbsp; any increase in insurance premiums for the Building due to Landlord permitting particular uses or manners of use of space in the Building by other tenants, it being understood that Tenant will not dispute Landlord's reasonable determination that such increase is not attributable to such particular uses or manners of use of space in the Building by other tenants;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(43) &nbsp;&nbsp;&nbsp;&nbsp; any voluntary political contributions by Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(44) &nbsp;&nbsp;&nbsp;&nbsp; subject to subclause (27) above, costs and expenses allocable directly and solely to any Building retail space (including, without limitation, plate glass insurance, HVAC and cleaning services with respect thereto) and the portion of expenses reasonably equitably allocable to services provided to tenants of Building retail space or expenses that are payable by the tenants of the Building retail space that do not relate to the rest of the Building; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(44)&nbsp;&nbsp;&nbsp;&nbsp; subject to Tenant's compliance with Section 4.1(i) above, the costs and expenses incurred by Landlord in connection with the maintenance and repair of the Building Generator System.

Operating Expenses shall be net of rebates, credits and similar items of which Landlord receives the benefit.

If Landlord is not furnishing any particular work or service (the cost of which if performed by Landlord would constitute an Operating Expense) to a tenant who has undertaken to perform such work or service in lieu of the performance thereof by Landlord, Operating Expenses for any Operating Year during all or any part of which such work or service is not so furnished by Landlord shall be increased by an amount equal to the additional Operating Expenses which reasonably would have been incurred during such period by Landlord if it had at its own expense furnished such work or service to such tenant. Base Operating Expenses shall be reduced by Operating Expenses attributable to unusual or extraordinary circumstances or conditions having a disproportionate impact on Operating Expenses for the Base Operating Year, such as (but not limited to) unusual or extraordinary circumstances or conditions affecting energy supply, security and health and safety measures.

In determining the amount of Operating Expenses for any Operating Year, if less than ninety-five percent (95%) of the rentable areas of the Building shall have been occupied by tenant(s) at any time during such Operating Year, Operating Expenses shall be determined for such Operating Year to be an amount equal to the Operating Expenses which would normally be expected to have been incurred had such occupancy of the rentable area of the Building been ninety-five percent (95%) throughout such Operating Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Operating Year" shall mean the Base Operating Year and each calendar year following the Base Operating Year, any part or all of which falls within the Lease Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "Operating Expense Statement" shall mean a written notice from Landlord to Tenant containing (i) the amount of Operating Expenses payable for any calendar year, and Tenant's Operating Payment, and (ii) for the Base Operating Year, the Operating Expenses for such year. Landlord shall use reasonable efforts to include sufficient detail in any Operating Expense Statement to allow Tenant to confirm the calculations contained therein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.2 <u>TENANT'S SHARE OF OPERATING EXPENSES</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall pay, in accordance with this Section 6.2.2, as Additional Rent, for each Operating Year (all or any part of which falls within the Term), an amount Tenant's Operating Payment") equal to the product of (x) the amount, if any, by which Operating Expenses for such Operating Year exceed the Base Operating Expenses multiplied by (y) Tenant's Share of Operating Expenses. Tenant's Operating Payment shall be paid by Tenant in accordance with Section 6.2.2(b) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord will furnish to Tenant, with respect to (1) the Base Operating Year, a written statement setting forth in detail Landlord's calculation of the Base Operating Expenses and (2) each subsequent Operating Year (or portion thereof), a written statement setting forth in reasonable detail Landlord's reasonable estimate of Tenant's Operating Payment for such Operating Year (a "Landlord's Estimate"). Landlord shall endeavor to provide Landlord's Estimate to Tenant not later than thirty (30) days before the commencement of any Operating Year (or portion thereof) occurring after the Base Operating Year. Tenant shall pay to Landlord on the first day of each month during each Operating Year or portion thereof occurring after the Base Operating Year an amount equal to one-twelfth (1/12<sup>th</sup>) of Landlord's Estimate, which shall be credited toward Tenant's Operating Payment for such Operating Year. If, however, Landlord shall furnish a Landlord's Estimate subsequent to the date that is thirty (30) days before the commencement of any such Operating Year, then (i) until the first day of the month following the month in which such Landlord's Estimate is furnished to Tenant (the "Proration Date"), Tenant shall pay to Landlord on the first day of each month an amount equal to the monthly sum payable by Tenant to Landlord under this Section 6.2.2 in respect of the last month of the preceding Operating Year, (ii) simultaneously with the delivery of Landlord's Estimate, Landlord shall give notice to Tenant stating whether the installments of Tenant's Operating Payment made or to be made on or before the Proration Date for such Operating Year were greater or less than the installments of Tenant's Operating Payment to be made for such period in accordance with such estimate, and (A) if such notice from Landlord shall indicate a deficiency, Tenant shall pay the amount thereof within thirty (30) days after demand therefor, together with interest on such deficiency at the Lease Interest Rate, but such interest shall only be payable if such deficiency is at least $100,000.00 or (B) if such notice from Landlord shall indicate an overpayment, Landlord shall, at its option, either pay to Tenant the amount thereof, together with interest on such overpayment at the Lease Interest Rate, but such interest shall only be payable if such overpayment is at least $100,000.00, and (iii) on the first day of the month following the month in which Landlord's Estimate is furnished to Tenant, and monthly thereafter throughout the remainder of such Operating Year, Tenant shall pay to Landlord an amount equal to one-twelfth (1/12<sup>th</sup>) of Tenant's Operating Payment shown on such Landlord's Estimate. Landlord may, at any time or from time to time (but not more than twice with respect to any Operating Year) furnish to Tenant a revised Landlord's Estimate of Tenant's Operating Payment for such Operating Year, and in such case, Tenant's Operating Payment for such Operating Year shall be adjusted and paid within thirty (30) days, substantially in the same manner as provided in the immediately preceding sentence.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Within one hundred eighty (180) days after the end of each calendar year occurring after the Base Operating Year, Landlord shall furnish to Tenant an Operating Expense Statement; <u>provided</u>, <u>however</u>, that if the Base Operating Year is not a calendar year, then the Operating Expense Statement for the Base Operating Year shall be delivered within one hundred eighty (180) days after the end of the last calendar year within which any part of the Base Operating Year occurs. Each such year-end Operating Expense Statement for any such calendar year which includes Operating Expenses shall be accompanied by a computation of Operating Expenses for the Building prepared by Landlord's managing agent and certified by a certified public accountant, from which Landlord shall make the computation of Operating Expenses hereunder and, provided that Landlord (or an Affiliate thereof) is not the landlord named herein, shall be audited by a certified public accountant. If any Operating Expense Statement shall provide for payments of Tenant's Operating Payment that differ from the amount of Tenant's Operating Payment paid by Tenant for the preceding Operating Year, then (x) in the case of an overpayment, Landlord shall, at its option, either pay to Tenant or apply a credit against the next installments of Rent, the amount of such overpayment, together with interest on such overpayment at the Lease Interest Rate, but such interest shall only be payable if such overpayment is at least $100,000.00, and (y) in the case of a deficiency, Tenant shall pay the amount thereof within thirty (30) days of demand therefor, together with interest on such deficiency at the Lease Interest Rate, but such interest shall only be payable if such deficiency is at least $100,000.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the case of an Operating Year only a fraction of which falls within the Lease Term (the fractional representation that the portion of the Lease Term in such Operating Year bears to such Operating Year being hereinafter referred to as the "<u>Partial Year Fraction</u>"), Tenant's Operating Payment shall be equal to that amount by which (i) Operating Expenses for such Operating Year multiplied by the Partial Year Fraction exceeds (ii) Base Operating Expenses multiplied by the Partial Year Fraction. In the event of a termination of this Lease, any Additional Rent on account of Tenant's Operating Payment shall be paid or adjusted within thirty (30) days after submission of a Landlord's Statement. Landlord shall render a Landlord's Statement with respect to Operating Expenses as soon as reasonably practicable following the Expiration Date, but in no event later than twelve (12) months following the expiration of the Operating Year in which the Expiration Date occurs. In no event shall Fixed Rent ever be reduced by operation of this Section 6.2.2 and the rights and obligations of Landlord and Tenant under the provisions of this Article 6 with respect to any Additional Rent shall survive the expiration or earlier termination of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any payments received by Landlord for recyclable materials and waste paper for the Building during any Operating Year shall be deducted from Operating Expenses with respect to such Operating Year except to the extent that such payments are credited or deducted from the applicable service contract(s).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To the extent that at any time during the two (2) year period after the Rent Commencement Date, Landlord adds one or more new categories of Operating Expenses with respect to any Operating Year that are not included in Base Operating Expenses, then (i) for so long as expenses relating to such new categories are included in Operating Expenses and (ii) the initial lease for any of the Building's Office Space entered into by Landlord after the date of this Lease shall substantially provide that base year operating expenses under such other lease shall be increased by an amount equal to (A) the amount included in operating expenses under such other lease for such new category in the first operating year in which such new category is added, reduced by (B) the percentage increase in CPI, if any, from the first month of the base operating expense year under such other lease to the first month of the operating expense year with respect to which such amounts are first included in operating expenses under such other lease (or a provision that has a similar effect of adjusting base operating expenses if new categories of Operating Expenses are added during such two (2) year period), for so long as the Original Tenant is then the Tenant under this Lease, Base Operating Expenses shall be deemed to be increased by an amount equal to (1) the amount included in Operating Expenses for such new category of Operating Expenses in the first Operating Year in which such new category is added (it being understood that Landlord shall have no obligation to refund any amounts to Tenant for prior Operating Years solely by reason of any such increase of the Base Operating Expenses), reduced by (2) the percentage increase in CPI, if any, from the first month of the Base Operating Year to the first month of the Operating Year with respect to which such amounts are first included in Operating Expenses. By way of example, (i) if CPI has increased by 10%, in the aggregate, since the Base Operating Year, and (ii) the new category costs are $5,000 per annum in such first Operating Year, then the Operating Expenses for the Base Operating Year shall be increased by $4,500 per annum on account of such new category. As used herein, the term "Building Office Space" shall mean all of the RSF of the Building located on the sixth (6<sup>th</sup>) through tenth (10<sup>th</sup>) floors of the Building that is used as office space (regardless of the then occupant of such space). As used herein the term "CPI" shall mean the Consumer Price Index for All Urban Consumers, New York, N.Y. — Northern New Jersey — Long Island, 1982-84=100; provided, however, that if the CPI or any successor index shall cease to be published, Landlord and Tenant, acting reasonably, shall agree upon and designate in writing a substitute therefor. So long as Landlord and Tenant are unable to agree as to such substituted index, CPI-based increases provided for herein shall be determined in accordance with a substituted index, comparable to CPI, reasonably selected by Landlord; subject to adjustment when finally determined, with the appropriate party being entitled to a refund from the other party of any overpayment as a result of the use of such index selected by Landlord within thirty (30) days after written demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise provided herein, Landlord's failure to render a Tax Statement or Operating Expense Statement (any such statement, a "Landlord's Statement") with respect to any applicable payment period as provided herein shall not prejudice Landlord's right to thereafter render a Landlord's Statement with respect thereto or with respect to any subsequent payment period, nor shall the rendering of a Landlord's Statement prejudice Landlord's right (subject to the terms hereof) to thereafter render a corrected Landlord's Statement for that payment period. Subject to the terms hereof, nothing herein contained shall restrict Landlord from issuing a Landlord's Statement at any time there is an increase in Taxes or Operating Expenses during any payment period or any time thereafter. Notwithstanding the foregoing provisions of this Section 6.2.2(g), if Landlord has not issued any Landlord's Statement within two (2) years after the end of a payment period, Tenant may give Landlord a notice thereof and if Tenant gives such notice and such failure continues for thirty (30) days following such notice, then Tenant may give Landlord a second (2<sup>nd</sup>) notice of such failure, which notice shall set forth in bold capital letters the following statement: "**IF LANDLORD FAILS TO DELIVER A [TAX STATEMENT] [AND/OR] [ OPERATING EXPENSE STATEMENT] TO TENANT WITHIN TEN (10) OPERATING DAYS AFTER RECEIPT OF THIS NOTICE, LANDLORD SHALL HAVE WAIVED ITS RIGHT TO COLLECT ANY AMOUNTS THAT MIGHT BE SHOWN ON SUCH UNDELIVERED [TAX STATEMENT] [OPERATING EXPENSE STATEMENT] AS DUE AND PAYABLE BY TENANT."** If Landlord does not so issue any such Landlord's Statement within ten (10) Operating Days after Landlord's receipt of such second (2<sup>nd</sup>) notice, Tenant shall be released and relieved of the obligation to pay any amounts that would have been payable by Tenant in respect of the payment period for which said two (2) year period has expired. Landlord agrees that each Landlord's Statement shall be delivered to Tenant in good faith so as not to circumvent the requirement under this Section 6.2.2(g) that Landlord deliver each Landlord's Statement (as opposed to a correction thereto) within two (2) years after the end of the applicable payment period. Notwithstanding anything to the contrary contained herein, in no event shall interest accrue or be due in connection with Landlord's failure to timely deliver any Landlord's Statement to Tenant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the Operating Expenses for any Operating Year after the Base Operating Year shall equal or be less than the Base Operating Expenses, Tenant shall not be obligated to make any payments to Landlord pursuant to Section 6.2.1 above of this Section 6.2.2(b)(i) in respect of such Operating Year, but in no event shall Tenant be entitled to any refund or reduction in the Annual Fixed Rent by reason of such fact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.3&nbsp;&nbsp;&nbsp;&nbsp; <u>AUDIT RIGHT</u>. Subject to the provisions of this Section and provided that no Event of Default then exists, Tenant shall have the right to examine the correctness of the Landlord's Operating Expense Statement or any item contained therein. Any request for examination in respect of any Operating Year may be made by notice from Tenant to Landlord no more than one hundred eighty (180) after the date (the "Operating Expense Statement Date") Landlord provides Tenant a statement of the actual amount of the Operating Expenses in respect of such Operating Year and only if Tenant shall have fully paid such amount. Such notice shall set forth in reasonable detail the matters questioned. Provided that Landlord makes Landlord's books and records available for Tenant's examination in accordance with this Section 6.2.3, any examination must be completed and the results communicated to Landlord no more than one hundred eighty (180) days after the Operating Expense Statement Date. Tenant hereby acknowledges and agrees that Tenant's sole right to contest the Operating Expense statement shall be as expressly set forth in this Section. Tenant hereby waives any and all other rights pursuant to applicable law to inspect Landlord's books and records and/or to contest the Operating Expense statement. If Tenant shall fail to timely exercise Tenant's right to inspect Landlord's books and records as provided in this Section, or if Tenant shall fail to timely communicate to Landlord the results of Tenant's examination as provided in this Section, with respect to any Operating Year, Landlord's statement of Operating Expenses shall be conclusive and binding on Landlord and Tenant, provided that Landlord shall retain the right thereafter to render a corrected statement and Tenant shall retain the right to audit such corrected statement solely to extent of corrections subject to and in accordance with the provisions of this Section as applied to such corrective statement (with the Operating Expense Statement Date being deemed to be the date that Landlord provides such corrected statement to Tenant). So much of Landlord's books and records pertaining to the Operating Expenses for the specific matters questioned by Tenant for the Operating Year included in Landlord's statement shall be made available to Tenant and its qualified representative within a reasonable time after Landlord timely receives the notice from Tenant to make such examination pursuant to this Section, during normal business hours at the offices in New York, New York where Landlord keeps such books and records. Tenant shall have the right to make such examination no more than once in respect of any Operating Year in which Landlord has given Tenant a statement of the Operating Expenses (except with respect to any corrected statement rendered by Landlord as set forth above). Such examination may be made only by a qualified employee of Tenant or a qualified independent certified public accounting firm. No examination shall be conducted by an examiner who is to be compensated, in whole or in part, on a contingent fee basis. As a condition to performing any such examination, Tenant and its examiners shall be required to execute and deliver to Landlord a commercially reasonable form of agreement agreeing to keep confidential any information which it discovers about Landlord or the Building in connection with such examination. No subtenant, other than an Affiliate of Tenant, shall have any right to conduct any such examination, provided that in no event shall Tenant and any Affiliates of Tenant be entitled to conduct more than one examination in the aggregate with respect to any Operating Year. No assignee may conduct any such examination with respect to any period during which the assignee was not in possession of the Premises. Except as otherwise expressly set forth herein, all costs and expenses of any such examination shall be paid by Tenant. If as a result of such examination, Landlord and Tenant agree that the amounts paid by Tenant to Landlord on account of the Operating Expenses exceeded the amounts to which Landlord was entitled hereunder, or that Tenant is entitled to a credit with respect to the Operating Expenses, Landlord, at its option, shall refund to Tenant the amount of such excess or apply the amount of such credit against rent, as the case may be, within thirty (30) days after the date of such agreement. Similarly, if Landlord and Tenant agree that the amounts paid by Tenant to Landlord on account of Operating Expenses were less than the amounts to which Landlord was entitled hereunder, then Tenant shall pay to Landlord, as additional rent hereunder, the amount of such deficiency within thirty (30) days after the date of such agreement.

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If Landlord and Tenant shall be unable to resolve any dispute concerning Operating Expenses within sixty (60) days following the delivery of the results of Tenant's examination to Landlord, Landlord shall designate a Certified Public Accountant who has not been engaged by Landlord (or any affiliate of Landlord) within the previous three (3) years and is reasonably satisfactory to Tenant (the "Arbiter") who shall be a member of an independent certified public accounting firm or a senior officer of a nationally recognized business consulting firm (which accounting or consulting firm shall have at least twenty (20) accounting professionals) and shall have practiced as a certified public accountant for at least ten (10) years, whose determination made in accordance with this Section 6.2.3 shall be binding upon the parties, and any such determination so made in accordance herewith may be entered as a judgment in any court of competent jurisdiction. If Landlord fails to designate an Arbiter within one hundred twenty (120) days after the delivery of the results of Tenant's audit, or if Landlord's designee is not reasonably satisfactory to Tenant, Tenant shall have the right to suggest an Arbiter, and if such person is not reasonably acceptable to Landlord, either party may petition the New York City office of the American Arbitration Association (or its successor) (the "AAA") for the appointment of an Arbiter. The Arbiter shall make a determination (and, if appointed by the AAA, be appointed) by an Expedited Procedures arbitration under the Commercial Arbitration Rules of the AAA. In rendering such determination such Arbiter shall not add to, subtract from or otherwise modify the provisions of this Lease. Except as otherwise set forth herein, Tenant shall pay the fees and expenses of the Arbiter. Tenant, pending the resolution of any contest pursuant to the terms hereof shall continue to pay all sums as determined to be due in the first instance by Landlord. If it is finally determined that the aggregate amount paid by Tenant to Landlord on account of Tenant's Share of Excess Operating Expenses exceeded the amounts to which Landlord was entitled hereunder, Landlord, at its option, shall refund to Tenant the amount of such excess or apply the amount of such credit against rent, as the case may be, within thirty (30) days after the date of such determination. If it is finally determined that the amounts paid by Tenant to Landlord on account of Tenant's Share of Excess Operating Expenses were less than the amounts to which Landlord was entitled hereunder, Tenant shall pay to Landlord the amount of such shortfall within thirty (30) days of the date Tenant is notified of the error. If Landlord's original determination of Tenant's Share of Excess Operating Expenses is determined to have been overstated by three percent (3%) or more, Landlord shall (i) pay the fees and expenses of the Arbiter and (ii) reimburse Tenant for the reasonable out-of-pocket costs and expenses incurred by Tenant in such examination.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.4&nbsp;&nbsp;&nbsp;&nbsp; <u>GENERAL APPLICABILITY</u>. The imposition on Landlord by any portion of this Lease of an obligation to perform any work, repairs or other acts with respect to the Property shall not be construed as preventing Landlord from including the cost of such work, repairs or other acts in Operating Expenses, to the extent the same is otherwise properly includable therein pursuant to this Section 6.2. Notwithstanding anything to the contrary contained in this Lease, it is not the intention of Landlord or Tenant to obligate Tenant to make the same payment more than once, and accordingly, if the provisions of this Lease require any duplicative payments to be made by Tenant to Landlord, then Tenant shall only have the obligation to make such payment once.

<u>ARTICLE 7</u>

<u>REPAIRS AND SERVICES</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD'S OBLIGATION TO REPAIR</u>. Except as otherwise provided in this Lease, Landlord shall, throughout the Lease Term, keep and maintain in good order, condition and repair consistent with prevailing standards of a Class A quality commercial office and retail building in Manhattan (a "<u>First Class Building</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the roof, the exterior and load bearing walls (including exterior windows), the foundation, the structural floor slabs and other structural elements of the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the common facilities of the Building, including, without limitation, HVAC, plumbing, electric, sprinklers and other Building systems and equipment servicing the Premises (including the Mezzanine Premises and License Area) (other than any supplementary or accessory HVAC, and telecommunication/computer systems and/or any item of such equipment exclusively serving the Premises (including the Mezzanine Premises and License Area) or any portion thereof, any of Tenant's Property, or otherwise part of Tenant's Work including, without limitation, each of the items listed on Exhibit O attached hereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the public portions of the Building and the Land; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; subject to Section 11.12 hereof, any of the repairs and/or replacements which, under the provisions of Section 7.2 hereof, it is Tenant's obligation to perform, if and to the extent the need for such repairs results from the negligence or willful misconduct of Landlord or Landlord's agents, employees or contractors.

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Landlord shall not be responsible to make any improvements or repairs to the Building or the Premises other than as expressly provided in this Section 7.1, unless expressly otherwise provided in this Lease. Tenant shall promptly give Landlord notice of any material damage to the Premises or the Building (whether or not caused by Tenant) or of any defects in any portion thereof or in any fixtures or equipment therein promptly after Tenant first learns thereof.

Landlord's Repair Conditions shall apply to Landlord's making any repairs, alterations, additions or improvements in the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>TENANT'S REPAIRS AND MAINTENANCE</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to Landlord's cleaning obligations pursuant to Section 7.3 and Exhibit D, Tenant covenants and agrees that, from and after the Access Date and until the end of the Lease Term, Tenant, at its expense, will keep neat and clean and maintain in good order, condition and repair the Premises (including, without limitation, the interior shell of the Premises, as applicable), Alterations and all fixtures or facilities contained in and exclusively serving the Premises which do not constitute part of the common areas or the Building systems, including, without limitation, any distribution conduits for the HVAC system serving the Premises, any supplemental air conditioning units, any private lavatory and any public lavatories located on floors leased entirely to Tenant, shower, toilet, washbasin and kitchen facilities, all plumbing exclusively serving such systems or facilities and all items listed on Exhibit O attached hereto, and will make all required repairs thereto and/or replacements of portions thereof, excepting only for those repairs or replacements for which Landlord is responsible under the terms of Section 7.1 or Article 12 of this Lease. Notwithstanding anything to the contrary set forth in Section 7.1, Tenant shall be responsible for the cost of all repairs and replacements to the Premises, the Building and the facilities of the Building, whether ordinary or extraordinary, structural or, non-structural, when necessitated by Tenant's, or its subtenant's or assignee's, moving property in or out of the Building or installation or removal of furniture, fixtures or other property or by the performance by Tenant, or its subtenant or assignee, of any alterations or other work in the Premises, or when necessitated by the acts, omission, misuse, neglect or improper conduct of Tenant, its assignee or subtenant, or its or their agents, employees, contractors or invitees or the use or occupancy or manner of use or occupancy of the Premises other than in accordance with the terms of this Lease, including, without limitation, all items listed on Exhibit O attached hereto. All of said repairs and any restorations or replacements required in connection therewith shall be of a quality and class at least equal to the original work or installations and shall be done in a good and workmanlike manner to the reasonable satisfaction of Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If repairs or replacements are required to be made by Tenant pursuant to the terms hereof, Landlord may demand that Tenant make the same forthwith, and (except in cases of emergency, where no notice or demand shall be required) if Tenant refuses or neglects to commence such repairs or replacements within thirty (30) days (or ten (10) days in the event that such refusal or neglect would have an adverse effect on the business operations of any occupant of the Building or unreasonably interfere with such occupant's use, enjoyment or occupancy of its demised premises) after such demand or to complete the same with reasonable diligence thereafter, Landlord may (but shall not be required to do so), following notice to Tenant of Landlord's intention to do so, make or cause such repairs or replacements to be made and shall not be responsible to Tenant for any loss or damage that may accrue to Tenant's stock or business by reason thereof. If Landlord makes or causes such repairs or replacements to be made, Tenant agrees that Tenant will forthwith, on demand, pay to Landlord as Additional Rent the actual out-of-pocket cost to Landlord thereof, together with interest thereon at the Lease Interest Rate from the date Landlord incurred such cost through the date of Tenant's payment therefor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>SERVICES</u>. Subject to the provisions of Sections 14.3 and 20.12, Landlord agrees to provide, during the Lease Term, the services set forth in Exhibit D annexed hereto to the Building and the Premises during Operating Hours (as defined in Exhibit D).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>TELECOMMUNICATIONS</u>. In addition to and in connection with the conduit/riser space provided for the connection of Tenant's telecommunication systems as set forth in Section 2.2(a) above and Exhibit Y attached hereto, Landlord shall (i) permit Tenant to gain access to the facilities of the telecommunications providers that service the Building (which as of the date hereof are Verizon and Time Warner Cable) from time to time through the telecommunication closet(s) on the floors of the Building where the Premises is located, (ii) provide Tenant with non-exclusive access at not less than two (2) points of entry in diverse locations on the basement level of the Building for Tenant's and other Tenant's telecommunication service providers and (iii) allow space in the main telecommunications room (i.e., the "meet-me" room) in the basement of the Building to be utilized for the installation of telecommunications equipment by Tenant's telecommunication service providers, if required (it being understood that Landlord's granting such access to Tenant shall not constitute Landlord's agreement to provide telecommunications services to Tenant or to otherwise have responsibility for the operation or security thereof). Landlord acknowledges that Tenant shall have the right to make arrangements to obtain cable television and other telecommunications service from one or more of the cable television and other telecommunications service providers for the area in which the Building is located, and Landlord agrees to provide any such cable television and other telecommunications service providers with reasonable access to the Building, at no additional cost to Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>WIRELESS INTERNET SERVICE</u>. Subject to the terms of this Section 7.5, Tenant shall have the right to install wireless systems in the Premises, including, without limitation, wireless systems that enable users to access the Internet or cellular telephone systems. Tenant shall not solicit other occupants of the Building to use wireless services that emanate from the Premises. Tenant shall not permit the signals of Tenant's wireless systems (if any) to interfere in any material respect with any Building systems or with any other occupant's use of other portions of the Building. Tenant acknowledges that Landlord may establish reasonable Rules and Regulations in accordance with Section 20.13 hereof to reasonably coordinate the use of wireless systems by occupants of the Building (it being understood that such Rules and Regulations may allocate radio frequencies among occupants of the Building to the extent permitted by applicable Requirements and to the extent reasonably practicable and at no additional cost to Tenant (other than to a *de minimis* extent)), provided that no such additional or amended Rules and Regulations shall materially reduce Tenant's rights or materially increase Tenant's obligations under this Lease. Tenant shall operate Tenant's wireless systems (if any) in accordance with applicable laws, regulations and/or municipal codes. Tenant shall provide to Landlord from time to time, reasonably promptly after Landlord's request, a description of technical specifications of the wireless systems (if any) that Tenant uses in the Premises. Nothing contained in this Section 7.5 diminishes Tenant's obligation to perform Alterations in accordance with the provisions of Article 8 hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>PARKING</u>. At no additional rent or other charges to Tenant hereunder (except as otherwise expressly set forth in Section 6.2 of this Lease or the penultimate sentence of this Section 7.6), Landlord shall provide Tenant with fifty percent of all reserved parking spaces (the "<u>Parking Garage Spaces</u>") available in the parking garage of the Building (the "<u>Parking Garage</u>") for use by Tenant's employees, agents and invitees; provided, however, the number of such Parking Garage Spaces shall not be less than five (5) (and shall be rounded up to the extent there is an odd number of total parking spaces available). Landlord shall have no obligation to provide parking spaces to Tenant in addition to the number of parking spaces indicated in this Section 7.6, and any additional spaces Landlord elects in its sole discretion to lease to Tenant shall be subject to availability and at one hundred percent (100%) of the then current market rate. Tenant shall have vehicular access to the Parking Garage twenty-four (24) hours a day, seven (7) days a week. Landlord shall provide to Tenant at no cost to Tenant a transponder for each of Tenant's Parking Garage Spaces which will permit Tenant's employees entry to and from the Parking Garage. Any additional or replacement transponders will be purchased by Tenant at the then current Building standard charge, which is currently $100.00 per transponder. Landlord shall provide, throughout the term of this Lease, lighting in the Parking Garage in accordance with standards for a structured parking structure for a Class A office building. Tenant shall have the right, at Tenant's sole cost and expense, to double stack cars so as to increase Tenant's allocable number of Parking Garage Spaces, provided that (1) such double stacking shall be permitted by, and at all times in accordance with, all applicable legal requirements; (2) Tenant obtains all necessary governmental and regulatory approvals for such double stacking; (3) Tenant shall comply with all of Landlord's reasonable rules and regulations adopted from time to time with respect thereto provided no such rules or regulations shall be enforced in a discriminatory fashion against Tenant or adversely impact Tenant's rights hereunder; (4) such double-stacking shall not impede ingress to or egress from the Parking Garage; and (5) Tenant shall, at its sole cost and expense , install, maintain and monitor any and all equipment required in connection with such double stacking of cars and any such installation shall be deemed to be an Alteration and shall be performed in full compliance with the terms and conditions of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>BIKE STORAGE</u>. At no additional rent or other charges to Tenant hereunder (except as otherwise expressly set forth in Section 6.2 of this Lease), Landlord shall provide Tenant with fifty percent of all reserved bike spaces (the "<u>Bike Spaces</u>") available in the bike storage room of the Building (the "<u>Bike Storage Room</u>") for use by Tenant's employees, agents and invitees; provided, however, the number of such Bike Spaces shall not be less than five (5) (and shall be rounded up to the extent there is an odd number of total bike spaces available). Landlord shall have no obligation to provide bike spaces to Tenant in addition to the number of parking spaces indicated in this Section 7.7, and any additional spaces Landlord elects in its sole discretion to lease to Tenant shall be subject to availability and at one hundred percent (100%) of the then current market rate. Tenant shall have access to the Bike Storage Room twenty-four (24) hours a day, seven (7) days a week, provided Tenant shall cause its employees, agents and invitees to access the Bike Storage Room in the manner and from the location determined by Landlord in its reasonable discretion. Landlord shall provide, throughout the term of this Lease, commercially reasonable lighting in the Bike Storage Room. Tenant shall have the right, at Tenant's sole cost and expense, to install bicycle racks so as to increase Tenant's allocable number of Bike Spaces, provided that (1) such installation shall be permitted by, and at all times in accordance with, all applicable legal requirements; (2) Tenant obtains all necessary governmental and regulatory approvals for such installation; (3) Tenant shall comply with all of Landlord's reasonable rules and regulations adopted from time to time with respect thereto provided no such rules or regulations shall be enforced in a discriminatory fashion against Tenant or adversely impact Tenant's rights hereunder; (4) such installation shall not impede ingress to or egress from the Bike Storage Room; and (5) Tenant shall, at its sole cost, install, maintain and monitor any and all equipment required in connection with such bicycle racks and any such installation shall be deemed to be an Alteration and shall be performed in full compliance with the terms and conditions of this Lease.

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<u>ARTICLE 8</u>

<u>ALTERATIONS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT'S RIGHTS</u>. Tenant may from time to time during the Lease Term, at its expense, make such alterations, additions, installations, substitutions, improvements and decorations (collectively, with Tenant's Work, referred to as "Alterations") in and to the Premises as Tenant may consider necessary or desirable for the conduct of its business in the Premises, subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the outside appearance or the strength of the Building or any of its structural parts shall not be affected, except as may be set forth in the Plans and Specifications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; no part of the Building outside of the Premises shall be physically affected other than to a *de minimis* extent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; no other tenant or occupant of the Building, and no common area of the Building, shall be affected other than to a *de minimis* extent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the proper and economical functioning of the Building systems or facilities of the Building or any portion thereof shall not be adversely affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; before proceeding with any Alterations, Tenant shall obtain Landlord's written consent (which consent shall not be unreasonably withheld, conditioned or delayed) and submit to Landlord for approval plans and specifications for the work to be performed. Within ten (10) Operating Days (or five (5) Operating Days in the case of any resubmissions in response to Landlord comments) after its receipt of a submission of plans and specifications, Landlord shall either consent thereto or specify any objections thereto. If Landlord does not respond to Tenant's request for approval within such ten (10) Operating Day period (or five (5) Operating Day period in the case of resubmissions in response to Landlord comments), then Tenant shall have the right to give Landlord a second notice requesting such approval and, provided such second request for approval shall prominently specify that Landlord's failure to approve or disapprove the same within five (5) Operating Days after Landlord's receipt thereof constitutes an approval thereof, then in the event Landlord fails to approve or disapprove such plans and specifications within such five (5) Operating Day period, Landlord shall be deemed to have approved the same. Notwithstanding the foregoing, Tenant shall have no obligation to obtain Landlord's consent or approval in connection with (A) any decorative or cosmetic work, such as paintings, carpeting or wall coverings or (B) any Alterations, provided that, with respect to this clause (B), (i) Tenant gives Landlord at least ten (10) Operating Days' prior notice describing such Alterations in reasonable detail (including setting forth the name(s) and address(es) of the contractor(s) whom Tenant desires to perform such Alterations and providing copies of any plans and specifications for the work to be performed), (ii) a building, alteration or other governmental permit is not required or otherwise filed in connection therewith, (iii) the Building systems or facilities of the Building or any portion thereof shall not be affected and (iv) such Alterations, together with all Alterations in the prior six (6) months, do not cost, in the aggregate, in excess of $500,000.00 (the "Alteration Threshold"). The Alteration Threshold shall be increased on each Adjustment Date by the CPI Fraction. As used herein (i) the term "CPI Fraction" shall mean, as of each January 1st during the Lease Term (an "Adjustment Date"), a fraction (a) the numerator of which is the CPI for the CPI Month immediately preceding such Adjustment Date and (b) the denominator of which is the CPI for the CPI Month immediately preceding the date of this Lease, and (ii) the term "CPI Month" shall mean a particular calendar month for the determination of the CPI Fraction;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord may as a reasonable condition of its consent (to the extent required pursuant to the terms hereof) require Tenant (A) to perform all such work at such times and in such manner as to create the least practicable interference with the use of the Building by the other tenants and occupants thereof, including, but without limitation, on an "overtime" basis, (B) to make reasonably required revisions in and to its plans and specifications, and/or (C) to agree to remove, at or prior to the Expiration Date, any item of work shown on Exhibit O attached hereto (collectively, "Specialty Alterations"), and to restore the affected portion of the Premises. Notwithstanding clause (A) of the previous sentence, Tenant shall not be obligated to do such work on an "overtime" basis (x) with respect to Tenant's Work as long as there are no other parties occupying office space in the Building for the conduct of business and subject to Landlord's priority for completion of any base Building work or (y) following the completion of Tenant's Work, if there are other parties occupying office space in the Building for the conduct of business, unless the performance of such work during Operating Hours shall materially adversely affect the use of common areas or the operation of the Building, result in a material reduction of Building services required to be provided by Landlord pursuant to this Lease, require access to space in the Building occupied by other tenants who are conducting business, or materially interfere with the use and occupancy of the Building by other tenants and occupants (such activities to include, but not be limited to core drilling, removal of slabs and demolition). Landlord hereby agrees, subject to the terms of this Article 8 (including, without limitation, the requirement that Tenant obtain Landlord's reasonable approval of any plans and specifications relating thereto), that Tenant shall have the right, at its option, to (A) construct client facing and/or executive bathrooms in the Premises, (B) make cosmetic upgrades to the finishes in the elevator vestibule and common corridors of the mezzanine level of the Building that provide access to the Mezzanine Premises (the "Mezzanine Premises Work") (it being agreed that if Tenant performs Mezzanine Premises Work, Tenant shall be responsible for the incremental maintenance, repair and cleaning of such elevator vestibule and common corridors required as a result of the Mezzanine Premises Work), (C) install, move or reroute any computer or communications wiring and stations in the Premises, (D) install supplemental heating, ventilation and air-conditioning systems (and piping related thereto) to service the Premises, (E) install telecommunications risers and conduits between floors of the Premises in core areas and designated by Landlord, and (F) make cosmetic upgrades to the finishes in the elevator vestibule and common corridors of the tenth (10<sup>th</sup>) floor of the Building that provide access to the Office Premises (the "10<sup>th</sup> Floor Work") (it being agreed that if Tenant performs 10<sup>th</sup> Floor Work, Tenant shall be responsible for the incremental maintenance, repair and cleaning of such elevator vestibule and common corridors required as a result of the 10<sup>th</sup> Floor Work); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in performing the work involved in such Alterations, Tenant shall perform, observe and comply with all of the conditions and covenants set forth in the provisions of this Article and the Alteration Rules & Regulations & Design Guidelines reasonably promulgated by Landlord from time to time for the Building. The current Alteration Rules & Regulations & Design Guidelines for the Building are attached hereto as Exhibit F.

Landlord's review and/or approval of Tenant's plans and specifications and consent to the performance of the work described therein shall not be deemed an agreement by Landlord that such plans, specifications and work conform with applicable law and insurance requirements, nor shall it be deemed a waiver by Landlord of compliance by Tenant with any provisions of this Lease, nor shall it impose upon Landlord any liability or obligation with respect to such work or the performance thereof.

Subject to the provisions of this Article 8 and Exhibit C hereto, Landlord shall not unreasonably withhold, condition or delay its consent to the installation by Tenant, as part of Tenant's Work, of a security card system for the Premises that is compatible with the Building system for use by Tenant's employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>CONFORMITY WITH LAW</u>. Tenant covenants and agrees that any Alterations made by it to or upon the Premises shall be done in a good and workmanlike manner and in conformity and compliance with all applicable laws, ordinances, regulations and requirements of all public authorities having jurisdiction, and with all applicable requirements of insurers and insurance rating or underwriting organizations, that new materials and equipment of at least equal quality and class to the original installations in the Building shall be employed therein, that the structure of the Building shall not be endangered or impaired thereby and that the Premises shall not be diminished in value thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>PERFORMANCE OF WORK, GOVERNMENTAL APPROVALS, INSURANCE</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All Alterations and installation of furnishings by Tenant (i) shall be coordinated with any work being performed by Landlord and in such manner as to maintain harmonious labor relations and not to damage the Building or interfere with or delay Building construction or operation or increase the cost thereof, (ii) shall not interfere with the use or occupancy of any other tenant or occupant of the Building other than to a *de minimis* extent, (iii) to the extent connected to or involving any portion of the life safety or the programming of BMS systems of the Building, shall be performed, at Tenant's sole cost and expense, by a contractor designated by Landlord in its sole and absolute discretion provided that the charges of such contractor shall be reasonable in relation to the charges of contractors providing similar services in other first-class office buildings in midtown Manhattan, and (iv) with respect to all Alterations and installations which are not the subject of the foregoing clause (iii), shall be performed by contractors, subcontractors, engineers and/or architects first approved by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed. Landlord hereby initially approves the contractors, subcontractors, engineers and/or architects set forth on Exhibit AA attached hereto (collectively, the "Approved Contractors") for all Alterations (including Tenant's Work).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; With respect to any Alterations, Tenant shall (i) procure all necessary governmental permits, licenses and certificates, (ii) make all required filings of plans with governmental authorities before making any Alterations, (iii) obtain all required governmental approvals upon the completion thereof, and (iv) deliver copies of the items set forth in subsections (i) through (iii) above to Landlord for inspection by Landlord, and, if applicable, for Landlord's approval. Landlord shall (a) as to Tenant's Work, at no cost to Tenant, and (b) with respect to any subsequent Alterations, at no cost to Landlord, execute any applications for permits (if the provisions of any applicable law or legal requirement requires that Landlord join in such application) necessary in connection with any Alterations regardless of whether or not Landlord's approval for such Alterations shall have been obtained; provided, however, that Landlord's execution of any such application shall not be deemed to constitute Landlord's consent to the performance of the work described therein, nor an agreement by Landlord that such plans, specifications and work conform with applicable law and insurance requirements, nor a waiver by Landlord of compliance by Tenant with any provisions of this Lease, nor shall it impose upon Landlord any liability or obligation with respect to such work or the performance thereof. Tenant's approved architect shall be permitted to self-certify Tenant's plans and specifications for any Alterations to the extent permitted by the New York City Department of Buildings. Upon completion of any Alterations, Tenant shall deliver to Landlord (A) an architect's certificate from Tenant's architect certifying that the Alterations have been completed substantially in accordance with the approved plans and specifications and (B) three (3) complete "as built" or field marked sets of Tenant's plans and specifications prepared on an AutoCAD Computer Assisted Drafting and Design System (or such other system or medium reasonably approved by Landlord and generally used in the industry) using naming conventions issued by the American Institute of Architects in June, 1990 (or such other naming conventions as Landlord may reasonably accept) and magnetic computer media of such record drawings and specifications, translated into in a format compatible with AutoCAD Release 2000 or later or another format reasonably acceptable to Landlord. Tenant shall use an expediter designated by Landlord in connection with making such filings and obtaining such permits, licenses, certificates and approvals provided that the charges of such expediter shall be reasonable in relation to the charges of expediters providing similar services in other first-class office buildings in midtown Manhattan. At any and all times during the period of construction of any Alterations, Landlord shall be entitled to have a representative or representatives on the site to inspect such Alterations, and such representative or representatives shall have free and unrestricted access to any and every part of the Premises, provided that such representative or representatives shall use commercially reasonable efforts to minimize interference with Tenant's performance of such Alterations. Tenant shall keep full and accurate records of the cost of any Alterations in and to the Premises costing in excess of the then applicable Alterations Threshold, in the aggregate, for a period of three (3) years after performing such Alterations, and, subject to the foregoing limitations of this sentence, shall make the same available to Landlord for use in connection with any proceeding to review the assessed valuation of the Building or any proceedings to acquire the Land and Building for public or quasi-public use.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant agrees to save harmless and indemnify Landlord and all other Landlord Parties from and against any and all injury, loss, claims, damage and expense (including attorneys' fees and disbursements) to any person or property occasioned by or arising out of the performance of any Alterations pursuant to the provisions of Section 11.1 hereof, except to the extent resulting from the gross negligence or willful misconduct of Landlord or any of the Landlord Parties. In addition, Tenant shall carry or cause each contractor to carry the insurance required pursuant to Section 11.13 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as hereinafter provided, in connection with the making of any Alterations, Tenant shall (i) make all arrangements for, and shall pay all expenses incurred in connection with, use of the freight elevator(s) serving the Premises during non-Operating Hours, and (ii) other than with respect to Tenant's Work, pay to Landlord the actual out-of-pocket third-party charges incurred by Landlord for reviewing Tenant's plans and specifications and making any inspections that Landlord reasonably deems necessary during the performance of such Alterations and for other services performed or costs reasonably incurred by Landlord in connection with such Alterations. Notwithstanding anything to the contrary contained herein or in Exhibit D attached hereto, Landlord shall waive all charges for Tenant's use of the freight elevator(s) during non-Operating Hours for usage by Tenant in connection with Tenant's Work and initial move into the Premises; provided, however, Tenant acknowledges and agrees that (1) in all instances the freight elevator(s) at the Property shall be operated on a reserved (and first-come, first-served) basis and (2) Tenant shall be responsible for any and all damage caused by Tenant's use of the freight elevators and shall, within thirty (30) days following an invoice therefor, pay all costs actually incurred by Landlord in connection with the repair of any such damage. Furthermore, in connection with Tenant's Work, to the extent installed by Landlord and available for use, Landlord shall permit Tenant to access and use any exterior hoist at the Property at no charge to Tenant on a non-exclusive, reserved and first-come, first-served basis; provided, however, Tenant acknowledges and agrees that Tenant shall be responsible for any and all damage caused by Tenant's use of the hoist and shall, within thirty (30) days following an invoice therefor, pay all costs actually incurred by Landlord in connection with the repair of any such damage. Notwithstanding anything to the contrary contained herein, Landlord agrees to keep the hoists operational until the freight elevators are in working order and available for Tenant's use (on a non-exclusive, reserved and first-come, first served basis), and to the extent Tenant requires use of the hoists during non-Operating Hours, Tenant shall be responsible only for the premium time cost (i.e., in excess of the standard cost during Operating Hours on Operating Days) for hoist operation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>LIENS</u>. Tenant shall promptly pay and discharge all costs and expenses of any work done in or on the Premises by Tenant or its subtenants, and its and their agents, employees or contractors, and shall not do or fail to do any act which shall or may render the Building or any part thereof, or the Premises or any part thereof subject to any mechanic's lien or other lien or security agreement or charge or chattel mortgage or conditional bill of sale or title retention agreement (hereinafter collectively called "Lien"), and if any Lien be filed against the Building, the Premises, any Alterations, or any portion of any of the foregoing, as a result of Tenant's violation of this Section 8.4, Tenant shall, at Tenant's own cost and expense, cause the same to be removed of record by bonding or otherwise within thirty (30) days after Tenant has received notice (from any Person) of the filing of any such Lien; and, in default thereof, Landlord may upon prior notice to Tenant, in addition to any other rights and remedies it may have by reason of Tenant's default, cause any such Lien to be removed of record by payment or bond or otherwise, as Landlord may elect, and Tenant shall reimburse Landlord as Additional Rent for all actual out-of-pocket costs and expenses incidental to the removal of any such Lien incurred by Landlord, together with interest thereon at the Lease Interest Rate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>VIOLATIONS; DISRUPTION</u>. Tenant, at its expense, and with diligence, shall cause to be discharged or cancelled all notices of violation arising from any Alterations performed by or on behalf of Tenant (other than the Delivery Conditions and the Base Building Conditions) which are issued by the Department of Buildings of The City of New York or any other public or quasi-public authority having jurisdiction. Nothing contained in this Section 8.5 shall prevent Tenant from contesting, in good faith and at its own expense, any such notices of violation, provided that Tenant shall comply with the provisions of Section 9.3 hereof. Landlord hereby acknowledges that, in connection with Tenant's Work, Tenant desires to employ, or permit the employment of, contractors, subcontractors, mechanics and laborers which may not be affiliated with any labor unions (collectively, "such Labor"). Tenant acknowledges that it is a material consideration to Landlord permitting such engagement by Tenant of such Labor that Tenant shall not exercise any of its rights under this Article 8 or any other provision of this Lease, or use or occupy the Premises, in such manner as would be reasonably likely to or does create any work stoppage, picketing, labor disruption or dispute or a violation of any of Landlord's union contracts affecting the Land or Building, or which would unreasonably interfere with the business of Landlord or of any tenant or occupant of Building (collectively, a "Labor Disruption"). In the event of Tenant's failure to comply with the preceding sentence, Tenant shall, as soon as practicable following notice from Landlord (which notice may be given by e-mail (i.e., electronically)), cease (until Landlord gives its written consent to resume) all manner of exercise of such rights (and stop any work or activity) which give rise to such failure to comply and shall take all action necessary to resolve any such failure to comply. If Tenant shall fail to cease such manner of exercise of its rights as aforesaid, Landlord, in addition to any other rights available to it under this Lease and pursuant to law, shall have the right to seek an injunction without notice to the Tenant and in no event shall Tenant have any claim for damages against any Landlord Party nor shall the Rent Concession Period be extended as a result of any of Landlord's actions with respect to the foregoing. Notwithstanding anything to the contrary contained herein, Landlord and Tenant expressly agree if any such Labor Disruption shall occur at any time and of any duration and Landlord shall give notice (which notice may be given by e-mail (i.e., electronically)) thereof to Tenant, then such Labor Disruption shall be conclusively deemed to constitute a Tenant Delay pursuant to the terms of this Lease as of the date of Landlord's initial notice given to Tenant. In addition, it is expressly understood and agreed that (a) Landlord shall not be responsible for any loss or damage to the Premises or Tenant's Property arising out of or directly associated with any Labor Disruption, and (b) during the continuance of any such Labor Disruption and for a reasonable period of time thereafter, Landlord shall be permitted to prioritize the sequencing and scheduling of the Base Building Delivery Conditions and Landlord's construction with respect to the redevelopment of the Building.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT'S PROPERTY</u>. Except as otherwise provided in this Section 8.6, all work, construction, repairs, Alterations, other improvements or installations made to or upon the Premises (including, but not limited to, the construction performed by Landlord or Tenant under Article 4 and Exhibit C), whether or not at the expense of Tenant, shall become part of the Premises and shall become the property of Landlord and remain upon and be surrendered with the Premises as a part thereof upon the Expiration Date or earlier termination of the Lease Term. Notwithstanding the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All personal property not permanently affixed to the Building, including moveable partitions, business and trade fixtures, machinery and equipment, communications and office equipment, whether or not attached to or built into the Premises, which are installed in the Premises by or for the account of Tenant, at Tenant's expense (and without any contribution to the cost thereof from Landlord) and can be removed without material damage to the Building, and all furniture, furnishings, equipment, goods, supplies, wares and merchandise and other moveable articles of personal property owned by Tenant and located in the Premises (all of which are herein referred to as "Tenant's Property") shall remain the property of Tenant and may be removed by Tenant or any person claiming under Tenant at any time or times during the Lease Term and (with the exception of special cabinet work or property which is built into the Premises and custom-fitted furniture or cabinetry) shall be removed by Tenant at the expiration or earlier termination of the Lease Term. Tenant shall repair any damage to the Premises occasioned by the removal by Tenant or any person claiming under Tenant of any Tenant's Property from the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At the Expiration Date or earlier termination of the Lease Term, unless otherwise specified in writing by Landlord, Tenant shall remove from the Premises any Specialty Alterations made to the Premises for which such removal was made a condition of such consent under Section 8.1 or Exhibit C (or as set forth on Exhibit O). Upon such removal Tenant shall restore the Premises to their condition prior to installation of such Specialty Alterations (or, in connection with Tenant's Work, fully demolished to Landlord's reasonable satisfaction) and repair any damage occasioned by such removal and restoration. Notwithstanding the foregoing, Tenant shall have the option to elect that Landlord remove any such Specialty Alterations and restore the Premises to their condition prior to installation of such Specialty Alterations (or, in connection with Tenant's Work, fully demolished to Landlord's reasonable satisfaction), and, in such event, Tenant shall reimburse Landlord, as Additional Rent within thirty (30) days after demand, for Landlord's reasonable, actual out-of-pocket costs incurred in connection with such removal and restoration thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any items of Tenant's Property (except money, securities and like valuables) which remain on the Premises after the Expiration Date or earlier termination of the Lease Term may, at the option of Landlord, be deemed to have been abandoned and in such case may either be retained by Landlord as its property or may be disposed of without accountability, at Tenant's expense, in such manner as Landlord may see fit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If at any time during the Lease Term, Tenant ceases using any wiring or cabling installed by or on behalf of Tenant in any portion of the Premises or in any other portions of the Building (other than a cessation that is temporary and where Tenant intends to resume using such wiring or cables within a reasonable period of time after such cessation), Tenant shall endeavor to give written notice to Landlord of such cessation (provided that any failure to give such notice shall not constitute a Tenant default). In order for Landlord and Tenant to (i) identify any wiring or cabling installed by or on behalf of Tenant in any portion of the Premises or in any other portions of the Building and/or (ii) trace the starting and terminating points of such wiring and cabling, Tenant shall cause such wiring and cabling to be labeled and tagged, when installed, with appropriate identification marks and shall maintain, during the Lease Term for all then existing wiring and cabling, "as installed" drawings containing a guide or key to such marks and showing the routing of such wiring and cabling. Upon Landlord's request, Tenant shall provide to Landlord and Landlord's representatives and contractors reasonable access to such "as installed" drawings for inspection and copying. Notwithstanding anything to the contrary contained in this Lease, Tenant shall not have any obligation, upon the expiration or earlier termination of this Lease, to remove any wiring or cabling installed by or on behalf of Tenant in any portion of the Premises or in any other portions of the Building, as long as Tenant has complied with the obligations set forth in this paragraph.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>SURVIVAL</u>. The provisions of this Article 8 shall survive the expiration or sooner termination of this Lease.

<u>ARTICLE 9</u>

<u>LAWS, ORDINANCES, REQUIREMENTS OF PUBLIC AUTHORITIES</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>CERTIFICATE OF OCCUPANCY AND PERMITS</u>. Landlord covenants and agrees that, throughout the Lease Term, Landlord shall obtain and maintain a certificate of occupancy for the Building and any other permits that may be required by applicable legal requirements, that will permit the Premises (including, without limitation, the Expansion Space in the event that Tenant exercises the Expansion Option in accordance with the terms and conditions of Section 26.1) to be used and occupied for general office purposes and, if such certificate of occupancy or other permit, as the case may be, is temporary, Landlord shall renew the same as necessary so that at all times during the Lease Term such certificate will permit the Premises to be used and occupied for general office purposes. Landlord shall (1) not take any action (including seeking or affirmatively consenting to any change in legal requirements) which would prevent Tenant from using and occupying the Premises (and the License Area) for the applicable Permitted Uses and (2) at Tenant's sole reasonable cost and expense and subject to and in accordance with Section 10.5 and Exhibit C below, reasonably cooperate with, and cause Landlord's architect to cooperate and coordinate with, Tenant (and Tenant's Architect) in connection with Tenant applying for and/or obtaining any governmental licenses or permits to allow Tenant to (1) install the Specialty Alterations set forth on Exhibit O attached hereto and (2) use and occupy the Premises (and the License Area) for the Permitted Uses; provided, however, (1) Landlord shall only be obligated to so cooperate so long as such cooperation does not have a material adverse effect on the Property or Landlord's rights and obligations with respect to the ownership, development, operation and/or maintenance thereof, provided, further, that to the extent that the same may result in additional costs to Landlord, such costs shall not constitute a material adverse effect in the event that Tenant pays such additional costs, as the same may be incurred from time to time, (2) Tenant shall reimburse Landlord within thirty (30) days of Landlord's demand, as Additional Rent, for any and all reasonable out-of-pocket fees, costs and expenses actually incurred by Landlord in connection with Tenant's requests and in cooperating with Tenant as provided in this Section 9.1, including, without limitation, the reasonable cost and expenses of Landlord's counsel, consultants and professionals and (3) except as expressly set forth in Section 5.1(b) above, no diminution or abatement of rent or other compensation shall or will be claimed by Tenant as a result of, nor shall this Lease or any of the obligations of Tenant be affected or reduced by reason of, any inability by Tenant to obtain any governmental licenses or permits (with respect to the Specialty Alterations, Permitted Uses or otherwise).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT'S RIGHT TO CONTEST</u>. If Tenant receives notice of any violation of any law or requirement of public authority or requirement of insurance bodies applicable to the Premises, it shall give prompt notice thereof to Landlord. Tenant may, at its expense, contest the validity or applicability of any such law or requirement of public authority or requirement of insurance bodies by appropriate proceedings prosecuted diligently and in good faith, and may defer compliance therewith, provided that (i) Landlord is not thereby subjected to criminal prosecution or criminal or civil penalty of any nature, (ii) no unsafe or hazardous condition remains unremedied, (iii) the Premises, or any part thereof, shall not be subject to being condemned or vacated by reason of such non-compliance or such contest, (iv) no insurance policy carried in respect of the Property by Landlord is cancelled and no premium for any such policy is increased by reason of such non-compliance or such contest (unless Tenant pays for such increase), and (v) such non-compliance or contest shall not constitute or result in any violation of any Underlying Lease or any mortgage on the Building, and Tenant complies with all requirements of all such Underlying Leases or mortgages including those, if any, relating to the furnishing of security. Tenant hereby agrees to indemnify and save Landlord harmless from and against any loss, liability, damage and expense arising out of any such deferral of compliance or contest, including, without limitation, reasonable attorneys' fees and disbursements and other expenses reasonably incurred by Landlord, and Tenant shall keep Landlord advised as to all settlements of such contest. Landlord agrees to execute any document reasonably required by Tenant in order to permit Tenant effectively to carry on any such contest, provided Landlord is not thereby subjected to any cost or expense or exposed to any liability or obligation on account thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>WINDOW CLEANING</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.1.&nbsp;&nbsp;&nbsp;&nbsp; Tenant will not clean, nor require, permit, suffer or allow any window in the Premises to be cleaned, from the outside in violation of Section 202 of the New York Labor Law or of the rules of the New York City Board of Standards and Appeals or of any other board or body having or asserting jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that Landlord requires access to the License Area in order to perform exterior window cleaning, (i) Landlord shall provide Tenant not less than forty eight (48) hours prior notice of the date upon which Landlord wishes to so access the Premises, (ii) Tenant shall have the right to reasonably request that such window cleaning be re-scheduled and Landlord and Tenant shall reasonably cooperate to coordinate the date(s) and times of such access by Landlord, so as to not unreasonably interfere with Tenant's business operations or other activities conducted within the Premises (including, without limitation, any scheduled events), and (iii) the Landlord's Repair Conditions shall otherwise apply, to the extent applicable, to any such access by Landlord.

<u>ARTICLE 10</u>

<u>USE</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>OFFICE USE</u>. Except as provided by Section 10.2, Tenant shall use and occupy the Office Premises only for executive, administrative and general offices and a trading floor in connection with Tenant's business and for no other purpose. Subject to the other provisions of this Lease (including all exhibits) and the Rules and Regulations then in effect, Tenant shall have access to the Premises twenty-four (24) hours per day, seven (7) days per week, 365/366 days per year. As used herein, the term "Permitted Use" shall mean, collectively, the use of the Premises permitted pursuant to this Section 10.1 or Section 10.2.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ADDITIONAL PERMITTED USES</u>. Tenant may, in addition to using the Premises for the purposes permitted by Section 10.1 but subject to Tenant's compliance in respect thereof with the provisions of Section 9.2, also use portions of the Premises for the installation, maintenance and operation in the Premises of (a) athletic and athletic facilities (including, without limitation, a tennis facility with a regulation-size tennis court, gym and locker facilities, pool and hot and cold tubs) as shown in the Plans and Specifications or otherwise approved by Landlord in writing, (b) (i) electronic data processing equipment, word processing equipment and business machines, (ii) duplicating equipment, in each case used for purposes incidental to the business of Tenant with electrical loads and floor loads not to exceed the respective load capacities set forth in Exhibit F, (c) a messenger and mail room facility (it being agreed that any such messenger and mail room facility may be located in the Mezzanine Premises), (d) a reproduction, printing and copying facility, (e) the operation of computers, data processing, word processing and other business machines, including telephone, fax and other telecommunications equipment required for the normal conduct of business at the Premises, (f) employee lounges, (g) a library, file rooms, pantries, meeting, training, seminar and conference centers and rooms, (h) for other service providers occupying portions of the Premises for the services provided to Tenant or any Tenant Party, such as a travel office or copy center, and otherwise as permitted hereunder, (i) the sale of snack foods, beverages and other convenience items to occupants of the Premises and guests by vending machines, (j) one or more automatic teller machines for use by occupants of the Premises (the "ATM Use"), (k) the storage of equipment, books, records, files and other items for the ordinary conduct of business at the Premises, (l) rooms for training Tenant's employees and audiovisual and closed circuit television facilities and similar technologies for video conferencing, (m) conference center and meeting rooms, (n) trading facilities, (o) a full cooking kitchen and other ancillary kitchen services (the "Kitchen") for the preparation, cooking and dispensing of food (including employee cafeterias and executive dining rooms) solely for, and the consumption of food solely by, Tenant and its guests and invitees (but not other tenants in the Building or the general public) as shown in the Plans and Specifications or otherwise approved by Landlord in writing, provided, and upon the express conditions that, notwithstanding anything to the contrary contained in this Lease, (i) Tenant shall be responsible for and shall pay for all cleaning of, and garbage and refuse removal from, such space and for any necessary extermination and ventilation, (ii) Tenant, at Tenant's sole cost and expense, shall store and dispose of all garbage and refuse generated in connection with the use and operation of the Kitchen in compliance with Section 9.2 and the other provisions of this Lease and with all other reasonable requirements that Landlord may reasonably adopt, (iii) Tenant, at Tenant's sole cost and expense, shall install, operate and maintain in good working order (and shall provide Landlord with copies of the applicable maintenance contracts), a kitchen exhaust system (the "Kitchen Exhaust System") which shall include a grease separation precipitation system of the Roto-clone or Smog Hog type (or other type reasonably acceptable to Landlord) equipped with grease filters and chemical filters to remove grease and odors, and outside air intake and kitchen exhaust ductwork running to the roof or other location at the Building approved under New York City building code (exhaust only) and reasonably acceptable to Landlord, (iv) all range hoods for the Kitchen Exhaust System shall be of the water wash down type and shall be equipped with Ansul fire extinguishing systems, (v) all motors for the Kitchen Exhaust System shall be kept out of the air stream, (vi) Tenant shall take all reasonable steps to prevent sound originating in the Premises from being audible outside of the Premises (other than to a *de minimis* extent) and, in connection with the construction of the Kitchen and the installation of the Kitchen Exhaust System, Tenant shall install suitable sound insulation in such areas within the Kitchen and the Premises as are necessary so that sound shall not emanate from the Premises, subject to the reasonable approval and satisfaction of Landlord and (vii) any Alterations (y) made with respect to the installation or removal of any exhaust louver for the Kitchen Exhaust System or restoration of any part of the Building affected by such installation or removal, or (z) affecting the curtain wall or the appearance of the exterior of the Building, shall be subject to Landlord's prior written consent in each instance, which consent may not be unreasonably withheld, conditioned or delayed, (p) with respect to the License Area, recreational outdoor uses and for the installation by Tenant of certain improvements and landscaping, in compliance with applicable legal requirements, and (q) other uses customary and incidental to the Permitted Uses for which the Premises are then being used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>RESTRICTIONS</u>. Tenant shall not permit the Premises or any part thereof to be used in any manner, or anything to be done therein, or permit anything to be brought into or kept in the Premises, which would (i) violate any law or requirement of public authorities or requirement of insurance bodies, (ii) cause structural injury to the Building or any part thereof, (iii) interfere with the normal operation of the HVAC, plumbing, electrical or other mechanical or electrical systems of the Building or the elevators installed therein, (iv) constitute a public or private nuisance, (v) alter the appearance of the exterior of the Building, (vi) affect in any adverse way any portion of the interior of the Building other than the Premises, (vii) interfere with the use or occupancy of any other tenant or occupant of the Building other than to a *de minimis* extent, (viii) create any offensive odors or noise or (ix) result in the leakage of fluid or the growth of mold or the creation of any other condition which causes an internal air quality problem in the Premises or the Building. Tenant shall not solicit other occupants of the Building to use wireless internet service that emanates from the Premises. Tenant shall use commercially reasonable efforts to prevent the signals of Tenant's wireless internet service (if any) from interfering in any material respect with any Building systems.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>PROHIBITED USES</u>. Without limiting the restriction on use set forth in Section 10.1, Tenant shall not under any circumstance use or permit the use of the Premises or any part thereof for any of the following which are expressly prohibited:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) sale at retail to the general public of any products or materials whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the conduct of a public auction of any kind;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the conduct of a retail commercial bank, trust company, savings bank, safe deposit or savings and loan association or any branches of any of the foregoing or a loan company business (except for (i) the conduct of a credit union or benefit plan for Tenant's employees or in connection with Tenant's business but not, in any event, on a walk-in basis open to the public and (ii) the ATM Use);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the issuance and sale of traveler's checks, foreign drafts, letters of credit, foreign exchange or domestic money orders or the receipt of money for transmission, other than in connection with Tenant's business but not, in any event, on a walk-in basis open to the public;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) an employment agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) offices or agencies of a foreign government or political subdivisions thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) offices of any governmental bureau or agency of the United States or any state or political subdivision thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) residential purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) offices of any public utility company, other than corporate, executive or legal staff offices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) data processing services which are not strictly ancillary to Tenant's business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a clerical support business rendering clerical support services primarily to others than Tenant or performing functions other than those which are strictly ancillary to Tenant's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; reservation centers for airlines or for travel agencies other than to the extent strictly ancillary to Tenant business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any pornographic or obscene purposes, any commercial sex establishment, any pornographic, obscene, nude or semi-nude performances, modeling, materials, activities or sexual conduct or any other similar use that would reasonably be expected to have a material adverse effect on Landlord's financial condition, the value of the Building or the income therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a showroom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; subject to Section 20.13(a), any other use or purpose which is prohibited under the Rules and Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>LICENSES AND PERMITS</u>. If any governmental license or permit (other than the Building certificate of occupancy as provided by Section 9.1) shall be required for the proper and lawful conduct of Tenant's business in the Premises (including any of the uses set forth in Section 10.2 above), or any part thereof, including, specifically, but without limitation, any place of assembly permit or any amendment to the Building certificate of occupancy, except to the extent required to be obtained and/or maintained by Landlord pursuant to Section 9.1, Tenant, at its expense, shall duly apply for, procure and thereafter maintain such license or permit and submit the same to Landlord for inspection by Landlord. Tenant's application for and procurement of any such license, permit or amendment shall be subject to Landlord's review and approval, which shall not be unreasonably withheld, conditioned or delayed. Tenant shall at all times comply with each such license and permit and shall not at any time use or occupy, or suffer or permit anyone to use or occupy, the Premises, or do or permit anything to be done in the Premises, in violation of the certificate of occupancy for the Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <u>HAZARDOUS SUBSTANCES</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No Tenant Party shall store, place, generate, manufacture, refine, handle, or locate on, in, under or around the Premises, the Building or Property any "Hazardous Substance" (as defined below), except for (x) storage, handling and use of reasonable quantities and types of cleaning fluids and office supplies in the Premises in the ordinary course and the prudent conduct of Tenant's business in the Premises or in connection with the maintenance, repair or operation of any of Tenant's athletic facilities permitted pursuant to the terms of this Lease and (y) materials and supplies typically and lawfully used in connection with the performance of Alterations of the type being undertaken by Tenant as part of Tenant's Work. Tenant agrees that (i) the storage, handling, use and disposal of such permitted Hazardous Substances must at all times conform to all applicable laws and requirements of public authorities and to applicable fire, safety and insurance requirements; and (ii) the types and quantities of permitted Hazardous Substances which are stored in the Premises must be reasonable and appropriate to the nature and size of Tenant's operation in the Premises and reasonable and appropriate for similar first-class office buildings in midtown Manhattan. Tenant shall indemnify, defend and hold harmless Landlord Parties from and against any and all claims, damages, losses, actions, causes of actions, proceedings, liens, fines, penalties, costs, expenses and liabilities arising out of any breach of any provision of this paragraph, which expenses shall also include laboratory testing fees, personal injury claims, clean-up costs and environmental consultants' fees and attorneys' fees. Tenant agrees that Landlord may be irreparably harmed by Tenant's breach of this paragraph and that an injunction and/or specific performance action may appropriately be brought by Landlord; provided that, Landlord's election to bring or not bring any such injunction and/or specific performance action shall in no way limit, waive, impair or hinder Landlord's other remedies against Tenant. As used in this Lease, the term "Hazardous Substance" shall mean and include any chemical, material, element, compound, solution, mixture, substance or other matter of any kind whatsoever which is now or later designated, classified, listed or regulated under any law, statute, ordinance, rule, regulation, order or ruling of any agency of the State of New York, the United States Government or any local governmental authority, including, without limitation, asbestos, petroleum, petroleum hydrocarbons and petroleum based products, urea formaldehyde foam insulation, polychlorinated biphenyls and freon and other chlorofluorocarbons.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Without limiting Tenant's rights under Section 3.1, Section 3.2 and/or Section 4.1(f) hereof, Landlord shall remove or remediate any Hazardous Substances found in the Premises and, to the extent having a materially adverse effect on the performance of Tenant's Work and/or the occupancy and use of the Premises for the Permitted Use, the Building, during the Lease Term in each case to the extent existing prior to the date of this Lease or caused by a Landlord Party and required by applicable laws, or to the extent caused by a breach of Landlord's representation in Section 4.1(b) of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event that any governmental authority having jurisdiction shall or shall threaten to either prevent or limit the use of the License Area by Tenant for the Permitted Use, then, upon the request by Tenant and at Tenant's sole cost and expense, Landlord shall use its commercially reasonable efforts and cooperate with Tenant to contest same.

<u>ARTICLE 11</u>

<u>INDEMNITY AND INSURANCE</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 <u>TENANT'S INDEMNITY</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Indemnity</u>. To the fullest extent permitted by law, Tenant waives any right to contribution against the Landlord Parties (as hereinafter defined) and agrees to indemnify and save harmless the Landlord Parties from and against all claims of whatever nature arising from or claimed to have arisen from (i) any act, omission or negligence of the Tenant Parties (as hereinafter defined); (ii) any accident, injury or damage whatsoever caused to any person, or to the property of any person, occurring in or about the Premises from the earlier of (A) the date on which any Tenant Party first enters the Premises for any reason or (B) the Access Date, and thereafter throughout and until the end of the Lease Term and after the end of the Lease Term for as long after the Lease Term as Tenant or anyone acting by, through or under Tenant is in occupancy of the Premises or any portion thereof; (iii) any accident, injury or damage whatsoever occurring outside the Premises but within the Building, or on common areas or the Property, where such accident, injury or damage results, or is claimed to have resulted, from any act, omission or negligence on the part of any of the Tenant Parties; or (iv) any breach of this Lease by Tenant. Tenant shall pay such indemnified amounts as they are incurred by the Landlord Parties. This indemnification shall not be construed to deny or reduce any other rights or obligations of indemnity that a Landlord Parties may have under this Lease or the common law. Notwithstanding anything contained herein to the contrary, (y) Tenant shall not be obligated to indemnify a Landlord Party for any claims to the extent that such Landlord Party's damages in fact result from such Landlord Party's negligence or willful misconduct and (y) that in no event shall Tenant be liable for any indirect or consequential damages. Landlord shall provide notice of any third party claim to Tenant for which Landlord or any Landlord Party seeks indemnification by Tenant pursuant to this Section 11.1 as soon as reasonably practicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Breach</u>. In the event that Tenant breaches any of its indemnity obligations hereunder or under any other contractual or common law indemnity, Tenant shall pay to the Landlord Parties all actual liabilities, loss, cost, or expense (including reasonable out of pocket attorney's fees) incurred as a result of said breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>No limitation</u>. The indemnification obligations under this Section shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for Tenant or any subtenant or other occupant of the Premises under workers' compensation acts, disability benefit acts, or other employee benefit acts. Tenant waives any immunity from or limitation on its indemnity or contribution liability to the Landlord Parties based upon such acts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Subtenants and other occupants</u>. Tenant shall require its subtenants and other occupants of the Premises to provide similar indemnities to the Landlord Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Survival</u>. The terms of this Section shall survive any termination or expiration of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Costs</u>. The foregoing indemnity and hold harmless agreement shall include indemnity for all costs, expenses and liabilities (including, without limitation, reasonable attorneys' fees and disbursements) actually incurred by the Landlord Parties in connection with any such claim or any action or proceeding brought thereon, and the defense thereof. In addition, in the event that any action or proceeding shall be brought against one or more Landlord Parties by reason of any such claim, Tenant, upon request from the Landlord Party, shall resist and defend such action or proceeding on behalf of the Landlord Party by counsel appointed by Tenant's insurer (if such claim is covered by insurance without reservation) or otherwise by counsel reasonably satisfactory to the Landlord Party. The Landlord Parties shall not be bound by any compromise or settlement of any such claim, action or proceeding without the prior written consent of such Landlord Parties, which consent shall not be unreasonably withheld, conditioned or delayed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT'S RISK</u>. Tenant agrees to use and occupy the Premises, and to use such other portions of the Building and the Property as Tenant is given the right to use by this Lease at Tenant's own risk. The Landlord Parties shall not be liable to the Tenant Parties for any damage, injury, loss, compensation, or claim (including, but not limited to, claims for the interruption of or loss to a Tenant Party's business) based on, arising out of or resulting from any cause whatsoever, including, but not limited to, repairs to any portion of the Premises or the Building or the Property, any odors or vibrations, any fire, robbery, theft, or any other crime or casualty, the actions of any other tenants of the Building or of any other person or persons, or any leakage in any part or portion of the Premises or the Building or the Property, or from water, rain or snow that may leak into, or flow from any part of the Premises or the Building or the Property, or from drains, pipes or plumbing fixtures in the Building or the Property. Any goods, property or personal effects stored or placed in or about the Premises shall be at the sole risk of the Tenant Party, and neither the Landlord Parties nor their insurers shall in any manner be held responsible therefor. The Landlord Parties shall not be responsible or liable to a Tenant Party, or to those claiming by, through or under a Tenant Party, for any loss or damage that may be occasioned by or through the acts or omissions of persons occupying adjoining premises or any part of the premises adjacent to or connecting with the Premises or any part of the Building or otherwise. Notwithstanding the foregoing, the Landlord Parties shall not be released from liability for any injury, loss, damages or liability to the extent arising from any gross negligence or willful misconduct of the Landlord Parties on or about the Premises; provided, however, in no event shall the Landlord Parties have any liability to a Tenant Party based on any loss with respect to any interruption in the operation of Tenant's business, except as otherwise expressly provided in this Lease. The provisions of this Section shall be applicable to the fullest extent permitted by law, and until the expiration or earlier termination of the Lease Term, and during such further period as Tenant may use or be in occupancy of any part of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>TENANT'S COMMERCIAL GENERAL LIABILITY INSURANCE</u>. Tenant agrees to maintain in full force on or before the earlier of (i) the date on which any Tenant Party first enters the Premises for any reason or (ii) the Access Date and thereafter throughout and until the end of the Lease Term of this Lease and after the end of the Lease Term for as long after the Lease Term as Tenant or anyone acting by, through or under Tenant is in occupancy of the Premises or any portion thereof, a policy of commercial general liability insurance, on an occurrence basis, issued on a form at least as broad as Insurance Services Office ISO") Commercial General Liability Coverage "occurrence" form CG 00 01 10 01 or another ISO Commercial General Liability "occurrence" form providing equivalent coverage. Such insurance shall include broad form contractual liability coverage, specifically covering but not limited to the indemnification obligations undertaken by Tenant in this Lease. The minimum limit of liability of such insurance shall be Five Million Dollars ($5,000,000) per occurrence. In addition, in the event Tenant hosts a function in the Premises, Tenant agrees to obtain, and cause any persons or parties providing services for such function to obtain, the appropriate insurance coverages as determined by Landlord (including liquor liability coverage, if applicable) and provide Landlord with evidence of the same.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT'S PROPERTY INSURANCE</u>. Tenant shall maintain at all times during the Term of the Lease, and during such earlier time as Tenant may be performing work in or to the Premises or have property, fixtures, furniture, equipment, machinery, goods, supplies, wares or merchandise on the Premises, and continuing thereafter so long as Tenant is in occupancy of any part of the Premises, insurance against loss or damage covered by the so-called "special form" type insurance coverage with respect to Tenant's Property and all Alterations and Tenant's Work in the Premises, and other property of Tenant located at the Premises. The "special form" insurance required by this Section shall be in the amount of the full replacement cost of Tenant's Property and all Alterations and Tenant's Work in the Premises, and other property of Tenant located at the Premises. In addition, during such time as Tenant is performing any Alterations or Tenant's Work in or to the Premises, Tenant, at Tenant's expense, shall also maintain, or shall cause its contractor(s) to maintain, builder's risk or equivalent coverage for the full insurable value of such Alterations or Tenant's Work. In the event of loss or damage covered by the "special form" insurance required by this Section, the responsibilities for repairing or restoring the loss or damage shall be determined in accordance with Section 12.2. If Tenant defaults in its obligation to repair or restore loss or damage to Tenant's Work or Alterations, or if this Lease is terminated or expires prior to completion of such repair or restoration, Landlord shall have the right to receive the proceeds of Tenant's "all risk" insurance therefor, and such right shall survive the expiration or earlier termination of this Lease. Landlord shall not be obligated to insure, and shall not assume any liability of risk of loss for, Tenant's Property, Tenant's Work or Alterations, including any such property or work of Tenant's subtenants or occupants. Landlord will also have no obligation to carry insurance against, nor be responsible for, any loss suffered by Tenant, subtenants or other occupants due to interruption of Tenant's or any subtenant's or occupant's business. The insurance required to be maintained by Tenant pursuant to this Section 11.4 may be carried under blanket insurance policies covering the Premises and other properties owned or leased by Tenant or Tenant's Affiliates, so long as such policies comply with this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT'S OTHER INSURANCE</u>. Throughout the Lease Term, Tenant shall obtain and maintain (1) comprehensive automobile liability insurance (covering any automobiles owned or operated by Tenant) issued on a form at least as broad as ISO Business Auto Coverage form CA 00 01 07 97 or other form providing equivalent coverage; (2) worker's compensation insurance or participation in a monopolistic state workers' compensation fund; and (3) employer's liability insurance or (in a monopolistic state) Stop Gap Liability insurance. Such automobile liability insurance shall be in an amount not less than One Million Dollars ($1,000,000) for each accident. Such worker's compensation insurance shall carry minimum limits as defined by the law of the jurisdiction in which the Premises are located (as the same may be amended from time to time). Such employer's liability insurance shall be in an amount not less than One Million Dollars ($1,000,000) for each accident, One Million Dollars ($1,000,000) disease-policy limit, and One Million Dollars ($1,000,000) disease-each employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>REQUIREMENTS FOR INSURANCE</u>. All insurance required to be maintained by Tenant pursuant to this Lease shall be maintained with responsible companies that are authorized to do business, and are in good standing, in the jurisdiction in which the Premises are located and that have a rating of at least "A" and are within a financial size category of not less than "Class X" in the most current Best's Key Rating Guide or such similar rating as may be reasonably selected by Landlord. All such insurance shall: (1) be acceptable in form and content to Landlord; and (2) be primary and noncontributory. Tenant shall give Landlord prompt written with respect to cancellation, failure to renew or non-renewal of any insurance policy required to be maintained by Tenant hereunder. No such policy shall contain any deductible or self-insured retention greater than $25,000 for liability insurance or $100,000 for property insurance. Such deductibles and self-insured retentions shall be deemed to be "insurance" for purposes of the waiver in Section 11.12 below. Landlord reserves the right from time to time to require Tenant to obtain higher minimum amounts of insurance based on such limits as are customarily carried with respect to similar properties in the area in which the Premises are located. The minimum amounts of insurance required by this Lease shall not be reduced by the payment of claims or for any other reason. In the event Tenant shall fail to obtain or maintain any insurance meeting the requirements of this Article, or to deliver such policies or certificates as required by this Article, Landlord may, at its option, on five (5) days' notice to Tenant, procure such policies for the account of Tenant, and the cost thereof shall be paid to Landlord within five (5) days after delivery to Tenant of bills therefor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ADDITIONAL INSUREDS</u>. To the fullest extent permitted by law, the commercial general liability and auto insurance carried by Tenant pursuant to this Lease, and any additional liability insurance carried by Tenant pursuant to Section 11.3 of this Lease, shall name Landlord, Landlord's managing agent, each Mortgagee and Overlandlord and such other persons as Landlord may reasonably request from time to time as additional insureds with respect to liability arising out of or related to this Lease or the operations of Tenant (collectively "Additional Insureds"). Such insurance shall provide primary coverage without contribution from any other insurance carried by or for the benefit of Landlord or the Additional Insureds. Such insurance shall also waive any right of subrogation against each Additional Insured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>CERTIFICATES OF INSURANCE</u>. On the Access Date, Tenant shall furnish Landlord with certificates evidencing the insurance coverage required by this Lease, and renewal certificates shall be furnished to Landlord at least annually thereafter, and prior to the expiration date of each policy for which a certificate was furnished. (Acceptable forms of such certificates for liability and property insurance are ACCORD 25 and ACCORD 27, respectively.) Upon request by Landlord, a true and complete copy of any insurance policy required by this Lease shall be delivered to Landlord within ten (10) days following Landlord's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>SUBTENANTS AND OTHER OCCUPANTS</u>. Tenant shall require its subtenants and other occupants of the Premises to provide written documentation evidencing the obligation of such subtenant or other occupant to indemnify the Landlord Parties to the same extent that Tenant is required to indemnify the Landlord Parties pursuant to Section 11.1 above, and to maintain insurance that meets the requirements of this Article, and otherwise to comply with the requirements of this Article. Tenant shall require all such subtenants and occupants to supply certificates of insurance evidencing that the insurance requirements of this Article have been met and shall forward such certificates to Landlord on or before the earlier of (i) the date on which the subtenant or other occupant or any of their respective direct or indirect partners, officers, shareholders, directors, members, trustees, beneficiaries, servants, employees, principals, contractors, licensees, agents, invitees or representatives first enters the Premises or (ii) the commencement of the sublease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.10&nbsp;&nbsp;&nbsp;&nbsp; <u>NO VIOLATION OF BUILDING POLICIES</u>. Tenant shall not knowingly commit or permit any violation of the policies of fire, boiler, sprinkler, water damage or other insurance covering the Property and/or the fixtures, equipment and property therein carried by Landlord, or knowingly do or permit anything to be done, or keep or permit anything to be kept, in the Premises, which in case of any of the foregoing (i) would result in termination of any such policies, (ii) would adversely affect Landlord's right of recovery under any of such policies, or (iii) would result in reputable and independent insurance companies refusing to insure the Property or the property of Landlord in amounts reasonably satisfactory to Landlord.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.11&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT TO PAY PREMIUM INCREASES</u>. If, because of anything done, caused or permitted to be done, or omitted by Tenant (or its subtenant or other occupants of the Premises) that is not permitted by Section 10.1 above, the rates for liability, fire, boiler, sprinkler, water damage or other insurance on the Property or on the property and equipment of Landlord or any other tenant or subtenant in the Building shall be higher than they otherwise would be, Tenant shall reimburse Landlord for the additional insurance premiums thereafter paid by Landlord (including for reimbursement by Landlord to any of the other tenants and subtenants in the Building) which shall have been charged because of the aforesaid reasons, such reimbursement to be made from time to time within thirty (30) days following Landlord's demand therefor together with a reasonably detailed statement setting forth the basis for such additional insurance premiums. Landlord shall use reasonable efforts to include a covenant, similar to the immediately preceding sentence, in each lease or other agreement for space in the Building entered into after the date hereof and shall not enforce the same against Tenant in a discriminatory manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12&nbsp;&nbsp;&nbsp;&nbsp; <u>WAIVER OF SUBROGATION</u>. To the fullest extent permitted by law, the parties hereto waive and release any and all rights of recovery against the other, and agree not to seek to recover from the other or to make any claim against the other, and in the case of Landlord, against all "Tenant Parties" (hereinafter defined), and in the case of Tenant, against all "Landlord Parties" (hereinafter defined), for any loss or damage incurred by the waiving/releasing party to the extent such loss or damage is insured under any insurance policy required by this Lease or which would have been so insured had the party carried the insurance it was required to carry hereunder. Tenant shall obtain from its subtenants and other occupants of the Premises a similar waiver and release of claims against any or all of the Tenant Parties and the Landlord Parties. In addition, the parties hereto (and in the case of Tenant, its subtenants and other occupants of the Premises) shall procure an appropriate clause in, or endorsement on, any insurance policy required by this Lease pursuant to which the insurance company waives subrogation. The insurance policies required by this Lease shall contain no provision that would invalidate or restrict the parties' waiver and release of the rights of recovery in this section. The parties hereto covenant that no insurer shall hold any right of subrogation against the parties hereto by virtue of such insurance policy.

The term "Landlord Party" or "Landlord Parties" shall mean Landlord, any affiliate of Landlord (excluding Tenant), Landlord's managing agents and leasing agents for the Building, Landlord's asset manager for the Building, each Overlandlord, each Mortgagee, and each of their respective direct or indirect partners, officers, shareholders, directors, members, trustees, beneficiaries, servants, employees, principals, contractors, licensees, agents or representatives. For the purposes of this Lease, the term "Tenant Party" or "Tenant Parties" shall mean Tenant, any affiliate of Tenant (excluding Landlord), any permitted subtenant or any other permitted occupant of the Premises, and each of their respective direct or indirect partners, officers, shareholders, directors, members, trustees, beneficiaries, servants, employees, principals, contractors, licensees, agents, invitees or representatives.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.13&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT'S WORK AND ALTERATIONS</u>. During such times as Tenant is performing Tenant's Work or Alterations or having work or services performed in or to the Premises, Tenant shall require its contractors, and their subcontractors of all tiers, to obtain and maintain commercial general liability, automobile, workers compensation, employer's liability, builder's risk or equivalent coverage, and equipment/property insurance in such amounts and on such terms as are specified in the Work Letter attached hereto as Exhibit C. The commercial general liability and auto insurance carried by Tenant's contractors and their subcontractors of all tiers pursuant to this section shall name Landlord and the Additional Insureds as additional insureds with respect to liability arising out of or related to their work or services. Such insurance shall provide primary coverage without contribution from any other insurance carried by or for the benefit of Landlord or the Additional Insureds. Such insurance shall also waive any right of subrogation against each Additional Insured. Tenant shall obtain and submit to Landlord, prior to the earlier of (i) the entry onto the Premises by such contractors or subcontractors or (ii) commencement of the work or services, certificates of insurance evidencing compliance with the requirements of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.14&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD'S INDEMNITY</u>. (a) Subject to the limitations in Section 14.1(d) and in Section 11.2 and Section 11.13 of this Article, and to the extent not resulting from any act, omission, fault, negligence or misconduct of Tenant or its contractors, licensees, invitees, agents, servants or employees, Landlord agrees to indemnify and save harmless Tenant from and against any claim by a third party arising from any injury to any person occurring in the Premises or in the Building or on the Property after the Access Date and until the expiration or earlier termination of the Lease Term, to the extent such injury results from the negligence or willful misconduct of Landlord or Landlord's employees, or from any breach or default by Landlord in the performance or observance of its covenants or obligations under this Lease; provided, however, that in no event shall Landlord be liable for any indirect or consequential damages. Tenant shall provide notice of any such third party claim to Landlord as soon as practicable. Landlord shall have the right, but not the duty, to defend the claim. The provisions of this Section shall not be applicable to (i) the holder of any Mortgage now or hereafter on the Property or Building (whether or not such holder shall be a mortgagee in possession of or shall have exercised any rights under a conditional, collateral or other assignment of leases and/or rents respecting the Property or Building), or (ii) any person acquiring title as a result of, or subsequent to, a foreclosure of any such Mortgage or a deed in lieu of foreclosure, except to the extent of liability insurance maintained by either of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The foregoing indemnity and hold harmless agreement shall include indemnity for all costs, expenses and liabilities (including, without limitation, reasonable attorneys' fees and disbursements) actually incurred by the Tenant Parties in connection with any such claim or any action or proceeding brought thereon, and the defense thereof. In addition, in the event that any action or proceeding shall be brought against one or more Tenant Parties by reason of any such claim, Landlord, upon request from the Tenant Party, shall resist and defend such action or proceeding on behalf of the Tenant Party by counsel appointed by Tenant's insurer (if such claim is covered by insurance without reservation) or otherwise by counsel reasonably satisfactory to the Tenant Party. The Tenant Parties shall not be bound by any compromise or settlement of any such claim, action or proceeding without the prior written consent of such Tenant Parties, which consent shall not be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The terms of this Section 11.14 shall survive any termination or expiration of this Lease.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.15&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD'S INSURANCE</u>. Landlord agrees to maintain in full force and effect throughout the Term so-called "all-risk" insurance with respect to the Building (excluding Tenant's Property, Tenant's Work and Alterations) in an amount equal to the replacement cost thereof with customary exclusions and exceptions and subject to such deductibles as Landlord may reasonably determine; provided, however, that if (i) such insurance coverage ceases to be available or (ii) the cost of such insurance coverage increases so that owners of similar properties in midtown Manhattan generally cease to carry such insurance, Landlord shall maintain such insurance coverage as is customarily maintained by prudent owners or operators of similar properties in midtown Manhattan and available at costs then being paid by prudent owners or operators of similar properties in midtown Manhattan. The cost of such insurance and other insurance elected by Landlord shall be treated as a part of Operating Expenses. Any or all of Landlord's insurance may be provided by blanket coverage maintained by Landlord or any affiliate of Landlord under its insurance program for its portfolio of properties, or by Landlord or any affiliate of Landlord under a program of self-insurance, and in such event Operating Expenses shall include the portion of the reasonable cost of blanket insurance or self-insurance that is allocated to the Building.

<u>ARTICLE 12</u>

<u>FIRE, CASUALTY OR TAKING</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>RIGHT TO TERMINATE LEASE</u>. (a) Tenant shall give prompt notice to Landlord in case of fire or other casualty in the Premises. Upon the occurrence of a Major Casualty (as hereinafter defined), Landlord shall have the right to terminate this Lease by notice to Tenant given within ninety (90) days of the occurrence of a Major Casualty (such termination to be effective at Tenant's option on any Operating Day during the ninety (90) day period after the giving of such notice by Landlord, but in no event after the date on which the original Expiration Date (as the same may have been extended pursuant to the exercise of the Extension Option) had been scheduled to occur (it being agreed that if Landlord fails to notify Tenant of such termination date, such termination date shall be deemed to be the earlier to occur of (w) the date on which the original Expiration Date (as the same may have been extended pursuant to the exercise of the Extension Option) had been scheduled to occur or (x) the last Operating Day in such ninety (90) day period)); provided that in any such case Landlord terminates all of the office leases the RSF of which is equal to one hundred percent (100%) of the Building Office Space (including this Lease). If either (y) the Premises shall be totally or substantially damaged (<u>i.e.</u>, damage greater than twenty-five percent (25%) of the full insurable value of the Premises) or rendered wholly or substantially untenantable (whether or not any other portions of the Building shall be damaged) or (z) the Building shall be substantially damaged, so that Tenant's access to or use and enjoyment of greater than twenty-five percent (25%) of the RSF of the Premises shall be rendered substantially untenantable, whether or not the Premises shall be damaged, and in case of either (y) or (z) a reputable third party engineer, architect or contractor retained by Landlord reasonably determines that the same cannot reasonably be expected to be restored or rendered tenantable within a period of fifteen (15) months after the occurrence of such damage or destruction, then Landlord shall promptly notify Tenant of such fact, and within thirty (30) days thereafter, Tenant may terminate this Lease by providing written notice to Landlord (such termination to be effective at Tenant's option on any Operating Day during the ninety (90) day period after the giving of such notice by Tenant, but in no event after the date on which the original Expiration Date (as the same may have been extended pursuant to the exercise of the Extension Option) had been scheduled to occur (it being agreed that if Tenant fails to notify Landlord of such termination date, such termination date shall be deemed to be the earlier to occur of (a) the date on which the original Expiration Date (as the same may have been extended pursuant to the exercise of the Extension Option) had been scheduled to occur or (b) the last Operating Day in such ninety (90) day period)). As used herein, the term "Major Casualty" shall mean the occurrence of a fire in, or other casualty to, the Building (whether or not the Premises or a portion thereof shall be damaged), which fire or other casualty (i) results in damages the cost of which to repair or restore is equal to at least thirty percent (30%) of the full insurable value of the Building and/or (ii) renders untenantable at least thirty percent (30%) of the RSF in the Building where, in the case of either of clause (i) or (ii) above, such portion of the Building so affected by such fire or other casualty cannot be reasonably expected to be restored or rendered tenantable within a period of fifteen (15) months after the occurrence of such fire or other casualty.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If during the last twenty-four (24) months of the Lease Term (including any exercised renewal or extension thereof), the Premises shall be damaged by fire or casualty, and a reputable third party engineer, architect or contractor retained by Landlord determines that such fire or casualty damage, whether to the Premises or the Building, cannot be expected to be repaired or restored within one hundred eighty (180) days from the time that repair or restoration work would commence or prior to the Expiration Date, whichever first occurs, then Landlord shall promptly notify Tenant of such fact, and within thirty (30) days thereafter then, subject to the terms hereof, either Landlord or Tenant shall have the right to terminate this Lease (such termination to be effective at Tenant's option on any Operating Day during the ninety (90) day period after the giving of such notice by Landlord or Tenant, as the case may be, but in no event after the date on which the original Expiration Date (as the same may have been extended pursuant to the exercise of the Extension Option) had been scheduled to occur (it being agreed that if such party fails to notify the other party of such termination date, such termination date shall be deemed to be the earlier to occur of (x) the date on which the original Expiration Date (as the same may have been extended pursuant to the exercise of the Extension Option) had been scheduled to occur or (y) the last Operating Day in such ninety (90) day period)); <u>provided</u>, <u>however</u>, if Landlord exercises any such termination option, then Tenant may, at its option, within fifteen (15) days after receipt of such notice from Landlord, exercise the Extension Option under Article 32 hereof (to the extent the same is then available and unexpired) with respect to such portion(s) of the Premises to which Landlord's notice of its exercise of its termination right related, in which event this Lease shall remain in effect with respect to such portion(s) of the Premises, subject to the terms of Section 12.1(a) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If either Landlord or Tenant shall give notice of termination pursuant to this Section 12.1, the Lease Term shall expire by lapse of time upon the date which is thirty (30) days after such notice is given and Tenant shall vacate the Premises and surrender the same to Landlord. If Landlord terminates the Lease pursuant to this Section 12.1, Tenant shall not be required to remove any Specialty Alterations and Landlord shall have no claim upon Tenant's insurance covering any leasehold improvements that Tenant is required to insure pursuant to this Lease. If Landlord terminates the Lease pursuant to this Section 12.1, Tenant shall be entitled to remove Tenant's Property from the Premises, but shall not be obligated with respect to any other removal obligations set forth in this Lease. Upon the termination of this Lease under the conditions provided for in this Section 12.1, Tenant's liability for Rent and all other obligations hereunder (except to the extent expressly stated to survive) shall cease as of the date of such termination, subject, however, to abatement thereof between the date of such casualty and the date of such termination pursuant to Section 12.3 below. Tenant hereby expressly waives the provisions of Section 227 of the Property Law or any like law which may hereafter be enacted and agrees that the foregoing provisions of this Article 12 shall govern and control in lieu thereof, this Article 12 being an express agreement governing any case of damage or destruction of the Premises by fire or other casualty.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 <u>RESTORATION OF THE PREMISES</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the Premises or the Building shall be damaged by fire or other casualty and this Lease is not terminated pursuant to <u>Section 12.1</u>, the damage (A) to the Building shall be repaired by and at the expense of Landlord so that (x) access to the Premises and (y) the common areas of the Building serving the Premises shall be substantially the same as on the Base Building Delivery Date, (B) to the Premises shall be repaired (i) by Landlord as to the core, shell, floors, roof, curtain wall, windows, Building systems and other structural elements of the Building located in the Premises substantially the same as on the Access Date, and (ii) by Tenant as to all other elements of the Premises (it being agreed that Tenant shall not be obligated to rebuild any Special Use Area(s) in the Premises, provided that Tenant restores the portion of the Premises in which any such Special Use Area was located to a commercially reasonable condition given the nature of the space), and (C) to the Building systems shall be repaired by Landlord up to and including the point of delivery to each floor of the Premises as on the Access Date and Landlord shall cause a temporary certificate of occupancy for the core and shell with respect to the Premises to be issued (the work to be performed pursuant to the foregoing clauses is referred to collectively as the "Base Building Restoration"). Landlord shall not be obligated to expend for such repairs and restoration any amount in excess of the net insurance proceeds made available to Landlord after deduction therefrom of Landlord's expenses in obtaining such proceeds and any amounts applied by any Overlandlord or Mortgagee to obligations other than restoration of the Building. As used herein, the term "Special Use Area" means any portion of the Premises that is used as a computer room, gymnasium, cafeteria, kitchen, dining area, private bathrooms, showers or a swimming pool. In no event shall Landlord be obligated to repair or restore Tenant's Work, Alterations or Tenant's Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Where Landlord is obligated or otherwise elects to effect restoration of the Premises, unless such restoration is completed within eighteen (18) months from the date of the casualty or, during the last twenty-four (24) months of the Lease Term, one hundred eighty (180) days of the casualty (each such period to be subject, however, to extension by one day for each day of Tenant Delay and Unavoidable Delay (but in no event beyond eighteen (18) months from the date of the casualty, or during the last twenty-four (24) months of the Lease Term, one hundred eighty (180) days from the date of the casualty)), Tenant shall have the right to terminate this Lease within thirty (30) days after the expiration of such eighteen (18) month period or one hundred eighty (180) day period, as applicable (as each such period may be extended as hereinabove provided) but prior to the time that the restoration is substantially completed, such termination to take effect as of the thirtieth (30th) day after such notice is given, with the same force and effect as if such date were the date originally established as the Expiration Date unless, within such thirty (30) day period such restoration is substantially completed, in which case Tenant's notice of termination shall be of no force and effect and this Lease and the Lease Term shall continue in full force and effect. In the event that Tenant's right to terminate this Lease in accordance with the terms of this <u>Section 12.2(b)</u> shall have accrued, and Tenant fails to exercise such right within such thirty (30) day period after such right shall have first accrued, then Tenant shall not be able to exercise such right for a period of ninety (90) days after Tenant's right first accrued, and then only if, at such time, the conditions for such exercise shall continue to exist. If Tenant shall not have exercised Tenant's termination right within the time periods aforesaid, Tenant shall have no further right to exercise such termination right thereafter.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Where Landlord is obligated or otherwise elects to effect the repair and restoration of the Premises (other than Tenant's Work, Alterations and Tenant's Property), unless such repair and restoration is completed within fifteen (15) months from the date of the casualty (such period to be subject, however, to extension where the delay in completion of such work is due to causes beyond Landlord's reasonable control (but in no event beyond eighteen (18) months from the date of the casualty)), Tenant shall have the right to terminate this Lease at any time after the expiration of such 15-month period (as extended) but prior to the time that the repair and restoration is substantially completed, such termination to take effect as of the thirtieth (30th) day after such notice is given, with the same force and effect as if such date were the date originally established as the Expiration Date hereof unless, within such thirty (30) day period such restoration is substantially completed, in which case Tenant's notice of termination shall be of no force and effect and this Lease and the Lease Term shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>PAYMENT OF RENT FOLLOWING CASUALTY</u>. Until this Lease is terminated pursuant to Section 12.1 or, if this Lease is not so terminated, until (a) the expiration of such time as is reasonably required for Tenant to restore Tenant's Work and Alterations (but in no event more than eight (8) months after Landlord's restoration work has been completed pursuant to Section 12.2) or (b) the date Tenant completes restoration of Tenant's Work and Alterations, whichever of (a) or (b) is earlier, the Annual Fixed Rent and Tenant's Share of Taxes and Operating Expenses shall be apportioned or adjusted according to the part of the Premises which is usable by Tenant. No damages, compensation or claims shall be payable by Landlord for inconvenience, loss of business or annoyance arising from any repair or restoration of any portion of the Premises or of the Building. If rent abates in respect of all or any portion of the Premises and Tenant reoccupies the Premises or such portion thereof, or any part thereof, for the conduct of Tenant's business operations during the period in which Landlord's restoration work is taking place and prior to the date that the same is made completely tenantable, the Annual Fixed Rent and Tenant's Share of Taxes and Operating Expenses allocable to the space so reoccupied shall be payable from the date of such reoccupancy. Notwithstanding anything in this Section to the contrary, if Landlord shall be unable to collect all of the insurance proceeds (including rent insurance proceeds) payable by reason of any damage to the Building or the Premises under Landlord's insurance policies by reason of any action or inaction by Tenant or failure by Tenant to comply with any of the provisions of this Lease (including without limitation Sections 9.2 and 11.10 hereof) of which Tenant has received reasonable notice from Landlord, then without prejudice to any other remedy which may be available against Tenant, the abatement of rent provided for in this Section 12.3 shall not be effective to the extent of the uncollected insurance proceeds, and the amount of any abatement theretofore taken by Tenant shall be immediately payable to Landlord on demand.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>LICENSE AREA</u>. For purposes of this Article 12, all references to the Premises shall be deemed to include the License Area; provided, however, all calculations with respect to the RSF of the Premises as set forth in this Article 12 shall be calculated without regard to the square footage of the License Area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD NOT TO INSURE ALTERATIONS OR TENANT'S PROPERTY</u>. Landlord is not required to carry insurance of any kind on Tenant's Work, Alterations, Tenant's Property or any telephone, computer or communications systems, cabinet work or special decorative effects and shall not be obligated to repair any damage thereto or to replace the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EMINENT DOMAIN -- COMPLETE OR SUBSTANTIAL TAKING</u>. If all or substantially all of the Building or of the Premises shall be taken by condemnation or in any other manner for any public or quasi-public use or purpose (other than for temporary use or occupancy), the Lease Term shall forthwith cease and terminate as of the date of vesting of title by reason of such taking (which date is hereinafter referred to as the "date of the taking"), and the rent shall be apportioned as of such date. If such portion of the Building shall be so taken so that substantial structural alterations or reconstruction of the Building shall be necessary as a result of such taking (whether or not the Premises be affected), which alterations or reconstruction Landlord reasonably determines will take at least twelve (12) months to complete (or one hundred eighty (180) days if such taking shall occur during the last twelve (12) months of the Lease Term), Tenant may, at its option, terminate this Lease and the Lease Term and estate hereby granted as of the date of such vesting of title by notifying Landlord in writing of such termination within sixty (60) days following the date of the taking. If more than thirty percent (30%) of the total RSF of the Building shall be so taken and Landlord terminates office leases the RSF of which is equal to one hundred percent (100%) of the Building Office Space (including this Lease), then Landlord shall be entitled to terminate this Lease and the Lease Term and estate hereby granted as of the date of such vesting of title by notifying Tenant in writing of such termination within sixty (60) days following the date of the taking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EMINENT DOMAIN -- PARTIAL TAKING</u>. If any part, but less than all or substantially all, of the Premises shall be so taken and this Lease shall not be terminated pursuant to Section 12.6, then the part so taken shall no longer constitute part of the Premises but this Lease shall otherwise remain unaffected by such taking; provided, however, that Tenant may elect to terminate the Lease Term in the event of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a taking of more than twenty percent (20%) of the total rentable area of the Premises, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a taking that has a material adverse effect on Tenant's reasonable access to the Building or the Premises, if Landlord determines that it will be unable to provide or in fact fails to provide adequate and reasonably comparable alternative access to the Premises within thirty (30) days thereafter,

by giving notice of such election to Landlord not later than sixty (60) days after Tenant's receipt from Landlord of notice of such taking or the date of such taking, whichever first occurs, or not later than thirty (30) days after such one hundred eightieth day, as the case may be. If notice of termination of this Lease shall be given pursuant to this Section, then upon such date as may be specified by Tenant by notice to Landlord, which date shall be not earlier than thirty (30) and not later than sixty (60) days after the date of Tenant's notice, the Lease Term shall terminate as of the date specified in such notice and the rent shall be apportioned as of such date of termination. Upon a partial taking and this Lease continuing in force as to any part of the Premises,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Annual Fixed Rent and Tenant's Share of Taxes and Operating Expenses shall be equitably reduced for the remainder of the Lease Term, according to the nature and extent of the loss of use of the Premises suffered by Tenant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord shall, at its expense, restore with reasonable diligence the remaining portions of the Premises as nearly as practicable to the same condition as it was in prior to such condemnation or taking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>AWARD</u>. (a) &nbsp;&nbsp;&nbsp;&nbsp; In the event of any condemnation or taking hereinabove mentioned of all or a part of the Building (whether or not the Premises be affected), Landlord shall be entitled to receive the entire award in the condemnation proceeding, including any award made for the value of the estate vested by this Lease in Tenant, and Tenant hereby expressly assigns to Landlord any and all right, title and interest of Tenant now or hereafter arising in or to any such award or any part thereof, and Tenant shall be entitled to receive no part of such award. The foregoing, however, shall not be deemed to preclude Tenant from recovering a separate award for Tenant's moving expenses, Tenant's Costs (other than Landlord's Contribution), and Tenant's Property, but only provided that such award does not reduce and is not payable out of the amount for the Land and the Building (other than Tenant's Costs with respect to the Premises, excluding Landlord's Contribution).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If all or any part of the Premises shall be taken for a limited period, Tenant shall be entitled, except as hereinafter set forth, to that portion of the award for such taking which represents compensation for the use and occupancy of the Premises, for the taking of Tenant's Property and for moving expenses, and Landlord shall be entitled to that portion which represents reimbursement for the cost of restoration of the Premises. If the period of temporary use or occupancy shall extend beyond the Expiration Date, that part of the award that represents compensation for the use and occupancy of the Premises shall be apportioned between Landlord and Tenant as of the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>NOTICE OF TAKING</u>. Landlord agrees to (a) give Tenant prompt notice of any taking or taking threatened in writing affecting all or any part of the Premises and/or (b) endeavor to give Tenant prompt notice of any taking or taking threatened in writing affecting any part of the Building other than the Premises.

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<u>ARTICLE 13</u>

<u>ASSIGNMENT, SUBLETTING, MORTGAGING</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD'S CONSENT REQUIRED</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as specifically permitted by this Article, Tenant shall not, by operation of law or otherwise, assign, mortgage or encumber this Lease, or sublet or permit the Premises or any part thereof to be used by others. If and so long as Tenant is a corporation with fewer than five hundred (500) shareholders or a limited liability company or a partnership (whether general, limited or limited liability), an assignment, within the meaning of this Article 13, shall be deemed to include one or more sales or transfers of stock or membership or partnership interests, by operation of law or otherwise, or the issuance of new stock or membership or partnership interests, by which an aggregate of more than fifty percent (50%) of Tenant's stock or membership or partnership interests shall be vested in a party or parties who are not stockholders or members or partners as of the date hereof. For the purpose of this Section 13.1, ownership of stock or membership or partnership interests shall be determined in accordance with the principles set forth in Section 544 of the Internal Revenue Code of 1986, as amended from time to time, or the corresponding provisions of any subsequent law. In addition, the merger or consolidation of Tenant into or with any other entity, or the sale of all or substantially all of its assets, shall be deemed to be an assignment within the meaning of this Article 13. The limitations set forth in this Section 13.1(a) shall be deemed to apply to subtenant(s), assignee(s) and guarantor(s) of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Anything in the foregoing Section 13.1(a) to the contrary notwithstanding, an assignment of this Lease or a subletting of the Premises to an entity which controls or is controlled by Tenant or is under common control with Tenant (an "Affiliate") (including, without limitation, as of the date hereof and with respect to Original Tenant, (1) The Pershing Square Foundation, (2) Ackman Management LLC, (3) Ackman Table Management LLC and (4) entities controlled by William Ackman and/or Karen Ackman and/or any trust(s) for the benefit of William Ackman and/or Karen Ackman) (any such Affiliate, a "Permitted Affiliate") shall not require Landlord's consent under this Article 13; provided that: (i) a copy of any applicable instrument of assignment or sublease shall have been promptly delivered to Landlord (subject, however, to any reasonable confidentiality requirements attendant to the transaction), (ii) in the event of an assignment, the successor to Tenant agrees directly with Landlord, by written instrument in form reasonably satisfactory to Landlord, to be bound by all the obligations of Tenant hereunder, (iii) in no event shall Tenant be released from its obligations under this Lease, (iv) any such transfer or transaction is for a legitimate, regular business purpose of Tenant, (v) the Affiliate of Tenant shall be of good reputation and engaged in a business or activity which is in keeping with the standards of the Building and (vi) the provisions of Section 13.5(b), (c), (h), (i), (k), (l) and (m) and Section 13.7 hereof shall be satisfied. If any Affiliate to whom Tenant shall have assigned this Lease or sublet all or any portion of the Premises shall thereafter cease to be an Affiliate of Tenant, then the continuation of such entity's tenancy or occupancy shall be subject to Landlord's consent pursuant to this Article 13. Additionally, Landlord's prior written consent shall not be required in connection with (x) direct or indirect transfers of stock, ownership or beneficial interests of Tenant, for value or otherwise, to the spouse, heirs upon death, immediate family members or trusts established for the benefit of the spouse, heirs upon death, or immediate family members of William Ackman or (y) direct or indirect transfers of stock, ownership or beneficial interests of Tenant, for value or otherwise to the employees of Tenant, so long as (I) William Ackman continues to (A) own at least fifty point one percent (50.1%) of all the issued and outstanding capital stock, ownership or beneficial interests of Tenant, (B) maintain control of the management and operations of Tenant (which control may be maintained pursuant to the possession, directly or indirectly, or as trustee, personal representative or executor, of the power to direct or cause the direction of the management and policies of Tenant, whether through the ownership of voting securities, as trustee, personal representative or executor, by contract or credit arrangement) and (C) actually supervises the management and operations of the Premises, (II) a complete and accurate copy of all instruments of any such transaction is delivered to Landlord not later than ten (10) days after the effective date thereof, (III) Tenant shall pay to Landlord, as Additional Rent, the cost of Landlord's reasonable out-of-pocket attorneys' fees in connection with such transaction, if any, (IV) Tenant shall indemnify and hold Landlord's Parties harmless from and against any and all applicable transfer taxes, if any, in connection with such transaction (including, but not limited to, the New York City Real Property Transfer Tax and the New York State Real Estate Transfer Tax) and (V) except to the extent expressly provided herein, no transaction shall relieve Tenant of its obligations and liabilities hereunder (and Tenant shall remain fully liable for the unexpired Term), nor shall the same be deemed a consent to a further assignment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anything in the foregoing Section 13.1(a) to the contrary notwithstanding, (i) transactions with an entity into or with which Tenant is merged or consolidated or (ii) transactions with an entity to which all or substantially all of Tenant's assets (including this Lease) or stock or other equity interests are transferred as a going concern shall not require Landlord's consent under this Article 13; provided that: (A) the successor to Tenant shall either (1) have a tangible net worth, determined in accordance with GAAP consistently applied (or such other market value basis, as certified to Landlord, such certification to be subject to Landlord's reasonable approval), of not less than $250,000,000 or (2) have (x) a tangible net worth in excess of $100,000,000, as more particularly described in clause (1) above and (y) delivered to Landlord an additional security deposit in an amount equal to the Annual Fixed Rent then payable hereunder plus an amount equal to all recurring Additional Rent payable to Landlord for the preceding calendar year, and (B) proof reasonably satisfactory to Landlord of such net worth and earnings shall have been delivered to Landlord within ten (10) days of the effective date of any such transaction (subject, however, to any reasonable confidentiality requirements attendant to the transaction, in which case such proof shall be delivered as soon as possible but in no event later than ten (10) days after the effective date), (D) a copy of any applicable instrument of assignment or sublease shall have been promptly delivered to Landlord (subject, however, to any reasonable confidentiality requirements attendant to the transaction), (E) the successor to Tenant agrees directly with Landlord, by written instrument in form reasonably satisfactory to Landlord, to be bound by all the obligations of Tenant hereunder, (F) in no event shall Tenant be released from its obligations under this Lease, (G) any such transfer or transaction is for a legitimate, regular business purpose of Tenant, (H) the successor to Tenant shall be of good reputation and engaged in a business or activity which is in keeping with the standards of the Building and (I) the provisions of Section 13.5(b), (c), (h), (i), (k), (l) and (m) and Section 13.7 hereof shall be satisfied.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Tenant originally named in this Lease together with any permitted successors and assigns under Section 13.1(b) and (c) is sometimes referred to herein as "Original Tenant".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anything in the foregoing Section 13.1(a) to the contrary notwithstanding, Landlord's consent shall not be required for the occupancy of offices within the Premises by any individual or business entity who or which is a client, service provider or otherwise has a bona fide material business relationship with Tenant (a "Space Occupant"), provided that (i) each Space Occupant shall be of good reputation, and engaged in a business or activity which is in keeping with the standards of the Building and which is a permitted use in accordance with the provisions of Article 10 hereof, (ii) the Space Occupants shall not occupy, in the aggregate, more than ten percent (10%) of the rentable area of the Premises, (iii) the portions of the Premises occupied by the Space Occupants shall be physically part of, and not separately demised from, the remainder of the Premises occupied by Tenant, (iv) no Space Occupant shall have any signage outside of the Premises, nor any listing on the Building's lobby directory, and (v) Tenant shall give Landlord a Space Occupant Notice (as hereinafter defined) with respect to each such Space Occupant at least five (5) Operating Days prior to the commencement of such Space Occupant's occupancy in the Premises. Each such occupancy shall be subject and subordinate to this Lease and to the matters to which this Lease is or shall be subordinate and in the event of the termination of this Lease, such occupancy shall immediately terminate. Occupancy by a Space Occupant shall not be deemed to vest in such Space Occupant any right or interest in this Lease nor shall it relieve, release, impair or discharge any of Tenant's obligations hereunder. Each "Space Occupant Notice" given by Tenant to Landlord pursuant to this Section 13.1 shall include (A) the name and the nature of the business or occupation of such Space Occupant and (B) the material terms of such Space Occupant's occupancy. The rights granted by this Section 13.1(c) are personal to Original Tenant and shall be void if the interest of the tenant under the Lease is otherwise assigned or transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 &nbsp;&nbsp;&nbsp;&nbsp; <u>TRANSFER NOTICE</u>. Subject to Tenant's compliance with Section 13.3 below, if Tenant shall have received and negotiated a bona fide written offer from an independent third party which it desires to accept to sublet all or any part of the Premises or to assign this Lease, then, in connection with obtaining Landlord's consent pursuant to and in accordance with this Article 13, Tenant shall submit to Landlord a notice (any such notice being hereinafter called an "Transfer Notice") containing the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the name and address of the proposed subtenant or assignee and a brief description of such person's or entity's business, current financial information in respect of such person or entity (including, without limitation, its most recent balance sheet and income statements certified by its chief financial officer or a certified public accountant), the identity of any broker entitled to a commission in respect of such subletting or assignment and the commission, if any, payable to such broker, and any other information reasonably requested by Landlord; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a duplicate original of the offer (containing, in the case of an assignment, a provision for assumption by the assignee of all of the terms, covenants, conditions and agreements herein contained on Tenant's part to be performed for the Lease Term), or an executed term sheet setting forth the material economic terms of the proposed assignment or sublease, the effective date of which shall be at least thirty (30) Operating Days but not more than one hundred twenty (120) Operating Days after the date of the giving of such notice, which shall be conditioned on Landlord's consent thereto and which shall comply with the provisions of Section 13.5.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD'S RIGHT TO UNDERLET</u>. (a) If Tenant intends to sublet all or more than 10,000 RSF of the Premises, or permit occupancy (other than by Tenant and/or its Affiliates) of any portion of the License Area, Tenant shall submit to Landlord a notice (any such notice being hereinafter called an "Offer Notice") setting forth the material economic terms of the proposed sublease, the effective date of which shall be at least thirty (30) Operating Days but not more than one hundred twenty (120) Operating Days after the date of the giving of such notice and Landlord shall have the option, with respect to each such Offer Notice, exercisable by Landlord in writing within thirty (30) days after receipt of such Offer Notice, to underlet from Tenant the space which Tenant so desires to sublet, for the term for which Tenant desires to sublet it and for a rent equal to the lower of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the rent for which Tenant proposes to sublet such space, as set forth in the Offer Notice and the instruments which accompany such notice, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1) the rent which Tenant by the terms of this Lease is required to pay for the rentable area of the space so to be sublet, plus (2) the annual Leasehold Improvement Payment (as hereinafter defined) applicable thereto,

such underlease to be upon the covenants, agreements, terms, provisions and conditions contained in this Lease except as hereinafter provided and except for such thereof which are irrelevant or inapplicable and, without limiting the generality of the foregoing, it is hereby expressly agreed that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; such underlease to Landlord shall give the undertenant the unqualified and unrestricted right, without Tenant's permission, (x) to assign such underlease or any interest therein and/or to underlet from time to time the space covered by such underlease or any parts of such space for any purpose, or purposes that the undertenant, in the undertenant's uncontrolled discretion, shall deem suitable or appropriate, except that Landlord agrees that any such underlease will not be assigned except simultaneously with an assignment of Landlord's interest under this Lease so that at all times the Landlord under this Lease and the undertenant under said underlease shall be the same person, corporation or other entity, and each assignor of such underlease shall thereafter be released of all obligations under such underlease, and (y) unless otherwise provided in the Offer Notice, to make any and all changes, alterations and improvements in the space covered by such underlease deemed desirable by the undertenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; unless otherwise expressly provided in the Offer Notice, such underlease shall provide that (x) any assignee or subtenant of the undertenant may, at the election of the undertenant, be permitted to make alterations, decorations and installations in such space or any part thereof, and (y) any such alterations, decorations and installations therein made by any assignee or subtenant of the undertenant may be removed, or left, in whole or in part, by such assignee or subtenant, at its option, prior to or upon the expiration or other termination of such underlease provided that such assignee or subtenant, at its expense, shall repair the damage and injury to such space so underlet caused by such removal;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; such underlease shall also provide that the parties to such underlease expressly negate any intention that any estate created under such underlease be merged with any other estate held by either of said parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the Offer Notice describes a transaction in which the premises proposed to be sublet shall be separately demised, then Tenant shall and will at all times at its expense provide and permit an appropriate and lawful means of ingress and egress from such space so underlet by Tenant to Landlord, such means of ingress or egress to be specified by Tenant in the Offer Notice with respect to such space;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord, at Landlord's expense if such work would have been performed by the prospective subtenant referred to in Tenant's Offer Notice, or at Tenant's expense if such work would have been performed by Tenant, as described in the Offer Notice, may make such Alterations as may be required or deemed necessary by Landlord physically to separate the underleased space from the balance of the Premises and to comply with all laws and requirements of public authorities relating to such separation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the occupant or occupants of all or any part or parts of such space shall, in common with Tenant, have the use of toilet and other common facilities on the floor on which such space is located but not including any private toilet facilities serving the occupant(s) of one or more particular offices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; unless otherwise provided in the Offer Notice, at the expiration of such underlease, Tenant shall accept the space covered thereby in its then existing condition provided that Landlord shall have performed Landlord's obligations to keep and maintain such space in good order and condition except for ordinary wear and tear (and further provided that in the event of Landlord's failure to perform any of such obligations Tenant shall have no right to terminate this Lease either in whole or as to such part of the space covered by the underlease) but Tenant shall have the right to otherwise seek monetary damages arising out of Landlord's failure to perform such obligations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; no default by Landlord under such underlease or by anyone claiming through such underlease shall be deemed to constitute a default under this Lease and Landlord shall indemnify and hold Tenant harmless from and against any damage to Tenant caused by any undertenant or arising in connection with such underlease; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "Leasehold Improvement Payment" shall mean the portion of the unamortized actual cost incurred by Tenant of the Alterations (including Tenant's Work) in the portion of the Premises (and the License Area, if applicable) covered by such underlease or which such undertenant has the right to use in common with Tenant pursuant to such underlease (but without duplication for multiple undertenants) (or in the case of the termination of this Lease, the unamortized cost of the Alterations (including Tenant's Work) in the entire Premises), after deducting therefrom an allocable portion of the Landlord's Contribution and computed in accordance with generally accepted accounting principles, consistently applied on a straight-line basis over the then Lease Term (excluding any extension or renewal options unless then in effect).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If Landlord refuses or fails to timely exercise its rights to underlet or terminate pursuant to the provisions of Section 13.3 and Section 13.4 with respect to any Offer Notice, then Landlord shall be deemed to have waived and relinquished its rights to underlet or terminate as set forth in Section 13.3 and Section 13.4 with respect only to the applicable Offer Notice, and Tenant, subject to compliance with the rest of this Article 13 (other than Section 13.3 and Section 13.4), shall be free to enter into any transaction with any party for all or any portion of the applicable Premises covered by the Offer Notice, and Tenant shall have no further obligation to offer the applicable Premises covered by the Offer Notice to Landlord (unless Tenant again intends to sublease the applicable Premises following the expiration of a subsequent sublease); provided, however, if Tenant proposes to sublease the applicable Premises covered by the Offer Notice (or any portion thereof) to a third party on terms that are substantially different (as more particularly described below) than those set forth in the Offer Notice within twelve (12) months following the date of the Offer Notice, then Landlord shall once again have a right to underlet or terminate pursuant to the provisions of Section 13.3 and Section 13.4 with respect to the applicable Premises covered by the Offer Notice which shall be superior to any such prospective subtenant, and Tenant must again give an Offer Notice as set forth in this Section 13.3. For the purposes hereof, the terms offered to a prospect shall be deemed to be substantially different from those set forth in the Offer Notice if (a) a sublease pursuant to such terms is not entered into within twelve (12) months of the date of such Offer Notice, or (b) there is more than a five percent (5%) reduction in the "bottom line" cost per rentable square foot of the Premises covered by the applicable Offer Notice to the prospect when compared with the "bottom line" cost per rentable square foot under the Offer Notice, considering all of the economic terms of both deals, respectively, including, without limitation, the length of term, the net rent, any tax or expense escalation or other financial escalation and any financial concessions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD'S RIGHT TO TERMINATE</u>. Upon receipt of any Offer Notice in which Tenant proposes to assign this Lease (which shall include, for purposes of this Section 13.4, a proposed subletting of all or substantially all of the Premises for the entire or substantially the entire remaining Lease Term), or in which Tenant proposes to sublet less than substantially all of the Premises for the entire or substantially the entire remaining Lease Term, then and in such event Landlord shall have the right, exercisable by notice to Tenant given within thirty (30) days after Landlord receives Tenant's Offer Notice and in addition to the other rights granted Landlord under this Article 13, (i) in the case of an assignment, to terminate this Lease, in which event this Lease shall terminate on the date fixed in Landlord's notice, which shall not be less than thirty (30) nor more than ninety (90) days after the giving of such notice, with the same force and effect as if the termination date fixed in Landlord's notice were the date originally fixed in this Lease as the Expiration Date, or (ii) in the case of a subletting of less than substantially all of the Premises, to terminate this Lease with respect to the space proposed by Tenant to be sublet, in which event on the date fixed in Landlord's notice, which shall not be less than thirty (30) nor more than ninety (90) days after the giving of such notice, such space shall no longer be part of the Premises or covered by this Lease and the rentable area of the Premises, the Annual Fixed Rent and Tenant's Share of Taxes and Operating Expenses, and the amount of the Letter of Credit shall be appropriately reduced, provided in either case Landlord shall, on such termination date, pay to Tenant the Leasehold Improvement Payment, discounted to present value using an interest rate equal to the Lease Interest Rate and computed from the date Tenant would have received payment(s) from the assignee or sublessee, as applicable, as expressly set forth in the Offer Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5&nbsp;&nbsp;&nbsp;&nbsp; <u>ADDITIONAL CONDITIONS</u>. Landlord agrees that (i) Landlord will grant or withhold its consent within fifteen (15) days after Landlord's receipt of a copy of the fully executed instrument of sublease or assignment and all other agreements, if any, related to the proposed sublease or assignment, and any other information reasonably requested by Landlord, and (ii) Landlord will not unreasonably withhold, condition or delay its consent to such proposed sublease or assignment provided that the economic terms of the instrument of sublease or assignment conform in all material respects to the Transfer Notice and the following further conditions shall be satisfied (it being agreed that no such request is required for any assignments or sublettings with an Affiliate of Tenant permitted pursuant to the applicable terms of <u>Section 13.1</u> hereof):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Premises or any part thereof shall not, without Landlord's prior consent, have been listed or otherwise publicly advertised for subletting at a rental rate less than the rental rate being sought by Landlord for space in the Building provided that Landlord shall, within five (5) Operating Days after Tenant so requests, have informed Tenant of the rental rate being sought by Landlord for such space, and all advertisements of the Premises or any portion thereof for subletting shall have been approved by Landlord, such approval not to be unreasonably withheld, conditioned or delayed. The foregoing, however, shall not be deemed to prohibit Tenant from negotiating or consummating a sublease at a lower rental rate or engaging the services of a broker or agent to market the proposed assignment or sublet, or prohibit the exchange of correspondence by brokers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; there then exists no Event of Default or default of which Landlord has given Tenant written notice;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the proposed subtenant or assignee is engaged in a business or activity, and the Premises, or the relevant part thereof, will be used in a manner, which (A) is in keeping with the then standards of the Building, (B) is limited to executive, administrative and general offices and such ancillary uses that are Permitted Uses and that are customarily associated with, and incidental to, general office use by subtenants in First Class Buildings and (C) is not prohibited under Section 10.4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event that Landlord reasonably expects within six (6) months of the effective date of the proposed sublease or assignment to have commercial office space in the Building available for lease for a comparable term and which is reasonably comparable to the portion of the Premises that is the subject of such proposed assignment or subletting, then neither (A) the proposed assignee or subtenant is then an occupant or an Affiliate of an occupant of any part of the Building, nor (B) the proposed assignee or subtenant is a Person (or Affiliate of a Person) with whom Landlord or Landlord's agent is then actively negotiating for the rental of comparable space in the Building for a comparable term; <u>provided</u>, <u>however</u>, if under this <u>Section 13.5</u> Landlord shall be deemed to have given its consent to such proposed assignment or sublease, then Landlord may not subsequently claim that such assignment or sublease violates (or is conditioned upon) this clause (d) if Landlord shall have failed to notify Tenant prior to the date on which Landlord shall be deemed to have given its consent to such assignment or sublease that such proposed assignee or subtenant is (I) then an occupant or an Affiliate of an occupant of any part of the Building or (II) a Person (or an Affiliate of a Person) with whom Landlord or Landlord's agent is then actively negotiating for the rental of comparable space in the Building for a comparable term. Landlord shall notify Tenant whether (to Landlord's knowledge) the proposed assignee or subtenant is a Person described in clause (B) above within five (5) Operating Days after receipt by Landlord of a written request for such notification from Tenant or Tenant's request for preliminary approval pursuant to <u>Section 13.13</u> hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Intentionally omitted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the proposed subtenant or assignee is of good reputation with sufficient financial worth considering the responsibility involved and taking into account that Tenant will remain liable under the Lease, and Landlord has been furnished with reasonable evidence of such financial worth (and any sublease shall provide that, upon Landlord's request from time to time, subtenant shall deliver to Landlord a copy of subtenant's most recent financial statements); <u>provided</u>, <u>however</u>, with respect to a proposed subtenant or assignee as to which Landlord has given (or is deemed to have given) preliminary approval pursuant to Section 13.13 hereof, Landlord shall be deemed to have approved the identity of such proposed subtenant or assignee solely for purposes of this clause (f) so long as there is no material change in the reputation or financial condition of such proposed subtenant or assignee prior to the execution, delivery and effectiveness of the applicable sublease or assignment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the character of the business to be conducted or the proposed use of the Premises by the proposed subtenant or assignee shall not (i) be likely to materially increase Landlord's operating expenses beyond that which Landlord now incurs for use by Tenant (excluding expenses for which Landlord is or will be directly reimbursed by Tenant or the proposed subtenant or assignee); (ii) materially increase the burden on elevators or other Building systems over the burden prior to such proposed subletting; or (iii) violate any provisions or restrictions contained herein relating to the use or occupancy of the Premises;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any proposed sublease shall state that it is expressly subject to all of the obligations of Tenant under this Lease and shall contain the further condition and restriction that the sublease shall not be assigned, encumbered or otherwise transferred or the subleased premises further sublet by the sublessee in whole or in part, or any part thereof suffered or permitted by the sublessee to be used or occupied by others, without the prior written consent of Landlord in each instance other than with respect to Permitted Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any proposed sublease shall provide that it is subject and subordinate to this Lease and to the matters to which this Lease is or shall be subordinate, and that in the event of the termination of this Lease, or the re-entry or dispossession of Tenant by Landlord under this Lease, such subtenant shall, at Landlord's option, attorn to Landlord as its sublessor pursuant to the then applicable terms of such sublease for the remaining term thereof, except that such subtenant shall have no right to use any portion of the Premises (or other space in the Building occupied or controlled by Tenant) which is not part of the subleased premises, and Landlord shall not be (i) liable for any previous act or omission of Tenant; (ii) subject to any offset or defense which theretofore accrued to such subtenant (including, without limitation, any rights under 11 U.S.C. §365(h)); (iii) bound by any rent or other sums paid by such subtenant more than one month in advance; (iv) liable for any security deposit not actually received by Landlord; (v) liable for any work or payments on account of improvements to the subleased premises or (vi) bound by any amendment of such sublease not consented to in writing by Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; no subletting shall be for a term of less than one (1) year (provided, however, that if less than one (1) year remains in the Lease Term, such sublease may be for the balance of the Lease Term);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; there shall not be (i) more (i) four (4) separately demised premises (including the premises demised to Tenant) per entire floor of Office Premises (e.g. the initial 9<sup>th</sup> floor Office Premises) or, (ii) with respect to any partial floor of Office Premises (e.g., the initial 10<sup>th</sup> floor Office Premises), more than two (2) separately demised premises (including the premises demised to Tenant) or (iii) more than six (6) occupants (including Tenant, but excluding any Space Occupants) in the aggregate in the Premises subject to increase by (x) four (4) additional separately demised premises for each full floor that may be added to added to the Premises and (y) two (2) additional separately demised premises for each partial floor that may be added to added to the Premises (including, without limitation the Expansion Space);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall reimburse Landlord on demand for any actual out-of-pocket costs that may be incurred by Landlord in connection with said sublease or assignment, including, without limitation, the costs of making investigations as to the acceptability of the proposed subtenant or assignee and reasonable legal costs incurred in connection with the granting of any requested consent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any proposed sublease shall comply with the requirements of Section 11.9 hereof.

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Tenant agrees to furnish Landlord such information in addition to the information set forth in the Transfer Notice (if applicable) as Landlord may reasonably request in connection with the proposed sublease or assignment. If Landlord shall fail to respond to Tenant's request for consent within fifteen (15) days after Landlord's receipt of a copy of the fully executed instrument of sublease or assignment and all other agreements, if any, related to the proposed sublease or assignment, and any other information reasonably requested by Landlord, then Tenant shall have the right to give Landlord a second notice requesting such consent and, provided such second request for approval shall prominently specify that Landlord's failure to consent to or disapprove the same within five (5) Operating Days after Landlord's receipt thereof constitutes Landlord's consent thereto, then in the event Landlord fails to consent to or disapprove within such five (5) Operating Day period, Landlord shall be deemed to have consented to the same. Any denial of consent by Landlord shall include a reasonably detailed statement of the reasons therefor. Any dispute as to whether Landlord has unreasonably withheld its consent shall be subject to arbitration in accordance with the terms of Section 20.2 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD MAY COLLECT RENT FROM SUBTENANT OR ASSIGNEE</u>. If this Lease shall be assigned, or if the Premises or any part thereof be sublet or occupied by any person or persons other than Tenant, Landlord may, so long as an Event of Default then exists, collect rent from the assignee, subtenant or occupant and apply the net amount collected to the rent herein reserved, but no such assignment, subletting, occupancy or collection of rent shall be deemed a waiver of the covenants in this Article, nor shall it be deemed acceptance by Landlord of the assignee, subtenant or occupant as a tenant, or a release of Tenant from the full performance by Tenant of all the terms, conditions and covenants of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7&nbsp;&nbsp;&nbsp;&nbsp; <u>ASSUMPTION OF LEASE</u>. Each permitted assignee or transferee shall assume and be deemed to have assumed the obligations of Tenant under this Lease to be performed, or arising or accruing, on and after the effective date of such assignment or transfer and shall be and remain liable jointly and severally with Tenant for the payment of Annual Fixed Rent and Additional Rent, and for the due performance of all the terms, covenants, conditions and agreements herein contained on Tenant's part to be performed for the Lease Term. Notwithstanding the foregoing, if such permitted assignee (a) either (1) has a tangible net worth in excess of $250,000,000, as more particularly described above in Section 13.1(c) or (2) has (x) a tangible net worth in excess of $100,000,000, as more particularly described above in Section 13.1(c) and (y) delivered to Landlord an additional security deposit in an amount equal to the Annual Fixed Rent then payable hereunder plus an amount equal to all recurring Additional Rent payable to Landlord for the preceding calendar year, (b) is not a Prohibited Person, and (c) assumes all of the obligations of Tenant under the Lease, Tenant shall be released from liability on and after the effective date of such assignment or transfer. No assignment shall be binding on Landlord unless such assignee or Tenant shall deliver to Landlord a duplicate original of the instrument of assignment which contains a covenant of assumption by the assignee of all of the obligations aforesaid and shall obtain from Landlord the aforesaid written consent, to the extent required pursuant to the terms of this Lease. Subject to the provisions of Section 13.16 hereof, in the event of any Event of Default caused by the assignee, Landlord shall notify the assignor thereof and shall grant such assignor a reasonable opportunity to cure such Event of Default (to the extent curing such Event of Default is possible) prior to exercising any remedy to which it may otherwise be entitled under this Lease (which period in no event shall exceed an additional thirty (30) days from notice thereof).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT'S INDEMNIFICATION</u>. If Landlord shall fail or refuse to give its consent to any proposed assignment or sublease (with respect to which it has a right to consent pursuant to this Article 13), Tenant shall indemnify and hold harmless Landlord from and against any and all loss, liability, costs and expenses (including, without limitation, reasonable attorneys' fees) asserted against, imposed upon or incurred by Landlord by reason of any claims made against Landlord by the proposed assignee or sublessee or by any brokers, finders or other persons for commissions or other compensation in connection with the proposed assignment or sublease, but not including any commissions payable on account of the proposed assignee or subtenant entering into a sublease, assignment or offer agreement with Landlord or Landlord's affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.9&nbsp;&nbsp;&nbsp;&nbsp; <u>TIME LIMITATION; AMENDMENTS</u>. If Landlord grants (or is deemed to have granted) its preliminary consent to a proposed assignment or subletting under Section 13.13 and such assignment or sublease does not become effective for any reason not caused by a default by Landlord under this Lease within two hundred seventy (270) days after the granting of such preliminary consent or deemed consent, or if Landlord grants (or is deemed to have granted) its final consent to a proposed assignment or subletting under Section 13.5 and such assignment or sublease does not become effective for any reason not caused by a default by Landlord under this Lease within one hundred eighty (180) days after the granting of such consent or deemed consent, then and in any such event Landlord's consent shall be deemed to have been withdrawn and Tenant shall not have the right to assign this Lease or to sublease all or any portion of the Premises without once again complying with all of the applicable provisions and conditions of this <u>Article 13</u>. In no event shall Tenant agree to modify or amend any sublease to which Landlord has consented without Landlord's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.10&nbsp;&nbsp;&nbsp;&nbsp; <u>ADDITIONAL RENT DUE UPON ASSIGNMENT OR SUBLETTING</u>. If Landlord shall give its consent to any assignment of this Lease or to any sublease, Tenant shall, as consideration therefor, pay to Landlord as Additional Rent the following amounts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in the case of any assignment, an amount equal to fifty percent (50%) of all sums and other considerations paid to or for the benefit of Tenant by the assignee for or by reason of such assignment (including, but not limited to, sums paid for the sale of any of Tenant's Property, fixtures or leasehold improvements). For purposes of the foregoing, sums paid for the sale of any of Tenant's Property shall be reduced by the net unamortized or undepreciated cost thereof determined on the basis of Tenant's federal income tax returns; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in the case of a sublease, fifty percent (50%) of the excess, if any, of (i) any rents, additional charges or other consideration payable under the sublease or any agreement relating thereto to or for the benefit of Tenant by the subtenant (including, but not limited to, sums paid for the sale of any of Tenant's Property, fixtures or leasehold improvements) over (ii) the rents accruing during the term of the sublease in respect of and allocable to the subleased space pursuant to the terms of this Lease. For purposes of the foregoing, sums paid for the sale of any of Tenant's Property shall be reduced by the net unamortized or undepreciated cost thereof determined on the basis of Tenant's federal income tax returns.

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Amounts due to Landlord pursuant to this Section 13.10 shall be paid to Landlord as Additional Rent as and when paid by the assignee or subtenant to Tenant. Reasonable attorneys' fees, brokerage or leasing commissions to an independent third-party broker, advertising expenses and rental concessions (provided such rental concessions do not occur during the Rent Concession Period), the cost of improvements, construction contributions or alterations made by Tenant expressly and solely for the purpose of preparing the space for such assignee or subtenant, and any work allowance or other monetary concession actually paid to the assignee or subtenant, as the case may be, all to the extent actually incurred by Tenant in connection with the assignment or subletting, and the then unamortized Tenant's Cost (excluding costs of Tenant's Work paid from Landlord's Contribution) may be deducted from the rents, charges and other consideration payable by the assignee or subtenant to Tenant in connection with the assignment or subletting prior to the computation of amounts due to Landlord pursuant to subsection (a) or (b) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.11&nbsp;&nbsp;&nbsp;&nbsp; <u>LIABILITY NOT DISCHARGED</u>. The joint and several liability of Tenant and any immediate or remote successor in interest of Tenant (including any assignee) and the due performance of the obligations of this Lease on Tenant's part to be performed or observed shall not be discharged, released or impaired in any respect by any agreement or stipulation made by Landlord, or any grantee or assignee of Landlord by way of mortgage or otherwise, extending the time, or modifying any of the obligations of this Lease, or by any waiver or failure of Landlord, or any grantee or assignee of Landlord by way of mortgage or otherwise, to enforce any of the obligations of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.12&nbsp;&nbsp;&nbsp;&nbsp; <u>EFFECT OF LISTING OF NAMES</u>. The listing of any name other than Tenant on the door of the Premises, on any Building directory or otherwise shall not operate to vest any right or interest in this Lease or in the Premises in any other person or entity, nor shall such listing be deemed to be the consent of Landlord to any assignment or transfer of this Lease or to any sublease of the Premises or any portion thereof or to the use or occupancy of the Premises or any portion thereof by others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.13&nbsp;&nbsp;&nbsp;&nbsp; <u>PRELIMINARY APPROVAL</u>. Notwithstanding anything to the contrary provided in this Article 13, Landlord shall, within ten (10) Operating Days after Tenant's written request therefor, approve or disapprove the identity of a proposed subtenant or assignee, which approval shall not be unreasonably withheld provided that the conditions of Section 13.5 shall be satisfied. If Landlord does not respond within such ten (10) Operating Day period, then Tenant may at any time thereafter, deliver a notice to Landlord requesting that Landlord consent to the identity of the proposed subtenant or assignee and provided that such notice shall set forth in bold capital letters the following statement: "**IF LANDLORD FAILS TO RESPOND WITHIN FIVE (5) OPERATING DAYS AFTER RECEIPT OF THIS NOTICE, THEN, SUBJECT TO THE OTHER PROVISIONS OF THE LEASE, THE IDENTITY OF THE PROPOSED [SUBTENANT][ASSIGNEE] DESCRIBED HEREIN SHALL BE DEEMED TO BE APPROVED BY LANDLORD",** if Landlord fails to respond to such notice within five (5) Operating Days after receipt by Landlord, then the identity of the proposed subtenant or assignee shall be deemed to be approved by Landlord, subject to the provisions of this Lease. Notwithstanding anything to the contrary contained herein, if Tenant shall deliver each of the items required under <u>Section 13.5</u>, the time periods under Section 13.5 by which Landlord is required to grant or deny its consent to such transaction shall run concurrently with the ten (10) Operating Day period set forth in this Section 13.13.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.14 <u>ASSIGNOR TENANT CURE RIGHTS</u>. Notwithstanding any provisions to the contrary in this Lease, if this Lease shall have been assigned by the Original Tenant, Landlord shall give the Original Tenant a copy of each written notice of default given by Landlord to the then current Tenant under this Lease. Except if Landlord shall execute and deliver a written instrument releasing the Original Tenant from any further liability under this Lease, Landlord shall not have any right to terminate this Lease, or otherwise to exercise any of Landlord's rights and remedies hereunder, after a default by such current Tenant, unless and until (a) Landlord shall have complied with its obligation to give notice to the Original Tenant in accordance with the preceding sentence, and (b) the Original Tenant shall not have cured all then existing defaults of the then Tenant (other than any default that arose under the provisions of <u>Section 19.1(h)-(l)</u> or as a result of the failure of the current Tenant to provide financial statements pursuant to Section 20.23 hereof, in either case which defaults are not capable of being cured by the Original Tenant) within the time periods set forth in this Lease (such time periods, with respect to the Original Tenant, being deemed to run from the date that Landlord gives such Original Tenant a copy of the default notice in question). Landlord shall accept timely performance by the Original Tenant of any term, covenant, provision or agreement contained in this Lease on the then current Tenant's part to be observed and performed with the same force and effect as if performed by the then current Tenant. Provided that the Original Tenant shall have cured all defaults of the then current Tenant (other than any default that arose under the provisions of <u>Section 19.1(h)-(l)</u> or as a result of the failure of the current Tenant to provide financial statements pursuant to <u>Section 20.23</u> hereof, in either case which defaults are not capable of being cured by the Original Tenant), upon request by the Original Tenant, Landlord shall elect, at its option, either (i) to proceed to terminate this Lease because of the default of the then current Tenant whereupon, if Landlord has not already done so, Landlord shall promptly and in good faith, at the sole cost and expense of the Original Tenant, initiate and prosecute to completion summary proceedings to obtain vacant possession of the Premises, or (ii) to permit the Original Tenant, promptly and in good faith, at the sole cost and expense of the Original Tenant, to proceed to initiate and prosecute to completion summary proceedings to obtain vacant possession of the Premises (and while such proceedings are pending, Landlord shall not terminate this Lease provided the Original Tenant keeps Landlord current as to the obligations of the then current Tenant under this Lease). If (i) the default by such current Tenant arose under the provisions of <u>Section 19.1(h)-(l)</u> hereof, (ii) the Original Tenant shall cure all outstanding defaults by such current Tenant (other than any default that arose under the provisions of <u>Section 19.1(h)-(l)</u> or as a result of the failure of the current Tenant to provide financial statements pursuant to Section 20.23 hereof, in either case which defaults are not capable of being cured by the Original Tenant), and (iii) Landlord or such current Tenant seeks to terminate this Lease as a result thereof, then the Original Tenant shall have the right to enter into a new lease with Landlord upon all of the then executory terms of this Lease and to resume actual possession of the Premises for the unexpired balance of the Lease Term; provided, that on or prior to the date that Landlord executes and delivers to the Original Tenant such new lease, the Original Tenant shall have cured all defaults of the then current Tenant (other than any default that arose under the provisions of <u>Section 19.1(h)</u> or as a result of the failure of the current Tenant to provide financial statements pursuant to Section 20.23 hereof, in either case which defaults are not capable of being cured by the Original Tenant) and Landlord is not adversely affected thereby (including, without limitation, any accounting or tax consequences that adversely affect Landlord).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.15 &nbsp;&nbsp;&nbsp;&nbsp;<u>PREDECESSOR TENANTS</u>. Subject to the provisions of <u>Section 13.16</u> hereof, if this Lease is assigned, the assignor and all its predecessors as tenant hereunder (collectively, the "<u>Predecessor Tenants</u>") shall be and remain fully liable for the due performance and observance of all of the terms and conditions of this Lease to be performed by Tenant throughout the Lease Term and no amendment of this Lease or waiver of, or consent to departure from, any of the terms and conditions of this Lease shall constitute a novation or otherwise release any of the Predecessor Tenants; <u>provided</u>*,* <u>however</u>, if any such subsequent amendment to this Lease is made to a Person that is not an Affiliate of the Predecessor Tenant without any such Predecessor Tenant's consent and such subsequent amendment shall (i) increase the RSF of the Premises hereunder, (ii) increase the Rent payable hereunder and/or (iii) renew the Lease Term hereof, in each case other than pursuant to the exercise of any option of Tenant expressly set forth herein, then such Predecessor Tenant shall not be liable with respect only to such incremental increases and/or such renewal term; provided that no amendment of this Lease or waiver of, or consent to departure from, any of the terms and conditions of this Lease shall constitute a novation or otherwise release any of the Predecessor Tenants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.16&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD'S NON-DISTURBANCE AGREEMENTS; RIGHT TO FURTHER SUBLEASE</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord shall, within thirty (30) days after Tenant's request, accompanied by an executed counterpart of the Eligible Sublease (as hereinafter defined) and such other information and certifications as Landlord may reasonably request in order to determine that the conditions of this <u>Section 13.16</u> have been satisfied, deliver to Tenant and the subtenant under an Eligible Sublease (an "Eligible Subtenant") a non-disturbance agreement in customary form, reasonably satisfactory to Landlord and Tenant (a "Landlord's Non-Disturbance Agreement") providing, in substance, that (i) the Eligible Subtenant shall attorn to Landlord, and (ii) if this Lease shall terminate or be terminated by reason of Tenant's default hereunder (any such termination, an "Attornment Event"), then Landlord will recognize the Eligible Subtenant as the direct tenant of Landlord on the terms and conditions of the Eligible Sublease, and the Eligible Sublease will be deemed amended upon an Attornment Event as provided in <u>Section 13.16(b)(i)</u> below. Following the Eligible Subtenant's execution and delivery of the Landlord's Non-Disturbance Agreement, Landlord shall promptly execute and deliver a counterpart thereof to the Eligible Subtenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord's Non-Disturbance Agreement shall provide that, upon an Attornment Event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if applicable, the fixed rent and additional rent under the Eligible Sublease shall be increased (but not decreased) so that at all times it is equal to the Fixed Rent and Additional Rent on a per RSF basis (based on the floor(s) so sublet) that would have been payable under this Lease with respect to the portion of the Premises demised under the Eligible Sublease had this Lease not been terminated;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Eligible Sublease shall be deemed further amended so that the terms and provisions thereof shall be restated to the extent necessary, if any, so that none of the provisions thereof shall be materially less favorable, in any respect, to Landlord than the provisions of this Lease, except that (A) the length of the term (including renewals, other than renewals which would extend beyond the then Expiration Date) shall remain as set forth in the Eligible Sublease, (B) the Eligible Sublease shall not include any rights in favor of Tenant which are limited specifically to the Original Tenant, any rights specifically dependent upon leasing or occupancy requirements to the extent such requirements are not satisfied by the Eligible Sublease or the Eligible Subtenant, or any rights of Tenant under this Lease which the Eligible Subtenant is not entitled to under the terms of the Eligible Sublease, and (C) if the Eligible Sublease contains one or more provisions which are more restrictive of the Eligible Subtenant thereunder than the corresponding provisions of this Lease is with respect to Tenant hereunder, then the more restrictive Eligible Sublease provisions shall continue in effect under the Eligible Sublease; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Eligible Subtenant shall attorn to Landlord as sublandlord under the Eligible Sublease in accordance with and subject to the provisions of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "Eligible Sublease" means a direct sublease that (A) is between Tenant and a subtenant that is not an Affiliate of Tenant, and which subtenant (or the principal of such subtenant, provided such principal guaranties all of the obligations of such subtenant under such Eligible Sublease pursuant to a guaranty reasonably satisfactory to Landlord), as of the execution of the Eligible Sublease, has a financial condition reasonably satisfactory to Landlord taking into account the obligations in question (it being agreed that the financial condition of a subtenant (or its principal) shall be deemed satisfactory if such subtenant (or its principal) has a net worth determined in accordance with GAAP equal to or greater than the annual Fixed Rent and Additional Rent then payable by Tenant on a per RSF basis (based on the floor(s) so sublet) on account of the portion of the Premises demised under the Eligible Sublease (without giving effect to any free rent or rent abatement) as the same may be increased pursuant to <u>Section 13.16(b)(i)</u> above multiplied by ten (10)), (B) demises only full floors (or at least the entire portion of the Premises then subject to this Lease on a single floor), (C) has an initial sublease term (<u>i.e.</u>, not including any renewals) of at least five (5) years (or, if less than five (5) years remain in the Lease Term, the remaining balance of the Lease Term less one (1) day) and (D) has been consented to by Landlord pursuant to the provisions of this Article 13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding anything to the contrary set forth in this <u>Section 13.16</u>, any Landlord's Non-Disturbance Agreement shall be personal to the Eligible Subtenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.17&nbsp;&nbsp;&nbsp;&nbsp; <u>LICENSE AREA</u>. The terms and conditions of this Article 13 shall apply to any sublease or occupancy agreement with respect to the License Area; provided, however, (a) Tenant may not sublease any portion of the License Area on the roof of the Building or grant any occupancy rights with respect thereto unless Tenant is, in connection therewith, also subleasing or granting such occupancy rights with respect to the entire Premises and entire License Area (or assigning this Lease) and (b) Tenant may not sublease any portion of the License Area consisting of the terrace on the ninth (9<sup>th</sup>) floor of the Building or grant any occupancy rights with respect thereto unless Tenant is, in connection therewith, also subleasing or granting such occupancy rights with respect to a contiguous portion of the Premises consisting of at least 5,000 RSF.

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<u>ARTICLE 14</u>

<u>NO LIABILITY OR REPRESENTATIONS BY LANDLORD; FORCE MAJEURE</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1&nbsp;&nbsp;&nbsp;&nbsp; <u>NO LIABILITY</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Neither Landlord nor any other Landlord Parties shall be liable for (i) any damage to property of Tenant or of others entrusted to employees of the Building, nor for the loss of or damage to any property of Tenant by theft; (ii) any injury or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water, rain or snow or leaks in or from any part of the Building or the Property or from the pipes, appliances or plumbing or from the roof, street or subsurface or from any other place or by dampness or by any other cause of whatsoever nature, unless caused or due to the negligence or willful misconduct of Landlord, its agents, servants or employees or the failure of Landlord to perform its obligations under this Lease within a reasonable time after notice of such failure from Tenant; nor shall Landlord and its agents or employees be liable for any such damage caused by other tenants or persons in the Building or caused by operations in construction of any private, public or quasi-public work; (iii) subject to Section 4.1(a), any latent defect in the Premises, the Building or other improvements on the Property; or (iv) any injury or damages for which Tenant is reimbursed under its insurance policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If at any time any windows of the Premises are temporarily or permanently closed, darkened or bricked up as a result of causes beyond Landlord's control, or are temporarily closed or darkened by Landlord (provided that Landlord shall use commercially reasonable efforts to remedy such condition as promptly as possible), Landlord shall not be liable for any damage Tenant may sustain thereby and Tenant shall not be entitled to any compensation therefor nor abatement of rent nor shall the same release Tenant from its obligations hereunder nor constitute an eviction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Landlord shall have no responsibility or liability for the ventilating conditions and/or temperature of the Premises during the hours or days Landlord is not required to furnish heat, ventilation or air-conditioning pursuant to Exhibit D or pursuant to Sections 14.3 or 20.12, Landlord having informed Tenant that the windows of the Premises and the Building may be sealed, and that the Premises may become uninhabitable and the air therein may become unbreathable during such times. Insofar as air temperature and ventilation are concerned, any use or occupancy of the Premises during the hours or days Landlord is not so required to, or pursuant to Section 14.3 or 20.12 does not furnish heat, ventilation or air-conditioning to the Premises shall be at the sole risk, responsibility and hazard of Tenant. Such condition of the Premises shall not constitute nor be deemed to be a breach or a violation of this Lease or of any provision hereof, nor shall it be deemed an eviction, nor shall Tenant claim or be entitled to claim any abatement of rent nor make any claim for any damages or compensation by reason of such condition of the Premises; provided, however, nothing contained herein shall relieve Landlord from any liability hereunder to the extent the Premises become uninhabitable or the air therein unbreathable as a direct result of Landlord's actions, gross negligence or willful misconduct.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall neither assert nor seek to enforce any claim against any of Landlord's assets other than Landlord's interest in the Land and the Building (including the rent proceeds therefrom), and Tenant agrees to look solely to such interest for the satisfaction of any liability of Landlord under this Lease, it being specifically agreed that neither Landlord, nor any successor holder of Landlord's interest hereunder, nor any general or limited partner of Landlord or any such successor (if Landlord or such successor is a partnership) nor any shareholder of Landlord or any such successor (if Landlord or such successor is a corporation) shall ever be personally liable for any such claim or liability; provided that such limitation shall not (i) apply to Landlord's obligation to fund Landlord's Contribution or (ii) preclude Tenant from seeking any recovery from any (A) insurance proceeds or condemnation awards relating to any portion of Landlord's estate in the Land and the Building (to the extent in excess of any restoration costs and net of all costs of obtaining such proceeds or awards), or (b) proceeds of a sale (net of transaction costs) of the Property; <u>provided</u>, <u>however</u>, that Tenant shall commence any action to so recover such proceeds within two (2) years from the date on which Tenant's cause of action arises; and <u>provided</u> <u>further</u>, that nothing contained herein shall derogate Tenant's rights with respect to the amounts set forth in clauses (A) and (B) above under any applicable fraudulent conveyance laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 &nbsp;&nbsp;&nbsp;&nbsp; <u>NO REPRESENTATIONS BY LANDLORD</u>. Tenant expressly acknowledges and agrees that Landlord has not made and is not making, and Tenant, in executing and delivering this Lease, is not relying upon, any warranties, representations, promises or statements, except for those expressly set forth in this Lease and the Exhibits annexed hereto or in any other written agreement which may be made between the parties hereto concurrently with the execution and delivery of this Lease and which shall expressly refer to this Lease. No rights, easements or licenses are acquired by Tenant by implication or otherwise except as expressly set forth in the provisions of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3&nbsp;&nbsp;&nbsp;&nbsp; <u>FORCE MAJEURE</u>. Except as expressly provided in this Lease, this Lease and the obligation of Tenant to pay rent hereunder and perform and comply with all of the other covenants and agreements hereunder on the part of Tenant to be performed and complied with shall in no way be affected, impaired or excused because of Landlord's delay or failure to perform or comply with any of the covenants or provisions hereunder on the part of Landlord to be performed or complied with, or because Landlord is unable to fulfill any of its obligations under this Lease or is unable to supply or is delayed in supplying any service expressly or impliedly to be supplied or is unable to make or is delayed in making any repair, additions, alterations or decorations or is unable to supply or is delayed in supplying any equipment or fixtures, if Landlord is prevented or delayed from so doing (i) by reason of strikes or labor troubles, (ii) by reason of governmental preemption in connection with a national emergency, (iii) by reason of any rule, order or regulation of any government agency or any department or subdivision thereof, whether in connection with a drought, energy shortage or other like event or otherwise, (iv) by reason of any fact, condition or circumstance proximately related to war, terrorism or other emergency, (v) by reason of fire, casualty or other acts of God or (vi) by reason of any other cause whatsoever (other than lack of funds) beyond Landlord's reasonable control (collectively, "Force Majeure"). Landlord shall in each instance exercise reasonable diligence to effect performance when and as soon as possible or practicable. Section 14.3 shall not be applicable to extend any of the time periods for Landlord's repair and restoration of the Premises or the Building pursuant to Article 12 except as expressly set forth therein. Under no circumstances shall the non-payment of money or a failure attributable to a lack of funds be deemed to be (or to have caused) an event of Force Majeure.

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<u>ARTICLE 15</u>

<u>ENTRY, RIGHT TO CHANGE PUBLIC PORTIONS OF THE BUILDING</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD'S RIGHT OF ENTRY</u>. Landlord shall have the right, without being deemed thereby to evict Tenant from the Premises or any part thereof or otherwise to violate any of the terms of this Lease or any of Tenant's rights hereunder,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to enter and pass through the Premises or any part or parts thereof,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to examine the Premises and to show them to the fee owners, Overlandlord or Mortgagee (both as hereafter defined) and to prospective purchasers, mortgagees or lessees of the Building as an entirety,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for the purpose of performing such maintenance and making such repairs or changes in or to the Premises or in or to the Building or its facilities as may be provided for or permitted by this Lease or as may be mutually agreed upon by the parties or as Landlord may be required to make by laws and requirements of public authorities,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; at such times as such entry shall be required by circumstances of emergency affecting the Premises or the Building, provided that in such event, if practicable, Landlord or its agents shall be accompanied by a designated representative of Tenant or a member of the police, fire, water or other municipal department concerned or of a recognized protection company or of a public utility which is concerned,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to exhibit the Premises or any portion thereof to prospective tenants or occupants (A) during the last eighteen (18) months of the Lease Term, (B) at any time during the Lease Term while there exists an Event of Default hereunder or (C) during any period in which Landlord may exercise a right to underlease the space in question or to terminate this Lease, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for the purpose of photographing the Premises for use by Landlord and/or Landlord's affiliates in connection with promotional and marketing materials, provided, however, such photographs shall be subject to Tenant's prior approval (such approval not to be unreasonably withheld or delayed) and in no event will any such photographs, promotional or marketing materials identify Tenant or the floor of the Building on which the Premises are located; provided, however, that Tenant's failure to provide such access in connection with the same shall not be deemed a default by Tenant under this Lease for which (A) this Lease could be terminated, (B) Tenant could be denied Landlord's Contribution or (C) Tenant could be denied an abatement under Section 20.12(b), and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to take such reasonable quantities of materials into and upon the Premises that may be required for any repairs, changes or maintenance and to store the same therein for a reasonable time (not to exceed twenty-four (24) hours) as reasonably required in connection with the completion of such repairs, changes or maintenance.

Landlord's rights under this Section shall be exercised subject to Landlord's Repair Conditions. Except in the case of an emergency which makes notice to Tenant or accompaniment by a representation of Tenant impractical, any entry on the Premises by Landlord pursuant to this Section 15.1 shall be made after reasonable notice to Tenant (but in no event less than twenty-four (24) hours' prior notice) and Landlord or Landlord's agents, as applicable, shall be accompanied by a representative of Tenant (except no such accompaniment shall be required if Tenant does not make such representative available).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD'S RIGHT TO CHANGE ENTRIES, ETC</u>. Landlord shall have the right at any time without thereby creating any actual or constructive eviction or incurring any liability to Tenant therefor, and without abatement in rent, to change the arrangement or location of lobbies, entrances, passageways, doors, doorways, stairways, elevators, corridors and other like portions of the Building outside of the Premises, provided that (i) any such change does not unreasonably interfere with Tenant's layout, use or enjoyment of the Premises, or access to the Building or the Premises, (ii) the Building's plaza, lobby and elevator lobbies shall, following the completion of such alterations or changes, shall be consistent in appearance and utility with First Class Buildings, and (iii) no such work shall reduce the rentable square footage of the Premises by more than a *de minimis* amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3&nbsp;&nbsp;&nbsp;&nbsp; <u>EXCAVATION</u>. In the event that an excavation or any construction should be made for building or other purposes upon land adjacent to the Building, or should be authorized to be made, Tenant shall, if necessary, upon reasonable advance notice, afford to the person or persons causing or authorized to cause such excavation or construction, the right, for brief periods of time and in a manner so as to avoid unreasonable interference with Tenant's business, subject to such reasonable conditions as Tenant may reasonably impose, to enter upon the Premises for the purpose of doing such work as shall reasonably be necessary to protect or preserve the wall or walls of the Building, or the Building, from injury or damage and to support them by proper foundations, pinning and/or underpinning, or otherwise.

<u>ARTICLE 16</u>

<u>ELECTRICITY</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1&nbsp;&nbsp;&nbsp;&nbsp; <u>PROVISION OF ELECTRICITY</u>. (a) Landlord shall make electricity available to the Premises at no less than the service level set forth in Exhibit D attached hereto, and otherwise subject to and in accordance with the provisions of this Article and Exhibits D and F attached hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electricity shall be provided to the Premises by way of a direct utility meter, the cost, if any, of installing which shall be borne by Landlord (provided that the repair and replacement thereof shall be at Tenant's sole cost and expense).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant shall obtain electrical energy directly from the public utility furnishing electric service to the Building and/or one or more other electricity providers selected by Tenant (the "Electricity Provider"). Tenant shall make its own arrangements with the Electricity Provider for the furnishing of electricity to the Premises, and the costs of such service, including any deposits or fees, shall be paid by Tenant directly to the Electricity Provider. Such electricity may be furnished to Tenant by means of the then existing electrical facilities serving the Building at no cost to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At all times during the Lease Term, Tenant shall comply with all present and future general rules, regulations, terms and conditions applicable to service equipment, wiring and requirements (with respect to service equipment and wiring that may be installed by Tenant) in accordance with the regulations of the public utility company supplying electricity to the Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD NOT LIABLE</u>. Landlord shall not in any way be liable or responsible to Tenant for any loss or damage or expense which Tenant may sustain or incur if either the quantity or character of electric service is changed or interrupted or is no longer available or suitable for Tenant's requirements unless due to the negligence or willful misconduct of Landlord, its agents, employees or contractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT NOT TO OVERLOAD CIRCUITS</u>. Subject to Section 16.1(a) and Exhibit D, in no event shall Tenant use or install any fixtures, equipment or machines the use of which in conjunction with other fixtures, equipment and machines in the Premises would result in an overload of the electrical circuits servicing the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT NOT TO EXCEED CAPACITY; LIGHT BULBS</u>. Tenant covenants and agrees that at all times its use of electric current shall not exceed the capacity of the then existing feeders to the Building or the risers or wiring installation set forth in Exhibit D. Except as hereinafter provided, Landlord shall furnish, install and replace, as required, all lighting tubes, lamps, bulbs and ballasts required in the Premises (collectively, "Premises Light Fixtures") at Tenant's sole cost and expense, provided that (i) Landlord's charges for the labor provided in connection therewith shall be in accordance with Landlord's regular rates in effect from time to time, and otherwise competitive with and not in excess of the highest rates charged by landlords in other First Class Buildings for similar materials and services and (ii) Landlord shall not be entitled to charge Tenant any fee or mark-up over the actual costs incurred by Landlord to purchase such lighting tubes, lamps, bulbs and ballasts. Notwithstanding the foregoing, Tenant may elect, from time to time, to be responsible to furnish, install and replace, any or all Premises Light Fixtures (at Tenant's cost and expense). All lighting tubes, lamps, bulbs and ballasts so installed shall become Landlord's property upon the expiration or sooner termination of this Lease.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5&nbsp;&nbsp;&nbsp;&nbsp; <u>ADDITIONAL ELECTRICAL CAPACITY</u>. Subject to the terms of this Section 16.5, Tenant, from time to time, shall have the right to request that Landlord make available to Tenant excess electrical capacity that is then available in the Building to the extent such excess capacity exists and Tenant has given Landlord a certificate from a third party electrical engineer confirming Tenant's *bona-fide* need for such additional electrical capacity. If (x) Landlord has or reasonably anticipates the need for such available Building electricity, or (y) Landlord has theretofore promised such electricity to another tenant or occupant in the Building and such electricity is not available to Tenant, then Landlord will so inform Tenant and thereafter will cooperate with Tenant, at no cost to Landlord, to make arrangements with the public utility company supplying electricity to the Building to increase the electrical capacity that the such public utility company makes available to the Building, in which case the electricity supplied to the Premises shall be increased correspondingly; provided, however, that Landlord shall have no obligation to so cooperate with Tenant to the extent that Tenant's increasing such electrical capacity has a reasonable likelihood of diminishing materially the aggregate electrical capacity that such public utility company would otherwise have made available to the Building. Tenant shall perform any work that is required in connection with any such increase in electrical capacity in accordance with the terms of Article 8 hereof (as if such work constituted an Alteration). Nothing contained in this Section 16.5 expands the Premises or otherwise grants to Tenant rights to use portions of the Building that are not otherwise demised to Tenant hereunder.

<u>ARTICLE 17</u>

<u>SUBORDINATION; ASSIGNMENT OF RENTS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1&nbsp;&nbsp;&nbsp;&nbsp; <u>SUBORDINATION TO MORTGAGES, ETC</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to the provisions of Section 17.6, this Lease is and shall be subject and subordinate to any ground or underlying lease (each, an "Underlying Lease") which may now or hereafter affect the Building and/or the Land and to any amendment, modification, renewal or extension of any such Underlying Lease. Subject to the provisions of Section 17.6, this Lease also is and shall be subject and subordinate to all mortgages which may now or hereafter affect any Underlying Lease, the Land and/or the Building, to each and every advance made thereunder and to all renewals, modifications, amendments, consolidations, replacements or extensions thereof (each, a "Mortgage"). The landlord or lessor under any Underlying Lease is referred to herein as a "Overlandlord" and the secured party under any such mortgage is referred to herein as a "Mortgagee". Subject to the provisions of Section 17.6, this clause shall be self-operative and no further instrument of subordination shall be required by any Overlandlord or Mortgagee. In confirmation of such subordination, if the conditions of Section 17.6 below shall have been satisfied, Tenant, without cost or charge to Landlord, shall (other than with respect to the Existing Mortgage) execute promptly (but no later than twenty (20) days after written demand therefor) any certificate or instrument of subordination on such Mortgagee's or Overlandlord's commercially reasonable standard form that Landlord may reasonably request.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise expressly set forth in any applicable subordination and nondisturbance agreement among Tenant, Landlord and any Mortgagee or Overlandlord, Tenant agrees that if any Overlandlord or Mortgagee shall succeed to interest of Landlord under this Lease by foreclosure or otherwise, and the Overlandlord or Mortgagee elects in its sole discretion not to cause this Lease to be terminated in connection therewith, this Lease shall not be terminated or affected thereby but shall continue in full force and effect as a direct lease between Overlandlord or Mortgagee and Tenant upon all of the terms, covenants and conditions set forth in this Lease and, in such event, Tenant shall attorn to Overlandlord or Mortgagee provided, however, that the provisions of such Underlying Lease or such mortgage shall govern with respect to the disposition of any casualty insurance proceeds or condemnation awards and Overlandlord or Mortgagee shall not be (i) bound by any prepayment of rent which Tenant might have paid (other than any previous payment or more than one month's Annual Fixed Rent), to any prior landlord (including Landlord), (ii) bound by any previous material modification of this Lease entered into after Tenant has been notified of the existence and identity of such Mortgagee or Overlandlord and of its address for notices unless such material modification shall have been expressly approved in writing by such Mortgagee or Overlandlord, (iii) liable for any act or omission of any prior landlord (including Landlord) under this Lease except as expressly provided herein and to the extent continuing after such attornment (it being understood that the foregoing is not intended to relieve any Mortgagee or Overlandlord of any liability arising by reason of its acts or omissions (x) from and after the date it succeeds to the interests of Landlord or (y) prior to the date it succeeds to the interests of Landlord if such default is continuing after such date of succession but then only to the extent such default occurred after the date of succession), (iv) subject to any offsets or defenses of any prior landlord (including Landlord), (v) liable for performance of any initial work or installations which are required to be made by Landlord under this Lease, or (vi) liable for any security deposit, in whatever form, provided by Tenant, unless such security deposit shall have been received in hand by such Overlandlord or Mortgagee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall not knowingly do nor suffer nor permit any action, with respect to which Tenant has been notified in writing, which would constitute a default under any Underlying Lease or any Mortgage which may now or hereafter affect any Underlying Lease, the Land and/or the Building (provided such action constituting a default under an Underlying Lease or a Mortgage is not otherwise expressly permitted pursuant to, or does not contravene or is not inconsistent with Tenant's express rights and obligations under, the terms and conditions of this Lease), or cause any Underlying Lease to be terminated or forfeited by virtue of any right of termination or forfeiture granted to the Overlandlord by such Underlying Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord represents that there are currently no Underlying Leases or Mortgages affecting the Building and/or the Land, except for that certain (i) Consolidated, Amended and Restated Senior Loan Mortgage and Security Agreement, made as of the date hereof, by Landlord in favor of BREDS II Mortgage Corp., a Delaware corporation, having an address at c/o Blackstone Real Estate Debt Strategies, 345 Park Avenue, New York, New York 10154 ("Existing Mortgagee"), (ii) Building Loan Mortgage and Security Agreement made as of the date hereof, by Landlord in favor of Existing Mortgagee and (iii) Project Loan Mortgage and Security Agreement made as of the date hereof, by Landlord in favor of Existing Mortgagee (as each may hereafter be amended, restated, replaced, supplemented or otherwise modified from time to time, collectively, the "Existing Mortgage").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2&nbsp;&nbsp;&nbsp;&nbsp; <u>RIGHTS OF MORTGAGEES, ETC</u>. Except as otherwise expressly set forth in any applicable subordination and nondisturbance agreement among Tenant, Landlord and any Mortgagee or Overlandlord, in the event of any act or omission by Landlord which would or may give Tenant the right to terminate this Lease or to claim a partial or total eviction, Tenant will not exercise any such right until

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; it has given written notice of any such act or omission to Landlord, and to any Overlandlord or Mortgagee whose names and addresses have previously been furnished to Tenant in writing, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any such Overlandlord or Mortgagee shall have failed to cure such act or omission within an additional sixty (60) days after receipt of such notice, or if such act or omission cannot be cured within that time, then such additional time as may be necessary if, within such sixty (60) days, any such Mortgagee or Overlandlord has notified Tenant of its intention to cure such act or omission and has commenced and is diligently pursuing the remedies necessary to cure such default (including, without limitation, commencement of foreclosure proceedings or eviction proceedings, if necessary to effect such cure; provided that such additional period shall in no event exceed one hundred eighty (180) days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3&nbsp;&nbsp;&nbsp;&nbsp; <u>MODIFICATIONS REQUIRED BY LENDERS</u>. If, in connection with obtaining temporary or permanent financing for the Land and/or Building, or any Underlying Lease, any lender shall request reasonable modifications of this Lease as a condition to such financing, Tenant will not unreasonably withhold, delay or defer the execution of an agreement of modification of this Lease provided such modifications do not (a) lengthen or shorten the Lease Term, (b) reduce the rentable square feet of the Premises, (c) increase the Annual Fixed Rent or any Additional Rent, (d) increase the obligations of Tenant or the rights of Landlord under this Lease other than to a *de minimis* extent or (e) reduce the rights of Tenant or the obligations of Landlord under this Lease other than to a *de minimis* extent. Landlord shall promptly pay, or reimburse Tenant for, all reasonable costs and expenses, attorneys' fees and disbursements and other fees incurred by Tenant in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4&nbsp;&nbsp;&nbsp;&nbsp; <u>ASSIGNMENT OF LEASE TO MORTGAGEE, ETC</u>. With reference to any assignment by Landlord of Landlord's interest in this Lease, or the rents payable hereunder, conditional in nature or otherwise, which assignment is made to an Overlandlord or Mortgagee, except as otherwise expressly set forth in any applicable subordination and nondisturbance agreement among Tenant, Landlord and any Mortgagee or Overlandlord, Tenant agrees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that the execution thereof by Landlord, and the acceptance thereof by such Overlandlord or Mortgagee, shall never be treated as an assumption by such Overlandlord or Mortgagee of any of the obligations of Landlord hereunder, unless such Overlandlord or Mortgagee shall, by notice sent to Tenant, specifically otherwise elect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that, except as aforesaid, such Overlandlord, or Mortgagee shall be treated as having assumed Landlord's obligations hereunder only, in the case of a Mortgagee, upon foreclosure by such Mortgagee and the taking of possession of the Premises, or, in the case of an Underlying Lease, the assumption of Landlord's position hereunder by such Overlandlord, any such assumption in each such case to be limited as set forth in Section 14.1(d). In no event shall the acquisition of title to the Building and/or the Land by a purchaser which, simultaneously therewith, leases the entire Building and/or the Land back to the seller thereof be treated as an assumption, by operation of law or otherwise, of Landlord's obligations hereunder, but Tenant shall look solely to such seller-lessee, and its successors from time to time in title, for performance of Landlord's obligations hereunder. For all purposes, such seller-lessee, and its successors in title, shall be the landlord hereunder unless and until Landlord's position shall have been assumed by such purchaser-lessor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.5&nbsp;&nbsp;&nbsp;&nbsp; <u>SUBORDINATION OF MORTGAGE, ETC., TO LEASE</u>. Notwithstanding anything to the contrary set forth in this Article 17, if any Overlandlord or Mortgagee shall file in the office of the Register of the City of New York, New York County, an instrument in which such Overlandlord or Mortgagee shall subordinate its Underlying Lease or mortgage to this Lease, then and in such event such Underlying Lease or mortgage shall be subordinate to this Lease and the provisions of this Article 17, insofar as they would subordinate this Lease to that particular Underlying Lease or mortgage, shall be of no further force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.6&nbsp;&nbsp;&nbsp;&nbsp; <u>SUBORDINATION AND NONDISTURBANCE AGREEMENT</u>. Landlord shall obtain, and Tenant shall execute, a subordination and nondisturbance agreement in favor of Tenant with respect to any (x) Underlying Lease which may now or hereafter affect the Building and/or the Land and (y) Mortgage which may now or hereafter affect the Building and/or the Land (including the Existing Mortgage), in such Overlandlord's or Mortgagee's then standard commercially reasonable form, provided that such agreement shall recognize and preserve any offset or abatement rights of Tenant hereunder and otherwise conform to the requirements of this Article 17; provided further that, with respect to any Mortgage which may hereafter affect the Building and/or the Land and which secures a loan made to Landlord to finance, in whole or in part, the performance and/or satisfaction by Landlord of the Delivery Conditions and/or payment of Landlord's Contribution, Landlord shall obtain, and Tenant shall execute, a subordination and nondisturbance agreement in favor of Tenant in substantially the same form as Exhibit T attached hereto (with such additions, deletions and modifications as are then reasonably applicable and do not diminish Tenant's rights in any material respect). Failure by Landlord to obtain any such subordination and nondisturbance agreement shall in no way affect the validity of this Lease, but Tenant's obligation to subordinate its leasehold interest in the Premises is conditioned upon Landlord obtaining such subordination and nondisturbance agreement in accordance with the terms hereof. Tenant shall have the right to record any such subordination and nondisturbance agreement in the Register's Office, provided that Tenant shall pay all costs, taxes and expenses necessary for the recordation of such subordination and nondisturbance agreement; provided, however, if Tenant fails to execute and record a termination of such subordination and nondisturbance agreement within ten (10) Operating Days following the expiration or termination of the Lease Term, Tenant hereby constitutes and appoints Landlord as Tenant's attorney-in-fact, which appointment as attorney-in-fact is irrevocable and coupled with an interest, to execute and record, at Tenant's sole cost and expense, any such termination of such subordination and nondisturbance agreement.

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<u>ARTICLE 18</u>

<u>CERTAIN ADDITIONAL TENANT COVENANTS</u>

In addition to the covenants contained elsewhere in this Lease, Tenant covenants, during the Lease Term and for such further time as Tenant occupies any part of the Premises:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to pay when due all Annual Fixed Rent and Additional Rent and all charges for utility services rendered to the Premises and service inspections therefor and, as further Additional Rent, all charges for additional and special services rendered pursuant to Exhibit D;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to keep the Premises equipped with all safety appliances (including without limitation fire extinguishers) required by law or ordinance or any other regulation of any public authority, to procure all licenses and permits so required because of any use made of the Premises or any portion thereof by Tenant, it being understood that the foregoing provisions shall not be construed to broaden in any way the uses to which Tenant is permitted to make of the Premises under the terms of this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; not to place a load upon any floor in the Premises exceeding the floor load per square foot of area which such floor was designed to carry (as expressly set forth in Exhibit I and Exhibit J) and which is allowed by law; and not to move any safe, vault or other heavy equipment in, about or out of the Premises except in such manner and at such time as Landlord shall in each instance reasonably prescribe. Tenant's business machines and mechanical equipment shall be placed and maintained by Tenant at Tenant's expense in settings reasonably sufficient to absorb and prevent vibration or noise that may be transmitted to the Building structure or to any other space in the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to pay promptly when due all taxes which may be imposed upon personal property (including, without limitation, fixtures and equipment) in the Premises by any governmental authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to pay promptly following written demand from Landlord, as Additional Rent and regardless of whether any default or Event of Default has occurred or whether any proceeding to enforce the Lease has been commenced, all costs and expenses, attorneys' fees and disbursements and other fees incurred by Landlord in connection with (i) the successful enforcement by Landlord of any obligation of Tenant under this Lease; (ii) the successful enforcement of Landlord's rights and remedies in connection with the Lease; (iii) any unsuccessful attempt by Tenant to enforce any obligation or purported obligation of Landlord under this Lease; (iv) any unsuccessful action or proceeding brought by Tenant against Landlord related to this Lease; and (v) any voluntary or involuntary bankruptcy case, proceeding or action by or on behalf of Tenant, including, without limiting the generality of the foregoing, any and all expenses and attorneys' fees incurred by Landlord related to (A) the assumption or rejection of this Lease, including attempts by Tenant to extend any deadlines related to such assumptions or rejections; (B) the filing of proof(s) of claim by Landlord, and any defense of such proof(s) of claim; (C) the assignment of this Lease; and (D) the reorganization or liquidation of Tenant. This provision shall survive the termination of this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to observe and comply with, and to cause its servants, employees, agents, visitors, licensees and sublessees to comply with, the Rules and Regulations set forth in Exhibit E hereto (as such Rules and Regulations may, from time to time, be amended in accordance with Section 20.13 hereof);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to keep entirely unobstructed at all times all of the vents, intakes, outlets and grills; and to comply with and observe all reasonable regulations and requirements prescribed by Landlord for the proper functioning of the heating, ventilating and air-conditioning system; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; not to, either directly or indirectly (i) conduct business in the Premises in such a manner that would or may create or (ii) use any contractors and/or labor and/or materials if the use thereof, would create, any difficulty with other contractors and/or labor and/or materials engaged or used by Tenant or Landlord or others in the construction, maintenance and/or operation of the Building or any part thereof. Without limiting any other provision of this Lease, all contractors, vendors and service providers requiring access to the Premises or the Building shall be subject to Landlord's prior and continuing review and approval with respect to insurance, security and operational matters, and Landlord hereby agrees to be reasonable in all material respects in connection with such review and approval.

<u>ARTICLE 19</u>

<u>TENANT'S DEFAULT; LANDLORD'S REMEDIES</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT'S DEFAULT</u>. This Lease and the Lease Term are subject to the limitation that Tenant shall be in default if, at any time during the Lease Term, any one or more of the following events (herein called an "Event of Default") shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if Tenant shall fail to pay any installment of the Annual Fixed Rent, or any regularly recurring installment of Additional Rent such as payments on account of Taxes and Operating Expenses, when the same shall become due and payable and such failure shall continue for seven (7) Operating Days after written notice thereof from Landlord to Tenant (provided that if Tenant shall have failed to pay any such installment or portion thereof when the same becomes due and payable two (2) times during any Lease Year and Landlord shall in each case have given Tenant notice of such failure, then after such second time it shall be an Event of Default in the event Tenant thereafter during such Lease Year fails to pay any such installment or portion thereof on the date the same becomes due and payable, without notice from Landlord; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if Tenant shall fail to pay any non-regularly recurring amount of Additional Rent, or any other non-regularly recurring charges for which provision is herein made, or any part thereof, when the same shall become due and payable and such failure shall continue for thirty (30) days after notice thereof from Landlord to Tenant (provided that if Tenant shall have failed to pay any such amount or other charge or portion thereof when the same becomes due and payable three (3) times during any Lease Year and Landlord shall in each case have given Tenant notice of such failure, then after such fourth time it shall be an Event of Default in the event Tenant thereafter during such Lease Year fails to pay any such installment or other charge or portion thereof on the date the same becomes due and payable, without notice (or, in the case of other charges which are payable on or subsequent to demand, further notice) from Landlord); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if Tenant fails to comply with the first sentence of Section 20.15 of this Lease and such failure shall continue for five (5) Operating Days after written notice thereof from Landlord to Tenant; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if an assignment or subletting shall occur or if Tenant's interest in this Lease shall devolve upon or pass to any person or entity, whether by operation of law or otherwise, and whether directly or indirectly, except as expressly permitted by Article 13 hereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if Tenant fails to maintain any of the insurance required to be maintained by Tenant hereunder or to deliver certificates thereof when required hereunder and Tenant fails to remedy such default within ten (10) Operating Days after notice by Landlord to Tenant specifying such default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; intentionally deleted; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if Tenant shall fail to perform or observe any other term, covenant, or condition of this Lease on the part of Tenant to be performed or observed and such failure shall continue for thirty (30) days after notice thereof from Landlord to Tenant, or, if said default is of a nature that it cannot be cured within thirty (30) days, if Tenant shall fail to commence to cure said default within thirty (30) days after receipt of notice thereof and/or fail to diligently prosecute the curing of the same to completion with due diligence, and in any event within such period of time thereafter as will prevent Landlord from being subjected to criminal liability or termination of any Underlying Lease or foreclosure of any Mortgage to the extent Landlord has delivered to Tenant written notice of same; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; intentionally omitted; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if Tenant shall admit in writing its inability to, pay its debts as they become due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if Tenant shall commence or institute any case, proceeding or other action (x) seeking relief on its behalf as debtor, or to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding up, liquidation, dissolution, composition or other relief with respect to it or its debts under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, or (y) seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or any substantial part of its property; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if Tenant shall make a general assignment for the benefit of creditors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if any case, proceeding or other action shall be commenced or instituted against Tenant (x) seeking to have an order for relief entered against it as debtor or to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding up, liquidation, dissolution, composition or other relief with respect to it or its debts under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, or (y) seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or any substantial part of its property, which either (1) results in any such entry of an order for relief, adjudication of bankruptcy or insolvency or such an appointment or the issuance or entry of any other order having a similar effect or (2) remains undismissed for a period of ninety (90) days; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if any case, proceeding or other action shall be commenced or instituted against Tenant seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its property which results in the entry of an order for any such relief which shall not have been vacated, discharged, or stayed or bonded pending appeal within ninety (90) days from the entry thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if Tenant shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clauses (ii), (iii), (iv) or (v) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if a trustee, receiver or other custodian is appointed for any substantial part of the assets of Tenant which appointment is not vacated or effectively stayed within thirty (30) days, or if any such vacating or stay does not thereafter remain in effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if, following ten (10) Operating Days' written notice from Landlord, Tenant fails to timely deliver a Replacement Letter in accordance with the terms of Section 20.22(a) hereof or to restore the Letter to the face amount then required under Section 20.22(b) hereof after Landlord has drawn upon the Letter, or if the issuer of the Letter does not honor the Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2&nbsp;&nbsp;&nbsp;&nbsp; <u>TERMINATION</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an Event of Default described in Section 19.1(h) hereof shall occur, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if an Event of Default described in Sections 19.1(a), (c), (d), (f) or (i) hereof shall occur and Landlord, at any time thereafter, at its option gives written notice to Tenant stating that this Lease and the Lease Term shall expire and terminate on the date specified in such notice, which date shall not be less than five (5) Operating Days after the giving of such notice, then this Lease and the Lease Term and all rights of Tenant under this Lease shall expire and terminate, as if the date on which the Event of Default described in clause (i) above occurred, or the date specified in the notice given pursuant to clause (ii) above, as the case may be, were the date herein definitely fixed for the expiration of the Lease Term (except that Tenant shall continue liable as hereinafter provided) and Tenant immediately shall quit and surrender the Premises.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Anything contained herein to the contrary notwithstanding, if such termination shall be stayed by order of any court having jurisdiction over any proceeding described in Section 19.1(h) hereof, or by federal or state statute, then, following the expiration of any such stay, or if Tenant, or Tenant as debtor-in-possession or the trustee appointed in any such proceeding (being collectively referred to as "Tenant" only for the purposes of paragraphs (b) and (c) of this Section 19.2) shall fail to assume Tenant's obligations under this Lease within the period prescribed therefor by law or within one hundred twenty (120) days after entry of the order for relief or as may be allowed by the court, or, if Tenant shall fail to provide adequate protection of Landlord's right, title and interest in and to the Premises or adequate assurance of the complete and continuous future performance of Tenant's obligations under this Lease, Landlord, to the extent permitted by law or by leave of the court having jurisdiction over such proceeding, shall have the right, at its election, to terminate this Lease on seven (7) Operating Days' notice to Tenant and upon the expiration of said seven (7) Operating Day period this Lease shall cease and expire as aforesaid and Tenant shall immediately quit and surrender the Premises as aforesaid. Upon the termination of this Lease provided above, Landlord, without notice, may re-enter and repossess the Premises using such force for that purpose as may be necessary without being liable to indictment, prosecution or damages therefor and may dispossess Tenant by summary proceedings or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For the purposes of the preceding paragraph (b), adequate protection of Landlord's right, title and interest in and to the Premises, and adequate assurance of the complete and continuous future performance of Tenant's obligations under this Lease, shall include, without limitation, the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that Tenant comply with all of its obligations under this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that Tenant pay to Landlord, on the first day of each month occurring subsequent to the entry of such order, or the effective date of such stay, a sum equal to the amount by which the Premises diminished in value during the immediately preceding monthly period, but, in no event, an amount which is less than the aggregate rent payable for such monthly period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that Tenant continue to use the Premises in the manner required by this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that Landlord be permitted to supervise the performance of Tenant's obligations under this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that Tenant pay to Landlord within thirty (30) days after entry of such order or the effective date of such stay, as partial adequate protection against future diminution in value of the Premises and adequate assurance of the complete and continuous future performance of Tenant's obligations under this Lease, an additional security deposit in an amount equal to the Annual Fixed Rent then payable hereunder plus an amount equal to all Additional Rent payable to Landlord for the preceding calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that Tenant has and will continue to have unencumbered assets after the payment of all secured obligations and administrative expenses to assure Landlord that sufficient funds will be available to fulfill the obligations of Tenant under this Lease;

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&nbsp;&nbsp;&nbsp;&nbsp;(vii) &nbsp;&nbsp;&nbsp;&nbsp; that if Tenant assumes this Lease and proposes to assign the same (pursuant to Title 11 U.S.C. § 365, or as the same may be amended) to any person who shall have made a bona fide offer to accept an assignment of this Lease on terms acceptable to such court having competent jurisdiction over Tenant's estate, then notice of such proposed assignment, setting forth (x) the name and address of such person, (y) all of the terms and conditions of such offer and (z) the adequate assurance to be provided Landlord to assure such person's future performance under this Lease, including, without limitation, the assurances referred to in Title 11 U.S.C. § 365(b)(3), as it may be amended, shall be given to Landlord by Tenant no later than thirty (30) days after receipt by Tenant of such offer, but in any event no later than ten (10) days prior to the date that Tenant shall make application to such court for authority and approval to enter into each assignment and assumption, and Landlord shall thereupon have the prior right and option, to be exercised by notice to Tenant given at any time prior to the effective date of such proposed assignment, to accept, or to cause Landlord's designee to accept, an assignment of this Lease upon the same terms and conditions and for the same consideration, if any, as the bona fide offer made by such person less any brokerage commissions which may be payable out of the consideration to be paid by such person for the assignment of this Lease; and

&nbsp;&nbsp;&nbsp;&nbsp;(viii) that if Tenant assumes this Lease and proposes to assign the same, and Landlord does not exercise its option pursuant to paragraph (vii) of this Section 19.2(c), Tenant hereby agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; such assignee shall either (1) have a tangible net worth in excess of $250,000,000, as more particularly described above in Section 13.1(c) or (2) have (x) a tangible net worth in excess of $100,000,000, as more particularly described above in Section 13.1(c) and (y) delivered to Landlord an additional security deposit in an amount equal to the Annual Fixed Rent then payable hereunder plus an amount equal to all recurring Additional Rent payable to Landlord for the preceding calendar year, or such Tenant's obligations under this Lease shall be unconditionally guaranteed by a person having a net worth not less than $250,000,000, as set forth in Section 13.1(c) (or such guarantor shall have a tangible net worth in excess of $100,000,000, as more particularly described above in Section 13.1(c) and such assignee or guarantor shall have delivered to Landlord an additional security deposit in an amount equal to the Annual Fixed Rent then payable hereunder plus an amount equal to all recurring Additional Rent payable to Landlord for the preceding calendar year);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; such assignee shall not use the Premises except for general office purposes and other uses consistent with the Permitted Use and subject to all the restrictions contained in Article 10 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; such assignee shall assume in writing all of the terms, covenants and conditions of this Lease; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in the event that the Annual Fixed Rent paid by such assignee is greater than the Annual Fixed Rent reserved hereunder, Tenant shall pay over to Landlord one-half of such difference; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if such assignee makes a lump sum payment to Tenant or Tenant's trustee for the right to assume this Lease, Tenant or Tenant's trustee shall pay over to Landlord one-half of such payment,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If, at any time, (i) Tenant's obligations under this Lease shall have been guaranteed by any person other than Tenant, or (ii) Tenant's interest in this Lease shall have been assigned, the word "Tenant", as used in clause (h) of Section 19.1, shall be deemed to mean any one or more of the persons primarily or secondarily liable for Tenant's obligations under the Lease. Any monies received by Landlord from or on behalf of Tenant during the pendency of any proceeding of the types referred to in said clause (h) shall be deemed paid as compensation for the use and occupation of the Premises and the acceptance of any such compensation by Landlord shall not be deemed an acceptance of rent or a waiver on the part of Landlord of any rights under this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The provisions of subdivisions (b) through (d) of this Section 19.2 apply only in respect of the circumstances described in subsection 19.1(h) and as such are not intended to constitute modifications of any of the provisions of Article 13 except in such circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3&nbsp;&nbsp;&nbsp;&nbsp; <u>RE-ENTRY; CONTINUED LIABILITY; RELETTING</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If this Lease shall be terminated pursuant to or as provided in Section 19.2, Landlord and Landlord's agents and employees may immediately or at any time thereafter re-enter the Premises, or any part thereof in the name of the whole, either by summary dispossess proceedings or by any suitable action or proceeding at law or otherwise, without being liable to indictment, prosecution or damages therefor, and may repossess the same, and may remove any persons therefrom, to the end that Landlord may have, hold, possess and enjoy the Premises again.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If this Lease is terminated, or in the event of the termination of this Lease and re-entry, by or under any proceeding or action or any provision of law by reason of an Event of Default hereunder on the part of Tenant, then, in any such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Annual Fixed Rent and Additional Rent shall become due thereupon and be paid by Tenant up to the time of such re-entry, dispossession and/or termination, together with such reasonable out-of-pocket expenses as Landlord may incur for legal expenses, attorneys' fees and disbursements, brokerage, and/or putting the Premises in good order, or for preparing the same for reletting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord may relet the Premises or any part or parts thereof, either in the name of Landlord or otherwise (and Landlord shall use commercially reasonable efforts to re-let the Premises on commercially reasonable market terms for the remainder of what would otherwise have constituted the balance of the Term), for a term or terms, which may at Landlord's option be less than or exceed the period which would otherwise have constituted the balance of the Term of this Lease and may grant contributions or free rent;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant or the legal representatives of Tenant shall also pay Landlord, as liquidated damages for the failure of Tenant to observe and perform Tenant's covenants herein contained, amounts equal to the Annual Fixed Rent and Additional Rent which would have been payable by Tenant had this Lease not been so terminated, or had Landlord not so reentered the Premises, such payments to be made upon the due dates therefor specified herein following such termination or re-entry and continuing until the Expiration Date; provided, however, that if Landlord shall relet the Premises, Landlord shall credit Tenant, up to the amount due from Tenant, with the net rent received by Landlord for such reletting after deducting from the first installments of such rent received the expenses incurred or paid by Landlord in terminating this Lease or in re-entering the Premises and in securing possession thereof, as well as the expenses of reletting, including legal expenses, attorneys' fees and disbursements, brokerage commissions, alteration costs and other expenses incurred for keeping the Premises in good order or for preparing the same for reletting; <u>provided</u> <u>that</u> if the Premises or any part thereof should be relet in combination with other space or for a term which extends beyond the Expiration Date, then proper apportionment (on a per Rentable Square Foot basis in the case of a reletting in combination with other space) shall be made of the rent received from such reletting and of the expenses of reletting. Any suit brought to collect the amount of the aforesaid damages for any month or months shall not prejudice in any way the rights of Landlord to collect the damages for any subsequent month or months by a similar proceeding. Nothing contained herein shall be deemed to require Landlord to postpone suit until the date when the Lease Term would have expired if it had not been so terminated under or pursuant to Section 19.2, or under any provision of law, or had Landlord not re-entered the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms "re-enter" and "re-entry," as used herein, are not limited to their technical legal meanings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.4&nbsp;&nbsp;&nbsp;&nbsp; <u>LIQUIDATED DAMAGES</u>. Landlord may elect, as an alternative to the damages and charges provided for in Section 19.3(b)(iii), and in lieu of all other such damages thereafter accruing, to have Tenant pay the liquidated damages provided for below, which election may be made by notice given to Tenant at any time after the termination of this Lease under or pursuant to Section 19.2, above, and whether or not Landlord shall have collected any damages as hereinabove provided in Section 19.3. Upon such notice, Tenant shall promptly pay to Landlord, as liquidated damages, in addition to any damages collected or due from Tenant from any period prior to such notice, such a sum as at the time of such notice represents the amount of the excess, if any, of (i) the discounted present value, at a discount rate of six percent (6%), of the Annual Fixed Rent, Additional Rent and other charges which would have been payable by Tenant under this Lease for the remainder of the Lease Term if Tenant had fulfilled all of its obligations hereunder, over and above (ii) the discounted present value, at a discount rate of six percent (6%), of the Annual Fixed Rent, Additional Rent and other charges that would be received by Landlord (after deducting all reasonably estimated costs of reletting, including, without limitation, brokerage fees, advertising, required tenant improvements and concessions and attorneys' fees) if the Premises were relet at the time of such notice for the remainder of the Lease Term at the fair rental value thereof at the time of such notice, less (iii) the aggregate amount of liquidated damages previously collected by Landlord pursuant to the provisions of Section 19.3(b)(iii) for the same period.

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For the purposes of this Article, if Landlord elects to require Tenant to pay liquidated damages in accordance with this Section 19.4, (a) the total rent shall be computed by assuming Tenant's Share of Taxes and Operating Expenses under Article 6 to be the same as were payable for the twelve (12) calendar months (or if fewer than twelve calendar months shall have elapsed since the date hereof, for the partial year, but annualized) immediately preceding such termination or re-entry, and (b) if the Premises or any part thereof shall have been relet by Landlord for the unexpired portion of the Lease Term, or any part thereof, before presentation of proof of such damages to any court, commission or tribunal, the amount of rent received upon such reletting shall be prima facie evidence of the fair rental value of the Premises, or part thereof, so relet during the term of such reletting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.5&nbsp;&nbsp;&nbsp;&nbsp; <u>RIGHTS IN THE EVENT OF TENANT'S BANKRUPTCY</u>. Nothing contained in this Lease shall limit or prejudice the right of Landlord to prove for and obtain, in proceedings for the termination of this Lease by reason of bankruptcy or insolvency, an amount equal to the maximum allowed by any statute or rule of law in effect at the time when, and governing the proceedings in which, the damages are to be proved, whether or not the amount be greater, equal to, or less than the amount of the loss or damages referred to in Section 19.4 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.6&nbsp;&nbsp;&nbsp;&nbsp; <u>WAIVER OF REDEMPTION, ETC</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant, for itself and any and all persons claiming through or under Tenant, including its creditors, upon the termination of this Lease or expiration of the Lease Term in accordance with the terms hereof, or in the event of entry of judgment for the recovery of the possession of the Premises in any action or proceeding, or if Landlord shall reenter the Premises by process of law or otherwise, hereby waives any right of redemption provided or permitted by any statute, law or decision now or hereafter in force, and does hereby waive, surrender and give up all rights or privileges which it or they may or might have under and by reason of any present or future law or decision, to redeem the Premises or for a continuation of this Lease for the Term of this Lease after having been dispossessed or ejected therefrom by process of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If a monetary Event of Default shall have occurred, Tenant waives its right, if any, to designate the item against which any payments made by Tenant are to be credited and Tenant agrees that Landlord may apply any payment made by Tenant to any items as Landlord may see fit, irrespective of and notwithstanding any designation or request by Tenant as to the items against which any such payment shall be credited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord and Tenant each hereby waive trial by jury in any action, proceeding or counterclaim brought by either against the other on any matter whatsoever arising out of or in any way connected with the Lease, the relationship of Landlord and Tenant and Tenant's use or occupancy of the Premises or any other claim (other than claim for personal injuries or property damage). It is further mutually agreed that if Landlord commences any summary proceedings for non-payment of rent, Tenant will not interpose and does hereby waive the right to interpose any counterclaim of whatever nature or description in such proceeding unless Tenant will be barred from asserting such claim in a separate action or proceeding.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.7&nbsp;&nbsp;&nbsp;&nbsp; <u>ADDITIONAL RIGHTS OF LANDLORD</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event of a breach or threatened breach by either party hereto of any term, covenant or condition of this Lease, the other party shall have the right to enjoin such breach and the right to invoke any other remedy allowed by law or in equity as if no remedies were provided in this Lease for such breach. The rights to invoke the remedies hereinbefore set forth are cumulative and shall not preclude either party from invoking any other remedy allowed at law or in equity except to the extent limited by the express provisions of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If this Lease shall terminate under or pursuant to Section 19.2, or if Landlord shall re-enter the Premises under the provisions of this Article, or in the event of the termination of this Lease, or of re-entry by or under any summary dispossess or other proceeding or action or any provision of law by reason of Tenant's default hereunder, Landlord shall be entitled to retain all moneys, if any, paid by Tenant to Landlord, whether as advance rent, security or otherwise, but such moneys shall be credited by Landlord against any Annual Fixed Rent or Additional Rent due from Tenant at the time of such termination or re-entry or, at Landlord's option, against any damages payable by Tenant under this Article or pursuant to law, and any excess remaining after such application shall be returned promptly to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.8&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD'S DEFAULT</u>. Subject to Section 20.16(b), Landlord shall in no event be in default in the performance of any of Landlord's obligations hereunder unless and until (i) Landlord shall have failed to perform such obligations within thirty (30) days (or, if an obligation is such that it cannot be performed within thirty (30) days, Landlord shall have failed to commence with reasonable diligence performance of the same within such thirty (30) day period) after notice by Tenant to Landlord reasonably specifying wherein Landlord has failed to perform any such obligation, and (ii) Tenant has given notice to all parties as required under Section 17.2 hereof and such parties have not commenced the performance of such obligations within the time provided in Section 17.2.

<u>ARTICLE 20</u>

<u>MISCELLANEOUS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1&nbsp;&nbsp;&nbsp;&nbsp; <u>WAIVER</u>. Failure on the part of Landlord or Tenant to complain of any action or non-action on the part of the other, no matter how long the same may continue, shall never be a waiver by Tenant or Landlord, respectively, of any of the other's rights hereunder.

Further, no waiver at any time of any of the provisions hereof by Landlord or Tenant shall be construed as a waiver of any of the other provisions hereof, and a waiver at any time of any of the provisions hereof shall not be construed as a waiver at any subsequent time of the same provisions. The consent or approval of Landlord or Tenant to or of any action by the other requiring such consent or approval shall not be construed to waive or render unnecessary Landlord's or Tenant's consent or approval to or of any subsequent similar act by the other. No provision of this Lease shall be deemed to have been waived by either Landlord or Tenant, unless such waiver be in writing signed by the party against whom such waiver is claimed.

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No payment by Tenant, or acceptance by Landlord, of a lesser amount than shall be due from Tenant to Landlord shall be treated otherwise than as a payment on account. The acceptance by Landlord of a check for a lesser amount with an endorsement or statement thereon, or upon any letter accompanying such check, that such lesser amount is payment in full, shall be given no effect, and Landlord may accept such check without prejudice to any other rights or remedies which Landlord may have against Tenant. Further, the acceptance by Landlord of Annual Fixed Rent, Additional Rent or any other charges paid by Tenant under this Lease shall not be or be deemed to be a waiver by Landlord of any default by Tenant, whether or not Landlord knows of such default, except for such defaults as to which such payment relates and then only to the extent of the amount of such payment. If Landlord and Tenant shall now or hereafter enter into any agreement for the renewal of this Lease at the expiration of the Lease Term, the execution of such renewal agreement between Landlord and Tenant prior to the expiration of the Lease Term shall not be considered a vested right in Tenant to such further term so as to prevent Landlord from terminating this Lease and any such extension or renewal thereof if Landlord became entitled so to do during the remainder of the original Lease Term; and if Landlord shall so terminate this Lease, any such renewal or extension previously entered into between Landlord and Tenant or the right of Tenant to any such renewal or extension shall also be terminated thereby. Any right herein contained on the part of Landlord to terminate this Lease shall continue during any extension or renewal hereof and any default or Event of Default which occurs and is not cured prior to the commencement of a renewal term or extension of the Lease Term shall continue as such in and during such renewal term or extension of the Lease Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2&nbsp;&nbsp;&nbsp;&nbsp; <u>CONSENTS; ARBITRATION</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except to the extent expressly set forth in the immediately succeeding sentence, wherever in this Lease Landlord's consent or approval is required and Landlord has expressly agreed in writing that such consent or approval shall not be unreasonably withheld, condition or delayed, if Landlord shall refuse, condition or delay such consent or approval, then Tenant shall not be entitled, nor shall Tenant make, any claim, and Tenant hereby waives any claim, for money damages (nor shall Tenant claim any money damages by way of set-off, counterclaim or defense) based upon any claim or assertion by Tenant that Landlord unreasonably withheld, conditioned or delayed its consent or approval. Subject to the provisions of Sections 20.2(b) and (c) below, Tenant's sole remedy in such circumstance shall be an action or proceeding to enforce any such provision by way of specific performance, injunction or declaratory judgment unless, with respect to Landlord's refusal to consent to a subletting or assignment under Section 13.5 or Section 13.6 of this Lease, Landlord is finally adjudicated to have acted arbitrarily, in bad faith or with malicious intent in denying such consent or approval, in which event Tenant's remedies shall not be so limited and Tenant shall have all remedies (including pursuing monetary damages) available to it at law or in equity subject to the other terms and provisions of this Lease. In no event shall Landlord's withholding consent or approval be deemed to be unreasonable, and in no event shall Tenant dispute the withholding of such consent or approval, if such withholding of consent is due to Landlord's failure to obtain the consent of a Mortgagee or Overlandlord, despite the exercise of commercially reasonable efforts by Landlord to obtain such consent or approval. Where Landlord has not expressly agreed in writing that Landlord's consent or approval shall not be unreasonably withheld, condition or delayed, it is the express intent of the parties that any such consent or approval shall be given or required only in the sole, absolute and unfettered discretion of Landlord, and may be withheld for any reason whatsoever.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In any instance where there is a dispute between Landlord and Tenant (i) as to the reasonableness of Landlord's refusal to consent to (x) a subletting or assignment under Section 13.5 or Section 13.6 of this Lease or (y) an Alteration pursuant to Section 8.1 of this Lease, (ii) any other matters which are expressly made arbitrable under this Lease (other than determinations of the Annual Fixed Rent or a particular prevailing market rate or Fair Market Rent), or (iii) the parties otherwise agree to submit such dispute to arbitration, then either party may (or shall) submit such dispute for resolution by arbitration in the City of New York in accordance with the Commercial Arbitration Rules (Expedited Procedures) of the AAA, except that the terms of this Section 20.02(b) shall supersede any conflicting or otherwise inconsistent rules. Any dispute as to (A) the reasonableness of Landlord's withholding of consent or (B) any other matter arising out of this Lease that is subject to arbitration in accordance with this Section 20.02(b) shall, unless a different time period is expressly set forth herein, be submitted to arbitration by Tenant within thirty (30) days after notice of the withholding of consent has been given by Landlord to Tenant or, in the case of clause (B) above, Landlord or Tenant, as the case may be, received notice of such dispute. Provided the rules and regulations of the AAA so permit, (i) the AAA shall, within two (2) Operating Days after such submission or application, select a single arbitrator having at least ten (10) years' experience in leasing and management of commercial properties similar to the Building, (ii) the arbitration shall commence two (2) Operating Days thereafter and shall be limited to a maximum of two (2) days, with each party having no more than a total of two (2) hours to present its case two (2) hours to cross examine or interrogate persons supplying information or documentation on behalf of the other party, and one (1) hour to summarize in a closing statement such party's case, and (iii) the arbitrator shall make a determination within three (3) Operating Days after the conclusion of the presentation of Landlord's and Tenant's cases, which determination shall be limited to a decision upon (A) whether Landlord acted reasonably in withholding its consent or approval or otherwise acted in an arbitrary or capricious manner where Landlord had a duty to act reasonably as expressly required by the terms hereof, or (B) the specific dispute presented to the arbitrator, as applicable. The arbitrator's determination shall be final and binding upon the parties, whether or not a judgment shall be entered in any court. All actions necessary to implement such decision shall be undertaken as soon as possible, but in no event later than ten (10) Operating Days after the rendering of such decision. The arbitrator's determination may be entered in any court having jurisdiction thereof. All fees payable to the AAA for services rendered in connection with the resolution of the dispute shall be paid by the unsuccessful party, as determined by the arbitrator. Notwithstanding anything to the contrary contained herein, (i) the arbitrator shall have no power to vary or modify the provisions of this Lease and jurisdiction is limited accordingly and (ii) each party shall bear the expense of its own counsel and witnesses in connection with such arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the determination of any such arbitration pursuant to paragraph (b) above shall be that Landlord was unreasonable in refusing to give approval under Section 13.5 or Section 13.6 of this Lease (or unreasonably condition or delaying such approval), Tenant's sole remedy arising out of such arbitrator's determination shall be to proceed on the basis that the requested consent or approval has been given (subject to Landlord's payment obligations, if any, as expressly set forth in the second sentence of Section 20.2(a) above).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3 &nbsp;&nbsp;&nbsp;&nbsp; <u>QUIET ENJOYMENT</u>. Landlord agrees that Tenant shall and may peaceably hold and enjoy the Premises during the term of this Lease, without interruption or disturbance from Landlord or persons claiming through or under Landlord, subject, however, to the terms of this Lease and to any applicable non disturbance agreement entered into between Tenant and any Mortgagee or Overlandlord. This covenant shall be construed as running with the Land to and against subsequent owners and successors in interest, and is not, nor shall it operate or be construed as, a personal covenant of Landlord, except to the extent of Landlord's interest in the Land and Building, and this covenant and any and all other covenants of Landlord contained in this Lease shall be binding upon Landlord and upon such subsequent owners and successors in interest of Landlord's interest under this Lease, to the extent of their respective interests in the Land and Building, as and when they shall acquire same and then only for so long as they shall retain such interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.4&nbsp;&nbsp;&nbsp;&nbsp; <u>SURRENDER</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No act or thing done by Landlord during the Lease Term shall be deemed an acceptance of a surrender of the Premises, and no agreement to accept such surrender shall be valid, unless in writing signed by Landlord. No employee of Landlord or of Landlord's agents shall have any power to accept the keys of the Premises prior to the termination of this Lease; provided, however, that the foregoing shall not apply to the delivery of keys to Landlord or its agents in its (or their) capacity as managing agent or for purpose of emergency access. In any event, however, the delivery of keys to any employee of Landlord or of Landlord's agents shall not operate as a termination of this Lease or a surrender of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon the expiration or earlier termination of the Lease Term, or upon any re-entry by Landlord of the Premises, Tenant shall quit and surrender the Premises to Landlord vacant, broom clean and in good order, condition and repair, except for ordinary wear and tear, damage by fire or other casualty, if any, and other conditions requiring repair, if any, which are not the obligation of Tenant to repair under the terms of this Lease, and Tenant shall remove all of Tenant's Property therefrom and shall restore the Premises to the extent required under any of the other provisions of this Lease. Tenant shall repair any damage to the Premises occasioned by the removal by Tenant or any person claiming under Tenant of any of Tenant's Property and any Specialty Alterations required to be removed pursuant to this Lease. Tenant's obligations pursuant to this paragraph shall survive the expiration or sooner termination of the Lease Term. Tenant expressly waives, for itself and for anyone claiming through or under Tenant, any rights which Tenant may have under the provisions of Section 2201 of the New York Civil Practice Law and Rules and of any successor law of like import then in force in connection with any holdover summary proceedings which Landlord may institute to enforce the foregoing provisions of this paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.5&nbsp;&nbsp;&nbsp;&nbsp; <u>BROKER</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant warrants and represents that Tenant has not dealt with any broker in connection with the consummation of this Lease; and in the event any claim is made against Landlord by any other broker or agent alleging dealings with Tenant, Tenant shall defend Landlord against such claim, using counsel approved by Landlord, such approval not to be unreasonably withheld, and save harmless and indemnify Landlord on account of any loss, cost, damage and expense (including, without limitation, reasonable out of pocket attorneys' fees and disbursements) which may be actually suffered or incurred by Landlord by reason of such claim.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord warrants and represents that Landlord has not dealt with any broker in connection with the consummation of this Lease; and in the event any claim is made against Tenant by any broker or agent alleging dealings with Landlord, Landlord shall defend Tenant against such claim, using counsel approved by Tenant, such approval not to be unreasonably withheld, and save harmless and indemnify Tenant on account of any loss, cost, damage and expense (including, without limitation, reasonable out of pocket attorneys' fees and disbursements) which may be actually suffered or incurred by Tenant by reason of such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.6&nbsp;&nbsp;&nbsp;&nbsp; <u>INVALIDITY OF PARTICULAR PROVISIONS</u>. If any term or provision of this Lease, or the application thereof to any person or circumstance, shall to any extent be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.7&nbsp;&nbsp;&nbsp;&nbsp; <u>PROVISIONS BINDING, ETC</u>. The obligations of this Lease shall run with the Land, and except as herein otherwise provided, the terms hereof shall be binding upon and shall inure to the benefit of the successors and assigns, respectively, of Landlord and Tenant and, if Tenant shall be an individual, upon and to his heirs, executors, administrators, successors and assigns. The reference contained herein to successors and assigns of Tenant is not intended to constitute a consent to assignment by Tenant, but has reference only to those instances in which Landlord may hereafter give consent to a particular assignment as required by the provisions of Article 13 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.8&nbsp;&nbsp;&nbsp;&nbsp; <u>RECORDING OF MEMORANDUM</u>. Upon request by Tenant, Landlord shall execute, acknowledge and deliver to Tenant a memorandum of this Lease in the form attached hereto as Exhibit U, together with such other instruments as may be reasonably necessary to record such memorandum. Tenant may record such memorandum of this Lease in the Register's Office, and shall be responsible for all recording fees, charges and taxes (if any) in connection therewith. Tenant shall execute a termination of memorandum of this Lease upon the expiration or earlier termination of the Lease Term in such form as reasonably agreed to by Landlord and Tenant, with any modifications thereto then reasonably required under applicable legal requirements, which Landlord may then record in the Register's Office and Tenant shall reimburse Landlord for all reasonable out-of-pocket costs actually incurred by Landlord in connection therewith as Additional Rent within thirty (30) days after receipt of an invoice therefor from Landlord; provided, however, if Tenant fails to execute and record such termination of memorandum of this Lease within ten (10) Operating Days following the expiration or termination of the Lease Term, Tenant hereby constitutes and appoints Landlord as Tenant's attorney-in-fact, which appointment as attorney-in-fact is irrevocable and coupled with an interest, to execute and record, at Tenant's sole cost and expense, any such termination of memorandum of this Lease. The provisions of this Section 20.8 shall expressly survive the Expiration Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.9&nbsp;&nbsp;&nbsp;&nbsp; <u>NOTICES</u>. Whenever, by the terms of this Lease, any notice, demand, request, approval, consent or other communication (each of which shall be referred to as a "notice") shall or may be given either to Landlord or to Tenant, such notice shall be in writing and shall be deemed sufficiently given or rendered if (i) hand delivered, or (ii) sent by certified or registered United States mail, postage prepaid, return receipt requested, or (iii) sent by reputable overnight delivery service, such as UPS or FedEx, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If intended for Landlord, addressed to Landlord at the Present Mailing Address of Landlord set forth in Section 1.2 (or to such other address or addresses as may from time to time hereafter be designated by Landlord by like notice), with a copy to:

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Attention: Robert S. Nash, Esq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If intended for Tenant, addressed to Tenant at the Present Mailing Address of Tenant set forth in Section 1.2 until the date that Tenant occupies the Premises for the conduct of its business, and thereafter at the Premises, with a copy to:

Patterson Belknap Webb & Tyler LLP

1133 Avenue of the Americas

New York, New York 10036

Attention: Robert M. Safron, Esq.

A notice shall be deemed to have been given: in the case of hand delivery, at the time of delivery or refusal to accept delivery; in the case of registered or certified mail or overnight delivery service, upon delivery or refusal to accept delivery; or in the event of failure to deliver by reason of changed address of which no notice was given or refusal to accept delivery, as of the date of such failure or refusal. A party receiving a notice which does not comply with the technical requirements for notice under this Section 20.9 may elect to waive any deficiencies and treat the notice as having been properly given. In no event shall the validity of any notice actually given to Landlord or Tenant be affected by any failure to deliver copies of such notices to counsel as hereinabove provided. Any notice to be given by any party may be given by such party's attorney. Notwithstanding anything to the contrary contained herein, rent bills and statements regarding Taxes and Operating Expenses shall be deemed sufficiently given or rendered if sent by regular United States mail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.10&nbsp;&nbsp;&nbsp;&nbsp; <u>WHEN LEASE BECOMES BINDING</u>. Employees or agents of Landlord have no authority to make or agree to make a lease or any other agreement or undertaking in connection herewith. The submission of this document for examination and negotiation does not constitute an offer to lease, or a reservation of, or option for, the Premises, and this document shall become effective and binding only upon the execution and delivery hereof by both Landlord and Tenant. All negotiations, considerations, representations and understandings between Landlord and Tenant are incorporated herein and may be modified or altered only by written agreement between Landlord and Tenant, and no act or omission of any employee or agent of Landlord shall alter, change or modify any of the provisions hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.11&nbsp;&nbsp;&nbsp;&nbsp; <u>HEADINGS</u>. The Article and Section headings throughout this Lease and the **Table of Contents** hereof are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.12&nbsp;&nbsp;&nbsp;&nbsp; <u>SUSPENSION OF SERVICES</u>. Landlord reserves the right to interrupt, curtail or suspend the services required to be furnished by Landlord under Section 7.3 and Exhibit D when the necessity therefor arises by reason of accident, repairs, emergency, mechanical breakdown or governmental preemption or restriction, or when required by any law, order or regulation of any Federal, State, County or municipal authority, or as the result of the making by Landlord of any additions, improvements or installations in the Building or for any cause beyond the reasonable control of Landlord. Landlord shall provide Tenant with advance notice as is reasonable under the circumstances of any suspension, curtailment or interruption of service. Landlord shall use reasonable diligence to complete all required repairs or other necessary work as quickly as reasonably possible so that Tenant's inconvenience resulting therefrom may be for as short a period of time as circumstances will reasonably permit and in a manner so as to minimize interference with Tenant's ordinary use and enjoyment of the Premises, and, where the cessation or interruption of such service has occurred due to circumstances or conditions beyond the Property boundaries, to cause the same to be restored by diligent application or request to the relevant party or parties. Anything in this Lease to the contrary notwithstanding, from and after the date that Tenant has moved into the Premises for the conduct of its business, Landlord shall not interrupt, curtail or suspend the services required to be furnished by Landlord under Section 7.3 and Exhibit D during Operating Hours on Operating Days if such interruption, curtailment or suspension would materially interfere with the conduct of Tenant's business in the Premises or Tenant's access to the Premises, except when the necessity therefor arises by reason of accident, emergency, mechanical breakdown or governmental preemption or restriction, or when required by any law, order or regulation of any Federal, State, County or municipal authority, or for any cause beyond the reasonable control of Landlord. Except as expressly provided herein, no diminution or abatement of rent or other compensation shall or will be claimed by Tenant as a result of, nor shall this Lease or any of the obligations of Tenant be affected or reduced by reason of, any such interruption, curtailment or suspension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.13&nbsp;&nbsp;&nbsp;&nbsp; <u>RULES AND REGULATIONS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord shall have the right, from time to time during the term of this Lease, to make reasonable changes in, and reasonable additions to, the Rules and Regulations set forth in Exhibit E provided that such changes or additions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall be similar to rules and regulations of comparable first-class office buildings,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall not apply to matters other than matters similar to those covered in the Rules and Regulations set forth in Exhibit E,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; do not unreasonably interfere with the use of the Premises by Tenant, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall not affect Tenant only and shall not be enforced against Tenant in a discriminatory manner, except, in each case, with respect to the License Area (which is specific to Tenant).

Said rules and regulations, as changed in accordance with this Section from time to time, are hereinafter called the "Rules and Regulations".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant's right to dispute the reasonableness of any change in the Rules and Regulations of which Tenant shall have received written shall be deemed waived unless the same is asserted by service of a notice upon Landlord within ninety (90) days after notice is given to Tenant of the adoption of any such change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nothing in this Lease shall be construed to impose upon Landlord any duty or obligation to enforce the Rules and Regulations or terms, covenants or conditions in any other lease against any other tenant. Landlord shall not be liable to Tenant for violation of the Rules and Regulations or of any other lease by other tenants or occupants of the Building, or their servants, agents, visitors or licensees. Notwithstanding the foregoing, Landlord shall not enforce against Tenant any Rules and Regulations which Landlord shall not then be enforcing generally against a majority of other office tenants in the Building. If there shall be any express inconsistencies between this Lease and any Rules and Regulations (now existing or hereafter adopted), the provisions of this Lease shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.14&nbsp;&nbsp;&nbsp;&nbsp; <u>DEVELOPMENT RIGHTS</u>. Tenant hereby expressly and irrevocably waives any and all right(s) it may have in connection with any zoning lot merger or transfer of development rights with respect to the Premises including, without limitation, any rights it may have to be a party to, to contest, or to execute, any Declaration of Restrictions (as such term is defined in Section 12-10 of the Zoning Resolution of the City of New York effective December 15, 1961 and as subsequently amended) with respect to the Premises, which would cause the Premises to be merged with or unmerged from any other zoning lot pursuant to such Zoning Resolution or to any document of a similar nature and purpose, and Tenant agrees that this Lease shall be subject and subordinate to any Declaration of Restrictions or any other document of similar nature and purpose now or hereafter affecting the Property; provided, however, that in no event shall any such zoning lot merger or transfer of development rights unreasonably interfere with Tenant's use and enjoyment of the License Area pursuant to the terms and conditions of this Lease. In confirmation of such subordination and waiver, Tenant shall execute and deliver promptly any certificate or instrument that Landlord reasonably may request and Landlord shall promptly pay, or reimburse Tenant for, all reasonable costs and expenses, attorneys' fees and disbursements and other fees incurred by Tenant in connection therewith.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.15&nbsp;&nbsp;&nbsp;&nbsp; <u>ESTOPPEL CERTIFICATES</u>. Each party agrees, at any time and from time to time, as reasonably requested by the other party, upon not less than ten (10) Operating Days' prior notice, to execute and deliver to the other a written certified statement executed and acknowledged by an appropriate individual representing such party (a) stating that this Lease is then in full force and effect and has not been modified (or if modified, setting forth all modifications), (b) setting forth the then Annual Fixed Rent and Additional Rent, (c) setting forth the date to which the Annual Fixed Rent, Additional Rent and other charges, if any, have been paid, (d) stating whether or not, to the best knowledge of the signatory, the other party is in default under this Lease, and if so, setting forth the specific nature of all such defaults, (e) stating the amount of the security deposit, if any, held by Landlord under this Lease, (f) stating whether there are any subleases affecting the Premises, (g) stating the address of the person to which all notices and communication under this Lease shall be sent, (h) stating the Access Date, the Rent Commencement Date and the Expiration Date, (i) if applicable, stating whether or not there are any amounts of contribution by Landlord towards the cost of Tenant's work not yet advanced to Tenant, (j) stating what portion of the Premises Tenant is in possession and occupancy of pursuant to this Lease, (k) if applicable, and to the best of Tenant's knowledge, all work required to be completed by Landlord in connection with preparing the Premises for Tenant's initial occupancy has been completed by Landlord, and (l) as to any other matters reasonably requested by the party requesting such certificate. The parties acknowledge that any statement delivered pursuant to this Section 20.15 may be relied upon by others with whom the party requesting such certificate may be dealing, which may, for Landlord, include, without limitation, any purchaser or owner of the Land or the Building, or of Landlord's interest (directly or indirectly) in the Land or the Building or any Underlying Lease, or by any Mortgagee or Overlandlord, or by any purchaser of the interest of any Mortgagee or Overlandlord (directly or indirectly) in the Land or the Building, or by any prospective or actual sublessee of the Premises or assignee of this Lease, or permitted transferee of or successor to Tenant. Together with its response to each such request hereunder, Tenant shall use commercially reasonable efforts to provide to Landlord a similar written statement certified to Landlord with respect to each sublease or other occupancy agreement from every subtenant and other occupant of the Premises, provided, however, that Tenant's failure to obtain same shall not in any way be construed as a default by Tenant under this Lease for which for which (A) this Lease could be terminated, (B) Tenant could be denied Landlord's Contribution or (C) Tenant could be denied an abatement under Section 20.12(b) and/or Section 20.16(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.16&nbsp;&nbsp;&nbsp;&nbsp; <u>SELF-HELP</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If an Event of Default shall occur under this Lease or if Tenant shall do or permit to be done any act or thing upon the Premises which would cause Landlord to be in default under any of the provisions of a Superior Lease or Mortgage with respect to provisions as to which Tenant has actual notice of (<u>provided</u>, <u>however</u>, that such provisions do not decrease Landlord's obligations under this Lease (except to a *de minimis* extent) or increase Tenant's non-monetary obligations under this Lease (except to a *de minimis* extent) or monetary obligations under this Lease to any extent), or if Tenant shall fail to comply with its obligations under this Lease and the preservation of property or the safety of any tenant, occupant or other person is threatened, Landlord may, after reasonable prior notice to Tenant except in an emergency (in which event Landlord shall provide Tenant with such notice as is reasonably practicable under the circumstances), perform the same for the account of Tenant or make any expenditure or incur any obligation for the payment of money for the account of Tenant. All reasonable amounts expended by Landlord in connection with the foregoing (but only to the extent that the action taken or permitted to be taken by Tenant would otherwise constitute a default under this Lease (including, without limitation, reasonable attorneys' fees and disbursements in instituting, prosecuting or defending any action or proceeding or recovering possession of the Premises, and the cost thereof), with interest thereon at the Lease Interest Rate, shall be deemed to be Additional Rent hereunder and shall be paid by Tenant to Landlord within thirty (30) days of rendition of any bill or statement to Tenant therefor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If Landlord shall default in the observance or performance of any term or provision of this Lease on Landlord's part to be observed or performed with respect to making repairs to the Premises or any portion thereof and such failure continues for thirty (30) days after prior notice thereof to Landlord or such shorter period, if any, as may be feasible in case of an emergency involving an imminent threat to life or property (such notice to expressly state Tenant's intention to exercise its rights under this Section 20.16(b), then, unless such default is of such a nature that it cannot be completely remedied within said period of thirty (30) days (or such shorter period) and Landlord shall not have failed to commence to remedy such default within such thirty (30) day period (or such shorter period) or to thereafter to diligently prosecute to completion all steps necessary to remedy such default, Tenant, without being under any obligation to do so and without thereby waiving such default, may (subject to the terms of Article 8 hereof, to the extent applicable) remedy such default and perform such repair (but only to the affected portion or portions of the Premises or on the applicable floor of the Premises and nowhere else in the Building) for the account and at the expense of Landlord. All reasonable expenditures made by Tenant in connection therewith, including, but not limited to, reasonable attorney's fees and disbursements in instituting, prosecuting or defending any action or proceeding, shall, at Landlord's option, either be paid to Tenant by Landlord within thirty (30) days after submission by Tenant to Landlord of a reasonably detailed invoice therefor or credited against the next installment of Fixed Rent or Recurring Additional Rent thereafter becoming due hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise provided herein, in the event that (a) Tenant is unable to use ten thousand (10,000) or more contiguous Rentable Square Feet of the Premises for the ordinary conduct of Tenant's business due to Landlord's breach of an obligation under this Lease to provide services, perform repairs, or comply with legal requirements and such condition continues for a period in excess of fourteen (14) consecutive days, subject to delays resulting from Force Majeure, after Tenant gives a notice to Landlord (the "Abatement Notice") stating that Tenant's inability to use the Premises or such portion thereof is solely due to such condition (provided that no notice shall be required where Tenant's inability to use such portion of the Premises results from the closure of the Building or the unavailability of elevator service in substantially all of the Building), (b) Tenant does not actually use or occupy the Premises or such portion thereof for the ordinary conduct of Tenant's business during such period, and (c) such condition has not resulted from the negligence, willful misconduct, breach of contract, violation of the provisions of this Lease by Tenant or any Tenant Related Party beyond any applicable notice and cure period or violation of law required to be complied with by Tenant, then Annual Fixed Rent, Tenant's Tax Payment, Tenant's Operating Payment and all other Additional Rent (except to the extent such portion of the Premises continues to receive at Tenant's request certain services from Landlord, with respect to which services Tenant shall continue to pay the Additional Rent payable in respect thereof in accordance with the applicable terms of this Lease) shall be abated as to the Premises or such affected portion of the Premises on a per diem basis for the period commencing on the fifteenth (15<sup>th</sup>) day after Tenant gives the Abatement Notice, and ending on the earlier of (i) the date Tenant reoccupies the Premises or such portion thereof for the ordinary conduct of its business, or (ii) the date on which such condition is substantially remedied and Landlord has notified Tenant in writing thereof. Notwithstanding the foregoing, if the portion of the Premises that is rendered unusable makes the continued operation of the remainder of the Premises unusable for the Permitted Uses and Tenant actually ceases conducting its business in the normal course thereof in such remaining portion of the Premises and Tenant does not actually occupy such other portion, such remaining portion shall be deemed to be part of the space subject to the abatement provided herein (provided Tenant so indicates in the Abatement Notice) and the Rent for the entire Premises shall be similarly abated in accordance with the terms of this Section 20.16(c) until all or a portion thereof (but only to the extent of the portion thereof) again becomes usable for the ordinary conduct of business.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.17&nbsp;&nbsp;&nbsp;&nbsp; <u>HOLDING OVER</u>. If Tenant remains in possession of the Premises (or any portion thereof) after the expiration or other termination of the Lease Term, then, at Landlord's option, Tenant shall be deemed to be occupying the entire Premises as a month- to-month tenant only, at a monthly rental equal to (a) during the first month of any such holding over, one hundred twenty five percent (125%) of the greater of (x) the Annual Fixed Rent and any recurring Additional Rent payable hereunder during the last month of the Lease Term and (y) the then current market rent for the Premises, (b) for the following two months of any such holding over, one hundred fifty percent (150%) of the greater of (x) the Annual Fixed Rent and any recurring Additional Rent payable hereunder during the last month of the Lease Term and (y) the then current market rent for the Premises, and (c) thereafter, one hundred seventy-five percent (175%) of the greater of (x) the Annual Fixed Rent and any recurring Additional Rent payable hereunder during the last month of the Lease Term and (y) the then current market rent for the Premises, and otherwise on the terms and conditions set forth in this Lease, as far as applicable. Tenant shall also pay all non-recurring Additional Rent payable under the terms of this Lease, prorated for each month during which Tenant remains in possession if applicable. Landlord waives no rights against Tenant by reason of accepting any holding over by Tenant and Tenant shall defend, indemnify and hold Landlord harmless from and against any and all claims, losses and liabilities for damages resulting from failure to surrender possession upon the Expiration Date, including, without limitation, any claims made by any succeeding tenant and any lost profits, and such obligations shall survive the expiration or sooner termination of this Lease. Notwithstanding the foregoing, provided that Tenant does not hold over in the Premises for more than three (3) months, Landlord hereby waives the right to proceed against Tenant for any claims made by any succeeding tenant, any lost profits and any other consequential damages relating to or arising from such three (3) month period; it being intended that if Tenant holds over for more than three (3) months, Tenant shall be liable for any claims made by any succeeding tenant, any lost profits and any other consequential damages from the commencement of such holdover. The provisions of this Section 20.17 shall not in any way be deemed to (i) permit Tenant to remain in possession of the Premises after the Expiration Date or sooner termination of this Lease, or (ii) imply any right of Tenant to use or occupy the Premises upon expiration or termination of this Lease and the Lease Term, and no acceptance by Landlord of payments from Tenant after the Expiration Date or sooner termination of the Lease Term shall be deemed to be other than on account of the amount to be paid by Tenant in accordance with the provisions of this Section 20.17. Tenant's obligations under this Section 20.17 shall survive the expiration or earlier termination of this Lease. Promptly following the entering into of any lease for all or any portion of the Premises for a term commencing following the expiration or earlier termination of the Lease Term (a "Subsequent Premises Lease"), Landlord shall deliver to Tenant written notice of (i) the entering into of such Subsequent Premises Lease; (ii) the portion of the Premises reasonably anticipated to be demised under such Subsequent Premises Lease and (iii) the date Landlord reasonably requires surrender of the Premises (or applicable portion thereof) for Landlord to complete any work and/or provide access to the applicable tenant under such Subsequent Premises Lease.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.18 <u>RENT CONTROL</u>. If any of the Annual Fixed Rent or Additional Rent payable under the terms and provisions of this Lease shall be or become uncollectable, reduced or required to be refunded because of the laws and requirements of any public authorities, Tenant shall enter into such agreement(s) and take such other steps (without additional expense to Tenant) as Landlord may reasonably request and as may be legally permissible to permit Landlord to collect the maximum rents which from time to time during the continuance of such legal rent restriction may be legally permissible (and not in excess of the amounts reserved therefor under this Lease). Upon the termination of such legal rent restriction, (a) the rent shall become and thereafter be payable in accordance with the amounts reserved herein for the periods following such termination and (b) Tenant shall pay to Landlord, to the maximum extent legally permissible, an amount equal to (i) the rent which would have been paid pursuant to this Lease but for such legal rent restriction, less (ii) the rent actually paid by Tenant during the period such legal rent restriction was in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.19 <u>COUNTERPARTS</u>. This Lease may be executed in several counterparts, each of which shall be deemed an original, and such counterparts together shall constitute but one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.20&nbsp;&nbsp;&nbsp;&nbsp; <u>ENTIRE AGREEMENT</u>. This Lease (including the Exhibits attached hereto) constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and thereof and supersedes all prior dealings between them with respect to such subject matter, and there are no verbal or collateral understandings, agreements, representations or warranties not expressly set forth in this Lease. No subsequent alteration, amendment, change or addition to this Lease shall be binding upon Landlord or Tenant, unless reduced to writing and signed by the party or parties to be charged therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.21&nbsp;&nbsp;&nbsp;&nbsp; <u>NO PARTNERSHIP</u>. The relationship of the parties hereto is that of landlord and tenant and no partnership, joint venture or participation is hereby created.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.22&nbsp;&nbsp;&nbsp;&nbsp; <u>SECURITY DEPOSIT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon execution by Tenant of this Lease, Tenant shall furnish to Landlord, at Tenant's option, either (i) at Tenant's sole cost and expense, a clean, irrevocable and unconditional letter of credit (the "Letter of Credit") drawn in favor of Landlord substantially in the form attached hereto as Exhibit G-1 or (ii) a limited guaranty from William Ackman in favor of Landlord substantially in the form attached hereto as Exhibit G-2 (the "Guaranty"). Tenant shall have the option to (x) replace the Letter of Credit with the Guaranty and (y) replace the Guaranty with the Letter of Credit from time to time upon prior written notice to Landlord. The Letter of Credit shall have a face amount equal to the amount of the Security Deposit and shall be assignable, upon request, to any Overlandlord, Mortgagee or successor to Landlord at no additional charge to Landlord. Any Letter of Credit which replaces the initial Letter of Credit delivered hereunder is referred to as a "Replacement Letter". Any Replacement Letter shall be in a face amount at least equal to the Security Deposit then required hereunder. The initial Letter of Credit and any Replacement Letter are herein sometimes referred to simply as a "Letter". Each Letter shall be issued by and drawn on JPMorgan Chase Bank, N.A., Bank of America, N.A., Citibank, N.A., PNC Bank, N.A., Wells Fargo Bank, N.A., or another commercial bank acceptable to Landlord in its reasonable discretion and at a minimum having a long-term issuer credit rating of A- from Standard & Poor's Professional Rating Service, A3 from Moody's Professional Rating Service or A- from Fitch Group, Inc. (the "Minimum Rating"). As of the date of this Lease, Landlord hereby approves Bank of New York as an acceptable issuing bank for the Letter of Credit. If the issuer's credit rating is reduced below the Minimum Rating, or if the financial condition of such issuer changes in any other materially adverse way, then Landlord shall have the right to require that Tenant obtain from a different issuer a Replacement Letter that is reasonably satisfactory to Landlord within ten (10) Operating Days following Landlord's written demand. If the issuer of any Letter held by Landlord is placed into receivership or conservatorship by the Federal Deposit Insurance Corporation or any successor or similar entity then, effective as of the date such receivership or conservatorship occurs, said Letter shall be deemed not to meet the requirements of this Section, and Tenant shall obtain from a different issuer a Replacement Letter that complies in all respects with the requirements of this Section within ten (10) Operating Days following the date such receivership or conservatorship occurs. In any event, Tenant shall, not later than sixty (60) days prior to the expiration of the term of the initial Letter of Credit or any Replacement Letter, deliver to Landlord a Replacement Letter such that a Letter shall be in effect at all times after the date of this Lease until sixty (60) days beyond the end of the Lease Term, and any extensions or renewals thereof, and thereafter so long as Tenant is in occupancy of any part of the Premises. If Tenant fails to deliver to Landlord a Replacement Letter within the time limits set forth in this Section, Landlord may, without limiting Landlord's other rights or remedies on account of such failure, draw down the full amount of the existing Letter without notice or demand and retain and apply the proceeds thereof as substitute security subject to the provisions of this Section. Tenant shall be responsible for the payment of any and all costs incurred with the review of any Replacement Letter (including without limitation Landlord's reasonable attorneys' fees). Any and all fees or costs charged by the issuer in connection with the issuance, maintenance or transfer of the Letter shall be paid by Tenant. If a Letter is lost, mutilated, stolen, or destroyed, Tenant shall reasonably cooperate with Landlord to have the Letter replaced at Landlord's cost (including Tenant's reasonable attorneys' fees). The Security Deposit (whether a Letter, cash or other collateral) will not operate as a limitation on any recovery to which Landlord may be entitled.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord shall hold the Letter as security for the performance by Tenant of all obligations on the part of Tenant hereunder. If an Event of Default occurs, or if Tenant remains in occupancy of any part of the Premises beyond the expiration of the Lease Term without Landlord's written consent, Landlord shall have the right from time to time, without notice and without prejudice to any other remedy Landlord may have on account thereof, and upon presentation of a certificate of demand, to draw upon any Letter and apply any funds so drawn to Landlord's damages arising from, or to cure, any default by Tenant, whether such damages accrue before or after summary proceedings or other reentry by Landlord. If Landlord shall so apply any funds, Tenant shall, within ten (10) Operating Days following Landlord's written demand, restore the Letter to the face amount required hereunder. Landlord shall have the right to hold and draw upon the Letter pursuant hereto until thirty (30) days after (i) the expiration of the Lease Term (or the applicable extension or renewal period, if any) or (ii) the date Tenant has vacated the Premises, whichever is later. If there then exists no monetary default or material non-monetary default by Tenant in any of the terms or conditions hereof of which Tenant has received notice, Landlord shall return the Letter, or, if applicable, the remaining proceeds thereof, to Tenant, promptly after the expiration of such sixty (60) day period. If Landlord conveys Landlord's interest under this Lease, any Letter or, if applicable, the proceeds thereof, shall be turned over and assigned by Landlord to Landlord's grantee (or, at Landlord's election, Tenant shall furnish Landlord's successor with a new Replacement Letter showing such successor as payee, provided that the original Letter then outstanding shall be simultaneously returned to Tenant). From and after any such transfer, assignment or return, Tenant agrees to look solely to such grantee for proper application of the funds in accordance with the terms of this Section and the return thereof in accordance herewith. No Overlandlord or Mortgagee shall be responsible to Tenant for the return or application of any such Letter, or, if applicable, the proceeds thereof, whether or not it succeeds to the position of Landlord hereunder, unless such Letter shall have been received in hand by, and assigned to, such Overlandlord or Mortgagee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes hereof, the "First Reduction Date" shall mean the fifth (5th) anniversary of the Rent Commencement Date, the "First Reduction Period" shall mean the First Reduction Date plus the ninety (90) day period following the First Reduction Date, the "Second Reduction Date" shall mean the tenth (10th) anniversary of the Rent Commencement Date, and the "Second Reduction Period" shall mean the Second Reduction Date plus the ninety (90) day period following the Second Reduction Date. Provided that at the time of each such reduction (a) no monetary default, or non-monetary default of which Tenant has received notice, shall then exist and (b) Tenant shall not have failed to timely pay any Annual Fixed Rent and/or Tenant's Share of Taxes (beyond any applicable notice and grace periods hereunder) more than three (3) times during the prior three (3) years, then Tenant shall have the right, by delivery of a Replacement Letter or an amendment to the existing Letter, (i) during the First Reduction Period, to reduce the amount of the Security Deposit by an amount equal to $2,012,397.67 and (ii) during the Second Reduction Period, to reduce the amount of the Security Deposit by an amount equal to $1,509,373.25. Landlord shall cooperate reasonably with Tenant to effect each such reduction of the amount of the Letter of Credit and the maximum liability of any guarantor under the Guaranty shall automatically be reduced so that it is equal to the amount of the Security Deposit from time to time required by this Section 20.22(c) as more particularly set forth in the Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.23&nbsp;&nbsp;&nbsp;&nbsp; <u>FINANCIAL STATEMENTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant represents and warrants to Landlord that (i) the financial statements of Tenant heretofore delivered to Landlord are true and correct and fairly reflect the financial condition of Tenant in all material respects and (ii) as of the date of this Lease, there has been no material adverse change in the condition, financial or otherwise, of Tenant from the date of such financial statements which would reasonably be expected to affect Tenant's ability to perform its obligations hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the Lease Term, upon Landlord's written request, within the later of (x) 150 days after the end of each fiscal year of Tenant and (y) 30 days after delivery of Landlord's written request therefor (it being agreed that, except as set forth below, Landlord may not make such a request more than once in any calendar year during the Lease Term and except to the extent otherwise required by Mortgagee and/or Overlandlord), Tenant shall deliver to Landlord or its Mortgagee or Overlandlord (provided such Mortgagee and/or Overlandlord agrees to keep same strictly confidential in accordance with the terms and conditions of Section 20.25(c) as if it were Landlord), a copy of Tenant's audited or, to the extent unavailable, unaudited balance sheet, statement of income and retained earnings for Tenant's fiscal year just ended, certified by an officer of Tenant (and, if available, certified by an independent certified public accountant as presenting fairly, in all material respects, the financial condition of Tenant and the results of its operations in accordance with GAAP). Furthermore, upon Landlord's request, and subject to Section 20.25(c) below, Tenant shall reasonably cooperate with Landlord to accommodate any reasonable request of any Overlandlord or Mortgagee for additional information regarding Tenant (including, without limitation, Tenant's financial performance and creditworthiness).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as required by law or the requirements of any securities exchange applicable to Landlord, Landlord shall maintain such financial statements in strict confidence, provided that Landlord may disclose the same to any Overlandlord, any Mortgagee, Landlord's existing and prospective partners, lenders, accountants, shareholders, investors, purchasers and attorneys, in each case, provided such party or parties have been advised of the confidentiality provisions contained herein and agree (in writing, except with respect to Landlord's attorneys and accountants) to be bound by the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.24&nbsp;&nbsp;&nbsp;&nbsp; <u>GOVERNING LAW, ETC</u>. This Lease shall be governed by the laws of the State of New York applicable to agreements made and to be wholly performed within the State, as the same may from time to time exist. Landlord and Tenant agree that any claim or action relating to this Lease shall be brought and maintained exclusively in a state or federal court located in the Borough of Manhattan, State of New York, United States of America, and Tenant hereby submits to the jurisdiction of all such state and federal courts and waives any right to assert that such courts constitute an inconvenient forum. Tenant represents that it is not entitled to immunity from judicial proceedings and agrees that, in the event Landlord brings any suit, action or proceeding in New York or any other jurisdiction to enforce any obligation or liability of Tenant arising, directly or indirectly, out of or relating to this Lease, no immunity from such suit, action or proceedings will be claimed by or on behalf of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.25&nbsp;&nbsp;&nbsp;&nbsp; <u>CONFIDENTIALITY</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant agrees that this Lease and the terms contained herein will be treated as strictly confidential and except as required by law Tenant shall not disclose the same to any third party except for Tenant's existing and prospective partners, lenders, accountants, consultants, brokers, shareholders, investors, purchasers and attorneys who have been advised of the confidentiality provisions contained herein and agree to be bound by the same. In the event Tenant is required by law to provide this Lease or disclose any of its terms, Tenant shall give Landlord prompt notice of such requirement prior to making disclosure so that Landlord may have an opportunity to seek an appropriate protective order. If failing the entry of a protective order Tenant is compelled to make disclosure, Tenant shall only disclose portions of the Lease which Tenant is required to disclose and will exercise reasonable efforts to obtain assurance that confidential treatment will be accorded to the information so disclosed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord agrees that this Lease and the terms contained herein will be treated as strictly confidential and, except as required by law or the requirements of any securities exchange applicable to Landlord, Landlord shall not disclose the same to any third party except for Landlord's existing and prospective partners, lenders, accountants, consultants, brokers, shareholders, investors, purchasers and attorneys who have been advised of the confidentiality provisions contained herein and agree to be bound by the same. In the event Landlord is required by law to provide this Lease or disclose any of its terms, Landlord shall give Tenant prompt notice of such requirement prior to making disclosure so that Tenant may seek an appropriate protective order. If failing the entry of a protective order Landlord is compelled to make disclosure, Landlord shall only disclose portions of this Lease that Landlord is required to disclose and will exercise commercially reasonable efforts to obtain assurance that confidential treatment will be accorded to the information so disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Landlord acknowledges that it or its agents or contractors (or employees of Landlord or of its agents or contractors) may, in the course of performing Landlord's responsibilities or exercising Landlord's rights under this Lease, be exposed to or acquire information which is proprietary to or confidential to Tenant or its Affiliates or their clients or to third parties to whom Tenant or its Affiliates companies owe a duty of confidentiality. Any and all non-public information of any form obtained by Landlord or its agents or contractors (or any such employees) in the performance of Landlord's responsibilities or the exercise of Landlord's rights under this Lease shall be deemed to be confidential and proprietary information. Landlord agrees that it (i) shall hold such information in strict confidence and shall not copy, reproduce, sell, assign, license, market, transfer or otherwise dispose of, give or disclose such information to third parties or use such information for any purpose whatsoever (other than the provision of services to Tenant as contemplated by this Lease), and Landlord shall use commercially reasonable efforts to cause its agents and contractors to comply with the foregoing, and (ii) shall advise each of its employees who may be exposed to such proprietary and confidential information of their obligations to keep such information confidential. This provision shall survive termination of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.26&nbsp;&nbsp;&nbsp;&nbsp; <u>PATRIOT ACT AND EXECUTIVE ORDER 13224.</u> (a) As an inducement to Landlord to enter into this Lease, Tenant hereby represents and warrants that: (i) Tenant is not, nor is it owned or controlled directly or indirectly by, any person, group, entity or nation named on any list issued by the Office of Foreign Assets Control of the United States Department of the Treasury ("OFAC") pursuant to Executive Order 13224 or any similar list or any law, order, rule or regulation or any Executive Order of the President of the United States as a terrorist, "Specially Designated National and Blocked Person" or other banned or blocked person (any such person, group, entity or nation being hereinafter referred to as a "Prohibited Person"); (ii) Tenant is not (nor is it owned or controlled, directly or indirectly, by any person, group, entity or nation which is) acting directly or indirectly for or on behalf of any Prohibited Person; and (iii) from and after the effective date of the above-referenced Executive Order, Tenant (and any person, group, or entity which Tenant controls, directly or indirectly) has not conducted nor will conduct business nor has engaged nor will engage in any transaction or dealing with any Prohibited Person in violation of the U.S. Patriot Act or any OFAC rule or regulation, including, without limitation, any assignment of this Lease or any subletting of all or any portion of the Premises or the making or receiving of any contribution of funds, goods or services to or for the benefit of a Prohibited Person in violation of the U.S. Patriot Act or any OFAC rule or regulation. In connection with the foregoing, it is expressly understood and agreed that (x) any breach by Tenant of the foregoing representations and warranties shall be deemed a default by Tenant under Section 19.1(f) of this Lease and shall be covered by the indemnity provisions of Section 11.1 of this Lease, and (y) the representations and warranties contained in this subsection shall be continuing in nature and shall survive the expiration or earlier termination of this Lease.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As an inducement for Tenant to enter into this Lease, Landlord hereby represents and warrants that: (i) Landlord is not a (nor is it owned or controlled directly or indirectly by any) Prohibited Person; (ii) Landlord is not (nor is it owned or controlled, directly or indirectly, by any person, group, entity or nation which is) acting directly or indirectly for or on behalf of any Prohibited Person; and (iii) from and after the effective date of the above-referenced Executive Order, Landlord (and any person, group, or entity which Landlord controls, directly or indirectly) has not conducted nor will conduct business nor has engaged nor will engage in any transaction or dealing with any Prohibited Person in violation of the U.S. Patriot Act or any OFAC rule or regulation, including, without limitation, any assignment of this Lease or any subletting of all or any portion of the Premises or the making or receiving of any contribution of funds, goods or services to or for the benefit of a Prohibited Person in violation of the U.S. Patriot Act or any OFAC rule or regulation. In connection with the foregoing, it is expressly understood and agreed that (x) any breach by Landlord of the foregoing representations and warranties shall be deemed a default of this Lease and shall be covered by the indemnity provisions of Section 11.14 of this Lease, and (y) the representations and warranties contained in this Section 20.26(b) shall be continuing in nature and shall survive the expiration or earlier termination of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.27&nbsp;&nbsp;&nbsp;&nbsp; <u>ELECTRONIC SIGNATURES</u>. The parties acknowledge and agree that, subject to the terms of this paragraph, this Lease may be executed by electronic signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature. "Electronic signature" shall mean faxed versions of an original signature or electronically scanned and transmitted versions (i.e., email of a pdf) of an original signature and, absent contrary written instructions by the transmitting party, the transmission of such an electronic signature by fax or email by one party hereto to the other party(ies) hereto shall constitute execution and delivery of this Lease by the transmitting party. Any party hereto executing this Lease by electronic signature shall promptly thereafter deliver such transmitting party's original signature to this Lease to the recipient party(ies), but the failure to do so shall not affect the validity of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.28&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT EXCULPATION</u>. Notwithstanding anything contained herein to the contrary, Landlord shall look solely to the assets of Tenant to enforce Tenant's obligations hereunder and no member, partner, retired or withdrawn partner, shareholder, director, officer, principal, client, employee or agent, directly or indirectly, of Tenant or any members or partners of Tenant (collectively, "Tenant Exculpated Parties") shall be personally liable for the performance of Tenant's obligations under this Lease. Landlord shall not seek any damages against any Tenant Exculpated Party nor shall any file, record or work product of any Tenant Exculpated Party be subject to levy, lien, execution, attachment or other enforcement procedure for the satisfaction of Landlord's rights and remedies with respect to this Lease. The limitation on personal liability of the Tenant Exculpated Parties shall not in any manner constitute a waiver of or affect any of the obligations of Tenant under this Lease, nor limit Landlord's rights to name any of the Tenant Exculpated Parties in any action or proceeding relating to this Lease to the extent necessary to recover any judgment from Tenant or Tenant's assets or to recover possession of the Premises; provided that no such judgment shall be enforced against any of the Tenant Exculpated Parties. In furtherance of the foregoing, Landlord shall not have or benefit from any claim available to any creditor or trustee seeking recovery from any Tenant Exculpated Party of any portion of any distribution made by Tenant to such Tenant Exculpated Party consistent with Tenant's customary past practice in the ordinary course of its business.

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Nothing in the foregoing paragraph shall be deemed to be a waiver of Landlord's rights to receive distributions from any assets recovered from the Tenant Exculpated Parties as a result of fraudulent conveyances, fraudulent transfer or other actions brought against such parties by or on behalf of Tenant's bankruptcy estate and any settlements between Tenant's bankruptcy estate and Tenant Exculpated Parties; <u>provided</u>, <u>however</u>, that Landlord shall be precluded from commencing, or joining or participating in, any such fraudulent conveyance, fraudulent transfer or other action under any applicable legal requirement against the Tenant Exculpated Parties in connection with any Tenant bankruptcy proceeding or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.29&nbsp;&nbsp;&nbsp;&nbsp; <u>REPRESENTATIONS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord represents and warrants as of the date of this Lease that (i) Landlord is a duly formed and validly existing Delaware limited liability company authorized to do business in the State of New York, (ii) the execution, delivery and performance by Landlord of this Lease has been duly authorized by all necessary limited liability company action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant represents and warrants as of the date of this Lease that (i) Tenant is duly formed and validly existing Delaware limited partnership, authorized to do business in the State of New York and (ii) the execution, delivery and performance by Tenant of this Lease has been duly authorized by all necessary limited partnership action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.30&nbsp;&nbsp;&nbsp;&nbsp; <u>CONSEQUENTIAL DAMAGES.</u> Notwithstanding anything to the contrary contained herein, neither Landlord nor Tenant shall be liable hereunder to the other for any consequential, special or indirect damages, except with respect to Tenant, as set forth in <u>Section 20.17</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.31&nbsp;&nbsp;&nbsp;&nbsp; <u>APPORTIONMENT OF CHARGES</u>. Notwithstanding anything to the contrary contained in this Lease, if more than one occupant of the Building, including Tenant, is chargeable by Landlord for the same costs and expenses relating to the same services or work requested by or provided to Tenant and such other occupant(s) of the Building for which Tenant is chargeable (whether performed on an overtime basis or otherwise), then Tenant shall only be charged for a proportionate share of such costs and expenses, which apportionment shall be based on the amount of services or work requested by such parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.32&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD COOPERATION</u>. Landlord agrees to reasonably cooperate with Tenant in Tenant's effort to negotiate and implement an incentive package with various governmental authorities and utility companies (collectively, "Benefits"), to execute and deliver any estoppel and other certificates or documentation reasonably and customarily required by such governmental authorities or such utility companies and not to withhold its consent to any reasonably required ministerial modifications to this Lease, provided that no such cooperation, certificate, documentation or Lease modification shall (a) increase any obligation of Landlord under this Lease or any other agreement affecting or relating to the Property (except to a *de minimis* extent), (b) adversely affect any right of or benefit to Landlord under this Lease or any other agreement affecting or relating to the Property (except to a *de minimis* extent), (c) relieve Tenant of any of its obligations under this Lease, (d) otherwise adversely affect Landlord or any Landlord Party or (e) adversely affect (i) Landlord's financing pursuant to any Mortgage and (ii) any Underlying Lease. Any and all fees, costs and expenses imposed by such governmental authorities or such utility companies with respect to the obtaining of any Benefits shall be borne solely by Tenant, and Tenant shall reimburse Landlord within thirty (30) days of Landlord's demand, as Additional Rent, for any and all reasonable out-of-pocket fees, costs and expenses actually incurred by Landlord in connection with Tenant's requests and in cooperating with Tenant as provided in this Section 20.32, including, without limitation, the reasonable cost and expenses of Landlord's counsel, consultants and professionals. Nothing contained herein shall require Landlord to cooperate with Tenant with respect to any Benefits to the detriment of any other tenant in the Building, provided that with respect to Landlord's cooperation with tenants related to Benefits, Landlord's cooperation shall be provided on a first-come first-served basis.

<u>ARTICLE 21</u>

<u>OPTIONS TO EXTEND</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1&nbsp;&nbsp;&nbsp;&nbsp; <u>TENANT'S OPTIONS</u>. Provided that at the time of such exercise and upon the commencement of each Extended Term (i) there then exists no continuing Event of Default, (ii) this Lease is then in full force and effect, and (iii) Tenant and/or its Affiliates are in actual occupancy of at least ninety percent (90%) of the Premises, Tenant shall have the irrevocable right and option (each, an "Extension Option") to extend the Lease Term with respect to the entire Premises for either (a) three (3) successive extended terms of five (5) years each (each to be executed separately) or (b) one (1) extended term of fifteen years (each an "Extended Term"). For purposes of this Article 21, all references to the Premises shall be deemed to include the License Area. The Extended Term shall commence on the day immediately succeeding the Expiration Date of the initial Lease Term (or the first or second Extended Term, if and as applicable). Tenant shall exercise the applicable Extension Option by giving notice to Landlord of its desire to do so not later than twelve (12) months prior to the Expiration Date of the initial Lease Term (or the first or second Extended Term, if and as applicable). Provided the conditions set forth in the foregoing clauses (i), (ii) and (iii) shall have been satisfied, the giving of such notice by Tenant shall automatically extend the Lease Term for the applicable Extended Term, and no instrument of renewal need be executed. In the event that Tenant fails to give such notice to Landlord, this Lease shall automatically terminate at the end of the initial Lease Term (or the first or second Extended Term, if and as applicable), and Tenant shall have no further option to extend the Lease Term, it being agreed that time is of the essence with respect to the giving of such notice. Notwithstanding the foregoing, Landlord may waive any or all of the conditions set forth in the foregoing clauses (i) and (iii), at its election, by written notice to Tenant at any time. Each Extended Term shall be on all the terms and conditions of this Lease, except that (1) in the event that Tenant makes the election under clause (a) of the first sentence of this Section 21.1, during the third Extended Term, or (2) in the event that Tenant makes the election under clause (b) of the first sentence of this Section 21.1, during the second Extended Term, Tenant shall have no further option to extend the Lease Term, and the Annual Fixed Rent for each Extended Term shall be determined as provided below. Each Extension Option shall be personal to Original Tenant and shall be void if the interest of the tenant under the Lease is otherwise assigned or transferred.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2&nbsp;&nbsp;&nbsp;&nbsp; <u>EXTENDED TERM RENT</u>. The Annual Fixed Rent for each Extended Term shall be the greater of (a) the Annual Fixed Rent payable hereunder during the last month of the Lease Term and (b) ninety five percent (95%) of the Fair Market Rent for the Premises as of the commencement of the applicable Extended Term. During each Extended Term, Tenant shall in all events pay Tenant's Share of Taxes and Operating Expenses as Additional Rent in accordance with Article 6 of this Lease provided that Base Taxes and Base Operating Expenses shall be updated in connection with the determination of the Fair Market Rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.3&nbsp;&nbsp;&nbsp;&nbsp; <u>EXTENDED TERM RENT DETERMINATION</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, pursuant to the provisions of Section 21.1 hereof, Tenant has exercised validly an Extension Option, then, for purposes of establishing the Annual Fixed Rent payable by Tenant during the applicable Extended Term under the provisions of Section 21.2 above, the term "Fair Market Rent" shall mean the then current fair market rental value per annum for the Premises as of the commencement of the applicable Extended Term, taking into account all relevant factors but excluding any additional value attributable to any Alterations (including Tenant's Work) which are above standard office installations in First Class Buildings and which were performed by or on behalf of Tenant at Tenant's sole cost. A determination of the Fair Market Rent payable for the Premises during each Extended Term shall be made in the manner described in Sections 21.3(b), (c) and (d) below.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If Tenant shall have exercised an Extension Option, then no later than six (6) months prior to the Expiration Date of the initial Lease Term (or the first or second Extended Term, if and as applicable), Landlord, in a notice given to Tenant, shall specify its initial good faith determination of the Fair Market Rent for the Premises during the applicable Extended Term. Within twenty (20) days after receipt of Landlord's notice, Tenant shall notify Landlord of Tenant's initial good faith determination of the Fair Market Rent for the Premises. If, within thirty (30) days after receipt of Tenant's notice, Landlord and Tenant fail to reach agreement on the determination of the Fair Market Rent to be paid by Tenant for the Premises during the applicable Extended Term, then either Landlord or Tenant (the "Initiating Party") shall initiate the proceedings for such determination by notice to the other, and by designating in such notice the name and address of a commercial real estate broker, consultant or appraiser unaffiliated with the designating party and having at least ten (10) years' experience in the leasing of first-class office space in Manhattan (hereinafter called a "Qualified Appraiser"). Within twenty (20) days after receipt by the other party (the "Responding Party") of such notice, the Responding Party, by notice given to the Initiating Party, shall designate the name and address of another Qualified Appraiser willing so to act in such determination. If the Responding Party shall fail, neglect or refuse within said 20-day period to designate another Qualified Appraiser willing so to act, the Qualified Appraiser designated by the Initiating Party shall alone conduct the determination of the Fair Market Rent for the Premises during the applicable Extended Term. If two (2) Qualified Appraisers have been designated as aforesaid, such Qualified Appraisers shall appoint an additional Qualified Appraiser (the "Third Qualified Appraiser") who is willing so to act in such determination, and notice of such designation shall be given both to the Initiating Party and to the Responding Party. If the two (2) Qualified Appraisers do not, within a period of ten (10) days after the appointment of the latter of them, agree upon and designate a Third Qualified Appraiser willing so to act, either Qualified Appraiser previously designated may request the New York Office of the AAA to designate a Third Qualified Appraiser willing so to act and a Third Qualified Appraiser so appointed shall, for all purposes, have the same standing and powers as though the Third Qualified Appraiser had been timely appointed by the Qualified Appraisers first appointed. In case of the inability or refusal to serve of any person designated as a Qualified Appraiser, or in case any Qualified Appraiser for any reason ceases to be such, a Qualified Appraiser to fill such vacancy shall be appointed by the Initiating Party, Responding Party, the Qualified Appraisers first appointed or the New York Office of the AAA, as the case may be, whichever made the original appointment, or, if the party which made the original appointment fails to fill such vacancy, upon application of any Qualified Appraiser who continues to act or by the Initiating Party, the Responding Party or the New York Office of the AAA, and any Qualified Appraiser so appointed to fill such vacancy shall have the same standing and powers as though appointed originally. The resulting board of Qualified Appraisers, forthwith upon their appointment, shall (i) hear the parties to this Lease and their respective witnesses, and each of the parties shall upon the conclusion of their presentation be required to submit a complete statement (the "Fair Market Rent Proposal") setting forth in detail all of the relevant economic terms of the parties' proposed determination of the Fair Market Rent (it being understood that Landlord's and Tenant's respective proposed determinations may differ from Landlord's and Tenant's initial determinations of the Fair Market Rent given to the other party in accordance with the first two (2) sentences of this clause (b) and, in such event, the Qualified Appraisers shall not take into account any determinations of such Fair Market Rent previously given by Landlord or Tenant, as the case may be, to the other party), (ii) examine the records relating to the Building and such other documents and records as may, in their judgment, be necessary and (iii) select in the manner hereinafter provided, the Fair Market Rent for the Premises to become applicable during the applicable Extended Term. In determining the Fair Market Rent for the Premises during the applicable Extended Term, the parties, and any Qualified Appraisers shall take into account (A) the presentation of the parties regarding the current fair market rental value of the Premises, (B) Tenant's payments under this Lease with respect to Taxes and Operating Expenses as provided in Article 6 of this Lease provided that Base Taxes and Base Operating Expenses shall be updated in connection with the determination of the Fair Market Rent, and (C) all other factors relevant to the determination of the fair market rental value of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The determination of Fair Market Rent for the Premises shall be determined by the Third Qualified Appraiser (or the sole Qualified Appraiser in the event that the Responding Party did not designate another Qualified Appraiser) selecting, in its entirety, without modification, the Fair Market Rent Proposal submitted by either Landlord or Tenant as the Fair Market Rent, whichever such Third Qualified Appraiser believes most accurately reflects the then current fair market rental value per annum for the Premises.

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Each of Landlord and Tenant shall pay the costs and fees of the Qualified Appraiser chosen by it, and Landlord and Tenant shall share the costs and fees of the Third Qualified Appraiser. Each of Landlord and Tenant shall pay the legal fees and expenses of their respective counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.4&nbsp;&nbsp;&nbsp;&nbsp; <u>RETROACTIVE ADJUSTMENTS; AMENDMENT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, pursuant to the preceding provisions of this Article 21, Fair Market Rent has not been determined as of the date the same is to become effective, Tenant shall pay on account of Annual Fixed Rent the average of the rent specified by Landlord as the Fair Market Rent the average of the rent specified by Landlord as the Fair Market Rent and the rent specified by Tenant as the Fair Market Rent in their respective Fair Market Rent Proposals until such determination is made. If, based upon the final determination of such Fair Market Rent as provided herein, such payments made by Tenant on account of Annual Fixed Rent for the applicable Extended Term were (i) less than the Fair Market Rent as finally determined in accordance with the provisions hereof, Tenant shall pay to Landlord the amount of such deficiency, within thirty (30) days after final determination of the Fair Market Rent, or (ii) greater than the Fair Market Rent as finally determined in accordance with the provisions hereof, Landlord shall credit the amount of such excess against the next installments of rent due under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If Tenant shall validly exercise an Extension Option, it shall promptly after such election and the determination of the Fair Market Rent enter into a mutually acceptable form of an amendment to the Lease incorporating the terms of such leasing, but failure to do so shall have no effect on Tenant's agreement to extend the Lease Term for the applicable Extended Term.

<u>ARTICLE 22</u>

<u>TERRACE AND ROOFTOP LICENSE</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.1&nbsp;&nbsp;&nbsp;&nbsp; <u>LICENSE AREA, TERM AND USE</u>. Subject to and in accordance with the terms and conditions of this Article 22, Landlord hereby grants to Tenant an exclusive license (the "License"), revocable only as set forth herein, to use the area of the exterior of the Building located on portions of the ninth floor and the roof of the Building, as more particularly shown on Exhibit M attached to this Lease (the "License Area"), for the installation of a tennis court, which may be enclosed to the extent permitted by applicable legal requirements (and related recreational facilities) and dedicated mechanicals in connection with the operation of Tenant's business at the Premises for the Permitted Use, and for no other purpose. The term of the License shall commence on the Access Date and shall expire on the Expiration Date unless this Lease is otherwise extended (the "License Term"), provided that (i) subject to Section 5.1(b), the License shall terminate immediately at any such time that Landlord's right to permit Tenant to utilize the License Area pursuant to any applicable law or legal requirement terminates, expires or is revoked, and (ii) the License shall terminate immediately upon the termination or expiration of this Lease. The License Area shall be utilized by Tenant on a continuous basis as permitted pursuant to any applicable any applicable law or legal requirement in accordance with Exhibit E and Tenant shall not use, or suffer or permit anyone to use, the License Area for any purpose whatsoever except as permitted by any applicable law or legal requirement (or pursuant to the express provisions of Article 13 hereof). Tenant's use of the License Area shall at all times be (x) subject to all applicable any applicable legal and insurance requirements and the terms and conditions and rules and regulations which may now or hereafter be reasonably imposed by Landlord or any governmental agency having jurisdiction over the Property, and (y) except to the extent otherwise set forth in this Article 22, governed in all respects by the terms, covenants, conditions and provisions of this Lease, as though the License Area were part of the Premises.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.2&nbsp;&nbsp;&nbsp;&nbsp; <u>LANDLORD'S REVOCATION RIGHTS</u>**.** Provided Landlord complies with the final sentence of Section 9.1 of this Lease, Landlord shall have the right to revoke the License granted herein in whole or in part if necessitated by any requirements of any governmental authority having jurisdiction over the Property. In the event that the License is revoked in whole or in part, Tenant shall promptly discontinue its use of the License Area (or such part thereof) and shall quit and vacate same in the manner as set forth in this Lease, and Tenant shall remove all of its fixtures and other property located within the License Area (or such part thereof) within a reasonable time period and shall repair and restore any damage which may have been caused by the installation or use of Tenant's fixtures and personal property or the removal thereof. If Landlord revokes the License pursuant to the provisions of this Section 22.2, then, except as expressly set forth in Section 5.1(b), Landlord shall have no liability to Tenant, Tenant shall not be entitled to any abatement or reduction of rent, and this Lease shall continue in full force and effect and Tenant shall continue to operate its business within the Premises in accordance with the terms and conditions of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.3&nbsp;&nbsp;&nbsp;&nbsp; <u>LICENSE AREA PLANS; TENANT INSTALLATIONS</u>. Tenant may, at its sole cost and expense, provide, furnish and install tables, chairs and other fixtures or furniture in the License Area. Prior to the installation of any furniture in the License Area, Tenant shall submit for Landlord's prior written approval (to be granted or withheld in Landlord's reasonable discretion), plans and specifications (the "License Area Plans"), including, without limitation, furniture specifications and layout plans for the License Area (including specifications for the design and layout of any new hand railings and anchors for the hand railings to be installed on the perimeter of the License Area) . Any changes to the License Area Plans shall require Landlord's prior written approval, which shall be granted or withheld in Landlord's reasonable discretion. Tenant warrants and represents that the quality and workmanship (including, without limitation, finishes and furniture) of any Alterations Tenant makes in the License Area, as well as the appearance of the License Area upon the completion thereof, shall be equal to or better than the quality, workmanship and appearance of Tenant's Work with respect to the Premises. During the License Term, except as otherwise expressly set forth herein, Landlord shall not have the right to relocate, remove or interfere with the use and enjoyment by Tenant of any equipment or installations of Tenant (including, without limitation, any tennis court and/or enclosure with respect thereto) located within the License Area without the written consent of Tenant in Tenant's sole and absolute discretion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.4&nbsp;&nbsp;&nbsp;&nbsp; <u>MAINTENANCE AND REPAIR</u>. Subject to Tenant using the License Area as set forth herein, during the License Term, Tenant shall be solely responsible, at its sole cost and expense, for the policing and removal of all garbage and debris from, and the maintenance, cleaning and repair of, the License Area, including, without limitation, all furniture located therein, which furniture shall at all times be kept in neat, clean and first-class condition in the manner consistent with the maintenance and cleaning required by Landlord for the Office Premises. The furniture to be provided, furnished and installed by Tenant in the License Area shall be deemed to be Tenant's Property. Furthermore, Tenant shall be obligated at its sole expense, to remove and store all furniture and personal property during the "off season" months of the License Term when Tenant is not regularly using the outdoor-portion of the License Area. In the event that Tenant shall fail to maintain and repair the License Area and the furniture located therein as required to preserve same in good order and condition (and if Tenant fails to cure such condition within ten (10) days after the giving by Landlord of a notice thereof to Tenant), then Landlord may, at Landlord's option, perform such maintenance or repair at Tenant's expense, and Tenant shall pay to Landlord, as Additional Rent under this Lease, the reasonable out-of-pocket cost thereof within thirty (30) days after the submission by Landlord of a bill therefore. Landlord shall be entitled, at any time upon reasonable notice to Tenant, to enter the License Area to inspect the same or to perform repairs or additions therein, provided however, that Landlord shall have no obligation to perform any repairs or other work in or to the License Area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.5&nbsp;&nbsp;&nbsp;&nbsp; <u>ALTERATIONS</u>. Except as set forth on the Plans and Specifications approved by Landlord in accordance with the terms of this Lease, Tenant shall not make any alterations, decorations, installations or improvements of any kind whatsoever to the License Area without obtaining Landlord's prior written approval thereof, which approval shall be granted or withheld in Landlord's reasonable discretion; provided, however, without Landlord's prior written consent, but provided Tenant delivers prompt written notice thereof, Tenant may make decorative or cosmetic alterations to (a) any portion of the License Area on the roof of the Building that is not visible to the street or other portions of the roof of the Building available for use by other tenants or occupants of the Building and/or (b) any portion of the License Area consisting of the terrace on the ninth (9<sup>th</sup>) floor of the Building that is not visible to the street. Tenant shall not be entitled to install or display any signs, stands (unless approved in advance by Landlord in its reasonable discretion), promotional materials or advertisements within or outside the License Area. Subject to compliance with all applicable laws, legal requirements or municipal codes and Tenant's compliance with the terms and conditions of this Lease, Landlord hereby consents to the installation by Tenant, as part of Tenant's Work and at Tenant's sole cost and expense, of a temporary enclosure (including a "bubble") in the portion of the License Area on the roof of the Building, subject, however, to Tenant's submission of detailed plans and specifications with respect to such installation for Landlord's written approval prior to the installation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.6&nbsp;&nbsp;&nbsp;&nbsp; <u>LICENSES AND PERMITS</u>**.** During the License Term, Tenant shall be responsible at its sole expense for obtaining and maintaining any and all licenses, permits, consents or approvals that may be required by any governmental agency having jurisdiction over the use of the License Area in connection with Tenant's operation of the License Area for the Permitted Use (and Landlord agrees to reasonably cooperate with Tenant in connection with Tenant's obtaining and/or maintaining same provided Tenant hereby agrees to pay any reasonable out-of-pocket third party costs actually incurred by Landlord in connection therewith within thirty (30) days following Landlord's written invoice and demand therefor). Tenant will provide Landlord with copies of all such licenses, permits, consents and approvals within ten (10) days after the date that Tenant shall have obtained same and Tenant shall not use the License Area until such time that Tenant has obtained all such documentation and delivered copies thereof to Landlord. If, at any time, any such licenses, permits, consents or approvals shall expire and are not renewed or are revoked, withdrawn or terminated, as the case may be, the License shall immediately terminate and Tenant shall immediately discontinue its use of the License Area.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.7&nbsp;&nbsp;&nbsp;&nbsp; <u>ADDITIONAL TAXES OR FEES</u>. In the event that any agency having jurisdiction over the Building and/or the License Area thereof, as the case may be, shall impose a tax or other fee on Landlord in connection with the use of the License Area, Tenant shall pay to Landlord, as Additional Rent, any such tax or fee imposed in connection with the use of the License Area and Tenant shall pay the full amount of any fee or fine which may be imposed on Landlord or Tenant in connection with the use of the License Area of the Building if such fine is imposed due to an act or omission of Tenant hereunder; provided, however, no amounts due to Landlord pursuant to this Section 22.7 shall be duplicative of any amounts included in Operating Expenses and/or Taxes pursuant to Article 6 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.8&nbsp;&nbsp;&nbsp;&nbsp; <u>INSURANCE</u>. Tenant, at its expense, shall maintain at all times during the License Term insurance coverage with respect to the License Area, its use thereof and Tenant's Property therein in compliance with Article 11 hereof, and any other insurance coverage reasonably required by Landlord with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.9&nbsp;&nbsp;&nbsp;&nbsp; <u>NOISE RESTRICTIONS</u>. In no event shall Tenant permit the emanation of noise, including the playing of any live or recorded music, from the License Area which (a) will violate any applicable laws, legal requirements or municipal codes or (b) in the reasonable judgment of Landlord, is not in keeping with the character and dignity of the Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.10&nbsp;&nbsp;&nbsp;&nbsp; <u>DELIVERY OF LICENSE AREA; SERVICES</u>. Except as set forth on Exhibit I attached hereto (or as otherwise expressly provided in this Lease), the License Area shall be accepted by Tenant without any representations or warranties by Landlord. By taking possession of the License Area, Tenant agrees that the License Area is in good order and satisfactory condition. Landlord shall have no obligation to alter, improve, decorate, or otherwise prepare the License Area for Tenant's use and occupancy. Tenant further acknowledges and agrees that Landlord shall not be required to provide any services to the License Area and, to the extent any services are requested by Tenant, Tenant shall pay to Landlord, as Additional Rent under this Lease, all costs and expenses incurred by Landlord in connection with providing such services, together with a reasonable administrative charge, within thirty (30) days after the submission by Landlord of a bill therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.11&nbsp;&nbsp;&nbsp;&nbsp; <u>WINDOW CLEANING AND OTHER EQUIPMENT</u>. Upon reasonable prior notice to Tenant, Landlord shall have the right, up to four (4) times in any twelve (12) month period, to temporarily place (but not permanently store) window cleaning equipment or other similar equipment within the portion of the License Area on the roof of the Building or in an area immediately adjacent or appurtenant thereto, provided, Landlord shall use commercially reasonable efforts to complete such window cleaning and remove such equipment as quickly as reasonably possible (and in any event within seven (7) days following the placement of such equipment within the License Area) so that Tenant's inconvenience resulting therefrom may be for as short a period of time as circumstances will reasonably permit and in a manner so as to minimize interference with Tenant's ordinary use and enjoyment of the License Area, it being understood that the foregoing shall in no event obligate Landlord to do such work on an "overtime" basis unless (1) requested by Tenant and (2) Tenant agrees to pay to Landlord, as Additional Rent hereunder, within thirty (30) days after Landlord's written demand therefor, an amount equal to the difference between the regular rates and the overtime or other premium pay rates for labor and any other overtime costs or expenses incurred, as reasonably evidenced in Landlord's written demand.

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<u>ARTICLE 23</u>

<u>RIGHT OF FIRST OFFER</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1&nbsp;&nbsp;&nbsp;&nbsp; <u>RIGHT OF FIRST OFFER</u>. (a) Provided that at the time of such exercise and as of the actual Delivery Date (1) there then exists no continuing Event of Default or default of which Landlord has given Tenant written notice, (2) this Lease is in full force and effect, and (3) Original Tenant and/or its Affiliates are in actual occupancy of at least ninety percent (90%) of the Premises, then if at any time any space in the Building either (x) that is vertically or horizontally contiguous with the Office Premises (e.g., with respect to the initial Premises, the 8<sup>th</sup> floor of the Building and/or, following the Outside Expansion Notice Date, the portion of the 10<sup>th</sup> floor of the Building not constituting part of the initial Office Premises) or (y) located on the roof of the Building ("ROFO Space") becomes "available for leasing" or Landlord anticipates in good faith that such space will become "available for leasing", following the initial lease-up of such ROFO Space, Landlord shall deliver to Tenant a written notice (a "ROFO Notice") (i) setting forth the date on which Landlord anticipates in good faith that Landlord shall deliver possession of the applicable Offered Space to Tenant in its entirety in accordance with the terms this Article 23 hereof (the "Estimated Delivery Date"), which Estimated Delivery Date shall in no event be more than fifteen (15) months or less than three (3) months following the date on which Landlord provides Tenant with such notice), (ii) identifying the ROFO Space that is so available (the "Offered Space") and (iii) setting forth the FMV of the Offered Space determined by Landlord as of the date of the ROFO Notice (the "ROFO Offer"). Tenant shall, within thirty (30) days after receipt of the ROFO Notice, by written notice (the "ROFO Election Notice"), either (I) accept the ROFO Offer (which, for the avoidance of doubt, will be for the entire Offered Space), or (II) reject the ROFO Offer, it being understood that Tenant's failure to timely respond to the ROFO Offer as aforesaid shall be deemed a rejection thereof. Subject to the provisions of Section 23.1(h) hereof, any election by Tenant to accept or reject the ROFO Offer shall be irrevocable. If Tenant fails to timely elect to exercise any option to lease any such Offered Space in accordance with this Section 23.1(a), then, subject to and except as provided by Section 23.2, Tenant shall no longer be entitled to exercise the ROFO Option with respect to such Offered Space under this Section 23.1(a). Tenant's option to lease Offered Space under this Section 23.1 shall be referred to herein as the "ROFO Option". For purposes of this Article 23, the term "FMV" shall mean the then current fair market rental value per annum for the ROFO Space as of the Estimated Delivery Date, taking into account all relevant factors

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If Tenant accepts a ROFO Offer, Landlord and Tenant shall, within thirty (30) days after the request of the other, subject to the terms of Section 23.1(d), after such election by Tenant enter into an amendment to this Lease adding the applicable Offered Space to the Premises and otherwise incorporating the terms contained in the applicable ROFO Notice, but the failure to enter into any such amendment shall not vitiate Tenant's election nor the leasing of the applicable Offered Space in accordance with the terms hereof. If Tenant accepts the ROFO Offer, the Offered Space shall be delivered broom clean in its then "AS IS" condition with all Building systems serving such Offered Space operating in the condition in which such Building systems are required to be operating as set forth on Exhibit D, as applicable, with respect to the remainder of the Premises (but free of any furniture and other personal property of the prior tenant and if the same consists of less than a full floor, with the same legally demised) without representation or warranty by Landlord. Landlord shall deliver to Tenant on the applicable Delivery Date (as hereinafter defined) as many original ACP-5 certificates (or the then equivalent) for the Offered Space as are required by the DOB in connection with Tenant's filings therewith certifying that no asbestos is required to be removed in order for Tenant to complete Tenant's Alterations, but Landlord shall have no obligation to remove improvements made to any of the Offered Space prior to delivery to Tenant, whether or not made by Landlord, nor shall Landlord have any obligation to prepare the Offered Space for Tenant's occupancy. Landlord shall use commercially reasonable efforts (without any obligation to commence or prosecute any in action in a court of law or to implement any arbitration process) to enforce the restoration obligations, if any, in the existing leases for any Offered Space with respect to which Tenant shall have exercised the ROFO Option. As used herein, the term "Delivery Date" means the date on which possession of the applicable Offered Space in its entirety is actually delivered by Landlord to Tenant in accordance with the provisions of this Article 23.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to clause (d) immediately below, the term of the leasing of any Offered Space shall be coterminous with the then current Term. As used in this Article 23, the term "available for leasing" shall mean that Landlord reasonably anticipates that any ROFO Space shall be available for Tenant to lease in accordance with the terms of this Article 23 after the expiration or earlier termination of the initial lease with respect to such ROFO Space (including, without limitation, as a result of the exercise of any "recapture" right by Landlord). Notwithstanding anything herein to the contrary, the parties hereto acknowledge that Tenant's rights under this Article 23 shall be subject and subordinate to (i) any fixed expansion options designating specific space in the Building held by any existing tenant with respect to such Offered Space or any portion thereof, provided such right was granted at the time of the signing of the initial lease with such tenant (but not to any right of first refusal or right of first offer or floating option contained in any such leases) and (ii) the renewal or extension of an expiring lease, sublease or other occupancy agreement with any existing occupant with respect to such Offered Space.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding anything to the contrary contained herein, if the Estimated Delivery Date for any Offered Space offered to Tenant as provided in this Article 23 is such, that upon the occurrence of the Estimated Delivery Date there will be less than five (5) years remaining in the Term, then Landlord shall have no obligation to accept a ROFO Election Notice from Tenant with respect to such Offered Space unless, if such offer is made prior to the then current Expiration Date, Tenant simultaneously with the delivery of such ROFO Election Notice (and as an express condition thereof) extends the Lease Term for the next applicable Extended Term as provided in Article 21 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Tenant timely exercises the ROFO Option with respect to any Offered Space, then effective as of the applicable Delivery Date of such Offered Space: (i) the definition of Premises and Office Premises shall be modified to include such Offered Space; (ii) the Additional Fixed Rent shall be increased based upon the RSF of such Offered Space, (iii) the percentage of the floor area of the Building defined as Tenant's Share of Taxes and Tenant's Share of Operating Expenses, respectively, shall be increased accordingly; and (iv) Annual Fixed Rent shall be increased to include the FMV of such Offered Space as set forth in the ROFO Notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event Landlord fails or is unable to deliver the entire Offered Space to Tenant on the Estimated Delivery Date thereof as a result of the holding over of the prior tenant or for any other reason (other than Landlord's willful refusal to deliver possession thereof to Tenant after such space has been vacated by the prior tenant thereof), Landlord shall not be subject to any liability whatsoever for such failure or inability to deliver possession, and the exercise of the ROFO Option shall remain effective, but payments of Annual Fixed Rent and Additional Rent shall not commence with respect to such Offered Space until the date on which the same is actually delivered to Tenant (subject to any applicable rent concession period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From time to time (but not more than one (1) time in any calendar year), Tenant may request from Landlord a schedule of the status of the lease-up of the ROFO Space, which schedule shall show all ROFO Space that is then leased, the tenant(s) to whom such ROFO Space is leased, the expiration date of each such lease, any renewal or expansion options or rights of first offer or refusal set forth in each such lease to the extent related to any ROFO Space and the ROFO Space to which they relate, and any early termination options set forth in each such lease. Landlord shall deliver such schedule within thirty (30) days after request therefor by Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding anything to the contrary contained herein, in the event Landlord fails or is unable to deliver to Tenant the entire Offered Space as to which Tenant has exercised a ROFO Option on the Estimated Delivery Date thereof set forth in the ROFO Notice as a result of the holding over of the prior tenant or for any other reason, Landlord shall not be subject to any liability whatsoever for such failure or inability to deliver possession, and the exercise of such ROFO Option shall remain effective, but the Fixed Rent and Additional Rent shall not commence with respect to such Offered Space until the date on which the same is actually delivered to Tenant as required under this Article 23; provided, however, that if Tenant so elects (in Tenant's sole discretion), the portion(s) of the Offered Space that can be delivered shall be delivered to Tenant and the Fixed Rent and Additional Rent applicable thereto, on an RSF basis, shall commence. Landlord shall promptly inform Tenant of any anticipated delay of the Estimated Delivery Date of any such Offered Space. Landlord will promptly take all reasonable action against any holdover tenant of such Offered Space to obtain possession thereof, including, without limitation, the commencement and prosecution of a summary dispossess proceeding against any such holdover tenant and shall keep Tenant informed as to the status thereof. Nothing herein shall operate to extend the expiration of the Term for the Premises (including, but not limited to, the Offered Space, if any, added to the demise hereunder) beyond the then current Expiration Date. If the Offered Space is not so delivered to Tenant within nine (9) months after the Estimated Delivery Date of such Offered Space, then Tenant shall have the right (to be exercised not later than ninety (90) days following the expiration of such nine (9) month period as hereinafter provided) to rescind its election to add to the Premises such Offered Space or that portion thereof as to which possession is not obtainable, and in the latter case, Landlord, at its own cost, shall separate the portion that is part of the Premises so it may be legally occupied by Tenant. If Tenant does not exercise its rescission right within the aforesaid ninety (90) day period, then Tenant shall be deemed to have agreed to refrain from exercising such rights for the next succeeding ninety (90) day period (a "Tolling Period") upon the expiration of which Tenant shall again have the same rescission right described above which may be exercised for the next succeeding ninety (90) day period. If Tenant does not exercise its rescission rights within the aforesaid ninety (90) day period, then Tenant shall again be deemed to have agreed to another Tolling Period of ninety (90) days during which it may not exercise such rescission rights. Such procedure shall continue until Landlord delivers such Offered Space to Tenant or Tenant exercises its rescission rights hereunder. If Tenant exercises such rescission option and Landlord does not deliver such Offered Space to Tenant within thirty (30) days after the giving of such rescission notice (time being of the essence), then it shall be deemed that such Offered Space has not been offered to Tenant and the applicable provisions of Section 23.1 hereof shall continue in full force and effect, subject to the provisions of the next sentence. Upon Landlord obtaining vacant possession of the Offered Space that was the subject of the rescission exercised by Tenant, Landlord agrees to reoffer the same to Tenant in accordance with the applicable terms of this Article 23, except that if such reoffer occurs within twelve (12) months of such rescission, then for the purposes hereof and notwithstanding anything to the contrary contained in this Section 23.1, the Estimated Delivery Date shall be a date designated by Landlord that is not more than thirty (30) days following Landlord's notice reoffering the same to Tenant and Tenant shall be required to deliver to its ROFO Election Notice to Landlord with respect thereto within seven (7) Operating Days after being informed of such estimated Delivery Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2&nbsp;&nbsp;&nbsp;&nbsp; <u>WAIVER OF OFFER</u>. If Tenant refuses or fails to timely deliver a ROFO Election Notice pursuant to the provisions of this Article 23 with respect to the ROFO Space, then Tenant shall be deemed to have waived and relinquished its right of first offer as set forth in this Article with respect only to the applicable Offer Space, and Landlord shall be free to enter into any transaction with any party for all or any portion of the applicable ROFO Space, and Landlord shall have no further obligation to offer the applicable ROFO Space to Tenant (unless the applicable ROFO Space again becomes available for leasing following the expiration of a subsequent lease of such ROFO Space); provided, however, if Landlord proposes to lease the applicable Offer Space to a third party on terms that are substantially different (as more particularly described below) than those set forth in the ROFO Election Notice within twelve (12) months following the date of the ROFO Notice, then Tenant shall once again have a right of first offer with respect to such ROFO Space which shall be superior to any such prospective tenant, and Landlord must again give a ROFO Notice as set forth in this <u>Article 23</u>, but in such event, Tenant's ROFO Election Notice must be delivered to Landlord, if at all, within ten (10) Operating Days after the receipt of the ROFO Notice. For the purposes hereof, the terms offered to a prospect shall be deemed to be substantially different from those set forth in the ROFO Election Notice if (a) a lease pursuant to such terms is not entered into within twelve (12) months of the date of such ROFO Election Notice, or (b) there is more than a five percent (5%) reduction in the "bottom line" cost per rentable square foot of the ROFO Space to the prospect when compared with the "bottom line" cost per rentable square foot under the ROFO Election Notice, considering all of the economic terms of both deals, respectively, including, without limitation, the length of term, the net rent, any tax or expense escalation or other financial escalation and any financial concessions.

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<u>ARTICLE 24</u>

<u>LANDLORD'S TERMINATION OPTION</u>

Notwithstanding anything to the contrary contained in this Lease, Landlord shall have the right to terminate this Lease on or after the twentieth (20<sup>th</sup>) anniversary of the Rent Commencement Date provided that Landlord shall (a) deliver written notice to Tenant at least twenty-four (24) months prior to the effective date of such termination set forth in such written notice (the "Termination Effective Date"), and (b) such notice shall include reasonable evidence that Landlord will be demolishing the Building and redeveloping the Property (such evidence may include, without limitation, engaging an architect, contractor or other consultants, development of preliminary plans and specifications, or having obtained (or sought to obtain) financing in connection with such redevelopment) and (c) such notice shall include a certificate by Landlord that Landlord has or is concurrently terminating the leases for all Building Office Space effective as of on or about the Termination Effective Date.

<u>ARTICLE 25</u>

<u>SIGNAGE</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1&nbsp;&nbsp;&nbsp;&nbsp; <u>Tenant Signage Rights</u>. Tenant shall have the right, at Tenant's sole cost and expense, to install signage on the interior (including, without limitation, the lobby of the Building) and exterior of the Building ("Tenant's Signage") subject, however, to Tenant's submission of detailed plans and specifications with respect to such Signage for Landlord's written approval (which approval shall not be unreasonably withheld, conditioned or delayed) prior to the installation of any such Signage. Tenant shall not distribute, display or erect any temporary or permanent signs, advertisements, leaflets, petitions, posters, lettering, displays, boards, awnings, banners or any other kind of description on or from the outside of the Premises or any interior signs visible from the exterior of the Premises (collectively, "Signage") without obtaining Landlord's prior written approval thereto, which consent shall not be unreasonably withheld, conditioned or delayed. In no event shall Tenant erect any signs on the façade of the Building (except as approved by Landlord in accordance with the immediately preceding sentence), or so-called "neon signs" on the exterior of the Premises. In addition to complying with all of the terms and conditions of this Lease, Tenant shall submit to Landlord a detailed sketch of any such Signage and, if approved by Landlord, the same shall not be altered in any manner without first obtaining Landlord's prior written consent for such proposed change, which consent shall not be unreasonably withheld, conditioned or delayed. All such Signage shall be maintained by Tenant at its sole cost and expense in good order and condition, and in accordance with all of the terms and provisions of this Lease and Exhibit Q attached hereto. All Signage shall be removed by Tenant at the end of the term hereof, and Tenant shall repair, at Tenant's sole cost and expense, any damage to the Premises, the Building or its exterior caused by the installation, maintenance or removal of such Signage. Subject to Section 2.2(b), with respect to fire stairwells, Tenant will not paint or decorate any part of the exterior of the Premises without first obtaining Landlord's written approval, which consent shall be granted or withheld in accordance with the terms and conditions of this Lease applicable to Alterations. Landlord reserves the right to require Tenant to correct any non-conforming Signage or to correct such non-conformity at Tenant's expense, which cost shall be collectible by Landlord as Additional Rent and payable within thirty (30) days of receipt of Landlord's bill therefor. Subject to compliance with the terms and conditions of this Lease, Tenant shall have the right to sublease Tenant's rights with respect to Tenant's Signage (or portions thereof) to any subtenants subleasing and occupying at least one (1) full floor of the Building.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.2 &nbsp;&nbsp;&nbsp;&nbsp; <u>Tenant's Additional Signage Rights</u>. If Landlord grants any tenant of any portion of the Building Office Space the right to install permanent Signage in the lobby of the Building or on the exterior of the Building which is larger in size (except to a *de minimis* extent) or in more prominent locations (except to a *de minimis* extent) than Tenant's Signage (any such Signage, the "Competing Signage"), Tenant shall have the right, at Tenant's sole cost and expense and otherwise subject to the terms and conditions of this Lease (including, without limitation, Section 25.1), to modify Tenant's Signage or install additional Signage (to the extent Tenant did not previously have Signage substantially similar in size or location to the Competing Signage) such that, in all events, Tenant shall have the right to install Signage at least equal in size (except to a *de minimis* extent) or prominence (except to a *de minimis* extent) to any Competing Signage (of any single tenant).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3&nbsp;&nbsp;&nbsp;&nbsp; <u>Security Personnel</u>. Tenant, at Tenant's sole cost and expense, may station one person who is either an employee of Tenant or an independent contractor engaged by Tenant at Landlord's security/reception desk located in the lobby of the Building provided that at all times any such person is neatly attired and otherwise behaves in a manner consistent with similarly situated security personnel in First Class Buildings. Any such person shall at all times abide by the Rules and Regulations. Tenant shall indemnify, defend and hold each Landlord Party harmless against and from all any claims, liability, losses or expenses, including reasonable attorneys' fees and court costs, which may be imposed upon, incurred by or asserted against any Landlord Party by any third party and arising out of or in connection with the acts or omissions of such person stationed at the security/reception desk located in the lobby of the Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.4&nbsp;&nbsp;&nbsp;&nbsp; <u>Building Naming Restrictions</u>. Without the prior written consent of Tenant, in Tenant's sole an absolute discretion, Landlord shall not name the Building for any other tenant of the Building or any other Person.

<u>ARTICLE 26</u>

<u>EXPANSION SPACE</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.1&nbsp;&nbsp;&nbsp;&nbsp; <u>EXPANSION OPTION</u>. (a) Provided that at the time of such exercise and as of the actual Expansion Delivery Date (1) there then exists no continuing Event of Default, (2) this Lease is in full force and effect and (3) Original Tenant shall not have assigned this Lease, Tenant shall have the option (the "Expansion Option") of leasing the entire balance of the 10<sup>th</sup> floor of the Building (and not just a portion thereof), as depicted and shown on Exhibit M attached hereto ("Expansion Space") for a term commencing on the dates on which the same are delivered to Tenant in accordance with this Article 26 (the "Expansion Delivery Date") and ending on the Expiration Date on the terms and conditions as hereinafter set forth.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant may elect to lease all of the Expansion Space by giving Landlord notice of such election (an "Expansion Notice") not later than the date that is eighteen (18) months following the date of this Lease (the "Outside Expansion Notice Date").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If Tenant delivers an Expansion Notice with respect to the Expansion Space as provided in this Article 26, on the Expansion Delivery Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Expansion Space shall be added to and deemed a part of the Premises for all purposes of this Lease, except as otherwise set forth in this Article 26 and the rentable square feet of the tenth floor shall be deemed to be 42,771 (and the Office Premises shall be deemed to consist of 85,542 rentable square feet in the aggregate), subject to adjustment of the rentable square feet of the Premises pursuant to Section 2.1 (if then applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Annual Fixed Rent shall be increased to include the Expansion Space so leased, and the Annual Fixed Rent with respect to the Expansion Space shall be as follows: initially, the sum of $1,549,693.00 ($83.00 per rentable square foot per annum), increased to (i) $1,661,719.00 ($89.00 per rentable square foot per annum) upon the fifth anniversary of the Rent Commencement Date and (ii) $1,773,745.00 ($95.00 per rentable square foot per annum) upon the tenth anniversary of the Rent Commencement Date, and subject to Section 5.1(b)), which sum is hereinafter referred to as the "Expansion Annual Fixed Rent"), provided that the payment of Annual Fixed Rent with respect to the Expansion Space shall be waived for the period (the "Expansion Rent Concession Period") from and including the Expansion Commencement Date through and including the date preceding the date which is fifteen (15) months after the Expansion Commencement Date (such date, the "Expansion Rent Commencement Date"), and if the Expansion Rent Concession Period shall expire on a date other than the last day of a calendar month, then on the Expansion Rent Commencement Date, Tenant shall pay to Landlord a monthly installment of Expansion Annual Fixed Rent prorated to the end of said calendar month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant's Share with respect to Operating Expenses (inclusive of the Expansion Space) shall be increased to 35.48% (subject to adjustment as provided in Section 2.1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant's Share with respect to Taxes (inclusive of the Expansion Space) shall be increased to 16.51% (subject to adjustment as provided in Section 2.1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each of the Applicable Reduction Amounts set forth in Section 5.1(b) shall be increased to include the Expansion Space so leased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; With the Expansion Space Delivery Conditions satisfied so as to allow Tenant access to the Premises such that Tenant is able to perform Tenant's Work with respect to the Expansion Space. The "Expansion Space Delivery Conditions" are set forth on Exhibit X hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall be entitled to a contribution towards Tenant's Costs of Tenant's Work with respect to the Expansion Space (the "Expansion Landlord's Contribution") computed in accordance with Exhibit C attached hereto and made a part hereof, which Expansion Landlord's Contribution shall be contributed and paid by Landlord with respect to the Expansion Space in the same manner as the Landlord's Contribution was contributed and paid by Landlord with respect to the initial Premises pursuant to Exhibit C hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) &nbsp;&nbsp;&nbsp;&nbsp; The Expansion Delivery Date shall occur by not later than (x) if the Expansion Notice is delivered to Landlord prior to the Landlord's Anticipated Access Date, the later to occur of (1) the Access Date and (2) two (2) weeks following Landlord's receipt of the Expansion Notice, or (y) if the Expansion Notice is delivered to Landlord from and after the Landlord's Anticipated Access Date, the date that is thirty (30) days following the date that the Expansion Notice is delivered to Landlord (as applicable, the "Expansion Outside Delivery Date"), and if the Expansion Delivery Date does not occur on or before the Expansion Outside Delivery Date, then the Expansion Rent Concession Period (and the Contribution Requisition Period with respect to the Expansion Landlord's Contribution) shall be increased in the same manner as provided in Section 3.1, as if the Expansion Outside Delivery Date were the First Penalty Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.2&nbsp;&nbsp;&nbsp;&nbsp; <u>LEASING OF EXPANSION SPACE</u>. Landlord agrees that it will not enter into any lease for all or any portion of the Expansion Space prior to the date immediately following Outside Expansion Notice Date (and then only if Tenant did not timely deliver an Expansion Notice upon or prior to the Outside Expansion Notice Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.3&nbsp;&nbsp;&nbsp;&nbsp; <u>AMENDMENT TO</u> LEASE. Promptly following the timely delivery of an Expansion Notice by Tenant, Landlord and Tenant shall enter into an appropriate amendment of this Lease reflecting the leasing of any Expansion Space by Tenant.

<u>ARTICLE 27</u>

<u>ANTENNA</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1&nbsp;&nbsp;&nbsp;&nbsp; During the Lease Term, Tenant may desire communication services in connection with the operation of Tenant's business which would necessitate the construction, installation, operation and use by Tenant of a communication antenna and/or microwave/satellite dish, together with related equipment, mountings and supports, all of reasonable size (collectively, the "<u>Antenna</u>"), either (i) within the License Area or (ii) on the roof of the Building outside of the License Area. Tenant shall have the right to install one (1) Antenna within the License Area, at such height as may be permitted by legal requirements, subject to the further terms and conditions of this Article 27. Further, Landlord, to the extent that the installation of the Antenna is permitted by applicable legal requirements, shall make available to Tenant, without charge, on sixty (60) days prior written request therefor by Tenant, on a nonexclusive basis, space on the roof of the Building outside of the License Area that is approved by Tenant acting reasonably (it being agreed that Tenant shall otherwise have the right to install an Antenna at a location of its choosing within the License Area; provided, however, in no event shall Tenant have the right to install more than one (1) Antenna at the Building (within the License Area or otherwise)). In no event shall the microwave/satellite dish (a) exceed one (1) meter in diameter or (b) be used or permitted to send any communication signals whatsoever.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.2 &nbsp;&nbsp;&nbsp;&nbsp; Tenant shall pay all costs and expenses of such Antenna and its installation (including, without limitation, the cost of all electrical and telecommunications conduits that Tenant may install in connection therewith). In connection therewith, Landlord will make available to Tenant access to the roof for the construction, installation, maintenance, repair, operation and use of the Antenna, as well as reasonable space in the Building, to run electrical and telecommunications conduits from the Antenna to the Premises, in locations reasonably determined by Landlord. The installation of the Antenna shall constitute an Alteration and shall be performed in accordance with and subject to the provisions of Article 8 hereof and the Antenna shall be treated for all purposes of this Lease as if the same were Tenant's Property. All of the provisions of this Lease with respect to Tenant's obligations hereunder shall apply to the installation, use and maintenance of the Antenna including, without limitation, provisions relating to compliance with legal requirements, insurance, indemnity, repairs and maintenance. The Antenna shall be deemed to be a Specialty Alteration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.3 &nbsp;&nbsp;&nbsp;&nbsp; Tenant shall use the Antenna so as not to cause (i) any unreasonable interference to other tenants in the Building or (ii) any interference with previously existing telecommunications equipment or (iii) damage to or interference with the operation of the Building or Building systems. Landlord shall not permit any other communication, antenna, microwave or satellite dish or other equipment to be installed on the roof of the Building after the installation of the Antenna which would interfere (other than to a <u>de minimis</u> extent) with the operation of the Antenna.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.4&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall (i) be solely responsible for any damage caused as a result of the installation or use of the Antenna (except to the extent such damage is caused by the gross negligence or willful misconduct of Landlord or its respective agents, servants, employees or licensees), (ii) promptly pay any tax, license or permit fees charged pursuant to any legal requirements in connection with the installation, maintenance or use of the Antenna and comply with all applicable legal requirements, and (iii) make necessary repairs, replacements to, or maintenance of, the Antenna.

[Signatures on next page.]

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EXECUTED in one or more counterparts by persons or officers hereunto duly authorized on the Date set forth in Section 1.2 above.

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| |
|:---|
| LANDLORD: |
| **GEORGETOWN ELEVENTH AVENUE OWNERS, LLC** |

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| | |
|:---|:---|
| By: | /s/ Adam Flatto |
|  | Name: |
|  | Title: |

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| |
|:---|
| TENANT: |
| **PERSHING SQUARE CAPITAL MANAGEMENT, L.P.** |
| By: PS Management GP, LLC, its General Partner |

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| | |
|:---|:---|
| By: | /s/ William A. Ackman |
|  | Name: William A. Ackman |
|  | Title: Managing Member |

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LEASE

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<u>EXHIBIT A</u>

<u>LAND</u>

ALL that certain plot, piece or parcel of land, situate, lying and being in the Borough of Manhattan, County of New York, City and State of New York, bounded and described as follows:

BEGINNING at a corner formed by the intersection of the southerly side of 55th Street with the westerly side of 11th Avenue;

RUNNING THENCE southerly along the westerly side of 11th Avenue, 200 feet 10 inches to the corner formed by the intersection of the westerly side of 11th Avenue with the northerly side of 54th Street;

THENCE westerly along the northerly side of 54th Street, 225 feet;

THENCE northerly and parallel with the westerly side of 11th Avenue, 200 feet 10 inches to a point on the southerly side of 55th Street, distant 225 feet westerly from the corner formed by the intersection of the southerly side of 55th Street with the westerly side of 11th Avenue; and

THENCE easterly along the southerly side of 55th Street, 225 feet to the point or place of BEGINNING.

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<u>EXHIBIT B-1</u>

<u>OFFICE PREMISES</u>

The Office Premises shall constitute the entire ninth (9<sup>th</sup>) floor and a portion of the tenth (10<sup>th</sup>) floor of the Building, as shown on the floor plan annexed to this Exhibit B-1 and forming a part hereof within the outside walls of the Building, excluding the area occupied by mechanical rooms located on the 9<sup>th</sup> floor and the 10<sup>th</sup> floor of the Building not used solely by Tenant, Building stairs, fire towers, elevator shafts, flues, vents, stacks, pipe shafts and vertical ducts, with their enclosing walls (but including the area occupied by the shafts and machinery for any private elevators, pneumatic tubes, conveyors, mail chutes and the like installed by Tenant, and the interior walls and partitions enclosing such shafts and machinery).

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[Floor Plan]<br>

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[Floor Plan]

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<u>EXHIBIT B-2</u>

<u>MEZZANINE PREMISES</u>

The Mezzanine Premises shall constitute a portion of the mezzanine level the Building, as shown on the floor plan annexed to this Exhibit B-2 and forming a part hereof within the outside walls of the Building.

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[Floor Plan]

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<u>EXHIBIT C</u>

<u>WORK LETTER</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Performance of Work</u>. Tenant shall, at the sole cost and expense of Tenant and subject to the limitations and provisions of this Work Letter and the Lease including, without limitation, Article 4 and Article 8 thereof, perform all work necessary to prepare the Premises for Tenant's occupancy. In the event of any inconsistency between the provisions of Article 4 or Article 8 of the Lease and this Work Letter with respect to the performance of Tenant's Work, the provisions of this Work Letter shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Preparation of Tenant's Plans and Specifications ; Plan Requirements; Approval by Landlord</u>. Tenant shall submit to Landlord, for Landlord's approval, complete plans, working drawings, specifications and information (collectively, as the same may be modified and approved by Landlord from time to time in accordance with the terms and conditions of the Lease and this Exhibit C "Plans and Specifications") necessary to perform Tenant's Work. Prior to the commencement of Tenant's Work, the Plans and Specifications shall have been approved in writing by Landlord but (1) such approval shall be as to layout and design only and shall not be deemed to be an approval of the legality or the cost of Tenant's Work or the Plans and Specifications and (2) any material changes or material modifications to the Plans and Specifications shall be subject to Section 8.1(e) of the Lease and the further approval in writing by Landlord. Landlord will not unreasonably withhold, condition or delay its approval of the Plans and Specifications or any proposed change or modification thereof. Each submission of the Plans and Specifications shall consist of six (6) complete sets of the relevant plans and specifications and shall identify changes from the prior submissions. In all events, the Plans and Specifications shall continue to comply with and conform to Landlord's plans for the Building, to the extent provided to Tenant, and with all applicable laws, codes and regulations relating to construction of the Building and/or the Premises. The Plans and Specifications shall be detailed and coordinated, shall show complete dimensions, shall have designated thereon all points of location and other matters, required to perform or let contracts for the performance of Tenant's Work and shall consist of the final plans and specifications (including air conditioning, ventilating, electrical, plumbing and engineering design drawings and specifications) prepared by Tenant's licensed interior architect or designer and engineer to describe the manner in which Tenant intends to finish the Premises, including any material changes thereto from time to time made by Tenant to obtain the approvals or permits referred to in paragraph 4 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Work Letter Definitions</u>. As used in this Exhibit C ("Work Letter"), all capitalized terms have the same meanings as defined in the Lease. In addition, the following terms have the following respective meanings:

"Base Building" shall mean the core and shell of the Building including, without limitation, the structural portions of the Building and the Building mechanical, electrical and plumbing and fire/life safety systems and equipment located in the internal core of the Building.

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"notice" shall, as used in this Work Letter only, and notwithstanding the general provisions of Section 20.9 of the Lease, mean any letter, memorandum or other written communication which is either mailed to Landlord or Tenant, as the case may be (by registered or certified mail, return, receipt requested), or is actually delivered to Landlord's Construction Representative or to Tenant's Construction Representative at the Present Mailing Address of Landlord or Tenant or at the Premises. Any such notice shall be deemed to have been, given when received by mail or when delivered to Landlord's Construction Representative or to Tenant's Construction Representative, as the case may be;

"Tenant's Architect" shall mean the person or entity lawfully licensed to practice architecture, which has prepared and stamped the Plans and Specifications;

"Tenant's Cost" shall mean, in the aggregate, the actual out-of-pocket cost of work done or caused to be done by Tenant, its architects and engineers and by its contractors, suppliers and work forces for materials and labor in connection with the performance of Tenant's Work;

"Tenant's Work" shall mean all materials and work necessary to finish the Premises (including, without limitation, the Expansion Space if the Expansion Option is timely exercised by Tenant pursuant to Article 26 of the Lease) for Tenant's initial occupancy, including built-in furniture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Governmental Approvals: Filing.</u> Prior to the commencement of Tenant's Work, Tenant shall, with reasonable diligence, file with Landlord the Plans and Specifications for Tenant's Work, and shall take whatever action shall be reasonably necessary (including modifications reasonably approved by Landlord of the Plans and Specifications for Tenant's Work) to obtain and maintain all governmental permits and authorizations, if any, which may be required in connection with Tenant's Work, and shall deliver copies of all of the same to Landlord for inspection by Landlord, and, if applicable, for Landlord's approval. Tenant shall pay all filing fees and other costs in connection therewith. Tenant shall deliver copies of all such permits and authorizations to Landlord, along with an Architect's Certificate from Tenant's Architect (or such other architect as may be reasonably approved by Landlord) certifying that such Plans and Specifications are in substantial compliance with all applicable laws, codes and regulations. Landlord shall cooperate with Tenant in connection with the aforesaid and Landlord shall, at no cost to Landlord, execute any applications for permits (if the provisions of any applicable law or legal requirement requires that Landlord join in such application) necessary in connection with Tenant's Work regardless of whether or not Landlord's approval for such Tenant's Work shall have been obtained; provided, however, that Landlord's execution of any such application shall not be deemed to constitute Landlord's consent to the performance of the work described therein, nor an agreement by Landlord that such plans, specifications and work conform with applicable law and insurance requirements, nor a waiver by Landlord of compliance by Tenant with any provisions of the Lease or this Work Letter, nor shall it impose upon Landlord any liability or obligation with respect to such work or the performance thereof. Tenant will promptly furnish to Landlord copies of all drawings. Tenant shall use an expediter designated by Landlord in connection with making all filings and obtaining all permits, licenses, certificates and approvals from governmental authorities provided that the charges of such expediter shall be reasonable in relation to the charges of expediters providing similar services in other first-class office buildings in midtown Manhattan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp; <u>Performance of the Work: Tenant's Cost.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp; Subject to (i) Landlord's approval of Tenant's final Plans and Specifications, in accordance with the terms and conditions of the Lease and this Exhibit C, and (ii) the issuance of all necessary governmental permits, licenses, certificates and approvals (except to the extent of any delay in the issuance of same resulting solely from a Tenant Delay), from and after the Access Date (or, with respect to the Expansion Space if the Expansion Option is timely exercised by Tenant pursuant to Article 26 of the Lease, the Expansion Delivery Date), Tenant shall promptly commence and diligently prosecute the performance of Tenant's Work to completion in accordance with Tenant's approved Plans and Specifications therefor and Tenant shall abide by the Alteration Rules & Regulations & Design Guidelines for the Building. Tenant's Work shall be completed at Tenant's sole cost and expense, subject to Landlord's Contribution as provided by Section 6 of this Exhibit C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp; Except with respect to Landlord's expediter, any fire alarm tie-ins or systems and/or any programming of the Building's building management system or otherwise agreed by Landlord in writing, Tenant shall perform all of Tenant's Work through its own employees or contractors. For the avoidance of doubt, (i) Tenant shall not be required to connect any building management system of Tenant with respect to the Premises (a "Tenant BMS") to the Building's building management system, and (2) any Tenant's Work relating to the installation of any such Tenant BMS may be performed through Tenant's own employees or contractors (excluding Landlord's expediter, any fire alarm tie-ins or systems and/or any related programming of the Building's building management system to which the Tenant BMS may be connected, as provided in the preceding sentence).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp; Following the completion of Tenant's Work, Tenant shall deliver or cause to be delivered to Landlord (i) an architect's certificate from Tenant's Architect certifying that Tenant's Work has been completed substantially in accordance with the approved Plans and Specifications, (ii) three (3) complete "as built" sets of Tenant's Plans and Specifications prepared on an AutoCAD Computer Assisted Drafting and Design System (or such other system or medium reasonably approved by Landlord and generally used in the industry) using naming conventions issued by the American Institute of Architects in June, 1990 (or such other naming conventions as Landlord may reasonably accept) and magnetic computer media of such record drawings and specifications, translated into in a format compatible with AutoCAD Release 2000 or later or another format reasonably acceptable to Landlord, (iii) all letters of completion, inspection certificates and any signs-offs from the Department of Buildings (or other government entities having jurisdiction thereover) for all permits and work applications in connection with Tenant's Work, to the extent received by Tenant or its contractors and (iv) final lien waivers from all contractors and subcontractors covering their respective work and materials in connection with Tenant's Work, provided that, if Tenant has delivered to Landlord a final lien waiver from its general contractor or construction manager (acting as constructor), Tenant shall not be obligated to deliver final lien waivers with respect to any subcontractor(s) holding a subcontract or subcontracts having an aggregate value of not more than $25,000 as long as the aggregate value of all subcontracts for which final lien waivers are not supplied does not exceed $250,000.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp; From and after the date hereof, subject to the final sentence of this clause (d), Tenant shall pay to Landlord any incremental or additional costs incurred by Landlord, its architects and engineers and by its contractors, suppliers and work forces (without any additional fees, premiums or markups charged by Landlord) for materials and labor in connection with the performance of any work or materials necessary or required (or reasonably desired) with respect to the Base Building as a result of or in connection with the installation and/or construction of the components of Tenant's Work identified on Exhibit EE attached hereto, within thirty days of Landlord's written invoice and demand therefor. Landlord shall maintain Landlord's records relating to such work items identified on Exhibit EE on an "open book" basis (i.e., on the basis that the records of the actual cost incurred by Landlord in the performance thereof are maintained in a fully auditable manner and are made available to the Tenant whenever reasonably requested for purposes of verifying the actual cost incurred by Landlord in connection therewith) including subcontractor labor and material breakdown, fees for general conditions, general contractor fees and issuance will be at the amount charged with no additional markup or premium payable to Landlord for change orders other than what Landlord actually pays and Landlord shall use commercially reasonable efforts to ensure the incremental or additional costs incurred in connection with such work shall be at competitive market rates and shall provide Tenant with a reasonable opportunity to comment on such costs prior to the incurrence thereof. In lieu of Tenant's payment pursuant to this clause (d), at Tenant's election but subject to the final sentence of Section 7 of this Exhibit C, Tenant may apply Landlord's Contribution on account of such costs and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Landlord's Contribution.</u> Landlord agrees to pay to Tenant, as a contribution towards Tenant's Cost, an amount equal to $200.00 per rentable square foot of (i) the Office Premises and (ii) if the Expansion Option is timely exercised by Tenant pursuant to Article 26 of the Lease, the Expansion Space ("Landlord's Contribution"), provided that no more than twenty percent (20%) of the aforesaid contribution, may be applied towards "soft" costs, including but not limited to space planning, filing fees, architectural fees, engineering fees and consulting or legal fees. In no event shall any portion of Landlord's Contribution be used to pay for Tenant's Property or moving expenses. In the event that Tenant fails to submit all of Tenant's requisitions for the payment of Landlord's Contribution within thirty-six (36) months from (x) with respect to the initial Premises, the Access Date, and (y) with respect to the Expansion Space, if applicable, the Expansion Space Delivery Date (the "Contribution Requisition Period"), which date shall be extended by reason of Landlord Delay or Force Majeure, and as otherwise expressly provided in the Lease, Tenant shall not be entitled to any cash payment or to any credit or set-off with respect to rent, subsequent Tenant's Costs, or any other monetary obligation of Tenant to Landlord.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment</u>. (a) Subject to the provisions hereof, all payments to be made by Landlord to Tenant in accordance with the provisions of this Exhibit C shall be disbursed to Tenant within twenty (20) days after receipt by Landlord of requisitions from Tenant setting forth in detail the amount of Tenant's Costs covered in such requisitions. All requisitions for payment presented to Landlord as provided hereunder shall (a) be marked "Approved for Payment", and be countersigned by Tenant and Tenant's Construction Representative, (b) include a reasonably detailed description of Tenant's Work theretofore completed, and submission of complete and executed AIA forms G-702 and G-703, (c) be accompanied by partial waivers of lien in the form attached hereto as Exhibit BB and made a part hereof from all contractors, engineers, architects, subcontractors, material suppliers and others covering all work and materials which are the subject of such requisition, (d) be accompanied by paid invoices or such other evidence or proof of payment reasonably required by Landlord covering all work and materials which are the subject of such requisition and (e) include such other information and documentation as Landlord may reasonably request in connection with the completion of Tenant's Work. The amount of each disbursement of Landlord's Contribution shall be equal to the approved amount of Tenant's Costs covered by the requisition; provided, however, all construction contracts for Tenant's Work shall include a customary retainage appropriate for the contract in question, and all requisitions shall be for amounts consistent with the retainages set forth in such contracts. In no event shall Landlord be required to make disbursements of Landlord's Contribution (i) more frequently than once per month, (ii) prior to Landlord's approval of the Plans and Specifications, (iii) while there exists a monetary or material non-monetary default of Tenant or (iv) prior to execution by Landlord and Tenant of a written agreement that the Access Date has occurred or Tenant otherwise unconditionally acknowledges in writing that the Access Date has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp; If Landlord fails, after satisfaction of all required conditions under Section 7(a) of this Exhibit C, to pay any installment of Landlord's Contribution on or before the due date therefor and such failure continues for thirty (30) days after Tenant notifies Landlord in writing of such failure (which notice shall state that Tenant intends to set off such amount, together with interest thereon at the Lease Interest Rate, against the next installment of rent unless Landlord pays such amount (and such interest) to Tenant), Tenant shall, subject to the provisions hereof and provided no Event of Default shall have occurred and be continuing, set off such amount (together with such interest thereon at the Lease Interest Rate, the "<u>Offset Amount</u>"), against the next installments of rent coming due. If any portion of any Offset Amount shall not have been credited as of the Expiration Date, then, provided that Tenant shall not be in default in the payment of any rent and shall have otherwise surrendered the Premises to Landlord in the manner required under this Lease, Landlord, within thirty (30) days after the Expiration Date, shall pay such amount to Tenant. The preceding sentence shall survive the Expiration Date. Notwithstanding anything to the contrary contained herein, Tenant shall have no such right of offset if Landlord shall in good faith dispute Tenant's claim that Tenant is entitled to a disbursement of all or any portion of Landlord's Contribution unless and until Landlord settles such dispute with Tenant or such dispute is otherwise resolved in Tenant's favor pursuant to Section 20.2 of the Lease (it being agreed that at the time of such resolution (or if Tenant loses a dispute because of Tenant's failure to satisfy the conditions precedent to a disbursement of Landlord's Contribution and Tenant thereafter satisfies all required conditions) Tenant will be entitled to the unfunded portion of the installment that is the subject of the dispute); <u>provided</u>*,* <u>however</u>, Tenant may, pending resolution of such dispute, offset such unpaid portions of such disbursement of Landlord's Contribution that are not in dispute, provided Tenant has otherwise met all of the requirements set forth under this Exhibit C with respect to such undisputed portion and no Event of Default shall have occurred and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. &nbsp;&nbsp;&nbsp;&nbsp; <u>Tenant's Contractors</u>. With respect to Tenant's Work, Tenant shall not engage any contractor or subcontractor for any trade required in the performance of Tenant's Work unless the same shall have been approved by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed. Landlord acknowledges that it has approved the Approved Contractors in connection with Tenant's Work.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. &nbsp;&nbsp;&nbsp;&nbsp; <u>Insurance</u>. Prior to the commencement of Tenant's Work, Tenant shall deliver to Landlord a true copy of all insurance policies or certificates of insurance issued in conformity with Article 11 of the Lease bearing notations evidencing the payment of premiums or accompanied by other evidence of such payments satisfactory to Landlord, for the following insurance, which shall name the respective contractor or subcontractor as insured and (except with respect to the workers compensation and disability insurance described in clause (c) below and the builder's risk insurance, or equivalent coverage, described in clause (d) below) Tenant, Landlord and the Additional Insureds as additional insureds with respect to liability arising out of Tenant's Work, including but not limited to liability to employees of contractor or subcontractors of all tiers, or their personal representatives, heirs and beneficiaries. Such policies shall also (i) provide that the coverage provided thereunder shall be primary and any liability insurance of each additional insured party shall be secondary and non-contributory and (ii) waive any right of subrogation against each additional insured party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp; a policy of commercial general liability insurance, on an occurrence basis, issued on a form at least as broad as ISO Commercial General Liability Coverage "occurrence" form CG 00 01 10 01 or another ISO Commercial General Liability "occurrence" form providing equivalent coverage. Such insurance shall include broad form contractual liability coverage, specifically covering but not limited to the indemnification obligations undertaken by Tenant in this Lease. The minimum limit of liability of such insurance shall be $10,000,000 per occurrence and per project for the general contractor, and $1,000,000 for subcontractors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp; comprehensive form automobile liability and property damage insurance for all owned, non-owned and hired vehicles insuring against liability for bodily injury and death and for property damage in an amount not less than $1,000,000 combined single limit, such insurance to contain the so-called "occurrence clause";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp; workers' compensation and statutory disability providing statutory New York State benefits for all persons employed in connection with Tenant's Work at or in connection with the Premises; and statutory employer's liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp; "all risk" builder's risk insurance or equivalent coverage with respect to Tenant's Work, written on a completed value, non-reporting replacement cost basis. Such insurance shall be in the amount of the full replacement value of Tenant's Work, it being agreed that no omission on the part of a party to request any such determination shall relieve Tenant of its obligation to have such replacement value determined as aforesaid. Such insurance shall contain an acknowledgment by the insurance company that its rights of subrogation have been waived; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;equipment / property insurance.

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<u>EXHIBIT D</u>

<u>LANDLORD'S SERVICES</u>

I. <u>DEFINITIONS</u> 

As used herein or in the body of the Lease, (i) the term "Operating Days" shall mean such Mondays, Tuesdays, Wednesdays, Thursdays and Fridays as do not fall on the days celebrated as New Year's Day, Martin Luther King Day, Presidents' Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, the Day after Thanksgiving or Christmas Day, or on such other days as may now or hereafter be celebrated as holidays under the contract from time to time in effect between Locals 32B and 32J of the Building Service Employees Union AFL -CIO (or any successor thereto) and the Real Estate Advisory Board of New York, Inc. (or any successor thereto) or on which comparable first- class office buildings in midtown Manhattan are now or hereafter closed (collectively, "Building Holidays"); and (ii) the term "Operating Hours" shall mean the hours between 8:00 A.M. and 6:00 P.M. on Operating Days and 9:00 A.M. and 1:00 P.M. on Saturdays.

II. <u>CLEANING</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Cleaning of office areas, lavatories, main lobby, elevators, building exterior, and windows shall be performed or caused to be performed by Landlord at Landlord's expense on Operating Days in accordance with the
 cleaning specifications annexed hereto as Schedule 1 or such other cleaning specifications that may be agreed to in writing by Landlord and Tenant from time to time (the "Cleaning Specifications").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. If Tenant requires services in excess of those contained in the then applicable Cleaning Specifications, Tenant shall have the right to have Tenant's employees perform such services or Tenant shall engage Landlord's cleaning contractor (or such
 other cleaning contractor reasonably acceptable to Landlord), and Tenant shall be responsible for paying any and all costs whatsoever in connection therewith. Notwithstanding anything to the contrary contained herein, Tenant shall be responsible
 for cleaning of the License Area and for the removal from the Premises and the Building of any garbage or other waste from the Kitchen and/or any cafeteria, lunchroom or other food preparation and/or consumption facilities in the Premises, any
 costs incurred in connection therewith, and any additional costs (including, without limitation, extermination, ventilation and the mitigation of any odors) incurred by Landlord (or Landlord's cleaning contractor) in connection with the storage
 or disposal of any of Tenant's garbage or other waste from the Kitchen and/or any cafeteria, lunchroom or other food preparation and/or consumption facilities in the Premises. In connection with the foregoing, Landlord shall provide to Tenant, at
 Tenant's sole cost and expense, a dedicated refrigerated room in the basement of the Building for storage and disposal of such garbage and/or other waste.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Without limiting the provisions of paragraph B above, Tenant shall reimburse Landlord on demand for the actual costs charged by Landlord's cleaning contractor, without profit to Landlord, (a) for extra cleaning work in the Premises and/or the
 Building required by reason of (i) misuse or neglect on the part of Tenant, its agents, employees, contractors, invitees or subtenants, (ii) use of portions of the Premises for the preparation, serving or consumption of food or beverages, data
 processing or reproducing operations, private lavatories or toilets or other special purposes requiring greater or more difficult cleaning work than office areas or (iii) materials or finishes not included in Landlord's general cleaning
 specifications for the Building or (b) for removal from the Premises and the Building of so much of any of Tenant's refuse or rubbish as shall exceed that ordinarily accumulated daily in ordinary office occupancy (it being understood that,
 without limitation, garbage or other waste from the Kitchen and/or any cafeteria, lunchroom or other food preparation and/or consumption facilities in the Premises are in excess of ordinary office occupancy). Landlord, its cleaning contractor and
 their employees shall have reasonable access to the Premises after Operating Hours and the reasonable use of light, power and water in the Premises as reasonably required for the purpose of cleaning the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Notwithstanding the foregoing, Tenant may elect, from time to time, to perform any or all of the cleaning services otherwise to be provided by Landlord pursuant to this Section II, using Tenant's employees or a
 cleaning contractor reasonably acceptable to Landlord, provided Tenant shall not be entitled to any abatement in Annual Fixed Rent or Additional Rent if Tenant so elects.

III. HEATING. VENTILATING. AIR CONDITIONING

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Landlord shall provide heat, ventilation and air-conditioning ("HVAC") to the Premises and hot water (or equivalent heat) for Tenant's heating system during Operating Hours on Operating Days consistent with the specifications set forth in
 Exhibit J attached to the Lease, but in any event sufficient to maintain a comfort level consistent with first-class office buildings, through local DX systems installed by Landlord on each floor of the Building and including cooling towers,
 pumps and associated equipment (collectively, sometimes referred to herein as the "Building HVAC System"), which Building HVAC System shall satisfy the minimum standards and specifications set forth on Exhibit J attached to the Lease. Tenant
 acknowledges that Tenant is solely responsible for the design of the HVAC system within the Premises and the adequacy of such system to distribute HVAC therein, and no approval by Landlord of any proposed or final plans for such work shall
 constitute a representation or warranty by Landlord that such system will function to achieve its intended purpose. Tenant at all times shall cooperate fully with Landlord and shall abide by the reasonable regulations and requirements which
 Landlord may prescribe for the proper functioning and protection of the Building HVAC System.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. If Tenant shall require heating, ventilation or air-conditioning service at other than during Operating Hours and/or on Operating Days (collectively "Overtime Service") Landlord shall furnish such Overtime Service upon reasonable advance notice
 from Tenant, and Tenant shall pay promptly following written demand Landlord's standard hourly charge therefor, which is currently (1) $120.00 per hour for each floor of the Office Premises receiving such Overtime Service and (2) $60.00 per hour
 for the Mezzanine Premises receiving such Overtime Service (which rates shall be increased annually by a percentage equal to the percentage increase in the CPI; provided, however, (1) in no event shall such rate be decreased if there is a
 percentage decrease in CPI); it being agreed that the Mezzanine Premises shall be deemed to constitute a single "floor" for purposes of this sentence and (2) to the extent that any of Landlord's costs of providing such Overtime Service are
 attributable to the provision of such Overtime Service to both Tenant and another tenant or occupant of the Building in the same zone serviced by the HVAC system and such other tenant or occupant of the Building requested (or are receiving same
 based on a bulk rate request) such Overtime Services, Tenant shall only be responsible for its pro rata share (determined based on the RSF of the tenants or occupants (including Tenant) requesting such Overtime Service) of such costs.
 Notwithstanding the foregoing, it is contemplated that Landlord and Tenant may agree, in their respective sole discretion, for the provision, from time to time, of Overtime Service on a bulk rate basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Tenant acknowledges that the use of the Premises, or any part thereof, in a manner exceeding the design categories (including occupancy and connected electrical load) specified below, or the rearrangement of
 partitioning which interferes with the normal operation of the Building HVAC system in or servicing the Premises, may require changes in said Building HVAC system (including, without limitation, the installation of supplementary HVAC systems in
 the Premises). Such changes, if required as aforesaid and approved by Landlord, shall be made by Tenant at its expense as Alterations pursuant to Article 8 of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Tenant shall be permitted, subject to Landlord's reasonable approval of plans therefor, to install a new supplemental air-conditioning system in the Premises designed to be hooked up to and to run off the Building
 condenser water system. If such plans are approved, installation and operation of such system shall be at Tenant's expense and performed in accordance with Article 8 of the Lease and, if performed as part of Tenant's Work, the Work Letter, and
 shall be subject to payment of the fees specified herein. Landlord shall make available 50 tons of condenser water per floor (or partial floor as applicable) of the Office Premises. Tenant shall pay an annual fee (the "Condenser Water Fee") to
 Landlord for such condenser water at the rate of $500 per reserved ton, per annum (which rate shall be increased annually by a percentage equal to the percentage increase in the CPI; provided, however, in no event shall such rate be decreased if
 there is a percentage decrease in CPI). In order to obtain such condenser water, Tenant shall either use the taps installed by Landlord in the condenser water risers serving the Premises or design and install its own taps subject to the terms of
 Article 8 of the Lease and, if applicable, the Work Letter or as otherwise expressly set forth on Exhibit I and Exhibit J. Tenant shall, at Tenant's sole expense (1) maintain a commercially reasonable service and maintenance contract for all
 supplemental air conditioning units serving the Premises with a vendor approved by Landlord (which approval shall not be unreasonably withheld or delayed) throughout the Term and (2) provide a copy of such agreement to Landlord upon request.

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IV. WATER

Landlord shall furnish at its expense hot (i.e., 120°F) and cold water at temperatures supplied by the City of New York water mains for drinking, lavatory, pantry and cleaning purposes only and at valved outlets at such capacity as may be required for Tenant's intended use (consistent with the Permitted Use) . If Tenant uses water for any other purposes, Landlord may install a meter or meters to measure the water supplied to any kitchen (including dishwashing) and dining or other areas in the Premises, in which case Tenant shall, upon Landlord's request, reimburse Landlord for the cost of such meter or meters, the installation thereof, the maintenance of such equipment, and the cost of the water consumed in such areas and the sewer use charges resulting therefrom. Landlord shall not be responsible to heat any water provided to the Premises.

V. ELEVATORS

Landlord, at its expense, shall provide passenger and freight elevator service in accordance with the specifications set forth on Exhibit CC attached hereto and made a part hereof from the basement of the Building to the Building lobby and the Premises during Operating Hours on Operating Days and shall have at least one passenger elevator subject to call at all times. Landlord, at its expense, shall also provide non-exclusive freight elevator service during non-Operating Hours on Operating Days, on a first-come basis. If Tenant shall require exclusive freight elevator service or more than one passenger elevator other than during Operating Hours and/or other than on Operating Days, Landlord shall furnish said service upon reasonable advance notice from Tenant, and, Tenant shall pay to Landlord on demand Landlord's standard charges therefor, which is currently $150.00 per hour with a four (4) hour minimum for non-Operating Days and one (1) hour minimum for Operating Days.

VI. ELECTRICITY

Electrical service to the Office Premises shall be sufficient to provide twelve (12) watts per net rentable square foot demand load exclusive of the Building HVAC System, which shall be provided and billed pursuant to and in accordance with the Lease. Landlord shall also provide electrical service to the Mezzanine Premises as expressly set forth on Exhibit I and Exhibit J, which shall be provided at no additional cost to Tenant.

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VII. SHUTTLE BUS

At no additional rent to Tenant, Landlord shall provide shuttle service free of charge to individual passengers employed by Tenant or other permitted occupants of the Premises (and the Building) and, from time to time, to Tenant's agents and invitees to and from Pennsylvania Station, Port Authority, the Columbus Circle subway station and Grand Central Station, and possibly other locations to be agreed upon, on Operating Days, from 7:00AM to 9:30AM each morning and 4:30PM to 7:00PM each evening (and at such other times to be agreed upon) and running as many vehicles and as often as reasonably practicable to minimize wait times to board any such vehicle (and in any event such wait times to board such vehicles shall be less than fifteen (15) minutes during such morning and evening hours), and using vehicles commensurate with a First Class Building. Landlord hereby acknowledges that Tenant may request for Landlord to provide shuttle service to Tenant's employees, agents and/or invitees for additional hours and Landlord will agree to provide such additional hours of service subject to the payment by Tenant of all of Landlord's reasonable incremental additional costs and expenses to provide such additional hours of service.

VIII. BUILDING SECURITY SERVICES

Landlord shall arrange for security personnel to staff the Building at all times, twenty-four (24) hours per day, seven (7) days per week and in a manner that is consistent with the security provided by landlords of first-class office buildings in midtown Manhattan, including, without limitation, the stationing of security personnel at the lobby to the Building. Tenant acknowledges that (x) Landlord, in agreeing to arrange for such security personnel, does not ensure the security of the Building, and (y) accordingly, Tenant remains responsible for making the Alterations in, and adopting procedures for, the Premises that Tenant considers adequate to provide for Tenant's security. Subject to the terms of Article 8 of the Lease, Tenant shall have the right to install an internal security system for all portions of the Premises. To the extent required for entry to the Building, Tenant will be provided key cards for Landlord's Building security system for all of its employees without charge, which shall be capable of being deactivated immediately at the request of Tenant. Landlord shall cooperate with Tenant from time to time so that Tenant can make arrangements for Tenant's internal security system for the Premises to correspond with Landlord's visitor security management system in the lobby of the Building so that one (1) card key may be used to gain access through both systems. Landlord shall provide lobby desk reception services at the Building's lobby reception desk to direct Tenant's visitors to the Premises. Subject to Landlord's obligation to cooperate pursuant to the terms hereof, Landlord shall install turnstiles and any other building security system that is then being installed in first-class office buildings in midtown Manhattan. Landlord shall not be liable, and Tenant hereby releases Landlord from any and all liability for injury or damage to the person or property of Tenant, Tenant's agents, servants, employees, contractors or invitees caused by or resulting from theft, illegal entry or trespass, vandalism or any other similar cause except if caused by the gross negligence or willful misconduct of Landlord or Landlord's employees, contractors or agents. Landlord assumes no special or other duty to safeguard Tenant's person or property, and, except as otherwise expressly set forth herein, Tenant acknowledges that Landlord has not undertaken, and shall be under no obligation, to provide security devices, systems, guards or other personnel in order to safeguard the person or property of Tenant, its agents, servants, employees, contractors and invitees. Tenant further acknowledges that all personnel employed by or on behalf of Landlord at the Building, regardless of the capacity in which they are employed, have been hired solely to accommodate the needs of the office space tenants of the Building and shall have no obligation whatsoever to Tenant, its agents, servants, employees, contractors and invitees. The Building's security system shall provide for certain specifications set forth on Exhibit DD attached hereto and made a part hereof.

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<u>SCHEDULE 1 TO EXHIBIT D</u>

<u>GENERAL CLEANING SPECIFICATIONS</u>

<u>Intentionally Omitted</u>

Sch 1-1

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<u>EXHIBIT E</u>

<u>RULES AND REGULATIONS</u>

**In the event of any conflict between any provisions in the Lease and these Rules and Regulations, the provisions set forth in the Lease shall control.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sidewalks, entrances, passages, courts, elevators, public vestibules, corridors and halls of or appurtenant to the Building, as the case may be, shall not be obstructed or encumbered by Tenant or used for any purpose other than ingress and egress to and from the Premises and for delivery of merchandise and equipment in prompt and efficient manner, using elevators and passageways designated for such delivery by Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No awnings, air-conditioning units, fans or other projections shall be attached to or project through the outside walls or windows of the Building, excluding the License Area. No curtains, blinds, shades or screens, other than those which conform to the Alteration Rules & Regulations & Design Guidelines annexed to the Lease, shall be attached to or hung in, or used in connection with, any window or door of the Premises, without the prior written consent of Landlord not to be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing, but subject to the provisions of the Lease, Tenant, at its sole cost and expense, shall be permitted to install so called "black-out" shades in its conference rooms. All electrical fixtures hung in offices or spaces along the perimeter of the Premises must conform to such Alteration Rules & Regulations & Design Guidelines or otherwise be of a quality, type, design and bulb color approved by Landlord, such approval not to be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except to the extent permitted by the Lease or required by legal requirements, no sign, advertisement, notice or other lettering shall be exhibited, inscribed, painted or affixed by Tenant on any part of the outside of the Premises or Building or on the inside of the Premises if the same can be seen from the outside of the Premises without the prior written consent of Landlord except that the name of Tenant may appear on the entrance door of the Premises subject to Landlord's reasonable approval of the size, style, color and manner in which such name is displayed. In the event of the violation of the foregoing by Tenant, if Tenant has refused to remove same after reasonable notice from Landlord, Landlord may remove same without any liability, and may charge the expense incurred by such removal to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant shall not permanently cover or obstruct the exterior windows that reflect or admit light into the Premises except as may be required by applicable legal requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No showcases or other articles shall be put in front of or affixed to any part of the exterior of the Building (excluding the License Area), nor placed in the halls, corridors or vestibules, nor shall any article obstruct any air-conditioning supply or exhaust without the prior written consent of Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The water and wash closets and other plumbing fixtures shall not be used for any purposes other than those for which they were constructed, and no sweepings, rubbish, rags, acids or other substances shall be deposited therein. All expenses resulting from stoppages or other damages resulting from any misuse of such fixtures shall be borne by Tenant unless caused by a Landlord Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise approved by Landlord or as otherwise permitted in accordance with the provisions of the Lease, Tenant shall not mark, paint, drill into, or in any way deface any part of the Premises or the Building, and no boring, cutting or stringing of wires shall be permitted, except with the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intentionally omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intentionally omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant, or any of Tenant's servants, employees, agents, sublessees, visitors or licensees, shall not at any time bring or keep upon the Premises any inflammable, combustible or explosive fluid, chemical or Hazardous Substance, except as expressly permitted by the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No additional locks or bolts of any kind shall be placed upon any of the doors or windows by Tenant, nor shall any changes be made in existing locks or the mechanism thereof, unless Tenant promptly provides Landlord with the key or combination thereto (except with respect to security areas). Notwithstanding the foregoing, subject to the applicable provisions of the Lease, Tenant, at its sole cost and expense, shall have the right to install a card key or other electronic or other entry system for the Premises; provided that at all times Tenant has provided Landlord with such master card keys or other "master" access rights for such card key or other electronic or other entry system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No bicycles, vehicles or animals of any kind except for service animals permitted subject to and in accordance with applicable legal requirements shall be brought into or kept by Tenant in or about the Premises or the Building (excluding, with respect to vehicles and bicycles, the Building garage and bicycle storage area(s), respectively), provided (i) Tenant may bring bicycles into the Premises via the loading dock and freight elevator during Operating Hours in accordance with applicable legal requirements, including, without limitation, the New York City Bicycle Access to Office Buildings Law, and (ii) that Landlord shall comply with all applicable laws and regulations of public authorities regarding bicycle access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All removals, or the carrying in or out of any safes, freight, furniture or bulky matter of any description, must take place in the manner and during the hours which Landlord or its agent reasonably may determine from time to time. Unless Landlord grants prior approval, Tenant shall not be permitted to perform any of the foregoing during Operating Hours on Operating Days (as defined in Exhibit D to the Lease). Landlord reserves the right to inspect all safes, freight or other bulky articles to be brought into the Building and to exclude from the Building all safes, freight or other bulky articles which violate any of these Rules and Regulations or the Lease of which these Rules and Regulations are a part. Landlord shall have the right to prescribe the weight and position of safes and other objects of excessive weight, and no safe or other object whose weight exceeds the lawful load for the area upon which it would stand shall be brought into or kept upon the Premises. If, in the judgment of Landlord, it is necessary to distribute the concentrated weight of any heavy object, the work involved in such distribution shall be done at the expense of Tenant and in such manner as Landlord shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall not occupy or permit any portion of the Premises demised to it to be occupied as an office for a public stenographer or typist, or for the possession, storage, manufacture or sale of liquor, narcotics or drugs, or as a barber or manicure shop, or as an employment bureau. Tenant shall not engage or pay any employees on the Premises, except those actually working for Tenant at the Premises, nor advertise for labor giving an address at the Premises.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intentionally omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord shall have the right to prohibit any advertising by Tenant which refers to the Building, which, in Landlord's reasonable opinion, tends to impair the reputation of the Building or its desirability as a building for offices, and upon written notice from Landlord, Tenant shall refrain from or discontinue such advertising.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord reserves the right to exclude from the Building other than during Operating Hours on Operating Days all persons who do not present a pass to the Building signed or approved by Landlord and may require all persons admitted to or leaving the Building outside of such times to register. Tenant shall be responsible for all persons for whom a pass shall be issued at the request of Tenant and shall be liable to Landlord for all acts of such persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall, at its expense, provide artificial light for the employees of Landlord while doing janitor service or other cleaning, and in making repairs or alterations in the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The requirements of Tenant will be attended to only upon written application at the office of the Building. Building employees shall not perform any work or do anything outside of the regular duties, unless under special instructions from the office of Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Canvassing, soliciting and peddling in the Building is prohibited and Tenant shall reasonably co-operate to prevent the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall use commercially reasonable efforts to prevent the use in any space, or in the public halls of the Building, either by Tenant or by jobbers or others in the delivery or receipt of merchandise, of any hand trucks except those equipped with rubber tires and side guards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall not install or permit the installation or use of any food, beverage, cigarette, cigar or stamp dispensing machine other than for the exclusive use of Tenant's employees and invitees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other than to the extent reasonably required during for temporary periods, Tenant shall keep the entrance door to the Premises closed at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any person whose presence in the Building at any time shall, in the judgment of the Landlord, be prejudicial to the safety, character, reputation and interests of the Building or of its tenants may be denied access to the Building or may be ejected therefrom. In case of invasion, riot, public excitement or other commotion, the Landlord may prevent all access to the Building during the continuance of the same, by closing the doors or otherwise, for the safety of the tenants and protection of property in the Building. The Landlord may require any person leaving the Building with any package or other object to exhibit a pass from the tenant from whose premises the package or object is being removed, but the establishment and enforcement of such requirement shall not impose any responsibility on the Landlord for the protection of any tenant against the removal of property from the premises of the tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Smoking is prohibited at all times throughout the Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord may from time to time adopt additional systems and procedures to improve the security or safety of the Building, any persons occupying, using or entering the same, or any equipment, finishings or contents thereof, and Tenant shall, at no cost to Tenant, comply with Landlord's reasonable requirements relative thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Excluding full-time employees of Tenant that provide cleaning to the Premises, Tenant shall neither contract for, nor employ, any labor in connection with the maintenance or cleaning of, or providing of any other services to, the Premises (other than Tenant's Property) without the prior consent of Landlord which consent shall not be unreasonably withheld, conditioned or delayed. It shall be reasonable for Landlord to withhold any such consent on the ground that use of such service provider would disrupt labor harmony, security or operations in the Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall not permit the consumption of alcoholic beverages by Tenant Parties in any public, common or reception areas of the Building outside of the Premises except (i) in commercial establishments properly licensed to serve such beverages and (ii) during receptions or other events that may be held in any public, common or reception areas of the Building that may be hosted, sponsored or permitted by Landlord and, in any event, in accordance with all applicable legal requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intentionally omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to the terms and conditions set forth in Exhibit D, Tenant shall store all it trash and garbage within its premises, Tenant shall not place in any trash box or receptacles any material which cannot be disposed of in the ordinary and customary manner of trash and garbage disposal and all garbage and refuse disposal shall be made in accordance with reasonable directions issued from time to time by Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall not use the name of the Building in connection with or in promoting or advertising the business of Tenant except as Tenant's address.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord may waive any one or more of these Rules and Regulations for the benefit of any particular tenant or tenants, but no such waivers by Landlord shall be construed as a waiver of such Rules and Regulations in favor of any tenant, nor prevent Landlord from thereafter enforcing any such Rules and Regulations against any or all of the tenants of the Building; provided, however, no such waiver shall materially adversely affect any of Tenant's rights or remedies under the Lease and Landlord shall not enforce these Rules and Regulations against Tenant in a discriminatory manner, except with respect to the License Area (which is specific to Tenant); provided, further, that any such waiver in favor of any other tenant shall automatically be deemed a waiver in favor of Tenant. These Rules and Regulations shall not be construed to impose upon Landlord any duty or obligation to enforce the Rules and Regulations or the terms, covenants or conditions in the lease against any tenant and Landlord shall not be liable to Tenant for violation of the same by tenant, its servants, employees, agents, contractors, visitors, invitees or licensees; provided, however, Landlord remains bound by Landlord's obligations as expressly set forth in the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall be responsible for the observance of all the foregoing rules by Tenant's, employees, agents, clients, customers, invitees and guests.

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<u>EXHIBIT F</u>

<u>ALTERATION RULES & REGULATIONS & DESIGN GUIDELINES</u>

ANY CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF THIS EXHIBIT E-2 AND THE PROVISIONS OF LEASE SHALL BE RESOLVED IN FAVOR OF THE LEASE.

**<u>INTRODUCTION</u>**

Landlord has made every effort to keep this list of rules and regulations as brief as possible. Therefore, we can assure you that each requirement has been carefully thought out and has been included here as a result of experiences at various properties.

We look forward to working with you on many successful projects, however, we ask that you keep the following in mind at all times:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; You are to provide our invitees with responsive, consistent, quality service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; You are to avoid disturbing the other tenants, and/or building operations to the maximum extent possible

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The rules and requirements must be adhered to and will be strictly enforced. Contractors on the approved vendor list are expected to be fully knowledgeable of all Building Rules and Regulations. All other contractors are expected to familiarize themselves with these documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ignorance of these documents will not be accepted as an excuse for non-compliance. Contractors found to be in violation of the Building Rules and Regulations shall immediately correct, or pay to have corrected, such violations. Repeat violators will be removed from the approved contractors list for all properties and will have their privileges of working in our properties rescinded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Your general conditions shall include costs of cleaning, restoring and/or repairing any common areas or base building equipment soiled or damaged as a result of your work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As applicable, whenever possible and any such descriptives are at the sole description of the chief engineer.

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**<u>GENERAL REQUIREMENTS</u>**

NOTWITHSTANDING ANYTHING CONTAINED IN THIS EXHIBIT E-2, AT ALL TIMES TENANT SHALL PERFORM ALL WORK IN THE BUILDING AND PREMISES IN COMPLIANCE WITH ALL THEN-APPLICABLE LAWS, RULES, REGULATIONS AND CODES.

**Preliminary**

The following must be submitted to the Landlord's office not later than two weeks prior to the start of work:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; An application for Building Permit must be obtained for the project and presented to the Landlord for sign off. In order to expedite projects, Landlord may agree to sign off on a separate Demolition Permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certificates of Insurance, as further described in the various <u>Building Design Guidelines and Construction Specifications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Certificate of Insurance must show following coverage: Commercial General Liability Insurance with a Broad Form General Liability Endorsement applicable to the Premises, All Risks of Physical Loss Insurance and Workers Compensation Insurance, as well as Automobile Liability, for any vehicles to be used in conjunction with construction at the site. See Appendix I for <u>Requirements for Certificates of Insurance.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A list of proposed subcontractors, for Landlord approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Phasing plans for any occupied tenant spaces or, spaces which are to become occupied, as construction progresses. Each phase shall clearly delineate exit corridors, means of egress, and access to elevators, and toilets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A letter, from Tenant authorizing the contractor to incur building service charges, on their behalf, with authorized signatory. Otherwise, contractor will be billed directly for elevator charges, shutdowns, fire watch, standby engineer, et cetera. Tenant and their contractors must utilize Landlord's work order system.

**Indemnity**

Contractor agrees to indemnify and hold harmless and defend the owner of the Building, owner of the fee, the managing agents, and employees of the foregoing and all mortgagees against any and all claims, suits, losses or expenses by reason of any liability arising out of or in consequence of the performance of the Contract (and/or imposed by law, by any and all of them) because of personal injury including death at any time resulting therefrom sustained by one person or persons to property which are due to, or claimed to be due to, the negligence of the Contractor, owner of the building, owner of the fee, managing agent and employees of all the foregoing and any and all mortgagees or on account of or in any way growing out of utilization of Management's equipment and/or materials

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**Conduct/Supervision**

Contractor shall examine the site. No claims for pre-existing damage to project area, common areas, or neighboring tenant spaces will be considered unless contractor has advised building management of same, in writing, prior to entering the space for purposes of construction/demolition.

All personnel engaged by the Contractor to perform any service at the above mentioned properties shall have the ability to perform the services as defined and respond quickly to emergencies.

The successful Bidder shall employ a full-time Superintendent (Super), dedicated to this project, who shall be responsible for all the Work performed at the Project Site, and who shall be present, on site, whenever work is being performed. They shall also employ a full-time laborer to maintain this work area and all adjoining spaces in a clean and orderly condition.

Contractor shall ensure that it, and its Subcontractors, and all their employees abide by all safety and other rules and regulations which may be promulgated from time-to-time by the Landlord, including, but not limited to, all Federal, State and local government agencies, as they pertain to the Contractor's operations.

Inspection of the premises of said operations shall be conducted by the Contractor's Super daily to assure the satisfactory performance of the work and shall be considered a condition of their working in the portfolio.

Contractor shall promptly pay all taxes levied against its payroll by City, State and Federal agencies and all building and other permit fees.

Contractor shall be responsible for the protection and safe custody of property and grounds owned by the Landlord.

Contractors are required to leave all work areas in a neat condition at the end of each workday in accordance with commercially reasonable standards.

Freight elevator service shall be available at all times on a reserved non-exclusive and first-come basis. Except as otherwise set forth in the Lease with regard to the period during which Tenant's Work is being performed, all contractor's employees must use freight elevators (to the extent applicable). Except as otherwise set forth in the Lease with regard to the period during which Tenant's Work is being performed, during business hours, these elevators (to the extent not exclusively serving the Premises pursuant to the Lease) are shared with other vendors for deliveries.

Contractors are hereby put on notice that under no circumstances is anything to be removed from any adjacent spaces within the property, for any reason, without written permission from the owner. The contractors in this regard are cautioned not to accept any verbal approvals to disconnect and/or remove any materials including, but not limited to, light fixtures, diffusers, registers and grilles, doors, hardware, bucks, thermostats, carpeting, etc.

The loud use of radios or tape/CD players ("boom boxes") is prohibited. Upon receipt of the first tenant complaint, management will issue one warning to the project superintendent. Upon any subsequent complaint(s), such devices will be banned from the project, and subject to confiscation regardless of whether or not the device is also a battery charger.

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Any and all meals/breaks must be taken in the construction site (unless it is in an existing tenant's suite) or off the property. Construction personnel are not to sit in common areas or lobby while taking their breaks. All food, along with all wrappers and all containers, MUST be disposed of in a dedicated receptacle, which must be removed, emptied and cleaned at the end of each workday.

All construction personnel must dress according to industry standard. This means no shorts or tank tops, and no T-shirts with foul language, or objectionable artwork printed on them.

Reasonable care must be taken at all times to avoid any personal injury or property damage.

All demolition, and other noisy work, shall be performed after hours (8:00 PM to 7:00 AM) or on weekends; provided, that, subject to Laws and applicable union contracts, the forgoing requirement shall not apply until the earlier to occur of (x) the completion of Tenant's Work or (y) the date any tenant (including Tenant) occupies a portion of the Building for the conduct of its business. Additional noise restrictions apply at those properties adjoining residential structures or hotels, or mixed-use properties.

Contractors shall not set up shop outside their particular tenant area. Should this area prove inadequate, Contractor shall contact building management who may assign an alternate "shop" area, if available. Contractor is responsible for cleaning of any areas, so assigned.

**Licensed Contractors/Permits/Regulations**

Contractors using these specifications <u>must comply with all Local, State and Federal laws and regulations</u>. Contractors must submit all necessary licenses upon request. Contractor shall be responsible for obtaining all approvals, permits, and inspections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All (Sub)Contractors must use licensed personnel where applicable and all personnel required to, must be registered with the State.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electrical demolition shall be performed by a licensed electrician. The same will apply to plumbing, sprinkler and HVAC. (See pre-construction.)

**Communication**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord is to be made a part of the transmittal process for all job meeting minutes, punch lists, punch list reconciliation lists and job schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contractor must provide a written job schedule at least 48 hours in advance of starting work and, must notify management at least 48 hours in advance when work is planned which must be done after hours, or requires a sprinkler or fire alarm shutdown, so that Security and Building Maintenance personnel can be given sufficient notice. In any event, Contractor must provide a two week look ahead schedule to Landlord. If an emergency occurs which necessitates after hours work, the Contractor MUST notify the Management Office in writing no later than 3:30 p.m. in order to obtain all necessary clearances. No drain downs or fire watch by separate person shall be required during Tenant's Work unless required by code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Project Superintendent shall be on site during regular working hours to receive notices and direction from Building Management and shall be available to Management, via telephone or pager, at all times in case of emergency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contractor is to furnish and maintain an updated project directory, containing contact names and addresses, phone, mobile, and fax numbers (as well as any other phone numbers necessary for 24 hr. access to contact) and e-mail addresses for all members of the project team, and Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Permit cards must be posted, conspicuously, in the workspace. Copies of all permits must be delivered to Landlord prior to the start of <u>any</u> work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; An original Temporary Certificate of Occupancy for the project shall be delivered to the Construction Manager, prior to Tenant's move-in. Any exceptions will be considered only upon <u>written permission</u> from the Building Department <u>and</u> the Fire Marshal.

**Building Standards**

All materials and installations shall be in accordance with the Repair and Maintenance Standards. Wherever the plans or specifications deviate from the Repair and Maintenance Standards, it shall be contractor's responsibility to bring this to the attention of the building management.

Core Boring

All floor penetrations for electrical/communication computer circuits and plumbing must be scheduled for at least 24 hours in advance and must be done after business hours subject to the affected Tenant(s) in Occupancy's convenience; provided, that, subject to Laws, and applicable union contracts, the after business hours requirement shall not apply until the completion of Tenant's Work, unless such floor penetrations shall affect any portion of the Building which is then occupied.

Contractor is responsible for thorough clean-up during and after each work period and for repair/replacement of any construction or finishes, in adjoining common, or tenant spaces, damaged as a result of this work. All tenants have the lease given right to "quiet enjoyment" of their space and this will not be intentionally violated. There will be no exception to this pre-scheduling requirement except for bona fide emergencies or as otherwise described above.

Contractors are absolutely prohibited from storing or discarding materials in the ceiling cavity.

Existing obsolete cores shall be patched with galvanized steel of gage and profile matching existing metal deck, and grouted and sealed flush with slab and must meet all State and Local government and NFPA fire codes.

At formed slabs, patch plates shall be tie wired to pencil rods let into the surface of the slab.

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PRE-CONSTRUCTION

**Pre-Construction Meeting**

A pre-construction meeting must be held before work can begin on the project. Contractor must sign off on Common Areas, noting any damage prior to start of construction. Contractor will be held liable for any damage, not so noted, upon completion of construction.

Regular weekly job meetings shall be held and scheduled such that members of Landlord's team have an opportunity to attend; provided, however, so long as Landlord is given advance notice of such meetings, such meetings may be scheduled at times during normal business hours that Contractor so chooses.

**Demolition**

All electrical and mechanical demolition, in conjunction with architectural demolition, must be done by licensed contractors. The architectural demolition requirements must be clearly identified on electrical, mechanical and plumbing drawings. The owner will not allow demolition to proceed without verification that licensed electrical and mechanical contractors have been employed for this phase of the work. Complete demolition without involvement of all trades (as required) will not be tolerated, and the owner bears no responsibility for damage or injury resulting therefrom. Also see sprinkler and fire alarm shutdown requirements.

**List of Subcontractors**

A list of all proposed subcontractors from the approved vendor list shall be submitted to the Building Management office for approval before the commencement of any construction. This list should include name, phone number and principal contact with 24-hr number.

**Demolition/Construction Approval**

Absolutely no demolition or construction may begin without prior to Building Management's approval of the demolition plan and a 48 hour advance notice as previously described.

**Protection**

In order to protect adjoining common and tenant spaces on multi-tenanted floors, contractor shall construct one hour rated demising partitions, with temporary doors of appropriate rating, as required for access and/or egress. These partitions shall be in place prior to start of construction or demolition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contractor shall be responsible for protection of all building controls and systems as well as covering of all adjacent areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contractor shall be responsible to restore all life safety systems (i.e. Class "E" and temporary sprinkler loop).

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BUILDING OPERATION

**Loading Dock/ Freight Elevator**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All construction personnel must use the freight elevator at all times. The loading dock and freight elevators are available for use normally Monday through Friday, 8:00 a.m. to 6:00 p.m. Use of these facilities at times other than these normal hours can be arranged by contacting the Building Management office. In those cases where extended use of the loading dock and/or freight elevator is necessary, coordination in advance must be made with the Building Management office. During normal business hours the freight elevator must be available to delivery and other trades.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Freight elevator may not be available from time to time, after hours, in order to perform regular maintenance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contractor may be responsible for cleaning or elevator sensors, equipment and shaftways.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loading dock is for loading and unloading only. Parking for oversized vehicles is strictly subject to availability and may be rescinded at any time. All vehicles parked in the loading dock must display the owner's name and location in the complex. Violators may be towed at their own expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No more than one trailer for material delivery will be allowed at the loading dock at any one time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No more than one dumpster will be allowed at the loading dock, at any one time, during normal building hours. All dumpsters must be emptied in a timely manner and the surrounding area must be kept clean at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Where applicable, contractor's cleaning and repair requirements shall extend to freight corridors and vestibules.

Notwithstanding the foregoing requirements set forth in this Loading Dock/Freight Elevator section but subject to Laws, and applicable union contracts, to the extent there is any conflict or inconsistency between the requirements set forth in this Section and the terms and conditions set forth elsewhere in the Lease regarding the use of the loading dock and freight elevators during the performance of Tenant's Work (but no later than the date any tenant (including Tenant) occupies a portion of the Building for the conduct of its business), the terms and conditions set forth elsewhere in the Lease shall govern.

**Bathroom Facilities**

Workmen shall use only those bathroom facilities made available by Building Management. Bathrooms are not to be used for cleanup of tools and equipment. The disposal of caustic or any prohibited materials in the building's drain system is expressly forbidden.

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**Protection of Premises**

Contractor shall protect all routes over finished floors with a minimum ¼ tempered hardboard underlayment runway, which is to be picked up at the close of work each day. The elevator is to be padded. Protection for heavier loads must be submitted to and approved by the property.

**Signage**

Appropriate warning signs are to be posted in all public corridors and lobbies used.

**Staging Material**

Temporary staging of material and equipment in public areas or other than the job site is not permitted.

**Cleanup**

All areas traveled are to be broom cleaned at the close of each day (other than elevators and other common areas). Debris is to be carried from the car, NOT across the door opening.

**Construction Debris**

Contractors shall not leave construction debris in garages or any common areas. If they do, Landlord will discard such debris at the Contractor's expense.

**Tools and Equipment**

Building engineers are not authorized to loan out tools, ladders, etc. to anyone. Contractors must provide their own tools and equipment.

**Passenger Elevator**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Passenger elevator shall not be used by construction personnel at any time without specific Landlord permission; provided, however, the preceding shall not apply until the earlier to occur of (x) the completion of Tenant's Work or (y) the date any tenant (including Tenant) occupies a portion of the Building for the conduct of its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In cases where passenger and freight cars are in communicating shaftways, freight elevator cleaning requirements may extend to passenger elevators, unless such passenger elevators are used by third parties other than Contractor (or subcontractors) with Landlord's consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The load limit of 3,000 pounds in the passenger elevator is NOT to be exceeded.

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**Dollies and Carts**

Only rubber- wheeled dollies and carts, in good operating condition, may be used. All oil or grease must be removed from wheels to prevent staining flooring.

**Disturbance of Premises**

All efforts must be taken not to disturb the normal flow of traffic within the building and its premises or create any disruption in the tenant's daily business operation.

**Harmony with other building operations**

The General Contractor must utilize labor and all subcontractors that will work in harmony with other labor in the building.

**<u>Riser Management</u>**

The Use of all horizontal and vertical building penetrations/routing throughout the common areas of the building including electrical closets, mechanical rooms and spaces & utility shafts should be under the sole control and discretion of the building chief engineer. Contractors shall be held responsible and liable for restoration of any fire rated construction or fire stopping.

All race ways running from floor to floor, through common areas or adjacent Tenant spaces shall be clearly labeled at each floor or space throughout its run.

HVAC

**Protecting the System**

Base building core HVAC thermostats, as well as any perimeter or supplementary system thermostats, must be removed carefully with the respective HVAC system deactivated. HVAC systems will not be allowed to be used while these thermostats are not permanently mounted as this can cause severe damage to the system. The tenant and his representative will be held liable by the owner for any such damage. Notwithstanding the above, this Section shall not be applicable until the completion of Tenant's Work.

**Filter Material**

General Contractor is responsible for installing filter media for all existing HVAC systems used during the construction period. All return air openings are to be protected with bulk filter media. Replace all media on a timely basis during this period so as to maintain a clean system. Failure to do so will result in the contractor having to clean the equipment and duct distribution systems. All equipment not being utilized within the construction area, such as console heat pumps, must be covered and protected from dirt and debris before starting any work. Landlord shall provide a central system for such filtering.

**HVAC Connections/Balancing**

Any HVAC connections or any shutting of valves, startup and testing of equipment (water treatment must be performed by applicable vendor), in the tenant's space must be done after hours or on weekends, under the supervision of the building engineer. Building must approve balancing vendor. Air and water balance reports must be submitted upon completion of any work. All pipe connections are to be brazed. The use of silver bearing solder is prohibited. Notwithstanding the above, this Section shall not be applicable until the completion of Tenant's Work. Further, Landlord shall be responsible for the operation and maintenance and repair of all base building valves.

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**Start-up**

Before the condenser system is filled, cleaned, flushed, pressure tested and charged with chemicals the contractor must receive approval from the Construction Manager, and the Senior or Chief Engineer must be on the job site, at no cost to tenant.

**BMS/EMS Tie-in**

All new equipment, including supplemental HVAC, shall be compatible with, and tied into, the Energy Management System (EMS). All wiring shall be performed by personnel with applicable licenses. All terminations and tie-ins to be performed by applicable vendor.

All existing equipment controls shall, at tenant's option, be upgraded to be made compatible with building EMS/BMS system.

ELECTRICAL

**Panel Schedule**

Provide <u>complete, typed, detailed electrical panel schedules</u> showing individual circuits by number, devices connected and <u>connected load in kW</u>. Pre-existing circuit assignments may be shown in red. Panel schedules are to be mounted on the panel door –1/4 x 1/2 truss headscrew with center line #80911 & Stopnut on EQ ticket holder.

**Phase Balance Report**

Provide <u>phase balance report</u> when applicable, approved by the engineer, to the owner, upon completion of the work.

**Grounding**

Any grounding to the house piping system is <u>PROHIBITED</u>. Building structure steel grounding must be approved by the chief engineer.

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**Work in Adjacent Tenant Space**

All electrical, plumbing or other work to be performed in tenant ceiling below workspace must be scheduled with Building Management, for at least <u>48 hours</u> in advance and performed during <u>non-business hours</u> subject to that tenant's convenience. Contractor is responsible for <u>thorough clean-up during and after each work period</u> and for repair/replacement of any construction or finishes damaged as a result of this work.

All underslab wiring shall be run in conduit, tight to the slab, and clearly identified as belonging to the tenant. BX cable is permitted.

**Telephones/Data**

No exposed telephone wiring will be allowed in tenant space. All data and communication wiring shall be performed by a contractor holding valid low voltage license from the State of New York.

INTERIOR FINISHES

**Finishes**

All existing finishes in <u>common corridor</u> and adjacent tenant spaces must be restored and match existing finishes to the owner's satisfaction. Failure to comply may result in the owner's performance of corrective work, and cost for same will be <u>invoiced to the General Contractor</u> or Tenant.

Refer to individual building standards for specific materials and equipment.

**Class A Finishes**

All finishes must be <u>Class A/or Class One rated</u> and in accordance with all applicable codes.

**Hardware/Locks**

All locks must be keyed to base building grand master system.

**Painting/Spraying**

The use of sprayed on materials will require 24 hours advance notice with the Building Management office. All efforts will be made to perform spraying after hours and on weekends.

**Demised Walls**

All demising walls will be built by the Tenant's General Contractor at tenant cost.

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**Signage**

All signage must be coordinated and approved in advance with building management.

INSPECTIONS

a. Permit Inspections

Landlord shall be advised, in advance, of all building, and fire department inspections.

b. Other

For minor work, where permit is not required, Landlord shall be notified at each point in the construction process when an inspection would normally occur (framing, roughing, etc.).

PLUMBING

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Fittings

Lead free or silver solder permitted for domestic water. All fittings over ¾ are to be brazed, see building engineer for size limitations for threaded connections. No covered compression fittings, and then only immediately after service stop.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Other

All tape from building reseal subject to mandatory inspection of PRV's. Any work in toilets may (at chief's option) require replacement of components, etc.

For the most part all valves shall be at the discretion of the chief engineer- No Pro Flo Valves

Valve tag charts directions must conform to building color code. All MEP piping may require insulation and/or H/Watt

LIFE SAFETY

Prior to the start of demolition/construction, contractor arranges for a fire alarm shutdown, as previously described. House contractor shall then disconnect the affected devices and wire through the loop. Electrical contractor may then remove the devices for re-use or return to building stock.

Electrical contractor may pull wire, and provide back boxes however, Building vendor is to provide all devices, make all terminations, and perform all programming and testing, at Tenant's expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Fire Alarm System

The entire fire alarm system is to be tested prior to occupancy and a report certifying proper operation provided to the owner and approved by the architect of record. The owner's building engineer must be present during the test.

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It is the Contractor's responsibility to maintain the Class "E" system through demolition and construction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Sprinkler System

The sprinkler contractor must call Landlord 48 hours in advance before beginning work on the sprinkler system in order to obtain authorization from the Building Manager to drain the system. Except during Tenant's Work, unless Landlord determines a specific reason for its necessity, after completion of work each day, the sprinkler contractor must obtain authorization from the Building Manager or Building Engineer before refilling the system. The sprinkler system must be reactivated no later than 4:00 p.m. each day.

It is the Contractor's responsibility to maintain sprinkler coverage or provide a temporary loop.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. False Alarm

Should any contractor, through its negligence or intentional act, initiate or cause to be initiated a false alarm in the building, such contractor shall pay to the Owner of the building a false alarm fee in the amount of $500.00 per occurrence as reimbursement for the Owner's costs in connection with such false alarm. Additionally, any contractor initiating or causing to be initiated a false alarm, whether through such contractor's negligence or intentional act, such contractor shall also reimburse the Owner of the building for any and all fines, fees, assessment, levies or charges levied by any agency having jurisdiction, plus an administrative share of 10%. At the Owner's discretion, any contractor initiating or causing to be initiated a false alarm, whether through such contractors negligence or intentional act, shall be removed from the approved contractors' list and barred from performing work at any buildings owned by the Owner of the building or any affiliates of the Owner of the building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Smoke Detectors

The presence of duct or plenum smoke detectors and, the inability of some of the buildings to zone individual floors, require stringent rules regarding any smoke generating operations; provided, however, that nothing contained herein shall prohibit straight time welding and brazing during Tenant's Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Shut Down of the Core System

For full floor construction we will provide a shut down of the core system, when smoke-producing operations are underway.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Intentionally Omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Fire Watch

At all times, when fire alarm system is shut down, contractor shall engage a fire watch, from the Landlord; provided, however, although Contractor shall be required to maintain a fire watch at all times during Tenant's Work when appropriate, such fire watch need not be solely dedicated to such function during Tenant's Work only.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Contractor's Liabilities

Nothing in the preceding four paragraphs shall be taken as reducing or eliminating contractor's liabilities as stated in paragraph (d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Site Safety

Refer to <u>Landlord's Site Safety Requirements</u> for additional information.

POST CONSTRUCTION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Review of Installation

Review of entire installation for conformance to code, building requirements and good practice with particular emphasis on fire/life safety systems such as night/emergency lighting, fire alarm annunciation, pull stations, fire alarm interlocks, exit lighting, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Inspections of the Certificate of Occupancy

A copy of the Temporary Certificate of Occupancy must be submitted to the Management Office before occupancy can begin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Cleaning of Base Building Equipment and Spaces

All base building equipment and spaces must be thoroughly cleaned and serviced, prior to startup, including but not limited to:

Core HVAC units

Perimeter heat pumps / convectors / induction units

Mechanical and Electrical closets

Core toilet rooms

Janitors closets, including flushing, dropping and reinstalling/replacing traps (subject to inspection by the landlord).

Fire stairwells

Freight elevators

Freight vestibules and corridors

PROJECT CLOSE-OUT

Tenant will use commercially reasonable efforts to ensure that within 30 days of occupancy, Contractor shall submit to Management:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. As-Built Drawings

Design drawings, updated by design professional to reflect actual field changes, in the latest version of AutoCAD burned to a CD, clearly labeled as such, dated, and bearing the contractor's name and signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Air and Water Balancing Reports

Air and water balancing reports. These reports MUST BE APPROVED BY THE DESIGN MEP ENGINEER PRIOR TO TRANSMITTING TO OWNER.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Electrical Panel Schedules

Typed electrical panel schedule(s) (this in addition to typed schedules installed in panels.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Electrical Panel Phase Balancing Reports

Electrical panel phase balancing report (electrical contractor.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. HVAC Tag Lists and Charts

HVAC/plumbing valve tag list and charts under glass (if piping was part of project.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Operations and Maintenance Manuals

Operation and maintenance manuals for all equipment installed (i.e. extra HVAC systems, hot water heaters, controls, pumps, electrical equipment, etc.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Affidavit

An affidavit of completion, signed by the project architect. Also, a signed affidavit of punchlist completion from the architect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Testing & Inspections

Originals of all required certificates of approval, sign offs and inspections.

**REQUEST FOR PAYMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Invoice Requirements/Documentation

The Contractor must submit invoices on AIA G702 and must be authorized and signed by the Architect on that project. The completed Lien Waiver form must be attached to the AIA G702 identifying the legal ownership entity of the property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Submitting Invoices

Invoices shall be submitted in accordance with <u>Article 3</u> of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Final Payment

Except as otherwise provided in <u>Article 3</u> of the Lease with respect to the Allowance, Certificate of Occupancy, completion of all Punchlist items, receipt of all close-out Documentation and Final Release of Lien from Contractor and all Subcontractors specifying the ownership entity, shall be the conditions for release of Final Payment.

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**APPENDIX I - REQUIREMENTS FOR CERTIFICATES OF INSURANCE** 

All contractors, and subcontractors (including moving contractors), performing work in the Building, must submit a certificate of insurance naming the appropriate ownership of the building(s) where work is being performed **as Additional Insured:**

**GEORGETOWN ELEVENTH AVENUE OWNERS, LLC;**

**THE GEORGETOWN COMPANY;**

**CBRE, INC.; and**

**787 ELEVENTH FUNDING LLC,**

and each of their respective agents, managers, members, partners, employees, officers, directors, shareholders, lenders, successors and assigns.

The certificate MUST show the NAME OF THE TENANT and floor number where the work will be performed, or in the case of general services, the type of service to be performed.

**All certificates must show the name of each of the entities noted above as Additional Insureds (or any successor entities as provided by Landlord) as Certificate Holder and should be sent to the attention of Landlord.**

The certificate must show the following coverage:

The Contractor shall purchase from and maintain in a company or companies lawfully authorized to do business in the jurisdiction in which the Project is located insurance for protection from claims under workers' or workmen's compensation acts and other employee benefit acts which are applicable, claims for damages because of bodily injury, including death, and from claims for damages, other than to the Work itself, to property which may arise out of or result from the Contractor's operations under the Contract, whether such operations be by the Contractor or by a Subcontractor or anyone directly or indirectly employed by any of them. This insurance shall be written for not less than limits of liability specified in the Contract documents or required by law, whichever coverage is greater, and shall include contractual liability insurance applicable to the contractor's obligations under the Contract. Certificates of such insurance shall be filed with the Owner prior to the commencement of the Work.

The insurance required by Subparagraph (a) above shall be written for not less than the following, or greater if required by law:

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| | |
|:---|:---|
| Workers' Compensation: |  |
| State: | Statutory |
| Applicable Federal: | Statutory |
| Employer's Liability: | $1000000 |

---

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Comprehensive General Liability (including but not limited to comprehensive form, premises operations, explosion and collapse hazard and underground hazard, products and completed operations hazard, contractual liability, broad form property damage (including completed operations) independent contractors' protective, personal injury:

Contractor must carry Comprehensive combined between Primary and Excess policies providing not less than $25,000,000 per occurrence and in the aggregate for bodily injury and property damage.

Subcontractor must carry Comprehensive General Liability of not less than $5,000,000 in the aggregate or per occurrence, provided Landlord may reduce such requirement to $1,000,000 for subcontractors providing limited services or materials, as determined in Landlord's reasonable discretion.

Products and Completed Operations to be maintained for 3 years after final payment.

Automobile Liability Comprehensive Form for owned, hired and non-owned vehicles.

In the event of any change in the limits of liability, decrease in coverage or other material change in coverage, or the cancellation of insurance in its entirety, the insurer shall endeavor to give Owner, Owner's agents and beneficiaries and Architect written notice at least thirty (30) days prior to the effective date of such change or cancellation and insurance coverage shall remain in force during said thirty (30) day period.

Waiver of any right of subrogation of the insurers against Owner, Owner's agents or beneficiaries and the Architect.

Contractor shall carry sufficient comprehensive insurance on his equipment at the site and en route to or from the site as may be necessary to fully protect himself and Contractor acknowledges that Owner shall have no responsibility or liability therefore.

The Contractor shall certify to the Owner that he has obtained or will obtain similar certificates of insurance from each of his subcontractors before their work commences. Each subcontractor must be covered by insurance of the same character and in the same amounts as the Contractor unless the Contractor and the Owner agree that a reduced coverage is adequate. Each subcontractor's insurance shall cover the Owner, Owner's agents and beneficiaries.

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**APPENDIX II - SITE SAFETY**

**I.** **GENERAL** 

The information contained herein shall be conveyed to the tenant's contractor at the pre-construction meeting. The contractor's on-site representative shall be held to be the Site Safety Officer and shall be responsible for disseminating this information to their employees and the various trades.

The Site Safety Officer shall be responsible for ensuring that all building rules, policies and procedures are strictly adhered to. In general, the Project Superintendent shall be the Site Safety Officer unless otherwise designated.

**II.** **EMERGENCY TELEPHONE NUMBERS** 

Fire, Medical, Police 911 <br> Security @ 787 11<sup>th</sup> Avenue [___________]

**III.**  **<u>FIRE</u>** 

<u>Precautions</u> - A minimum of one approved portable fire extinguisher, in good working order, shall be maintained in a visible and accessible locations at each job site. Such additional fire extinguishers, as may be required, shall be provided in accordance with NFPA 10.

<u>In Case of Fire</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Activate pull station and evacuate the job site. Use fire stair, do not use elevator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The fire extinguisher is <u>only</u> to be used to put out the most minor fires. If there is any
 question, sound fire alarm and evacuate.

<u>Prohibited</u> - Absolutely no portion of the fire alarm, detection or suppression system may be disconnected or otherwise deactivated without written permission from the Building Management office.

<u>Prohibited</u> - No heat or flame producing device may be brought into the building without prior notice to, and express consent of management. Likewise, no flammable fuel or compressed gas shall be brought into the complex without management notice and consent.

<u>Prohibited</u> - No burning, brazing, welding, sweating or soldering or cutting shall be permitted without prior notice to, and express consent of management. Where permitted, such operations must be performed by qualified mechanics (as evidenced by appropriate, current license and/or Certificate of Fitness), using approved equipment (labeled by the applicable governing body) in good repair in the sole opinion of Building Management. Flammable or fuel gases may not be stored on site; but must be brought on site immediately prior to, and removed immediately after use.

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<u>Required</u> - At all times when such welding, burning, brazing, sweating or soldering is being performed, the contractor and/or subcontractor performing the work, shall maintain a fire watch (who shall carry the appropriate license, permit or Certificate of Fitness), whose sole duty while such operations are underway, and for not less than one hour thereafter, shall be to inspect and safeguard surrounding materials and spaces; provided, however, although Contractor shall be required to maintain a fire watch at all times during Tenant's Work when appropriate, such fire watch need not be solely dedicated to such function during Tenant's Work only. Where such operations put more than one level at risk, Building Management may, at its sole discretion, require additional fire watch personnel & building engineer personnel to be present, at general contractor's expense.

**IV.** **MEANS OF EGRESS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. At all times during work hours (7:00 A.M. to 6:30 P.M.) the Contractors shall keep the lobbies and
 corridors on occupied floors clear of men and materials. On all floors clear travel paths to the fire stairs and elevators shall be maintained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Absolutely no materials may be stored in the fire stairwells at any time.</u> Use of stairwells
 for transporting over-length materials may be allowed after hours with clearance <u>only</u>.

**V.** **INDOOR AIR QUALITY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Dust protection - Contractor is responsible for protection of all surrounding spaces, as well as all
 driven equipment. Approved filter media to be installed at all return air and transfer openings and core equipment. Contact Landlord for direction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Odors - These are occupied buildings. Tenants are not to be exposed to any hazardous or noxious
 vapors, odors, gases, or other material.

**VI.** **HAZMAT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Contractor shall submit MSDS sheets on any flammable, strong smelling or caustic materials proposed
 to be used on site and shall obtain management approval <u>prior</u> to bringing such materials on site.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Disposal - All hazardous materials are to be disposed of in accordance with all Federal, State and
 local regulations. Under no circumstances are hazardous materials to be disposed of with general building trash or construction debris or in the building drains.

**VII.** **HOISTING** 

All hoisting and similar operations involving boom trucks, lifts, or cranes to be placed on the street, sidewalks, plazas, or planting areas, require specific landlord permission for each and every operation. Contractor shall make written application to the landlord at least 48 hours in advance. Application shall include a site plan, description of the work and equipment, as well as duration.

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Hoisting of this nature shall only be performed on weekends. Specific care shall be taken to avoid blocking building entrances and means of egress and garage entrances. All operators shall be certified for the equipment they are using and all work shall be performed under the supervision of a licensed rigger where required.

Contractor, at their own expense, shall provide permits (where required) and such flagmen as the Landlord may direct, whose sole responsibility shall be to conduct vehicular and pedestrian traffic around the work site. As part of this, contractor shall provide such signage, barricades, sidewalk sheds and safety equipment to perform this work in a safe and secure manner.

Notwithstanding anything to the contrary herein, the above Section VII shall not be applicable until completion of Tenant's Work.

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<u>EXHIBIT G-1</u>

<u>FORM OF LETTER OF CREDIT</u>

[NAME AND OFFICE OF ISSUING BANK]

IRREVOCABLE AND TRANSFERABLE

LETTER OF CREDIT

LETTER OF CREDIT NO. <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> Date: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>, 20<u>&nbsp;&nbsp;&nbsp;&nbsp;</u> 

AMOUNT: $<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Georgetown Eleventh Avenue Owners, LLC

c/o The Georgetown Company

667 Madison Avenue

New York, New York 10065

Attn: [ <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ]

Re: <u>Lease dated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; between&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ("Tenant")</u>.

Gentlemen:

We hereby open our Irrevocable and Transferable Letter of Credit No. <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> in your favor for the account of <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> in an aggregate amount of up to $<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> . We hereby irrevocably authorize you to draw on us in accordance with the terms and conditions hereinafter set forth by one (1) or more demands for payment in an aggregate amount not exceeding the foregoing amount. Partial drawings under this Letter of Credit are permitted.

Any demand for payment and all other communications relating to this Letter of Credit shall be in writing and addressed and presented by hand or by reputable overnight courier or by certified mail or registered mail, return receipt requested to our Letter of Credit Section at our office at <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>, New York, New York and shall make specific reference to this Letter of Credit by number. Demand for payment under this Letter of Credit may be made prior to its expiration at any time during business hours at the foregoing office on a day (a "Business Day") on which we are open for the purpose of conducting commercial banking business.

This Letter of Credit shall expire at 5:00 P.M., Eastern Standard Time, on <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> or, if such day is not a Business Day, then on the next day following which is a Business Day. This Letter of Credit shall be considered automatically extended without amendment for periods of one year from the present or any future expiration date unless we notify you in writing at your address set forth above (or in any transfer instruction, if applicable) presented by hand or by reputable overnight courier or by certified mail or registered mail, return receipt requested, not less than sixty (60) days prior to any such expiration date that we elect not to consider this Letter of Credit renewed for any such additional period.

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This letter of credit may be transferred one or more times in its entirety without our consent and without cost to you upon presentation to us of (i) a written transfer instruction signed by you and naming the transferee and (ii) the original of this letter of credit. Upon such presentation, we shall issue a replacement letter of credit in favor of the transferee in the form of this letter of credit. No other documents or presentations will be required by us in connection with any such transfer. Any and all transfer fees shall be charged to the account of Tenant.

This Letter of Credit sets forth in full our undertaking and such undertaking shall not in any way be modified, amended, amplified or limited by reference to any document, instrument or agreement referred to herein; and any such reference shall be limited to the matter referred to and shall not be deemed to incorporate herein by reference any such document, instrument or agreement. This Letter of Credit may not be amended without your written consent.

This letter of credit is issued subject to, and shall be governed by, the International Standby Practices 1998, International Chamber of Commerce Publication No. 590.

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| |
|:---|
| Very truly yours, |
| [Name of Issuing Bank**]** |
| By: |
| Name: |
| Title: |

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<u>EXHIBIT G-2</u>

<u>FORM OF GUARANTY</u>

(See attached.)

------

**<u>GUARANTY</u>**

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| | |
|:---|:---|
| PREMISES: | 67,809 aggregate square feet in the building located at 787 Eleventh Avenue, New York, New York 10019<br>|
| LANDLORD: | **GEORGETOWN ELEVENTH AVENUE OWNERS, LLC (together with its successors and assigns, "Landlord")** <br>|
| TENANT: | **PERSHING SQUARE CAPITAL MANAGEMENT, L.P. ("Tenant")**<br>|
| DATE OF THE LEASE: | As of [ <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> ], 2016<br>|
|  DATE OF THIS GUARANTY:<br>| As of [ <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> ], 2016 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In consideration of, and as an inducement for, the continuing obligations under that certain Lease dated as of as of [ <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> ], 2016 between Landlord and Tenant with respect to the Premises (the "**Lease**") and in further consideration of the sum of One ($1.00) Dollar and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned, William Ackman ("**Guarantor**"), a natural person, having an address of c/o Pershing Square Capital Management, L.P., 888 Seventh Avenue, 42<sup>nd</sup> Floor, New York, New York 10019, hereby absolutely, unconditionally and irrevocably guarantees to Landlord the full and prompt payment of all Annual Fixed Rent and Additional Rent payable by Tenant under or with respect to the Lease (subject to <u>Article 28</u> hereof), all irrespective of the validity, binding effect, legality or enforceability of the Lease or whether the Lease shall have been duly authorized, executed or delivered by Tenant, or any other circumstance which might now or hereafter or otherwise constitute a legal or equitable discharge or defense of a guarantor. Guarantor hereby covenants and agrees with Landlord that if a default of Tenant beyond any applicable notice, cure or grace period in the Lease shall at any time occur in the payment of any Annual Fixed Rent or Additional Rent, Guarantor shall and will forthwith upon demand to Guarantor pay such Annual Fixed Rent or Additional Rent and any arrears thereof (as such items are stated to accrue pursuant to the Lease without any acceleration for default or otherwise and subject to <u>Article 28</u> hereof) to Landlord in legal currency of the United States of America for payment of public and private debts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to <u>Article 28</u> hereof, this Guaranty is an absolute, unconditional and irrevocable guaranty of payment (and not merely of collection). Subject to <u>Article 28</u> hereof, the liability of Guarantor, as set forth above, is co-extensive with that of Tenant and this Guaranty shall be enforceable against Guarantor without the necessity of any suit or proceedings on Landlord's part of any kind or nature whatsoever against Tenant and without the necessity of any notice of non-payment, or any notice of acceptance of this Guaranty, or any other notice or demand to which Guarantor might otherwise be entitled (other than any notice expressly required to be delivered to Guarantor pursuant to the terms of this Guaranty), all of which Guarantor hereby expressly waives. Notwithstanding the foregoing, except as otherwise expressly provided herein (including in <u>Article 3</u> below), Guarantor shall have the right to assert against Landlord hereunder the same defense(s), if any, which could be asserted by Tenant against Landlord under the Lease except to the extent such defense(s) were in fact asserted and not upheld.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantor hereby expressly agrees that this Guaranty shall be a continuing guaranty and that the validity of this Guaranty and the obligations and liability of Guarantor hereunder shall in no way be terminated, affected, diminished or impaired by reason of (a) the assertion of or the failure by Landlord to assert against Tenant any of the rights or remedies reserved to Landlord pursuant to the terms, covenants and conditions of the Lease, or (b) any assignment of the Lease or subletting of all or any portion of the Premises, or (c) any renewal or extension of the Lease or any modification thereof, whether pursuant to the Lease or by subsequent agreement of Landlord and Tenant, or (d) any extension of time that may be granted by Landlord to Tenant, or (e) any default by or limitation on the liability of Tenant under the Lease or of Guarantor hereunder, or (f) any irregularity, invalidity or unenforceability (whether by reason of any immunity enjoyed by Tenant or otherwise) in whole or in part in or of the Lease or the obligations or liabilities of Tenant thereunder, or (g) any bankruptcy, insolvency, reorganization, arrangement, composition, liquidation, rehabilitation, assignment for the benefit of creditors, receivership or trusteeship, or similar or dissimilar proceeding or circumstance involving or affecting Tenant or Tenant's successors or assigns whether or not notice thereof is given to Guarantor (any limitation on or discharge of the liability of Tenant in such proceeding shall not diminish, limit, impair, abate, deter, modify or otherwise affect the liability of the Guarantor), or (h) any claim, counterclaim, cause of action, offset, recoupment or other right or remedy which Tenant may at any time have against Landlord (other than a claim resulting from Landlord's failure to perform in accordance with the terms of the Lease after the expiration of applicable grace, cure and notice periods), or (i) any conveyance, extinguishment, merger or other transfer, voluntary or involuntary (whether by operation of law or otherwise), of all or any part of the interest of Tenant in the Lease or the Premises, or (j) any waiver, consent, indulgence, forbearance, lack of diligence or other action, inaction or omission under or in respect of the Lease, or (k) any matter or thing whatsoever, whether or not specifically mentioned herein, other than full payment and performance of all Tenant's obligations under the Lease. Notwithstanding the foregoing, in the event that Landlord enforces this Guaranty against Guarantor, and Guarantor pays or performs on behalf of Tenant to cure any outstanding default by Tenant in accordance with and pursuant to the terms of the Lease, Tenant shall not be deemed in default under the terms of the Lease with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise expressly set forth in the Lease, no failure or delay on the part of Landlord in exercising any right, power or privilege under this Guaranty shall operate as a waiver of or otherwise affect any such right, power or privilege, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No payment by Guarantor pursuant to any provision hereof shall entitle Guarantor, by subrogation or otherwise, to the rights of Landlord to any payment by Tenant or out of the property of Tenant, except after full satisfaction of all of Tenant's obligations under the Lease, including, without limitation, payment in full of all fixed rent and additional rent due or to become due thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantor agrees that it will, at any time and from time to time, within twenty (20) days following written request by Landlord, execute, acknowledge and deliver to Landlord, a statement certifying that this Guaranty is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified and stating such modifications). Guarantor agrees that such certificates may be relied on by anyone holding or proposing to acquire any interest in Landlord's interest in the Property from or through Landlord or by any Mortgagee or Overlandlord; provided, however, Landlord shall not request that Guarantor deliver such certificate more than three (3) times in any calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Guarantor represents and warrants to Landlord as follows as of the date of this Guaranty:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Guarantor is a natural person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Guarantor has the full power, authority and legal right to execute and deliver, and to observe the
 provisions of, this Guaranty including the payment of all moneys hereunder. This Guaranty constitutes the legal, valid and binding obligation of Guarantor enforceable in accordance with its terms, except as enforcement hereof may be limited by
 (a) bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting creditors' rights generally or (b) the non-availability of equitable remedies which are discretionary with the courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. To Guarantor's actual knowledge, no authorization, approval, consent, filing or permission
 (governmental or otherwise) of any court, agency, commission or other authority or entity is required for the due execution, delivery, performance or observance by the Guarantor of this Guaranty or for the payment of any sums hereunder.
 Guarantor agrees that if any such authorization, approval, consent, filing or permission shall be required in the future in order to permit or effect performance of the obligations of Guarantor under this Guaranty, Guarantor shall promptly
 inform Landlord or any of its successors or assigns and shall use commercially reasonable efforts to obtain such authorization, approval, consent, filing or permission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. To Guarantor's actual knowledge, neither the execution or delivery of this Guaranty, nor the
 consummation of the transactions herein contemplated, nor the compliance with the terms and provisions hereof, conflict or will conflict with or result in a breach of any agreement or instrument to which Guarantor is a party or by which it is
 bound. To Guarantor's knowledge, Guarantor has not received any written notice of any claim made against Guarantor that Guarantor is in material default under any material contract or agreement to which Guarantor is a party or by which it or
 any of its property is bound or subject where the default would materially and adversely affect the ability of Guarantor to perform its obligations under this Guaranty.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. To Guarantor's actual knowledge, Guarantor has not received any notice that is in violation of any
 of requirements of any laws, rules, regulations, ordinances and orders applicable to Guarantor and which violation would materially and adversely affect the ability of Guarantor to perform its obligations under this Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Intentionally omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It is a condition of Landlord's continuing obligations under the Lease that Guarantor execute and deliver this Guaranty. Guarantor acknowledges and agrees that Landlord's continuing obligations under the Lease is in Guarantor's best interests and, as the current owner of one hundred percent (100%) of the equity interests in Tenant, Guarantor expects to derive benefit therefrom, and Guarantor has received adequate and fair equivalent value for this Guaranty. Guarantor makes this Guaranty knowing that Landlord will rely hereon in leasing the Premises to Tenant. Guarantor acknowledges that Guarantor received adequate and fair equivalent value for this Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantor and Landlord each acknowledges and agrees that all disputes arising, directly or indirectly, out of or relating to this Guaranty shall be dealt with and adjudicated in the state courts of New York or the Federal courts sitting in New York; and each hereby expressly and irrevocably submits Guarantor or Landlord, as the case may be, to the jurisdiction of such courts in any suit, action or proceeding arising, directly or indirectly, out of or relating to this Guaranty. So far as is permitted under the applicable law, this consent to personal jurisdiction shall be self-operative and no further instrument or action, other than service of process permitted by law, shall be necessary in order to confer jurisdiction upon Guarantor or Landlord in any such court. Guarantor and Landlord each irrevocably consents to the service of any and all process in any such suit, action or proceeding by service of process to Guarantor or Landlord, as the case may be, in accordance with applicable law at the address of Guarantor or Landlord, as the case may be, as hereinafter provided (or if such address is subsequently changed, at such last known address), whether within or without the jurisdiction of any such courts of New York or the Federal courts sitting in New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provided that service of process is effected upon Guarantor or Landlord as permitted by law, Guarantor and Landlord each irrevocably waives, to the fullest extent permitted by law, and agrees not to assert, by way of motion, as a defense or otherwise, (a) any objection which it may have or may hereafter have to the laying of the venue of any such suit, action or proceeding brought in such a court as is mentioned in the previous paragraph, (b) any claim that any such suit, action or proceeding brought in such a court has been brought in an inconvenient forum, or (c) any claim that it is not personally subject to the jurisdiction of the above-named courts. Provided that service of process is effected upon Guarantor or as permitted by law, Guarantor and Landlord each agrees that final judgment from which Guarantor or Landlord, as the case may be, has not or may not appeal or further appeal in any such suit, action or proceeding brought in such a court of competent jurisdiction shall be conclusive and binding upon Guarantor or Landlord, as the case may be, and, may so far as is permitted under the applicable law, be enforced in the courts of any state or any Federal court and in any other courts to the jurisdiction of which Guarantor or Landlord is subject, by a suit upon such judgment and that Guarantor will not assert any defense, counterclaim, or set off in any such suit upon such judgment, provided such judgment is non-appealable and Landlord has only filed such non-appealable final judgment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantor and Landlord each agrees to execute, deliver and file all such further instruments as may be reasonably necessary under the laws of the State of New York, in order to make effective the consent of Guarantor or Landlord to jurisdiction of the state courts of New York and the Federal courts sitting in New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Intentionally omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantor represents and warrants that it is not entitled to immunity from judicial proceedings and agrees that, in the event Landlord brings any suit, action or proceeding in New York or any other jurisdiction to enforce any obligation or liability of Guarantor arising, directly or indirectly, out of or relating to this Guaranty, no immunity from such suit, action or proceeding will be claimed by or on behalf of Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nothing in this Guaranty shall affect the right of Landlord to serve process in any manner permitted by law or limit the right of Landlord or any of its successors or assigns, to bring proceedings against Guarantor in the courts of any jurisdiction or jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to <u>Article 28</u> hereof, should (a) Landlord be obligated by any bankruptcy or other law to repay to Tenant or Guarantor or to any trustee, receiver or other representative of either of them, any amounts previously paid and (b) this Guaranty has not previously been replaced with a Letter or Credit in accordance with Section 20.22 of the Lease, then this Guaranty shall be reinstated in the amount of such repayment. Landlord shall not be required to litigate or otherwise dispute its obligation to make such repayments if it in good faith and on the advice of counsel believes that such obligation exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All actual, reasonable costs and expenses (excluding special, consequential or punitive damages), howsoever denominated (including reasonable out-of-pocket attorneys' fees and disbursements) incurred by the prevailing party in connection with the collection and enforcement of and by Guarantor or Guarantor's obligations under this Guaranty and Tenant's obligations under the Lease shall be deemed additional obligations of the non-prevailing party under this Guaranty and shall be paid by the non-prevailing party upon written demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Intentionally omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All remedies afforded to Landlord by reason of this Guaranty are separate and cumulative remedies and it is agreed that no one of such remedies, whether exercised by Landlord or not, shall be deemed to be in exclusion of any other remedy available to Landlord and shall not limit or prejudice any other legal or equitable remedy which Landlord may have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All capitalized terms used in this Guaranty which are defined in the Lease and not otherwise defined herein, shall have the meanings ascribed to such terms in the Lease (for the avoidance of doubt, the term Premises, as used herein, shall include, collectively, the Office Premises, Mezzanine Premises and License Area).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If any provision of this Guaranty or the application thereof to any person or circumstance shall to any extent be held void, unenforceable or invalid, then the remainder of this Guaranty or the application of such provision to persons or circumstances other than those as to which it is held void, unenforceable or invalid shall not be affected thereby and each provision of this Guaranty shall be valid and enforced to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantor and Landlord each hereby waives trial by jury and the right thereto in any action or proceeding of any kind or nature, arising on, under or by reason of or relating to, this Guaranty or any agreement collateral hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No right or benefit in favor of Landlord shall be deemed waived, no obligation or liability of Guarantor hereunder shall be deemed modified, diminished, released, compromised, extended, discharged or otherwise affected, and no provision or term hereof may be amended, modified or otherwise changed except by an instrument in writing, specifying the same, duly executed by Landlord nor shall any waiver be applicable, except in the specific instance for which it is given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The laws of the State of New York applicable to contracts made and to be performed wholly within the State of New York shall govern and control the validity, interpretation, performance and enforcement of this Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Guaranty shall be binding upon Guarantor and Landlord and inure to the benefit of each of their successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. Intentionally omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any notice, statement, demand, consent, approval or other communication required or permitted to be given, rendered or made by either party to this lease or pursuant to any applicable law or requirement of public authority shall be in writing (whether or not so stated elsewhere herein this lease) and shall be deemed to have been properly given, rendered or made only if sent by (i) registered or certified mail, return receipt requested, posted in a United States post office station or letter box in the continental United States, (ii) nationally recognized overnight courier (e.g., Federal Express) with verification of delivery requested or (iii) personal delivery with verification of delivery requested, in any of such cases addressed as follows:

If to Landlord: In accordance with Section 20.09 of the Lease.

if to Guarantor:

c/o Pershing Square Capital Management, L.P.

888 Seventh Avenue, 42nd Floor

New York, New York 10019

Attn: William Ackman

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With copies to:

c/o Pershing Square Capital Management, L.P.

888 Seventh Avenue, 42nd Floor

New York, New York 10019

Attn: Nicholas Botta

c/o Table Management, L.P.

888 Seventh Avenue, 42nd Floor

New York, New York 10019

Attn: Andrea Markezin

and

Sullivan & Cromwell LLP

125 Broad Street

New York, New York 10004

Attn: Anthony J. Colletta, Esq.

and if to Tenant: In accordance with Section 20.09 of the Lease.

and shall be deemed to have been given, rendered or made on (x) if mailed, on the second business day following the day so mailed, unless mailed to a location outside of the State of New York, in which case it shall be deemed to have been given, rendered or made on the third business day after the day so mailed, (y) if sent by nationally recognized overnight courier, on the first business day following the day sent or (z) if sent by personal delivery, when delivered and receipted by the party to whom addressed (or on the date that such receipt is refused, if applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding any provision hereof to the contrary, and without releasing Tenant from any liability under the Lease (except as otherwise expressly set forth herein), (a) Guarantor's obligations hereunder shall not exceed the sum of $6,037,193.00 in the aggregate or such lesser amount equal to the amount of the Security Deposit then required by <u>Section 20.22(c)</u> of the Lease; <u>provided</u>, that the foregoing limitation shall not apply to any collection and enforcement costs payable by Guarantor pursuant to Article 17 above and (b) this Guaranty shall automatically and permanently terminate and cease to be of any force or effect upon the earlier of (i) payment in full by Guarantor of $6,037,193.00 or such lesser amount equal to the amount of the Security Deposit then required by <u>Section 20.22(c)</u> of the Lease, plus any collection and enforcement costs then payable by Guarantor pursuant to Article 17 above and (ii) delivery to Landlord of a Letter of Credit in accordance with <u>Section 20.22</u> of the Lease (plus payment by Guarantor of any collection and enforcement costs then payable by Guarantor pursuant to Article 17 above).

[Signature page follows]

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IN WITNESS WHEREOF, Guarantor has duly executed this Guaranty as of the day and year first above written.

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| |
|:---|
| GUARANTOR: |
| WILLIAM ACKMAN |
| By: |

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<u>EXHIBIT H</u>

<u>FORM OF AMENDMENT OF LEASE</u>

AMENDMENT OF LEASE (this "Amendment"), dated as of _________ ___, 2016 (the "Effective Date"), between GEORGETOWN ELEVENTH AVENUE OWNERS, LLC, a Delaware limited liability company ("Landlord"), and PERSHING SQUARE CAPITAL MANAGEMENT, L.P., a Delaware limited partnership ("Tenant").

W I T N E S E T H:

WHEREAS, pursuant to that certain Lease dated as of ____ __, 2015 (the "<u>Lease</u>"), by and between Landlord and Tenant, Tenant leased from Landlord certain premises in the Building, as more particularly described in Exhibit B of the Lease (the "<u>Premises</u>") at 787 Eleventh Avenue, New York, New York, all as more particularly described in the Lease;

WHEREAS, pursuant to Section 2.1 of the Lease, Landlord and Tenant have agreed to modify and amend the Lease to set forth the final rentable area of the Premises and the Building as set forth in this Amendment.

NOW, THEREFORE, for good and valuable consideration, the mutual receipt and legal sufficiency of which is hereby acknowledged, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Definitions</u>. All capitalized terms used herein shall have the meanings ascribed to them in the Lease, unless specifically set forth herein to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Effective Date</u>. As of the Effective Date, the Lease shall be modified and amended as set forth in this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. <u>Modifications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Section 1.2 of the Lease is hereby modified and amended such that (1) (a) the Office Premises is agreed to consist of [_____] rentable square feet of space and (b) the Mezzanine Premises is agreed to consist of [_____] rentable square feet of space, and (2) Tenant's Share shall mean [__]% with respect to Operating Expenses and [_]% with respect to Taxes. Section 6 of Exhibit C of the Lease is hereby modified and amended such that the Landlord's Contribution Shall mean [__________].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.1.2(d)(i) through (iii) of the Lease are hereby deleted in their entirety and replaced as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; July 1, 2018 through June 30, 2019, the sum of Fifty Five Cents ($0.55) per rentable square foot of the Premises ($[__________] in the aggregate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; July 1, 2019 through June 30, 2020, the sum of One Dollar and 10/100 ($1.10) per rentable square foot of the Premises ($[__________] in the aggregate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; July 1, 2020 through June 30, 2021, the sum of One Dollar and 65/100 ($1.65) per rentable square foot of the Premises ($[___________] in the aggregate); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; July 1, 2021 through the Expiration Date, the sum of Two Dollars and 20/100 ($2.20) per rentable square foot of the Premises ($[_____] in the aggregate).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The parties represent and warrant to each other that as of the Effective Date (i) the Lease is in full force and effect, and has not been modified or amended, except as provided herein, and (ii) to the best of such party's knowledge, the other is not in default in the performance and observance of any of the terms, covenants, conditions or provisions of the Lease to be performed or observed by the other party under the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as modified and amended by this Amendment, all of the terms, covenants and conditions of the Lease are hereby ratified and confirmed and shall continue to be and remain in full force and effect throughout the remainder of the term thereof and all references to the Lease therein shall be deemed to refer to the Lease, as amended by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Amendment (i) shall be construed, governed and enforced in accordance with the laws of the State of New York, and (iii) shall not be binding upon or enforceable against Landlord or Tenant unless and until Landlord and Tenant shall have executed and unconditionally delivered to one another an executed counterpart of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unless otherwise noted, all Article and Section references herein shall refer to the Articles and Sections of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Amendment may not be modified, amended or terminated nor may any of its provisions be waived except by an agreement in writing signed by the party against whom enforcement of any modification, amendment, termination or waiver is sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The covenants, agreements, terms, provisions and conditions contained in this Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. Executed copies of this Amendment may be delivered by originals, telefacsimile or electronic (e.g., pdf) means, any of which shall be deemed effective to constitute delivery.

[No Further Text on this Page; Signature Page Follows]

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EXECUTED in one or more counterparts by persons or officers hereunto duly authorized on the Effective Date.

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|:---|
| LANDLORD: |
| GEORGETOWN ELEVENTH AVENUE OWNERS, LLC |
| By: |
| Name: |
| Title: |

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|:---|:---|
| TENANT: | TENANT: |
| PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. |
| By: PS Management GP, LLC, its General Partner | By: PS Management GP, LLC, its General Partner |
| By: |  |
|  | Name: |
|  | Title: |

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<u>EXHIBIT I</u>

<u>DELIVERY CONDITIONS</u>

(See attached.)

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|:---|:---|
| **FINAL** | <u>08/15/16</u> |

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**Exhibit I for Pershing Lease**

**787 Eleventh Delivery Conditions for Access Date**

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|:---|:---|
| **Overview:** | Landlord shall be constructing two new floors (floors 9 and 10), as well as an accessible terrace on the 9<sup>th</sup> floor, certain roof amenity space on the top of the Building, a dedicated mailroom on the Mezzanine above the loading dock, and a masonry enclosure in the basement for Tenant's dedicated electrical equipment (i.e. step-up transformers – See Electrical section, below), all for Tenant's occupancy and in accordance with plans and specifications dated July 15, 2016. Landlord shall deliver the space to Tenant ready for Tenant's fit-out pursuant to the conditions listed below. The date on which a certificate of Substantial Completion (as defined elsewhere in this Lease) for the items listed in this Exhibit I is issued by the Architect and/or Owner's engineering consultants, as may be appropriate, shall be considered the Access Date.<br>As a general note, all Landlord and Tenant provided or performed design and construction shall meet the requirements of the latest editions / revisions of all applicable Codes, rules, ordinances, handicapped access provisions, as well as industry accepted "best practices".<br>|
| **Floors:** | Landlord shall provide the Office Premises and the Mezzanine Premises with unpolished concrete floors on metal deck. The floors in the Office Premises shall be level to approximately 1/8" over 10 ft. Landlord shall provide, at Landlord's expense, multi-ply, torch down roofing material and insulation, pursuant to energy code requirements, in an IRMA configuration on the exterior terrace space on the 9th floor. The terrace shall have a maximum superimposed load limit of 175 pounds per square foot, inclusive of the weight of the roofing, insulation, all planters and landscaping, and the pedestal supported paving system, as well as Code required snow loading. Further, the occupancy of the terrace shall be limited to not more than the number of persons that would require a Public Assembly approval, pursuant to New York City Code. <br> The Roof Amenity Space shall be delivered with a structurally reinforced steel frame and deck suitable to support the loads imposed by Tenant's tennis court, temporary air supported enclosure, and supplemental HVAC and other ancillary equipment. The roofing material, together with energy code required insulation, shall be prepared to receive Tenant's tennis court underlayment and finish materials. The necessary structural tie downs to hold Tenant's tennis court netting and/or temporary bubble shall be designed in accordance with Tenant's enclosure manufacturer and applicable Code. The location of the tennis court and dimensions between Landlord's roof bulkhead walls shall be as shown on Base Building Roof Plan dated July 15, 2016.  |

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|:---|:---|
| **FINAL** | <u>08/15/16</u> |

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|:---|:---|
| | <br>The Office Premises and Mezzanine Premises shall have a maximum of 70 lbs. per sq. ft. of total superimposed live and dead load capacity (consisting of 50 lbs. per sq. ft. live load, plus 20 lbs. per sq. ft. for partitions, ceiling and ductwork construction, etc.). Limited floor "spot" loading of up to 100 psf total load may be acceptable, subject to Landlord's structural engineer's approval in each case and location. Reinforcing of these limited "spot" load increases, to a maximum total imposed load (live + dead) of up to 100 psf, shall be provided by the Landlord. As noted above, the Licensed Premises (9th floor terrace) shall have an absolute maximum of 175 lbs. per sq. ft. of total superimposed live and dead load capacity. The Roof Amenity Space is designed for a total imposed structural load equal to 100 lbs. per sq. ft., which includes, but is not limited to, all roofing, insulation, tennis court underlayment and topping material, temporary enclosure, enclosure support steel, and ancillary support systems (e.g.: HVAC, lighting, air pressurization pumps, etc.), as well as Code required snow loading. <br>|
| **Ceiling / Ceiling Heights:** | Landlord shall provide the Office Premises with an exposed, unfinished ceiling, consisting of a galvanized metal "Q" deck, ready to receive Tenant's ductwork, sprinkler piping, electrical work, and hung ceiling system. Structural steel framing consisting of beams, filler beams and girders shall also be exposed, as shown on the revised Structural Plans dated July 15, 2016. All structural elements shall have spray-on cementitious type fireproofing (W.R. Grace "Monokote" or equal) applied, in thicknesses as required by Code. At Tenant's request, in lieu of Monokote cementitious fireproofing, up to ten (10) columns on floors 9 and 10 shall be fireproofed using intumescent paint. Tenant construction that removes or otherwise damages the spray-on or intumescent paint fireproofing shall be patched to restore Code required fireproofing at Tenant's expense. Floor to ceiling height as measured from the top of the unpolished concrete floor to the underside of the metal deck of the structural slab above shall be approximately 14'- 5", however this shall be reduced by the depth of the steel framing (beams, filler beams, girders, and gusset connection plates, as well as anticipated local structural deflection), as well as spray-on cementitious fire proofing in Code required thicknesses, resulting in reduced clear ceiling heights in those areas to approximately 12'-4". Further, in certain locations, required ductwork, fire sprinkler piping, electrical conduit, and/or plumbing piping may further reduce clear ceiling heights. Floor to ceiling height as measured from the top of the unpolished concrete floor to the bottom of the concrete slab acting as the ceiling in the Mezzanine Premises shall be approximately 10'-6", less any structural elements as noted above, and/or required ductwork, sprinkler piping, electrical conduit, and/or plumbing piping. Ceiling heights under structural elements at specific locations shall be as shown on the revised Architectural, Structural, and MEPS Plans dated July 15, 2016. |

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|:---|:---|
| **FINAL** | <u>08/15/16</u> |

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| |
|:---|
| **Column Grid & Structure:** |
| **Curtain Wall / Window Wall:** Landlord shall provide the Office Premises with a window wall design incorporating insulating glass units ("IGU's"), including a partially reflective, low emissivity coating, in a proprietary system with aluminum mullions spaced approximately every 5'-0" feet, as shown on the Architectural Plans dated July 15, 2016, and approved concept plans prepared by the manufacturer (Skyline Windows, Inc.) and approved by Landlord's architect and window wall consultant. Landlord shall provide up to six (6) single, outward swinging operable doors (door width to be approximately 4'-0" or larger, within the 5'-0" mullion module, however subject to manufacturer's Code mandated wind load calculations) on the 9<sup>th</sup> floor to access the exterior terrace, in locations noted on the Architectural Plans dated July 15, 2016. In addition, Landlord shall provide one (1) double outward swinging pair of operable doors, at a location as selected by the Tenant; door pair width to be approximately 8'-0" or larger, within the 10'-0" portal width, however subject to manufacturer's Code mandated wind load calculations. On the Access Date, the Office Premises and Mezzanine Premises shall be watertight and enclosed, except for those locations required for Landlord's hoist, temporary protective scaffolding and "tie-back" supports for same, "Chicago" boom, or other vertical transportation and/or equipment and material rigging provisions. |

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|:---|:---|
| **FINAL** | <u>08/15/16</u> |

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|:---|:---|
| **Core Elements:** | The permanent fire stairs, elevator shafts, core mechanical rooms, core mechanical shafts, telecommunications closets, janitor closet, core bathrooms and other such core elements (collectively, the "Core Elements") as enumerated and situated according to the revised Architectural and Mechanical / Electrical plans dated July 15, 2016, shall be demised on each floor utilizing either concrete masonry units ("CMU") or drywall, as appropriate. While these Core Elements may not be operational as of the Access Date, Tenant shall be able to commence its fit out. Those locations receiving sheetrock shall be taped and spackled, ready to receive Tenant's finish treatment(s).<br>|
| **Plumbing /Temporary Water/Gas Service:** | Landlord shall furnish Tenant a single ¾" valved cold water pipe at a single location on each floor, in order to provide temporary domestic water for Tenant's use during construction of its space.<br>Landlord shall, at Tenant's expense, provide two (2), separately metered, natural gas service risers, one (1) 5" and (1) 3", in a single dedicated shaft, in accordance with Con Ed's gas service ruling and requirements. The 3" riser shall terminate on the 9<sup>th</sup> floor; the 5" riser shall terminate at the roof level. Risers have been sized based on the 4,000 cubic feet /hour total load provided by Tenant's engineer, for Tenant's kitchen cooking and dishwashing equipment, Tenant's domestic hot water heaters for its Gym / Health Club and "off core" toilets, as well as Tenant provided "ventless" fire places, but only to the extent that Code permits same. Tenant shall provide UL approved equipment, vented per code. Structure to reinforce penetrations for all required venting shall be provided by Landlord at Tenant's expense.<br>|
| **Environmental:** | Landlord shall provide Tenant with an ACP-5 for the Office Premises and, if required, Licensed spaces within five (5) business days after Tenant's submission to Landlord of Tenant's building permit filing set, in order for Tenant to secure the necessary permit(s) for its fit-out work. |

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| | |
|:---|:---|
| **FINAL** | <u>08/15/16</u> |

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| | |
|:---|:---|
| **Life Safety / Sprinkler**<br> **/ Fire Alarm:** | Landlord shall provide appropriate means of egress that fulfill code requirements during construction, until the time of Base Building Completion.<br>***<u>Fire Sprinkler:</u>*** A temporary sprinkler loop, hydraulically sized for a "Light Hazard" density, shall be installed at an elevation above the concrete slab of approximately 9'- 6", serving approximately 225 sq ft per head, with brass upright pendant-type heads, or as otherwise required by applicable code. Piping mains, branches, and drops shall be static pressure tested. Temporary sprinkler piping and heads shall be furnished and installed by Landlord. The eventual removal of the temporary sprinkler loop and replacement with Tenant's sprinkler piping and permanent heads, in its entirety and designed in full accordance with applicable codes and reference standards, shall be performed by Tenant at its' sole cost and expense. Landlord shall provide two (2) combined fire standpipes, with two (2) OS&Y zone valves located at each standpipe in two (2) of the three (3) the fire stairs on each of Tenant's floors, complete with flow and tamper monitoring, for Tenant's connection of its loop and branch piping.<br>***<u>Fire Ala</u>*<u>rm</u>*:*** Landlord shall provide a Data Gathering Panel ("DGP") on each of Tenant's floors for Tenant's furnishing and installation of fully Code compliant wiring and detection / annunciation devices on each of its floors. Tenant devices and wiring shall be fully compatible with Landlord's permanent building-wide multiplexed Fire Management System ("FMS"). Tenant shall provide a list of devices and other points to Landlord for testing and programming by Landlord's FMS vendor; initial testing and FMS programming shall be at Tenant's expense. Tenant, at Tenant's option, may contract directly with Landlord's FMS vendor, provided however that Landlord shall have the right to review and witness the programming and testing protocol. Landlord shall provide, as part of its core & shell work, Fire Warden stations, pull stations, smoke detectors, and all other devices required pursuant to Code in all core & shell spaces, including without limitation fire stairs, core toilets, machine rooms, electric and I/T closets, etc. and in the multi-floor corridor Landlord shall be providing on the 10<sup>th</sup> floor. <br>During Tenant's construction work, Tenant shall provide any Code required temporary wiring for Tenant's detection and/or annunciation devices, which shall be wired into Landlord's existing FMS.<br>|

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| | |
|:---|:---|
| **FINAL** | <u>08/15/16</u> |

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| **Electric, I/T, Security:** | Landlord shall provide sufficient temporary electrical capacity for Tenant to complete its construction work within a timely fashion. All electrical work to be performed in the Building shall be under the supervision of NYC Licensed Electricians, and shall comply with all applicable Codes and best practices.<br>Landlord shall provide conduit penetration / shaft locations from the roof down to the 9<sup>th</sup> floor for Tenant's power conduit required for its connection to Landlord's stand-by generator, as well as Tenant's Roof Amenity loads (i.e. tennis court). Landlord shall provide a conduit pathway, coordinated with the curtain wall, to permit Tenant to install any required power conduit required to serve loads over and above Landlord provided GFI duplex outlets (up to two (2) on each elevation (South – East – North) for its 9<sup>th</sup> floor terrace space, as further described in Exhibit J.<br>Landlord shall provide a separate riser shaft from the Basement to the 10<sup>th</sup> floor for Tenant's I/T use. Further, Landlord shall provide, at Tenant's option and at Tenant's expense, up to four (4) dedicated 4" riser conduit from the Basement "Meet Me" (incoming ISP service demark) room. Riser penetrations (sleeves) shall be provided by Landlord, at Landlord's expense. I/T risers are as shown on the "one-line" riser drawings that are part of the July 15, 2016 drawing package.  |

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<u>EXHIBIT J</u>

<u>BASE BUILDING CONDITIONS</u>

(See attached.)

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| **FINAL** | <u>08/15/16</u> |

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**Exhibit J for Lease**

**787 Eleventh Base Building Delivery Conditions**

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| **Overview:** | Upon Substantial Completion of the Base Building work, the items described herein shall be installed and fully operational, subject to customary punch list and testing/commissioning work. This Exhibit J is intended as a supplement to the items previously provided for in Exhibit I (the "Access Date Delivery Conditions").<br>The core & shell equipment contribution over ambient noise levels and/or any of Tenant's equipment shall not exceed a level of NC-40, when measured at a distance of 5'-0" from core & shell machine room demising walls. Further, all of Landlord's core & shell equipment shall be equipped with vibration isolation and/or suppression devices, as specified by Landlord's acoustical and vibration consultant.<br>|
| **Passenger / Service**<br> **Elevators:** | Landlord shall provide the following for Tenant's non-exclusive use:<br>***<u>Passenger Elevators:</u>*** Landlord shall provide four (4) new, overhead traction passenger elevators, each with a capacity of 4,000 lbs., located in the Base Building Core and in compliance with all Code requirements. All four elevators shall service all office floors from the lobby through the roof; two elevators shall also service the basement level.<br>***<u>Service Elevator:</u>*** Landlord shall provide one overhead traction service car, with a capacity of 5,000 lbs., located adjacent to the office loading dock along the west building wall that shall service the basement through roof level of the Building.<br>All elevators shall be available to Tenant on a 24 x 7 basis. Landlord shall be responsible to provide for all maintenance (including 24 hour emergency response and all required preventative maintenance) for all aforementioned elevators. See Exhibit CC for further elevator details.<br>Elevators shall be equipped with cab mounted security cameras, as well as proximity card readers and necessary programming to restrict access to unauthorized floors, via a Tenant accessible visitor and employee access control system (See "Lobby" section, of this exhibit, below).<br>|

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| **FINAL** | <u>08/15/16</u> |

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| **Terrace Space:** |
| **Mail Room / Loading Dock / Messenger Center:** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Landlord shall provide a mail room, with an area of approximately 600 sq. ft., for Tenant's exclusive use, on the mezzanine proximate to the loading dock on 54<sup>th</sup> Street. The mail room shall be delivered by Landlord in the following condition:<br>- &nbsp;&nbsp;&nbsp;&nbsp; Walls: sheet rocked, taped and ready to accept Tenant's paint, with fire rating as appropriate<br>- &nbsp;&nbsp;&nbsp;&nbsp; Door: 3'6" wide metal door<br>- &nbsp;&nbsp;&nbsp;&nbsp; Ceiling: 2'x4' lay-in acoustic tile, with 2'x4' lay-in fixtures<br>- &nbsp;&nbsp;&nbsp;&nbsp; HVAC: Landlord shall provide up to three (3) tons of air conditioning and heating via a dedicated heat pump unit.<br>- &nbsp;&nbsp;&nbsp;&nbsp; Electricity: Two (2) 20 amp, 120 volt dedicated circuits with up to eight (8) additional duplex outlets (locations to be coordinated with Tenant)<br>- &nbsp;&nbsp;&nbsp;&nbsp; Two (2) ¾" empty conduit stub-ups, terminating in "1900" boxes for Tenant's I/T use.<br>- &nbsp;&nbsp;&nbsp;&nbsp; Flooring: VCT and 4" vinyl cove base (basic color to be selected by Tenant)<br>- &nbsp;&nbsp;&nbsp;&nbsp; Required life safety per Code, including light hazard sprinklers, speaker/strobes, and smoke detection<br>- &nbsp;&nbsp;&nbsp;&nbsp; Any shelving, millwork or further improvement shall be at Tenant's sole cost and expense<br>The truck dock berth shall be able to accommodate a 14' tall truck and shall be equipped with a dock leveler. Subject to and in accordance with the rules and regulations set forth in the Lease, Tenant shall be able to utilize said loading dock for deliveries and refuse removal and shall route all packages and deliveries to this manned entrance (the hours of operation are set forth in the Lease). Landlord shall provide, at Tenant's expense, a pre-fabricated refrigerated garbage container, for Tenant's exclusive use, suitable to handle Tenant's kitchen and dining room(s) waste; refrigerated storage unit shall be located either in the Basement or on the loading dock level, as space permits, proximate to the loading dock.  |

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| **FINAL** | <u>08/15/16</u> |

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| | Rolling overhead doors, with card key access control, shall be provided at the Loading Dock entrance and at the entrance to the vehicle ramp to the Basement. The Loading Dock shall also have cameras with automatic protective roll-down gates. |
| **Lobby / Elevator Lobby:** | Landlord shall provide a first class main lobby with controlled access, which shall serve as the primary building entrance complete with a lobby desk (which desk shall house security monitors, elevator controls, and a remote annunciator for the Fire Management System, as required by applicable codes). Lobby controlled access system and visitor's access system shall include turnstiles with key card access as well as cameras with loop-type or electronic recorders, with ability for Tenant to directly access the system via a secure electronic link.<br>The Lobby security desk shall be connected by conduit to Tenant's 9<sup>th</sup> floor entrance reception / security desk, thereby providing Tenant with the option to have a voice and/or computer interface with the base building systems, to be designed by Landlord, in consultation with the Tenant.<br>The elevator lobby on the 9<sup>th</sup> floor shall be fit out pursuant to Tenant's plans at Tenant's sole cost and expense.<br>The elevator lobby on the 10<sup>th</sup> floor shall be a first class elevator lobby consistent with other Class A office buildings, which shall be designed and installed by Landlord, at Landlord's sole cost and expense. The finishes for the 10<sup>th</sup> floor elevator lobby shall include: drywall partitions with vinyl wall covering, an acoustic ceiling, lighting (combination of overhead LED spots and sconces), carpet or hard surface (thin set stone tile or equivalent), with controlled access framed glass doors and sidelights at both ends of the elevator lobby. HVAC for the 10<sup>th</sup> floor elevator lobby shall be fed from the east water cooled DX units (See HVAC, below) with linear diffusers for air distribution, controlled via a single zone variable air volume ("VAV") terminal and local thermostat.<br>|
| **HVAC:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***<u>Heating & Cooling:</u>***<br>Landlord shall furnish and install new water cooled VAV DX units, in local machine rooms, on each of Tenant's floors in accordance with the following:<br>Floor 9: Two 60 ton units, for a total of 120 tons<br>Floor 10: One 60 ton unit, for a total of 60 tons  |

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| **FINAL** | <u>08/15/16</u> |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each unit shall be equipped with outside air and exhaust provisions terminating in the local machine rooms, to Code requirements, "local smart" controls, ready for Tenant provided (at Tenant's expense) distribution ductwork, variable air volume boxes, temperature controls, etc. Each unit shall have a "hot deck" for heating using either hydronic (or at Landlord's option) L.P. steam coils, to be used in conjunction with Tenant provided perimeter hydronic overhead air distribution; hot water to be provided by Landlord via a perimeter loop, fed from Landlord's hydronic modular boilers, circulation pumps and controls.<br>The HVAC System shall be designed with the capability of providing the following indoor conditions:<br>Cooling / Summer: 74 deg F, +/- 2 deg F at approximately 50% RH, when outdoor conditions do not exceed 92 deg F dry bulb, and/or 75 deg F wet bulb, based on a Tenant occupancy of 1 person / 150 usable sq ft. The base building system shall not be provided with independent humidity control.<br>Heating / Winter: 68 deg F, +/- 2 deg F, via Tenant supplied and installed overhead air distribution, when the outside air temperature is not below 11 deg F dry bulb.<br>Tenant has exercised the option to have Landlord provide the three (3) DX units as set forth above each with a capacity of 70 tons; Tenant shall reimburse Landlord the actual cost for the additional ten (10) tons of cooling capacity per unit. Tenant shall also reimburse Landlord for other expenses, if any, associated with the increased unit capacity (e.g.: increase to size of equipment machine rooms, larger condenser water piping and valves, etc.). Landlord's three (3) DX units, at Tenant's request, shall be provided at 460 / 265 volts.<br>Further, at Tenant's request, Landlord shall, to the extent available from the selected OEM (original equipment manufacturer), have Tenant's three (3) DX units equipped with separate power circuiting, power connection points, and required controls to allow Tenant to run the DX unit's fan section only (i.e. without any of the cooling compressors running) in the event of a power failure; the fan-only operating mode power shall, in that case, come from Tenant's 150 KVA emergency power "tap" into the base building's generator (See Emergency Power / Generator section, below). Any additional costs for this option (again to the extent available from the OEM) for the cost of the units, controls, additional normal and emergency power feeds for the fan-only operation shall be borne solely by Tenant.<br>

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| **FINAL** | <u>08/15/16</u> |

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DX units shall be installed in core & shell machine rooms provided as part of Landlord's work, in locations as shown on plans dated July 15, 2016, and shall include: concrete housekeeping pads, appropriate vibration and acoustic isolation, fresh air supply and, as appropriate, exhaust ductwork to / from the machine rooms, as well as the unit discharge and return ductwork (to be picked-up at the machine room wall), a return air sound trap, and Code required dampers, smoke detection devices and connection of same to Landlord's fire management system. Landlord shall also provide all required electrical power and wiring, with the DX units fed from Tenant's 460 / 265 volt riser (See Electrical section, below), condenser water valves and piping, condensate floor drains and piping, as well as start-up / testing and water balancing.<br>In addition, for the portion of the 10<sup>th</sup> floor that Tenant is not intending to initially occupy, Landlord shall install a 60 ton DX unit, consistent with the above-referenced specifications. At Tenant's request, Landlord shall provide this DX unit to run at 460 / 265 volts, as provided above, however without the fan-only operating mode provisions. Further, this DX unit, which serves the east half of the 10<sup>th</sup> floor, as well as the core & shell cooling loads, shall be metered off of Tenant's existing 10<sup>th</sup> floor meter, with the electrical usage for said DX unit sub-metered, and billed back to the other tenant on the 10<sup>th</sup> floor, with a credit back to Tenant. Tenant shall be responsible for Con Ed utility charges for each of the four (4) DX units, except that a sub- meter shall be provided on the sub feeder for the unit serving the eastern half of the 10<sup>th</sup> floor; Tenant shall be credited with any electrical usage drawn by that unit.<br>***<u>Supplemental Cooling:</u>*** Landlord shall also provide up to a total of not more than 125 gpm of condenser water for Tenant's supplemental cooling loads (35 tons for Floor 9, and 15 tons for Floor 10, at an average flow rate of 2.50 gpm / ton) from a cooling tower (See cooling tower specifications, below) operated and controlled by Landlord, with pumps, plate frame heat exchangers, and controls feeding condenser water supply and return risers with valved outlets, sized for these supplemental cooling loads, in two locations on the 9<sup>th</sup> Floor, and one location on the 10<sup>th</sup> Floor. Should additional condenser water be available for supplemental cooling loads upon final lease up of the Building, Landlord and Tenant shall work together to ensure Tenant's incremental supplemental cooling loads, over and above the supplemental loads provided as set forth above, can be accommodated.<br>

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| **FINAL** | <u>08/15/16</u> |

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Locations of Landlord's condenser water risers shall be proximate to Base Building elevator core, but final location shall be coordinated with Tenant's design team. For design purposes, it is anticipated that the cooling tower shall operate at a 12 deg F delta t". Tenant's cost for after hours, overtime use of supplemental condenser water is provided for elsewhere in this Lease.<br>Further, Landlord's condenser water system shall be provided with a water-side economizer (so called "free cooling") via a plate frame heat exchanger with secondary loop pumps and controls, for economized operation during the Spring and Fall months when outside air temperature and humidity conditions are suitable.<br>Landlord shall winterize at least one cooling tower providing for year-round condenser water availability and shall either drain-down or partially winterize the other cooling tower cells during the winter months (i.e. from the beginning of November until the end of March) . Towers shall be equipped with full manual bypass capability. Pumps shall be equipped with variable frequency drives.<br>***<u>Basis of Design</u>:*** The Basis of Design for all systems and equipment shall be in accordance with system performance specifications outlined above, and the latest revision to the New York City Building Code in force at the time of filing for the building permit, as well as the ECCCNYS (2014 Revision, <u>et</u> <u>seq</u>), and applicable requirements in the latest revision of the ASHRAE Design Standard 90.1, and industry accepted "best practices" for Class "A" office buildings.<br>***<u>Smoke Dampers & Fire Stopping</u>:*** Consistent with the Basis of Design, and as required by Code, Landlord shall be responsible for installation of all fire-stopping and fire smoke dampers, each as applicable, at demising walls between Tenant's space and core and shell, and at any vertical shafts, perimeter walls and slabs.<br>***<u>Fresh Air/Exhaust:</u>*** Landlord shall furnish fresh air to, and exhaust from the DX unit equipment rooms (see above), as well as for core & shell toilets, electric closets, and all other core & shell spaces on each Tenant floor (floors 9 & 10) via local ductwork, and as required fans, dampers, and either exterior wall louvers or shafts, all in accordance with applicable Codes, as set forth in the Basis of Design above. The location of the ductwork / louvers and/or shaft connections shall be coordinated to the extent possible with Tenant's design team, but subject to, in each case, Landlord's final approval.<br>

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| **FINAL** | <u>08/15/16</u> |

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| **Electric:** | ***<u>Overview:</u>*** All electrical work to be performed in the Building by either Landlord or Tenant shall be performed by NYC Licensed Electrical Contractors and shall comply with all applicable New York City and National Electrical Codes, rules, and regulations. Tenant shall be permitted to install dedicated conduit between floors in mutually agreeable locations, subject to Landlord's review to ensure it does not interfere with the office core and that Tenant has reasonably addressed any structural implications.<br>***<u>Service:</u>*** Electric shall be provided to Tenant from an un-metered service board, as set forth in the Power Schedule, below. Tenant shall request and arrange for direct metering from Con Edison. Landlord shall provide the meter pan and other meter provisions. Tenant shall be responsible for any Con Edison non-recoverable service charges and fees.<br>***<u>Power Schedule:</u>*** Electrical Service shall be provided as follows:<br>Landlord shall, at Tenant's sole cost and expense, provide two (2) step up transformers, each in a delta / wye configuration, to convert Con Edison's 120 / 208 volt, 3-phase incoming electric service to 265 / 460 volt, 3-phase, (1 at 1,000 KVA and 1 at 500 KVA). Tenant's 1,000 KVA transformer shall be fed from a 3,500 ampere service switch in Landlord's switchgear. A 1,600 amp riser (at 460 / 265 volts) shall be run direct to Tenant's rooftop electrical room. Tenant's 500 KVA transformer shall be fed from a 1,600 service switch in Landlord's switchgear. An 800 amp riser (at 460 / 265 volts) shall be run direct to Tenant's rooftop electrical room.<br>The 1,600 amp feeder shall terminate in Tenant's rooftop electrical room in a 1,600 amp switchboard; the 800 amp riser shall terminate in an 800 amp switchboard. Notwithstanding any provision to the contrary in these technical specifications, Tenant acknowledges that its demand load shall in no event exceed 12 watts / rentable sq. ft. ("sfr"), or a maximum Tenant demand load of not more than 784 KW. Landlord estimates that the demand load for the base building DX units, in addition to the Tenant load of 12 w/sfr shall not exceed 7.0 w/sfr, for a total load fed from Tenant's two (2) 460 / 265 volt risers / switchboards of 1,241 KW, which equates to 19 w/sfr. Landlord shall provide power to DX units as set forth in the *Power to DX Units* section, below.<br>Landlord, recognizing that its core & shell distribution to Tenant's floors would have been at 208 / 120 volts, agrees to give Tenant a credit for the cost differential between the risers for Tenant's allowable load of 12 w/sfr demand calculated for 208 / 120 volts, and the actual cost (of the smaller) 460 / 265 volt risers.<br>|

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| **FINAL** | <u>08/15/16</u> |

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<br> Further, recognizing that the four (4) core & shell DX units shall be fed from Tenant's 460 / 265 volt risers, Landlord shall give Tenant an additional credit of 36.84% (7w/sfr / 19w/sfr = 36.84%) of the cost for the 460 / 265 volt risers.<br>Landlord shall also provide, located in the basement proximate to the new switchgear room (see plans), a reinforced concrete "house keeping" pad and a CMU enclosure with ventilation, rate-of-rise heat and fire detection, high-temperature sprinklers, as appropriate acoustic shielding, and all other Code required items, all at Tenant's expense. Landlord shall provide service via an unmetered section of the core & shell switchboard. Tenant shall arrange directly with Con Edison for direct metering of its electrical consumption.<br>Landlord shall install 265/460 volt sub-feeder risers from the basement to Tenant's switchboards located in the rooftop electrical room, as set forth above, for Tenant provided distribution directly to 460 volt loads, and to Tenant provided step-down transformers (460/265 volt to 208/120 volt) for 120/208 volt loads; panels and, at Tenant's option, stepdown transformers to be located in core electrical closets. Tenant shall, at tenant's expense, be responsible for any Code required ventilation and/or fire heat detection, enclosures, etc. made necessary by installation of the step-down transformers.<br>Landlord shall provide electrical service at 120 / 208 volts, fed from dedicated core & shell risers on Landlord's meter, together with required distribution panels, branch circuits, lighting and other devices to core & shell elevator lobbies, stairs, toilets, electric and I/T closets, as well as the roof amenity space; this service to be located in one of the core & shell electrical closets on each Tenant floor (9 & 10).<br>Tenant, as part of Landlord's 9<sup>th</sup> floor core bathroom allowance provided to Tenant (as provided for elsewhere in this Lease), shall provide all power, ground fault protected branch circuit wiring, lighting, switches, outlets, power for hand dryers and other powered toilet accessories, as well as all required life safety devices (e.g. smoke detectors, speaker / strobes) together with wiring and hook-up / programming to Landlord's fire management system.<br>

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| **FINAL** | <u>08/15/16</u> |

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| **** | ***<u>Power to DX Units:</u>*** Landlord shall provide power wiring to the water cooled DX units, at 460 / 265 volts from Tenant's riser panel(s) that it provides on each floor, as set forth in the HVAC section above; power to be derived from Tenant's metered service also as set forth above. Landlord shall, in the core & shell machine rooms on each of Tenant's floors, also provide lighting and convenience outlets, appropriate fire / smoke detection devices, fire sprinklers, wiring for Code required automatic dampers, and any other auxiliary devices required by Code.<br>***<u>Emergency Generator:</u>*** Tenant shall be permitted to draw not more than 150 KVA, to be delivered at 120 / 208 volts, from Landlord's life safety emergency generator. Landlord shall provide the generator and all required support equipment required for same. Landlord shall provide a dedicated 600 amp automatic transfer switch in Tenant's rooftop electrical room (See revised roof plan layout, dated July 15, 2016). Tenant shall be responsible to reimburse Landlord for all costs associated with the incremental increase to the base building generator necessary to accommodate the 150 kVA of additional load. Tenant shall install, via sleeves provided in the roof and a 10<sup>th</sup> floor sleeved shaft by the Landlord, all distribution sub feeders, wiring, distribution panels, and branch circuits necessary to distribute power from the 600 amp transfer switch to Tenant's loads. Tenant's electrical engineer shall fully coordinate its loads with the base building engineer (ICOR Associates) in order to ensure that any of Tenant's rotating loads are equipped with limited inrush starters, as well as a fuse and circuit breaker coordination study, such that Landlord's generator is protected from starting surge trip-out resulting from Tenant's loads.<br>Landlord shall, at Landlord's expense, also provide emergency power to certain core & shell equipment in order that Tenant may occupy Tenant's space during an extended Con Ed electrical outage. A list of that core & shell equipment is appended to this Exhibit J as Schedule "A".<br>Landlord shall regularly test and, via qualified third party providers, maintain the generator in accordance with all applicable Codes and the generator manufacturer's recommendations.<br>Further, notwithstanding any provision to the contrary herein, Landlord makes no representation whatsoever to Tenant as to the serviceability of the generator, whether by failure to start or run, mechanical or electrical breakdown, temporary disconnection for routine or emergent service, overload, overheating, failure of automatic transfer switches, fuel contamination or extended use that results in fuel exhaustion, or any other cause. Landlord also reserves the right to manually disconnect any of Tenant's malfunctioning or over-drawn loads in order to preserve basic life safety functions required to be maintained by Code.<br>|

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| **FINAL** | <u>08/15/16</u> |

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**Plumbing / Bathrooms:**<br>***<u>Overview:</u>*** All plumbing and related work performed in the Building by either Landlord or Tenant shall be performed by NYC Licensed Plumbing contractors, and shall conform to the latest revision of applicable sections of the New York City Building Code.<br>***<u>Potable Water:</u>*** Landlord shall provide up to two (2) 3-1/2" copper potable water risers, centrally located adjacent to the Base Building elevator core, with valved take-offs on each of Tenant's floors, for Tenant's domestic water requirements and use.<br>Landlord shall also provide up to six (6) 1" frost proof, cold water valved hose bibs (2 on each elevation) of the 9<sup>th</sup> floor terrace for Tenant's landscaping irrigation use. The delivery pressure at the hose bibs shall be approximately 60 psi. The 6 bibs shall be located with a maximum of two (2) on each elevation of the terrace (i.e. North, East, and South).<br>***<u>Waste:</u>*** Landlord shall provide up to three (3) 4" and one (1) 8" (for Tenant's health club toilets and showers), cast iron, "no-hub, Husky-type" jointed sanitary waste risers, with galvanized vent lines, located adjacent to both the central and the western Base Building cores for Tenant's connection to staff locker rooms and kitchen. Sanitary lines and vents shall be plugged, ready for Tenant's plumbing installation, and shall have clean-outs as required by Code. Tenant must fully coordinate the design and installation of all plumbing trap and clean-out locations with the base building plumbing engineer, so that required access to same is facilitated.<br>

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| **FINAL** | <u>08/15/16</u> |

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| | ***<u>Core Bathrooms</u>***: Landlord shall provide the following first-class restrooms, consistent with that of a Class A office building and all applicable codes: 2 women's restrooms per floor, including 4 toilets and 4 sinks; 2 men's restrooms per floor, including 3 toilets, 2 urinals and 4 sinks. Each restroom shall have "no-peek" laminate or painted metal partitions, along with appropriate stone or ceramic tiling, vanity and mirrors, ancillary toilet accessories, and a central floor drain. The finishes and specifications for the core bathrooms are as set forth on the July 15, 2016 revised drawings.<br>In lieu of Landlord furnishing and installing the core bathrooms on the 9<sup>th</sup> floor, Landlord shall provide Tenant with a credit in the amount of $170,000, lump sum. Irrespective of this credit, Landlord shall provide the 4 core bathroom locations with cold water service piping and valves, sanitary waste, and vent piping at a location in each restroom. The credit mentioned above shall remove Landlord's obligation to construct said 9<sup>th</sup> floor core bathrooms and is a lump sum, fixed credit to cover Tenant's construction of all walls, ceilings, plumbing run-outs, fixtures and trim, electrical and lighting roughing, as well as all vanities, toilet accessories and other finishes pursuant to plans developed by Tenant and submitted to Landlord for approval for the core bathrooms on the 9<sup>th</sup> floor. Landlord shall provide the 10<sup>th</sup> floor core bathrooms' fixtures, trim, and all finishes, which shall be in accordance with the typical building standard toilets, as set forth on the Architectural and MEPS plans dated July 15, 2016.<br>Landlord shall provide basic plumbing roughing in chase walls, including croton and waste / vent piping, water closet and urinal wall carriers, and lavatory traps.<br>Tenant shall then be responsible for providing sufficient fixtures to meet code "population count" and all Code mandated handicap requirements. Tenant shall determine on or before lease execution whether it desires the cash credit or for Landlord to install the aforementioned core bathrooms on the 9<sup>th</sup> and 10<sup>th</sup> floors.<br>Should Tenant elect to take Landlord's credit, Tenant's finishes, electrical / lighting selections, and general toilet layout shall be subject to Landlord's review and approval, which shall not be unreasonably withheld.<br>|
| **Environmental:** | Landlord shall represent and warranty that once all Landlord's Base Building Work is completed, the non-auto portion of the Building shall either be free of hazardous materials, or any remaining hazardous materials shall be properly encapsulated, in full accordance with applicable Codes and Standards for the remediation of hazardous material. That representation notwithstanding, Landlord shall provide the appropriate ACP-5 form(s) for Tenant's use in obtaining Tenant's building permit for Tenant's premises, within five (5) business days after receiving Tenant's complete building department filing drawings for Landlord's approval. |

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| **FINAL** | <u>08/15/16</u> |

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| **Mutual Coordination:** | Landlord and Tenant shall mutually coordinate Landlord's Base Building Work, to the extent reasonable, so as to limit the interruption and interference to the daily operation of Tenant's initial alterations, as reasonably possible, while not interfering with or unduly burdening (from a cost or time perspective) Landlord's completion of the Base Building Work. |
| **Riser Drawings:**<br>| Landlord's MEP and Fire Protection engineering consultant, ICOR Associates, has provided Tenant's MEP engineer with a complete revised set of MEPS drawings, dated July 15, 2016 and distributed to Tenant by providing access passwords to the project "drop box" on July 17, 2016.<br>Tenant shall incorporate and fully coordinate the foregoing into its design.<br>______________________________________________<br>|

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**EXHIBIT J**

**<u>SCHEDULE A</u>**

<u>****</u>

<br> <u>**Intentionally omitted**</u>****

<br> &nbsp;&nbsp;&nbsp;&nbsp;<br>

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<u>EXHIBIT K</u>

<u>FORM OF ACCESS DATE AGREEMENT</u>

Agreement made this __ day of _____, 20 __, between GEORGETOWN ELEVENTH AVENUE OWNERS, LLC, a Delaware limited liability company ("Landlord"), and PERSHING SQUARE CAPITAL MANAGEMENT, L.P., a Delaware limited partnership ("Tenant").

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The parties have heretofore entered into a written Lease dated ______________, 20__, (the "Lease") for the leasing by Landlord to Tenant of certain space on the ninth (9<sup>th</sup>) and tenth (10<sup>th</sup>) floors in the building known as 787 Eleventh Avenue, New York, New York, and certain roof and terrace areas of such building, all as more particularly described in the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to Section 3.3 of the Lease, Landlord and Tenant agree that the Access Date is ______________.

IN WITNESS WHEREOF, Landlord and Tenant have respectively signed this Access Date Agreement as of the day and year first above written.

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| LANDLORD: | LANDLORD: |
| GEORGETOWN ELEVENTH AVENUE OWNERS, LLC | GEORGETOWN ELEVENTH AVENUE OWNERS, LLC |
| By: |  |
| Name: | Name: |
| Title: | Title: |
| TENANT: | TENANT: |
| PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. |
| By: | PS Management GP, LLC, its General Partner |

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By:   <br> Name: <br> Title:

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<u>EXHIBIT L</u>

<u>FORM OF RENT COMMENCEMENT DATE AGREEMENT</u>

Agreement made this __ day of ____, 20 __, between GEORGETOWN ELEVENTH AVENUE OWNERS, LLC, a Delaware limited liability company ("Landlord"), and PERSHING SQUARE CAPITAL MANAGEMENT, L.P., a Delaware limited partnership ("Tenant").

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The parties have heretofore entered into a written Lease dated ______________, 20__, (the "Lease") for the leasing by Landlord to Tenant of certain space on the ninth (9<sup>th</sup>) and tenth (10<sup>th</sup>) floors in the building known as 787 Eleventh Avenue, New York, New York, and certain roof and terrace areas of such building, all as more particularly described in the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to Section 5.6 of the Lease, Landlord and Tenant agree that the Rent Commencement Date is **[________]** and that the Expiration Date is _______________.

IN WITNESS WHEREOF, Landlord and Tenant have respectively signed this Commencement Date Agreement as of the day and year first above written.

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| | |
|:---|:---|
| LANDLORD: | LANDLORD: |
| GEORGETOWN ELEVENTH AVENUE OWNERS, LLC | GEORGETOWN ELEVENTH AVENUE OWNERS, LLC |
| By: |  |
| Name: | Name: |
| Title: | Title: |
| TENANT: | TENANT: |
| PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. |
| By: | PS Management GP, LLC, its General Partner |

---

By:   <br> Name: <br> Title:

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<u>EXHIBIT M</u>

<u>EXPANSION SPACE</u>

The Expansion Space shall constitute a portion of the tenth (10th) floor of the Building, as shown on the floor plan annexed to this Exhibit M and forming a part hereof within the outside walls of the Building, excluding the area occupied by Building stairs, fire towers, elevator shafts, flues, vents, stacks, pipe shafts and vertical ducts, with their enclosing walls (but including the area occupied by the shafts and machinery for any private elevators, pneumatic tubes, conveyors, mail chutes and the like installed by Tenant, and the interior walls and partitions enclosing such shafts and machinery).

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[Floor Plan]<br>

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<u>EXHIBIT N</u>

<u>INTENTIONALLY OMITTED</u>

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<u>EXHIBIT O</u>

<u>TENANT'S SPECIALTY ALTERATIONS</u>

<u>**INTENTIONALLY OMITTED**</u>

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<u>EXHIBIT P</u>

<u>INTENTIONALLY OMITTED</u>

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<u>EXHIBIT Q</u>

<u>SIGNAGE RESTRICTIONS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except to the extent required by legal requirements, Tenant shall not install, place or permit to be installed or placed any sign on the roof of the Building or on the exterior of the Building or within the common areas or within the Premises where visible from the outside except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; signs relating to the permitted uses of the Premises which are installed pursuant to and in accordance with the terms of the Lease and in the locations described therein, provided such signs are installed in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; all signs shall be of a type that would be consistent with the character, reputation and appearance of the Building as a high quality, mixed-use first class office and retail building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; unless otherwise required by applicable law, no sign shall be of a type known as a "strobe light" or otherwise of a flashing nature;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no sign shall diminish the view from the space in any premises of the Building other than the Premises (except to a de minimis extent);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no sign shall be unreasonably large;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in accordance with the rules, regulations and policies to be established by Landlord permitting (where not otherwise permitted under this Exhibit Q) the placement and maintenance by each tenant and occupant of identifying signs and insignia of such sizes and materials and in such locations which shall be architecturally suitable and appropriate to the design and function of the Building; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with the prior written consent of the Landlord, provided the same does not interfere with another occupant or tenant's signage rights or otherwise have a material adverse effect on any occupant or tenant provided that such signs also comply with the requirements of paragraph (a) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any sign permitted under this Exhibit Q shall be installed and maintained in accordance with applicable laws, regulations or municipal codes and the standards of a First Class Building. Any installation, replacement, restoration or alteration of a sign shall be deemed to be an Alteration.

Notwithstanding the provisions of this Exhibit Q, none of the foregoing is intended to, nor does it, grant to Tenant any signage rights with respect to the exterior of the Building except as expressly set forth in the Lease; it being understood and agreed that Tenant has no such rights except as expressly set forth in the Lease.

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<u>EXHIBIT R</u>

<u>INTENTIONALLY OMITTED.</u>

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<u>EXHIBIT S</u>

<u>INTENTIONALLY OMITTED.</u>

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<u>EXHIBIT T</u>

<u>FORM OF SUBORDINATION AND NONDISTURBANCE AGREEMENT</u>

(See attached.)

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**Execution Version**

After Recording, Return to:

Gibson, Dunn & Crutcher LLP

200 Park Avenue

New York, NY 10166

Attn: Andrew J. Dady, Esq.

**<u>SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT</u>**

This SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (this "***Agreement***") is made as of __________, 2016, by and between BREDS II Mortgage Corp., a Delaware corporation, Affiliate of Blackstone Real Estate Special Situations Advisors L.L.C., whose address for notice under this Agreement is c/o Blackstone Real Estate Debt Strategies, 345 Park Avenue, New York, New York 10154 (together with its successors and/or assigns, "***Lender***"), and PERSHING SQUARE CAPITAL MANAGEMENT, L.P., a Delaware limited partnership, with an address at 888 Seventh Avenue, 42<sup>nd</sup> Floor, New York, New York 10019 ("***Tenant***").

<u>Statement of Background</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lender has agreed to make a loan (the "***Loan***") to Georgetown Eleventh Avenue Owners, LLC, a Delaware limited liability company ("***Landlord***"), which will be secured by, among other things, one or more mortgages (as each of the same may be amended, restated, replaced, supplemented, increased, or otherwise modified from time to time, collectively, the "***Security Instrument***") made by Landlord for the benefit of Lender covering the land (the "***Land***") described on **<u>Exhibit A</u>** attached hereto and all improvements (the "***Improvements***") now or hereafter located on the Land (the Land and the Improvements hereinafter collectively referred to as the "***Property***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant is the tenant under that certain Lease, between Landlord and Tenant, dated as of _______________, 2016 (which lease, as the same may have been amended and supplemented as of the date hereof, is hereinafter called the "***Lease***"), covering approximately __________ square feet of space located in the Improvements (the "***Premises***"). Landlord holds all rights of landlord or lessor under the Lease. Capitalized terms used and not defined in this Agreement shall have the meanings ascribed to such terms in the Lease in effect on the date of this Agreement as approved by Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The parties hereto desire to make the Lease subject and subordinate to the Security Instrument in accordance with and subject to the terms, conditions and provisions of this Agreement.

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<u>Statement of Agreement</u>

For and in consideration of the mutual covenants herein contained and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, and notwithstanding anything in the Lease to the contrary, it is hereby agreed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender, Tenant and Landlord do hereby covenant and agree that the Lease with all rights, options (including options to acquire or lease all or any part of the Property), liens and charges created thereby, is and shall continue to be subject and subordinate in all respects to the Security Instrument and to any renewals, modifications, consolidations, replacements and extensions thereof and to all advancements made thereunder, subject to the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender and Tenant hereby agree that, in the event that Lender (or its nominee or designee) becomes the owner of the Property by foreclosure, conveyance in lieu of foreclosure or otherwise, or another Person purchases the Property upon or following the foreclosure of the Security Instrument or in connection with any bankruptcy case commenced by or against Landlord (the date upon which such succession occurs, the "***Succession Date***"; and the Person so obtaining ownership of the Property (whether Lender, its nominee or designee, or such purchaser), together with the successors and assigns of such successor owner, the "***Successor Landlord***"), so long as on the Succession Date, the Lease is then in full force and effect, Tenant shall not be in default under the Lease beyond all applicable notice and cure periods (it being agreed that if Landlord fails to give any notice of default to Tenant, Lender shall have the right to do so and the giving of such notice by Lender shall have the same force and effect for purposes of the Lease and this Agreement as if such notice were given by Landlord) and no monetary default or material non-monetary default by Tenant under the Lease shall exist of which Tenant has actual knowledge (which, if the prior landlord had given a default notice promptly after the occurrence of such default by Tenant, then the applicable cure period would have expired), (i) the Lease shall continue in full force and effect as a direct Lease between Successor Landlord and Tenant, upon and subject to all of the terms, covenants and conditions of the Lease (and the terms, covenants and conditions of this Agreement), for the balance of the term of the Lease, and Successor Landlord will not disturb the possession of Tenant, and (ii) the Premises shall be subject to the Lease and Successor Landlord shall recognize Tenant as the tenant of the Premises for the remainder of the term of the Lease in accordance with the provisions of the Lease (and the terms, covenants and conditions of this Agreement); <u>provided</u>, <u>however</u>, nothing contained herein shall prevent Lender from naming Tenant in any foreclosure or other action or proceeding initiated by Lender pursuant to the Security Instrument to the extent necessary under applicable law in order for Lender to avail itself of and complete the foreclosure or other remedy; <u>provided</u>, <u>further</u>, that in no event shall any such naming of Tenant result in the termination of the Lease or disturb Tenant's possession or use of the Premises if the Successor Landlord is required to recognize Tenant in accordance with the provisions of this <u>Section 2(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant does hereby agree with Lender that, if Successor Landlord becomes the owner of the Property, then Tenant shall attorn to and recognize Successor Landlord as the landlord under the Lease for the remainder of the term thereof, and Tenant shall perform and observe its obligations thereunder, subject only to the terms and conditions of the Lease and this Agreement. Each of Lender (on behalf of itself and any Successor Landlord) and Tenant agrees, upon the election of and written demand by Tenant or Successor Landlord, as applicable, within sixty (60) days after Successor Landlord obtains title to the Property, to execute an instrument in confirmation of the foregoing provisions of this <u>Section 3</u> in form and substance reasonably satisfactory to both Successor Landlord and Tenant; <u>provided</u>, <u>however</u>, that any failure to so execute such an instrument shall not affect the attornment of Tenant to Successor Landlord, or the recognition of Tenant (and Tenant's lease) by Successor Landlord, pursuant to the terms and conditions of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant agrees that, if Successor Landlord succeeds to the interest of Landlord under the Lease, Successor Landlord shall not be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp; liable for any act or omission of any prior landlord (including, without limitation, Landlord), except where such act or omission (i) does not relate to any Excluded Default Items, (ii) occurs after the Access Date and delivery to Successor Landlord of a copy of the Access Date Acceptance Agreement (as defined below), (iii) is ongoing or continuing at the time Successor Landlord acquires title to the Property and (iv) has not been cured by Successor Landlord within a reasonable time period (not to exceed one hundred twenty (120) days subject to extension for force majeure) after receiving written notice from Tenant after the Succession Date that such default is continuing (such reasonable time period, subject to extension for force majeure, the "***Successor Landlord Cure Period***", and any such act or omission satisfying all of clauses (i)-(iv) of this <u>Section 4(a)</u>, a "***Continuing Default***"); <u>provided</u>, <u>however</u>, that this <u>Section 4(a)</u> shall not affect Tenant's termination right in Section 3.2 of the Lease (which rights are subject to <u>Section 6(b)</u> below) nor Tenant's rights expressly provided in <u>Section 6</u> below (including, without limitation, Tenant's offset rights with respect to the Landlord's Contribution to the extent provided below in <u>Section 6(a)(iii)</u> below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp; subject to any defense or offsets which Tenant may have against any prior landlord (including, without limitation, Landlord), except if such offsets or defenses arise out of a Continuing Default and then only to the extent accruing from and after the occurrence of such Continuing Default; <u>provided</u>, <u>however</u>, that, this <u>Section 4(b)</u> shall not affect Tenant's termination right in Section 3.2 of the Lease (which rights are subject to <u>Section 6(b)</u> below), Tenant's offset rights with respect to the Landlord's Contribution to the extent provided below in <u>Section 4(d)</u>, or Tenant's rights expressly provided in <u>Section 6</u> below (including, without limitation, Tenant's offset rights with respect to the Landlord's Contribution to the extent provided in <u>Section 6(a)(iii)</u> below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp; bound by any payment of rent or additional rent which Tenant might have paid for more than one month in advance of the due date under the Lease to any prior landlord (including, without limitation, Landlord), except to the extent (1) such payment shall have been expressly approved in writing and received by Lender or (2) such prepayment is a required payment of Additional Rent made pursuant to the express provisions of Section 6.1.2 of the Lease (with respect to Tenant's share of Taxes) or pursuant to the express provisions of Section 6.2.2 of the Lease (with respect to Tenant's share of Operating Expenses);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp; except as expressly provided in <u>Section 6(a)(iii)</u> below with respect to Landlord's Contribution, bound by any obligation to make any payment to Tenant which was required to be made prior to the time Successor Landlord succeeded to Landlord's interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp; accountable for any monies deposited with any prior landlord (including security deposits), except to the extent such monies are actually received by or on behalf of Successor Landlord; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp; bound by any surrender, termination, amendment or modification of the Lease made without the consent of Lender; <u>provided</u>, <u>however</u>, that no such consent shall be required with respect to (1) the exercise by Tenant of any unilateral renewal or extension option in accordance with the express terms of Lease, (2) any expansion option exercised in accordance with the express terms of the Lease (including pursuant to the right of first offer expressly set forth in Article 23 of the Lease), (3) the exercise by Tenant of its right to terminate the Lease pursuant to Section 3.2 thereof (which rights are subject to <u>Section 6(b)</u> below) or the exercise by Tenant of any unilateral right to terminate the Lease by reason of casualty or condemnation in accordance with the express terms of Article 12 of the Lease, and (4) any amendment affected by Landlord and/or Tenant without Lender's consent in accordance with the express terms of the Loan Agreement (as defined in the Security Instrument) that solely extends the date by which Landlord is required to complete the Delivery Conditions and/or solely to extend the Outside Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant acknowledges that Landlord will execute and deliver to Lender an Assignment of Leases and Rents (the "***Assignment of Leases***"), which assigns the Lease and the rent and all other sums due thereunder to Lender as security for the Loan, and Tenant hereby expressly consents to such assignment. Tenant acknowledges that the interest of the Landlord under the Lease has been assigned to Lender solely as security for the purposes specified in said assignments, and Lender shall have no duty, liability or obligation whatsoever under the Lease or any extension or renewal thereof, either by virtue of said assignments or by any subsequent receipt or collection of rents thereunder, unless Lender shall specifically undertake such liability in writing or unless Lender or its designee or nominee becomes, and then only with respect to periods in which Lender or its designee or nominee becomes, the fee owner of the Property. Tenant further agrees that upon receipt of a written notice from Lender of a default by Landlord under the Loan, Tenant will thereafter, if requested by Lender, pay rent to Lender in accordance with the terms of the Lease. Landlord shall have no claim against Tenant for any amounts paid to Lender pursuant to any such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) &nbsp;&nbsp;&nbsp;&nbsp; Tenant hereby agrees to give to Lender copies of all notices of Landlord default(s) under the Lease in the same manner as, and whenever, Tenant shall give any such notice of default to Landlord, and no such notice of default shall be deemed given to Landlord unless and until a copy of such notice shall have been so delivered to Lender. Lender shall have the right, but not the obligation, to remedy any Landlord default under the Lease, or to cause any default of Landlord under the Lease to be remedied, and for such purpose Tenant hereby grants (A) Lender the Pre-Successor Landlord Cure Period (as defined below) and (B) Lender and Successor Landlord the Successor Landlord Cure Period (as defined in <u>Section 4(a)</u> above), as applicable, to remedy, or cause to be remedied, any such default in addition to the period given to Landlord for remedying, or causing to be remedied, any such default. Tenant shall accept performance by Lender or Successor Landlord of any term, covenant, condition or agreement to be performed by Landlord under the Lease with the same force and effect as though performed by Landlord. Except as expressly provided below in this <u>Section 6</u> (including <u>Section 6(b)</u> below), in no event shall Tenant terminate the Lease, claim a partial or total eviction, withhold rent, exercise any offset right, exercise any self-help right, exercise any abatement right, or otherwise fail to meet its obligations under the Lease, by reason of any default by Landlord.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp; With respect to any Landlord default occurring prior to the Succession Date (excluding any Continuing Default, which shall be governed by <u>Section 4</u> above), if Lender shall have failed, in good faith, to commence to cure such default promptly after receipt of written notice of such default from Tenant (it being agreed that Lender shall have no obligation to cure such default) and, if Lender elects, in its sole discretion, to commence the cure of such default, but fails to prosecute the same to completion with reasonable diligence, subject to force majeure; provided, that in no event shall such cure period exceed one hundred twenty (120) days after receipt of such written notice of such default, subject to extension for force majeure (the "***Pre-Successor Landlord Cure Period***"), then Tenant shall have the right to exercise (to the extent applicable in accordance with the express provisions of the Lease) (A) any abatement or offset right in accordance with Section 4.1(f) or Section 5.1(b) of the Lease to the extent arising out of such default and to the extent such abatement or offset right accrues after the expiration of the Pre-Successor Landlord Cure Period and prior to the Succession Date (it being agreed that any such abatement or offset right may only be applied with respect to rent payable under the Lease prior to the Succession Date and <u>Section 6(a)(iv)</u> below shall govern with respect to the period from and after the Succession Date), (B) any self-help right applicable to such default to the extent provided in Section 20.16(b) of the Lease, and (C) any abatement right set forth in Section 20.16(c) of the Lease to the extent Tenant exercises such self-help right under Section 20.16(b) of the Lease with respect to such default and to the extent such abatement right accrues after the expiration of the Pre-Successor Landlord Cure Period and prior to the Succession Date (it being agreed that any such abatement right may only be applied with respect to rent payable under the Lease prior to the Succession Date and <u>Section 6(a)(iv)</u> below shall govern with respect to the period from and after the Succession Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp; Subject to <u>Section 6(b)</u> below, Tenant shall have the right to exercise Tenant's termination right in accordance with the express provisions of Section 3.2 of the Lease so long as Tenant delivers written notice to Lender of the exercise thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp; If (A) Landlord defaults in paying any installment of Landlord's Contribution and Tenant notifies Lender in writing prior to the Succession Date of any accrued and unpaid payments owed by Landlord to Tenant in respect of Landlord's Contribution that have accrued prior to the Succession Date (together with reasonable evidence substantiating the same) and delivers to Lender all items required under the Lease to be delivered to Landlord in satisfaction of all applicable Lease conditions ("***Pre-Succession Date Accrued Contribution Payments***"), or (B) notifies Successor Landlord in writing within ten (10) Business Days after the receipt by Tenant of written notice of the occurrence of the Succession Date of any accrued and unpaid payments owed by Landlord to Tenant in respect of Landlord's Contribution (together with reasonable evidence substantiating the same) and delivers to Successor Landlord all items required under the Lease to be delivered to Landlord in satisfaction of all applicable Lease conditions ("***Post-Succession Date Accrued Contribution Payments***"), then Lender or Successor Landlord, as applicable, shall have the right (but not the obligation) to fund such Pre-Succession Date Accrued Contribution Payments or such Post-Succession Date Accrued Contribution Payments, to Tenant, in each case, within ten (10) Business Days after delivery of such written notice by Tenant to Lender or Successor Landlord, as applicable, (and if Lender or Successor Landlord, as applicable, funds such Pre-Succession Date Accrued Contribution Payments or such Post-Succession Date Accrued Contribution Payments to Tenant, then, in each case, such funding shall represent Tenant's sole remedy in respect of such Pre-Succession Date Accrued Contribution Payments or such Post-Succession Date Accrued Contribution Payments, as applicable); <u>provided</u>, that if Lender does not fund the Pre-Succession Date Accrued Contribution Payments or if Successor Landlord does not fund the Post-Succession Date Contribution Payments, as applicable, within such ten (10) Business Day period, then Tenant (as its sole remedy in respect of such Pre-Succession Date Accrued Contribution Payments or such Post-Succession Date Accrued Contribution Payments, as applicable) shall have the right to offset such Pre-Succession Date Accrued Contribution Payments or such Post-Succession Accrued Contribution Payments, as applicable, together with interest thereon at the Lease Interest Rate from the expiration of the ten (10) Business Day period above until so offset, against the next installments of rent coming due under the Lease, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) &nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding anything to the contrary, upon the occurrence of the Succession Date, (A) Tenant shall immediately commence paying all rent and other amounts due and payable under the Lease from and after the Succession Date regardless of the existence of any Landlord default under the Lease (other than Pre-Succession Date Accrued Contribution Payments that Tenant was entitled to take prior to the Succession Date as provided in <u>Section 6(a)(iii)</u> above to the extent not previously applied against rental obligations of Tenant under the Lease and Post-Succession Date Accrued Contribution Payments that Tenant is entitled to pursuant to <u>Section 6(a)(iii)</u> above), and (B) Successor Landlord shall not be subject to any abatements, defense or offsets which Tenant may have against any prior landlord (including, without limitation, Landlord), except (x) any Pre-Succession Date Accrued Contribution Payments that Tenant was entitled to take prior to the Succession Date as provided in <u>Section 6(a)(iii)</u> above to the extent not previously applied against rental obligations of Tenant under the Lease), (y) any Post-Succession Date Accrued Contribution Payments that Tenant is entitled to take pursuant to <u>Section 6(a)(iii)</u> above, and (z) if such offsets or defenses arise out of a Continuing Default and then only to the extent accruing from and after the occurrence of such Continuing Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) &nbsp;&nbsp;&nbsp;&nbsp; With respect to any Continuing Default, Tenant shall have the right to exercise its rights under the Lease with respect thereto to the extent expressly provided in <u>Section 4</u> above. This <u>Section 6</u> shall not restrict any rights of Tenant under the Lease with respect to any default (other than any Excluded Default) by Successor Landlord following the Succession Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) &nbsp;&nbsp;&nbsp;&nbsp; In the event of the termination of the Lease by reason of any default thereunder by Landlord (other than (x) a termination of the Lease pursuant to the exercise of Tenant's termination rights pursuant to the express provisions of Section 3.2 of the Lease, subject to <u>Section 6(b)</u> below), (y) a Continuing Default which is not cured within the Successor Landlord Cure Period, or (z) any default (other than any Excluded Default) by Successor Landlord following the Succession Date), upon Lender's or Successor Landlord's written request, given within thirty (30) days after any such termination, Tenant, within fifteen (15) days after receipt of such request, shall execute and deliver to Lender, Successor Landlord or its respective designee or nominee a new lease of the Premises for the remainder of the term of the Lease upon all of the terms, covenants and conditions of the Lease (and the terms, covenants and conditions of this Agreement). Lender shall have the right, without Tenant's consent, to foreclose the Security Instrument or to accept a deed in lieu of foreclosure or to exercise any other remedies under the Security Instrument; provided, further, that in no event shall any such foreclosure or exercise of remedies result in the termination of the Lease or disturb Tenant's possession or use of the Premises if the Successor Landlord is required to recognize Tenant in accordance with the provisions of <u>Section 2(a)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, the provisions of <u>Section 6(a)</u> above shall not apply with respect to Tenant's right to terminate the Lease in accordance with Section 3.2 of the Lease, which shall accrue, and which right Tenant may exercise or have the benefit of, as applicable, in accordance with the terms and conditions of the Lease. If Tenant has not previously terminated or elected to terminate the Lease due to Landlord's failure to perform and satisfy the Delivery Conditions on or prior to the Outside Date, and the Succession Date occurs after the Outside Date or, following the Succession Date, Successor Landlord elects, in its sole discretion, that it does not intend to complete the Delivery Conditions or Successor Landlord determines it is reasonably likely that Successor Landlord would not be able, using commercially reasonable efforts, to satisfy the Delivery Conditions on or prior to the Outside Date, then Successor Landlord shall have the right to give notice to Tenant that Tenant has ten (10) Business Days from the date of said notice to terminate the Lease. If Tenant does not elect to so terminate the Lease, then Tenant shall have no further right to terminate the Lease pursuant to Section 3.2 of the Lease so long as Successor Landlord is diligently prosecuting the performance and satisfaction of the Delivery Conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Anything to the contrary contained in the Lease or this Agreement notwithstanding, in no event shall Successor Landlord shall have any obligation or incur any liability with respect to any of the following (collectively, the "***Excluded Default Items***"): (a) the construction or completion of the improvements in which the Premises are located or for completion of the Premises or any improvements for Tenant's use and occupancy (including, without limitation, satisfaction of the Delivery Conditions or the Expansion Space Delivery Conditions), (b) any indemnification obligations set forth in Section 11.14 the Lease that have accrued against any prior landlord (including, without limitation, Landlord) prior to the Succession Date, (c) any representations or warranties of any nature whatsoever, including, without limitation, any representations or warranties with respect to use, compliance with zoning, hazardous wastes or environmental laws, Landlord's title to the Property, habitability, fitness for purpose or possession, or Landlord's authority or other corporate authorization matters, (d) any defaults arising out of any covenant in the Lease which is personal to Landlord, (e) any default by Landlord which is not susceptible to cure by Successor Landlord (including, without limitation, any lease, encumbrance or similar act or omission by Landlord that prevents Successor Landlord from complying with the landlord's obligations under ROFO Option, Expansion Option or Renewal Option set forth in the Lease), or (f) any default by Landlord which Successor Landlord is not liable or responsible for pursuant to the express provisions of <u>Section 4</u> above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Anything in this Agreement or the Lease to the contrary notwithstanding, if Successor Landlord shall acquire title to the Property, Successor Landlord's obligations under the Lease, as described herein, shall continue only during the period during which Successor Landlord owns the Property, and Successor Landlord shall have no obligation, nor incur any liability, beyond Successor Landlord's then interest, if any, in the Property, and Tenant shall look exclusively to the same for the payment and discharge of any obligations or liability imposed upon Successor Landlord hereunder, under the Lease or under any new lease of the Premises.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant acknowledges, without limitation, that the subordinations provided hereby include a full and complete subordination by Tenant of any options it may have to purchase all or any portion of the Property (including any rights of first refusal or similar rights to purchase all or any portion of the Property), whether such rights are provided in the Lease or elsewhere. Tenant hereby further agrees that any such option to purchase or right of first refusal shall be expressly inapplicable to any foreclosure of the Security Instrument or acquisition of the Property or any interest therein by Successor Landlord by conveyance in lieu thereof or similar transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant shall deliver to Lender, promptly after the execution thereof, a copy of the executed written agreement by and between Landlord and Tenant as set forth in Section 7(a)(iv) of Exhibit C to the Lease; provided, that, if Landlord fails or otherwise does not execute such written agreement, Tenant may deliver to Lender a written unilateral acknowledgement from Tenant for the benefit of Lender pursuant to which Tenant unconditionally and irrevocably acknowledges and agrees that the Access Date has occurred (either such written agreement or acknowledgment, the "***Access Date Acceptance Agreement***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If any portion or portions of this Agreement shall be held invalid or inoperative, then all of the remaining portions shall remain in full force and effect, and, so far as is reasonable and possible, effect shall be given to the intent manifested by the portion or portions held to be invalid or inoperative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Agreement shall be governed by and construed in accordance with the laws of the State in which the Property is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lender shall not, either by virtue of the Security Instrument, the Assignment of Leases or this Agreement, be or become a mortgagee in possession or be or become subject to any liability or obligation under the Lease or otherwise until the Succession Date, and then such liability or obligation of Successor Landlord under the Lease shall extend only to those liability or obligations accruing subsequent to the Succession Date as modified by the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All notices or other communications required or permitted to be given pursuant to this Agreement shall be in writing and shall be considered as properly given if (a) mailed by first class United States mail, postage prepaid, registered or certified with return receipt requested; (b) by delivering same in person to the intended addressee; or (c) by delivery to an independent third party commercial delivery service for same day or next day delivery and providing for evidence of receipt at the office of the intended addressee. Notice so mailed shall be effective upon its deposit with the United States Postal Service or any successor thereto; notice sent by a commercial delivery service shall be effective upon delivery to such commercial delivery service; notice given by personal delivery shall be effective only if and when received by the addressee; and notice given by other means shall be effective only if and when received at the office or designated address of the intended addressee. For purposes of notice, the addresses of the parties shall be as set forth on the first page; provided, however, that (i) from and after the date that Tenant occupies the Premises for the conduct of its business, Tenant's address for notices shall be the Premises, (ii) copies of notices to Tenant shall be simultaneously delivered to Patterson Belknap Webb & Tyler LLP, 1133 Avenue of the Americas, New York, New York 10036, Attention: Robert M. Safron, Esq., and (iii) every party shall have the right to change its address for notice hereunder to any other location within the continental United States by the giving of thirty (30) days' notice to the other parties in the manner set forth herein. Any notice to be given by any party may be given by such party's attorney.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors, successors-in-title and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If this Agreement conflicts with the Lease, then this Agreement shall govern as between the parties and Lender and any Successor Landlord, including upon any attornment pursuant to this Agreement. This Agreement supersedes, and constitutes full compliance with, any provisions in the Lease that provide for subordination of the Lease to, or for delivery of nondisturbance agreements by the holder of, the Security Instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Agreement may be executed in any number of counterparts, each of which shall be effective only upon delivery and thereafter shall be deemed an original, and all of which shall be taken to be one and the same instrument, for the same effect as if all parties hereto had signed the same signature page. Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon and may be attached to another counterpart of this Agreement identical in form hereto but having attached to it one or more additional signature pages.

[THE REMAINDER OF THE PAGE IS INTENTIONALLY BLANK]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement under seal to be effective as of the date set forth in the first paragraph hereof.

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| |
|:---|
| **LENDER**: |
| BREDS II MORTGAGE CORP., <br> a Delaware corporation |

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By:

Name:   <br> Title:  

[**CHANGE NOTARY FORM AS MAY BE REQUIRED**]

State of) <br> County of ______________________)

On _________________________, before me, __________________________________________,

(insert name of notary)

Notary Public, personally appeared __, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of ___________ that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature_____________________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Seal)

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| |
|:---|
| **TENANT**: |
| PERSHING SQUARE CAPITAL MANAGEMENT, L.P., <br> a Delaware limited partnership |

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By:

Name:   <br> Title:  

[**CHANGE NOTARY FORM AS MAY BE REQUIRED**]

State of) <br> County of ______________________)

On _________________________, before me, __________________________________________,

(insert name of notary)

Notary Public, personally appeared __, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of ___________ that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature_____________________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Seal)

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The undersigned Landlord hereby consents to the foregoing Agreement and confirms the facts stated in the foregoing Agreement.

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| |
|:---|
| **LANDLORD**: |
| GEORGETOWN ELEVENTH AVENUE OWNERS, LLC, a Delaware limited liability company |

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By:

Name:   <br> Title:  

[**CHANGE NOTARY FORM AS MAY BE REQUIRED**]

State of) <br> County of ______________________)

On _________________________, before me, __________________________________________,

(insert name of notary)

Notary Public, personally appeared __, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of ___________ that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature_____________________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Seal)

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**<u>Exhibit A</u>**

[Property Legal Description]

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<u>EXHIBIT U</u>

<u>FORM OF MEMORANDUM OF LEASE</u>

(See attached.)

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MEMORANDUM OF LEASE

between

GEORGETOWN ELEVENTH AVENUE OWNERS, LLC

as Landlord

and

PERSHING SQUARE CAPITAL MANAGEMENT, L.P.

as Tenant

Dated: As of [________ __], 2016

Location of Premises

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| | |
|:---|:---|
| Address: | 787 11<sup>th</sup> Avenue |
| Block: | 1102 |
| Lot: | 29 |
| City, County and State of New York | City, County and State of New York |

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Record and Return to: <br> Patterson Belknap Webb & Tyler LLP

1133 Avenue of the Americas <br> New York, New York 10036 <br> Attention: Robert M. Safron, Esq.

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RECORDING REQUESTED BY AND

AFTER RECORDING, RETURN TO:

Patterson Belknap Webb & Tyler LLP

1133 Avenue of the Americas

New York, New York 10036

Attention: Robert M. Safron, Esq.

SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE

<u>MEMORANDUM OF LEASE</u>

Capitalized terms not otherwise defined in this memorandum of lease (this "***Memorandum***") shall have the meanings set forth in the lease described below (the "***Lease***").

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| | |
|:---|:---|
| NAME AND ADDRESS <br> OF LANDLORD: | GEORGETOWN ELEVENTH AVENUE OWNER, LLC<br> c/o The Georgetown Company <br> 667 Madison Avenue<br> New York, New York 10065<br> Attn: Adam Flatto |
| NAME AND ADDRESS <br> OF TENANT: | PERSHING SQUARE CAPITAL MANAGEMENT, L.P.<br> 888 Seventh Avenue<br> 42<sup>nd</sup> Floor<br> New York, New York 10019<br> Attn: Nicholas Botta |
| DATE OF LEASE: | [_____________ __], 2016 |
| DESCRIPTION OF<br> PREMISES: | The Premises consists of the entire ninth floor and portions of the tenth floor, mezzanine level and roof of the building located at 787 11<sup>th</sup> Avenue, New York, New York (the "<u>Building</u>"), located at the land more particularly described in Exhibit A annexed hereto (the "<u>Property</u>"). |
| EXPIRATION DATE: | Fifteen (15) years from the Rent Commencement Date (as more particularly described in the Lease) or such earlier date on which the Lease may be terminated in accordance with its terms. |
| EXTENSION OPTIONS: | As more particularly set forth in the Lease, Tenant has options to extend the Lease for either (a) three (3) successive extended terms of five (5) years each or (b) one (1) extended term of fifteen (15) years. |
| RIGHT OF FIRST OFFER: | As more particularly set forth in the Lease, Tenant has a right of first offer to lease certain space in the Building vertically or horizontally contiguous with the Office Premises or located on the roof of the Building. |

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| | |
|:---|:---|
| EXPANSION OPTION: | As more particularly set forth in the Lease, Tenant has the option to lease the entire balance of the tenth floor of the Building by written notice delivered prior to the Outside Expansion Notice Date. |
|  | This instrument is intended to be only a memorandum of lease, and reference to the Lease is hereby made for all of the terms, conditions and covenants of the parties. This Memorandum shall not be construed to modify, change, vary or interpret the Lease or any of the terms, covenants or conditions thereof. In all instances, reference to the Lease should be made for a full description of the rights and obligations of the parties. The recordation of this Memorandum is in lieu of, and with like effect as, the recordation of the Lease. |

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**[SIGNATURES ON NEXT PAGE]** 

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IN WITNESS WHEREOF, Lessor and Lessee have duly executed this Memorandum on the year and date first written above.

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| |
|:---|
| **LANDLORD:** |
| **GEORGETOWN ELEVENTH AVENUE OWNERS, LLC**, <br> a Delaware limited liability company |

---

By: ______________________________ <br> Name: <br> Title:

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| |
|:---|
| **TENANT:** |
| **PERSHING SQUARE CAPITAL MANAGEMENT, L.P.**, <br> a Delaware limited partnership |
| By: PS Management GP, LLC, its General Partner |

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By: ______________________________ <br> Name: <br> Title:

------

**<u>ACKNOWLEDGMENTS</u>**

STATE OF NEW YORK) ) ss.: <br> COUNTY OF NEW YORK)

On the ____ day of ____________ in the year ____ before me, the undersigned, a Notary Public in and for said State, personally appeared ____________, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s) or the person upon behalf of which the individual(s) acted, executed the instrument.

__________________________

Notary Public

STATE OF NEW YORK) ) ss.: <br> COUNTY OF NEW YORK)

On the ____ day of ____________ in the year ____ before me, the undersigned, a Notary Public in and for said State, personally appeared ____________, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s) or the person upon behalf of which the individual(s) acted, executed the instrument.

__________________________

Notary Public

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EXHIBIT A

<u>Legal Description</u>

ALL that certain plot, piece or parcel of land, situate, lying and being in the Borough of Manhattan, County of New York, City and State of New York, bounded and described as follows:

BEGINNING at a corner formed by the intersection of the southerly side of 55th Street with the westerly side of 11th Avenue;

RUNNING THENCE southerly along the westerly side of 11th Avenue, 200 feet 10 inches to the corner formed by the intersection of the westerly side of 11th Avenue with the northerly side of 54th Street;

THENCE westerly along the northerly side of 54th Street, 225 feet;

THENCE northerly and parallel with the westerly side of 11th Avenue, 200 feet 10 inches to a point on the southerly side of 55th Street, distant 225 feet westerly from the corner formed by the intersection of the southerly side of 55th Street with the westerly side of 11th Avenue; and

THENCE easterly along the southerly side of 55th Street, 225 feet to the point or place of BEGINNING.

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<u>EXHIBIT V</u>

<u>INTENTIONALLY OMITTED</u> 

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<u>EXHIBIT W</u>

<u>LIST OF SPECIAL MASTERS</u>

1.) Levien & Company, Inc.

570 Lexington Ave <br> New York, N.Y. 10022 <br> P: [phone number]

Principals: Kenneth Levien, AIA or Tyler Donaldson, AIA

2.) Zubatkin Owner's Representation, LLC

333 W 52nd Street - Suite 601

New York, N.Y. 10019

P: [phone number]

Owner / CEO: Martin Zubatkin

3.) Gorton & Partners, LLC

20 W 37th Street - 11th Fl

New York, N.Y. 10018

P: [phone number]

Principal / Founder: Robert Gorton

4.) LiRo Group

111 Broadway - Suite 501 <br> New York, N.Y. 10006

P: [phone number]

Principal / CEO: Luis Tormenta, P.E.

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<u>EXHIBIT X</u>

<u>EXPANSION SPACE DELIVERY CONDITIONS</u>

(See attached.)

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| | |
|:---|:---|
| ***FINAL*** | ***09/30/16*** |

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**Exhibit X for Pershing Lease**

**787 Eleventh Delivery Conditions for Expansion Space**

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| | |
|:---|:---|
| **Overview:** | Landlord shall be constructing a new 10<sup>th</sup> floor in accordance with plans and specifications dated July 15, 2016. Should Tenant elect to exercise its option for the Expansion Space (as set forth elsewhere in the Lease) on or before the scheduled Access Date (as defined in the Lease), Landlord shall deliver the space to Tenant ready for Tenant's fit-out pursuant to the conditions listed below in the Access Conditions section (the "Access Conditions"). The date on which a certificate of Substantial Completion (as defined elsewhere in this Lease) for the core & shell work listed in the Access Conditions section (Exhibit X-A of this Exhibit X) is issued by the Architect and/or Owner's engineering consultants, as may be appropriate, shall be considered the actual Access Date.<br>Should Tenant elect to exercise its option after the scheduled Access Date, then the Expansion Space shall be delivered to Tenant pursuant to the conditions listed below in the Delivery Conditions (Exhibit X-B of this Exhibit X) (the "Delivery Conditions") by the Base Building Delivery Date (as defined in the Lease) as adjusted by Article 23 and Article 26 of the Lease.<br>Upon Substantial Completion of the Delivery Conditions work, the items described herein shall be installed and fully operational, subject to customary punchlist, balancing, and all other testing/commissioning work. Exhibit X-B is intended as a supplement to the items previously provided for in Exhibit X-A (the "Access Conditions").<br>As a general note, all Landlord and Tenant provided or performed design and construction shall meet the requirements of the latest editions / revisions of all applicable Codes, rules, ordinances, handicapped access provisions, as well as industry accepted "best practices".<br>|
| ***<u>ACCESS CONDITIONS – EXHIBIT X-A</u>*** | ***<u>ACCESS CONDITIONS – EXHIBIT X-A</u>*** |
| **Floors:** | Landlord shall provide the Expansion Premises with floors that shall be level to approximately 1/8" over 10 ft.<br>The Expansion Premises shall have a maximum of 70 lbs. per sq. ft. of total superimposed live and dead load capacity (consisting of 50 lbs. per sq. ft. live load, plus 20 lbs. per sq. ft. for partitions, ceiling and ductwork construction, etc.). Limited floor "spot" loading of up to 100 psf total load may be acceptable, subject to Landlord's structural engineer's approval in each case and location. Reinforcing of these limited "spot" load increases, to a maximum total imposed load (live + dead) of up to 100 psf, shall be provided by the Landlord.<br>|

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| | |
|:---|:---|
| ***FINAL*** | ***09/30/16*** |

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| | |
|:---|:---|
| **Ceiling / Ceiling Heights:** | Landlord shall provide the Expansion Premises with an exposed, unfinished ceiling, consisting of a galvanized metal "Q" deck, ready to receive Tenant's ductwork, sprinkler piping, electrical work, and hung ceiling system. Structural steel framing, consisting of beams, filler beams and girders shall also be exposed, as shown on the revised Structural Plans dated July 15, 2016. All structural elements shall have spray-on cementitious type fireproofing (W.R. Grace "Monokote" or equal) applied, in thicknesses as required by Code. Floor to ceiling height as measured from the top of the unpolished concrete floor to the underside of the metal deck of the structural slab above shall be approximately 14'- 5", however this shall be reduced by the depth of the steel framing (beams, filler beams, girders, and gusset connection plates, as well as anticipated local structural deflection), as well as spray-on cementitious fire proofing in Code required thicknesses, resulting in reduced clear ceiling heights in those areas to approximately 12'-4". Further, in certain locations, required ductwork, fire sprinkler piping, electrical conduit, and/or plumbing piping may further reduce clear ceiling heights. Ceiling heights under structural elements at specific locations shall be as shown on the revised Architectural, Structural, and MEPS Plans dated July 15, 2016.<br>|
| **Column Grid & Structure:** | Landlord shall provide the Expansion Space with an exposed steel column grid measuring approximately 32'-0" x 32'-0", as shown on the revised Structural Plans dated July 15, 2016. The steel wide flange ("I" beam) columns shall be as shown on the Structural Plans, with varying dimensions, and shall include "Monokote" or equal cementitious spray-on fireproofing in thicknesses necessary to achieve a Code required fire rating.<br>|
| **Curtain Wall / Window Wall:** | Landlord shall provide the Expansion Office Premises with a window wall design incorporating insulating glass units ("IGU's"), including a partially reflective, low emissivity coating, in a proprietary system with aluminum mullions spaced approximately every 5'-0" feet, as shown on the Architectural Plans dated July 15, 2016, and approved concept plans prepared by the manufacturer (Skyline Windows, Inc.) and approved by Landlord's architect and window wall consultant. On the Access Date, the Expansion Premises shall be enclosed and water tight, except at those locations required for Landlord's hoist (and, at Tenant's option, Tenant's extended use of Landlord's hoist for its fit-out work), temporary protective scaffolding and "tie-back" supports for same, a "Chicago" boom, and/or other vertical lifting and/or rigging equipment that may be required for Landlord's work. |

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| | |
|:---|:---|
| ***FINAL*** | ***09/30/16*** |

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| | |
|:---|:---|
| **Core Elements:** | The permanent fire stairs, elevator shafts, core mechanical rooms, core mechanical shafts, telecommunications closets, janitor closet, core bathrooms, mechanical, electrical, and telecommunications risers, and other core elements (collectively, the "Core Elements") as enumerated and situated according to the revised Architectural and Mechanical / Electrical plans dated July 15, 2016, shall be demised on the 10<sup>th</sup> floor utilizing either concrete masonry units ("CMU") or drywall, as appropriate. While these Core Elements may not be operational as of the Access Date, Tenant shall be able to commence its fit out. Those locations receiving sheetrock shall be taped and spackled, ready to receive Tenant's finish treatment(s). |
| **Plumbing /Temporary Water/Gas Service:** | None. |
| **Environmental:** | Landlord shall provide Tenant with an ACP-5 for the Expansion Premises within five (5) business days after Tenant's submission to Landlord of Tenant's building permit filing set, in order for Tenant to secure the necessary permit(s) for its fit-out work. |
| **Life Safety / Sprinkler / Fire Alarm:** | Tenant shall cooperate with Landlord in providing, with Tenant's space layout, an appropriate, Code compliant means of secondary egress from the Expansion Space at Tenant's sole cost and expense, including any rated access corridor(s) required for fire egress from the Expansion Space, however Landlord shall provide, at its sole cost and expense, any required multi-tenant corridor around the central elevator core.<br>***<u>Fire Sprinkler:</u>*** A temporary sprinkler loop, hydraulically sized for a "Light Hazard" density, shall be installed at an elevation above the concrete slab of approximately 9'- 6", serving approximately 225 sq ft per head, with brass upright pendant-type heads, or as otherwise required by applicable Code or regulation. Piping mains, branches, and drops shall be static pressure tested. Temporary sprinkler piping and heads shall be furnished and installed by Landlord. The eventual removal of the temporary sprinkler loop and replacement with Tenant's sprinkler piping and permanent heads, in its entirety and designed in full accordance with applicable codes and reference standards, shall be performed by Tenant at its' sole cost and expense. Landlord shall provide two (2) combined fire standpipes, with two (2) OS&Y zone valves located at each standpipe in two (2) of the three (3) the fire stairs on the 10<sup>th</sup> floor, complete with flow and tamper monitoring, for Tenant's connection of its mains, branch piping, and sprinkler heads.<br>|

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| | |
|:---|:---|
| ***FINAL*** | ***09/30/16*** |

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| | |
|:---|:---|
| **** | ***<u>Fire Alarm:</u>*** Landlord shall provide a Data Gathering Panel ("DGP") on the 10<sup>th</sup> floor for Tenant's furnishing and installation of fully Code compliant wiring and detection/annunciation devices in the Expansion Premises. Tenant devices and wiring shall be fully compatible with Landlord's permanent building-wide multiplexed Fire Management System ("FMS"). Tenant shall provide a list of devices and other points to Landlord for testing and programming by Landlord's FMS vendor; initial testing and FMS programming shall be at Tenant's expense. Tenant, at Tenant's option, may contract directly with Landlord's FMS vendor, provided however that Landlord shall have the right to review and witness the programming and testing protocol. Landlord shall provide, as part of its core & shell work, Fire Warden stations, pull stations, smoke detectors, and all other devices required pursuant to Code in all core & shell spaces, including without limitation fire stairs, core toilets, machine rooms, electric and I/T closets, etc. and in the multi-tenant corridor Landlord shall be providing on the 10<sup>th</sup> floor.<br>During Tenant's construction work, Tenant shall provide any Code required temporary wiring for Tenant's detection and/or annunciation devices, which shall be wired into Landlord's existing FMS.<br>|
| **Electric, I/T, Security:** | Landlord shall provide sufficient temporary electrical capacity for Tenant to complete its construction work within a timely fashion. All electrical work to be performed in the Building shall be under the supervision of NYC Licensed Electricians, and shall comply with all applicable Codes and best practices. |

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| | |
|:---|:---|
| ***FINAL*** | ***09/30/16*** |

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| | |
|:---|:---|
| **** |  |
| ***<u>DELIVERY CONDITIONS – EXHIBIT X-B</u>*** | ***<u>DELIVERY CONDITIONS – EXHIBIT X-B</u>*** |
| **Overview of Delivery Conditions:** | The core & shell equipment contribution over ambient noise levels and/or any of Tenant's equipment shall not exceed a level of NC-40, when measured at a distance of 5'-0" from core & shell machine room demising walls. Further, all of Landlord's core & shell equipment shall be equipped with vibration isolation and/or suppression devices, as specified by Landlord's acoustical and vibration consultant. |
| **HVAC:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***<u>Heating & Cooling:</u>***<br> Landlord shall furnish and install one (1) new, 60 ton, water cooled VAV DX unit, in the local 10<sup>th</sup> floor machine room.<br>The DX unit machine room shall be served with outside air and exhaust provisions, including any required dampers and smoke detectors for same, to Code requirements. The DX unit shall be equipped with factory provided "local smart" controls, ready for Tenant furnished and installed (at Tenant's expense) distribution ductwork, variable air volume boxes, automatic temperature controls, etc. The unit shall have a "hot deck" for heating using either hydronic (or at Landlord's option) L.P. steam coils, to be used in conjunction with Tenant provided perimeter hydronic overhead air distribution; hot water to be provided by Landlord via a hydronic perimeter loop, fed from Landlord's gas fired modular boilers, together with required circulation pumps and controls.<br>The HVAC System shall be designed with the capability of providing the following indoor conditions:<br>Cooling / Summer: 74 deg F, +/- 2 deg F at approximately 50% RH, when outdoor conditions do not exceed 92 deg F dry bulb, and/or 75 deg F wet bulb, based on a Tenant occupancy of 1 person / 150 usable sq ft. The base building system shall not be provided with independent humidity control.<br>Heating / Winter: 68 deg F, +/- 2 deg F, via Tenant supplied and installed overhead air distribution, when the outside air temperature is not below 11 deg F dry bulb.<br>Landlord's DX unit shall be provided at 460 / 265 volts. The DX unit shall be installed in the core & shell machine room provided as part of Landlord's work, in the location as shown on plans dated July 15, 2016, and shall include: fresh air and exhaust provisions (as set forth above), a concrete housekeeping pad, appropriate vibration and acoustic isolation, as well as unit discharge and return ductwork (to be picked-up at the local machine room wall), a return air sound trap, and any Code required dampers, smoke detection devices and connection of same to Landlord's fire management system. Landlord shall also provide all required electrical power and wiring, with the DX unit fed from Tenant's 460 / 265 volt riser (See Electrical section, below), condenser water valves and piping, condensate floor drains and piping, as well as initial flush, start-up / testing, and water balancing.<br>|

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------

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| | |
|:---|:---|
| ***FINAL*** | ***09/30/16*** |

---

Further, this DX unit shall be supplied from Tenant's separately metered electric service. Tenant shall be responsible for this unit's electrical power consumption.<br>***<u>Supplemental Cooling:</u>*** Should up to 15 tons of condenser water be available for supplemental cooling loads upon exercise of Tenant's Expansion Option, Landlord and Tenant shall work together to accommodate Tenant's incremental supplemental cooling loads.<br>Locations of Landlord's condenser water risers shall be proximate to Base Building elevator core. For design purposes, it is anticipated that the cooling tower shall operate at a 12 deg F delta t". Tenant's cost for after hours, overtime use of supplemental condenser water, to the extent available, is provided for elsewhere in this Lease.<br>Landlord's condenser water system shall be provided with a water-side economizer (so called "free cooling") via a plate frame heat exchanger with secondary loop pumps and controls, for economized operation during the Spring and Fall months when outside air temperature and humidity conditions are suitable.<br>Landlord shall winterize at least one cooling tower providing for year-round condenser water availability and shall either drain-down or partially winterize the other cooling tower cells during the winter months (i.e. from the beginning of November until the end of March). Towers shall be equipped with full manual bypass capability. Pumps shall be equipped with variable frequency drives.<br>***<u>Basis of Design</u>:*** The Basis of Design for all systems and equipment shall be in accordance with system performance specifications outlined above, and the latest revision to the New York City Building Code in force at the time of filing for the building permit, as well as the ECCCNYS (2014 Revision, <u>et</u> <u>seq</u>), and applicable requirements in the latest revision of the ASHRAE Design Standard 90.1, and industry accepted "best practices" for Class "A" office buildings.<br>***<u>Smoke Dampers & Fire Stopping</u>:*** Consistent with the Basis of Design, and as required by Code, Landlord shall be responsible for installation of all passive fire-stopping and any required fire smoke dampers, each as applicable, at demising walls between Tenant's space and core and shell, and at any vertical shafts, perimeter walls and slabs.<br>

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| | |
|:---|:---|
| ***FINAL*** | ***09/30/16*** |

---

**Electric:** ***<u>Overview:</u>*** All electrical work to be performed in the Building by either Landlord or Tenant shall be performed by NYC Licensed Electrical Contractors and shall comply with all applicable New York City and National Electrical Codes, rules, and regulations.<br>***<u>Service:</u>***<br>Electric for the Expansion Space shall be provided from Tenant's separately metered service, as set forth in Exhibits I and J of this Lease, however in accordance with the Power Schedule, below.<br>Landlord will, at its expense, provide sub-feeders from Landlord's main electric distribution panel, at 120 / 208 volts, to the Expansion Space electrical room on the 10<sup>th</sup> floor. Landlord will also provide two (2) - 42 pole 120 / 208 volt lighting and power panels for Tenant's installation of its local distribution and branch circuits.<br>***<u>Power Schedule:</u>***<br>Tenant acknowledges that its electrical load in the Expansion Space, to be supplied at 120 /208 volt, 3 phase, 4 wire, shall not exceed a demand load of 12 watts / rentable sq. ft. ("sfr"), or a maximum Tenant demand load of not more than 224 KW, exclusive of the power consumed by the Expansion Space DX unit.<br>Landlord shall, at its expense (as set forth in Lease Exhibits I & J) provide electrical service at 120 / 208 volts, fed from dedicated core & shell risers on Landlord's meter, together with required distribution panels, branch circuits, lighting and other devices to core & shell elevator lobbies, stairs, toilets, electric and I/T closets, as well as the roof amenity space; this service to be located in the electrical closet feeding the Expansion Space on the 10<sup>th</sup> floor.<br>***<u>Power to DX Unit:</u>*** Landlord shall provide power wiring to the 60 ton water cooled DX unit serving the Expansion Space, at 460 / 265 volts from Tenant's distribution panel power to be derived from and paid for via Tenant's metered service, also as set forth above.<br>

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| | |
|:---|:---|
| ***FINAL*** | ***09/30/16*** |

---

---

| | |
|:---|:---|
| | Landlord shall also provide lighting and convenience outlets, appropriate fire / smoke detection devices, fire sprinklers, wiring for Code required automatic dampers, and any other auxiliary devices required by Code in the Expansion Space DX unit machine room. |
| **Plumbing / Bathrooms:** | ***<u>Overview:</u>*** All plumbing and related work performed in the Building by either Landlord or Tenant shall be performed by NYC Licensed Plumbing contractors, and shall conform to the latest revision of applicable sections of the New York City Building Code.<br>***<u>Potable Water:</u>*** Landlord shall provide one (1) 3/4" copper potable water riser, centrally located adjacent to the Base Building elevator core, with a valved take-off for Tenant's domestic water requirements and use in the Expansion Space.<br>Waste: Core & Shell sanitary / vent stacks shall be as provided for in Lease Exhibits I & J (i.e. Landlord is not providing any supplemental sanitary / vent stacks for the Expansion Space).<br>Core Bathrooms: Landlord shall, as part of its core & shell work, provide restrooms on the 10<sup>th</sup> floor, consistent with the finishes and specifications for the core bathrooms as set forth in Lease Exhibits I & J, and on the July 15, 2016 revised drawings.<br>|
| **Environmental:** | Landlord shall represent and warranty that once all Landlord's Base Building Work is completed, the non-auto portion of the Building shall either be free of hazardous materials, or any remaining hazardous materials shall be properly encapsulated, in full accordance with applicable Codes and Standards for the remediation of hazardous material. That representation notwithstanding, Landlord shall provide the appropriate ACP-5 form(s) for Tenant's use in obtaining Tenant's building permit for the Expansion Space within five (5) business days after receiving Tenant's complete building department filing drawings submitted to Landlord for approval. |
| **Mutual Coordination:** | Landlord and Tenant shall mutually coordinate Landlord's Base Building Work, to the extent reasonable, so as to limit the interruption and interference to the daily operation of Tenant's initial alterations, as reasonably possible, while not interfering with or unduly burdening (from a cost or time perspective) Landlord's completion of the Base Building Work. |

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------

---

| | |
|:---|:---|
| ***FINAL*** | ***09/30/16*** |

---

---

| | |
|:---|:---|
| **Riser Drawings:** | Landlord's MEP and Fire Protection engineering consultant, ICOR Associates, has provided Tenant's MEP engineer with a complete revised set of MEPS drawings, dated July 15, 2016 and distributed to Tenant by providing access passwords to the project "drop box" on July 17, 2016.<br>Tenant shall incorporate and fully coordinate the foregoing into its design.<br>**______________________________________________**  |

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<u>EXHIBIT Y</u>

<u>CONDUIT / RISER SPACE</u> 

<u>Intentionally omitted</u><br>

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<u>EXHIBIT Z</u>

<u>LICENSE AREA</u>

The License Area shall constitute (a) the outdoor terrace area appurtenant to the portion of the Office Premises located on the 9<sup>th</sup> Floor of the Building and (b) a portion of the roof the Building, all as shown on the floor plan annexed to this Exhibit Z and forming a part hereof.

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[Floor Plan]<br>

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[Floor Plan]

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<u>EXHIBIT AA</u>

<u>APPROVED CONTRACTORS</u>

 

<br> <u>Intentionally omitted</u> <br>

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<u>EXHIBIT BB</u>

<u>FORM OF LIEN WAIVER</u> 

(See attached.)

------

**<u>PARTIAL RELEASE AND WAIVER OF LIEN</u>**

IN CONSIDERATION OF PAYMENT made by ____________________ Construction Company, Inc. ("Contractor") to the UNDERSIGNED totaling $__________________ for work, labor, materials, and equipment furnished through the period ending ________ _____ , 20____ in connection with the ________________ work performed pursuant to that certain subcontract by and between the UNDERSIGNED and ____________________________ Construction Company, Inc. dated _______________ and all subsequent approved Change Orders thereto ("Sub Contract") for improvements to the project Owned by __________________________, with offices at ________________________________ ("Owner"), said project known as _____________________________, located at _______________________, Block __________ Lot(s) _________ in the County of __________, State of New York ("Project"):

1.) THE UNDERSIGNED hereby unconditionally releases Owner and Contractor and its surety (if any) through the date of this Partial Release and Waiver of Lien from any and all claims and demands of every kind and character, including but not limited to claims for additional labor and/or materials, equipment, delays, or for any other cause under the aforesaid subcontract or for claims by anyone claiming over or through the UNDERSIGNED in connection with work performed on the Project pursuant to the Sub Contract.

2.) THE UNDERSIGNED hereby further warrants to Owner and Contractor that (i) all workmen employed by it or its subcontractors at the Project have been fully paid to the date hereof, inclusive of all statutory withholding taxes, unemployment insurance, other mandatory deductions, and where applicable union dues, check-offs, and any such other compensation properly due, and (ii) all subcontractors, materialmen, vendors, equipment suppliers, and all others furnishing materials and/or equipment to the Project have been paid for same delivered to the Project as of the date hereof, and (iii) to the best of the UNDERSIGNED'S knowledge and belief, no such workmen, materialmen, vendors, or equipment suppliers, or anyone else claiming over or through the UNDERSIGNED have any claim, demand, or right of offset against the Project as of the date hereof.

3.) THE UNDERSIGNED stipulates that the principal, member, partner, or officer executing this Partial Release and Waiver of Lien has full power and authority to execute same on behalf of the UNDERSIGNED.

WITNESS the signature and seal of the undersigned on this ________ day of ________, 20_______.

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| |
|:---|
| Contractor: |
| Address: |
| By: |
| Title: |

---

SWORN to before me this ____________ day of ___________, 20 ____

____________________________

Notary Public, State of New York

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**<u>FINAL RELEASE AND WAIVER OF LIEN</u>**

IN CONSIDERATION OF PAYMENT made by ______________________________ ("Owner") to the UNDERSIGNED totaling $_________________ for any and all work, labor, materials, and equipment furnished in connection with the renovation and new construction work performed pursuant to that certain contract by and between the UNDERSIGNED and the Owner dated ________________ and all subsequent approved Change Orders thereto ("Adjusted Construction Contract") for improvements to Owner's project located at ________________________, Block _______ Lot(s) _________ in the County of _______, State of New York ("Project"):

1.) THE UNDERSIGNED, for itself and on behalf of its subcontractors and vendors of all tiers, hereby unconditionally releases Owner and Owner's Lender(s) of all tiers by executing this Final Release and Waiver of Lien from any and all claims and demands of every kind and character, including but not limited to claims for additional labor and/or materials, equipment, delays, or for any other cause under the aforesaid Adjusted Construction Contract or for claims by anyone claiming over or through the UNDERSIGNED in connection with work performed on the Project pursuant to the Adjusted Construction Contract.

2.) THE UNDERSIGNED hereby further warrants to Owner that (i) all workmen employed by it or its subcontractors at the Project have been fully and finally paid, inclusive of all statutory withholding taxes, unemployment insurance, other mandatory deductions, and where applicable union dues, check-offs, and any such other compensation properly due, and (ii) all subcontractors, materialmen, vendors, equipment suppliers, and all others furnishing materials and/or equipment to the Project have been finally paid for same delivered to the Project, and (iii) to the best of the UNDERSIGNED'S knowledge and belief, no such workmen, materialmen, vendors, or equipment suppliers, or anyone else claiming over or through the UNDERSIGNED have any claim, demand, or right of offset against the Project as of the date hereof.

3.) THE UNDERSIGNED stipulates that the principal, member, partner, or officer executing this Partial Release and Waiver of Lien has full power and authority to execute same on behalf of the UNDERSIGNED.

WITNESS the signature and seal of the undersigned on this ________ day of ________, 20_______.

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| |
|:---|
| Contractor: |
| Address: |
| By: |
| Title: |

---

SWORN to before me this____________ day of___________, 20_____

____________________________

Notary Public, State of New York

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<u>EXHIBIT CC</u>

<u>ELEVATOR SPECIFICATIONS</u>

<u>Intentionally omitted</u><br>

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<u>EXHIBIT DD</u>

<u>BUILDING SECURITY SPECIFICATIONS</u>

<u>Intentionally omitted</u><br>

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<u>EXHIBIT EE</u>

<u>TENANT'S ADDITIONAL COSTS ITEMS FOR BASE BUILDING WORK</u>

<u>Intentionally omitted</u>

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## Exhibit 10.10

**Exhibit 10.10**

**LIMITED LIABILITY COMPANY AGREEMENT** <br> **OF** <br> **ELEVENTH AVENUE HOLDINGS LLC** <br> **(A Delaware Limited Liability Company)**

This LIMITED LIABILITY COMPANY AGREEMENT ELEVENTH AVENUE HOLDINGS LLC (this "<u>Agreement</u>"), effective as of June 12, 2015, is made and entered into by TABLE Eleventh Avenue LLC ("<u>Managing Member</u>") and JAEB, LLC ("<u>Member</u>", and together the "<u>Members</u>").

&nbsp;&nbsp;&nbsp;&nbsp;<br>

WHEREAS, the Company was formed by the filing of a Certificate of Formation with the Secretary of State of Delaware (the "<u>Secretary</u>") on June 12, 2015 for the purpose described below; and

WHEREAS, the Members wish to enter into this Agreement in order to set forth their binding agreement as to the affairs of the Company, the conduct of its business and the rights and obligations of the Members.

NOW, THEREFORE, in consideration of the foregoing, and of the covenants and agreements hereinafter set forth, it is hereby agreed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Name</u>. The name of the Company is Eleventh Avenue Holdings LLC, or such other name as may be selected by the Managing Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Purpose.</u> The Company is formed for the object and purpose of, and the nature of the business to be conducted and promoted by the Company is, engaging in any lawful act of activity for which limited liability companies may be formed under the Delaware Limited Liability Company Act (6 <u>Del. C.</u> § 18-101, <u>et</u> <u>seq.</u>), as amended from time to time, or any successor statute thereto (the "<u>Act</u>") and engaging in any and all activities necessary or incidental to the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Registered Office</u>. The address of the registered office of the Company in the State of Delaware is 615 S. DuPont Highway, Dover, County of Kent, Delaware 19901.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Registered Agent.</u> The name and address of the registered agent of the Company for service of process on the Company in the State of Delaware is National Corporate Research Ltd., 615 S. DuPont Highway, Dover, County of Kent, Delaware 19901.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Members</u>. The names of the Members and their percentage interests are:

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| | |
|:---|:---|
| TABLE Eleventh Avenue LLC | 96.9231% |
| JAEB, LLC | 3.0769% |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Management Powers.</u> The Managing Member is TABLE Eleventh Avenue LLC. The business and affairs of the Company shall be managed by the Managing Member. The Managing Member shall have the power to do any and all acts necessary or convenient to or for the furtherance of the purpose described herein, including all powers, statutory or otherwise, possessed by members under the laws of the State of Delaware. Notwithstanding any other provision of this Agreement, the Managing Member is authorized to execute and deliver any document on behalf of the Company without any vote or consent of any other Member or person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Dissolution.</u> The Company shall dissolve and its affairs shall be wound up upon the first to occur of the following: (a) the unanimous written consent of the Members, (b) any time there are no members of the Company unless the Company is continued in accordance with the Act, or (c) the entry of a decree of judicial dissolution under Section 18-802 of the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Allocations of Profits and Losses.</u> The Company's profits and losses shall be allocated to the Member in accordance with its ownership percentage. The Managing Member shall be the "Tax Matters Partner".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Distributions.</u> Distributions shall be made to the Members at the times and in the aggregate amounts determined by the Managing Member. Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not be required to make a distribution to any Member on account of its interest in the Company if such distribution would violate the Act or other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignments.</u> The Members may at any time assign in whole or in part their limited liability company interests in the Company upon the approval of other Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Resignation.</u> Except as may be set forth in this Agreement, no Member may withdraw or resign from the Company without the consent of the Managing Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp; <u>Liability of Members.</u> Except as otherwise provided by the Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and the Members shall not be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a member of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Binding Effects; Benefits of Agreement.</u> This agreement shall be binding upon and inure to the benefit of the Member and its legal representatives, as applicable. No person other than a Member shall be entitled to any benefits under the Agreement, except as otherwise expressly provided.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts.</u> This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument, binding on the Members, and the signature of any party to any counterpart shall be deemed a signature to, and may be appended to, any other counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Further Assurances.</u> The parties hereto agree that they will cooperate with each other and will execute and deliver, or cause to be executed and delivered, all such other instruments, and will take all such other actions, as any party hereto may reasonably request from time to time in order to effectuate the provisions and purposes hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law.</u> This Agreement shall be governed by, and construed under, the laws of the State of Delaware, all rights and remedies being governed by said laws.

[The Remainder of this Page is Intentionally Left Blank]

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IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, has duly executed this Agreement as of the 12<sup>th</sup> day of June, 2015.

MANAGING MEMBER: TABLE Eleventh Avenue LLC

By: TABLE Holdings, LP its Sole Member

By: TABLE Holdings Management, LLC its General Partner

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| | |
|:---|:---|
| By: | /s/ William A. Ackman |
| William A. Ackman | William A. Ackman |
| Title: Managing Member | Title: Managing Member |

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MEMBER: JAEB, LLC

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| | |
|:---|:---|
| By: | /s/ Nicholas Botta |
| Nicholas Botta | Nicholas Botta |
| Title: | Manager |

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## Exhibit 10.12

#### Exhibit 10.12

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.**

#### PSH SHARE AGREEMENT

This PSH SHARE AGREEMENT, dated as of December 15, 2025 (this "<u>Agreement</u>"), is made by and among Pershing Square Holdco, L.P., a Delaware limited partnership ("<u>HoldCo</u>"), and the persons set forth on <u>Exhibit A</u> hereto under the heading "Name of Shareholder" (each, a "<u>Shareholder</u>").

References herein to "HoldCo" shall include successors, as the context may require, including the "IPO Corporation" as defined in the Amended and Restated Agreement of Limited Partnership of HoldCo, dated as of May 31, 2024 (the "<u>HoldCo A&R LPA</u>"). Capitalized terms used but not defined herein shall have the meanings given to such terms in the Master Transaction Agreement (as defined below).

WHEREAS, HoldCo, Pershing Square Holdco GP, LLC, a Delaware limited liability company and the sole general partner of HoldCo ("<u>HoldCo GP</u>"), and the Investors entered into that certain Master Transaction Agreement, dated as of May 31, 2024, by and among HoldCo, HoldCo GP and the Investors party thereto (the "<u>Master Transaction Agreement</u>");

WHEREAS, the HoldCo A&R LPA provides for a potential initial public offering or stock exchange direct listing of Equity Securities of HoldCo (the "<u>HoldCo IPO</u>", and such Equity Securities, the "<u>HoldCo Shares</u>");

WHEREAS, each Shareholder owns ordinary shares, no par value per share, of Pershing Square Holdings, Ltd., a Guernsey limited company ("<u>PSH</u>", and such ordinary shares, the "<u>PSH Shares</u>"), directly and/or indirectly through one or more controlled and wholly owned vehicles set forth next to such Shareholder's name on <u>Exhibit A</u> (each, a "<u>Shareholding Vehicle</u>");

WHEREAS, in the event that an IPO Conversion (as defined in the HoldCo A&R LPA) is effected, each Shareholder desires to provide HoldCo the right, but not the obligation, to acquire from such Shareholder, directly or indirectly through acquisition of Shareholding Vehicles (as applicable) and on the terms and subject to the conditions set forth herein, the number of PSH Shares set forth next to such Shareholder's name under the heading "Subject PSH Shares" in <u>Exhibit A</u> (with respect to each Shareholder, the "<u>Subject PSH Shares</u>") in exchange for a number of HoldCo Shares as determined herein (collectively, the "<u>Transactions</u>");

WHEREAS, the aggregate number of Subject PSH Shares represents approximately 26% of the total number of PSH Shares issued and outstanding as of September 30, 2025;

WHEREAS, PSH Shares are listed on the closed-ended investment funds category of the Official List of the UK Financial Conduct Authority and admitted to trading on the Main Market of the London Stock Exchange, and dealings in securities of PSH are consequently subject to Regulation (EU) No 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019 ("<u>UK MAR</u>"); and

WHEREAS, the Transactions are intended to be treated as tax-free contributions under Section 351 of the Code.

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NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows:

ARTICLE I

<u>THE TRANSACTIONS</u>

Section 1.1 <u>The Rights</u>. Upon the terms and subject to the conditions set forth herein, HoldCo shall have the right with respect to each Shareholder (the "<u>Rights</u>"), upon delivery of written notice (the "<u>Notice</u>") to the Shareholders in its sole discretion at any time on or after the ninth anniversary of the consummation of an IPO Conversion of HoldCo, to acquire all, but not less than all, of the Subject PSH Shares, which may be delivered directly or indirectly through delivery of Shareholding Vehicles, provided that HoldCo shall not deliver the Notice at any time when HoldCo is in possession of "inside information" relating to PSH or PSH Shares as such term is defined in Article 7 of the UK MAR. In exchange for the Subject PSH Shares, HoldCo shall issue to the applicable Shareholder a number of HoldCo Shares equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to Subject PSH Shares delivered to HoldCo directly, the product of (i) the number of PSH Shares so delivered by such Shareholder *multiplied by* (ii) the ratio derived by *dividing* (x) the volume weighted average price per PSH Share in Dollars as reported by the London Stock Exchange (denominated in pence sterling, converted to pound sterling on a 100:1 ratio, and further converted to Dollars using the average Dollar to pound sterling exchange ratio, as reported by Bloomberg L.P., for each day measured) for the 20-trading-day period ending on the date of the Notice (the "<u>Trailing PSH Price</u>"), *by* (y) the volume weighted average price per HoldCo Share in Dollars as reported by the New York Stock Exchange for the 20-trading-day period ending on the date of the Notice (the "<u>Trailing HoldCo Price</u>", and such ratio, the "<u>Direct Exchange Ratio</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to Subject PSH Shares delivered to HoldCo indirectly through delivery of a Shareholding Vehicle, the product of (i) the number of PSH Shares held by such Shareholding Vehicle *multiplied by* (ii) the ratio derived by *dividing* (x) the amount equal to (A) the Trailing PSH Price *plus* (B) the amount of cash, if any, held by such Shareholding Vehicle arising from dividends paid with respect to such PSH Shares *minus* (C) the amount of accrued tax liability, if any, in respect of income realized from such dividends, *by* (y) the Trailing HoldCo Price (such ratio, the "<u>Indirect Exchange Ratio</u>", and together with the Direct Exchange Ratio, the "<u>Exchange Ratios</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Trailing PSH Price or Trailing HoldCo Price cannot be calculated on a particular date on the basis described above, then the Trailing PSH Price or Trailing HoldCo Price, as applicable, shall be the fair market value of the PSH Shares or HoldCo Shares, as applicable, on such date as determined by mutual agreement of the Shareholders and HoldCo, each acting in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding <u>Section 1.1(a)</u> or <u>(b)</u>, HoldCo and the Shareholders shall be entitled, by mutual agreement, each acting in good faith, to agree to a longer than 20-trading-day period ending on the date of the Notice for the purposes of establishing the Trailing PSH Price, including in the event HoldCo and the Shareholders conclude that third parties may have attempted to manipulate the price per PSH Share during the 20-trading-day period.

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Section 1.2 <u>Lock-Up; Permitted Transfers of PSH Shares.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Lock-Up</u>*. Until the Closing is consummated, except as required by applicable law, no Shareholder shall transfer PSH Shares and/or ownership interests in any Shareholding Vehicle(s) to any other person other than to a Permitted Transferee or pursuant to a Permitted Tax Disposition, in each case after providing written notice to HoldCo. As used herein, "<u>Permitted Transferee</u>" means, with respect to a Shareholder, (i) another existing Shareholder or Shareholding Vehicle subject to this Agreement, (ii) any family member of such Shareholder or any trust, estate planning or similar vehicle(s) wholly owned by such Shareholder and/or such Shareholder's family members and (iii) any other person approved by HoldCo in writing in its sole discretion; <u>provided</u>, however, that no Shareholder may transfer any Shareholding Vehicle(s) to a Permitted Transferee unless 100% of the ownership interests in such Shareholding Vehicle(s) are so transferred; and <u>provided</u> further, that, in the case of any Permitted Transferee listed in clauses (ii) or (iii), such Permitted Transferee shall, concurrently with such transfer, enter into and be subject to and bound by all of the terms and conditions of this Agreement. As used herein, "<u>Permitted Tax Disposition</u>" means, with respect to a Shareholder or Shareholding Vehicle, the disposition of the minimum whole number of PSH Shares (excluding, for the avoidance of doubt, any disposition of ownership interests in one or more Shareholding Vehicles) required to raise an amount of cash that is at least equal to any tax liabilities (without duplication of any such amounts taken into account for any prior Permitted Tax Disposition) incurred by such Shareholder or Shareholding Vehicle under applicable law with respect to such Shareholder's or Shareholding Vehicle's ownership of his, her or its Subject PSH Shares. Any purported transfer of PSH Shares in contravention of this paragraph shall be void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Transfers of PSH Shares Among Shareholders</u>.* Upon receipt of written notice with respect to a transfer of PSH Shares to another existing Shareholder or Shareholding Vehicle, and without any further action on the part of any person, (i) <u>Exhibit A</u> shall be deemed amended to reflect the change in ownership of any transferred Shareholding Vehicle(s), if applicable, and (ii) <u>Exhibit A</u> shall be deemed amended to reduce the Subject PSH Shares of the disposing Shareholder and increase the Subject PSH Shares of the acquiring Shareholder, in each case, in the amount of the PSH Shares so transferred; <u>provided</u>, for the avoidance of doubt, that the aggregate number of Subject PSH Shares as of the date hereof shall not change as a result of any such transfer. For the avoidance of doubt, no Shareholder may transfer to another Shareholder any Shareholding Vehicle(s) unless 100% of the ownership interests in such Shareholding Vehicle(s) are so transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Permitted Tax Dispositions</u>*. Upon receipt of written notice with respect to a Permitted Tax Disposition, and without any further action on the part of any person, <u>Exhibit A</u> shall be deemed amended to reduce the Subject PSH Shares of the disposing Shareholder in the amount of the PSH Shares so disposed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Other Transfers</u>.* In the event that a Shareholder or Shareholding Vehicle transfers PSH Shares and/or ownership interests in any Shareholding Vehicle(s) to any person other than another existing Shareholder or Shareholding Vehicle or pursuant to a Permitted Tax Disposition, <u>Exhibit A</u> shall not be amended to reflect such transfer and such Shareholder's aggregate Subject PSH Shares shall remain the same except as otherwise agreed by HoldCo.

Section 1.3 <u>Adjustments to the Exchange Ratios</u>. In the event the measurement period for the Exchange Ratios follows the announcement by PSH or HoldCo of the outstanding number of PSH Shares or HoldCo Shares, as applicable, being increased, decreased, changed into or exchanged for a different number or kind of securities as a result of (i) a reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar structure change in capitalization, or (ii) an extraordinary dividend or distribution, and the applicable record date for such event shall not have occurred prior to such measurement period, an appropriate and proportionate adjustment shall be made to the Exchange Ratios such that the Transactions shall have the same economic effect on HoldCo and each Shareholder as contemplated by this Agreement prior to such event. Further, in the event the measurement period for the Exchange Ratios follows the announcement by PSH or HoldCo of a dividend or distribution on the PSH Shares or HoldCo Shares, as applicable, and the applicable ex-dividend date shall not have occurred prior to such measurement period, then the Exchange Ratio shall be properly adjusted to take into account ex-dividend trading.

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Section 1.4 <u>Obligations of Shareholders Several</u>. The obligations of each Shareholder under this Agreement shall be several and not joint. Notwithstanding anything herein to the contrary, no Shareholder shall have any liability or responsibility whatsoever for the representations, warranties, covenants, conditions or obligations of any other Shareholder hereunder, and this Agreement shall be deemed to represent a separate agreement between HoldCo and each respective Shareholder with respect to all terms and conditions hereunder.

Section 1.5 <u>Closing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The consummation of the Transactions shall take place by electronic exchange of documents on such date and at such time specified by HoldCo in its sole discretion in the Notice, or the soonest date thereafter that all conditions set forth in <u>Article IV</u> have been satisfied or waived (excluding any such conditions that by their nature are to be satisfied at the closing, but subject to the satisfaction or waiver of such conditions) (the "<u>Closing</u>").

<br> (b) At the Closing, each Shareholder shall deliver or cause to be delivered to HoldCo:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) with respect to each Shareholder, all such Shareholder's Subject PSH Shares, including one or more certificates (or other applicable evidence or instruments) representing (i) the number of PSH Shares delivered directly by such Shareholder and, if applicable, (ii) 100% of the ownership interests in the Shareholding Vehicle(s) delivered by such Shareholder, in each case duly endorsed in blank or accompanied by stock powers duly executed in blank in proper form for transfer, by duly executed broker instruction or by other appropriate instrument of sale, assignment and transfer with respect to such PSH Shares and 100% of the ownership interests in such Shareholding Vehicle(s), as applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to each Shareholder delivering any Shareholding Vehicle(s), evidence of the withdrawal of such Shareholder in its capacity as a member, partner or other owner of any interests in the applicable Shareholding Vehicle(s) contributed by such Shareholder.

<br> (c) At the Closing, HoldCo shall deliver or cause to be delivered to each Shareholder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) evidence of such Shareholder's ownership of the number of HoldCo Shares to be issued to such Shareholder, as calculated pursuant to Section 1.1; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to each Shareholding Vehicle delivered by such Shareholder, evidence of HoldCo's agreement to be bound as a party to the Organizational Documents of such Shareholding Vehicle in connection with the admission of HoldCo as sole member, partner or similar owner thereof in place of the applicable Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At the Closing and simultaneously with the admission of HoldCo to the Shareholding Vehicle(s), the applicable Shareholders will cease to be members, partners or similar owners of the Shareholding Vehicle(s) and shall have no further liabilities with respect to such Shareholding Vehicle(s).

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ARTICLE II

<u>REPRESENTATIONS AND WARRANTIES OF HOLDCO</u>

HoldCo represents and warrants to each Shareholder as of the date hereof and as of the Closing as follows:

Section 2.1 <u>Organization and Power</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) HoldCo is a limited partnership duly organized (or a corporation duly incorporated, as applicable), validly existing and in good standing under the Laws of the State of Delaware or the State of Nevada, as applicable. HoldCo has the requisite power and authority necessary to own or lease and to operate its properties and assets and to carry on its business as currently conducted, except where the failure to hold such power and authority would not, individually or in the aggregate, reasonably be expected to be materially adverse to the operation of the business of HoldCo following the Closing, or prevent or materially delay the consummation of the Transactions. HoldCo has made available to the Shareholders true and complete copies of its Organizational Documents as in effect on the date hereof and immediately prior to the Closing. HoldCo is not in violation of any material provision of its Organizational Documents in any material respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) HoldCo is duly qualified to do business as a foreign corporation in each jurisdiction in which the nature of the business transacted by it or the character of the properties owned or leased by it require such qualification, except where the failure to be so qualified would not, individually or in the aggregate, reasonably be expected to be materially adverse to the operation of the business of HoldCo following the Closing, or prevent or materially delay the consummation of the Transactions.

Section 2.2 <u>Capitalization; Duly Authorized Interests</u>. All of the HoldCo Shares to be issued to such Shareholder pursuant to this Agreement are or will be duly authorized and are or will be validly issued and outstanding, and free and clear of all Liens (other than restrictions on transfer set forth in the Organizational Documents of HoldCo or arising under applicable securities Laws). Other than as contemplated by this Agreement, the Master Transaction Agreement or the Ancillary Documents (or as otherwise disclosed to the Shareholders prior to Closing), there are no preemptive or other outstanding rights, options, warrants, agreements, arrangements or commitments of any character under which any Person is or may become obligated to sell, or giving any Person a right to acquire, or in any way dispose of, or receive any amount or property valued by reference to, HoldCo Shares, nor are there any securities or obligations exercisable or exchangeable for, or convertible into, HoldCo Shares. Other than as contemplated by this Agreement or pursuant to customary "lock-up" agreements with underwriters that may be entered into in connection with the HoldCo IPO, the Master Transaction Agreement and the Ancillary Documents (or as otherwise disclosed to the Shareholders prior to Closing), HoldCo is not party to any Contract with respect to the voting, purchase, dividend rights, disposition or transfer of HoldCo Shares.

Section 2.3 <u>Authority; Enforceability of Agreement</u>. HoldCo has all requisite power and authority and has taken all action necessary in order to execute, deliver and perform its obligations under this Agreement, to perform its obligations hereunder, and to consummate the Transactions. The execution, delivery and performance by HoldCo of this Agreement has been duly and validly authorized and approved by all required actions on the part of HoldCo, including any necessary approvals or consents in accordance with <u>Section 2.5</u>. This Agreement has been duly executed and delivered by HoldCo and (assuming due authorization, execution and delivery by the Shareholders) shall constitute valid and binding obligations of HoldCo, enforceable against HoldCo in accordance with its terms, subject to bankruptcy, insolvency, fraudulent conveyance, preferential transfer, reorganization, moratorium and similar Laws relating to or affecting creditors' rights and to general principles of equity (regardless of whether such enforceability is considered in a Litigation or any other proceeding in equity or at law).

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Section 2.4 <u>No Violation</u>. The execution, delivery and performance by HoldCo of this Agreement will not: (i) violate, conflict with or result in a breach or default under any provision of the Organizational Documents of HoldCo; (ii) violate any applicable Law; (iii) violate or result in a breach of or constitute a default under, or require the consent of any third party under, or result in or permit the termination of any provision of or right, or result in or permit the acceleration of the maturity or cancellation of performance of any obligation under, any Contract; or (iv) result in the creation of, or require the creation of, any Lien upon any properties or assets of HoldCo, except for, in the case of clauses (ii) through (iv), any violation, breach, conflict, default or right of termination, cancellation, redemption, payment, acceleration or Lien that would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the operation of the business of HoldCo following the Closing, or prevent or materially delay the consummation of the Transactions.

Section 2.5 <u>Authorizations and Consents</u>. All required consents and approvals on its part to effect the Transactions have been obtained. No Governmental Consents are required to be obtained or made by HoldCo in connection with the execution, delivery and performance of this Agreement or the consummation of the Transactions, except those which if not obtained or made, would not, individually or in the aggregate, reasonably be expected to have a material adverse effect to the operation of the business of HoldCo following the Closing, or prevent or materially delay the consummation of the Transactions.

Section 2.6 <u>No Securities Act Registration</u>. Assuming the accuracy of the representations of each party contained in this Agreement, it is not necessary in connection with the offer, issuance, sale or delivery to the Shareholders of HoldCo Shares to register any HoldCo Shares to be delivered pursuant to this Agreement under the Securities Act.

Section 2.7 <u>Acquisition for Own Account</u>. HoldCo is acquiring the PSH Shares and ownership interests in the Shareholding Vehicles for its own account and not with a view towards distribution.

Section 2.8 <u>Qualified Status</u>. HoldCo is both an "accredited investor" as defined in Regulation D under the Securities Act and a "qualified purchaser" as defined in the Investment Company Act.

ARTICLE III

<u>REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS</u>

Each Shareholder severally and not jointly represents and warrants to HoldCo as of the date hereof (except as otherwise specified in this <u>Article III</u>) and as of the Closing that:

Section 3.1 <u>Organization and Power</u>. Such Shareholder (if such Shareholder is a legal entity) is duly organized, validly existing and in good standing under the Laws of its State of organization (as applicable). Such Shareholder, as an entity or in his or her individual capacity, has full power and authority to execute and deliver this Agreement, to perform its obligations under this Agreement and to consummate the Transactions, to own or lease its properties and assets and, in the case of an entity, to conduct its business as it is now being conducted.

Section 3.2 <u>Shareholding Vehicle(s)</u>. Each Shareholding Vehicle to be contributed by such Shareholder is duly organized, validly existing and in good standing under the Laws of its State of organization. Such Shareholding Vehicle has full power and authority to own its assets and to conduct its business as it is now being conducted. Immediately prior to the Closing, the assets of such Shareholding Vehicle shall be comprised solely of the PSH Shares, and such Shareholding Vehicle shall have no liabilities other than tax liabilities relating to such PSH Shares.

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Section 3.3 <u>Authorization and Enforceability</u>. Such Shareholder, as an entity or in his or her individual capacity, has all requisite power and authority and has taken all action necessary in order to execute, deliver and perform its obligations under this Agreement. This Agreement has been duly executed and delivered by such Shareholder and (assuming due authorization, execution and delivery by HoldCo) will constitute a valid and binding obligation of such Shareholder, enforceable against such Shareholder in accordance with its terms, subject to bankruptcy, insolvency, fraudulent conveyance, preferential transfer, reorganization, moratorium and similar Laws relating to or affecting creditors' rights and to general principles of equity (regardless of whether such enforceability is considered in a Litigation or any other proceeding in equity or at law).

Section 3.4 <u>Valid Ownership</u>. Such Shareholder shall, immediately prior to the Closing, have good and valid title to the PSH Shares to be directly contributed by such Shareholder, free and clear of all Liens other than restrictions on transfers under applicable securities Laws. Such Shareholder shall, immediately prior to the Closing, have good and valid title to 100% of the ownership interests in the Shareholding Vehicle(s) to be contributed by such Shareholder. Such Shareholding Vehicle(s) shall, immediately prior to the Closing, have good and valid title to the PSH Shares held by such Shareholding Vehicle(s), and such ownership interests and such PSH Shares shall, immediately prior to the Closing, be free and clear of all Liens other than restrictions on transfers under applicable securities Laws.

Section 3.5 <u>No Violation</u>. The execution, delivery and performance by such Shareholder of this Agreement will not: (i) violate, conflict with or result in a breach or default under any provision of the Organizational Documents of such Shareholder, in the case of an entity, and/or its Shareholding Vehicle(s) (as applicable); (ii) violate any applicable Law; (iii) violate or result in a breach of or constitute a default under, or require the consent of any third party under, or result in or permit the termination of any provision of or right, or result in or permit the acceleration of the maturity or cancellation of performance of any obligation under, any Contract to which such Shareholder and/or any of its Shareholding Vehicle(s) (as applicable) is a party; or (iv) result in the creation of, or require the creation of, any Lien upon any of its PSH Shares or Shareholding Vehicle(s), except for, in the cases of clauses (ii) and (iii) any violation, breach, conflict, default or right of termination, cancellation, redemption, payment or acceleration that would not, individually or in the aggregate, reasonably be expected to prevent or materially delay the consummation of the Transactions.

Section 3.6 <u>No Securities Act Registration</u>. Such Shareholder understands that the HoldCo Shares to be issued to him, her or it hereunder have not been registered under the Laws of any jurisdiction (including the Securities Act, the Laws of any state of the United States of America or the Laws of any foreign jurisdiction). Such Shareholder also understands that such HoldCo Shares are being offered and sold pursuant to an exemption from registration contained in the Securities Act, based in part upon the Shareholders' representations contained in this Agreement.

Section 3.7 <u>Acquisition for Own Account</u>. Such Shareholder is acquiring the HoldCo Shares to be issued to him, her or it hereunder for his, her or its own account and not with a view toward their distribution.

Section 3.8 <u>Qualified Status</u>. Such Shareholder is an "accredited investor" as defined in Regulation D under the Securities Act.

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ARTICLE IV

<u>CONDITIONS TO CLOSING</u>

Section 4.1 <u>Conditions to Each Party's Obligation to Effect the Transactions</u>. Subject to <u>Section 1.4</u>, the obligations of HoldCo to effect the Transactions with respect to any particular Shareholder and the obligations of such Shareholder to effect the Transactions to which such Shareholder is a party shall be subject to the conditions set forth below. For the avoidance of doubt, there shall be no cross-conditioning among, on the one hand, the consummation of the Transactions as between HoldCo and any particular Shareholder and, on the other hand, the consummation of the Transactions as between HoldCo and any other Shareholder(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No judgment, order, decree, ruling, or charge shall have been entered in any action, suit, or proceeding before any court or Governmental Authority having jurisdiction over any party, and no preliminary or permanent injunction by any court or Governmental Authority shall have been issued, which would have the effect of (i) making the Transactions illegal, or (ii) otherwise preventing the consummation of the Transactions.

<br> (b) The ninth anniversary of the consummation of an IPO Conversion of HoldCo has elapsed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Consummation of the Transactions will not result in a "Change in Control" as defined in the PSH Bond Indentures or any other event of default or breach thereunder. As used herein, "<u>PSH Bond Indentures</u>" means: (i) the Senior Notes Indenture, dated October 1, 2021, among PSH, The Bank of New York Mellon ("<u>BNYM</u>"), as Trustee, Paying Agent, Registrar and Transfer Agent and BNYM, London Branch ("<u>BNYM London</u>"), as Principal Paying Agent, with respect to the 1.375% Senior Notes due 2027; (ii) the Senior Notes Indenture, dated October 1, 2021, among PSH, BNYM, as Trustee, Paying Agent, Registrar and Transfer Agent and BNYM London, as Principal Paying Agent, with respect to the 3.250% Senior Notes due 2031; (iii) the Senior Notes Indenture, dated November 2, 2020, among PSH, BNYM, as Trustee, Paying Agent, Registrar and Transfer Agent and BNYM London, as Principal Paying Agent, with respect to the 3.250% Senior Notes due 2030; (iv) the Senior Notes Indenture, dated August 26, 2020, between PSH and BNYM, as Trustee, Paying Agent, Registrar and Transfer Agent, with respect to the 3.00% Senior Notes due 2032; and (v) the Senior Notes Indenture, dated July 25, 2019, between PSH and BNYM, as Trustee, Paying Agent, Registrar and Transfer Agent, with respect to the 4.95% Senior Notes due 2039.

Section 4.2 <u>Conditions to Each Shareholder's Obligation to Effect the Transactions</u>. Subject to <u>Section 1.4</u>, the obligations of each Shareholder to effect the Transactions to which such Shareholder is a party shall be subject to the conditions set forth below. For the avoidance of doubt, there shall be no cross-conditioning among, on the one hand, the consummation of the Transactions as between HoldCo and any particular Shareholder and, on the other hand, the consummation of the Transactions as between HoldCo and any other Shareholder(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Such Shareholder has received a written opinion from a tax advisor of recognized national standing to the effect that the Transactions should be treated as tax-free contributions under Section 351 of the Code.

ARTICLE V

<u>TERMINATION</u>

Section 5.1 <u>Termination.</u> This Agreement will terminate automatically on the earlier of (i) the Closing or (ii) the day following the tenth anniversary of the consummation of an IPO Conversion of HoldCo.

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ARTICLE VI

<u>MISCELLANEOUS</u>

Section 6.1 <u>Notices</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed to have been duly given or made (i) as of the date delivered, if delivered personally, (ii) on the date the delivering party receives an affirmative confirmation (excluding automatic acknowledgement of receipt) from the receiving party of such notice or its counsel, if delivered by email to the address listed below with respect to such receiving party (or at such other email address for such receiving party as may be specified in a notice by or behalf by the receiving party given in accordance with this <u>Section 6.1</u>), (iii) three (3) Business Days after being mailed by registered or certified mail (postage prepaid, return receipt requested) or (iv) one (1) Business Day after being sent by overnight courier (providing proof of delivery), to the receiving party at the address listed below with respect to such receiving party (or at such other address for such receiving party as may be specified in a notice by or behalf by the receiving party given in accordance with this <u>Section 6.1</u>):

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| | |
|:---|:---|
| Notices to HoldCo shall be delivered to: | Notices to HoldCo shall be delivered to: |
| 787 Eleventh Avenue, 9<sup>th</sup> Floor<br> New York, NY 10019<br> Attn: Chief Legal Officer<br> Email: [email address] | 787 Eleventh Avenue, 9<sup>th</sup> Floor<br> New York, NY 10019<br> Attn: Chief Legal Officer<br> Email: [email address] |
| With a copy (which shall not constitute notice) to: | With a copy (which shall not constitute notice) to: |
| Sullivan & Cromwell LLP<br> 125 Broad Street<br> New York, NY 10004 | Sullivan & Cromwell LLP<br> 125 Broad Street<br> New York, NY 10004 |
| Attention: | Scott D. Miller<br> Ken Li |
| Email: | [email address]<br> [email address] |
| Notices to William A. Ackman ("<u>Founder</u>") shall be delivered to: | Notices to William A. Ackman ("<u>Founder</u>") shall be delivered to: |
| 787 Eleventh Avenue, 9<sup>th</sup> Floor<br> New York, NY 10019<br> Attn: Chief Legal Officer<br> Email: [email address] | 787 Eleventh Avenue, 9<sup>th</sup> Floor<br> New York, NY 10019<br> Attn: Chief Legal Officer<br> Email: [email address] |
| With copies (which shall not constitute notice) to: | With copies (which shall not constitute notice) to: |
| Cadwalader, Wickersham & Taft LLP<br> 200 Liberty Street<br> New York, NY 10281<br> Attn: Gregory P. Patti Jr.<br> Email: [email address] | Cadwalader, Wickersham & Taft LLP<br> 200 Liberty Street<br> New York, NY 10281<br> Attn: Gregory P. Patti Jr.<br> Email: [email address] |
| and | and |
| Founder<br> 787 Eleventh Avenue, 9<sup>th</sup> Floor<br> New York, NY 10019<br> Attn: William A. Ackman<br> Email: [email address] | Founder<br> 787 Eleventh Avenue, 9<sup>th</sup> Floor<br> New York, NY 10019<br> Attn: William A. Ackman<br> Email: [email address] |
| <u>Notices to other Shareholders shall be delivered to the address set forth next to each Shareholder's name on the applicable signature pages to this Agreement.</u> | <u>Notices to other Shareholders shall be delivered to the address set forth next to each Shareholder's name on the applicable signature pages to this Agreement.</u> |

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Section 6.2 <u>Governing Law</u>. All matters relating to the interpretation, construction, validity and enforcement of this Agreement, including all claims or disputes (whether in contract or in tort, in law or in equity, or granted by statute) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance of this Agreement, shall be governed by and construed in accordance with the domestic substantive Laws of the State of Nevada without giving effect to any choice or conflict of law provision or rule (whether of the State of Nevada or any other jurisdiction) that would cause the application of Laws of any jurisdiction other than the State of Nevada, including statutes of limitations.

Section 6.3 <u>Entire Agreement</u>. This Agreement, together with the Exhibits to this Agreement, constitute the entire understanding and agreement of the parties relating to the subject matter in this Agreement and supersede all prior contracts or agreements, among the parties, whether oral or written.

Section 6.4 <u>Severability</u>. Should any provision of this Agreement or the application of any provision of this Agreement to any Person or circumstance be held invalid, illegal or unenforceable to any extent: (i) such provision shall be ineffective to the extent, and only to the extent, of such unenforceability, illegality or prohibition and shall be enforced to the greatest extent permitted by Law; (ii) such unenforceability, illegality or prohibition in any jurisdiction shall not invalidate or render unenforceable such provision as applied (A) to other Persons or circumstances or (B) in any other jurisdiction; and (iii) such unenforceability, illegality or prohibition shall not affect or invalidate any other provision of this Agreement.

Section 6.5 <u>Amendments; Waivers</u>. Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by the Founder and HoldCo, or in the case of a waiver, by the party granting the waiver (it being acknowledged and agreed that the Founder may, in his sole discretion, approve any such amendment or grant any such waiver on behalf of himself and the other Shareholders). Notwithstanding the foregoing, the written consent of a Shareholder other than the Founder shall be required with respect to, and only with respect to, an amendment or waiver of the Exchange Ratios and/or the right to receive HoldCo Shares that does not apply equally to all Shareholders and that would reduce the number of HoldCo Shares received by that Shareholder relative to the number of HoldCo Shares received by other Shareholders who are unaffected by such amendment or waiver. No failure or delay by any party in exercising any right, power or privilege under this Agreement shall operate as a waiver of such right, power or privilege or shall any single or partial exercise of such right, power or privilege preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege.

Section 6.6 <u>Effect of Waiver or Consent</u>. No waiver or consent, express or implied, by any party to or of any breach or default by any party in the performance by such party of its obligations under this Agreement shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance by such party of the same or any other obligations of such party under this Agreement. No single or partial exercise of any right or power, or any abandonment or discontinuance of steps to enforce any right or power, shall preclude any other or further exercise of such right or power or the exercise of any other right or power. Failure on the part of a party to complain of any act of any party or to declare any party in default, irrespective of how long such failure continues, shall not constitute a waiver by such party of its rights under this Agreement until the applicable statute of limitation period has run.

Section 6.7 <u>Assignability</u>. This Agreement shall inure to the benefit of and be binding upon the parties and their respective successors and permitted assigns. No assignment of this Agreement or of any rights or obligations under this Agreement may be made by any party, directly or indirectly (by operation of law or otherwise), without the prior written consent of the other parties and any attempted assignment without the required consents shall be void. Notwithstanding the foregoing, the consent of the other parties hereto shall not be required for an assignment by HoldCo of all of its obligations hereunder to the IPO Corporation or to a new ultimate publicly-traded holding company of HoldCo.

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Section 6.8 <u>Arbitration</u>. The parties to this Agreement agree that in the event of any dispute arising between the parties arising out of or relating to this Agreement or its breach, such dispute shall be settled by arbitration to be conducted in New York, New York in accordance with the Commercial Arbitration Rules (except as modified below) of the American Arbitration Association and with the Expedited Procedures thereof (collectively, the "<u>Rules</u>"). Each of the parties hereto agrees that such arbitration shall be conducted by a single arbitrator selected in accordance with the Rules; <u>provided</u> that such arbitrator shall be a retired judge who is experienced in deciding cases concerning the matter which is the subject of the dispute. Each of the parties agrees that in any such arbitration the award shall be made in writing no more than 30 days following the end of the proceeding. Any award rendered by the arbitrator shall be final and binding and judgment may be entered on it in any court of competent jurisdiction. The prevailing party (as determined by the arbitrator) shall in addition be awarded by the arbitrator such party's own attorney's fees and expenses in connection with such proceeding. The non-prevailing party (as determined by the arbitrator) shall pay the fees and expenses of the arbitration.

Section 6.9 <u>Reliance on Counsel and Other Advisors</u>. Each party has consulted such legal, financial, technical or other expert as it deems necessary or desirable before entering into this Agreement. Each party represents and warrants that it has read, knows, understands and agrees with the terms and conditions of this Agreement.

Section 6.10 <u>Counterparts</u>. This Agreement may be executed in any number of counterparts (including counterparts transmitted via facsimile or in .pdf or similar format) with the same effect, subject to Section 1.4, as if all signatory parties had signed the same document. Subject to Section 1.4, all counterparts shall be construed together and shall constitute one and the same instrument.

Section 6.11 <u>Fees and Expenses</u>. Except as otherwise expressly provided in this Agreement, all fees and expenses incurred in connection with the Transactions shall be paid by the party incurring such expenses.

Section 6.12 <u>Further Assurances</u>. Each party agrees to execute such documents and other papers and use its commercially reasonable efforts to perform or cause to be performed such further acts as may be reasonably required to carry out the provisions contained in this Agreement, including to use its reasonable best efforts to cause the Transactions to be treated as a tax-free contribution under Section 351 of the Code and to facilitate the delivery of the tax opinion described in Section 4.2(a) and, in the case of HoldCo, to establish a new ultimate publicly traded holding company of HoldCo. If at any time after the Closing any further action is necessary or desirable to fully effect the Transactions, each of the parties shall take such further action (including the execution and delivery of such further instruments and documents) as any other party reasonably may request.

[*Remainder of page intentionally left blank*]

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

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| | | |
|:---|:---|:---|
| PERSHING SQUARE HOLDCO, L.P. | PERSHING SQUARE HOLDCO, L.P. | PERSHING SQUARE HOLDCO, L.P. |
| By: Pershing Square Holdco GP, LLC, its sole general partner | By: Pershing Square Holdco GP, LLC, its sole general partner | By: Pershing Square Holdco GP, LLC, its sole general partner |
| By: | /s/ William A. Ackman | /s/ William A. Ackman |
|  | Name: | William A. Ackman |
|  | Title: | Authorized Signatory |

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[*Signature Page to PSH Share Agreement*]

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| | | |
|:---|:---|:---|
| WILLIAM A. ACKMAN | WILLIAM A. ACKMAN | WILLIAM A. ACKMAN |
| By: | /s/ William A. Ackman | /s/ William A. Ackman |
|  | Name: | William A. Ackman |
| Address for Notices: | Address for Notices: | Address for Notices: |
| 787 Eleventh Avenue, 9th Floor<br> New York, NY 10019 | 787 Eleventh Avenue, 9th Floor<br> New York, NY 10019 | 787 Eleventh Avenue, 9th Floor<br> New York, NY 10019 |

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[*Signature Page to PSH Share Agreement*]

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| | | |
|:---|:---|:---|
| NICHOLAS BOTTA | NICHOLAS BOTTA | NICHOLAS BOTTA |
| By: | /s/ Nicholas Botta | /s/ Nicholas Botta |
|  | Name: | Nicholas Botta |
| Address for Notices: | Address for Notices: | Address for Notices: |

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[*Signature Page to PSH Share Agreement*]

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| | | |
|:---|:---|:---|
| RYAN ISRAEL | RYAN ISRAEL | RYAN ISRAEL |
| By: | /s/ Ryan Israel | /s/ Ryan Israel |
|  | Name: | Ryan Israel |
| Address for Notices: | Address for Notices: | Address for Notices: |
| 787 Eleventh Avenue, 9th Floor<br> New York, NY 10019 | 787 Eleventh Avenue, 9th Floor<br> New York, NY 10019 | 787 Eleventh Avenue, 9th Floor<br> New York, NY 10019 |

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[*Signature Page to PSH Share Agreement*]

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#### EXHIBIT A

#### [\*\*\*]

## Exhibit 10.15

#### Exhibit 10.15

#### AMENDED AND RESTATED VARIABLE COMPENSATION AGREEMENT

#### March 3, 2026

This Amended and Restated Variable Compensation Agreement (this "<u>Agreement</u>") is entered into by and among Pershing Square Holdco, L.P., a Delaware limited partnership ("<u>TopCo</u>"), Pershing Square Capital Management, L.P., a Delaware limited partnership that is registered with the U.S. Securities and Exchange Commission as an investment adviser ("<u>PSCM</u>"), and PS CompCo, LLC, a Delaware limited liability company ("<u>VariableCo</u>"). Capitalized terms used but not defined herein have the respective meanings ascribed to them in the Master Transaction Agreement, dated as of May 31, 2024, by and among TopCo, Pershing Square Holdco GP, LLC, a Delaware limited liability company and the general partner of TopCo, and the Investors party thereto (the "<u>Master Transaction Agreement</u>").

TopCo, PSCM and VariableCo each hereby agrees as follows, in each case for good and valuable consideration the sufficiency of which is hereby acknowledged:

<br> 1. <u>Definitions</u>.

<br> a. "<u>Crystallization Period</u>" means, with respect to any payment or accrual of Performance Fees from any Fund, the period of time with respect to which such Performance Fees were determined in accordance with the Fund Documents of such Fund.

<br> b. "<u>FOA</u>" means the fee offset arrangement set forth under Section 9 of the Amended and Restated Investment Management Agreement of PSH, dated as of February 7, 2024.

c. "<u>Fund Documents</u>" means, with respect to any Fund, the Organizational Documents of such Fund, any investment management agreement or any other agreement between such Fund (or its general partner, managing member, trustee or other person functioning in a similar capacity) and any Pershing Square Management Company.

d. "<u>Funds</u>" means any existing and future investment vehicles (including without limitation any registered funds, private funds or co-investment vehicles), managed accounts or other investment schemes advised by any Pershing Square Management Company, excluding (i) Pershing Square, L.P., a Delaware private fund, (ii) PS VII Master, L.P., a Cayman Islands exempted limited partnership, and any other affiliated vehicle, which operates as a co-invest vehicle investing primarily in securities of Universal Music Group, N.V., (iii) any investment vehicle, account or scheme that does not pay Performance Fees, and (iv) any investment vehicle, account or scheme that provides in its Fund Documents for payment of Variable Compensation to VariableCo pursuant to the same terms and conditions as in this Agreement.

<br> e. "<u>Management Fees</u>" with respect to any Fund shall have the meaning ascribed to such term in such Fund's investment management agreement with a Pershing Square Management Company.

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<br> f. "<u>Non-PSH Fund</u>" means any Fund other than PSH.

g. "<u>Non-PSH Fund TopCo Preference</u>" means, with respect to any Non-PSH Fund for any Crystallization Period, an amount equal to (i) the Performance Fees that would have been earned if such Fund had experienced a net of Management Fee return of five percent (5%) per annum on such Fund's Performance Benchmark Amount *minus* (ii) the Offsettable Performance Fees derived from such Fund. By way of example, Pershing Square International Ltd., which pays PSCM a 20% Performance Fee, of which 20% of the Performance Fee is an Offsettable Performance Fee pursuant to the FOA, the Non-PSH Fund TopCo Preference would represent 0.8% of Pershing Square International Ltd.'s Performance Benchmark Amount (the product of 80% \* 20% \* 5%).

h. "<u>Offsettable Management Fees</u>" means, with respect to any Fund for any Crystallization Period of PSH, the portion of the Management Fees of such Fund that is available to offset any Performance Fees of PSH in accordance with the FOA (whether or not a sufficient amount of Performance Fees of PSH were actually earned to fully utilize such offset). For clarity, Pershing Square USA, Ltd. is expected to generate Offsettable Management Fees following the launch of such fund, and as of the date hereof no Fund generates Offsettable Management Fees.

i. "<u>Offsettable Performance Fees</u>" means, with respect to any Fund for any Crystallization Period of its own or of PSH, as applicable, the portion of the Performance Fees of such Fund that is available to offset any Performance Fees of PSH in accordance with the FOA (whether or not a sufficient amount of Performance Fees of PSH were actually earned to fully utilize such offset). For clarity, as of the date hereof, the sole Fund that generates Offsettable Performance Fees is Pershing Square International, Ltd., a Cayman Islands exempted company.

j. "<u>Performance Benchmark Amount</u>" with respect to any Fund that charges Performance Fees equals, with respect to any Crystallization Period, the aggregate "high water mark" of the individual fee-paying investors, series or classes of shares as of the start of such Crystallization Period, as determined in accordance with the Fund Documents of the Fund; <u>provided</u>, that if the Fund Documents do not provide for a "high water mark", then the Performance Benchmark Amount shall equal the weighted average baseline value (*e.g.,* beginning balance or other relative value of assets) relative to which the Fund's gains or profits are calculated for purposes of determining Performance Fees with respect to such Crystallization Period, as set forth in the Fund Documents of such Fund.

k. "<u>Performance Fees</u>" with respect to any Fund shall have the meaning ascribed to such term in its Fund Documents, and shall also include any term(s) within such Fund Documents that refer to any Pershing Square Management Company's entitlement to an incentive fee, promote, or performance allocation.

l. "<u>Pershing Square Management Company</u>" means PSCM and any Affiliate thereof that provides investment management, investment advisory or similar services (including on a sub-advisory basis, and without regard to asset class or strategy) and/or receives compensation for such services. For the avoidance of doubt, VariableCo shall not be deemed to be a Pershing Square Management Company for purposes of this Agreement.

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<br> m. "<u>PSH</u>" means Pershing Square Holdings, Ltd., a Guernsey limited liability company.

n. "<u>PSH TopCo Preference</u>" means, with respect to PSH for any Crystallization Period, an amount equal to a 16% Performance Fee that would have been earned if PSH had experienced a net of Management Fee return of five percent (5%) per annum on such Fund's Performance Benchmark Amount. For clarity, the PSH TopCo Preference is not reduced by the FOA and would represent 0.80% of PSH's Performance Benchmark Amount (equivalent to the product of 16% and 5%).

<br> o. "<u>TopCo Preference</u>" means (i) with respect to PSH, the PSH TopCo Preference and (ii) with respect to any Non-PSH Fund, such Fund's Non-PSH Fund TopCo Preference.

<br> 2. <u>Variable Compensation; Cumulative TopCo Preference</u>.

<br> a. <u>TopCo Preference</u>.

i. *PSH*. TopCo will be entitled to receive from PSCM (directly or indirectly), with respect to each Crystallization Period for PSH, an amount equal to the PSH TopCo Preference as of the end of such Crystallization Period, to the extent of the aggregate of (i) any Performance Fees that PSCM received from PSH, (ii) aggregate Offsettable Management Fees that PSCM received and (iii) aggregate Offsettable Performance Fees that PSCM received. Any portion of the PSH TopCo Preference that is not paid to TopCo with respect to any Crystallization Period shall accumulate and shall increase the PSH TopCo Preference for purposes of the subsequent Crystallization Period.

ii. *Non-PSH Funds*. TopCo will be entitled to receive from PSCM (directly or indirectly), with respect to each Crystallization Period for each Non-PSH Fund, an amount equal to the Non-PSH Fund TopCo Preference as of the end of such Crystallization Period to the extent of any Performance Fees that PSCM received from the applicable Fund (net of the Offsettable Performance Fees that PSCM received with respect to such Fund). Any portion of the Non-PSH Fund TopCo Preference for a Fund that is not paid to TopCo with respect to any Crystallization Period shall accumulate and shall increase the Non-PSH Fund TopCo Preference for purposes of the subsequent Crystallization Period.

<br> b. <u>Variable Compensation</u>*.*

i. *PSH*. VariableCo will be entitled to receive from PSCM (directly), with respect to each Crystallization Period for PSH, the aggregate of (i) any Performance Fees that PSCM received from PSH, (ii) aggregate Offsettable Management Fees that PSCM received and (iii) aggregate Offsettable Performance Fees that PSCM received, but solely to the extent such aggregate amount exceeds TopCo's entitlement to the PSH TopCo Preference as set forth in <u>Section 2.a.i</u>.

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ii. *Non-PSH Fund*. VariableCo will be entitled to receive from PSCM (directly), with respect to each Crystallization Period for each Non-PSH Fund, all Performance Fees that PSCM received from the applicable Fund (net of the Offsettable Performance Fees that PSCM received with respect to such Fund), but solely to the extent such aggregate amount exceeds TopCo's entitlement to the Non-PSH Fund TopCo Preference for such Fund as set forth in <u>Section 2.a.ii</u> (the entitlements of VariableCo in <u>Section 2.b.i</u> and <u>Section 2.b.ii</u>, the "<u>Variable Compensation</u>").

c. For the avoidance of doubt, with respect to <u>Section 2.a</u> and <u>Section 2.b</u>, Performance Fees, Offsettable Management Fees, Offsettable Performance Fees, PSH TopCo Preference, and Non-PSH Fund TopCo Preference shall be calculated on a Fund-by-Fund basis. For clarity, the fact that TopCo's direct or indirect entitlement from PSCM for applicable fees received pursuant to <u>Section 2.a</u> with respect to any one Fund is less than the TopCo Preference with respect to such Fund shall not give rise to any reduction of the Variable Compensation earned with respect to any other Fund, which shall be paid to VariableCo and not used to reduce the remaining TopCo Preference of such first Fund.

<br> d. [Intentionally omitted]

e. PSCM shall distribute or pay, directly or indirectly as applicable, the amounts set forth in <u>Section 2.a</u> and <u>Section 2.b</u> within thirty (30) days after it receives Performance Fees or Offsettable Management Fees for the applicable Crystallization Period. Interest shall accrue on past due amounts with respect to the Variable Compensation only at the rate of one percent (1%) per month, but in no event greater than the highest rate of interest allowed under applicable Law, calculated from the date such amount was due until the date that payment is received by VariableCo. Notwithstanding the foregoing, in the event that a Crystallization Period occurs for less than all of a series or class of shares of a Fund (*e.g*., in the event of a redemption of a share), Performance Fees or Offsettable Management Fees received in respect of such Crystallization Period shall be retained by PSCM and included for purposes of calculating the TopCo Preference and Variable Compensation at the next Crystallization Period for such Fund.

<br> f. Payments due to VariableCo under this Agreement shall be made by wire transfer of immediately available funds to one or more accounts designated in writing by VariableCo from time to time.

g. Payments due to VariableCo under this Agreement shall be made, as PSCM shall determine in its reasonable discretion, net of any taxes incurred by TopCo attributable to the amounts described in <u>Section 2.b</u>; <u>provided</u>, that such netting shall take into account the reduction (if any) in taxes incurred by TopCo attributable to amounts paid or payable under this Agreement. Consistent with the original intent of the parties, the clarifications in this <u>Section 2.g</u> are effective from January 1, 2025.

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<br> 3. <u>No Circumvention; Alternative Arrangements</u>.

a. TopCo and PSCM shall not, and shall cause their respective Affiliates (including any other Pershing Square Management Company) not to, directly or indirectly, take any action that is intended to or reasonably likely to have the effect of circumventing or diminishing VariableCo's entitlement to the Variable Compensation or delaying the payment of the Variable Compensation pursuant to this Agreement, including without limitation by: amending any Fund Documents; changing the methodology for calculating Fund performance or assets; characterizing any payments, fees or allocations from any Fund in a manner that would reduce the amount of Variable Compensation otherwise due under this Agreement; transferring, hypothecating or pledging rights to such payments, fees or allocations, or permitting any liens to be imposed thereon; or causing PSCM to make any distributions (directly or indirectly) to TopCo (i) if such distribution would render PSCM unable to pay the Variable Compensation as and when due or (ii) of any portion of Performance Fees received by PSCM, if such distribution would reduce the balance of the TopCo Preference below zero dollars ($0) (in each case, notwithstanding any distribution policy that may be adopted from time to time by TopCo or its Affiliates or anything to the contrary in the Organizational Documents of TopCo or its Affiliates).

b. To the extent that any entitlement to a performance or incentive fee or any carried interest, allocation, promote or other performance-based compensation with respect to any Fund cannot reasonably be established in a manner that gives rise to Performance Fees subject to this Agreement, the parties shall take all actions necessary to modify or supplement this Agreement, or enter into one or more additional agreements, so as to provide VariableCo with the benefit of the Variable Compensation (or an economic equivalent thereof) and the other rights of VariableCo contemplated by this Agreement with respect to such fee, allocation or compensation.

c. If requested by VariableCo, TopCo shall use commercially reasonable efforts to bifurcate the payment of Performance Fees and Management Fees in the Fund Documents of the Funds so as to replicate as closely as possible the effect of this Agreement, such that VariableCo shall be entitled to receive directly from the Funds an amount equal to the Variable Compensation to achieve the equivalent of the economic arrangement contemplated herein. To the extent the Fund Documents of a Fund are so amended, this Agreement shall be amended if and only to the extent necessary to effectuate the foregoing.

4. <u>Return of Payment</u>. The parties hereto shall contribute to any obligation of PSCM to return all or any portion of any Performance Fees in accordance with the Fund Documents of any Fund (including as a result of any error in calculations of such Performance Fees or restatement of such Fund's financials) in the following order of priority and up to the following amounts: (i) first by VariableCo, up to a maximum amount equal to the Variable Compensation actually received by VariableCo attributable to such Fund with respect to any period from and after the date of this Agreement and (ii) thereafter by TopCo, up to a maximum amount equal to the aggregate Performance Fees actually received by TopCo attributable to such Fund with respect to any period from and after the date of this Agreement.

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5. <u>Reporting; Records</u>. Within one hundred and twenty (120) days of the end of each calendar year, TopCo and PSCM shall, and shall cause their respective Affiliates to, prepare and provide VariableCo with audited financial statements and reasonably detailed information statements used to support such audited financial statements setting forth the calculation of the Performance Fees and TopCo Preference for each applicable Fund with respect to the prior calendar year. TopCo and PSCM shall, and shall cause their respective Affiliates to, provide VariableCo with such additional information and assistance as VariableCo may reasonably request in connection with verifying the accuracy of the calculation of the Variable Compensation (or any component thereof) and the amount of any Performance Fees returned to any Fund. PSCM shall keep complete and accurate books and records sufficient to verify the amounts owed to VariableCo pursuant to this Agreement.

6. <u>New Management Companies</u>. In the event that TopCo or any of its Subsidiaries establishes, acquires or otherwise becomes affiliated with any Pershing Square Management Company other than PSCM, TopCo agrees to cause such Pershing Square Management Company to promptly be made a party to this Agreement pursuant to a joinder agreement in form and substance reasonably satisfactory to VariableCo, as a result of which such Pershing Square Management Company shall become subject to this Agreement to the same extent as PSCM.

7. <u>New Funds with Fee Offset Arrangement</u>. If, at any time, there is a Non-PSH Fund with a fee offset arrangement similar to the FOA, then the parties shall amend or supplement this Agreement as necessary so that such Non-PSH Fund's fee offset arrangement is reflected in this Agreement in a manner that gives effect to the economic allocation intended by the provisions hereof relating to the FOA (and the Offsettable Management Fees and Offsettable Performance Fees relating to the FOA).

<br> 8. <u>Confidentiality</u>. Section 5.4 (*Confidentiality*) of the Master Transaction Agreement shall apply to this Agreement *mutatis mutandis*.

<br> 9. <u>No Partnership</u>. The parties agree there is no intention for this Agreement to create a partnership under applicable law, including for United States federal income tax purposes.

<br> 10. <u>Amendments</u>. This Agreement may only be amended in writing by all of the parties hereto.

11. <u>Successors and Assigns; No Third Party Beneficiaries</u>. This Agreement shall not be assigned or transferred by any party thereto without the prior written consent of the other parties, which shall not be unreasonably withheld, except that VariableCo shall be entitled to assign all or any portion of this Agreement to one or more Affiliates thereof. This Agreement shall inure to the benefit of, and be binding upon, permitted successors and assigns of the parties. Any attempted assignment in violation of this Agreement shall be null and void ab initio. Except as expressly provided herein, this Agreement is for the sole benefit of the parties and their permitted successors and assigns, and nothing herein, expressed or implied, shall confer or be construed to confer upon any other person any legal or equitable rights of any kind.

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12. <u>Counterparts</u>. This Agreement may be executed in counterparts and by different parties hereto in separate counterparts, each of which, when so executed and delivered, shall be deemed to be an original and all of which, when taken together, shall constitute one and the same agreement.

13. <u>Electronic Signature</u>. A party's execution and delivery of this Agreement by electronic signature and electronic transmission, including via DocuSign or other similar method, shall constitute the execution and delivery of a counterpart of this Agreement by or on behalf of such party and shall bind such party to the terms of this Agreement.

14. <u>Severability</u>. If any term or other provision hereof is determined by any court of competent jurisdiction to be invalid, illegal or unenforceable, in whole or in part, by reason of any applicable law or public policy, and such determination becomes final and nonappealable, such term or other provision shall remain in full force and effect to the fullest extent permitted by law and all other terms and provisions hereof shall remain in full force and effect in their entirety.

15. <u>No Waiver</u>. Any provision of this Agreement may be waived if such waiver is in writing and signed by and on behalf of the party against whom such waiver is to be enforced. Neither the failure nor any delay on the part of any party hereto to exercise any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right preclude any other or further exercise of the same or any other rights, nor shall any waiver of any rights with respect to any occurrence be construed as a waiver of such right with respect to any other occurrence.

16. <u>Governing Law</u>. All matters relating to the interpretation, construction, validity and enforcement of this Agreement, including all claims or disputes (whether in contract or in tort, in law or in equity, or granted by statute) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance of this Agreement, shall be governed by and construed in accordance with the domestic substantive Laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of Laws of any jurisdiction other than the State of Delaware, including statutes of limitations.

17. <u>Arbitration</u>. The Parties to this Agreement agree that in the event of any dispute arising between the parties arising out of or relating to this Agreement or its breach, such dispute shall be settled by arbitration to be conducted in New York, New York in accordance with the Commercial Arbitration Rules (except as modified below) of the American Arbitration Association and with the Expedited Procedures thereof (collectively, the "<u>Rules</u>"). Each of the parties hereto agrees that such arbitration shall be conducted by a single arbitrator selected in accordance with the Rules; provided that such arbitrator shall be a retired judge who is experienced in deciding cases concerning the matter which is the subject of the dispute. Each of the parties agrees that in any such arbitration the award shall be made in writing no more than 30 days following the end of the proceeding. Any award rendered by the arbitrator shall be final and binding and judgment may be entered on it in any court of competent jurisdiction. The prevailing party (as determined by the arbitrator) shall in addition be awarded by the arbitrator such party's own attorney's fees and expenses in connection with such proceeding. The non-prevailing party (as determined by the arbitrator) shall pay the fees and expenses of the arbitration.

[*Signature Page Follows*]

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| | | |
|:---|:---|:---|
| **PERSHING SQUARE HOLDCO, L.P.,** | **PERSHING SQUARE HOLDCO, L.P.,** | **PERSHING SQUARE HOLDCO, L.P.,** |
| By: | PERSHING SQUARE HOLDCO GP, LLC, its sole general partner | PERSHING SQUARE HOLDCO GP, LLC, its sole general partner |
| By: | PS HOLDCO GP MANAGING MEMBER, LLC, its sole member | PS HOLDCO GP MANAGING MEMBER, LLC, its sole member |
| By: | /s/ William A. Ackman | /s/ William A. Ackman |
|  | Name: | William A. Ackman |
|  | Title: | Sole Member |

---

[*Signature Page to Variable Compensation Agreement*]

------

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| | | |
|:---|:---|:---|
| **PERSHING SQUARE CAPITAL MANAGEMENT, L.P.** | **PERSHING SQUARE CAPITAL MANAGEMENT, L.P.** | **PERSHING SQUARE CAPITAL MANAGEMENT, L.P.** |
| By: | PS MANAGEMENT GP, LLC, its general partner | PS MANAGEMENT GP, LLC, its general partner |
| By: | /s/ William A. Ackman | /s/ William A. Ackman |
|  | Name: | William A. Ackman |
|  | Title: | Managing Member |

---

[*Signature Page to Variable Compensation Agreement*]

------

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| | | |
|:---|:---|:---|
| **PS VARIABLECO, LLC** | **PS VARIABLECO, LLC** | **PS VARIABLECO, LLC** |
| By: | PS HOLDCO GP MANAGING MEMBER, LLC, its sole managing member | PS HOLDCO GP MANAGING MEMBER, LLC, its sole managing member |
| By: | /s/ William A. Ackman | /s/ William A. Ackman |
|  | Name: | William A. Ackman |
|  | Title: | Sole Member |

---

[*Signature Page to Variable Compensation Agreement*]

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## Exhibit 10.16

<u> </u>

------

**Exhibit 10.16**

<br> <u>AMENDED AND RESTATED</u>

<u>INVESTMENT MANAGEMENT AGREEMENT</u>

Dated as of 5 August 2025

This Amended and Restated Investment Management Agreement (this "<u>Agreement</u>") is made and entered into as of the date set forth above by and between Pershing Square Holdings, Ltd., a Guernsey limited liability company (the "<u>Company</u>"), and Pershing Square Capital Management, L.P., a Delaware limited partnership (the "<u>Investment Manager</u>" and, together with the Company, the "<u>Parties</u>"). Capitalized terms used in the preamble and recitals of this Agreement and not otherwise defined therein are defined in Section 1.

<u>R E C I T A L S</u>:

WHEREAS, the Company has appointed the Investment Manager to perform various investment management services for the Company;

WHEREAS, the Company and the Investment Manager are parties to that certain Investment Management Agreement, dated as of 16 October, 2012 and amended and restated as of 1 October, 2014, 1 December 2016, 12 February 2019 and 7 February 2024 (as so amended, the "<u>Amended Agreement</u>");

WHEREAS, the Parties wish to amend and restate the Amended Agreement in order to provide for potential reductions to the fees otherwise payable to the Investment Manager and to clarify certain defined terms of the Amended Agreement;

WHEREAS, Section 26 of the Amended Agreement provides that the Amended Agreement may not be amended, modified, waived or discharged except as agreed to in writing by the parties thereto; and

WHEREAS, each party to the Amended Agreement is executing this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows, effective as of the date hereof:

Section 1.

<u>Definitions</u>.

Unless otherwise expressly provided in this Agreement, the following terms used in this Agreement shall have the following meanings:

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| | |
|:---|:---|
| "<u>16% Performance Fee</u>" | means a performance fee equal to 16% of NAV Appreciation. |
| "<u>Additional Reduction</u>" | means, in connection with the calculation of any Variable Performance Fee upon a Crystallization Event, an amount equal to the *lesser* of the Potential Reduction Amount for the Variable Performance Fee Calculation Period then ending <u>and</u> 16% of NAV Appreciation. |
| "<u>Administrator</u>" | means any firm or firms as the Board may, in its discretion (with the prior consent of the Investment Manager), select for the purpose of maintaining the Company's books and records and performing administrative services (which may include back-office and mid-office services) on behalf of the Company, including tax and accounting functions. |
| "<u>Advisers Act</u>" | means the U.S. Investment Advisers Act of 1940, as amended. |

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| | |
|:---|:---|
| "<u>Affiliate</u>" | means, with respect to any specified Person: |
| (a) | any Person that directly or indirectly controls, is directly or indirectly controlled by or is directly or indirectly under common control with such specified Person; |
| (b) | any Person that serves as a director or officer (or in any similar capacity) of such specified Person; and |
| (c) | any Person with respect to which such specified Person serves as a general partner or trustee (or in any similar capacity). |
|  | For purposes of this definition, "<u>control</u>" (including "<u>controlling</u>", "<u>controlled by</u>" and "<u>under common control with</u>") means the direct or indirect possession of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. |
| "<u>Affiliated Funds</u>" | means (a) Pershing Square, L.P., a Delaware limited partnership and (b) Pershing Square International, Ltd., a Cayman Islands exempted company. |
| "<u>Agreement</u>" | shall have the meaning set forth in the preamble hereof. |
| "<u>Amended Agreement</u>" | shall have the meaning set forth in the preamble hereof. |
| "<u>Articles of Incorporation</u>" | means the Articles of Incorporation of the Company, as amended from time to time. |
| "<u>Board</u>" | means the board of directors of the Company. |
| "<u>Business Day</u>" | means any weekday on which banks in New York and any other city where the Stock Exchange is located are open for normal banking business. |
| "<u>CFTC</u>" | means the U.S. Commodity Futures Trading Commission or any successor agency. |
| "<u>Company</u>" | shall have the meaning set forth in the preamble hereof. |
| "<u>Company Documents</u>" | means the Articles of Incorporation and the Investment Policy. |
| "<u>Crystallization Event</u>" | means, with respect to any Fee-Paying Share: |
| (a) | December 31 of each Fiscal Year; |
| (b) | if the Fee-Paying Share is redeemed on a date that does not fall on December 31, the redemption date; |
| (c) | if a Dividend is declared with respect to such Fee-Paying Share, the payment date for such Dividend; |
| (d) | [Reserved]; |

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| | |
|:---|:---|
| (e) | if the Fee-Paying Share is a Management Share being converted into Public Shares on a date that does not fall on December 31, the conversion date; |
| (f) | the termination of this Agreement; and |
| (g) | the dissolution of the Company. |
| "<u>Dividend</u>" | means an ordinary cash dividend and any similar cash or in kind distribution but, for the avoidance of doubt, excludes share re-purchases whether by way of a redemption of capital or by way of an acquisition of any of the Company's own shares. |
| "<u>Dividend Crystallization Event</u>" | shall have the meaning set forth in Section 9(c) hereof. |
| "<u>Dividend Performance Fee Cap</u>" | shall have the meaning set forth in Section 9(c) hereof. |
| "<u>Fee-Paying Assets</u>" | means the NAV (before any accrued Performance Fee) attributable to Fee-Paying Shares. |
| "<u>Fee-Paying Shares</u>" | means Shares against which the Management Fee and/or the Performance Fee (or part thereof) is or are charged. |
| "<u>Fiscal Year</u>" | means the fiscal year of the Company. |
| "<u>Following Fiscal Year</u>" | means the Fiscal Year following the Fiscal Year in respect of which the applicable Performance Fee was earned. |
| "<u>HHH</u>" | shall have the meaning set forth in Section 8(c) hereof. |
| "<u>HHH Fees</u>" | shall have the meaning set forth in Section 8(c) hereof. |
| "<u>HHH Reduction Amount</u>" | shall have the meaning set forth in Section 8(c) hereof. |
| "<u>High Water Mark</u>" | means, with respect to any Fee-Paying Share, the highest period-end NAV of such Share for any period for which a Performance Fee is payable (or would be payable without taking into account the Additional Reduction) (after reduction, for the avoidance of doubt, for the applicable Performance Fee, any Investor-Related Taxes accruing at or before such period-end to the extent that such Performance Fee or Investor-Related Taxes reduce(s) the NAV of such Share); *provided* that: |
| (a) | [Reserved]; |
| (b) | [Reserved]; |
| (c) | the initial High Water Mark of a newly issued Public Share shall equal the High Water Mark per Public Share prevailing at the time of that issuance (only one High Water Mark will apply to all Public Shares, regardless of when or at what price those Shares may have been issued by the Company); |

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| | | | |
|:---|:---|:---|:---|
|  | (d) | the initial High Water Mark of any Fee-Paying Share issued on or after the date hereof and not covered by clause (c) above shall equal the subscription price of such Share; and | the initial High Water Mark of any Fee-Paying Share issued on or after the date hereof and not covered by clause (c) above shall equal the subscription price of such Share; and |
|  | (e) | in the circumstances where the Company pays a Dividend, in lieu of the adjustment to the High Water Mark otherwise provided above the High Water Mark of a Fee-Paying Share will be reduced, upon such Crystallization Event, by the percentage of NAV of such Fee-Paying Share represented by such Dividend, i.e. reduced by an amount determined by the following formula: | in the circumstances where the Company pays a Dividend, in lieu of the adjustment to the High Water Mark otherwise provided above the High Water Mark of a Fee-Paying Share will be reduced, upon such Crystallization Event, by the percentage of NAV of such Fee-Paying Share represented by such Dividend, i.e. reduced by an amount determined by the following formula: |
| ![](ny20040230x14_ex10-16img01.jpg) | ![](ny20040230x14_ex10-16img01.jpg) | ![](ny20040230x14_ex10-16img01.jpg) | ![](ny20040230x14_ex10-16img01.jpg) |
|  |  | where: | where: |
|  |  | A = | the amount of the Dividend payable in respect of such Fee-Paying Share |
|  |  | B = | the NAV of such Fee-Paying Share without giving effect to the Dividend |
|  |  | C = | the High Water Mark applicable to such Fee-Paying Share without giving effect to the Dividend |
| "<u>IFRS</u>" |  | means the International Financial Reporting Standards as issued by the International Accounting Standards Board | means the International Financial Reporting Standards as issued by the International Accounting Standards Board |
| "<u>Indemnified Losses</u>" |  | shall have the meaning set forth in Section 15(a) hereof. | shall have the meaning set forth in Section 15(a) hereof. |
| "<u>Indemnified Party</u>" |  | means the Investment Manager and each of its Affiliates, and the principals, partners, officers, employees, advisors and legal representatives (*e.g.*, executors, guardians and trustees) of any of them, including Persons formerly serving in such capacities. | means the Investment Manager and each of its Affiliates, and the principals, partners, officers, employees, advisors and legal representatives (*e.g.*, executors, guardians and trustees) of any of them, including Persons formerly serving in such capacities. |
| "<u>Internal Revenue Code</u>" |  | means the U.S. Internal Revenue Code of 1986, as amended. | means the U.S. Internal Revenue Code of 1986, as amended. |
| "<u>Investment Manager</u>" |  | shall have the meaning set forth in the preamble hereof. | shall have the meaning set forth in the preamble hereof. |
| "<u>Investment Policy</u>" |  | means the Company's investment policy set out in its most recent annual report and financial statements, as may be amended from time to time. | means the Company's investment policy set out in its most recent annual report and financial statements, as may be amended from time to time. |
| "<u>Investor-Related Taxes</u>" |  | means taxes under Sections 1471-1474 of the Internal Revenue Code or any similar law or regulation in any jurisdiction withheld from, or paid over by, the Company or a direct or indirect subsidiary thereof that are based on the status, action or inaction of a Shareholder. | means taxes under Sections 1471-1474 of the Internal Revenue Code or any similar law or regulation in any jurisdiction withheld from, or paid over by, the Company or a direct or indirect subsidiary thereof that are based on the status, action or inaction of a Shareholder. |
| "<u>Management Fee</u>" |  | shall have the meaning set forth in Section 8(a) hereof. | shall have the meaning set forth in Section 8(a) hereof. |
| "<u>NAV</u>" |  | means the net asset value as determined by the Company or any of its agents, including the Administrator and/or the Sub-Administrator, as the case may be, in accordance with the Articles of Incorporation. | means the net asset value as determined by the Company or any of its agents, including the Administrator and/or the Sub-Administrator, as the case may be, in accordance with the Articles of Incorporation. |

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| | |
|:---|:---|
| "<u>NAV Appreciation</u>" | means the net realized and unrealized appreciation in the NAV of a Fee-Paying Share (before giving effect to the applicable Performance Fee accruing at such Crystallization Event) above the High Water Mark applicable to such Share, as measured at the time of a Crystallization Event, such appreciation to be calculated without giving effect to any Investor-Related Taxes that have accrued since such High Water Mark was set in accordance with the terms hereof. Without limiting the generality of the foregoing, NAV Appreciation shall include, with respect to any Public Share, any appreciation in the NAV of such Public Share resulting from the issuance of Public Shares at a premium over, or the repurchase of Public Shares at a discount to, the then prevailing NAV of the Public Shares. |
| "<u>Other Accounts</u>" | means other accounts to which the Investment Manager or any of its Affiliates provides investment services from time to time. |
| "<u>Other Funds</u>" | means the Affiliated Funds and other current and future funds the Investment Manager or any of its affiliates manages from time to time, including funds that are co-investment vehicles established for purposes of investing in public equities, other than any private real estate funds (*i.e.*, funds whose primary investment objective is making investments in real estate or real estate related securities or assets) or private equity funds (*i.e.*, funds whose primary investment objective is making investments in securities of private companies) or any funds the inclusion of the management fees, performance fees or incentive allocation of which could, as determined in the sole discretion of the Investment Manager, result in adverse legal, tax or regulatory consequences for such other funds, the Company, the Investment Manager and/or any affiliates of the foregoing. For the avoidance of doubt, the term 'fund' used in this definition has the commonly understood meaning of pooled investment vehicles primarily engaged in investing and trading in securities for investment gain and excludes operating companies, including holding companies primarily engaged in acquiring securities of operating companies in order to participate in the conduct of their operating businesses. |
| "<u>Parties</u>" | shall have the meaning set forth in the preamble hereof. |
| "<u>Performance Fee</u>" | means the 16% Performance Fee, the Variable Performance Fee or, with respect to Management Shares, any performance fee as calculated in accordance with Section 10 hereof, as applicable. |
| "<u>Pershing Square Advisers</u>" | means, collectively, the Investment Manager and its Affiliates. |
| "<u>Person</u>" | means a natural person, partnership, limited liability company, corporation, unincorporated association, joint venture, trust, estate or any other entity or any governmental agency or political subdivision thereof. |

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| | |
|:---|:---|
| "<u>Potential Reduction Amount</u>" | means, for any Variable Performance Fee Calculation Period, (a) a notional amount equal to 20% of the dollar value of the performance fees or incentive allocation that the Investment Manager and its Affiliates have earned on the gains of the Other Funds in respect of that period *plus* (b) solely with respect to Other Funds that as part of their terms (and not due to performance) do not have performance fees or incentive allocation, a notional amount equal to 20% of the dollar value of the management fees that the Investment Manager and its Affiliates have earned on the assets of such Other Funds in respect of that period *plus* (c) if the Potential Reduction Amount for the immediately preceding Variable Performance Fee Calculation Period was not fully utilized in reducing the Variable Performance Fee for that immediately preceding period, the amount not utilized for that immediately preceding period. For the avoidance of doubt, the effect of adding the amount specified in clause (c) is to carry over any portion of a Potential Reduction Amount for that period that is not used to reduce the Variable Performance Fee for that period, from calculation period to calculation period, until it is used in the calculation of Additional Reduction. |
| "<u>Proceedings</u>" | means claims, demands, actions, suits or proceedings (civil, criminal, administrative or investigative, which includes formal and informal inquiries and "sweep" examinations in connection with the Company's investment activity), actual or threatened. |
| "<u>Public Shares</u>" | means publicly tradable shares of the Company that are not redeemable at the Shareholders' option. |
| "<u>Security</u>" and "<u>Securities</u>" | means interests commonly referred to as securities, other financial instruments of U.S. and non-U.S. entities and other assets, including capital stock; shares of beneficial interest; partnership interests and similar financial instruments; bonds, notes and debentures (whether subordinated, convertible or otherwise); currencies; commodities; physical and intangible assets; interest rate, currency, commodity, equity and other derivative products, including (i) futures contracts (and options thereon) relating to stock indices, currencies, U.S. Government securities and securities of non-U.S. governments, other financial instruments and all other commodities, (ii) swaps, options, swaptions, warrants, caps, collars, floors and forward rate agreements, (iii) spot and forward currency transactions and (iv) agreements relating to or securing such transactions; mortgage-backed obligations issued or collateralized by U.S. Federal agencies (including fixed-rate pass-throughs, adjustable rate mortgages, collateralized mortgage obligations, stripped mortgage-backed securities and REMICs); repurchase and reverse repurchase agreements; loans; structured finance instruments; accounts and notes receivable and payable held by trade or other creditors; trade acceptances; contract and other claims; executory contracts; participations; mutual funds, exchange traded funds and similar financial instruments; money market funds; obligations of the United States or any non-U.S. government, or any country, state, governmental agency or political subdivision thereof; commercial paper; certificates of deposit; bankers' acceptances; choses in action; trust receipts; and any other obligations and instruments or evidences of indebtedness of whatever kind or nature that exist now or are hereafter created; in each case, of any Person, whether or not publicly traded or readily marketable. |

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| | |
|:---|:---|
| "<u>Services Agreement</u>" | shall have the meaning set forth in Section 8(c) hereof. |
| "<u>Shareholder</u>" | means a shareholder of the Company. |
| "<u>Shares</u>" | means shares of the Company in issue from time to time, excluding, for the avoidance of doubt, any treasury shares. |
| "<u>Special Voting Share</u>" | shall have the meaning set forth in the Articles of Incorporation. |
| "<u>Stock Exchange</u>" | means the stock exchange(s) on which the Public Shares are then admitted to trading. |
| "<u>Sub-Administrator</u>" | means any firm or firms to which the Administrator has (with the prior consent of the Company and the Investment Manager) delegated part or all of its functions. |
| "<u>Trade Error</u>" | means any trade error and similar human error involving any transaction in any Company account, including: (i) the placement of orders (either purchases or sales) in excess of the amount of Securities the Company intended to trade; (ii) the sale of a Security when it should have been purchased; (iii) the purchase of a Security when it should have been sold; (iv) the purchase or sale of the wrong Security; (v) the purchase or sale of a Security contrary to regulatory restrictions or Company investment guidelines or restrictions; and (vi) incorrect allocations of Securities. |
| "<u>Trade Error Loss</u>" | means any realized and unrealized depreciation in the value of, and expense or other loss incurred with respect to, a Security held by the Company attributable to any Trade Error. |
| "<u>Variable Performance Fee</u>" | shall have the meaning set forth in Section 9(c) hereof. |
| "<u>Variable Performance Fee Calculation Period</u>" | means a period from and including the day after a Crystallization Event to and including the next Crystallization Event. |

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Section 2.

<u>Interpretation and Construction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) common nouns and pronouns and any variation thereof shall be deemed to refer to masculine, feminine, or neuter, singular or plural, as the identity of the Person, Persons or other reference in the context requires;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) where specific language is used to clarify by example a general statement contained in this Agreement, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "any" shall mean "one or more";

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "including" (and with correlative meaning "include") means including without limiting the generality of any description preceding such term; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all references to "funds", "dollars" or "payments" shall mean United States dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The language used in this Agreement has been chosen by the parties to express their mutual intent, and no rule of construction or interpretation requiring this Agreement to be construed or interpreted against any party shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Unless otherwise specified in this Agreement, all accounting terms used in this Agreement shall be interpreted and all accounting determinations hereunder shall be made in accordance with IFRS.

Section 3.

<u>Appointment of the Investment Manager</u>. Under the terms of this Agreement, the Investment Manager shall act as investment manager to the Company, and, as such, shall manage the investments of the Company and the risks related thereto. The Investment Manager undertakes to give the Company the benefit of its best judgment and efforts in rendering its services.

Section 4.

<u>Authority and Responsibility of the Investment Manager</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with its obligations hereunder, the Investment Manager shall have the authority for and in the name of the Company, subject to Sections 5 and 7 hereof, to perform any acts as the Investment Manager deems necessary or appropriate in order to effectuate the investment objective of the Company, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provide research and analysis and direct the formulation of investment strategies for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) acquire a long position or establish a short position with respect to any Security and make purchases or sales increasing, decreasing or liquidating such position or changing from a long position to a short position or from a short position to a long position, without any limitation as to the frequency of the fluctuation in such positions or as to the frequency of the changes in the nature of such positions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) purchase Securities and hold them for investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) enter into contracts for or in connection with investments in Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) possess, transfer, mortgage, pledge or otherwise deal in, and exercise all rights, powers, privileges and other incidents of ownership or possession with respect to, Securities and other property and funds held or owned by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) lend, either with or without security, any Securities, funds or other properties of the Company and, from time to time, without limit as to the amount, borrow or raise funds and secure the payment of obligations of the Company by mortgage upon, or pledge or hypothecation of, or guarantee of, all or any part of the property of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) open, maintain and close accounts, including margin and custodial accounts, with brokers and dealers, which power shall include the authority to issue all instructions and authorizations to brokers and dealers regarding the Securities and/or money therein;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) pay, or authorize the payment and reimbursement of, brokerage commissions that may be in excess of the lowest rates available that are paid to brokers who execute transactions for the account of the Company and who (i) supply, or pay for (or rebate a portion of the Company's brokerage commissions to the Company for payment of) the cost of, brokerage, research or execution services utilized by the Company or the Other Accounts and/or (ii) pay for (or rebate a portion of the Company's brokerage commissions for the payment of) obligations of the Company (as provided in Section 12) or the Company's share of such obligations; provided that the selection of a broker shall be made on the basis of seeking best execution and other relevant considerations, including: confidentiality; price quotes; the size of the transaction and ability to find liquidity; the broker-dealer's promptness of execution; the nature of the market for the financial instrument; the timing of the transaction; the difficulty of execution; the broker-dealer's expertise in the specific financial instrument or sector in which the Company seeks to trade; the extent to which the broker-dealer makes a market in the financial instrument involved or has access to such markets; the broker-dealer's skill in positioning the financial instruments involved; the broker-dealer's financial stability; the broker-dealer's reputation for diligence, fairness and integrity; the quality of service rendered by the broker-dealer in other transactions for the Investment Manager; the quality and usefulness of brokerage and research services and investment ideas presented by the broker-dealer or third parties; the broker-dealer's willingness to correct errors; the broker-dealer's ability to accommodate any special execution or order handling requirements that may surround the particular transaction; and other factors deemed appropriate by the Investment Manager. The Investment Manager may, but need not, solicit competitive bids and does not have an obligation to execute trades solely based on the lowest available commission cost or spread;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) open, maintain and close accounts, including custodial accounts, with banks, including banks located outside the United States, and wire funds, draw checks, or make other orders for the payment of monies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) combine purchase or sale orders on behalf of the Company with orders for Other Accounts and allocate the Securities or other assets so purchased or sold, on an average-price basis or by any other method of fair allocation, among such accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) enter into arrangements with brokers to open "average price" accounts wherein orders placed during a trading day are placed on behalf of the Company and Other Accounts and are allocated among such accounts using an average price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) enter into trades in Securities through a market-maker ("interpositioning") and engage in "step-out" transactions in which the Company pays commissions in respect of a transaction to one broker, whereas the transaction is executed by a different broker;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) organize one or more corporations or other entities to invest (whether alone or together with the Other Accounts), in Securities or participations in Securities of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) allocate investment opportunities, effect "cross" or "rebalancing" transactions and allocate expenses among the Company and Other Accounts in accordance with the policies of the Pershing Square Advisers as in effect as of the date hereof and, with the prior consent of the Company (which consent shall not be unreasonably withheld or delayed), as amended from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) cause the Company to engage in agency, agency cross and principal transactions (as described in U.S. federal securities laws) with the Investment Manager or its Affiliates to the extent permitted by applicable laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) [Reserved];

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) provide the Administrator, the Sub-Administrator or other service providers to the Company, with such information and instructions as may be necessary to enable such service providers to perform their duties in accordance with the applicable agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) assist in the valuation of the Company's investment portfolio, subject to oversight by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) engage attorneys, independent accountants, other service providers and such other Persons as the Investment Manager may deem necessary or advisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) retain any Person selected by the Investment Manager to act as placement agent or underwriter for the Company, and cause the Company to compensate such placement agent or underwriter for such services and reimburse it for such costs or expenses as it may incur on behalf of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) authorize any partner, member, employee or other agent of the Investment Manager or its Affiliates or other agent of the Company to act for and on behalf of the Company in all matters incidental to the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) in any wind down of the Company's operations, manage, on behalf of the Company, the realization of the Company's assets and the distribution thereof to Shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) do any and all acts on behalf of the Company as the Investment Manager may deem necessary or advisable in connection with the maintenance and administration of the Company, and exercise all rights of the Company, with respect to its interest in any Person, including the voting of Securities, participation in arrangements with creditors, the institution and settlement or compromise of Proceedings and other like or similar matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For so long as this Agreement remains in effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Investment Manager shall have sole authority to make investment decisions for and, unless otherwise specifically agreed in writing by the Company and the Investment Manager, to determine how to vote any Securities held by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Investment Manager (or such other Person as may be appointed by the Investment Manager with the Board's prior consent) shall have sole responsibility with respect to all matters that, pursuant to the U.S. Commodity Exchange Act and the regulations and interpretations of the CFTC or the Staff thereof, as they may be amended or supplemented from time to time, must be performed by a registered "commodity pool operator," including, without limitation, retaining and terminating the Company's commodity trading advisor(s) and its futures commission merchant(s), and the Investment Manager agrees to register as a commodity pool operator with the CFTC as such registration may be required with respect to the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) recognizing that the size of the assets of the Company under management of the Investment Manager is a key component of the investment management strategy that the Investment Manager intends to pursue, the Company agrees that it shall not declare or pay any cash or in-kind distributions to the Shareholders, including, without limitation, by way of (interim) dividend or share repurchases, without the prior written consent of the Investment Manager; and no distributions to the Shareholders shall be paid in excess of the amounts permitted under applicable law or approved by the Board and the Investment Manager.

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Section 5.

<u>Control and Period Reports</u>. The activities engaged in by the Investment Manager on behalf of the Company shall be subject to the control of the Board. The Investment Manager shall submit such periodic reports to the Board regarding the Investment Manager's activities hereunder as the Board may reasonably request.

Section 6.

<u>Status of the Investment Manager</u>. The Investment Manager shall, for all purposes hereof, be an independent contractor and not an employee of the Company, and nothing in this Agreement shall be construed as making the Company a partner or co-venturer with the Investment Manager or any of its Affiliates or Other Accounts.

Section 7.

<u>Investments</u>. All investments of the Company and other activities undertaken by the Investment Manager on behalf of the Company shall at all times conform to, and be in accordance with, the requirements imposed by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any provisions of applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any policies adopted by the Board;

*provided*, *however*, that in the case of clauses (b) and (c) above the Investment Manager shall not be bound by any update of or modification or amendment to the Company Documents or policies of the Board adopted after the date hereof to the extent such update, modification or amendment affects the activities of the Investment Management hereunder, unless and until the Investment Manager has approved such update, modification or amendment (which approval should not be unreasonably withheld or delayed).

Section 8.

<u>Management Fee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall pay the Investment Manager, each fiscal quarter, a fee for investment management services (the "<u>Management Fee</u>") equal to 0.375% (1.5% per annum) of the Fee-Paying Assets of the Company attributable to (a) each Fee-Paying Share in issue on the last day of the previous fiscal quarter (excluding any such Share redeemed on that day) and (b) each new Fee-Paying Share issued as of the first day of the current fiscal quarter, subject to reduction by the HHH Reduction Amount pursuant to Section 8(c) below. The Management Fee shall be calculated and paid in advance on the first Business Day of each fiscal quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Management Fee shall be prorated for any Fee-Paying Shares issued other than as of the first day of a fiscal quarter, on the basis of the actual number of days remaining in the quarter. The Investment Manager shall, as soon as reasonably practicable, refund the Company for the unearned portion of the Management Fee paid (i) on any Fee-Paying Share redeemed or repurchased by the Company other than as of the last day of a fiscal quarter, and (ii) in connection with any amount paid as a Dividend in respect of such Fee-Paying Share other than as of the last day of a fiscal quarter.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Reference is made to the Services Agreement, dated as of May 5, 2025 (the "<u>Services Agreement</u>"), by and between the Investment Manager and Howard Hughes Holdings Inc. (including any successor, "<u>HHH</u>") and, with respect to any calendar quarter, to the "Base Fee" payable for such calendar quarter and to the "Variable Fee" payable in such calendar quarter based on the appreciation in trading price of the shares of common stock of HHH in the preceding calendar quarter, in each case as contemplated in the Services Agreement (together, the "<u>HHH Fees</u>"). The Management Fee with respect to such calendar quarter will be reduced (but not below zero) by an amount equal to the product of (i) such HHH Fees *and* (ii) the number of shares of common stock of HHH held by the Company at the time such HHH Fees were calculated *divided* by the number of shares of common stock of HHH issued and outstanding (based on the latest public filings of HHH available) at the time such HHH Fees were calculated (such product, the "<u>HHH Reduction Amount</u>"), i.e. the HHH Reduction Amount will be determined by the following formula:

![](ny20040230x14_ex10-16img02.jpg)

where:

<br> A = the HHH Fees for the applicable quarter

<br> B = the number of shares of common stock of HHH held by the Company at the time such HHH Fees were calculated

<br> C = the number of shares of common stock of HHH issued and outstanding (based on the latest public filings of HHH available) at the time such HHH Fees were calculated

To the extent that the HHH Reduction Amount is not fully utilized in reducing the Management Fee for a given calculation period, the remaining balance shall carry over to the following calculation period and applied toward a reduction of the Management Fee in such subsequent calculation period.

Section 9.

<u>Performance Fee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [Reserved.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [Reserved.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon each Crystallization Event for any Fee-Paying Share, the Company shall pay the Investment Manager, in return for services rendered by the Investment Manager to the Company, a performance fee equal to 16% of NAV Appreciation *minus* the Additional Reduction; <u>provided</u>, <u>however</u>, that, where such Crystallization Event is on account of a Dividend on such Fee-Paying Share (a "<u>Dividend Crystallization Event</u>"), the performance fee payable on such Dividend Crystallization Event will be equal to: (i) the performance fee calculated as if the Crystallization Event were not a Dividend Crystallization Event multiplied by (ii) the percentage of NAV of such Fee-Paying Share represented by such Dividend, i.e., the performance fee will be an amount determined by the following formula:

![](ny20040230x14_ex10-16img03.jpg)

where:

---

| | | |
|:---|:---|:---|
| A | = | the amount of the Dividend payable in respect of such Fee-Paying Share |

---

<br> B = the NAV of such Fee-Paying Share without giving effect to the Dividend

<br> C = the performance fee calculated as if the Crystallization Event were not a Dividend Crystallization Event

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(any performance fee paid pursuant to this Section 9(c), a "<u>Variable Performance Fee</u>") <u>provided</u>, <u>further</u>, that, notwithstanding anything to the contrary in this Agreement, the aggregate Variable Performance Fee paid during any Fiscal Year on account of one or more Dividend Crystallization Events during that Fiscal Year shall not, in aggregate, exceed 0.2499 per cent. of the NAV at the time of the beginning of that Fiscal Year (the "<u>Dividend Performance Fee Cap</u>"). Where a Variable Performance Fee linked to a Dividend Crystallization Event is capped as a result of the Dividend Performance Fee Cap, then there will be no additional Performance Fee paid on account of any subsequent Dividend Crystallization Events until the end of the relevant Fiscal Year. The Investment Manager will provide evidence to the reasonable satisfaction of the Board prior to the declaration of any Dividend that the payment of any Variable Performance Fee resulting from the relevant Crystallization Event will not exceed the Dividend Performance Fee Cap. The parties acknowledge that the Variable Performance Fee and High Water Mark calculations in this Agreement will not work as intended for Dividends payable on December 31; accordingly, the parties agree that the Company shall not pay a Dividend on December 31 unless, prior thereto, the parties agree on appropriate adjustments to this Agreement to assure that those amounts are, in the case where the Company pays a Dividend on December 31, calculated in a manner that is fair and reasonable to the Company, its shareholders and the Investment Manager and does not, under any circumstances, result in the aggregate Variable Performance Fee attributable to Dividend Crystallization Events in the preceding 12 month period to exceed the Dividend Performance Fee Cap.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [Reserved.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall pay the Investment Manager any Performance Fee as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) With respect to any Fee-Paying Shares in issue on December 31 of each Fiscal Year, the Company shall pay the Investment Manager, within 30 calendar days, 99% of the Performance Fee that crystallizes on December 31. The Company shall pay the Investment Manager the remaining 1% of such Performance Fee (as it may be reduced to appropriately take into account any adjustments to the relevant NAV used for the computation of such Performance Fee as a result of the annual audit of the financial statements of the Company for the Fiscal Year that includes such December 31) within ten calendar days after the issue by the Company of its audited financial statements for such Fiscal Year, but in any event (a) not earlier than the first day of the Following Fiscal Year and (b) not later than the last day of the Following Fiscal Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event Shares are redeemed, or a Dividend is paid in respect of Shares, in each case, on a day other than December 31, the Company shall pay the Investment Manager, within 30 calendar days of the redemption date or Dividend payment date, as applicable, 99% of the Performance Fee that crystallizes upon such date. The Company shall pay to the Investment Manager the remaining 1% of such Performance Fee (as it may be reduced to appropriately take into account any adjustments to the relevant NAV used for the computation of such Performance Fee as a result of the annual audit of the financial statements of the Company for the Fiscal Year that includes such redemption date or Dividend payment date, as applicable) within ten days after the issue by the Company of its audited financial statements for such Fiscal Year, but in any event (a) not earlier than the first day of the Following Fiscal Year and (b) not later than the last day of the Following Fiscal Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [Reserved.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In the event this Agreement is terminated, or the Company is dissolved, other than on December 31, the Company shall pay to the Investment Manager the Performance Fee that crystallizes upon the termination or dissolution, as applicable, as if the termination or dissolution were a redemption; *provided* that, if such termination or dissolution constitutes a "separation from service" or a "change in the ownership or effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company" within the meaning of Section 409A of the Internal Revenue Code, the Company shall pay the Investment Manager the remaining 1% of such Performance Fee on the *earlier* of (a) the 90<sup>th</sup> day following the termination or dissolution date, or such later date as the Company may determine provided that such date occurs within the same Fiscal Year as the 90<sup>th</sup> day following the termination date, <u>and</u> (b) the date determined pursuant to Section 9(e)(ii) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) For avoidance of doubt, in the event this Agreement is terminated, or the Company is dissolved, and, after computing the Performance Fee then crystallizing, there shall remain any carried over Potential Reduction Amount, such amount shall be cancelled without any payment in respect thereof.

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Section 10.

<u>Management Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties agree that all shares issued by the Company (other than Management Shares) shall be Fee-Paying Shares subject to full Management Fee and Performance Fee; *provided* that the Investment Manager may determine to waive, reduce or calculate differently the Management Fee and/or the Performance Fee with respect to Shares issued to certain Shareholders, including the Investment Manager itself and certain members, partners, officers, managers, employees or Affiliates of the Investment Manager or certain other Shareholders (any such shares, "<u>Management Shares</u>"). Management Shares shall be issued as a separate class and, as the case may be, in different series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Holders of Management Shares shall be entitled to convert those shares into Public Shares (with the same aggregate NAV) monthly as of the last day of each calendar month, and the Performance Fee crystallizing upon such conversion date (to the extent those Management Shares bear a Performance Fee) will be taken into account in determining the NAV of the Management Shares being converted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Investment Manager shall have the right to exchange Management Shares for Public Shares it holds from time to time, or *vice versa*, based on a NAV-for-NAV exchange ratio by delivering a notice to that effect to the Company at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [Reserved.]

Section 11.

<u>Expenses of the Investment Manager</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the term of this Agreement, the Investment Manager shall pay all costs and expenses relating to the general operation of its business, including administrative expenses, employment expenses, office expenses, rent, and all or any part of the Investment Manager's legal expenses that are not incurred for the benefit of the Company (or, for the avoidance of doubt, the benefit of Other Accounts).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [Reserved.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All costs and expenses incurred by the Investment Manager on behalf of the Company which are not specifically assumed by the Investment Manager under this Section 11 shall be borne by the Company in accordance with Section 12 hereof.

Section 12.

<u>Expenses of the Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Investment Manager shall be authorized to incur and pay all expenses on behalf of the Company in connection with the Company's business which it deems necessary or desirable, and to charge or be reimbursed by the Company therefor, including: accounting, auditing, entity-level taxes and tax preparation expenses, legal fees and expenses (including expenses relating to regulatory filings made in connection with the Company's business, indemnification expenses and expenses relating to regulatory or similar investigations, inquiries and "sweeps"), professional fees and expenses (including fees and expenses of investment bankers, appraisers, public and government relations firms and other consultants and experts), investment-related expenses (including research and expenses (including travel and lodging expenses) associated with activist campaigns (both long and short), such as expenses related to event hosting and production, public presentations, public relations, public affairs and government relations, forensic and other analyses and investigation, proxy contests, solicitations and tender offers and compensation, indemnification and expenses of any nominees proposed by the Investment Manager as directors or executives of portfolio companies), printing and postage expenses, brokerage fees and commissions, expenses relating to short sales (including dividend and stock borrowing expenses), clearing and settlement charges, custodial fees, bank service fees, margin and other interest expense and transaction fees, "blue sky" and corporate filing fees and expenses, insurance expenses, initial offering and organizational expenses and on-going offering expenses (subject to any different arrangement as provided herein), the Management Fee, the Performance Fee and payments for custody of the Company's assets and for the performance of administrative services, and other Company expenses as approved by the Board from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any of the expenses listed in Section 12(a) are incurred jointly for the account of the Company and any Other Accounts, such expenses shall be allocated among the Company and such Other Accounts in proportion to the size of the investment made by each to which such expense relates, or in such other manner as the Investment Manager considers fair and equitable, and such allocation shall be final and binding on the Company.

Section 13.

<u>Additional Provisions Relating to Follow-on Offerings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [Reserved.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [Reserved.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Fund conducts an offering of Public Shares at a premium over the then prevailing NAV of the Public Shares, the aggregate premium shall be allocated to the Public Shares, the Special Voting Share and the Management Shares *pro rata* in accordance with the NAV of the existing Public Shares and the respective NAV of the Special Voting Share and Management Shares.

Section 14.

<u>Exculpation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Indemnified Party shall be liable to the Company (i) for the acts, receipts, neglects, defaults or omissions of any other Indemnified Party (*provided* that, in the case of the Investment Manager, the foregoing clause (i) shall apply only with respect to the acts, receipts, neglects, defaults or omissions of persons not affiliated with the Investment Manager) or (ii) for any loss on account of defect of title to any property of the Company or (iii) on account of the insufficiency of any security in or upon which any money of the Company shall be invested or (iv) for any loss incurred through any bank, broker or other similar person or (v) for any loss occasioned by any negligence, default, breach of duty, breach of trust, error of judgment or oversight on his, her or its part or (vi) for any loss, damage or misfortune whatsoever which may happen in or arise from the execution or discharge of the duties, powers authorities, or discretions of the Investment Manager and its Affiliates or in relation thereto, unless the same shall happen through his own dishonesty, bad faith or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any of the foregoing to the contrary, the provisions of this Section 14 shall not be construed so as to provide for the exculpation of any Indemnified Party for any liability (including liability under U.S. federal securities laws which, under certain circumstances, impose liability even on Persons that act in good faith), to the extent (but only to the extent) that such liability may not be waived, modified or limited under applicable law, but shall be construed so as to effectuate the provisions of this Section 14 to the fullest extent permitted by law.

Section 15.

<u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall indemnify and hold harmless each Indemnified Party against all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained by itself (collectively, "<u>Indemnified Losses</u>") arising from or in connection with, or concerning, the conduct of the Company's business or affairs or the execution or discharge of the duties, powers, authorities or discretions by the Investment Manager and its Affiliates hereunder, including any costs, charges, expenses, losses, damages or liabilities incurred by the Indemnified Party in defending (whether successfully or otherwise) any Proceedings arising from or in connection with, or concerning, the Company or its affairs in any court, whether in Guernsey or elsewhere. Any such expenses (including legal and other professional fees and disbursements) shall be paid by the Company to the Indemnified Party in advance of the final disposition of such Proceedings as soon as reasonably practicable upon request for such advance, which request shall include an undertaking by or on behalf of such Indemnified Party to repay such amount if it shall ultimately be determined that such Indemnified Party is not entitled to be indemnified by the Company hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any of the foregoing to the contrary, the provisions of this Section 15 shall not be construed so as to provide for the indemnification of, or advancement of expenses to, an Indemnified Party for any liability (including liability under U.S. federal securities laws which, under certain circumstances, impose liability even on Persons that act in good faith), to the extent (but only to the extent) that such indemnification would be in violation of applicable law, but shall be construed so as to effectuate the provisions of this Section 15 to the fullest extent permitted by law.

Section 16.

<u>Trade Errors</u>. The Investment Manager shall endeavor to detect Trade Errors prior to settlement and correct and/or mitigate Trade Errors in an expeditious manner. To the extent a Trade Error is caused by a third party, such as a broker, the Investment Manager shall seek to recover any related Trade Error Losses from such third party. Unless a Trade Error has resulted from dishonesty, bad faith or wilful misconduct on the part of the Investment Manager, any related Trade Errors Losses shall be borne by the Company.

Section 17.

<u>Activities of the Investment Manager and Others</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Pershing Square Advisers may engage, simultaneously with their investment management activities on behalf of the Company, in other businesses, and may render services similar to those described in this Agreement for other Persons, and shall not by reason of such engaging in other businesses or rendering of services for others be deemed to be acting in conflict with the interests of the Company. The Pershing Square Advisers, in their individual capacities, may be Shareholders, directors, employees, agents or officers of the Company (or of any entity in which the Company holds any Securities) but shall not be deemed by reason of such functions to have interests that are in conflict with the interests of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The investment management services of the Investment Manager under this Agreement are not, and are not deemed, exclusive and the Investment Manager and its Affiliates shall be free to render similar services to others. Nothing in this Agreement shall limit or restrict the right of any principal, partner, officer or employee of the Investment Manager to engage in any other business or to devote his time and attention in part to any other business.

Section 18.

<u>Use of Name</u>. The Company acknowledges that it adopted its name and any derivative, such as its ticker or trading symbol, through the permission of the Investment Manager. The Investment Manager hereby consents to the non-exclusive use by the Company of its name (*i.e*., "Pershing Square Holdings, Ltd.") and any such derivative only for so long as the Investment Manager serves as the investment manager of the Company. The Company agrees to indemnify and hold harmless the Pershing Square Advisers from and against any and all Indemnified Losses, which may arise out of the Company's use or misuse of the applicable name or derivative out of any breach of or failure to comply with this Section 18.

Section 19.

<u>Limitations on Reference to Investment Manager</u>. The Company shall not distribute or circulate any sales literature, promotional or other material which contains any reference to the Investment Manager without the prior approval of the Investment Manager, and shall submit in draft form all such materials requiring approval of the Investment Manager, allowing sufficient time for review by the Investment Manager and its counsel prior to any deadline for printing or publication. If the Investment Manager ceases to furnish services to the Company, the Company at its expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as promptly as practicable, shall take all necessary action to cause the Company Documents to be amended to accomplish a change of name (or change of derivative such as the ticker or trading symbol) to eliminate any reference to the Investment Manager; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) within 60 days after the date as of which the Investment Manager ceases to furnish services to the Company, shall cease to use in any other manner, including use in any sales literature or promotional material, the name of the Investment Manager, except as otherwise required by applicable law, regulations or rules of a self-regulatory organization, including the Stock Exchange, or for purposes of regulatory filings or reporting as required by applicable law, regulations or rules of a self-regulatory organization, including the Stock Exchange.

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Section 20.

<u>Term</u>. This Agreement shall become effective as of the date hereof and remain in effect until December 31, 2025, and shall automatically renew from year to year thereafter, except that it may be terminated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as of December 31 of any year upon four months' prior written notice by either party, subject, in the case of termination by the Company, to approval by a 66% vote (by voting power) of the holders of the then outstanding voting shares of the Company, together with a 66% vote (by voting power) of the holders of the then outstanding Public Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in case of dissolution or liquidation of either party or if a receiver or provisional liquidator or administrator or similar officer is appointed over any of the assets of such party or if either party commits a material breach of its obligations under this Agreement and such breach remains uncured for more than 30 calendar days after notice thereof delivered to the party in breach by the other party in accordance with this Agreement, at any time by the other party.

Section 21.

<u>Choice of Law</u>. Notwithstanding the place where this Agreement may be executed by either of the parties hereto, the parties expressly agree that all of the terms and provisions hereof shall be governed by and construed under the laws of the State of New York applicable to contracts made and to be entirely performed in such state.

Section 22.

<u>Severability</u>. If any provision of this Agreement is invalid or unenforceable under any applicable law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such applicable law. Any provision hereof which may be held invalid or unenforceable under any applicable law shall not affect the validity or enforceability of any other provisions hereof, and to this extent the provisions hereof shall be severable.

Section 23.

<u>Forum</u>. To the fullest extent permitted by law, in the event of any Proceeding arising out of the terms and conditions of this Agreement, the parties hereto irrevocably (i) consent and submit to the exclusive jurisdiction of the Supreme Court, State of New York, New York County and of the U.S. District Court for the Southern District of New York, (ii) waive any defense based on doctrines of venue or *forum non conveniens*, or similar rules or doctrines, and (iii) agree that all claims in respect of such a Proceeding must be heard and determined exclusively in the Supreme Court, State of New York, New York County or the U.S. District Court for the Southern District of New York. Process in any such Proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.

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Section 24.

<u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each notice relating to this Agreement shall be in writing and delivered in person, by registered or certified mail, by Federal Express or similar overnight courier service, by electronic mail (e-mail) or by facsimile, to the intended recipient as follows:

*If to the Company:*

Pershing Square Holdings, Ltd.

Trafalgar Court

Les Banques St.

St. Peter Port, Guernsey GY1 3JX

E-mail: [email address]

*If to the Investment Manager:*

Pershing Square Capital Management, L.P.

787 Eleventh Avenue, 9th Floor

New York, New York 10019

Attn: Chief Legal Officer

E-mail: [email address]

Fax: [phone number]

With an additional copy to:

Sullivan & Cromwell LLP

125 Broad Street

New York, New York 10004-2498

Attn: William Farrar

E-mail: [email address]

Fax: [phone number]

Sullivan & Cromwell LLP

125 Broad Street

New York, New York 10004-2498

Attn: Ken Li

E-mail: [email address]

Fax: [phone number]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any party hereto may designate a new address by notice to that effect given to the other party. Unless otherwise specifically provided in this Agreement, a notice shall be deemed to have been effectively given when delivered personally, if delivered on a Business Day; the next Business Day after personal delivery if delivered personally on a day that is not a Business Day; four Business Days after being deposited in the mail, postage prepaid, return receipt requested, if mailed; on the next Business Day after being deposited for next day delivery with Federal Express, DHL or similar overnight courier; when sent, if e-mailed on a Business Day; the next Business Day following the day on which the e-mail is sent if e-mailed on a day that is not a Business Day; when receipt is acknowledged, if facsimiled on a Business Day; and the next Business Day following the day on which receipt is acknowledged if facsimiled on a day that is not a Business Day.

Section 25.

 <u>Entire Agreement</u>. This Agreement contains all of the terms agreed upon or made by the parties relating to the subject matter of this Agreement, and supersedes all prior and contemporaneous agreements, negotiations, correspondence, undertakings, communications and public or private disclosures of the parties, oral or written, respecting such subject matter.

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Section 26.

<u>Amendments and Waivers</u>. No provision of this Agreement may be amended, modified, waived or discharged except as agreed to in writing by the parties. The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver thereof or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

Section 27.

<u>Binding Effect; Assignment</u>. This Agreement shall be binding upon and inure to the benefit of the Company, the Investment Manager, each Indemnified Party and their respective successors and permitted assigns. Any Person that is not a signatory to this Agreement but is nevertheless conferred any rights or benefits hereunder (*e.g*., Indemnified Parties) shall be entitled to such rights and benefits as if such Person were a signatory hereto, and the rights and benefits of such Person hereunder may not be impaired without such Person's express written consent. No assignment (as that term is defined under the Advisers Act) by either party of all or any portion of its rights, obligations or liabilities under this Agreement shall be permitted without the prior written consent of the other party to this Agreement.

Section 28.

<u>Headings</u>. The headings of the Sections of this Agreement are for convenience of reference only, and are not to be considered in construing the terms and provisions of this Agreement. References to "Section" in this Agreement shall be deemed to refer to the indicated Section of this Agreement, unless the context clearly indicates otherwise.

Section 29.

<u>Discretion; Good Faith</u>. Whenever in this Agreement the Investment Manager is permitted or required to make a decision (i) in its "discretion" or under a grant of similar authority or latitude, the Investment Manager shall be entitled to consider such interests and factors as it desires, including the interest of Other Accounts and its own interests, or (ii) in its "good faith" or under another express standard, the Investment Manager shall act under such express standard, shall not be subject to any other or different standard imposed by applicable law and may exercise its discretion differently with respect to different Shareholders.

Section 30.

<u>Counterparts</u>. Counterparts may be executed through the use of separate signature pages or in any number of counterparts with the same effect as if the parties executing such counterparts had all executed one counterpart. Each party understands and agrees that any portable document format (PDF) file, facsimile or other reproduction of its signature on any counterpart shall be equal to and enforceable as its original signature and that any such reproduction shall be a counterpart hereof that is fully enforceable in any court or arbitral panel of competent jurisdiction.

Section 31.

<u>Survival</u>. The provisions of Section 1 and 2, Sections 8 and 9 (only to the extent that the Management Fee and/or Performance Fee are earned by the Investment Manager upon or prior to termination of this Agreement), Section 11 to 19 and Sections 21 to 32 shall survive the termination of this Agreement.

Section 32.

<u>Waiver of Jury Trial</u>. **EACH PARTY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ITS RIGHT TO A TRIAL BY JURY TO THE EXTENT PERMITTED BY LAW IN ANY PROCEEDING ARISING OUT OF THE TERMS AND CONDITIONS OF THIS AGREEMENT. THIS WAIVER APPLIES TO ANY PROCEEDING, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. EACH PARTY ACKNOWLEDGES THAT IT HAS RECEIVED THE ADVICE OF COMPETENT COUNSEL.**

*The rest of this page is intentionally left blank.*

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IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed as of the date first set forth above.

---

| | |
|:---|:---|
| PERSHING SQUARE HOLDINGS. LTD | PERSHING SQUARE HOLDINGS. LTD |
| By: | /s/ Rupert Morley |
|  | Name: Rupert Morley |
|  | Title: Director |
| By: | /s/ Andrew Henton |
|  | Name: Andrew Henton |
|  | Title: Director |
| PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. |
| By: | /s/ William A. Ackman |
|  | Name: William A. Ackman |
|  | Title: CEO |

---

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## Exhibit 10.17

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**Exhibit 10.17**<br>

#### SHARE PURCHASE AGREEMENT

#### by and between

#### Howard Hughes Holdings Inc.

#### and

#### Pershing Square Holdco, L.P.

#### Dated as of May 5, 2025

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---

| | | |
|:---|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |  |
|  |  | <u>Page</u> |
| 1. | Purchase and Sale | 1 |
| 2. | Closing | 1 |
| 3. | Deliverables at Closing | 1 |
| 4. | Closing Conditions | 2 |
| 5. | Representations and Warranties | 2 |
| 6. | Miscellaneous | 17 |

---

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SHARE PURCHASE AGREEMENT

This SHARE PURCHASE AGREEMENT, dated as of May 5, 2025 (this "<u>Agreement</u>"), is entered into by and between Howard Hughes Holdings Inc. (the "<u>Company</u>") and Pershing Square Holdco, L.P. (the "<u>Purchaser</u>"). Capitalized terms not otherwise defined herein shall have the respective meanings set forth in Annex A attached hereto, as applicable.

WHEREAS, the Company desires to sell to the Purchaser, and the Purchaser desires to purchase from the Company, shares of common stock of the Company, par value $0.01 per share (the "<u>Common Stock</u>"), subject to the terms and conditions set forth in this Agreement (the "<u>Transaction</u>");

NOW, THEREFORE, in consideration of the foregoing premises, and of the representations, warranties, covenants and agreements set forth in this Agreement, the Company and the Purchaser, each intending to be legally bound, agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Purchase and Sale</u>. On the terms and subject to the conditions set forth in this Agreement, at the Closing (as defined below), the Company shall sell and transfer to the Purchaser, and the Purchaser shall purchase from the Company, nine million (9,000,000) shares of Common Stock (the "<u>Purchased Shares</u>"). The price for each Purchased Share will be $100.00 (the "<u>Per Share Purchase Price</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Closing</u>. The closing of the Transaction (the "<u>Closing</u>") shall take place via electronic exchange of documents on the Closing Date. At the Closing: (a) the Company shall cause the Purchased Shares to be delivered to the Purchaser to an account specified by the Purchaser to the Company in writing; (b) the Purchaser shall pay to the Company the Subscription Amount in immediately available funds by wire transfer to an account specified by the Company in writing to the Purchaser; (c) the Company shall cause the Purchased Shares to be approved for listing on the New York Stock Exchange, subject to official notice of issuance; and (d) the Company and the Purchaser shall deliver the other items set forth in <u>Section 3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Deliverables at Closing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the Closing, the Company shall deliver or cause to be delivered to the Purchaser the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Transaction Documents duly executed by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a certificate evidencing the formation and good standing of the Company in its jurisdiction of formation issued by the Secretary of State, as of a date within three (3) days of the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a certificate, executed on behalf of the Company by the Chief Executive Officer or Chief Financial Officer of the Company, dated as of the Closing Date, certifying to the fulfillment of the conditions specified in <u>Section 4(a)</u>, as well as certifying the Company's resolutions in furtherance of the Transaction Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Transaction Documents duly executed by the Purchaser or its Affiliates, as applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a certificate, executed on behalf of the Purchaser by the Chief Executive Officer, President or Chief Financial Officer of the Purchaser, dated as of the Closing Date, certifying to the fulfillment of the conditions specified in <u>Section 4(b)</u>, as well as certifying the Purchaser's resolutions in furtherance of the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Closing Conditions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The obligation of the Purchaser to purchase and pay for the Purchased Shares on the Closing Date is subject to the satisfaction or waiver of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each representation and warranty (other than any Company Fundamental Representation) made by the Company in <u>Section 5(a)</u> below shall be true and correct in all material respects on and as of the Closing Date as though made as of the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each Company Fundamental Representation made by the Company in <u>Section 5(a)</u> below shall be true and correct in all respects on and as of the Closing Date as though made as of the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) since the date of this Agreement, there shall not have occurred any event, fact or circumstance that has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The obligation of the Company to sell the Purchased Shares on the Closing Date is subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each representation and warranty (other than any Purchaser Fundamental Representation) made by the Purchaser in <u>Section 5(b)</u> below shall be true and correct in all material respects on and as of the Closing Date as though made as of the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each Purchaser Fundamental Representation made by the Purchaser in <u>Section 5(b)</u> below shall be true and correct in all respects on and as of the Closing Date as though made as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations and Warranties of the Company</u>. The Company represents and warrants to the Purchaser, as set forth below, except (x) as set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 (but not in documents filed as exhibits thereto or documents incorporated by reference therein) filed with the SEC on February 26, 2025 (other than in any "risk factor" disclosure or any other forward-looking disclosures contained in such reports under the headings "Risk Factors" or "Cautionary Note" or any similar sections) or (y) as set forth in the disclosure schedule delivered by the Company to the Purchaser on the date of this Agreement (the "<u>Company Disclosure Letter</u>"):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Organization and Qualification.* The Company and each of its direct and indirect Significant Subsidiaries is duly organized and is validly existing as a corporation or other form of entity, where applicable, in good standing under the Laws of their respective jurisdictions of organization, with the requisite power and authority to own, operate or manage its properties and conduct its business as currently conducted, except to the extent the failure of such Significant Subsidiary to be in good standing (to the extent the concept of good standing is applicable in its jurisdiction of organization) would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. The Company and each of its Significant Subsidiaries has been duly qualified as a foreign corporation or other form of entity for the transaction of business and, where applicable, is in good standing under the Laws of each other jurisdiction in which it owns, manages, operates or leases properties or conducts business so as to require such qualification, except to the extent the failure to be so qualified or, where applicable, be in good standing would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Corporate Power and Authority.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Company has the requisite power and authority to enter into, execute and deliver this Agreement and to perform its obligations hereunder. The Company has taken all necessary corporate action required for the due authorization, execution, delivery and performance by it of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Company has received written confirmation from the New York Stock Exchange that the issuance of the Purchased Shares to the Purchaser shall not require stockholder approval and shall be eligible for listing on the NYSE in the hands of the Purchaser or other members of the Purchaser Group without any requirement for stockholder approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Execution and Delivery; Enforceability.* (a) This Agreement has been duly and validly executed and delivered by the Company and, assuming due and valid execution and delivery by the Purchaser, constitutes its valid and binding obligation, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at Law or in equity).

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(iv) *Authorized Capital Stock.* As of the date of this Agreement, the authorized capital stock of the Company consists of 150,000,000 shares of Common Stock and 50,000,000 shares of preferred stock. The issued and outstanding capital stock of the Company and the shares of Common Stock available for grant pursuant to The Howard Hughes Corporation 2010 Amended and Restated Incentive Plan and The Howard Hughes Corporation 2020 Equity Incentive Plan as of April 23, 2025 (the "<u>Measurement Date</u>") is set forth on <u>Section 5(a)(iv)</u> of the Company Disclosure Letter. From the Measurement Date to the date of this Agreement, other than in connection with the issuance of shares of Common Stock pursuant to the exercise of options outstanding as of the Measurement Date, there has been no change in the number of outstanding shares of capital stock of the Company or the number of outstanding Equity Securities (as defined below). On the Measurement Date, there was not outstanding, and there was not reserved for issuance, any (A) share of capital stock or other voting securities of the Company or its Significant Subsidiaries; (B) security of the Company or its Subsidiaries convertible into or exchangeable or exercisable for shares of capital stock or voting securities of the Company or its Significant Subsidiaries; (C) option or other right to acquire from the Company or its Subsidiaries, or obligation of the Company or its Subsidiaries to issue, any shares of capital stock, voting securities or security convertible into or exercisable or exchangeable for shares of capital stock or voting securities of the Company or its Significant Subsidiaries, as the case may be; or (D) equity equivalent interest in the ownership or earnings of the Company or its Significant Subsidiaries or other similar right, in each case to which the Company or a Significant Subsidiary is a party (the items in clauses (A) through (D) collectively, "<u>Equity Securities</u>"). Other than (x) as contemplated by this Agreement or (y) pursuant to Contracts entered into by the Company after the date hereof and prior to the Closing that are otherwise not inconsistent with the Purchaser's rights hereunder and with respect to the Transaction and do not confer on any other Person rights that are superior to those received by the Purchaser hereunder or pursuant to the Transaction contemplated hereby other than rights and terms that are customarily granted to holders of any such Equity Securities so issued and not customarily granted in transactions such as the Transaction, (1) there is no outstanding obligation of the Company or its Subsidiaries to repurchase, redeem or otherwise acquire any Equity Security and (2) there is no stockholder agreement, voting trust or other agreement or understanding to which the Company is a party or by which the Company is bound relating to the voting, purchase, transfer or registration of any shares of capital stock of the Company or preemptive rights with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *Issuance.* The issuance of the Purchased Shares has been duly and validly authorized. When the Purchased Shares are issued and delivered in accordance with the terms of this Agreement against payment therefor, the Purchased Shares shall be duly and validly issued, fully paid and non-assessable and free and clear of all taxes, liens, pre-emptive rights, rights of first refusal and subscription rights, other than rights and restrictions under this Agreement, the Standstill Agreement and applicable state and federal securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *No Conflict.* The execution and delivery by the Company of this Agreement, the performance by the Company of its respective obligations under this Agreement and compliance by the Company with all of the provisions hereof and thereof and the consummation of the Transaction, (x) shall not conflict with, or result in a breach or violation of, any of the terms or provisions of, or constitute a default under, or result in the acceleration of, or the creation of any lien under, or give rise to any termination right under, any Contract to which the Company or any of the Company's Subsidiaries is a party or by which any of their material assets are subject or encumbered, (y) shall not result in any violation or breach of any terms, conditions or provisions of the certificate of incorporation or bylaws of the Company, or the comparable organizational documents of the Company's Subsidiaries, and (z) shall not conflict with or result in any violation or breach of, or any termination or impairment of any rights under, any statute or any license, authorization, injunction, judgment, order, decree, rule or regulation of any court or governmental agency or body having jurisdiction over the Company or any of its Subsidiaries or any of their respective properties or assets, except, in the case of each of clauses (x) and (z) above, for any such conflict, breach, acceleration, lien, termination, impairment, failure to comply, default or violation that would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) *Consents and Approvals.* No consent, approval, authorization, order, registration or qualification of or with any Governmental Entity having jurisdiction over the Company or any of its Subsidiaries or any of their respective properties is required for (A) the issuance, sale and delivery of the Purchased Shares and (B) the execution and delivery by the Company of this Agreement and performance of and compliance by the Company with all of the provisions hereof and the consummation of the Transaction, except filings required under, and compliance with the applicable requirements of the Exchange Act and the rules and regulations promulgated thereunder, the U.S. Securities Act of 1933, as amended (the "<u>Securities Act</u>") and the rules and regulations promulgated thereunder, and the rules of the NYSE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) *Company Reports.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Company has filed with or otherwise furnished to the SEC all material forms, reports, schedules, statements and other documents required to be filed or furnished by it under the Securities Act or the Exchange Act since December 31, 2022 (such documents, as supplemented or amended since the time of filing, and together with all information incorporated by reference therein, the "<u>Company SEC Reports</u>"). No Subsidiary of the Company is required to file with the SEC any such forms, reports, schedules, statements or other documents pursuant to Section 13 or 15 of the Exchange Act. As of their respective effective dates (in the case of Company SEC Reports that are registration statements filed pursuant to the requirements of the Securities Act) and as of their respective filing dates (in the case of all other Company SEC Reports), except as and to the extent modified, amended, restated, corrected, updated or superseded by any subsequent Company SEC Report filed and publicly available prior to the date of this Agreement, the Company SEC Reports (i) complied in all material respects with the applicable requirements of the Securities Act and the Exchange Act, and the rules and regulations of the SEC promulgated thereunder applicable to such Company SEC Reports, and (ii) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Company maintains a system of "internal controls over financial reporting" (as defined in Rules 13a-15(f) and 15a-15(f) under the Exchange Act) that provides reasonable assurance regarding the reliability of the Company's financial reporting and the preparation of the Company's financial statements for external purposes in accordance with GAAP and that includes policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company, (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company, and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the Company's financial statements.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The Company maintains a system of "disclosure controls and procedures" (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that is reasonably designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that information relating to the Company is accumulated and communicated to the Company's management as appropriate to allow timely decisions regarding required disclosure and to make the certifications of the Chief Executive Officer and Chief Financial Officer of the Company required under the Exchange Act with respect to such reports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Since December 31, 2023, the Company has not received any oral or written notification of a "material weakness" in the Company's internal controls over financial reporting. The term "material weakness" shall have the meaning assigned to it in the Statements of Auditing Standard 115, as in effect on the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) Except as and to the extent modified, amended, restated, corrected, updated or superseded by any subsequent Company SEC Report filed and publicly available prior to the date of this Agreement, the audited consolidated financial statements and the unaudited consolidated interim financial statements (including any related notes) included in the Company SEC Reports fairly present in all material respects, the consolidated financial position of the Company and its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and their consolidated cash flows for the periods set forth therein (subject, in the case of financial statements for quarterly periods, to normal year-end adjustments) and were prepared in conformity with GAAP consistently applied during the periods involved (except as otherwise disclosed in the notes thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) *No Undisclosed Liabilities*. None of the Company or its Subsidiaries has any material liabilities (whether absolute, accrued, contingent or otherwise) required to be reflected or reserved against on a consolidated balance sheet of the Company prepared in accordance with GAAP, except for liabilities (i) reflected or reserved against or provided for in the Company's consolidated balance sheet as of December 31, 2024 or disclosed in the notes thereto, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, (ii) incurred in the ordinary course of business consistent with past practice since the date of such balance sheet, and (iii) incurred in the ordinary course of performing this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) *No Material Adverse Effect.* Since December 31, 2024, there has not occurred any event, fact or circumstance that has had or would reasonably be expected to have, individually, or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) *No Violation or Default; Licenses and Permits.* The Company and its Subsidiaries (A) are in compliance with all Laws, statutes, ordinances, rules, regulations, orders, judgments and decrees of any court or governmental agency or body having jurisdiction over the Company or any of its Subsidiaries or any of their respective properties, and (B) has not received written notice of any alleged material violation of any of the foregoing except, in the case of each of clauses (A) and (B) above, for any such failure to comply, default or violation that would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. Each of the Company and its Subsidiaries holds all material licenses, franchises, permits, certificates of occupancy, consents, registrations, certificates and other governmental and regulatory permits, authorizations and approvals required for the operation of the business as currently conducted by it and for the ownership, lease or operation of its material assets except, in each case, where the failure to possess or make the same would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) *Legal Proceedings.* There are no legal, governmental or regulatory investigations, actions, suits or proceedings pending or, to the Knowledge of the Company, threatened against the Company or any of its Subsidiaries which, individually, if determined adversely to the Company or any of its Subsidiaries, would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) *Investment Company Act.* The Company is not, and, after giving effect to the offering and sale of the Purchased Shares and the application of the proceeds thereof, shall not be required to register as an "investment company" or an entity "controlled" by an "investment company" within the meaning of the Investment Company Act of 1940, as amended, and the rules and regulations of the SEC thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) *Compliance with Environmental Laws.* Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (A) each of the Company and its Subsidiaries are and have been in compliance with and each of the Company Properties are and have been maintained in compliance with, any and all applicable federal, state, local and foreign Laws relating to the protection of the environment or natural resources, human health and safety as such relates to the environment, or the presence, handling, or release of Hazardous Materials (collectively, "<u>Environmental Laws</u>"), which compliance includes obtaining, maintaining and complying with all permits, licenses or other approvals required under Environmental Laws to conduct operations as presently conducted, and no action is pending or, to the Knowledge of the Company, threatened that seeks to repeal, modify, amend, revoke, limit, deny renewal of, or otherwise appeal or challenge any such permits, licenses or other approvals, (B) none of the Company or its Subsidiaries have received any written notice of, and none of the Company Properties have been the subject of any written notice received by the Company or any of its Subsidiaries of, any actual or potential liability or violation for the presence, exposure to, investigation, remediation, arrangement for disposal, or release of any material classified, characterized or regulated as hazardous, toxic, pollutants, or contaminants under Environmental Laws, including petroleum products or byproducts, radioactive materials, asbestos-containing materials, radon, lead-containing materials, polychlorinated biphenyls, mold, and hazardous building materials (collectively, "<u>Hazardous Materials</u>"), (C) none of the Company and its Subsidiaries are a party to or the subject of any pending, or, to the Knowledge of the Company, threatened, legal proceeding alleging any liability, responsibility, or violation under any Environmental Laws with respect to their past or present facilities or their respective operations, (D) none of the Company and its Subsidiaries have released Hazardous Materials on any real property in a manner that would reasonably be expected to result in an environmental claim or liability against the Company or any of its Subsidiaries or Affiliates, (E) none of the Company Properties is the subject of any pending, or, to the Knowledge of the Company, threatened, legal proceeding alleging any liability, responsibility, or violation under any Environmental Laws, and (F) to the Knowledge of the Company, there has been no release of Hazardous Materials on, from, under, or at any of the Company Properties that would reasonably be expected to result in an environmental claim or liability against the Company or any of its Subsidiaries or Affiliates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) *Company Benefit Plans.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Except as would not, individually or in the aggregate, have a Material Adverse Effect, each Company Benefit Plan is in compliance in design and operation in all material respects with all applicable provisions of ERISA and the U.S. Internal Revenue Code of 1986, as amended (the "<u>Code</u>") and each Company Benefit Plan that is intended to be qualified under Section 401(a) of the Code has received a favorable determination letter from the Internal Revenue Service with respect to its qualified status under Section 401(a) of the Code and its related trust's exempt status under Section 501(a) of the Code and the Company is not aware of any circumstances likely to result in the loss of the qualification of any such plan under Section 401(a) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Except as would not, individually or in the aggregate, have a Material Adverse Effect, with respect to each Company Benefit Plan that is subject to Title IV or Section 302 of ERISA or Section 412 or 4971 of the Code: (1) no Company Benefit Plan has failed to satisfy the minimum funding standard (within the meaning of Sections 412 and 430 of the Code or Section 302 of ERISA) applicable to such Company Benefit Plan, whether or not waived and no application for a waiver of the minimum funding standard with respect to any Company Benefit Plan has been submitted; (2) no reportable event within the meaning of Section 4043(c) of ERISA for which the 30-day notice requirement has not been waived has occurred; (3) no liability (other than for premiums to the Pension Benefit Guaranty Corporation (the "<u>PBGC</u>")) under Title IV of ERISA has been or is expected to be incurred by the Company or any entity that is required to be aggregated with the Company pursuant to Section 414 of the Code (an "<u>ERISA Affiliate</u>"); (4) the PBGC has not instituted proceedings to terminate any such plan or made any inquiry which would reasonably be expected to lead to termination of any such plan, and, no condition exists that presents a risk that such proceedings will be instituted or which would constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any such plan; and (5) no Company Benefit Plan is, or is expected to be, in "at-risk" status (as defined in Section 303(i)(4) of ERISA or Section 430(i)(4) of the Code).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Except as would not, individually or in the aggregate, have a Material Adverse Effect, with respect to each Company Benefit Plan maintained primarily for the benefit of current or former employees, officers or directors employed, or otherwise engaged, outside the United States (each, a "<u>Foreign Plan</u>"), excluding any Foreign Plans that are statutorily required, government sponsored or not otherwise sponsored, maintained or controlled by the Company or any of its Significant Subsidiaries ("<u>Excluded Non-US Plans</u>"): (1) (x) all employer and employee contributions required by Law or by the terms of the Foreign Plan have been made, and all liabilities of the Company and its Significant Subsidiaries have been satisfied, or, in each case accrued, by the Company and its Significant Subsidiaries in accordance with generally accepted accounting principles, and (y) the Company and its Significant Subsidiaries are in compliance with all requirements of applicable Law and the terms of such Foreign Plan; (2) as of the date hereof, the fair market value of the assets of each funded Foreign Plan, or the book reserve established for each Foreign Plan, together with any accrued contributions, is sufficient to procure or provide for the accrued benefit obligations with respect to all current and former participants in such Foreign Plan determined on an ongoing basis (rather than on a plan termination basis) according to the actuarial assumptions and valuations used to account for such obligations in accordance with applicable generally accepted accounting principles; and (3) as of the date hereof, the Foreign Plan has been registered as required and has been maintained in good standing with applicable regulatory authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) *Labor and Employment Matters.* (A) Neither the Company nor any of its Significant Subsidiaries is a party to or bound by any collective bargaining agreement or any labor union contract, nor are any employees of the Company or any of its Significant Subsidiaries represented by a works council or a labor organization (other than any industry-wide or statutorily mandated agreement in non-U.S. jurisdictions); (B) to the Knowledge of the Company, as of the date hereof, there are no activities or proceedings by any labor union or labor organization to organize any employees of the Company or any of its Significant Subsidiaries or to compel the Company or any of its Significant Subsidiaries to bargain with any labor union or labor organization; and (C), except as would not, individually or in the aggregate, have a Material Adverse Effect, there is no pending or, to the Knowledge of the Company, threatened material labor strike, lock-out, walkout, work stoppage, slowdown, demonstration, leafleting, picketing, boycott, work-to-rule campaign, sit-in, sick-out, or similar form of organized labor disruption.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) *Insurance.* The Company maintains for itself and its Subsidiaries insurance policies in those amounts and covering those risks, as in its judgment, are reasonable for the business and assets of the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) *No Unlawful Payments.* No action is pending or, to the Knowledge of the Company, is threatened against the Company or any of its Subsidiaries or Affiliates, or any of their respective directors, officers, or employees resulting from any (A) use of corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity, (B) direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds, (C) violations of any provision of the Foreign Corrupt Practices Act of 1977 or any other applicable local anti-bribery or anti-corruption Laws in any relevant jurisdictions or (D) other unlawful payment, except in any such case, as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) *No Broker's Fees.* Other than pursuant to agreements (including amendments thereto) by and between the Company and Morgan Stanley & Co. LLC, none of the Company or any of its Subsidiaries is a party to any contract, agreement or understanding with any Person that would give rise to a valid claim against the Company or any of its Subsidiaries for an investment banking fee, finder's fee or like payment in respect of the sale of the Purchased Shares contemplated by this Agreement. None of the Company or any of its Subsidiaries is a party to any contract, agreement or understanding with any Person that would give rise to a valid claim against the Purchaser for a brokerage commission, finder's fee, investment banking fee or like payment in connection with the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) *Real and Personal Property.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Except (x) for such breach of this <u>Section 5(a)(xx)(A)</u> as may be caused fully or substantially by the third party member or partner in any Joint Venture, without the Knowledge or consent of the Company or any of its Subsidiaries or (y) as would not individually or in the aggregate be reasonably expected to have a Material Adverse Effect, the Company or one of its Subsidiaries owns good and valid fee simple title or valid and enforceable leasehold interests (subject, as to enforceability, to general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at Law or in equity)), as applicable, to each of the Company Properties, in each case, free and clear of liens, mortgages or deeds of trust, claims against title, charges that are liens or other encumbrances on title, rights of way, restrictive covenants, declarations or reservations of an interest in title (collectively, "<u>Encumbrances</u>"), except for the following (collectively, the "<u>Permitted Title Exceptions</u>"):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Encumbrances that result from any statutory or other liens for Taxes or assessments that are not yet due or delinquent or the validity of which is being contested in good faith by appropriate proceedings and for which a sufficient and appropriate reserve has been set aside for the full payment thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any contracts, or other occupancy agreements to third parties for the occupation or use of portions of the Company Properties by such third parties in the ordinary course of the business of the Company or its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Encumbrances imposed or promulgated by Law or any Governmental Entity, including zoning, entitlement and other land use and environmental regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Encumbrances disclosed on existing title policies and current title insurance commitments or surveys made available to the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Encumbrances on the landlord's fee interest at any Company Property where the Company or its Subsidiary is the tenant under any ground lease, provided that neither the Company nor any of its Subsidiaries have received a notice indicating the intention of the landlord under such ground lease, or of any other Person, to (I) exercise a right to terminate such ground lease, evict the lessee or otherwise collect the sub-rents thereunder, or (II) take any other action that would be reasonably likely to result in a termination of such ground lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) any cashiers', landlords', workers', mechanics', carriers', workmen's, repairmen's and materialmen's liens and other similar liens incurred in the ordinary course of business which (A) are being challenged in good faith by appropriate proceedings and for which a sufficient and appropriate reserve has been set aside for the full payment thereof or (B) have been otherwise fully bonded and discharged of record or for which a sufficient and appropriate reserve has been set aside for the full payment thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) any other easements, rights-of-way, restrictions (including zoning restrictions), covenants, encroachments, protrusions and other similar charges or Encumbrances, and title limitations or title defects, if any, that (I) are customary for office, industrial, master planned communities and retail properties or (II) individually or in the aggregate, would not be reasonably expected to have a Material Adverse Effect.

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Neither the Company nor any of its Subsidiaries has received a written notice of a material default, beyond any applicable grace and cure periods, of or under any Permitted Title Exceptions, except (x) as may have been caused fully or substantially by the third party member or partner in any Joint Venture, without the Knowledge or consent of the Company or any of its Subsidiaries, (y) where the Permitted Title Exceptions are in and of themselves evidence of default (such as mechanics' liens and recorded notices of default) or (z) as would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect; <u>provided</u>, <u>however</u>, that where the Company has otherwise represented and warranted to the Purchaser (including as set forth on the Company Disclosure Letter pursuant to such representations and warranties) with respect to the Company's Knowledge of, the Company's receipt of notice of or the existence of a default in connection with a particular category of Permitted Title Exceptions, such categories of Permitted Title Exceptions shall not be included in the representation set forth in this sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) With respect to each Company Ground Lease Property, to the Company's Knowledge, neither the Company nor any of its Subsidiaries has received notice of material defaults (including, without limitation, payment defaults, but limited to those circumstances where such default may grant the landlord under such ground lease the right to terminate such ground lease, evict the lessee or otherwise collect the sub-rents thereunder) at such Company Ground Lease Property beyond any applicable grace and cure periods, except (x) as would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect and (y) as may be caused fully or substantially by the third party member or partner in any Joint Venture, without the Knowledge or consent of the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Neither the Company nor any of its Subsidiaries is a party to any agreement relating to the property management (but not including any leasing, development, construction or brokerage agreements) of any of the Company Properties by a party other than Company or any wholly owned Company Subsidiaries, except (x) management agreements that may be terminated without cause or payment of a termination fee upon no more than 60 days' notice or (y) as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Neither the Company nor any of its Subsidiaries have received a written notice of default (beyond any applicable grace or cure periods) in the (x) payment of interest, principal or other material amount due to the lender under any Company Mortgage Loan, whether as the primary obligor or as a guarantor thereof or (y) performance of any other material obligations under any Company Mortgage Loan, except, with respect solely to (y) above, which would not individually or in the aggregate, be reasonably expected to have a Material Adverse Effect;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) To the Knowledge of the Company, (1) neither the Company nor any of its Subsidiaries has received a written notice exercising an option, "buy-sell" right or other similar right to purchase a Company Property or any material portion thereof which has not previously closed, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect with respect to such Company Property and (2) no Company Property is subject to a purchase and sale agreement or any similar legally binding agreement to purchase such Company Property or any material portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) The Company has conducted due inquiry with respect to the representations and warranties made in <u>Section 5(a)(xx)(B)</u> and <u>Section 5(a)(xx)(E)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) *Tax Matters*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Except in cases where the failure of any of the following to be true would not result in a Material Adverse Effect: (1) the Company and each of its Significant Subsidiaries have filed all Tax Returns required to be filed by applicable Law prior to the date hereof (or have obtained extensions therefor); (2) to the Knowledge of the Company, all such Tax Returns were true, complete and correct in all respects and filed on a timely basis (taking into account any applicable extensions); (3) the Company and each of its Significant Subsidiaries have paid all amounts of Taxes that are due, claimed or assessed by any taxing authority to be due for the periods covered by such Tax Returns, other than any Taxes for which adequate reserves ("<u>Adequate Reserves</u>") have been established in accordance with GAAP; and (4) all adjustments of federal U.S. Tax liability of the Company and its Significant Subsidiaries resulting from completed audits or examinations have been reported to appropriate state and local taxing authorities and all resulting Taxes payable to state and local taxing authorities have been paid. "<u>Taxes</u>" means any U.S. federal, state, local, or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Section 59A of the Code), customs duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each Company Subsidiary that is a partnership, joint venture, or limited liability company has been since its formation treated for U.S. federal income tax purposes as a partnership or disregarded entity, as the case may be, and not as a corporation or an association taxable as a corporation, except where failure to do so would not have a Material Adverse Effect;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Except where the failure to be true would not have a Material Adverse Effect, the Company and each of its Significant Subsidiaries have (1) complied in all respects with all applicable Laws, rules, and regulations relating to the payment and withholding of Taxes (including withholding and reporting requirements under sections 1441 through 1464, 3401 through 3406, 6041 and 6049 of the Code and similar provisions under any other Laws) and (2) within the time and in the manner prescribed by Law, withheld from employee wages and paid to the proper Governmental Entities all amounts required to be withheld and paid over.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Except where the failure to be true would not have a Material Adverse Effect, no audits or other administrative proceedings or court proceedings are presently pending or to the Knowledge of the Company threatened with regard to any Taxes or Tax Returns of the Company or any of its Significant Subsidiaries, other than any audit or administrative or court proceeding that is not reasonably expected to result in a material Tax liability to the Company or any of its Significant Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) The Company has made available to the Purchaser complete and accurate copies of all material Tax Returns requested by the Purchaser and filed by or on behalf of the Company or any of its Significant Subsidiaries for all taxable years ending on or prior to the date hereof and for which the statute of limitations has not expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) There are no Tax Protection Agreements except for those the breach of which would not reasonably be expected to have a Material Adverse Effect. Neither the Company nor any Significant Subsidiary has any liability for Taxes of any Person under Treasury Regulation Section 1.1502-6 (or any similar provision of any state, local or foreign Law), or as a transferee or successor (by contract or otherwise), other than (1) to a Subsidiary of the Company or (2) where any such liability would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) *Material Contracts*. Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, each Material Contract is valid and binding on the Company or any of its Subsidiaries, as applicable, and, to the Knowledge of the Company, on each other Person party thereto, and is in full force and effect. Each of the Company and its Subsidiaries has performed, in all material respects, all obligations required to be performed by it under each Material Contract, except, in each case, as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Neither the Company nor any of its Significant Subsidiaries is in breach or default of any Material Contract, except, in each case, as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. To the Knowledge of the Company, no party to any Material Contract has given written notice of any action to terminate, cancel, rescind or procure a judicial reformation of such Material Contract or any material provision thereof, which termination, cancellation, rescission or reformation would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. For the avoidance of doubt, Material Contracts do not include intercompany contracts.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) *Waiver of Section 203.* The board of directors of the Company has effectively and validly waived the applicability of Section 203 of the Delaware General Corporation Law to the Purchaser such that the Purchaser may acquire the Purchased Shares without being subject to Section 203's restrictions on business combinations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) *Section 16(b) of Exchange Act.* The board of directors of the Company has pre-approved the Transaction and all direct or indirect transactions related thereto between or among William A. Ackman, Ryan Israel or the Purchaser and/or any of its Affiliates and the Company, and the Transaction and such other transactions are exempt from Section 16(b) of the Exchange Act by virtue of Rule 16b-3 thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(xxv) No Other Representations or Warranties.* Except for the representations and warranties made by the Company in this <u>Section 5(a)</u>, neither the Company nor any other Person makes any representation or warranty with respect to the Company or its Subsidiaries or their respective business, operations, assets, liabilities, condition (financial or otherwise) or prospects, notwithstanding the delivery or disclosure to each Purchaser or any other members of the Purchaser Group or their respective representatives of any documentation, forecast or other information with respect to any one or more of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Representations and Warranties of the Purchaser</u>. The Purchaser represents and warrants to, and agrees with, the Company that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Organization*. The Purchaser is duly organized and is validly existing and, where applicable, in good standing under the Laws of its jurisdiction of organization, with the requisite limited partnership power and authority to undertake and effectuate the Transaction. The Purchaser has been duly qualified for the transaction of business and, where applicable, is in good standing under the Laws of each other jurisdiction in which it operates so as to require such qualification, except where the failure to be so qualified, licensed or in good standing would not, individually or in the aggregate, have or be reasonably expected to materially delay or prevent the consummation of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Power and Authority*. The Purchaser has the requisite power and authority to enter into, execute and deliver this Agreement and to perform its obligations hereunder and has taken all necessary action required for the due authorization, execution, delivery and performance by it of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Execution and Delivery*. This Agreement has been duly and validly executed and delivered by the Purchaser, and, assuming due and valid execution and delivery by the Company, constitutes its valid and binding obligation, enforceable against the Purchaser in accordance with its terms, except as such enforceability may be limited by general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at Law or in equity).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *No Conflict*. The execution and delivery of this Agreement and the performance by the Purchaser of its obligations hereunder and compliance by the Purchaser with all of the provisions hereof and the consummation of the Transaction (i) shall not conflict with, or result in a breach or violation of, any of the terms or provisions of, or constitute a default under, or result in the acceleration of, or the creation of any lien under, or give rise to any termination right under, any material contract to which the Purchaser is a party, (ii) shall not result in any violation or breach of any provisions of the organizational documents of the Purchaser and (iii) shall not conflict with or result in any violation of, or any termination or material impairment of any rights under, any statute or any license, authorization, injunction, judgment, order, decree, rule or regulation of any court or governmental agency or body having jurisdiction over the Purchaser or the Purchaser's properties or assets, except with respect to each of (i), (ii) and (iii), such conflicts, violations or defaults as would not be reasonably expected to have a material adverse effect on the ability of the Purchaser to consummate the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *Consents and Approvals*. No consent, approval, order, authorization, registration or qualification of or with any Governmental Entity having jurisdiction over the Purchaser is required in connection with the execution and delivery by the Purchaser of this Agreement or the consummation of the Transaction, except such consents, approvals, orders, authorizations, registration or qualification as would not reasonably be expected to materially and adversely affect the ability of the Purchaser to perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *Compliance with Laws*. Since the date of its formation, the Purchaser has been in compliance with all Laws applicable to Purchaser, except, in each case, for such non-compliance as would not reasonably be expected to materially and adversely affect the ability of the Purchaser to perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) *Legal Proceedings*. There are no legal, governmental or regulatory investigations, actions, suits or proceedings pending or, to the knowledge of the Purchaser, threatened against the Purchaser which, individually or in the aggregate, if determined adversely to the Purchaser, would materially and adversely affect the ability of Purchaser to perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) *No Broker's Fees*. Other than pursuant to agreements (including amendments thereto) by and between the Purchaser and Jefferies LLC, the Purchaser is not party to any contract, agreement or understanding with any Person that would give rise to a valid claim against the Company for an investment banking fee, commission, finder's fee or like payment in connection with the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) *Sophistication*. The Purchaser is an "accredited investor" within the meaning of Rule 501(a) under the Securities Act. The Purchaser understands and is able to bear any economic risks associated with such investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) *Purchaser Intent*. The Purchaser is acquiring the Purchased Shares not with a view to or for distributing or reselling such Purchased Shares or any part thereof, without prejudice, however, to the Purchaser's right, subject to the provisions of this Agreement, at all times to sell or otherwise dispose of all or any part of such Purchased Shares pursuant to an effective registration statement under the Securities Act or under an exemption from such registration and in compliance with applicable federal and state securities Laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) *Reliance on Exemptions*. The Purchaser understands that the Purchased Shares are being offered and sold to the Purchaser in reliance upon specific exemptions from the registration requirements of United States federal and state securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) *Financial Capability*. The Purchaser has sufficient binding capital commitments or available funds to satisfy its obligations under this Agreement, including without limitation the payment of the Subscription Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) *No Other Representations or Warranties*. Except for the representations and warranties made by Purchaser in this <u>Section 5(b)</u>, neither the Purchaser nor any other Person on behalf of the Purchaser makes any representation or warranty with respect to the Purchaser or its assets, liabilities, condition (financial or otherwise) or prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) *Acknowledgment*. The Purchaser acknowledges that (a) neither the Company nor any Person on behalf of the Company is making any representations or warranties whatsoever, express or implied, beyond those expressly given by the Company in <u>Section 5(a)</u> and (b) the Purchaser has not been induced by, or relied upon, any representations, warranties or statements (written or oral), whether express or implied, made by any Person, that are not expressly set forth in <u>Section 5(a)</u>. Without limiting the generality of the foregoing, except with respect to the representations and warranties contained in <u>Section 5(a)</u>, the Purchaser acknowledges that no representations or warranties are made with respect to any projections, forecasts, estimates, budgets, plans or prospect information that may have been made available to the Purchaser or any of its representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices</u>. Any notice or other communication required or permitted to be given hereunder will be in writing and will be deemed to have been duly given if delivered by prepaid first-class mail, by email or other means of electronic communication or by hand-delivery and addressed as follows:

if to the Company, to:

Howard Hughes Holdings Inc.

9950 Woodloch Forest Drive, Suite 1100

The Woodlands, Texas 77380

Attention: General Counsel <br> Email: [email address]

with a copy (which shall not constitute notice) to:

Hogan Lovells US LLP

Columbia Square

555 Thirteenth St, NW

Washington, DC 20004

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---

| | |
|:---|:---|
| Attention: | David Bonser |
|  | John Beckman |
|  | Stacey McEvoy |
| Email: | [email address] |
|  | [email address] |
|  | [email address] |

---

and

Morgan, Lewis & Bockius LLP

2222 Market Street

Philadelphia, PA 19103

---

| | |
|:---|:---|
| Attention: | Justin W. Chairman |
|  | Richard B. Aldridge |
| Email: | [email address] |
|  | [email address] |

---

if to the Purchaser, to:

Pershing Square Holdco, L.P.

787 Eleventh Ave

New York, New York 10019

Attention: Chief Legal Officer

Email: legal@persq.com

with a copy (which shall not constitute notice) to:

Sullivan & Cromwell LLP

125 Broad Street

New York, New York 10004

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| | |
|:---|:---|
| Attention: | Scott D. Miller |
|  | Ken Li |
| Email: | [email address] |
|  | [email address] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignment</u>. Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned or delegated by either party hereto without the prior written consent of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Governing Law</u>. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE. EACH OF THE PARTIES HEREBY AGREES THAT ANY SUIT, ACTION OR PROCEEDING SEEKING TO ENFORCE ANY PROVISION OF, OR BASED ON ANY MATTER ARISING OUT OF OR IN CONNECTION WITH, THIS AGREEMENT (WHETHER BROUGHT BY ANY PARTY OR ANY OF ITS AFFILIATES OR AGAINST ANY PARTY OR ANY OF ITS AFFILIATES) SHALL BE BROUGHT IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE (OR IN THE EVENT, BUT ONLY IN THE EVENT, THAT SUCH COURT DOES NOT HAVE SUBJECT MATTER JURISDICTION OVER SUCH ACTION OR PROCEEDING, THE SUPERIOR COURT OF THE STATE OF DELAWARE (COMPLEX COMMERCIAL DIVISION) OR, IF SUBJECT MATTER JURISDICTION OVER THE ACTION OR PROCEEDING IS VESTED EXCLUSIVELY IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA, THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE) AND EACH OF THE PARTIES IRREVOCABLY SUBMITS TO THE JURISDICTION OF, AND VENUE IN, SUCH COURTS AND WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Certain Remedies</u>. The parties agree that irreparable damage would occur in the event that any provisions of this Agreement were not performed in accordance with their specific terms. It is accordingly agreed that each of the parties shall be entitled to an injunction or injunctions (without necessity of proving damages or posting a bond or other security) to prevent breaches of this Agreement, and to enforce specifically the terms and provisions of this Agreement, in addition to any other applicable remedies at law or equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Waiver of Jury Trial</u>. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTIONS, SUITS, DEMAND LETTERS, JUDICIAL, ADMINISTRATIVE OR REGULATORY PROCEEDINGS, OR HEARINGS, NOTICES OF VIOLATION OR INVESTIGATIONS ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER AND (B) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Interpretation; Headings</u>. The parties hereto have participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Unless the context otherwise requires, as used in this Agreement: (i) "or" shall mean "and/or"; (ii) "including" and its variants mean "including, without limitation" and its variants; (iii) words defined in the singular have the parallel meaning in the plural and vice versa; (iv) references to "written" or "in writing" include in visual electronic form; (v) words of one gender shall be construed to apply to each gender; and (vi) the term "Section" refers to the specified Section of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Entire Agreement</u>. The Transaction Documents constitute the entire agreement of the parties and their Affiliates and supersede all prior and contemporaneous agreements, arrangements or understandings, whether written or oral, among the parties and their Affiliates with respect to the subject matter of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Severability</u>. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any person or entity or any circumstance, is found to be invalid or unenforceable in any jurisdiction, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other persons, entities or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Expenses</u>. Following the Closing, the Company will reimburse the Purchaser's and its Affiliates' reasonable and documented out-of-pocket costs, fees and expenses in an amount not to exceed $25 million in connection with the negotiation and execution of this Agreement and each other agreement, document and instrument contemplated by this Agreement and the consummation of the Transaction, with such reimbursement to be paid promptly following delivery of an invoice therefor and reasonably detailed back-up documentation. Subject to the foregoing and unless otherwise agreed between the parties, each party will bear its own costs, fees and expenses in connection with the negotiation and execution of this Agreement and each other agreement, document and instrument contemplated by this Agreement and the consummation of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Waivers and Amendments of this Agreement</u>. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions of this Agreement may be waived, only by a written instrument signed by the parties hereto or, in the case of a waiver, by the party hereto waiving compliance. No delay on the part of any party in exercising any right, power or privilege pursuant to this Agreement shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege pursuant to this Agreement, nor shall any single or partial exercise of any right, power or privilege pursuant to this Agreement, preclude any other or further exercise thereof or the exercise of any other right, power or privilege pursuant to this Agreement. The rights and remedies provided pursuant to this Agreement are cumulative and are not exclusive of any rights or remedies which any party otherwise may have at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Investigations</u>. The respective agreements, representations, warranties and other statements of the Company and the Purchaser, as set forth in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall remain in full force and effect, regardless of any investigation (or any statement as to the results thereof) made by or on behalf of the Purchaser or any controlling person of the Purchaser, or the Company, or any officer or director or controlling person of the Company, and shall survive delivery of and payment for the Purchased Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other party (including via email or other electronic transmission), it being understood that each party need not sign the same counterpart.

[*Signature page follows*]

------

IN WITNESS WHEREOF, this Agreement is executed as of the date first written above.

---

| | | |
|:---|:---|:---|
| HOWARD HUGHES HOLDINGS INC. | HOWARD HUGHES HOLDINGS INC. | HOWARD HUGHES HOLDINGS INC. |
| By: | /s/ David O'Reilly | /s/ David O'Reilly |
|  | Name: | David O'Reilly |
|  | Title: | Chief Executive Officer |
| PERSHING SQUARE HOLDCO, L.P. | PERSHING SQUARE HOLDCO, L.P. | PERSHING SQUARE HOLDCO, L.P. |
| By: | /s/ William A. Ackman | /s/ William A. Ackman |
|  | Name: | William A. Ackman |
|  | Title: | Chief Executive Officer |

---

[*Signature Page to Share Purchase Agreement*]

------

#### Schedule 1

#### KNOWLEDGE PARTIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Carlos Olea

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. David O'Reilly

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Joseph Valane

------

#### Schedule 2

#### SIGNIFICANT SUBSIDIARIES

1. The Howard Hughes Corporation

2. Howard Hughes Management Co., LLC

3. The Howard Research and Development Corporation

4. Summa Insurance Company, Inc.

5. Hughes Intermediate Holdings, LLC

------

#### Annex A

"<u>Adequate Reserves</u>" has the meaning assigned thereto in <u>Section 5(a)(xxi)(A)</u>.

"<u>Affiliate</u>" of any particular Person means any other Person controlling, controlled by or under common control with such particular Person. For the purposes of this definition, "<u>control</u>" means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities, contract or otherwise.

"<u>Agreement</u>" has the meaning assigned thereto in the Preamble.

"<u>Closing</u>" has the meaning assigned thereto in <u>Section 2</u>.

"<u>Closing Date</u>" means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchaser's obligations to pay the Subscription Amount and (ii) the Company's obligations to deliver the Purchased Shares, in each case, have been satisfied or waived, but in no event later than one (1) Trading Day following the date hereof.

"<u>Code</u>" has the meaning assigned thereto in <u>Section 5(a)(xv)(A)</u>.

"<u>Common Stock</u>" has the meaning assigned thereto in the Recitals.

"<u>Company</u>" has the meaning assigned thereto in the Preamble.

"<u>Company Benefit Plan</u>" means each "employee benefit plan" within the meaning of Section 3(3) of ERISA and each other stock purchase, stock option, restricted stock, severance, retention, employment, consulting, change-of-control, collective bargaining, bonus, incentive, deferred compensation, employee stock purchase plan, employee loan, fringe benefit and other benefit plan, agreement, program, policy, commitment or other arrangement, whether or not subject to ERISA (including any related funding mechanism now in effect or required in the future), whether formal or informal, oral or written, in each case sponsored or maintained by the Company or any of its Significant Subsidiaries for the benefit of any past or present director, officer, employee, consultant or independent contractor of the Company or any of its Significant Subsidiaries has any present or future right to benefits.

"<u>Company Disclosure Letter</u>" has the meaning assigned in <u>Section 5(a)</u>.

"<u>Company Fundamental Representation</u>" means the representations and warranties of the Company set forth in <u>Sections 5(a)(i)</u> (Organization and Qualification), <u>5(a)(ii)</u> (Corporate Power and Authority), <u>5(a)(iii)</u> (Execution and Delivery; Enforceability), <u>5(a)(iv)</u> (Authorized Capital Stock), <u>5(a)(v)</u> (Issuance) and <u>5(a)(xxiii)</u> (Waiver of Section 203).

"<u>Company Ground Lease Property</u>" means any Company Property having a fair market value (in the reasonable determination of the Company) in excess of $25,000,000 which is leased by a Subsidiary of the Company as tenant pursuant to a ground lease.

------

"<u>Company Mortgage Loans</u>" means all loans and other indebtedness secured by a mortgage, deed of trust, deed to secure debt or indemnity deed of trust in Company Property.

"<u>Company Property</u>" means an individual material real property asset owned or leased (as lessee), directly or indirectly, in whole or in part, by the Company and/or any of its Subsidiaries that is not a Non-Controlling Property and has a fair market value (in the reasonable determination of the Company) in excess of $25,000,000. "<u>Company Properties</u>" means, where context requires, all Company Properties collectively.

"<u>Company SEC Reports</u>" has the meaning assigned thereto in <u>Section 5(a)(viii)</u>.

"<u>Contract</u>" means any agreement, lease, license, evidence of indebtedness, mortgage, indenture, security agreement or other contract.

"<u>Encumbrances</u>" has the meaning assigned thereto in <u>Section 5(a)(xx)(A)</u>.

"<u>Environmental Laws</u>" has the meaning assigned thereto in <u>Section 5(a)(xiv)</u>.

"<u>Equity Securities</u>" has the meaning assigned thereto in <u>Section 5(a)(iv)</u>.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended.

"<u>ERISA Affiliate</u>" has the meaning assigned thereto in <u>Section 5(a)(xv)(B)</u>.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, or any successor federal statute, and the rules and regulations of the SEC promulgated thereunder, all as the same may be amended and shall be in effect from time to time.

"<u>Excluded Non-US Plans</u>" has the meaning assigned thereto in <u>Section 5(a)(xv)(C)</u>.

"<u>Foreign Plan</u>" has the meaning assigned thereto in <u>Section 5(a)(xv)(C)</u>.

"<u>GAAP</u>" means generally accepted accounting principles in the United States.

"<u>Governmental Entity</u>" means any (i) nation, region, state, province, county, city, town, village, district or other jurisdiction, (ii) federal, state, local, municipal, foreign or other government, (iii) governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, court or tribunal, or other entity), (iv) multinational organization or body or (v) body entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature or any other self-regulatory organizations.

"<u>Hazardous Materials</u>" has the meaning assigned thereto in <u>Section 5(a)(xiv)</u>.

"<u>Indebtedness</u>" means, with respect to a Person without duplication, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of property (other than trade payables and accrued expenses incurred in the ordinary course of such Person's business), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, trust preferred shares, trust preferred units and other preference instruments, (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (e) all obligations in respect of capital leases under GAAP of such Person, (f) all obligations of such Person, contingent or otherwise, as an account party or applicant under acceptance, letter of credit, surety bond or similar facilities, (g) the monetary obligations of a Person under (x) a so-called synthetic, off-balance sheet or tax retention lease, or (y) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment) (each, a "<u>Synthetic Lease Obligation</u>"), (h) guaranties of such Person with respect to obligations of the type described in clauses (a) through (g) above, (i) all obligations of other Persons of the kind referred to in clauses (a) through (h) above secured by any lien on property owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligation, (j) the net obligations of such Person in respect of hedge agreements and swaps and (k) any obligation that, in accordance with GAAP, would be required to be reflected as debt on the consolidated balance sheet of such Person.

------

"<u>Joint Venture</u>" means a Subsidiary of the Company which is owned partly by another Subsidiary of the Company and partly by a third party.

"<u>Knowledge</u>" of the Company means the actual knowledge, as of the date of this Agreement, of the individuals listed in <u>Schedule 1</u> to this Agreement.

"<u>Law</u>" means any statutes, laws (including common law), rules, ordinances, regulations, codes, orders, judgments, decisions, injunctions, writs, decrees, applicable to the Company, the Purchaser or any of their respective Affiliates, as applicable, or their respective properties or assets.

"<u>Material Adverse Effect</u>" means any change, event or occurrence that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) has a material adverse effect on the business, results of operations or financial condition of the Company and its direct and indirect Subsidiaries taken as a whole, other than changes, events or occurrences:

<br> (A) generally affecting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the master planned communities development industry in the United States or in a specific geographic area in which the Company operates; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the economy, or financial or capital markets, in the United States or elsewhere in the world, including changes in interest or exchange rates, the availability of capital or the impact of tariffs and trade disputes; or

------

<br> (B) arising out of, resulting from or attributable to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) changes in Law or regulation or in generally accepted accounting principles or in accounting standards, or changes in general legal, regulatory or political conditions applicable to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the negotiation, execution, announcement or performance of any agreement between the Company and/or its Affiliates, on the one hand, and the Purchaser and/or its Affiliates, on the other hand, or the consummation of the Transaction contemplated hereby, including the impact thereof on relationships, contractual or otherwise, with tenants, customers, suppliers, distributors, partners or employees, or any litigation or claims arising from allegations of breach of fiduciary duty or violation of Law or otherwise, related to the execution or performance of this Agreement or the Transaction contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) acts of war, sabotage or terrorism, or any escalation or worsening of any such acts of war, sabotage or terrorism threatened or underway as of the date of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) earthquakes, hurricanes, tornadoes or other natural disasters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) any action taken by the Company or its Subsidiaries to comply with its obligations under any agreement between the Company and/or its Affiliates, on the one hand, and the Purchaser and/or its Affiliates, on the other hand; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) in each case in and of itself, any decline in the market price, or change in trading volume, of the capital stock or debt securities of the Company or any direct or indirect Subsidiary thereof, or any failure to meet publicly announced or internal revenue or earnings projections, forecasts, estimates or guidance for any period, whether relating to financial performance or business metrics, including, without limitation, revenues, net operating incomes, cash flows or cash positions, it being further understood that any event, change, development, effect or occurrence giving rise to such decline in the trading price or trading volume of the capital stock or debt securities of the Company or such failure to meet internal projections or forecasts as described in the preceding clause (6), as the case may be, may be the cause of a Material Adverse Effect;

except, in the case of clauses (A)(1) and (A)(2), to the extent such changes or events have a disproportionate adverse effect on the Company and its Subsidiaries, taken as a whole, as compared to other entities that engage in master planned communities development throughout the United States, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) materially impairs the ability of the Company to consummate the Transaction contemplated by this Agreement or perform its obligations hereunder or under the other agreements executed in connection with the Transaction.

------

"<u>Material Contract</u>" means, with respect to the Company and its Subsidiaries, any:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Contract that would be considered a material contract pursuant to Item 601(b)(10) of Regulation S-K promulgated by the SEC, had the Company been the registrant referred to in such regulation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Contract for capital expenditures, the future acquisition or construction of fixed assets or the future purchase of materials, supplies or equipment that provides for the payment by the Company or its Subsidiaries of more than $25,000,000 and is not terminable by the Company or any of its Subsidiaries by notice of not more than sixty (60) days for a cost of less than $10,000,000.

"<u>Measurement Date</u>" has the meaning assigned thereto in <u>Section 5(a)(iv)</u>.

"<u>Non-Controlling Property</u>" means a Company Property that is owned by a Joint Venture in which neither the Company nor any of its Subsidiaries is a controlling entity. For purposes of this definition, the term "<u>control</u>" shall mean, possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities, contract or otherwise; <u>provided</u>, <u>however</u>, that the rights of any Person to exercise Major Decision Rights under a Joint Venture shall not constitute or be deemed to constitute "control" for the purposes hereof. For purposes of this definition, the term "<u>Major Decision Rights</u>" shall mean, the right to, directly or indirectly, approve, consent to, veto or exercise a vote in connection with a Person's voting or other decision-making authority in respect of the collective rights, options, elections or obligations of such Person under the governing documents of a Joint Venture.

"<u>PBGC</u>" has the meaning assigned thereto in <u>Section 5(a)(xv)(B)</u>.

"<u>Per Share Purchase Price</u>" has the meaning assigned thereto in <u>Section 1</u>.

"<u>Person</u>" means an individual, a group (including a "group" under Section 13(d) of the Exchange Act), a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a Governmental Entity or any department, agency or political subdivision thereof.

"<u>PSCM</u>" means Pershing Square Capital Management, L.P.

"<u>Purchased Shares</u>" has the meaning assigned thereto in <u>Section 1</u>.

"<u>Purchaser</u>" has the meaning assigned thereto in the Preamble.

"<u>Purchaser Fundamental Representation</u>" means the representations and warranties of the Purchaser set forth in <u>Sections 5(b)(i)</u> (Organization), <u>5(b)(ii)</u> (Power and Authority) and <u>5(b)(iii)</u> (Execution and Delivery).

"<u>Purchaser Group</u>" means the Purchaser, PSCM and their respective Affiliates, including the investment funds managed by one or more Affiliates of the Purchaser (for the avoidance of doubt, including as of the date hereof Pershing Square Holdings, Ltd., Pershing Square International, Ltd. and Pershing Square, L.P.).

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"<u>SEC</u>" means the Securities and Exchange Commission.

"<u>Securities Act</u>" has the meaning assigned thereto in <u>Section 5(a)(vii)</u>.

"<u>Services Agreement</u>" means that certain Services Agreement entered into on the date hereof by the Company and PSCM.

"<u>Shareholder Agreement</u>" means that certain Shareholder Agreement entered into on the date hereof by the parties hereto and PSCM.

"<u>Significant Subsidiaries</u>" means the operating Subsidiaries of the Company that are listed on <u>Schedule 2</u> to this Agreement.

"<u>Standstill Agreement</u>" means that certain Standstill Agreement entered into on the date hereof by the parties hereto and PSCM.

"<u>Subscription Amount</u>" means the aggregate Per Share Purchase Price for the Purchased Shares.

"<u>Subsidiary</u>" means, with respect to a Person, (i) a corporation a majority of whose capital stock with voting power, under ordinary circumstances, to elect a majority of the directors is at the time, directly or indirectly, owned by such Person, by a Subsidiary of such Person, or by such Person and one or more Subsidiaries of such Person, (ii) a partnership in which such Person or a Subsidiary of such Person is, at the date of determination, a general partner of such partnership, (iii) a limited liability company of which such Person, or a Subsidiary of such Person, is a managing member or (iv) any other Person (other than a corporation) in which such Person, a Subsidiary of such Person or such Person and one or more Subsidiaries of such Person, directly or indirectly, at the date of determination thereof, has (x) at least a majority ownership interest or (y) the power to elect or direct the election of a majority of the directors or other governing body of such Person.

"<u>Synthetic Lease Obligation</u>" has the meaning assigned thereto in the definition of "Indebtedness".

"<u>Tax Protection Agreements</u>" means any written agreement to which the Company or any of its Subsidiaries is a party pursuant to which in connection with the deferral of income Taxes of a holder of interests in the Company or any of its Subsidiaries, the Company or any such Subsidiary has agreed to (i) maintain a minimum level of Indebtedness or continue any particular Indebtedness, (ii) retain or not dispose of assets for a period of time that has not since expired, (iii) make or refrain from making Tax elections and/or (iv) only dispose of assets in a particular manner.

"<u>Tax Return</u>" means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof, including, where permitted or required, combined or consolidated returns for any group of entities that include the Company or any of its Significant Subsidiaries.

------

"<u>Taxes</u>" has the meaning assigned thereto in <u>Section 5(a)(xxi)(A)</u>.

"<u>Trading Day</u>" means a day on which the New York Stock Exchange is open for trading, including any day on which the New York Stock Exchange is open for trading for a period of time less than the customary time.

"<u>Transaction</u>" has the meaning assigned thereto in the Recitals.

"<u>Transaction Documents</u>" means individually or collectively, the Shareholders Agreement, the Services Agreement, the Standstill Agreement, the Registration Rights Agreement and this Agreement.

------

## Exhibit 10.18

------

#### Exhibit 10.18

#### SERVICES AGREEMENT

#### by and between

#### Howard Hughes Holdings Inc.

#### and

#### Pershing Square Capital Management, L.P.

#### Dated as of May 5, 2025

------

#### **Table of Contents**

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| | | |
|:---|:---|:---|
|  |  | Page |
| **ARTICLE 1** INTERPRETATION | **ARTICLE 1** INTERPRETATION | 1 |
| 1.1 | Definitions | 1 |
| 1.2 | Headings and **Table of Contents** | 7 |
| 1.3 | Gender and Number | 8 |
| 1.4 | Actions by the Service Provider or the Service Recipient | 8 |
| 1.5 | Currency | 8 |
| 1.6 | Invalidity of Provisions | 8 |
| **ARTICLE 2** APPOINTMENT OF THE SERVICE PROVIDER | **ARTICLE 2** APPOINTMENT OF THE SERVICE PROVIDER | 8 |
| 2.1 | Appointment and Acceptance | 8 |
| 2.2 | Other Service Providers | 8 |
| 2.3 | Subcontracting and Other Arrangements | 8 |
| **ARTICLE 3** SERVICES AND POWERS OF THE SERVICE PROVIDER | **ARTICLE 3** SERVICES AND POWERS OF THE SERVICE PROVIDER | 9 |
| 3.1 | Services | 9 |
| 3.2 | Supervision of Service Provider's Activities | 10 |
| 3.3 | Restrictions on the Service Provider | 10 |
| 3.4 | Errors and Omissions Insurance. | 11 |
| **ARTICLE 4** RELATIONSHIP BETWEEN THE SERVICE PROVIDER AND THE SERVICE RECIPIENT | **ARTICLE 4** RELATIONSHIP BETWEEN THE SERVICE PROVIDER AND THE SERVICE RECIPIENT | 11 |
| 4.1 | Other Activities; Allocation of Investment Opportunities | 11 |
| 4.2 | Exclusivity | 11 |
| 4.3 | No Partnership or Joint Venture | 12 |
| **ARTICLE 5** MANAGEMENT AND EMPLOYEES | **ARTICLE 5** MANAGEMENT AND EMPLOYEES | 12 |
| 5.1 | Management and Employees | 12 |

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-i-

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| | | |
|:---|:---|:---|
| **ARTICLE 6** INFORMATION AND RECORDS | **ARTICLE 6** INFORMATION AND RECORDS | 12 |
| 6.1 | Books and Records | 12 |
| 6.2 | Access to Information by Service Provider | 13 |
| 6.3 | Additional Information | 13 |
| 6.4 | Confidential Information | 14 |
| **ARTICLE 7** FEES AND EXPENSES | **ARTICLE 7** FEES AND EXPENSES | 14 |
| 7.1 | Base Fee and Variable Fee | 14 |
| 7.2 | Payment of Base Fee and Variable Fee. | 14 |
| 7.3 | Failure to Pay When Due | 15 |
| 7.4 | Expenses | 15 |
| 7.5 | Computation and Payment of Expenses | 16 |
| **ARTICLE 8** REPRESENTATIONS AND WARRANTIES OF THE SERVICE PROVIDER AND THE SERVICE RECIPIENT | **ARTICLE 8** REPRESENTATIONS AND WARRANTIES OF THE SERVICE PROVIDER AND THE SERVICE RECIPIENT | 16 |
| 8.1 | Representations and Warranties of the Service Provider | 16 |
| 8.2 | Representations and Warranties of the Service Recipient | 17 |
| **ARTICLE 9** LIABILITY AND INDEMNIFICATION | **ARTICLE 9** LIABILITY AND INDEMNIFICATION | 18 |
| 9.1 | Indemnity | 18 |
| 9.2 | Limitation of Liability | 19 |
| **ARTICLE 10** TERM AND TERMINATION | **ARTICLE 10** TERM AND TERMINATION | 20 |
| 10.1 | Term | 20 |
| 10.2 | Termination by the Service Recipient | 20 |
| 10.3 | Termination by the Service Provider | 23 |
| 10.4 | Survival Upon Termination | 23 |
| 10.5 | Action Upon Termination | 23 |
| 10.6 | Release of Money or Other Property Upon Written Request | 24 |

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-ii-

------

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| | | |
|:---|:---|:---|
| 10.7 | Pre-Renewal Consultations | 24 |
| **ARTICLE 11** GENERAL PROVISIONS | **ARTICLE 11** GENERAL PROVISIONS | 25 |
| 11.1 | Assignment | 25 |
| 11.2 | Certain Transactions | 26 |
| 11.3 | Inurement | 26 |
| 11.4 | Notices | 26 |
| 11.5 | Further Assurances | 27 |
| 11.6 | Counterparts | 28 |
| 11.7 | Entire Agreement | 28 |
| 11.8 | Waiver, Amendment | 28 |
| 11.9 | Certain Remedies | 28 |
| 11.10 | Interpretation; | 28 |
| 11.11 | Waiver of Jury Trial | 29 |
| 11.12 | Governing Law | 29 |

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-iii-

------

#### SERVICES AGREEMENT

This SERVICES AGREEMENT (this "**Agreement**"), dated as of May 5, 2025, is entered into by and between Howard Hughes Holdings Inc. (the "**Company**") and Pershing Square Capital Management, L.P. ("**PSCM**").

#### W I T N E S S E T H:

WHEREAS, the Company and Pershing Square Holdco, L.P. ("**Holdco**") have entered into that certain Share Purchase Agreement, dated as of the date hereof (the "**Share Purchase Agreement**") with respect to Holdco's purchase of shares of Common Stock from the Company on the terms and conditions set forth therein; and

WHEREAS, the entry into this Agreement and the other transactions contemplated by the Share Purchase Agreement are intended to facilitate the Company's strategy of operating as a diversified holding company that, among other things, seeks to acquire and engage in business through controlling interests in private operating companies (including take-private transactions involving public operating companies) and enable value creation through, among other things, the services contemplated by this Agreement; and

WHEREAS, the Company, in its capacity as a Service Recipient, wishes to engage PSCM, in its capacity as a Service Provider, to provide the services set forth in this Agreement, and PSCM, in its capacity as the Service Provider, wishes to accept such engagement, in each case subject to the terms and conditions of this Agreement;

**NOW THEREFORE** in consideration of the mutual covenants and agreements contained in this Agreement and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereto agree as follows:

#### ARTICLE 1

#### INTERPRETATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 **Definitions**.

In this Agreement, except where the context otherwise requires, the following terms will have the following meanings:

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| 1.1.1 | "**Advisers Act**" means the U.S. Investment Advisers Act of 1940, as amended; |

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| 1.1.2 | "**Affiliate**" of any particular Person means any other Person controlling, controlled by or under common control with such particular Person. For the purposes of this definition, "**control**" means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities, contract or otherwise; |

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| 1.1.3 | "**Agreement**" has the meaning assigned thereto in the Preamble, as the same may be amended from time to time, and "herein", "hereof", "hereby", "hereunder" and similar expressions refer to this Agreement and include every instrument supplemental or ancillary to this Agreement and, except where the context otherwise requires, not to any particular article or section thereof; |

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| 1.1.4 | "**Base Fee**" means a fee of $3,750,000 per quarter ($15,000,000 per annum), which amount shall be adjusted for inflation annually beginning on January 1, 2026 by the Inflation Factor; |

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| 1.1.5 | "**Board**" means the board of directors of the Company; |

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| 1.1.6 | "**CEO**" means the Chief Executive Officer of the Company; |

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| 1.1.7 | "**CFO**" means the Chief Financial Officer of the Company; |

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| 1.1.8 | "**CIO**" means the Chief Investment Officer of the Company; |

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| 1.1.9 | "**Claims**" has the meaning assigned thereto in <u>Section 9.1.1</u>; |

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| 1.1.10 | "**Common Stock**" means the common stock of the Company, par value $0.01 per share; |

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| 1.1.11 | "**Company**" has the meaning assigned thereto in the Preamble; |

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| 1.1.12 | "**Confidential Information**" has the meaning assigned thereto in <u>Section 6.4</u>; |

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| 1.1.13 | "**Core PCE Price Index**" means The Personal Consumption Expenditures Price Index, Excluding Food and Energy, as reported by the Bureau of Economic Analysis; |

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| 1.1.14 | "**Disinterested Director**" means, with respect to any matter upon which the Board votes, a director of the Board who is not a party to the act or transaction and does not have a material interest in the act or transaction or a material relationship with a person that has a material interest in the act or transaction, as reasonably determined by the Board in good faith. |

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| 1.1.15 | "**Equity Trigger**" has the meaning assigned thereto in <u>Section 10.2.3</u>; |

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| 1.1.16 | "**Executive Chairman**" means the Executive Chairman of the Company; |

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| 1.1.17 | "**Expenses**" has the meaning assigned thereto in <u>Section 7.4.2</u>; |

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| 1.1.18 | "**Governing Documents**" means, collectively, the Amended and Restated Certificate of Incorporation of the Company, adopted as of August 11, 2023 (as amended from time to time), and the Amended and Restated Bylaws of the Company, adopted as of August 11, 2023 (as amended from time to time); |

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| 1.1.19 | "**Governmental Entity**" means any (i) nation, region, state, province, county, city, town, village, district or other jurisdiction, (ii) federal, state, local, municipal, foreign or other government, (iii) governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, court or tribunal, or other entity), (iv) multinational organization or body or (v) body entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature or any other self-regulatory organizations; |

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| 1.1.20 | "**Holdco**" has the meaning assigned thereto in the Recitals; |

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| 1.1.21 | "**Indemnified Party**" has the meaning assigned thereto in <u>Section 9.1.1</u>; |

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| 1.1.22 | "**Indemnifying Party**" has the meaning assigned thereto in <u>Section 9.1.1</u>; |

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| 1.1.23 | "**Independent Financial Expert**" means a nationally recognized financial advisory firm; |

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| 1.1.24 | "**Inflation Factor**" means, as of any date of determination, the fraction obtained where the numerator is the most recently publicly reported Core PCE Price Index and the denominator is the Core PCE Price Index for the corresponding month of the prior year, with appropriate mathematical adjustment made to ensure that both the numerator and the denominator have been prepared on the same basis; <u>provided</u>, for purposes of applying the Inflation Factor to adjust the Base Fee and the Reference Share Price of the Variable Fee as of the start of the 2026 calendar year, the denominator is the most recent publicly reported Core PCE Price Index as of the date of this Agreement; |

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| 1.1.25 | "**Investment Advisory Services**" means any recommendation to buy, sell, vote or take any similar action with respect to a "security" (which, for purposes of this definition only, shall have the meaning assigned thereto in the Advisers Act), to the extent such activity constitutes the business of an "investment adviser" (as defined for purposes of the Advisers Act); |

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| 1.1.26 | "**Laws**" means any statutes, laws (including common law), rules, ordinances, regulations, codes, orders, judgments, decisions, injunctions, writs, decrees, applicable to the Company or any of its Subsidiaries or PSCM or its Affiliates, as applicable, or their respective properties or assets; |

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| 1.1.27 | "**Liabilities**" has the meaning assigned thereto in <u>Section 9.1.1</u>; |

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| 1.1.28 | "**Make Whole Amount**" means an amount, in cash, equal to the sum of the present values of all Base Fees and Variable Fees for the remainder of the then-current Term, determined as of the date on which this Agreement is terminated as a result of a Change of Control (as defined in the Standstill Agreement) in good faith by mutual agreement of the Service Provider and the Disinterested Directors (on behalf of the Service Recipient); <u>provided</u>, that if the Service Provider and Service Recipient are unable to reach agreement within fifteen (15) days of the date of notice of termination, then each of the Service Provider and the Disinterested Directors (on behalf of the Service Recipient) shall select an independent appraiser of nationally recognized standing (the "**Initial Appraisers**") to each independently calculate the Make Whole Amount and deliver in writing (with reasonable supporting detail) such calculation to the Service Provider and the Service Recipient within fifteen (15) days after such selection. If the Make Whole Amount as calculated by each of the Initial Appraisers is within 10% of the Make Whole Amount as calculated by the other Initial Appraiser, then the Make Whole Amount shall be deemed to be the arithmetic average of the two amounts. If the Make Whole Amount as calculated by each of the Initial Appraisers is not within 10% of the Make Whole Amount as calculated by the other Initial Appraiser, then the Initial Appraisers shall jointly select a third independent appraiser of nationally recognized standing (the "**Third Appraiser**") within twenty (20) days. The Third Appraiser shall review the calculations and supporting details of the submissions of each of the Initial Appraisers and shall within fifteen (15) days after the selection of the Third Appraiser select one of such calculations as the Make Whole Amount. For the avoidance of doubt, the Third Appraiser shall not make an independent determination of the Make Whole Amount but shall be limited to selecting as between the calculations provided by each of the Initial Appraisers. Any calculation of the Make Whole Amount that is mutually agreed by the Service Provider and the Disinterested Directors (on behalf of the Service Recipient), that is deemed to be the average of the Make Whole Amount as calculated by each of the Initial Appraisers or that is adopted by the Third Appraiser, as applicable, shall be deemed final and binding upon the Service Recipient and Service Provider. The expenses of each party's respective Initial Appraiser shall be incurred by such party selecting each such Initial Appraiser; <u>provided</u>, that if a Third Appraiser is engaged, then the expenses of such Third Appraiser shall be borne by the party who selected the Initial Appraiser whose calculation was not selected by the Third Appraiser. |

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| 1.1.29 | "**Permitted Disclosure Parties**" has the meaning assigned thereto in <u>Section 6.4</u>; |

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| 1.1.30 | "**Pershing Square Group**" means Holdco and its controlled Affiliates, including PSCM and the investment funds managed by PSCM; |

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| 1.1.31 | "**Person**" means an individual, a group (including a "group" under Section 13(d) of the Securities Exchange Act of 1934 as amended), a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a Governmental Entity or any department, agency or political subdivision thereof; |

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| 1.1.32 | "**PSCM**" has the meaning assigned thereto in the Preamble; |

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| 1.1.33 | "**Registration Rights Agreement**" means that certain Registration Rights Agreement, dated as of May 5, 2025, by and between the Company and Holdco; |

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| 1.1.34 | "**SEC**" means the U.S. Securities and Exchange Commission; |

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| 1.1.35 | "**Service Provider**" means PSCM and any other Affiliate(s) of PSCM that is appointed by PSCM from time to time to act as a provider of Services pursuant to this Agreement; |

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| 1.1.36 | "**Service Recipient**" means the Company and its Subsidiaries; |

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| 1.1.37 | "**Services**" has the meaning assigned thereto in <u>Section 3.1</u>; |

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| 1.1.38 | "**Share Purchase Agreement**" has the meaning assigned thereto in the Recitals; |

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| 1.1.39 | "**Shareholder Agreement**" means that certain Shareholder Agreement, dated as of May 5, 2025, by and among the Company, Holdco and PSCM; |

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| 1.1.40 | "**SpinCo**" has the meaning assigned thereto in <u>Section 1.1.47</u>; |

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| 1.1.41 | "**Standstill Agreement**" means that certain Standstill Agreement, dated as of May 5, 2025, by and between the Company and Holdco; |

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| 1.1.42 | "**Subsidiary**" means, with respect to a Person, (i) a corporation a majority of whose capital stock with voting power, under ordinary circumstances, to elect a majority of the directors is at the time, directly or indirectly, owned by such Person, by a Subsidiary of such Person, or by such Person and one or more subsidiaries of such Person, (ii) a partnership in which such Person or a Subsidiary of such Person is, at the date of determination, a general partner of such partnership, (iii) a limited liability company of which such Person, or a Subsidiary of such Person, is a managing member or (iv) any other Person (other than a corporation) in which such Person, a Subsidiary of such Person or such Person and one or more subsidiaries of such Person, directly or indirectly, at the date of determination thereof, has (x) at least a majority ownership interest or (y) the power to elect or direct the election of a majority of the directors or other governing body of such Person; |

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| 1.1.43 | "**Successor Agreement**" has the meaning assigned thereto in <u>Section 11.2.2</u>; |

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| 1.1.44 | "**Term**" means the Initial Term or a Renewal Term; |

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| 1.1.45 | "**Trading Day**" means a day on which the New York Stock Exchange is open for trading, including any day on which the New York Stock Exchange is open for trading for a period of time less than the customary time; |

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| 1.1.46 | "**Transaction Documents**" means, individually or collectively, the Share Purchase Agreement, the Shareholder Agreement, the Registration Rights Agreement, the Standstill Agreement and this Agreement; and |

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| 1.1.47 | "**Variable Fee**" means, with respect to any calendar quarter, a fee equal to 0.375% of the product of (x) the *excess of* (A) the Quarter-End Price with respect to such calendar quarter *over* (B) the Reference Share Price *multiplied by* (y) the Reference Share Count, where: |

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(i) the "**Quarter-End Price**" with respect to any calendar quarter equals the volume-weighted average trading price of the Common Stock on the New York Stock Exchange (or, if a different principal U.S. national securities exchange or securities market is the principal trading market for the Common Stock, then on such principal U.S. national securities exchange or securities market on which the Common Stock is then traded) for the fifteen (15) Trading Days ending on the last Trading Day of such calendar quarter; <u>provided</u>, <u>however</u>, that in the event the Common Stock is de-listed from the New York Stock Exchange and is not listed on another principal U.S. national securities exchange or securities market, the Quarter-End Price shall be the fair market value per share of Common Stock as determined in good faith by mutual agreement of the Service Provider and the Disinterested Directors (on behalf of the Service Recipient); <u>provided</u>, that if the Service Provider and Service Recipient are unable to reach agreement within fifteen (15) days of the end of such calendar quarter, then each of the Service Provider and the Disinterested Directors (on behalf of the Service Recipient) shall select an Independent Financial Expert appointed for such purpose (the "**Initial Financial Experts**"), which Initial Financial Experts shall each independently calculate the Quarter-End Price using one or more valuation methods that such Independent Financial Expert in its professional judgment determines to be most appropriate, assuming (1) such shares were publicly listed on a principal U.S. national securities exchange or quotation system, (2) there was no compulsion on the part of any party to buy or sell such shares and (3) taking into account all relevant factors without regard for any discounts for illiquidity or private company status. If the Quarter-End Price as determined by each of the Initial Financial Experts is within 10% of the Quarter-End Price as calculated by the other Initial Financial Expert, then the Quarter-End Price shall be deemed to be the arithmetic average of the two amounts. If the Quarter-End Price as determined by each of the Initial Financial Experts is not within 10% of the Quarter-End Price as calculated by the other Initial Financial Expert, then the Initial Financial Experts shall jointly select a third independent appraiser of nationally recognized standing (the "**Third Financial Expert**") within twenty (20) days. The Third Financial Expert shall review the calculations and supporting details of the submissions of each of the Initial Financial Experts and shall within fifteen (15) days after the selection of the Third Financial Expert select one of such calculations as the Quarter-End Price. For the avoidance of doubt, the Third Financial Expert shall not make an independent determination of the Quarter-End Price but shall be limited to selecting as between the calculations provided by each of the Initial Financial Experts. Any calculation of the Quarter-End Price that is mutually agreed by the Service Provider and the Disinterested Directors (on behalf of the Service Recipient), that is deemed to be the average of the Make Whole Amount as calculated by each of the Initial Financial Experts or that is adopted by the Third Financial Expert, as applicable, shall be deemed final and binding upon the Service Recipient and Service Provider. The expenses of each party's respective Initial Financial Expert shall be incurred by such party selecting each such Initial Financial Expert; <u>provided</u>, that if a Third Financial Expert is engaged, then the expenses of such Third Financial Expert shall be borne by the party who selected the Initial Financial Expert whose calculation was not selected by the Third Financial Expert.

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(ii) the "**Reference Share Price**" equals $66.1453, subject to adjustment as follows: (A) annually, beginning on January 1, 2026, the Reference Share Price in effect at the time will be multiplied by the Inflation Factor; (B) in the event of any dividend, stock split, reverse stock split or other capital reorganization, reclassification or adjustment with similar effect, the Reference Share Price in effect at the time will be equitably adjusted to reflect the effect of such capital reorganization, reclassification or adjustment and any value creation; and (C) without limiting the generality of clause (B), in the event that the Company or any of its Affiliates undergoes a "spin-off" transaction, the Reference Share Price in effect at the time will be equitably adjusted based on the market value of the assets and/or Subsidiaries that were subject of the spin-off transaction (the "**SpinCo**"); and

(iii) the "**Reference Share Count**" equals 59,393,938, subject to equitable adjustment to reflect the effect of any stock split, reverse stock split or other capital reorganization, reclassification or adjustment with similar effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 **Headings and **Table of Contents**.** The inclusion of headings and a table of contents in this Agreement are for convenience of reference only and will not affect the
 construction or interpretation hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 **Gender and Number.** In this Agreement, unless the context otherwise requires, words importing the singular include the plural and vice versa, words importing gender
 include all genders or the neuter, and words importing the neuter include all genders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 **Actions by the Service Provider or the Service Recipient.** Unless the context requires otherwise, where the consent or a determination is required by the Service Provider
 or Service Recipient hereunder, the parties shall be entitled to conclusively rely upon it having been given or taken, as applicable, if, the Service Provider or Service Recipient, as applicable, has communicated the same in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 **Currency.** All amounts in this Agreement are stated and will be paid in U.S. dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 **Invalidity of Provisions.** The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity
 or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any person or entity or any circumstance, is found to be invalid or unenforceable in any jurisdiction, (a) a suitable and
 equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application
 of such provision to other persons, entities or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the
 application thereof, in any other jurisdiction.

#### ARTICLE 2

#### APPOINTMENT OF THE SERVICE PROVIDER

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 **Appointment and Acceptance**.

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| 2.1.1 | Subject to the provisions of this Agreement, the Service Recipient appoints the Service Provider to provide the Services to the Service Recipient. This appointment will be subject to the express terms of this Agreement and to the Board's supervision of the Service Provider and obligation to manage and control the affairs of the Service Recipient. |

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<br> 2.1.2 The Service Provider hereby accepts the appointment provided for in<u>Section 2.1.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 **Other Service Providers**. The Service Provider may, from time to time, appoint an Affiliate of PSCM to act as a new Service Provider
 under this Agreement, effective upon the execution of a joinder agreement by the new Service Provider in the form set forth on <u>Schedule A</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 **Subcontracting and Other Arrangements**. The Service Provider may subcontract or arrange for the provision of any or all of the
 Services to be provided by it under this Agreement by one or more of its Affiliates, and the Service Recipient hereby consents to any such subcontracting or arrangement; <u>provided</u>, that the Service Provider shall remain responsible
 to the Service Recipient for any Services provided by persons other than the Service Provider.

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#### ARTICLE 3

#### SERVICES AND POWERS OF THE SERVICE PROVIDER

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 **Services**. The Service Provider will provide, or arrange for the provision by one or more of its Affiliates of, the services (the "**Services**") described below:

<br> 3.1.1 making recommendations with respect to hedging, balance sheet management and optimization, and capital allocation;

<br> 3.1.2 providing the Investment Advisory Services;

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| 3.1.3 | executing transactions on behalf and for the account of the Service Recipient with respect to hedging transactions, derivative transactions, open market acquisitions of securities, other transactions of a type that are not reasonably within the ordinary course operations of The Howard Hughes Corporation or another operating Subsidiary of the Company and any other transactions of a type that are approved by a majority vote of the Disinterested Directors, and assisting with the execution of all other transactions on behalf of the Service Recipient in accordance with recommendations and/or advice provided by the Service Provider (it being understood and agreed that transactions for this purpose shall not include transactions that are part of the general operating functions of the Service Recipient unless otherwise approved by a majority of the Disinterested Directors);<u>provided</u>, that authorization has been given by the Executive Chairman and the CIO, with the approval of the CEO (or a designee of the CEO), and subject to such terms of reference or standing authorizations of the Board or a committee thereof as may be in effect from time to time; |

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| 3.1.4 | assisting the Service Recipient with business and corporate development functions, including identifying, evaluating and recommending to the Service Recipient potential acquisition, disposition or business combination opportunities, including conducting business and commercial due diligence, and assisting in negotiating the terms of such transactions; |

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<br> 3.1.5 making recommendations with respect to the exercise of any voting rights to which the Service Recipient is entitled in respect of investments in other operating companies;

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| 3.1.6 | recommending and, where requested to do so, assisting in the raising of funds whether by way of debt, equity or otherwise, including the preparation, review or distribution of any prospectus or offering memorandum in respect thereof and assisting with communications in connection therewith; |

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| 3.1.7 | monitoring operations of the Service Recipient and its Subsidiaries, joint venture arrangements or other assets (<u>provided</u>, for clarity, that the Service Recipient's CEO, CFO and General Counsel will retain authority and responsibility for day to day management of the Service Recipient's business and affairs); |

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| 3.1.8 | (a) providing recommendations for appropriately qualified persons to serve as designees or deputies of the CIO from time to time, and (b) if at any time the appointment rights with respect to the CIO under Section 5(a)(iv) of the Shareholder Agreement have terminated, providing recommendations for appropriately qualified persons to serve as the CIO from time to time; |

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<br> 3.1.9 upon request, engaging and supervising third-party service providers;

<br> 3.1.10 upon request, making recommendations with respect to the payment of dividends or other distributions; and

<br> 3.1.11 providing such other services as may from time to time be agreed with the Service Recipient.

The Service Provider shall provide the Services in a commercially reasonable manner: (a) with the skill, care, attention and diligence to be expected from a reasonably prudent and qualified person in comparable circumstances; and (b) in compliance with all applicable Laws and all requirements of any Governmental Entity affecting the Services or the Service Recipient, provided that the Service Provider has been reasonably informed by the Service Recipient of applicable Laws and requirements affecting the Service Recipient. Notwithstanding any provision herein to the contrary, all Investment Advisory Services shall be provided by PSCM or another Service Provider that is registered with the SEC as an investment adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 **Supervision of Service Provider's Activities**. The Service Provider will perform its duties hereunder as an independent contractor
 of the Service Recipient and will, at all times, be subject to the supervision of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 **Restrictions on the Service Provider**. In performing its duties under this Agreement, the Service Provider will be entitled to rely
 in good faith on qualified experts, professionals and other agents (including on accountants, appraisers, consultants, legal counsel and other, professional advisors) and will be permitted to rely in good faith upon the direction of the
 Executive Chairman, CEO, CIO, or secretary of the Board (or any designees thereof), to evidence any approvals or authorizations that are required under this Agreement. All references in this Agreement to the Service Recipient or the
 Board for the purposes of instructions, approvals and requests to the Service Provider will refer to the Board.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 **Errors and Omissions Insurance**. The Service Provider will at all times during the term of this Agreement maintain "errors and omissions" insurance coverage and other
 insurance coverage which is customarily carried by Persons performing functions that are similar to those performed by the Service Provider under this Agreement and in an amount that is comparable to that which is customarily maintained
 by such other Persons.

#### ARTICLE 4

#### RELATIONSHIP BETWEEN THE SERVICE PROVIDER AND THE SERVICE RECIPIENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 **Other Activities; Allocation of Investment Opportunities**. Neither the Service Provider nor any Affiliate, director, officer,
 member, partner, shareholder or employee of any member of the Pershing Square Group will be prohibited from engaging in other business activities or sponsoring, or providing services to, third parties including any that compete directly
 or indirectly with the Service Recipient. Notwithstanding the foregoing, the Service Recipient shall have a preferential right with respect to opportunities to acquire controlling stakes in (to own, engage in business through and
 operate) any private operating company (including a take-private transaction of a public operating company) (" <u>Target Opportunities</u> ") that the Service Provider may identify from time to time, such that the Service Provider shall use
 commercially reasonable efforts to assist in the Service Recipient's evaluation of any such Target Opportunities and afford Service Recipient with the opportunity to invest in such Target Opportunities, provided that (1) any such
 investment is consistent with the financial resources of the Company and (2) such investment is suitable for the Company, as determined by the Service Provider in good faith. In the event that the Service Recipient does not elect, by
 written notice to the Service Provider within thirty (30) days (provided that, Service Provider may in good faith notify Service Recipient that time is of the essence for any particular Target Opportunity, in which case the foregoing
 reference to thirty (30) days shall instead be reduced to not less than five (5) business days) of being informed of a Target Opportunity (including the material terms thereof), to pursue such Target Opportunity, then the Service Provider
 will be free to pursue such Target Opportunity or allocate all or any portion of such Target Opportunity to third parties. For the avoidance of doubt, this preferential right of the Service Recipient shall not apply to opportunities to
 acquire a private company in connection with efforts to publicly list such private company through an initial public offering, acquisition by a publicly listed special purpose acquisition company or other similar means.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 **Exclusivity**. The Service Recipient will not, during the term of this Agreement, engage any other Person to provide any services
 comparable to those to be provided by the Service Provider hereunder without the prior written consent of the Service Provider, which may be withheld in the absolute discretion of the Service Provider.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 **No Partnership or Joint Venture**. The Service Recipient and the Service Provider are not partners or joint venturers with each
 other, and nothing herein will be construed so as to make them partners or joint venturers or impose any liability as such on any of them as a result of this Agreement; <u>provided</u>, <u>however</u>, that nothing herein will be
 construed so as to prohibit the Service Recipient and the Service Provider from embarking upon an investment together as partners, joint venturers or in any other manner whatsoever.

#### ARTICLE 5

#### MANAGEMENT AND EMPLOYEES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 **Management and Employees**.

The Service Provider will arrange for such qualified personnel and support staff to be available to carry out the Services. Such personnel and support staff will devote such of their time to the provision of the Services to the Service Recipient as the Service Provider reasonably deems necessary and appropriate, commensurate with the level of activity of the Service Recipient from time to time. Such personnel need not have as their primary responsibility the provision of the Services to the Service Recipient or be dedicated exclusively to the provision of the Services to the Service Recipient.

To the extent applicable, the Service Recipient will make available to the Service Provider, and grant the Service Provider access to, the employees or contractors of the Service Recipient as the Service Provider may from time to time reasonably request in order for the Service Provider to perform its obligations, covenants and responsibilities and exercise its rights pursuant to the terms hereof.

#### ARTICLE 6

#### INFORMATION AND RECORDS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 **Books and Records**.

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| 6.1.1 | The Service Provider will maintain proper books, records and documents, in which complete, true and correct entries, in conformity in all material respects with the Advisers Act, as applicable, will be made in respect of the performance of the Services under this Agreement. |

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| 6.1.2 | The Service Recipient will maintain proper books, records and documents, in which complete, true and correct entries, in conformity in all material respects with generally accepted accounting principles and all requirements of applicable Laws, will be made in respect of the receipt of the Services under this Agreement. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 **Access to Information by Service Provider**.

<br> 6.2.1 The Service Recipient will:

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|:---|:---|
| 6.2.1.1 | grant, or cause to be granted, to the Service Provider reasonable access, during normal business hours, to all documentation and information reasonably necessary in order for the Service Provider to perform its obligations, covenants and responsibilities pursuant to the terms hereof, including all of the books, records, and documents, financial and operating data of the Service Recipient required to be maintained under<u>Section 6.1.2</u> and reasonably necessary to enable the Service Provider to provide the Services; and |

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|:---|:---|
| 6.2.1.2 | provide, or cause to be provided, all documentation and information as may be reasonably requested by the Service Provider and reasonably necessary in order for the Service Provider to perform its obligations, covenants and responsibilities pursuant to the terms hereof, and promptly notify the Service Provider of any material facts or information of which the Service Recipient is aware that is reasonably expected to affect the performance of the obligations, covenants or responsibilities of the Service Provider pursuant to this Agreement, including maintenance of proper financial records, including any known, pending or threatened suits, actions, claims, proceedings or orders by or against any Service Recipient before any court of administrative tribunal. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 **Additional Information**. The parties acknowledge and agree that conducting the activities and providing the Services contemplated
 herein may have the incidental effect of providing additional information which may be utilized with respect to, or may augment the value of, business interests and related assets in which the Service Provider or its Affiliates have an
 interest and, subject to compliance with this Agreement, that neither the Service Provider nor its Affiliates will be liable to account to the Service Recipient with respect to such activities or results.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 **Confidential Information**. The Service Provider shall keep confidential any and all non-public information, written or oral,
 obtained by it in connection with the services rendered hereunder ()"**Confidential Information**") and shall not use Confidential Information except in furtherance of its duties or performance of its
 obligations and exercise of its rights under this Agreement or any other agreement between the Service Provider or its Affiliates and the Service Recipient or disclose Confidential Information, in whole or in part, to any Person other
 than (i) to officers, directors, employees, agents, representatives and advisors of the Service Provider or its Affiliates who need to know such Confidential Information for the purpose of rendering services hereunder ()"**Permitted Disclosure Parties** "), (ii) as required by law, rule, regulation or legal process to which the Service Provider or any Person to whom disclosure is permitted hereunder, or (iii) otherwise with
 the consent of the Company. The Service Provider agrees to inform each of its Permitted Disclosure Parties of the non-public nature of the Confidential Information. Nothing herein shall prevent the Service Provider from disclosing
 Confidential Information (a) upon the order of any court or administrative agency, (b) upon the request or demand of, or pursuant to any law or regulation to, any regulatory agency or authority, (c) to the extent reasonably required in
 connection with the exercise of any remedy hereunder, or (d) to its legal counsel or independent auditors; <u>provided</u>, <u>however</u>, that with respect to clauses (a) and (b), it is agreed that, so long as not legally prohibited,
 the Service Provider will promptly provide the Company with written notice of such order, request or demand so that the Company may seek, at its sole expense, an appropriate protective order and/or waive the Service Provider's compliance
 with the provisions of this Agreement. Notwithstanding the foregoing, the Service Provider shall not be required to provide notice or seek consent to disclose any Confidential Information in connection with a routine regulatory or
 self-regulatory examination or audit by, or blanket request from, a regulatory, self-regulatory or Governmental Entity that is not specifically targeted at the Service Recipient or this Agreement. If, failing the entry of a protective
 order or the receipt of a waiver hereunder, the Service Provider is required to disclose Confidential Information, the Service Provider may, without liability hereunder, disclose only that portion of such information that is legally
 required to be so disclosed; <u>provided</u>, that the Service Provider agrees to exercise its reasonable best efforts to obtain reliable assurance that confidential treatment will be accorded such information. Notwithstanding any
 provision herein to the contrary, each of the following shall be deemed to be excluded from provisions hereof: any Confidential Information that (A) is available to the public from a source other than the Service Provider, or (B) is
 obtained by the Service Provider from a third-party which, to the best of the Service Provider's knowledge, does not constitute a breach by such third-party of an obligation of confidence with respect to the Confidential Information
 disclosed. The provisions of this <u>Section 6.4</u> shall survive the expiration or earlier termination of this Agreement for a period of one year.

#### ARTICLE 7

#### FEES AND EXPENSES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 **Base Fee and Variable Fee**. The Service Recipient hereby agrees to pay the following amounts, each in accordance with this <u>Article 7</u>: (i) the Base Fee for each quarter, paid quarterly in cash in advance (it being understood, for the avoidance of doubt, that the Base Fee shall be pro-rated in the case of the second quarter of 2025, for the portion of such
 quarter that occurs after the date hereof) and (ii) the Variable Fee, paid quarterly in cash (for the avoidance of doubt, including with respect to calendar year 2025).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 **Payment of Base Fee and Variable Fee**.

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|:---|:---|
| 7.2.1 | The Service Provider will provide an invoice setting out the Base Fee for each quarter to the Service Recipient at least thirty (30) days before the start of each quarter;<u>provided</u>, that with respect to the quarter that includes the date hereof, the pro-rated base fee for such quarter will be included in the first invoice delivered by the Service Provider. Payment of the Base Fee set forth therein will be due and payable no later than the first day of the quarter in which such services are provided. |

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|:---|:---|
| 7.2.2 | The Service Provider will provide an invoice setting out the Variable Fee to the Service Recipient no later than five (5) days after the end of each calendar quarter. Payment of the Variable Fee set forth therein will be due and payable no later than fifteen (15) days from the end of the calendar quarter. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 **Failure to Pay When Due**. Any amount payable by the Service Recipient to the Service Provider hereunder which is not remitted when
 so due will remain due (whether on demand or otherwise) and interest will accrue on such overdue amounts (both before and after judgment) at a rate per annum equal to 10%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 **Expenses.** 

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|:---|:---|
| 7.4.1 | The parties acknowledge and agree that the Base Fee is intended to cover Service Provider's payment of its ordinary course overhead expenses, including the remuneration of the management, personnel or support staff who enable the provision of Services as well as other ordinary course business expenses, but excluding the Expenses (as defined below). |

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|:---|:---|
| 7.4.2 | The Service Recipient will reimburse the Service Provider for all third-party, out-of-pocket fees, costs and expenses incurred in connection with the provision of the Services (the "**Expenses**"); <u>provided</u>, <u>however</u>, that approval of the Service Recipient will be required for the reimbursement of any Expenses in excess of $1,000,000 in the aggregate in a calendar year, as adjusted annually for inflation by the Inflation Factor, and subject to periodic adjustment as determined in good faith by a majority of the Disinterested Directors (taking into account growth in the business engaged in by the Service Provider and other matters reasonably relevant to the incurrence of Expenses). Such Expenses are expected to include the following (which, for the avoidance of doubt, shall not include (i) any such amounts that are directly borne by the Service Recipient or (ii) any overhead expenses referred to in <u>Section 7.4.1, in each case,</u> for which no reimbursement shall be made): |

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|:---|:---|
| 7.4.2.1 | transaction-related fees, costs and expenses, including in connection with due diligence and research, travel and lodging, hedging costs, brokerage fees and commission, clearing and settlement charges, custodial fees, bank service fees, margin and other interest expense and transaction fees, financial reporting, regulatory filings and investor relations, professional fees and expenses (including fees and expenses of investment bankers, appraisers, counsels, research providers, public and government relations firms and other advisors, consultants, experts and agents); |

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<br> 7.4.2.2 taxes, licenses and other statutory fees or penalties levied against or in respect of the Service Recipient;

<br> 7.4.2.3 all sales, use, value added, withholding or other taxes, customs duties or other governmental charges levied or imposed by any Governmental Entity in connection with transactions of the Service Recipient and its Affiliates;

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|:---|:---|
| 7.4.2.4 | amounts owed under indemnification, contribution or similar arrangements, unless such amounts owed are a result of the bad faith, fraud, willful misconduct, gross negligence or criminal conduct of the Service Provider; and |

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<br> 7.4.2.5 any other fees, costs and expenses payable to third parties that are reasonably necessary for the performance of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 **Computation and Payment of Expenses**. The Service Provider will prepare a statement documenting the Expenses to be reimbursed by the
 Service Recipient pursuant to this <u>Article 7</u> and will deliver such statement to the Service Recipient, approximately thirty (30) days prior to the end of the quarter. All Expenses reimbursable pursuant to this <u>Article 7</u> will be reimbursed no later than the date which is last day of the quarter. The provisions of this <u>Section 7.5</u> will survive the termination of this Agreement.

#### ARTICLE 8

#### REPRESENTATIONS AND WARRANTIES OF

#### THE SERVICE PROVIDER AND THE SERVICE RECIPIENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 **Representations and Warranties of the Service Provider.** The Service Provider (or, as applicable, its general partner on its behalf) hereby represents and warrants to the
 Service Recipient that:

<br> 8.1.1 it (and, as applicable, its general partner) is validly organized and existing under the relevant laws governing its formation and existence;

<br> 8.1.2 it holds such licenses or registrations necessary to perform its duties hereunder;

<br> 8.1.3 it (or, as applicable, its general partner on its behalf) has the power, capacity and authority to enter into this Agreement and to perform its duties and obligations hereunder;

<br> 8.1.4 it (or, as applicable, its general partner) has taken all necessary action to authorize the execution, delivery and performance of this Agreement;

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| 8.1.5 | the execution and delivery of this Agreement by it (or, as applicable, its general partner on its behalf) and the performance by it of its obligations hereunder do not and will not contravene, breach or result in any default under its governing documents (or, as applicable, the governing documents of its general partner) or under any material agreement, license, permit or applicable law to which it is a party or by which it or any of its properties or assets may be bound; |

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<br> 8.1.6 no authorization, consent or approval, or filing with or notice to any Person is required in connection with the execution, delivery or performance by it (or, as applicable, its general partner on its behalf) of this Agreement; and

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|:---|:---|
| 8.1.7 | this Agreement constitutes a valid and legally binding obligation of it enforceable against it in accordance with its terms, subject to (i) applicable bankruptcy, insolvency, moratorium, fraudulent conveyance, reorganization and other laws of general application limiting the enforcement of creditors' rights and remedies generally and (ii) general principles of equity, including standards of materiality, good faith, fair dealing and reasonableness, equitable defenses and limits as to the availability of equitable remedies, whether such principles are considered in a proceeding at law or in equity. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 **Representations and Warranties of the Service Recipient**. The Service Recipient hereby represents and warrants to the Service Provider that:

<br> 8.2.1 it is validly organized and existing under the relevant laws governing its formation and existence;

<br> 8.2.2 it has the power, capacity and authority to enter into this Agreement and to perform its duties and obligations hereunder;

<br> 8.2.3 it has taken all necessary action to authorize the execution, delivery and performance of this Agreement;

<br> 8.2.4 the execution and delivery of this Agreement by it and the performance by it of its obligations hereunder do not and will not contravene, breach or result in any default under the Governing Documents;

<br> 8.2.5 no authorization, consent or approval, or filing with or notice to any Person is required in connection with the execution, delivery or performance by it of this Agreement; and

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| 8.2.6 | this Agreement constitutes a valid and legally binding obligation of it enforceable against it in accordance with its terms, subject to: (i) applicable bankruptcy, insolvency, moratorium, fraudulent conveyance, reorganization and other laws of general application limiting the enforcement of creditors' rights and remedies generally; and (ii) general principles of equity, including standards of materiality, good faith, fair dealing and reasonableness, equitable defenses and limits as to the availability of equitable remedies, whether such principles are considered in a proceeding at law or in equity. |

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#### ARTICLE 9

#### LIABILITY AND INDEMNIFICATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 **Indemnity**.

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|:---|:---|
| 9.1.1 | The Service Recipient (for purposes of this Article, an "**Indemnifying Party"**) shall indemnify and hold harmless the Service Provider, any of its Affiliates and any directors, officers, agents, members, partners, shareholders and employees of each of the foregoing (each, an "**Indemnified Party**") from and against all actions, proceedings, charges, claims, liabilities, losses, damages, costs or expenses (including legal fees) ("**Liabilities**") incurred by them or threatened in connection with any and all actions, suits, investigations, proceedings or claims of any kind whatsoever, whether arising under statute or action of a regulatory authority or otherwise or in connection with the business, investments and activities of the Service Recipient or in respect of or arising from this Agreement or the Services provided hereunder ("**Claims**"); <u>provided</u> that this <u>Section 9.1</u> shall not be construed so as to provide for the indemnification of, or advancement of expenses to, an Indemnified Party for (i) any liability to the extent that such Claim is finally determined by a final and non-appealable judgment entered by a court of competent jurisdiction to have resulted from the Indemnified Party's bad faith, fraud, willful misconduct, gross negligence or criminal conduct, or (ii) any liability (including liability under U.S. federal securities laws, which, under certain circumstances, impose liability even on Persons that act in good faith), to the extent (but only to the extent) that such indemnification would be in violation of applicable law, but shall be construed so as to effectuate the provisions of this <u>Section 9.1</u> to the fullest extent permitted by law. |

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| 9.1.2 | The Service Provider and the Service Recipient agree that in case any Claim should be made by a third party arising from this Agreement or the Services provided hereunder, the Indemnified Party will have the right to employ its own counsel in connection therewith, and the reasonable fees and expenses of such counsel, as well as the reasonable costs (excluding an amount reimbursed to such Indemnified Party for the time spent in connection therewith) and out-of-pocket expenses incurred in connection therewith will be paid by the Indemnifying Party in such case, as incurred but subject to recoupment by the Indemnifying Party if ultimately it is not liable to pay indemnification hereunder. |

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| 9.1.3 | The Service Provider and the Service Recipient agree that, promptly after the receipt of notice of the commencement of any third-party Claim involving an Indemnified Party pursuant to this Agreement, where such Claim is based, directly or indirectly, upon any matter in respect of which this Agreement provides for indemnification, the Indemnified Party in such case will notify the Indemnifying Party in writing of the commencement of such Claim (<u>provided</u> that any accidental failure to provide any such notice will not prejudice the right of any such Indemnified Party hereunder) and, throughout the course of such Claim, such Indemnified Party will use its best efforts to provide copies of all relevant documentation to the Indemnifying Party and will keep the Indemnifying Party apprised of the progress thereof and will discuss with the Indemnifying Party all significant actions proposed. |

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| 9.1.4 | The parties hereto expressly acknowledge and agree that the right to indemnity provided in this<u>Section 9.1</u> will be in addition to and not in derogation of any other liability which the Indemnifying Party in any particular case may have or of any other right to indemnity or contribution which any Indemnified Party may have by statute or otherwise at law. |

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<br> 9.1.5 Notwithstanding any provision herein to the contrary, the parties hereto expressly acknowledge and agree that no party shall be liable to any other party for consequential, special, exemplary or punitive damages, except to the extent payable to a third party.

<br> 9.1.6 The indemnity provided in this<u>Section 9.1</u> will survive the completion of Services rendered under, or any termination or purported termination of, this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 **Limitation of Liability**.

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|:---|:---|
| 9.2.1 | The Service Provider assumes no responsibility under this Agreement other than to render the services called for hereunder in good faith and will not be responsible for any action of the Board in following or declining to follow any advice or recommendations of the Service Provider, including as set forth in<u>Section 3.3</u> hereof. |

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| 9.2.2 | The Service Recipient hereby agrees that no Indemnified Party will be liable to the Service Recipient, the Board, an officer of a Service Recipient or any security holder of the Service Recipient for any Liabilities that may occur as a result of any acts or omissions by the Indemnified Party pursuant to or in accordance with this Agreement, except to the extent that such Liabilities are finally determined by a final and non-appealable judgment entered by a court of competent jurisdiction to have resulted from the Indemnified Party's bad faith, fraud, willful misconduct, gross negligence or criminal conduct. |

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| 9.2.3 | The maximum amount of the aggregate liability of any Indemnified Party with respect to such Liabilities finally determined by a final and non-appealable judgment entered by a court of competent jurisdiction to have resulted from the Indemnified Party's bad faith, fraud, willful misconduct, gross negligence, or, criminal conduct, will be equal to the amounts paid by the Service Recipient pursuant to<u>Section 7.1</u> and <u>Section 7.2</u> prior to the date the acts or omissions giving rise to a claim for liability shall have occurred. The maximum amount of the aggregate liability of the Service Provider pursuant to this Agreement will be equal to the aggregate of all amounts paid to the Service Provider in respect of Services pursuant to this Agreement or any agreement or arrangement contemplated by this Agreement in the five (5) most recent calendar years by the Service Recipients pursuant to <u>Section 7.1</u> and <u>Section 7.2</u> (provided that if less than five (5) calendar years have elapsed since the date of this Agreement, then such maximum amount of aggregate liability shall be equal, as of any date of determination, to the greater of (i) (x) twelve (12) *multiplied by* (y) the average of the aggregate Base Fees and Variable Fees paid with respect to each full quarter that has elapsed prior to such date of determination and (ii) the aggregate Base Fees and Variable Fees paid prior to such date of determination). |

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<br> 9.2.4 For the avoidance of doubt, the provisions of this<u>Section 9.2</u> will survive the termination of this Agreement.

#### ARTICLE 10

#### TERM AND TERMINATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 **Term**.

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| 10.1.1 | This Agreement shall have an initial term of ten (10) years (the "**Initial Term**") ending on May 5, 2035 and shall have successive renewal terms of ten (10) years thereafter (each, an "**Renewal Term**"), unless either the Service Recipient or the Service Provider elects not to renew this Agreement in accordance with <u>Section 10.2.4</u> or this Agreement is terminated by the Service Recipient or the Service Provider in accordance with <u>Section 10.2</u> or <u>Section 10.3</u>. The Service Provider's engagement hereunder will continue in full force and effect during the Term. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 **Termination by the Service Recipient**.

<br> 10.2.1 [Reserved]

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|:---|:---|
| 10.2.2 | The Service Recipient may, with the prior approval of two-thirds of the Disinterested Directors, terminate this Agreement effective upon one hundred twenty (120) days' prior written notice (or upon thirty (30) days' prior written notice with respect to<u>Sections 10.2.2.1</u>, <u>10.2.2.2,</u> <u>10.2.2.3</u> or <u>10.2.2.4)</u> to the Service Provider, without payment (except in the case of a termination pursuant to <u>Section 10.2.2.5</u>) if, during either the Initial Term or a Renewal Term: |

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|:---|:---|
| 10.2.2.1 | the Service Provider or any of its permitted assignees or subcontractors defaults in the performance or observance of any material term, condition or agreement contained in this Agreement that results in material harm to the Service Recipient and such default continues for a period of sixty (60) days after written notice thereof specifying in reasonable detail such default and requesting that the same be remedied in such sixty (60)-day period; |

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| 10.2.2.2 | the Service Provider or any of its permitted assignees or subcontractors engages in any act of fraud, misappropriation of funds or embezzlement against the Service Recipient, which, in the case of such act by a subcontractor, has not been remedied within sixty (60) days after written notice thereof specifying in reasonable detail such conduct and requesting that the same be remedied in such sixty (60) day period; |

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|:---|:---|
| 10.2.2.3 | the Service Provider or any of its permitted assignees or subcontractors has acted in a manner constituting bad faith, willful misconduct or gross negligence, or engaged in any criminal conduct, in the performance of its duties under this Agreement, in each case which, in the case of such conduct by a subcontractor, has not been remedied within sixty (60) days after written notice thereof specifying in reasonable detail such conduct and requesting that the same be remedied in such sixty (60) day period; or |

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| 10.2.2.4 | the Service Provider makes a general assignment for the benefit of its creditors, institutes proceedings to be adjudicated voluntarily bankrupt, consents to the filing of a petition of bankruptcy against it, is adjudicated by a court of competent jurisdiction as being bankrupt or insolvent, seeks reorganization under any bankruptcy law or consents to the filing of a petition seeking such reorganization or has a decree entered against it by a court of competent jurisdiction appointing a receiver liquidator, trustee or assignee in bankruptcy or in insolvency; or |

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| 10.2.2.5 | a Change of Control (as defined in the Standstill Agreement) of the Company occurs;<u>provided</u>, <u>however</u>, that (i) the Service Recipient provides written notice of termination within one hundred twenty (120) days of such Change of Control and (ii) the Service Recipient has paid or concurrently with the effectiveness of such termination pays to the Service Provider the Make Whole Amount. |

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|:---|:---|
| 10.2.3 | If at any point an Equity Trigger occurs, then the Company shall be entitled to, any time during the one hundred twenty (120)-day period following the date on which the Company first became aware of the Equity Trigger, to terminate this Agreement effective upon one hundred twenty (120) days' prior written notice to the Service Provider;<u>provided</u>, that a determination by the Company to exercise the aforementioned termination rights shall be valid only with the prior unanimous approval of the Disinterested Directors. For purposes of this paragraph, "Equity Trigger" means any of the following: (i) on or prior to the tenth (10th) anniversary of the Closing (as defined in the Share Purchase Agreement), Holdco and its Affiliates cease to beneficially own, directly or indirectly, a number of shares of Common Stock equal to at least the number of shares of Common Stock that were purchased pursuant to the Share Purchase Agreement at the Closing; and (ii) following the tenth (10th) anniversary of the Closing, Holdco and its Affiliates cease to beneficially own, directly or indirectly, a number of shares of Common Stock equal to at least seventy five percent (75%) of the number of shares of Common Stock that were purchased pursuant to the Share Purchase Agreement at the Closing; in the case of each of clause (i) and (ii), as the result of a sale of shares of Common Stock to a third party; and provided, for the avoidance of doubt, that any transfers of beneficial ownership of Common Stock to Holdco's successors and Affiliates and any former or current members of PSCM's senior management team, and shall be disregarded in determining whether an Equity Trigger has occurred; and provided, further, that the number of shares referenced in each of clause (i) and (ii) shall be subject to equitable adjustment to reflect the effect of any stock split, reverse stock split or other capital reorganization, reclassification or adjustment with similar effect. |

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|:---|:---|
| 10.2.4 | At least 240 days prior to the expiration of the Initial Term or any Renewal Term, as applicable, the Service Recipient shall provide written notice to the Service Provider of the Board's determination of the Disinterested Directors eligible to vote on a Non-Renewal, which vote shall occur no earlier than twenty (20) days after the date of such determination by the Board. At least 180 days prior to the expiration of the Initial Term or any Renewal Term, as applicable, the Service Recipient or the Service Provider may, in connection with the expiration of the Initial Term or the then-current Renewal Term, decline to renew this Agreement (a "**Non-Renewal**") if, with respect to Non-Renewal by the Service Recipient, the Non-Renewal is approved by a unanimous vote of the Disinterested Directors and subsequently approved by a seventy percent (70%) vote of the then outstanding Common Stock, excluding any Common Stock held by the Service Provider or its Affiliates, held no later than the expiration of the Term. |

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|:---|:---|
| 10.2.4.1 | Promptly following the aforementioned unanimous vote of the Disinterested Directors and prior to the distribution of the Service Recipient's proxy materials with respect to the aforementioned stockholder vote, the Service Recipient (i) shall notify the Service Provider of the applicable parties assisting with the printing and mailing of the Service Recipient's proxy materials no fewer than ten (10) days prior to the date of mailing and (ii) shall, and shall cause such applicable parties to, reasonably cooperate with the Service Provider for the printing and distribution, at the Service Provider's expense, of the Service Provider's proxy materials, and provided that Service Provider shall provide its final materials no later than one (1) day prior to such date of mailing, shall be mailed no later than the date on which the Service Recipient's proxy materials are mailed. |

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| 10.2.5 | Following a termination of this Agreement, the Service Provider will continue to be entitled to any fees earned prior to the termination,<u>provided</u>, that for purposes of calculating the Variable Fee with respect to the calendar quarter in which the termination occurs, the Quarter-End Price will be based on the volume-weighted average trading price for the fifteen (15) Trading Days ending on the date of termination of this Agreement (rather than the volume-weighted average trading price for the fifteen (15) Trading Days ending on the last Trading Day of such calendar quarter). |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 **Termination by the Service Provider**.

<br> 10.3.1 The Service Provider may in its discretion terminate this Agreement:

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| 10.3.1.1 | effective upon one hundred twenty (120) days' prior written notice of termination to the Service Recipient if the Service Recipient defaults in the performance or observance of any material term, condition or agreement contained in this Agreement in a manner that results in material harm to the Service Provider and such default continues for a period of one hundred twenty (120) days after written notice thereof specifying such default and requesting that the same be remedied in such one hundred twenty (120)-day period; or |

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| 10.3.1.2 | at any time if the Service Recipient makes a general assignment for the benefit of its creditors, institutes proceedings to be adjudicated voluntarily bankrupt, consents to the filing of a petition of bankruptcy against it, is adjudicated by a court of competent jurisdiction as being bankrupt or insolvent, seeks reorganization under any bankruptcy law or consents to the filing of a petition seeking such reorganization or has a decree entered against it by a court of competent jurisdiction appointing a receiver liquidator, trustee or assignee in bankruptcy or in insolvency. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 **Survival Upon Termination**. If this Agreement is terminated pursuant to this <u>Article 10</u>, such termination will be without any further liability or obligation of any
 party hereto, except as provided in <u>Section 6.3</u>, <u>Section 6.4</u>, <u>Section 7.5</u>, <u>Article 9</u>, <u>Section 10.2.5</u>, <u>Section 10.5</u>, <u>Section 10.6,</u> <u>Section 11.4</u>, <u>Section 11.9</u>, <u>Section 11.10</u>, <u>Section 11.11</u>, <u>Section 11.12</u>, and <u>Section 11.13</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 **Action Upon Termination**.

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| | |
|:---|:---|
| 10.5.1 | From and after the effective date of the termination of this Agreement, the Service Provider will not be entitled to receive the Base Fee or Variable Fee for further services under this Agreement, but will be paid all compensation accruing to and including the date of termination. Pursuant to <u>Section 10.2.5</u>, the final payment of the Variable Fee due after termination will be based on the volume-weighted average trading price of the Common Stock on the New York Stock Exchange for the fifteen (15) Trading Days ending on the termination date; |

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------

<br> 10.5.2 Upon any termination of this Agreement, the Service Provider will forthwith:

<br> 10.5.2.1 after deducting any accrued compensation and reimbursements to which it is then entitled, pay over to the Service Recipient all money collected and held for the account of the Service Recipient pursuant to this Agreement;

<br> 10.5.2.2 deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board; and

<br> 10.5.2.3 deliver to the Board all property and documents of the Service Recipient then in the custody of the Service Provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 **Release of Money or Other Property Upon Written Request**. The Service Provider hereby agrees that any money or other property of the Service Recipient or its Subsidiaries
 held by the Service Provider under this Agreement shall be held by the Service Provider as custodian for such Person, and the Service Provider's records shall be appropriately marked clearly to reflect the ownership of such money or other
 property by such Person. Upon the receipt by the Service Provider of a written request signed by a duly authorized representative of the Service Recipient requesting the Service Provider to release to the Service Recipient any money or
 other property then held by the Service Provider for the account of the Service Recipient under this Agreement, the Service Provider shall release such money or other property to the Service Recipient within a reasonable period of time,
 but in no event later than five (5) days following such request. The Service Provider shall not be liable to the Service Recipient, Board or any other Person for any acts performed or omissions to act by the Service Recipient in
 connection with the money or other property released to the Service Recipient in accordance with the second sentence of this <u>Section 10.6</u>. The Service Recipient shall indemnify and hold harmless the Service Provider and any of
 its Affiliates (and any directors, officers, agents, members, partners, shareholders and employees of the foregoing) against any and all Liabilities which arise in connection with the relevant member of the Service Provider's release of
 such money or other property to the Service Recipient in accordance with the terms of this <u>Section 10.6</u>. Indemnification pursuant to this provision shall be in addition to any right of such Persons to indemnification under <u>Section 9.1</u> hereof. For the avoidance of doubt, the provisions of this <u>Section 10.6</u> shall survive termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 **Pre-Renewal Consultations**. During the six (6) month period prior to the expiration of the Initial Term and each Renewal Term, at either party's request, the parties shall
 consult in good faith regarding opportunities to enhance the delivery of Services, historical investment performance during the then-current Initial Term or Renewal Term, and the pursuit of the Service Recipient's strategic objectives. 
 During the subsequent Renewal Term, the parties shall work in good faith and use commercially reasonable efforts to implement any mutually agreed upon measures to give effect to such objectives.

------

#### ARTICLE 11

#### GENERAL PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 **Assignment.** 

---

| | |
|:---|:---|
| 11.1.1 | **Generally**. |

---

---

| | |
|:---|:---|
| 11.1.1.1 | This Agreement shall not be assigned by the Service Provider without the prior written consent of the Service Recipient, except in the case of assignment by any of the Service Provider to an Affiliate or to a Person that is its successor by a statutory conversion, merger, consolidation or purchase of assets, in which case the Affiliate or successor shall be bound under this Agreement and by the terms of the assignment in the same manner as such of the Service Provider is bound under this Agreement. For the avoidance of doubt, any transaction that indirectly results in an "assignment" (as that term is defined under the Advisers Act) of this Agreement by Service Provider shall not be permitted without the prior written consent of Service Recipient. |

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---

| | |
|:---|:---|
| 11.1.1.2 | This Agreement shall not be assigned by the Service Recipient without the prior written consent of the Service Provider, except in the case of assignment by the Service Recipient to a Person that is its successor by merger, consolidation or purchase of assets, in which case the successor shall be bound under this Agreement and by the terms of the assignment in the same manner as the Service Recipient is bound under this Agreement. |

---

<br> 11.1.1.3 Any purported assignment of this Agreement in violation of this<u>Section 11.1.1</u> shall be null and void.

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| | |
|:---|:---|
| 11.1.2 | **Advisers Act**. Notwithstanding <u>Section 11.1.1</u>, this Agreement will not be assigned (within the meaning of the Advisers Act) by the Service Provider without the prior written consent of the Service Recipient. Any purported assignment of this Agreement in violation of this <u>Section 11.1.2</u> shall be null and void with respect to the Investment Advisory Services (and, for the avoidance of doubt, shall not affect the validity or enforceability of any other Service or provision hereof). |

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------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 **Certain Transactions**.

---

| | |
|:---|:---|
| 11.2.1 | In the event of a de-listing of the Common Stock from the New York Stock Exchange or any change of control, take-private transaction or other similar transaction that results, directly or indirectly, in the diminution or impairment of the Pershing Square Group's governance rights or consent rights (including by virtue of its voting power with respect to Service Recipient or any successor thereof and any rights under the Shareholder Agreement) or any rights under this Agreement, then the Service Recipient or such successor, the acquiror (if any), and, subject to<u>Section 10.2.2.5</u>, the Service Provider (and/or its applicable Affiliates) will promptly enter into such amendments or additional agreements as may be necessary to replicate, in all material respects, such governance, consent and other rights. |

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---

| | |
|:---|:---|
| 11.2.2 | In connection with any proposed "spin-off" transaction with respect to the Service Recipient or its Affiliates, the Board shall determine in good faith whether to cause the SpinCo to enter into a services agreement with the Service Provider on substantially similar terms as those set forth herein (a "**Successor Agreement**"). If so determined by the Board, the parties, acting reasonably and in good faith, considering all relevant factors, including the proportionate allocation of the Services and the Base Fee, shall endeavor to enter into a Successor Agreement concurrently with the completion of the spin-off transaction. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 **Inurement**. This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 **Notices**. Any notice or other communication required or permitted to be given hereunder will be in writing and will be deemed to have been duly given if delivered by
 prepaid first-class mail, by email or other means of electronic communication or by hand-delivery and addressed as follows:

<br> 11.4.1 if to the Company:

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| | |
|:---|:---|
|  | Howard Hughes Holdings Inc. |
|  | 9950 Woodloch Forest Drive, Suite 1100 |
|  | The Woodlands, Texas 77380 |
| Attention: | General Counsel |
| Email: | [email address]<br>|
|  | with a copy (which shall not constitute notice) to: |
|  | Hogan Lovells US LLP |
|  | Columbia Square |
|  | 555 Thirteenth St, NW |
|  | Washington, DC 20004 |

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------

---

| | |
|:---|:---|
| Attention: | David Bonser |
|  | John Beckman |
|  | Stacey McEvoy |
| Email: | [email address] |
|  | [email address] |
|  | [email address] |

---

---

| | |
|:---|:---|
|  | and |
|  | Morgan, Lewis & Bockius LLP |
|  | 2222 Market Street |
| Philadelphia, PA 19103 | Philadelphia, PA 19103 |

---

---

| | |
|:---|:---|
| Attention: | Justin W. Chairman |
|  | Richard B. Aldridge |
| Email: | [email address] |
|  | [email address] |

---

<br> 11.4.2 if to PSCM:

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| |
|:---|
| Pershing Square Capital Management, L.P. |
| 787 Eleventh Ave<br> New York, New York 10019<br> Attention: Chief Legal Officer<br> Email: legal@persq.com |
| with a copy (which shall not constitute notice) to: |
| Sullivan & Cromwell LLP<br> 125 Broad Street |

---

New York, New York 10004

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| | |
|:---|:---|
| Attention: | Scott D. Miller |
|  | Ken Li |
| Email: | [email address] |
|  | [email address] |

---

<br> 11.4.3 if to any new Service Provider appointed pursuant to <u>Section 2.2</u>, at the address listed in the joinder agreement executed by the new Service Provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 **Further Assurances**. Each of the parties hereto will promptly do, make, execute or deliver, or cause to be done, made, executed or delivered, all such further acts,
 documents and things as the other party hereto may reasonably require from time to time for the purpose of giving effect to this Agreement and will use reasonable efforts and take all such steps as may be reasonably within its power to
 implement to their full extent the provisions of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6 **Counterparts**. This Agreement may be executed in any number of counterparts, all of which shall be considered one and the same agreement and shall become effective when
 counterparts have been signed by each of the parties and delivered to the other party (including via email or other electronic transmission), it being understood that each party need not sign the same counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7 **Entire Agreement**. The Transaction Documents constitute the entire agreement of the parties and their Affiliates and supersede all prior and contemporaneous agreements,
 arrangements or understandings, whether written or oral, among the parties and their Affiliates with respect to the subject matter of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8 **Waiver, Amendment**. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions of this Agreement may be waived, only
 by a written instrument signed by the parties hereto or, in the case of a waiver, by the party hereto waiving compliance. No delay on the part of any party in exercising any right, power or privilege pursuant to this Agreement shall
 operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege pursuant to this Agreement, nor shall any single or partial exercise of any right, power or privilege pursuant to this Agreement,
 preclude any other or further exercise thereof or the exercise of any other right, power or privilege pursuant to this Agreement. The rights and remedies provided pursuant to this Agreement are cumulative and are not exclusive of any
 rights or remedies which any party otherwise may have at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9 **Certain Remedies**. The parties agree that irreparable damage would occur in the event that any provisions of this Agreement were not performed in accordance with their
 specific terms. It is accordingly agreed that each of the parties shall be entitled to an injunction or injunctions (without necessity of proving damages or posting a bond or other security) to prevent breaches of this Agreement, and to
 enforce specifically the terms and provisions of this Agreement, in addition to any other applicable remedies at law or equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.10 **Interpretation; Headings.** The parties hereto have participated jointly in negotiating and drafting this Agreement. In the event
 that an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of
 the authorship of any provision of this Agreement. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this
 Agreement. Unless the context otherwise requires, as used in this Agreement: (i) "or" shall mean "and/or"; (ii) "including" and its variants mean "including, without limitation" and its variants; (iii) words defined in the singular have
 the parallel meaning in the plural and vice versa; (iv) references to "written" or "in writing" include in visual electronic form; (v) words of one gender shall be construed to apply to each gender; and (vi) the terms "Article" and
 "Section" refer to the specified Article or Section of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.11 **Waiver of Jury Trial**. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES
 AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTIONS, SUITS, DEMAND LETTERS, JUDICIAL, ADMINISTRATIVE OR REGULATORY PROCEEDINGS, OR HEARINGS, NOTICES OF
 VIOLATION OR INVESTIGATIONS ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER AND (B) SUCH PARTY MAKES THIS WAIVER
 VOLUNTARILY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12 **Governing Law**. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK. EACH OF THE PARTIES HEREBY IRREVOCABLY
 SUBMITS TO THE JURISDICTION OF, AND VENUE IN, ANY STATE OR FEDERAL COURT LOCATED IN NEW YORK, NEW YORK AND WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.13 **Sequencing**. For the avoidance of doubt, the Board may approve and adopt any matter referred to herein that also requires approval of the Company's stockholders under the
 Delaware General Corporation Law prior to the Company obtaining the approval required herein; *provided*, that the Company may not permit such matter to
 occur until the approval required herein is obtained.

[SIGNATURE PAGE FOLLOWS]

------

IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed as of the date first set forth above.

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| | | |
|:---|:---|:---|
| HOWARD HUGHES HOLDINGS INC. | HOWARD HUGHES HOLDINGS INC. | HOWARD HUGHES HOLDINGS INC. |
| By: | /s/ David O'Reilly | /s/ David O'Reilly |
|  | Name: | David O'Reilly |
|  | Title: | Chief Executive Officer |
| PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. |
| By: | /s/ William A. Ackman | /s/ William A. Ackman |
|  | Name: | William A. Ackman |
|  | Title: | Chief Executive Officer |

---

[*SIGNATURE PAGE TO SERVICES AGREEMENT*]

------

#### Schedule A

#### JOINDER TO SERVICES AGREEMENT

THIS JOINDER to the Services Agreement dated as of [●], 2025 (this "**Joinder**"), is entered into by and between Pershing Square Capital Management, L.P. ("**PSCM**") and [●] (the "**New Service Provider**"). Capitalized terms used herein but not otherwise defined shall have the meanings set forth in the Services Agreement.

#### RECITALS:

WHEREAS, the Services Agreement provides that the Service Provider may, from time to time, appoint an Affiliate of PSCM to act as a new Service Provider under the Services Agreement;

WHEREAS, the New Service Provider is an Affiliate of PSCM; and

WHEREAS, the Service Provider wishes to appoint the New Service Provider to act as a new Service Provider under the Services Agreement and the New Service Provider wishes to accept such appointment.

**NOW THEREFORE** in consideration of good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the New Service Provider agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Agreement to be Bound.** The New Service Provider hereby agrees that upon execution of this Joinder, it shall become a party to the Services Agreement and acknowledges that it is fully bound by, and subject to, all of the covenants, representations, terms and conditions of this Joinder and of the Service Provider under the Services Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Successors, Assigns and Amendments.** Any purported assignment of this Joinder in violation of Section 11.1 of the Services Agreement will be null and void. No amendment or waiver of this Joinder will be binding unless executed in writing by both of the undersigned parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Inurement.** This Joinder will inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Notices.** Notices and other communications to the New Service Provider will be addressed as follows:

[●]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Counterparts.** This Joinder may be signed in counterparts and each of such counterparts will constitute an original document and such counterparts, taken together, will constitute one and the same instrument.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Governing Law.** This Joinder will be governed by and construed in accordance with the internal laws of the State of New York. Each of the parties hereby irrevocably submits to the jurisdiction of, and venue in, any state or federal court located in New York, New York and waives any objection based on forum non conveniens.

[NEXT PAGE IS THE SIGNATURE PAGE]

------

IN WITNESS WHEREOF the parties hereto have caused this Joinder to be executed as of the date first set forth above.

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| | |
|:---|:---|
| PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. |
| By: |  |
|  | Name: |
|  | Title: |
| [*New Service Provider*] | [*New Service Provider*] |
| By: |  |
|  | Name: |
|  | Title: |

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------

## Exhibit 10.19

------

#### Exhibit 10.19

#### SHAREHOLDER AGREEMENT

#### by and among

#### Howard Hughes Holdings Inc.,

#### Pershing Square Holdco, L.P.

#### and

#### Pershing Square Capital Management, L.P.

#### Dated as of May 5, 2025

------

#### **Table of Contents**

---

| | | |
|:---|:---|:---|
|  |  | Page |
| 1. | Definitions | 1 |
| 2. | Subscription Right | 4 |
| 3. | Board of Directors | 8 |
| 4. | Transfer Restrictions | 10 |
| 5. | Certain Actions | 10 |
| 6. | Notices | 12 |
| 7. | Assignment; Third Party Beneficiaries | 13 |
| 8. | Inurement | 13 |
| 9. | Prior Negotiations; Entire Agreement | 13 |
| 10. | Governing Law; Venue | 14 |
| 11. | Counterparts | 14 |
| 12. | Waivers and Amendments | 14 |
| 13. | Severability | 14 |
| 14. | Certain Remedies | 14 |
| 15. | Interpretation; Headings | 15 |
| 16. | Waiver of Jury Trial | 15 |
| 17. | Sequencing | 15 |

---

-i-

------

SHAREHOLDER AGREEMENT

This SHAREHOLDER AGREEMENT, dated as of May 5, 2025 (this "<u>Agreement</u>"), is entered into by and among Howard Hughes Holdings Inc. (the "<u>Company</u>"), Pershing Square Holdco, L.P. (the "<u>Purchaser</u>") and Pershing Square Capital Management, L.P. ("<u>PSCM</u>").

#### W I T N E S S E T H:

WHEREAS, the Company and the Purchaser have entered into that certain Share Purchase Agreement, dated as of the date hereof, by and between the Company and the Purchaser (the "<u>Share Purchase Agreement</u>"), pursuant to which the Purchaser will purchase certain shares of Common Stock from the Company on the terms and conditions set forth therein; and

WHEREAS, in connection with the transactions contemplated by the Share Purchase Agreement, the Company, the Purchaser and PSCM desire to enter into this Agreement concerning the Common Stock held, or to be held, by the Purchaser and related provisions concerning the Purchaser Group's relationship with, and investment in, the Company.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions.</u>

"<u>Additional Sales Period</u>" means, in the case of <u>Section 2(d)(i)</u>, the one hundred twenty (120) day period following the date of the Company's notice to each of the Purchaser and PSCM pursuant to <u>Section 2(b)</u>, and in the case of <u>Section 2(d)(ii)</u>, the one hundred twenty (120) day period following (i) the expiration of the one hundred twenty (120) day period specified in <u>Section 2(c)</u> or (ii) if earlier, the date on which it is finally determined that the applicable member of the Purchaser Group is unable to consummate such purchase contemplated by <u>Section 2(c)</u> within such one hundred twenty (120) day period specified in <u>Section 2(c)</u>.

"<u>Affiliate</u>" of any particular Person means any other Person controlling, controlled by or under common control with such particular Person. For the purposes of this definition, "<u>control</u>" means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities, contract or otherwise.

"<u>Agreement</u>" has the meaning assigned thereto in the Preamble.

"<u>Board</u>" means the Board of Directors of the Company.

"<u>Business Day</u>" means any day other than (i) a Saturday, (ii) a Sunday, or (iii) any day on which commercial banks in New York, New York are required or authorized to close by law or executive order.

"<u>Common Stock</u>" means the common stock of the Company, par value $0.01 per share.

------

"<u>Company</u>" has the meaning assigned thereto in the Preamble.

"<u>Company Benefit Plan</u>" means each "employee benefit plan" within the meaning of Section 3(3) of ERISA and each other stock purchase, stock option, restricted stock, severance, retention, employment, consulting, change-of-control, collective bargaining, bonus, incentive, deferred compensation, employee stock purchase plan, employee loan, fringe benefit and other benefit plan, agreement, program, policy, commitment or other arrangement, whether or not subject to ERISA (including any related funding mechanism now in effect or required in the future), whether formal or informal, oral or written, in each case sponsored or maintained by the Company or any of its Subsidiaries for the benefit of any past or present director, officer, employee, consultant or independent contractor of the Company or any of its Subsidiaries has any present or future right to benefits.

"<u>Disinterested Director</u>" means, with respect to any matter upon which the Board votes, a director of the Board who is not a party to the act or transaction and does not have a material interest in the act or transaction or a material relationship with a person that has a material interest in the act or transaction, as reasonably determined by the Board in good faith.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended.

"<u>Fully Diluted Basis</u>" means all outstanding shares of Common Stock, assuming the exercise of all outstanding Share Equivalents (other than any options or other stock incentives issued to an employee of the Company or its Subsidiaries pursuant to the terms of a Company Benefit Plan) without regard to any restrictions or conditions with respect to the exercisability of such Share Equivalents.

"<u>Governing Documents</u>" means, collectively, the Amended and Restated Certificate of Incorporation of the Company, adopted as of August 11, 2023 (as amended from time to time) and the Amended and Restated Bylaws of the Company, adopted as of August 11, 2023 (as amended from time to time).

"<u>Governmental Entity</u>" means any (i) nation, region, state, province, county, city, town, village, district or other jurisdiction, (ii) federal, state, local, municipal, foreign or other government, (iii) governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, court or tribunal, or other entity), (iv) multinational organization or body or (v) body entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature or any other self-regulatory organizations.

"<u>Indentures</u>" means, collectively, that certain (i) Indenture, dated as of March 16, 2017, by and between The Howard Hughes Corporation and Wells Fargo Bank, National Association, as trustee, (ii) Indenture, dated as of August 18, 2020, by and among The Howard Hughes Corporation, its Subsidiaries and Wells Fargo Bank, National Association, as trustee, (iii) Indenture dated as of February 2, 2021, by and among The Howard Hughes Corporation, its Subsidiaries and Wells Fargo Bank, National Association, as trustee, and (iv) Indenture, dated as of February 2, 2021, by and among The Howard Hughes Corporation, its Subsidiaries and Wells Fargo Bank, National Association, as trustee.

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"<u>Initial Public Offering</u>" means an initial public offering of equity securities that results in such securities being quoted or traded on a public stock market or exchange or a direct listing of such equity securities on such market or exchange.

"<u>Issuer</u>" has the meaning assigned thereto in <u>Section 5(a)</u>.

"<u>Laws</u>" means any statutes, laws (including common law), rules, ordinances, regulations, codes, orders, judgments, decisions, injunctions, writs, decrees, applicable to the (i) Company or any of its Subsidiaries or (ii) PSCM or its Affiliates, as applicable, or each of their respective properties or assets.

"<u>Person</u>" means an individual, a group (including a "group" under Section 13(d) of the Securities Exchange Act of 1934 as amended), a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a Governmental Entity or any department, agency or political subdivision thereof.

"<u>Proposed Securities</u>" has the meaning assigned thereto in <u>Section 2(a)</u>.

"<u>PSCM</u>" has the meaning assigned thereto in the Preamble.

"<u>Purchaser</u>" has the meaning assigned thereto in the Preamble.

"<u>Purchaser Board Designees</u>" has the meaning assigned thereto in <u>Section 3(a)</u>.

"<u>Purchaser Group</u>" means the Purchaser, PSCM and their respective Affiliates, including the investment funds managed by one or more Affiliates of the Purchaser (for the avoidance of doubt, including as of the date hereof Pershing Square Holdings, Ltd., Pershing Square International, Ltd. and Pershing Square, L.P.).

"<u>Registration Rights Agreement</u>" means that certain Registration Rights Agreement, dated as of May 5, 2025, by and between the Company and the Purchaser.

"<u>SEC</u>" means the U.S. Securities and Exchange Commission.

"<u>Services Agreement</u>" means that certain Services Agreement, dated as of May 5, 2025, by and between the Company and PSCM.

"<u>Share Equivalent</u>" means any stock, warrants, rights, calls, options or other securities exchangeable or exercisable for, or convertible into, shares of Common Stock.

"<u>Share Purchase Agreement</u>" has the meaning assigned thereto in the Recitals.

------

"<u>Standstill Agreement</u>" means that certain Standstill Agreement, dated as of May 5, 2025, by and between the Company and the Purchaser.

"<u>Subscription Right</u>" has the meaning assigned thereto in <u>Section 2(a)</u>.

"<u>Subsidiary</u>" means, with respect to a Person, (i) a corporation a majority of whose capital stock with voting power, under ordinary circumstances, to elect a majority of the directors is at the time, directly or indirectly, owned by such Person, by a Subsidiary of such Person, or by such Person and one or more Subsidiaries of such Person, (ii) a partnership in which such Person or a Subsidiary of such Person is, at the date of determination, a general partner of such partnership, (iii) a limited liability company of which such Person, or a Subsidiary of such Person, is a managing member or (iv) any other Person (other than a corporation) in which such Person, a Subsidiary of such Person or such Person and one or more Subsidiaries of such Person, directly or indirectly, at the date of determination thereof, has (x) at least a majority ownership interest or (y) the power to elect or direct the election of a majority of the directors or other governing body of such Person.

"<u>Transaction Documents</u>" means, individually or collectively, the Share Purchase Agreement, the Services Agreement, the Registration Rights Agreement, the Standstill Agreement and this Agreement, in each case, as any such agreement may be amended or restated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Subscription Right.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Sale of New Equity Securities</u>*. If the Company at any time or from time to time directly or indirectly issues or sells any shares of Common Stock (or Share Equivalents) (other than shares issued pursuant to any options or other stock incentives issued to an employee, director or consultant of the Company or its Subsidiaries pursuant to the terms of a Company Benefit Plan) (the "<u>Proposed Securities</u>"), the members of the Purchaser Group shall have the right to acquire from the Company at such time(s), for the same price (net of any underwriting discounts or sales commissions or any other discounts or fees if not purchasing from or through an underwriter, placement agent or broker) and on the same terms (or, in the case of the acquisition of another Person, business or assets by the Company or any of its Subsidiaries, whether by purchase of stock, merger, consolidation, purchase of all or substantially all of the assets of such Person or otherwise or to strategic partners or joint ventures in connection with a commercial relationship with the Company or its Subsidiaries, or to the parties in connection with them providing the Company or its Subsidiaries with loans, credit lines, cash price reductions or similar transactions, under arm's-length arrangements, at a price per share that shall be determined in good faith by a majority vote of the Disinterested Directors (or by a special committee comprised of Disinterested Directors), to reflect the per share value in the transaction) as such Proposed Securities are proposed to be offered to others, up to the amount of such Proposed Securities in the aggregate required to enable it to maintain its then aggregate proportionate Common Stock-equivalent interest in the Company on a Fully Diluted Basis determined in accordance with the following sentence, in each case, subject to such limitations as may be imposed by applicable Law or stock exchange rules (the "<u>Subscription Right</u>"). The aggregate amount of such Proposed Securities that the members of the Purchaser Group shall be entitled to purchase in the aggregate in any offering pursuant to the preceding sentence shall (subject to such limitations as may be imposed by applicable Law or stock exchange rules) be determined by multiplying (x) the total number of such offered shares of the Proposed Securities issued or sold to third parties by (y) a fraction, the numerator of which is the aggregate number of shares of Common Stock then held by the Purchaser Group on a Fully Diluted Basis as of the date of the Company's notice pursuant to <u>Section 2(b)</u> in respect of the issuance of such Proposed Securities, and the denominator of which is (i) the number of shares of Common Stock then outstanding on a Fully Diluted Basis *minus* (ii) the number of shares of Common Stock in the numerator of such fraction. For the avoidance of doubt, the actual amount of securities to be sold to the members of the Purchaser Group pursuant to their exercise of the Subscription Right hereunder shall be proportionally reduced if the aggregate amount of the Proposed Securities issued or sold to third parties is reduced. Any offers and sales pursuant to this <u>Section 2</u> may be conditioned upon reasonably acceptable and customary representations and warranties of each applicable member of the Purchaser Group designated pursuant to <u>Section 2(f)</u> regarding its status as the type of offeree to whom a private sale can be made (including if made concurrently with a registered public offering) in compliance with applicable securities Laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Notice</u>*. In the event the Company proposes to issue or sell the Proposed Securities, it shall give each of the Purchaser and PSCM, on behalf of the Purchaser Group, written notice of the Company's intention, describing the estimated price (or range of prices), anticipated amount of securities, timing and other terms upon which the Company proposes to offer the same (including, in the case of a registered public offering and to the extent possible, a copy of the prospectus included in the registration statement filed with respect to such offering), no later than five (5) Business Days after the commencement of marketing with respect to such offering or after the Company takes substantial steps to pursue any other offering. The applicable member of the Purchaser Group shall have until 5:00 p.m. Eastern Time on the fifth (5th) Business Day following the date of receipt of such a notice to notify the Company in writing that it intends to exercise the Subscription Right and as to the amount of the Proposed Securities such member of the Purchaser Group desires to purchase, up to the maximum amount calculated pursuant to <u>Section 2(a)</u>. In connection with an underwritten public offering, such notice shall constitute a non-binding indication of interest to purchase the Proposed Securities at such a range of prices as such member of the Purchaser Group may specify and, with respect to other offerings, such notice shall constitute a binding commitment of the applicable member of such Purchaser Group to purchase the amount of the Proposed Securities so specified at the price and other terms set forth in the Company's notice to each of the Purchaser and PSCM. The failure of such member of the Purchaser Group to so respond within such five (5) Business Day period shall be deemed to be a waiver of the applicable Subscription Right under this <u>Section 2</u> only with respect to the offering described in the applicable notice provided by the Company. In connection with an underwritten public offering or a private placement, the applicable member of the Purchaser Group shall further enter into an agreement (in form and substance customary for transactions of this type) to purchase the Proposed Securities to be acquired contemporaneously with the execution of any underwriting agreement or purchase agreement entered into with the Company, the underwriters or initial purchasers of such underwritten public offering or private placement, and, subject to <u>Section 2(g)</u>, the failure of such member of the Purchaser Group to enter into such an agreement at or prior to such time shall constitute a waiver of the Subscription Right in respect of such offering.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Purchase Mechanism</u>*. If a member of the Purchaser Group exercises its Subscription Right provided in this <u>Section 2</u>, the closing of the purchase of the Proposed Securities with respect to which such right has been exercised shall take place concurrently with the sale to the other investors in the applicable offering, which period of time for the closing of the purchase of the Proposed Securities with respect to which such right has been exercised shall be extended for a maximum of one hundred twenty (120) days in order to comply with applicable Laws (including receipt of any applicable regulatory or stockholder approvals). Each applicable member of the Purchaser Group shall use its reasonable best efforts to secure any regulatory or stockholder approvals or other consents, and to comply with any Law necessary in connection with the purchase of such Proposed Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Failure of Purchase</u>*. In the event (i) the applicable member of the Purchaser Group fails to exercise its Subscription Right provided in this <u>Section 2</u> within the five (5) Business Day period, or (ii) if so exercised, such member of the Purchaser Group fails or is unable to consummate such purchase within the one hundred twenty (120) day period specified in <u>Section 2(c)</u>, without prejudice to other remedies, the Company shall thereafter be entitled during the Additional Sales Period to sell the Proposed Securities not elected to be purchased pursuant to this <u>Section 2</u> or which the applicable member of the Purchaser Group fails to (or is unable to) purchase, at a price and upon terms no more favorable in any material respect to the purchasers of such securities than were specified in the Company's notice to each of the Purchaser and PSCM. In the event the Company has not sold the Proposed Securities within the Additional Sales Period, the Company shall not thereafter offer, issue or sell such Proposed Securities without first offering such securities to the members of the Purchaser Group in the manner provided above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Non-Cash Consideration</u>*. In the case of the offering of securities for a consideration in whole or in part other than cash, including securities acquired in exchange therefor (other than securities by their terms so exchangeable), the consideration other than cash shall be deemed to be the fair value (in cash) thereof as determined by a majority vote of the Disinterested Directors; <u>provided</u>, <u>however</u>, that such fair value as determined by the Board shall not exceed the aggregate market price of the securities being offered as of the date the Board authorizes the offering of such securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Allocation Among Purchaser Group</u>*. The Purchaser has the right (including indirectly through PSCM as the attorney-in-fact and/or investment manager of each member of the Purchaser Group other than the Purchaser) to exercise all of the rights of the members of the Purchaser Group hereunder and designate the members of such Purchaser Group to receive any securities to be issued, and the Company may rely on any designations made by the Purchaser. As a condition to the Company's obligations with respect to the exercise of a Subscription Right by a member of the Purchaser Group not a party to this Agreement, the Purchaser shall cause such member to agree to perform each obligation applicable to it under this <u>Section 2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *<u>General</u>*. Notwithstanding anything herein to the contrary (including, for the avoidance of doubt, <u>Section 2(b)</u>):

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(i) if (A) a member of the Purchaser Group exercises its Subscription Right pursuant to this<u>Section 2</u> and is unable to complete the purchase of the Proposed Securities concurrently with the sales to the other investors in the applicable offering as contemplated by <u>Section 2(c)</u> due to applicable regulatory or stockholder approvals and (B) the Company or the Board determines in good faith that any delay in completion of an offering in respect of which such member of the Purchaser Group is entitled to exercise its Subscription Right would materially impair the financing objective of such offering, the Company may proceed with such offering without the participation of such member of the Purchaser Group in such offering, in which event the Company and such member of the Purchaser Group shall promptly thereafter agree on a process otherwise consistent with this <u>Section 2</u> as would allow such member of the Purchaser Group to purchase, at the same price (net of any underwriting discounts or sales commissions or any other discounts or fees if not purchasing from or through an underwriter, placement agent or broker) as in such offering, up to the amount of shares of Common Stock (or Share Equivalents) as shall be necessary to enable the Purchaser Group to maintain its aggregate proportionate Common Stock-equivalent interest in the Company on a Fully Diluted Basis;

(ii) if the Company or the Board determines in good faith that compliance with the notice provisions in<u>Section 2(b)</u> would materially impair the financing objective of an offering in respect of which the members of the Purchaser Group are entitled to exercise Subscription Rights, the Company shall be permitted (by notice to the Purchaser) to reduce the notice period required under <u>Section 2(b)</u> (but not to less than one (1) Business Day) to the minimum extent required to meet the financing objective of such offering, and the members of the Purchaser Group shall have the right to either (A) exercise their Subscription Rights during the shortened notice periods specified in such notice or (B) require the Company to promptly thereafter agree on a process otherwise consistent with this <u>Section 2</u> as would allow the applicable members of the Purchaser Group to purchase, at the same price (net of any underwriting discounts or sales commissions or any other discounts or fees if not purchasing from or through an underwriter, placement agent or broker) as in such offering, up to the amount of shares of Common Stock (or Share Equivalents) as shall be necessary to enable the Purchaser Group to maintain its aggregate proportionate Common Stock-equivalent interest in the Company on a Fully Diluted Basis; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the event the Company is unable to issue shares of Common Stock (or Share Equivalents) to the Purchaser Group as a result of a failure to receive regulatory or stockholder approval therefor, the Company
 shall take such action or cause to be taken such other action in order to place the Purchaser Group, in so far as reasonably practicable (subject to any limitations that may be imposed by applicable Law or stock exchange rules), in the same
 position in all material respects as if the applicable member of the Purchaser Group was able to effectively exercise its Subscription Right hereunder, including, without limitation, at the option of such member, issuing to such member of the
 Purchaser Group another class of securities of the Company having terms to be agreed by the Company and such member having a value at least equal to the value per share of Common Stock, in each case, as shall be necessary to enable the
 Purchaser Group to maintain its aggregate proportionate Common Stock-equivalent interest in the Company on a Fully Diluted Basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>Cooperation</u>*. The Company and each applicable member of the Purchaser Group shall (i) cooperate in good faith to facilitate the exercise of such member of the Purchaser Group's Subscription Right hereunder and (ii) use its respective reasonable best efforts to secure any required approvals or consents (including regulatory or stockholder approvals or other consents) and to comply with any Law necessary in connection with the exercise of such member's Subscription Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Termination</u>*. This <u>Section 2</u> shall terminate at such time as the Purchaser Group collectively beneficially owns (directly or indirectly) less than 5% of the outstanding shares of Common Stock on a Fully Diluted Basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Board of Directors.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Immediately following the effective time of the Closing (as defined in the Share Purchase Agreement), the Board will have eleven (11) members and will be comprised of the members set forth on <u>Schedule A</u>, and William A. Ackman will be appointed the Executive Chairman of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company agrees that, with respect to any annual meeting or special meeting of stockholders of the Company at which directors are to be elected to the Board, the Company shall:

(i) so long as the Purchaser Group beneficially owns (directly or indirectly) in the aggregate at least 17.5% of the shares of Common Stock on a Fully Diluted Basis, nominate for election a number of persons designated by Purchaser (such designees from time to time, the "<u>Purchaser Board Designees</u>") equal to 25% of the total number of members of the Board as constituted after giving effect to such election, rounded up to the nearest integer (*e.g.*, three (3) Purchaser Board Designees in the case of an eleven (11) member Board); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) so long as the Purchaser Group beneficially owns (directly or indirectly) in the aggregate at least 10% (but less than 17.5%) of the shares of Common Stock on a Fully Diluted Basis, nominate for election a
 number of Purchaser Board Designees equal to 10% of the total number of members of the Board as constituted after giving effect to such election, rounded up to the nearest integer (*e.g.*, two 2
 Purchaser Board Designees in the case of an eleven (11) member Board).

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For the avoidance of doubt, at and following such time as the Purchaser Group beneficially owns (directly or indirectly) in the aggregate less than 10% of the shares of Common Stock on a Fully Diluted Basis, the Purchaser shall no longer have the right to nominate Purchaser Board Designees for election to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall nominate the Purchaser Board Designees as part of its slate of directors and use its reasonable best efforts (i) to have the Purchaser Board Designees be elected to the Board (including through the solicitation of proxies for such person to the same extent as it does for any of its other nominees to the Board) subject to applicable Law and stock exchange rules (<u>provided</u> that the Purchaser Board Designees need not be "independent" under the applicable rules of the applicable stock exchange or the SEC) and (ii) so long as the Purchaser Group beneficially owns (directly or indirectly) in the aggregate at least 17.5% of the shares of Common Stock on a Fully Diluted Basis, cause William A. Ackman to be designated as Executive Chairman of the Board so long as he is willing and able to serve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to applicable Law and stock exchange rules, there shall be proportional representation by the Purchaser Board Designees on any committee of the Board, except for special committees established for potential conflict of interest situations, and except that only those Purchaser Board Designees that qualify under the applicable rules of the applicable stock exchange or the SEC may serve on committees where such qualification is required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If at any time the number of Purchaser Board Designees serving on the Board exceeds the number of Purchaser Board Designees that the Purchaser is then otherwise entitled to designate as a result of a decrease in the percentage of shares of Common Stock beneficially owned (directly or indirectly) by the Purchaser Group on a Fully Diluted Basis, the Purchaser shall use commercially reasonable efforts to cause any such additional Purchaser Board Designees to resign such that the number of Purchaser Board Designees serving on the Board after giving effect to such resignation does not exceed the number of Purchaser Board Designees that the Purchaser is entitled to designate for election to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except with respect to the resignation of a Purchaser Board Designee pursuant to <u>Section 3(e)</u>, (i) the Purchaser shall have the power to designate a Purchaser Board Designee's replacement upon the death, resignation, retirement, disqualification or removal from office of such Purchaser Board Designee and (ii) the Board shall promptly take all action reasonably required to fill any vacancy resulting therefrom with such replacement Purchaser Board Designee (including nominating such person, subject to applicable Law, to serve on the Board and causing the Company to use all reasonable efforts to have such person elected as a director of the Company and solicit proxies for such person to the same extent as it does for any of the Company's other nominees to the Board).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (i) The Purchaser Board Designees (A) shall be entitled to the same indemnification in connection with their role as a director as the other members of the Board, (B) to the extent the Purchaser Board Designees consist of officers or employees of the Purchaser or an Affiliate of the Purchaser (which, for the avoidance of doubt, shall not include directors of the Purchaser or an Affiliate of the Purchaser that are not officers or employees of the Purchaser or an Affiliate of the Purchaser), shall not be entitled to any compensation under the Company's director compensation program and (C) shall be entitled to reimbursement for documented, reasonable out-of-pocket expenses incurred in attending meetings of the Board or any committees thereof, to the same extent as other members of the Board, and (ii) the Company shall, in accordance with the Governing Documents, (A) notify each Purchaser Board Designee of all regular and special meetings of the Board and shall notify each Purchaser Board Designee of all regular and special meetings of any committee of the Board of which such Purchaser Board Designee is a member and (B) provide each Purchaser Board Designee with copies of all notices, minutes, consents and other materials provided to all other members of the Board concurrently as such materials are provided to the other members (except, for the avoidance of doubt, as are provided to members of committees of which such Purchaser Board Designee is not a member).

The Purchaser Board Designee candidates shall be subject to such reasonable and customary eligibility criteria as applied in good faith by the nominating, corporate governance or similar committee of the Board to other candidates for the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company hereby acknowledges and agrees that each Purchaser Board Designee is a representative of the Purchaser Group on the Board and is permitted to share information obtained in the course of such person's service on the Board with Purchaser Group, subject to the execution of a customary non-disclosure agreement between the Company and PSCM; <u>provided</u>, <u>however</u>, that a Purchaser Board Designee may not share any such information with third parties in violation of a policy applicable to the Board or any specific resolution of the Board. For the avoidance of doubt, the foregoing shall not relieve Purchaser Group of any obligations to comply with a contractual obligation or applicable securities Law restrictions on the use of material non-public information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All subsequent appointments of the Executive Chairman, other than as provided for in <u>Section 3(c)</u>, shall be made by the Board (which, for the avoidance of doubt, shall include the Purchaser Board Designees).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) With respect to communications with the public, the Executive Chairman shall be entitled to speak for the Company on behalf of the Board to the same extent the CEO may speak for the Company on behalf of management. The Company's Corporate Governance Guidelines and other applicable policies shall reflect the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Transfer Restrictions</u>. For the avoidance of doubt, neither the Purchaser Group's Subscription Right pursuant to <u>Section 2</u> nor the Purchaser's right to designate for nomination the Purchaser Board Designees pursuant to <u>Section 3</u> may be transferred or assigned to a Person that is not a member of the Purchaser Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Certain Actions.</u>

 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Effective if and when the Purchaser, any successor thereto or any vehicle formed for the purpose of engaging in an Initial Public Offering of interests in the Purchaser or its successor (the "<u>Issuer</u>") publicly files a registration statement on Form S-1 for an Initial Public Offering, without the prior written consent of the Purchaser (not to be unreasonably withheld, conditioned, or delayed), the Company and its Subsidiaries shall not:

(i) acquire or dispose any shares or similar equity interests, instruments convertible into or exchangeable for shares or similar equity interests, assets, business or operations that, taken as a whole, would exceed any of the conditions of significance in the definition of "significant subsidiary" at the thirty percent (30%) level under the total asset test as set forth in Rule 3-05 of Regulation S-X under the Securities Act;

(ii) incur, assume, guarantee, refinance, be allocated or become obligated with respect to any third-party indebtedness (including by issuance of debt securities of the Company or any Subsidiary) if, immediately following such incurrence, the Company's Indebtedness to Consolidated Tangible Net Worth Ratio (as defined in the Indentures in effect as of the date hereof) would exceed 2.5;

(iii) materially change the business of the Company and its Subsidiaries, taken as a whole, in a manner that would constitute a significant departure from the Company's intended strategy of acquiring controlling interests in private and public operating companies and becoming a diversified holding company;

(iv) provided that the Services Agreement remains in effect and has not been terminated in accordance with its terms, cause or permit the appointment, removal or replacement of the Chief Investment Officer of the Company, or amend, modify or alter the scope of the authority, duties or responsibilities of the Executive Chairman or the Chief Investment Officer; or

<br> (v) authorize, agree or commit to do any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The consent rights set forth in <u>Section 5(a)</u> shall be suspended if, following the above-referenced public filing of a registration statement on Form S-1, (i) the Issuer has withdrawn such registration statement prior to the completion of an Initial Public Offering (and has not refiled such registration statement) or (ii) the Issuer completes an Initial Public Offering but subsequently ceases to be a publicly traded company and is not an "investment company" as defined in the Investment Company Act of 1940, as amended (as determined by Purchaser in its sole discretion). Notwithstanding any such suspension pursuant to this <u>Section 5(b)</u>, Purchaser shall be entitled to exercise the consent rights set forth in <u>Section 5(a)</u> once again if the Issuer subsequently files a new registration statement on Form S-1 for an Initial Public Offering (and for the avoidance of doubt, this <u>Section 5(b)</u> shall also remain in effect). The consent rights set forth in <u>Section 5(a)</u> shall terminate when the Purchaser Group no longer beneficially owns (directly or indirectly) in the aggregate at least 17.5% of the shares of Common Stock on a Fully Diluted Basis.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The parties acknowledge and agree that the Company may obtain any consent required by <u>Section 5(a)</u> by sending written notice (email being sufficient), which shall include the request and reasonable explanation therefor, to the Purchaser in accordance with <u>Section 6</u>. The Purchaser shall promptly respond in writing to any such written notice. If the Purchaser fails to respond in writing to any such written notice within six (6) Business Days of receiving such written notice, the Purchaser shall be deemed to have consented to such matters set forth in the notice for all purposes under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Notices</u>. Any notice or other communication required or permitted to be given hereunder will be in writing and will be deemed to have been duly given if delivered by prepaid first-class mail, by email or other means of electronic communication or by hand-delivery and addressed as follows:

If to the Purchaser or PSCM, to:

Pershing Square Capital Management, L.P.

787 Eleventh Ave

New York, New York 10019

Attention: Chief Legal Officer

Email: legal@persq.com

with a copy (which shall not constitute notice) to:

Sullivan & Cromwell LLP

125 Broad Street

New York, New York 10004

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| | |
|:---|:---|
| Attention: | Scott D. Miller |
|  | Ken Li |
| Email: | [email address] |
|  | [email address] |

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If to the Company, to:

Howard Hughes Holdings Inc.

9950 Woodloch Forest Drive, Suite 1100

The Woodlands, Texas 77380

Attention: General Counel <br> Email: [email address]

with copies (which shall not constitute notice) to:

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Hogan Lovells US LLP

Columbia Square

555 Thirteenth St, NW

Washington, DC 20004

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| | |
|:---|:---|
| Attention: | David Bonser |
|  | John Beckman |
|  | Stacey McEvoy |
| Email: | [email address] |
|  | [email address] |
|  | [email address] |

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and

Morgan, Lewis & Bockius LLP

2222 Market Street

Philadelphia, PA 19103

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| | |
|:---|:---|
| Attention: | Justin W. Chairman |
|  | Richard B. Aldridge |
| Email: | [email address] |
|  | [email address] |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Assignment; Third Party Beneficiaries</u>. Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned by any party without the prior written consent of the other party. Notwithstanding the preceding sentence, each of the Purchaser and PSCM shall be permitted to assign or transfer, in whole or in part, this Agreement and/or its rights, interests or obligations hereunder to one or more members of the Purchaser Group. Notwithstanding the foregoing or any other provisions herein, no such assignment shall relieve the Purchaser or PSCM of its obligations hereunder if such assignee fails to perform such obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Inurement</u>. This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Prior Negotiations; Entire Agreement</u>. The Transaction Documents constitute the entire agreement of the parties and supersede all prior and contemporaneous agreements, arrangements or understandings, whether written or oral, among the parties with respect to the subject matter of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Governing Law; Venue</u>. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE. EACH OF THE PARTIES HEREBY AGREES THAT ANY SUIT, ACTION OR PROCEEDING SEEKING TO ENFORCE ANY PROVISION OF, OR BASED ON ANY MATTER ARISING OUT OF OR IN CONNECTION WITH, THIS AGREEMENT (WHETHER BROUGHT BY ANY PARTY OR ANY OF ITS AFFILIATES OR AGAINST ANY PARTY OR ANY OF ITS AFFILIATES) SHALL BE BROUGHT IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE (OR IN THE EVENT, BUT ONLY IN THE EVENT, THAT SUCH COURT DOES NOT HAVE SUBJECT MATTER JURISDICTION OVER SUCH ACTION OR PROCEEDING, THE SUPERIOR COURT OF THE STATE OF DELAWARE (COMPLEX COMMERCIAL DIVISION) OR, IF SUBJECT MATTER JURISDICTION OVER THE ACTION OR PROCEEDING IS VESTED EXCLUSIVELY IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA, THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE) AND EACH OF THE PARTIES IRREVOCABLY SUBMITS TO THE JURISDICTION OF, AND VENUE IN, SUCH COURTS AND WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other party (including via email or other electronic transmission), it being understood that each party need not sign the same counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Waivers and Amendments</u>. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions of this Agreement may be waived, only by a written instrument signed by the Company, the Purchaser and PSCM or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party in exercising any right, power or privilege pursuant to this Agreement shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege pursuant to this Agreement, nor shall any single or partial exercise of any right, power or privilege pursuant to this Agreement, preclude any other or further exercise thereof or the exercise of any other right, power or privilege pursuant to this Agreement. The rights and remedies provided pursuant to this Agreement are cumulative and are not exclusive of any rights or remedies which any party otherwise may have at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Severability</u>. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any person or entity or any circumstance, is found to be invalid or unenforceable in any jurisdiction, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other persons, entities or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Certain Remedies</u>. The parties agree that irreparable damage would occur in the event that any provisions of this Agreement were not performed in accordance with their specific terms. It is accordingly agreed that each of the parties shall be entitled to an injunction or injunctions (without necessity of proving damages or posting a bond or other security) to prevent breaches of this Agreement, and to enforce specifically the terms and provisions of this Agreement, in addition to any other applicable remedies at law or equity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Interpretation; Headings</u>. The parties hereto have participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

Unless the context otherwise requires, as used in this Agreement: (i) "or" shall mean "and/or"; (ii) "including" and its variants mean "including, without limitation" and its variants; (iii) words defined in the singular have the parallel meaning in the plural and vice versa; (iv) references to "written" or "in writing" include in visual electronic form; (v) words of one gender shall be construed to apply to each gender; and (vi) the term "Section" refers to the specified Section of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Waiver of Jury Trial</u>. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTIONS, SUITS, DEMAND LETTERS, JUDICIAL, ADMINISTRATIVE OR REGULATORY PROCEEDINGS, OR HEARINGS, NOTICES OF VIOLATION OR INVESTIGATIONS ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER AND (B) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Sequencing</u>. For the avoidance of doubt, the Board may approve and adopt any matter referred to herein that also requires approval of the Company's stockholders under the Delaware General Corporation Law prior to the Company obtaining the approval required herein; provided, that the Company may not permit such matter to occur until the approval required herein is obtained.

[*Signature Page Follows*]

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IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed as of the date first set forth above.

---

| | | |
|:---|:---|:---|
| HOWARD HUGHES HOLDINGS INC. | HOWARD HUGHES HOLDINGS INC. | HOWARD HUGHES HOLDINGS INC. |
| By: | /s/ David O'Reilly | /s/ David O'Reilly |
|  | Name: | David O'Reilly |
|  | Title: | Chief Executive Officer |
| PERSHING SQUARE HOLDCO, L.P. | PERSHING SQUARE HOLDCO, L.P. | PERSHING SQUARE HOLDCO, L.P. |
| By: | /s/ William A. Ackman | /s/ William A. Ackman |
|  | Name: | William A. Ackman |
|  | Title: | Chief Executive Officer |
| PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. |
| By: | /s/ William A. Ackman | /s/ William A. Ackman |
|  | Name: | William A. Ackman |
|  | Title: | Chief Executive Officer |

---

[*SIGNATURE PAGE TO SHAREHOLDER AGREEMENT*]

------

#### Schedule A

1. William A. Ackman\*

2. Ben Hakim\*

3. Ryan Israel\*

4. David O'Reilly

5. Scot Sellers

6. David Eun

7. Beth Kaplan

8. Steven Shepsman

9. Mary Ann Tighe

10. Anthony Williams

11. Jean-Baptiste Wautier

\* Purchaser Board Designee

------

## Exhibit 10.20

------

#### Exhibit 10.20

#### STANDSTILL AGREEMENT

#### by and between

#### Howard Hughes Holdings Inc.

#### and

#### Pershing Square Holdco, L.P.

#### Dated as of May 5, 2025

#### <br>

------

#### **TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| ARTICLE I DEFINITIONS | ARTICLE I DEFINITIONS | 1 |
| SECTION 1.1 | Defined Terms | 1 |
| ARTICLE II COMPANY RELATED PRINCIPLES | ARTICLE II COMPANY RELATED PRINCIPLES | 6 |
| SECTION 2.1 | Board of Directors | 6 |
| SECTION 2.2 | Voting | 7 |
| SECTION 2.3 | Related Party Transactions | 8 |
| SECTION 2.4 | No Other Voting Restrictions | 8 |
| ARTICLE III INVESTOR RELATED COVENANTS | ARTICLE III INVESTOR RELATED COVENANTS | 8 |
| SECTION 3.1 | Ownership Limitations. | 8 |
| SECTION 3.2 | Transfer Restrictions | 9 |
| SECTION 3.3 | Purchaser Board Designees | 11 |
| ARTICLE IV TERMINATION | ARTICLE IV TERMINATION | 12 |
| SECTION 4.1 | Termination of Agreement | 12 |
| SECTION 4.2 | Procedure upon Termination | 12 |
| SECTION 4.3 | Effect of Termination | 12 |
| ARTICLE V MISCELLANEOUS | ARTICLE V MISCELLANEOUS | 13 |
| SECTION 5.1 | Notices | 13 |
| SECTION 5.2 | Assignment; No Third Party Beneficiaries | 14 |
| SECTION 5.3 | Prior Negotiations; Entire Agreement | 14 |
| SECTION 5.4 | Governing Law; Venue | 14 |
| SECTION 5.5 | Counterparts | 14 |
| SECTION 5.6 | Expenses | 15 |
| SECTION 5.7 | Waivers and Amendments | 15 |
| SECTION 5.8 | Construction | 15 |
| SECTION 5.9 | Severability | 15 |
| SECTION 5.10 | Equitable Relief | 16 |
| SECTION 5.11 | Successor Securities | 16 |
| SECTION 5.12 | Inurement | 16 |
| SECTION 5.13 | Voting Procedures | 16 |
| SECTION 5.14 | Waiver of Jury Trial | 16 |
| SECTION 5.15 | Sequencing | 16 |

---

i

------

#### STANDSTILL AGREEMENT

This Standstill Agreement (this "<u>Agreement</u>") is dated as of May 5, 2025 (the "<u>Effective Date</u>"), by and between Howard Hughes Holdings Inc., a Delaware corporation (the "<u>Company</u>") and Pershing Square Holdco, L.P. ("<u>Investor</u>").

WHEREAS, Investor has entered into that certain Share Purchase Agreement, effective as of the date hereof (the "<u>Share Purchase Agreement</u>"), that contemplates, among other things, the purchase by Investor of shares of Common Stock subject to the terms and conditions contained therein;

WHEREAS, in connection with the consummation of the transactions contemplated by the Share Purchase Agreement, the Company and Investor have agreed to execute this Agreement.

NOW THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

#### ARTICLE I

#### DEFINITIONS

SECTION 1.1 <u>Defined Terms</u>. For purposes of this Agreement, the following terms, when used in this Agreement with initial capital letters, shall have the respective meanings set forth in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Affiliate</u>" of any particular Person means any other Person controlling, controlled by or under common control with such particular Person. For the purposes of this Agreement, "control" means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities, contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Agreement</u>" has the meaning assigned thereto in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Beneficial Ownership</u>" by a Person (the "<u>Beneficial Owner</u>") of any securities means "beneficial ownership" as used for purposes of Rule 13d-3 adopted by the SEC under the Exchange Act; <u>provided</u>, <u>however</u>, to the extent the term "Beneficial Ownership" is used in connection with any obligation on the part of an Investor Party to vote, or direct the vote, of shares of Common Stock, "Beneficial Ownership" by a Person of any securities shall be deemed to refer solely to those securities with respect to which such Person possesses the power to vote or direct the vote. The term "<u>Beneficially Own</u>" shall have a correlative meaning. For avoidance of doubt, for purposes of this Agreement shares of Common Stock held by an Investor Investment Advisor shall not be deemed to be Beneficially Owned by Investor or the Investor Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Board</u>" means the Board of Directors of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Change of Control</u>" means any transaction involving (i) a Merger Transaction, (ii) a sale of all or substantially all of the assets of the Company and its Subsidiaries (determined on a consolidated basis), in one transaction or series of related transactions, or (iii) the consolidation, merger, amalgamation, reorganization of the Company or a similar transaction in which the Company is combined with another Person, unless shares of Common Stock held by holders who are not affiliated with the Company or any entity acquiring the Company remain unchanged or are exchanged for, converted into or constitute solely (except to the extent of applicable appraisal rights or cash received in lieu of fractional shares) the right to receive as consideration Public Stock and the Persons or Group who Beneficially Own the outstanding Common Stock of the Company immediately before consummation of the transaction Beneficially Own more than fifty percent (50%) (by voting power) of the outstanding voting stock of the combined or surviving entity or new parent immediately thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Charter</u>" means the Amended and Restated Certificate of Incorporation of the Company as the same may be amended and/or restated from time to time in accordance therewith and applicable Law and the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Common Stock</u>" means the common stock, par value $0.01 per share, of the Company, as authorized by the Charter, and any successor security as provided by <u>Section 5.11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Company</u>" has the meaning assigned thereto in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Company Benefit Plan</u>" means each "employee benefit plan" within the meaning of Section 3(3) of ERISA and each other stock purchase, stock option, restricted stock, severance, retention, employment, consulting, change-of-control, collective bargaining, bonus, incentive, deferred compensation, employee stock purchase plan, employee loan, fringe benefit and other benefit plan, agreement, program, policy, commitment or other arrangement, whether or not subject to ERISA (including any related funding mechanism now in effect or required in the future), whether formal or informal, oral or written, in each case sponsored or maintained by the Company or any of its Subsidiaries for the benefit of any past or present director, officer, employee, consultant or independent contractor of the Company or any of its Subsidiaries who has any present or future right to benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Company Transaction</u>" has the meaning assigned thereto in <u>Section 2.3(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Disinterested Director</u>" means, with respect to any matter upon which the Board votes, a director of the Board who is not a party to the act or transaction and does not have a material interest in the act or transaction or a material relationship with a person that has a material interest in the act or transaction, as reasonably determined by the Board in good faith.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Economic Ownership</u>" by a Person of any securities includes ownership by any Person who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has (i) "beneficial ownership" as defined in Rule 13d-3 adopted by the SEC under the Exchange Act or (ii) economic interest in such security as a result of any cash-settled total return swap transaction or any other swap, other derivative or "synthetic" ownership arrangement (in which case the number of securities with respect to which such Person has Economic Ownership shall be determined by the Company in it reasonable judgment based on such Person's equivalent net long position); <u>provided</u>, <u>however</u>, that for purposes of determining Economic Ownership, a Person shall be deemed to be the Economic Owner of any securities which may be acquired by such Person pursuant to any agreement, arrangement or understanding or upon the exercise of conversion rights, exchange rights, warrants or options, or otherwise (irrespective of whether the right to acquire such securities is exercisable immediately or only after the giving of notice or the passage of time, including the giving of notice or the passage of time in excess of sixty (60) days, the satisfaction of any conditions, the occurrence of any event or any combination of the foregoing), in each case, without duplication of any securities included pursuant to sub-clauses (i) or (ii) above. For purposes of this Agreement, a Person shall be deemed to be the Economic Owner of any securities Economically Owned by any Group of which such Person is or becomes a member. The term "<u>Economically Own</u>" shall have a correlative meaning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Effective Date</u>" has the meaning assigned thereto in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, or any successor federal statute, and the rules and regulations of the SEC promulgated thereunder, all as the same may be amended and shall be in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>Fair Market Value</u>" means, with respect to each share of Public Stock, the average of the daily volume weighted average prices per share of such Public Stock for the ten (10) consecutive trading days immediately preceding the day as of which Fair Market Value is being determined, as reported on the New York Stock Exchange, or if such shares are not listed on the New York Stock Exchange, as reported by the principal U.S. national or regional securities exchange or quotation system on which such shares are then listed or quoted; <u>provided</u>, <u>however</u>, that in the absence of such listing or quotations, the Fair Market Value of such shares shall be the fair market value per share as determined by an Independent Financial Expert appointed for such purpose, using one or more valuation methods that the Independent Financial Expert in its professional judgment determines to be most appropriate, assuming such shares are fully distributed and are to be sold in an arm's-length transaction and there was no compulsion on the part of any party to such sale to buy or sell and taking into account all relevant factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "<u>Fully Diluted Basis</u>" means all outstanding shares of Common Stock, assuming the exercise of all outstanding Share Equivalents (other than any options or other stock incentives issued to an employee of the Company or its Subsidiaries pursuant to the terms of a Company Benefit Plan) without regard to any restrictions or conditions with respect to the exercisability of such Share Equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "<u>Governmental Entity</u>" means any (i) nation, region, state, province, county, city, town, village, district or other jurisdiction, (ii) federal, state, local, municipal, foreign or other government, (iii) governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, court or tribunal, or other entity), (iv) multinational organization or body or (v) body entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature or any other self-regulatory organizations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "<u>Group</u>" has the meaning assigned to it in Section 13(d)(3) of the Exchange Act and Rule 13d-5 thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "<u>Independent Directors</u>" has the meaning assigned thereto in <u>Section 2.1(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "<u>Independent Financial Expert</u>" means a nationally recognized financial advisory firm approved by a majority of the Disinterested Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "<u>Investor</u>" has the meaning assigned thereto in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Investor Investment Advisor</u>" means any independently operated business unit of any Affiliate of Investor that holds shares of Common Stock (i) in trust for the benefit of persons other than any Investor Party, (ii) in mutual funds, open- or closed-end investment funds or other pooled investment vehicles sponsored, managed or advised or subadvised by such Investor Investment Advisor, (iii) as agent and not principal, or (iv) in any other case where such Investor Investment Advisor is disaggregated from Investor for the purposes of Section 13(d) of the Exchange Act; <u>provided</u>, <u>however</u>, that (A) in each case, such shares of Common Stock were acquired in the Ordinary Course of Business of the Investor Investment Advisor's respective investment management or securities business and not with the intent or purpose on the part of Investor or the Investor Parties of influencing control of the Company or avoiding the provisions of this Agreement and (B) where appropriate, "ethical walls" or other informational barriers and other procedures have been established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "<u>Investor Parties</u>" means Investor, Pershing Square Capital Management, L.P. and their respective Affiliates; <u>provided</u>, <u>however</u>, that none of the Company, any Subsidiary of the Company or any Investor Investment Advisor shall be deemed to be an Investor Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "<u>Knowledge</u>" has the meaning assigned thereto in <u>Section 3.2(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "<u>Large Stockholder</u>" means a Person that is the Beneficial Owner of more than ten percent (10%) of the outstanding shares of Common Stock on a Fully Diluted Basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "<u>Law</u>" means any statutes, laws (including common law), rules, ordinances, regulations, codes, orders, judgments, decisions, injunctions, writs, and decrees applicable to the Company, Common Stock, Investor or Investor's Affiliates, or their respective properties or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "<u>Merger Transaction</u>" means any transaction involving the acquisition (by purchase, merger or otherwise) by any Person or Group of Beneficial Ownership of voting securities of the Company entitling such Person or Group to exercise a majority of the total voting power of all outstanding securities entitled to vote generally in elections of directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "<u>Ordinary Course of Business</u>" means the ordinary and usual course of day-to-day operations of the business of the Company consistent with past practice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "<u>Ownership Cap</u>" means forty seven percent (47%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "<u>Person</u>" means an individual, a group (including a "group" under Section 13(d) of the Exchange Act), a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a Governmental Entity or any department, agency or political subdivision thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "<u>Public Stock</u>" means common stock listed on a recognized U.S. national securities exchange with an aggregate market capitalization (held by non-Affiliates of the issuer) in excess of $1 billion in Fair Market Value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "<u>Registration Rights Agreement</u>" means that certain Registration Rights Agreement, dated as of May 5, 2025, by and between the Company and Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "<u>Rule 144</u>" means Rule 144 promulgated by the SEC under the Securities Act (or any successor provision then in force), as the same may be amended and shall be in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "<u>SEC</u>" means the U.S. Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "<u>Services Agreement</u>" means that certain Services Agreement, dated as of May 5, 2025, by and between the Company and Pershing Square Capital Management, L.P.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "<u>Share Equivalent</u>" means any stock, warrants, rights, calls, options or other securities exchangeable or exercisable for, or convertible into, shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "<u>Share Purchase Agreement</u>" has the meaning assigned thereto in the Recitals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "<u>Shareholder Agreement</u>" means that certain Shareholder Agreement, dated as of May 5, 2025, between the Company, Investor and Pershing Square Capital Management, L.P.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "<u>Specified Provisions</u>" has the meaning assigned thereto in <u>Section 3.3(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "<u>Subsidiary</u>" means, with respect to a Person, (i) a company a majority of whose capital stock with voting power, under ordinary circumstances, to elect a majority of the directors is at the time, directly or indirectly, owned by such Person, by a Subsidiary of such Person, or by such Person and one or more Subsidiaries of such Person, (ii) a partnership in which such Person or a Subsidiary of such Person is, at the date of determination, a general partner of such partnership, (iii) a limited liability company of which such Person, or a Subsidiary of such Person, is a managing member or (iv) any other Person (other than a company) in which such Person, a Subsidiary of such Person or such Person and one or more Subsidiaries of such Person, directly or indirectly, at the date of determination thereof, has (x) at least a majority ownership interest or (y) the power to elect or direct the election of a majority of the directors or other governing body of such Person.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "<u>Suspension Period</u>" has the meaning assigned thereto in <u>Section 3.3(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) "<u>Termination Date</u>" has the meaning assigned thereto in <u>Section 4.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) "<u>Transaction Documents</u>" means, individually or collectively, the Share Purchase Agreement, the Shareholder Agreement, the Services Agreement, the Registration Rights Agreement and this Agreement, in each case, as any such agreement may be amended or restated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) "<u>Transfer</u>" has the meaning assigned thereto in <u>Section 3.2(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) "<u>Transferee</u>" means any proposed transferee of securities pursuant to <u>Section 3.2(b)(i)</u> or <u>Section 3.2(b)(vi)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) "<u>Transferee Agreement</u>" has the meaning assigned thereto in <u>Section 3.2(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) "<u>Votes Cast</u>" means the aggregate number of shares of Common Stock that are properly voted for or against any action to be taken by stockholders, excluding any shares held by the Investor Parties or a Transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) "<u>Voting Cap</u>" means forty percent (40%).

#### ARTICLE II

#### COMPANY RELATED PRINCIPLES

SECTION 2.1 <u>Board of Directors</u>. So long as Investor and the Investor Parties, collectively, shall Beneficially Own ten percent (10%) or more of the outstanding shares of Common Stock, none of Investor or the Investor Parties shall take any action that is inconsistent with its support for the following corporate governance principles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A majority of the members of the Board shall be Independent Directors, where "<u>Independent Director</u>" means a director who satisfies all standards for independence promulgated by the New York Stock Exchange (or the applicable exchange where shares of Common Stock are then listed);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Board shall have a nominating committee, a majority of which shall be Independent Directors who are not Affiliated with, and were not nominated pursuant to Section 3 of the Shareholder Agreement by, the Investor or any of its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with any stockholder meeting or consent solicitation relating to the election of members of the Board, Investor and the other Investor Parties may vote the shares of Common Stock that they Beneficially Own in their sole and absolute discretion, <u>provided</u>, <u>however</u>, that if Investor and the other Investor Parties, collectively, Beneficially Own shares of Common Stock that represent more than the Voting Cap of the then-outstanding Common Stock, then Investor shall, and shall cause the other Investor Parties to, vote the shares of Common Stock that account for the excess over the Voting Cap in such election of members of the Board in proportion to the Votes Cast (except with respect to the election of the Purchaser Board Designees (as such term is defined in the Shareholder Agreement), in which case the Investor and other Investor Parties may vote all the shares of Common Stock that they Beneficially Own in their sole and absolute discretion);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Board shall consist of eleven (11) members and not be increased or reduced, unless approved by seventy-five percent (75%) of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Change of Control (other than a transaction contemplated by <u>Section 3.1(b)(ii)</u>) in which a Large Stockholder or its controlled Affiliate is the acquiror or part of the acquiror group or is proposed to be directly or indirectly combined with the Company must be approved by a majority of the Disinterested Directors as if it were a Company Transaction involving such Large Stockholder and by a majority of the voting power of the stockholders (other than such Large Stockholder and its controlled Affiliates); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Change of Control (other than a transaction contemplated by <u>Section 3.2(b)(v)</u>) in which any Large Stockholder or its controlled Affiliate receives per share consideration in its capacity as a stockholder of the Company in excess of that to be received by other stockholders, must be approved by a majority of the Disinterested Directors as if it were a Company Transaction involving such Large Stockholder and by a majority of the voting power of the stockholders (other than such Large Stockholder and its controlled Affiliates).

The Company shall not waive any provisions similar to <u>Sections 2.1(c)</u>, <u>(e)</u> or <u>(f)</u> above for any Large Stockholder under any other agreement unless the Company grants a similar waiver under this Agreement.

SECTION 2.2 <u>Voting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Sections 2.1(c)</u>, <u>(e)</u> and <u>(f)</u> in connection with any matter being voted on at a stockholder meeting or in a consent solicitation that the Board has recommended that the stockholders of the Company approve, Investor and the other Investor Parties may vote the shares of Common Stock that they Beneficially Own against or in favor of such matter, in their sole and absolute discretion, <u>provided</u>, <u>however</u>, that if Investor and the other Investor Parties, collectively, Beneficially Own shares of Common Stock that represent more than the Voting Cap of the then-outstanding Common Stock, then Investor shall, and shall cause the other Investor Parties to, vote the shares of Common Stock that account for the excess over the Voting Cap on such matter in proportion to the Votes Cast.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to <u>Sections 2.1(c)</u>, <u>(e)</u> and <u>(f)</u> in connection with any matter being voted on at a stockholder meeting or in a consent solicitation that the Board has recommended that the stockholders of the Company <u>not</u> approve, Investor and the other Investor Parties may vote the shares of Common Stock that they Beneficially Own:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) against such matter; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in favor of such matter; <u>provided</u>, <u>however</u>, that if Investor and the other Investor Parties, collectively, Beneficially Own shares of Common Stock that represent more than the Voting Cap of the then-outstanding Common Stock, then Investor shall, and shall cause the other Investor Parties to, vote the shares of Common Stock that account for the excess over the Voting Cap on such matter in proportion to the Votes Cast.

SECTION 2.3 <u>Related Party Transactions</u>. Without the approval of a majority of the Disinterested Directors, Investor shall not, and shall not permit any of the Investor Parties to, engage in any Company Transaction. "<u>Company Transaction</u>" means (i) any transaction or series of related transactions, directly or indirectly, between the Company or any Subsidiary of the Company, on the one hand, and any of the Investor Parties, on the other hand, or (ii) with respect to the purchase or sale of Common Stock by any of the Investor Parties, any waiver of any limitation or restriction with respect to such purchase or sale in the Transaction Documents; <u>provided</u>, <u>however</u>, that none of the following shall constitute a Company Transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) transactions expressly contemplated in the Transaction Documents (for the avoidance of doubt, including transactions with third parties that the Investor Parties may advise on as provided under the Services Agreement subject to any required approvals under the Services Agreement but excluding any transaction between the Company or any Subsidiary of the Company, on the one hand, and any of the Investor Parties, on the other hand) and any amendments, renewals, extensions or other modification of the Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) customary compensation arrangements (whether in the form of cash or equity awards), expense reimbursement, director insurance coverage and/or indemnification arrangements (and related advancement of expenses) in each case for Board designees, or any use by such persons, for Company business purposes, of aircraft, vehicles, property, equipment or other assets owned or customarily provided to members of the Board by the Company or any of its Subsidiaries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any transaction or series of transactions if the same is in the Ordinary Course of Business and does not involve payments by the Company in excess of $10,000,000 in the aggregate for such transaction or series of transactions.

SECTION 2.4 <u>No Other Voting Restrictions</u>. For the avoidance of doubt, except as restricted herein or by applicable Law, Investor and the other Investor Parties may vote the Common Stock that they Beneficially Own in their sole and absolute discretion.

#### ARTICLE III

#### INVESTOR RELATED COVENANTS

SECTION 3.1 <u>Ownership Limitations.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as provided in <u>Section 3.1(b)</u>, Investor agrees that it (together with the other Investor Parties) shall not, and shall cause the other Investor Parties not to, acquire Economic Ownership of shares of Common Stock that would result in the Investor Parties in the aggregate Economically Owning a percentage of the then-outstanding Common Stock on a Fully Diluted Basis that is greater than the Ownership Cap; <u>provided</u>, that if the Investor Parties inadvertently acquire Economic Ownership of shares of Common Stock that would result in the Investor Parties in the aggregate Economically Owning a percentage of the then-outstanding Common Stock on a Fully Diluted Basis that is greater than the Ownership Cap, then such Investor Party shall divest such shares as promptly as practicable. For the avoidance of doubt, no Person shall be in violation of this <u>Section 3.1</u> as a result of any acquisition by the Company of any Common Stock or any other event that reduces the number of shares of Common Stock outstanding, in each case, which is approved by the Board.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding <u>Section 3.1(a)</u>, any of the Investor Parties may acquire Economic Ownership of shares of Common Stock that would result in the Investor Parties (taken as a whole) having Economic Ownership of a percentage of the then-outstanding Common Stock on a Fully Diluted Basis that is greater than the Ownership Cap under any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) acquisitions of shares pursuant to any pro rata stock dividend or stock distribution effected by the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if such acquisition is pursuant to a tender offer or exchange offer, in each case that includes an offer for all outstanding shares of Common Stock owned by the Target Stockholders, or a merger, consolidation, binding share exchange or similar transaction pursuant to an agreement with the Company, so long as in each case (A) such offer, merger, consolidation, binding share exchange or similar transaction is approved by a majority of the Disinterested Directors or by a special committee comprised of Disinterested Directors (such tender offer or exchange offer, an "<u>Approved Offer</u>", and such merger, consolidation, binding share exchange or similar transaction, an "<u>Approved Merger</u>"), and (B) in any such Approved Offer, a majority of the Target Shares are tendered into such Approved Offer and not withdrawn prior to the final expiration of such Approved Offer, or in such Approved Merger, a majority of the Target Shares that are voted (in person or by proxy) on the related transaction proposal are voted in favor of such proposal. As used in this <u>Section 3.1(b)(ii)</u>: "<u>Target Shares</u>" means the then-outstanding shares of Common Stock not owned by the Investor Parties; and "<u>Target Stockholders</u>" means the stockholders of the Company other than the Investor Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The limitation set forth in <u>Section 3.1(a)</u> may only be waived by the Company if a majority of the Disinterested Directors consent thereto.

SECTION 3.2 <u>Transfer Restrictions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section 3.2(b)</u>, unless approved by a majority of the Independent Directors, Investor shall not, and shall not permit any of the Investor Parties to, sell or otherwise transfer or agree to transfer (each of the foregoing, a "<u>Transfer</u>"), directly or indirectly, any shares of Common Stock that are held directly or indirectly by Investor or any of the other Investor Parties if, immediately after giving effect to such Transfer, the Person that acquires such Common Stock (other than any underwriter acting in such capacity in an underwritten public offering of such shares) would, together with its Affiliates, to the actual knowledge ("<u>Knowledge</u>") of the transferor Beneficially Own more than ten percent (10%) of the then-outstanding Common Stock. A transferor shall be deemed to have Knowledge of any transferee's Beneficial Ownership of Common Stock if the transferor has actual knowledge of the identity of the transferee and such Beneficial Ownership has been, at the time of the agreement to transfer, publicly disclosed in accordance with Section 13 of the Exchange Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The limitations in <u>Section 3.2(a)</u> shall not apply, and any Investor Party may Transfer freely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to any Person (including any Affiliate of Investor) if such Person has executed and delivered to the Company a Transferee Agreement (as defined below) (for the avoidance of doubt, no such Transferee Agreement will be required in the case of Transfers among Investor Parties already subject to this Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to one or more underwriters or initial purchasers acting in their capacity as such in a manner not intended to circumvent the restrictions contained in <u>Section 3.2(a)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in a sale in the public market, in accordance with Rule 144, including the volume and manner of sale limitations set forth therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in any Merger Transaction (other than a transaction contemplated by <u>Section 3.2(b)(v)</u> below) or transaction contemplated by clause (iii) of the definition of Change of Control (A) in which (in either case) no Investor Party is the acquiror or part of the acquiring group or is proposed to be combined with the Company and (B) that has been approved by the Board and a majority of the stockholders (it being understood that this clause (iv) does not affect the agreement of the parties under <u>Section 2.1(e)</u> and <u>(f)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in connection with a tender or exchange offer that (A) is not solicited by any Investor Party and in which all holders of Common Stock are offered the opportunity to sell shares of Common Stock and (B) complies with applicable securities laws, including Rule 14d-10 promulgated under the Exchange Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) in connection with any bona fide mortgage, encumbrance, pledge or hypothecation of capital stock to a financial institution in connection with any bona fide loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Transfer under <u>Section 3.2(b)(i)</u> shall be valid unless and until a Transferee Agreement has been executed by the Transferee and delivered to the Company. For the purpose of this Agreement a "<u>Transferee Agreement</u>" executed by a Transferee means an agreement substantially in the form of this Agreement or in such other form as is reasonably satisfactory to the Company except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) notwithstanding <u>Section 2.1(c)</u>, in connection with any stockholder meeting or consent solicitation relating to the election of members of the Board, such Transferee may vote the shares of Common Stock that it Beneficially Owns in favor of one director candidate in its sole and absolute discretion and regarding any other director candidates in such election must vote in proportion to Votes Cast;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Investor" shall be defined to mean such Transferee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "Ownership Cap" shall be defined to mean the lower of (x) forty seven percent (47%) and (y) the sum of five percent (5%) and the percentage of the outstanding Common Stock on a Fully Diluted Basis that the Transferee Economically Owns as of the date of (and after giving effect to) such Transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "Voting Cap" shall be defined to mean the lower of (x) forty percent (40%) and (y) the sum of five percent (5%) and the percentage of the outstanding Common Stock on a Fully Diluted Basis that the Transferee Beneficially Owns as of the date of (and after giving effect to) such Transfer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any obligation on the part of Investor hereunder to cause the Investor Parties to take any action or refrain from taking any action shall only apply to the Investor Parties controlled by the Transferee and the Transferee Agreement shall provide that the Transferee shall use all reasonable efforts to cause Affiliates that the Transferee does not control to take or refrain from taking the action that it is otherwise required to cause under this Agreement.

SECTION 3.3 <u>Purchaser Board Designees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything contained herein to the contrary, the provisions in <u>Article II</u> (collectively, the "<u>Specified Provisions</u>") shall be suspended and shall not apply in the event that the Purchaser Board Designees (as defined in the Shareholder Agreement) that Investor is entitled to designate under the terms of Section 3 of the Shareholder Agreement are not elected at a stockholders' meeting at which the stockholders voted on the election of such Purchaser Board Designees (any such period, a "<u>Suspension Period</u>"); <u>provided</u>, <u>however</u>, that this <u>Section 3.3(a)</u> shall apply only if Investor has complied with its obligations under Section 3 of the Shareholder Agreement, including Investor's timely designation of Purchaser Board Designees. No Suspension Period shall be deemed to occur during any reasonable period of time during which a Purchaser Board Designee is being replaced upon the death, resignation, retirement, disqualification or removal from office of such Purchaser Board Designee. Any Suspension Period shall end upon the election or appointment of the Purchaser Board Designees that Investor is entitled to designate under the terms of Section 3 of the Shareholder Agreement. At all times other than during a Suspension Period, the Specified Provisions shall apply in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything contained herein or in the Share Purchase Agreement, no Person that acquires Common Stock from the Investor Parties or from any other Person shall have any rights of Investor under Section 3 of the Shareholder Agreement with respect to the designation of members of the Board.

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#### ARTICLE IV

#### TERMINATION

SECTION 4.1 <u>Termination of Agreement</u>. This Agreement may be terminated as follows (the date of such termination, the "<u>Termination Date</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if Investor and the Company mutually agree to terminate this Agreement, but only if at least two-thirds (2/3) of the Disinterested Directors have approved such termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) without any further action by the parties hereto, if Investor and the Investor Parties Beneficially Own less than ten percent (10%) of the then outstanding Common Stock on a Fully Diluted Basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) without any other action by the parties hereto, upon the consummation of a Change of Control not involving Investor or any Investor Party as a purchaser of any direct or indirect interest in the Company or any of its assets or properties; <u>provided</u> that the Investor Parties shall not have violated this Agreement in connection with any transaction under this clause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) without any other action by the parties hereto, upon the consummation of: (i) a sale of all or substantially all of the assets the Company and its Subsidiaries (determined on a consolidated basis), in one transaction or series of related transactions; or (ii) the acquisition (by purchase, merger or otherwise) by any Person or Group of Beneficial Ownership of voting securities of the Company entitling such Person or Group to exercise ninety percent (90%) or more of the total voting power of all outstanding securities entitled to vote generally in elections of directors of the Company; <u>provided</u> that the Investor Parties shall not have violated this Agreement in connection with any transaction under the preceding clauses (i) and (ii); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) upon notice by Investor to the Company in the event the Services Agreement expires or is otherwise terminated pursuant to Section 10.2.4 thereof.

SECTION 4.2 <u>Procedure upon Termination</u>. In the event of termination pursuant to <u>Section 4.1</u>, this Agreement shall terminate on the Termination Date without further action by Investor and the Company.

SECTION 4.3 <u>Effect of Termination</u>. In the event that this Agreement is validly terminated as provided in this <u>Article</u> <u>IV</u>, then each of the parties hereto shall be relieved of their duties and obligations arising under this Agreement after the date of such termination and such termination shall be without liability to the other party; <u>provided</u>, <u>however</u>, that <u>Article V</u> shall survive any such termination and shall be enforceable hereunder; <u>provided</u>, <u>further</u>, <u>however</u>, that nothing in this <u>Section 4.3</u> shall relieve any party hereto of any liability for a breach of a representation, warranty or covenant in this Agreement prior to the Termination Date. <br>

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#### ARTICLE V

#### MISCELLANEOUS

SECTION 5.1 <u>Notices</u>. Any notice or other communication required or permitted to be given hereunder will be in writing and will be deemed to have been duly given if delivered by prepaid first-class mail, by email or other means of electronic communication or by hand-delivery and addressed as follows:

If to Investor, to:

Pershing Square Capital Management, L.P.

787 Eleventh Ave

New York, New York 10019

Attention: Chief Legal Officer

Email: legal@persq.com

with a copy (which shall not constitute notice) to:

Sullivan & Cromwell LLP

125 Broad Street

New York, New York 10004

Attention:

Scott D. Miller

Ken Li

Email:

[email address]

[email address]

If to the Company, to:

Howard Hughes Holdings Inc.

9950 Woodloch Forest Drive, Suite 1100

The Woodlands, Texas 77380

<br> Attention: General Counsel

Email: [email address]

with copies (which shall not constitute notice) to:

Hogan Lovells US LLP

Columbia Square

555 Thirteenth St, NW

Washington, DC 20004

Attention:

David Bonser

John Beckman

Stacey McEvoy

Email:

[email address]

[email address]

[email address]

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and

Morgan, Lewis & Bockius LLP

2222 Market Street

Philadelphia, PA 19103

Attention:

Justin W. Chairman

Richard B. Aldridge

Email:

[email address]

[email address]

SECTION 5.2 <u>Assignment; No Third Party Beneficiaries</u>. Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned by any party without the prior written consent of the other party. This Agreement (including the documents and instruments referred to in this Agreement) is not intended to and does not confer upon any person other than the parties hereto any rights or remedies under this Agreement.

SECTION 5.3 <u>Prior Negotiations; Entire Agreement</u>. The Transaction Documents constitute the entire agreement of the parties and their Affiliates and supersede all prior and contemporaneous agreements, arrangements or understandings, whether written or oral, between the parties and their Affiliates with respect to the subject matter of this Agreement.

SECTION 5.4 <u>Governing Law; Venue</u>. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE. EACH OF THE PARTIES HEREBY AGREE THAT ANY SUIT, ACTION OR PROCEEDING SEEKING TO ENFORCE ANY PROVISION OF, OR BASED ON ANY MATTER ARISING OUT OF OR IN CONNECTION WITH, THIS AGREEMENT (WHETHER BROUGHT BY ANY PARTY OR ANY OF ITS AFFILIATES OR AGAINST ANY PARTY OR ANY OF ITS AFFILIATES) SHALL BE BROUGHT IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE (OR IN THE EVENT, BUT ONLY IN THE EVENT, THAT SUCH COURT DOES NOT HAVE SUBJECT MATTER JURISDICTION OVER SUCH ACTION OR PROCEEDING, THE SUPERIOR COURT OF THE STATE OF DELAWARE (COMPLEX COMMERCIAL DIVISION) OR, IF SUBJECT MATTER JURISDICTION OVER THE ACTION OR PROCEEDING IS VESTED EXCLUSIVELY IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA, THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE) AND EACH OF THE PARTIES IRREVOCABLY SUBMITS TO THE JURISDICTION OF, AND VENUE IN, SUCH COURTS AND WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS.

SECTION 5.5 <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other party (including via email or other electronic transmission), it being understood that each party need not sign the same counterpart.

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SECTION 5.6 <u>Expenses</u>. Except as otherwise provided in this Agreement or any other Transaction Document (including the Investor's right to reimbursement of certain expenses under Section 7(f) of the Share Purchase Agreement), Investor and the Company shall each bear its own expenses incurred in connection with the negotiation and execution of this Agreement and each other agreement, document and instrument contemplated by this Agreement and the consummation of the transactions contemplated hereby and thereby.

SECTION 5.7 <u>Waivers and Amendments</u>. Subject to <u>Section 5.2</u>, this Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions of this Agreement may be waived, only by a written instrument signed by Investor and the Company (with the approval of a majority of the Disinterested Directors) or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party in exercising any right, power or privilege pursuant to this Agreement shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege pursuant to this Agreement, nor shall any single or partial exercise of any right, power or privilege pursuant to this Agreement, preclude any other or further exercise thereof or the exercise of any other right, power or privilege pursuant to this Agreement. The rights and remedies provided pursuant to this Agreement are cumulative and are not exclusive of any rights or remedies which any party otherwise may have at law or in equity.

SECTION 5.8 <u>Construction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties hereto have participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless the context otherwise requires, as used in this Agreement: (i) "or" shall mean "and/or"; (ii) "including" and its variants mean "including, without limitation" and its variants; (iii) words defined in the singular have the parallel meaning in the plural and vice versa; (iv) references to "written" or "in writing" include in visual electronic form; (v) words of one gender shall be construed to apply to each gender; and (vi) the terms "Article" and "Section" refer to the specified Article or Section of this Agreement.

SECTION 5.9 <u>Severability</u>. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any person or entity or any circumstance, is found to be invalid or unenforceable in any jurisdiction, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other persons, entities or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

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SECTION 5.10 <u>Equitable Relief</u>. The parties agree that irreparable damage would occur in the event that any provisions of this Agreement were not performed in accordance with their specific terms. It is accordingly agreed that each of the parties shall be entitled to an injunction or injunctions (without necessity of proving damages or posting a bond or other security) to prevent breaches of this Agreement, and to enforce specifically the terms and provisions of this Agreement, in addition to any other applicable remedies at law or equity.

SECTION 5.11 <u>Successor Securities</u>. The provisions of this Agreement pertaining to shares of Common Stock shall apply to all shares of Common Stock Beneficially Owned by any Investor Party and any voting equity securities of the Company, regardless of class, series, designation or par value, that are issued as a dividend on or in any other distribution in respect of, or as a result of a reclassification (including a change in par value) in respect of, shares of Common Stock or other shares of the Company which, as provided by this section, are considered as shares of Common Stock for purposes of this Agreement and shall also apply to any voting equity security issued by any company that succeeds, by merger, consolidation, a share exchange, a reorganization of the Company or any similar transaction, to all or substantially all the business of the Company, or to the ownership thereof, if such security was issued in exchange for or otherwise as consideration for or in respect of shares of Common Stock (or other shares of the Company which, as provided by this section, are considered as shares of Common Stock for purposes of this Agreement) in connection with such succession transaction.

SECTION 5.12 <u>Inurement</u>. This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

SECTION 5.13 <u>Voting Procedures</u>. If, in connection with any stockholder meeting or consent solicitation, Investor or the Investor Parties are required under the terms of this Agreement to vote in proportion to Votes Cast, then the parties shall cooperate to determine appropriate procedures and mechanics to facilitate such proportionate voting.

SECTION 5.14 <u>Waiver of Jury Trial</u>. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTIONS, SUITS, DEMAND LETTERS, JUDICIAL, ADMINISTRATIVE OR REGULATORY PROCEEDINGS, OR HEARINGS, NOTICES OF VIOLATION OR INVESTIGATIONS ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER AND (B) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY.

SECTION 5.15 <u>Sequencing</u>. For the avoidance of doubt, the Board may approve and adopt any matter referred to herein that also requires approval of the Company's stockholders under the Delaware General Corporation Law prior to the Company obtaining the approval required herein; provided, that the Company may not permit such matter to occur until the approval required herein is obtained.

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#### \*\* REMAINDER OF PAGE INTENTIONALLY LEFT BLANK\*\*

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IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed and delivered by each of them or their respective officers thereunto duly authorized, all as of the date first written above.

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| | | |
|:---|:---|:---|
| **HOWARD HUGHES HOLDINGS INC.** | **HOWARD HUGHES HOLDINGS INC.** | **HOWARD HUGHES HOLDINGS INC.** |
| By: | /s/ David O'Reilly | /s/ David O'Reilly |
|  | Name: | David O'Reilly |
|  | Title: | Chief Executive Officer |

---

---

| | | |
|:---|:---|:---|
| **PERSHING SQUARE HOLDCO, L.P.** | **PERSHING SQUARE HOLDCO, L.P.** | **PERSHING SQUARE HOLDCO, L.P.** |
| By: | /s/ William A. Ackman | /s/ William A. Ackman |
|  | Name: | William A. Ackman |
|  | Title: | Chief Executive Officer |

---

[*Signature Page to Pershing Standstill Agreement*]

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## Exhibit 10.21

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**Exhibit 10.21**<br>

#### REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT, dated as of May 5, 2025 (this "<u>Agreement</u>"), is entered into by and between the entities listed in <u>Schedule I</u> hereto (the "<u>Purchasers</u>"), and Howard Hughes Holdings Inc., a Delaware corporation (the "<u>Company</u>").

#### RECITALS

WHEREAS, Pershing Square Holdco, L.P. has, pursuant to the terms of that certain Share Purchase Agreement, dated as of the date thereof, by and between the Company and Pershing Square Holdco, L.P. (the "<u>Share Purchase Agreement</u>"), agreed, among other things, to purchase 9,000,000 shares of common stock, par value $0.01, of the Company (the "<u>Common Stock</u>");

WHEREAS, in case any securities held by a Purchaser or any of its transferees are at any time not freely transferable by the holder in accordance with applicable laws, the Company and the Purchasers desire to define certain registration rights with respect to the Common Stock and certain other securities on the terms and subject to the conditions herein set forth; and

WHEREAS, this Agreement supersedes and replaces the Purchasers' registration rights under the Registration Rights Agreement, dated November 9, 2010, between The Howard Hughes Corporation, Pershing Square Capital Management, L.P. and the other entities listed on Schedule I and Schedule II thereto.

NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the parties hereby agree as follows:

#### SECTION 1. DEFINITIONS

As used in this Agreement, the following terms have the respective meanings set forth below:

"<u>Affiliate</u>" of any particular Person shall mean any other Person controlling, controlled by or under common control with such particular Person. For the purposes of this definition, "<u>control</u>" shall mean the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities, contract or otherwise;

"<u>Agreement</u>" shall have the meaning set forth in the Preamble hereto;

"<u>Business Day</u>" shall mean any day other than (i) a Saturday, (ii) a Sunday, or (iii) any day on which commercial banks in New York, New York are required or authorized to close by law or executive order;

"<u>Common Stock</u>" shall have the meaning set forth in the Recitals hereto;

"<u>Company</u>" shall have the meaning set forth in the Preamble hereto;

"<u>Demand Notice</u>" shall have the meaning set forth in <u>Section 2.1(a)</u> hereof;

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"<u>Exchange Act</u>" shall mean the Securities Exchange Act of 1934, as amended, or any successor federal statute, and the rules and regulations of the SEC promulgated thereunder, all as the same may be amended and shall be in effect from time to time;

"<u>FINRA</u>" shall mean the Financial Industry Regulatory Authority;

"<u>Holder</u>" shall mean any holder of Registrable Securities subject to this Agreement, solely in their capacity as such, including Permitted Assignees;

"<u>Indemnified Party</u>" shall have the meaning set forth in <u>Section 2.7(c)</u> hereof;

"<u>Indemnifying Party</u>" shall have the meaning set forth in <u>Section 2.7(c)</u> hereof;

"<u>Initiating Holder(s)</u>" shall mean any Holder, with respect to the Registrable Securities as to which such Holder submits a Demand Notice pursuant to <u>Section 2.1</u> hereof;

"<u>Issuer Free Writing Prospectus</u>" shall mean an "Issuer Free Writing Prospectus", as defined in Rule 433 under the Securities Act, relating to an offer of Registrable Securities;

"<u>Losses</u>" shall have the meaning set forth in <u>Section 2.7(a)</u> hereof;

"<u>Other Stockholders</u>" shall have the meaning set forth in <u>Section 2.1(c)</u> hereof;

"<u>Participating Holders</u>" shall mean Holders participating in the Registration relating to the Registrable Securities;

"<u>Permitted Assignee</u>" shall have the meaning set forth in <u>Section 3.5</u> hereto;

"<u>Person</u>" shall mean an individual, a group (including a "group" under Section 13(d) of the Exchange Act), a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a government or agency or political subdivision thereof;

"<u>Prospectus</u>" shall mean the prospectus (including any preliminary, final or summary prospectus) included in any Registration Statement, all amendments and supplements to such prospectus and all other material incorporated by reference in such prospectus;

"<u>Purchasers</u>" shall have the meaning set forth in the Preamble hereto;

"<u>Qualifying Employee Stock</u>" shall mean (i) rights and options issued in the ordinary course of business under employee benefits plans of the Company or any predecessor or otherwise to executives in compensation arrangements approved by the Board of Directors of the Company or any predecessor and any securities issued after the date hereof upon exercise of such rights and options and options issued to employees of the Company or any predecessor as a result of adjustments to options in connection with the reorganization of the Company or any predecessor and (ii) restricted stock and restricted stock units issued after the date hereof in the ordinary course of business under employee benefit plans and securities issued after the date hereof in settlement of any such restricted stock units;

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"<u>Register</u>", "<u>Registered</u>" and "<u>Registration</u>" shall mean a registration effected by preparing and (i) filing a Registration Statement in compliance with the Securities Act (and any post-effective amendments filed or required to be filed) and the declaration or ordering of effectiveness of such Registration Statement, or (ii) filing a Prospectus and/or prospectus supplement in respect of an appropriate effective Registration Statement;

"<u>Registrable Securities</u>" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any shares of Common Stock acquired or held by the Purchasers on or after the date hereof (whether or not acquired in connection with the Share Purchase Agreement or otherwise);

(ii) (A) any securities of the Company or its Affiliates issued as a dividend or other distribution with respect to, or in exchange for or in conversion, exercise or replacement of, any Registrable Securities described in clause (i) (the "<u>Initial Securities</u>") or securities that may become Registrable Securities by virtue of clause (C); (B) any securities of the Company or its Affiliates offered wholly or partly in consideration of the Initial Securities or securities that may become Registrable Securities by virtue of clause (C) in any tender or exchange offer; or (C) any securities of the Company or its Affiliates issued as a dividend or other distribution with respect to, or in exchange for or in conversion, exercise or replacement of or offered wholly or partly in any tender or exchange offer in consideration of any Registrable Securities described in clause (A) or (B); and

(iii) any Registrable Securities described in clause (i) or (ii) above acquired or held by a Person, for which rights and obligations have been assigned pursuant to clause (ii) of<u>Section 3.5</u> and in accordance with the terms of <u>Section 3.5</u> hereof;

<u>provided</u>, that as to any particular Registrable Securities, such securities shall cease to be Registrable Securities (1) when a Registration Statement with respect to such securities has been declared effective under the Securities Act and such securities have been disposed of pursuant to such Registration Statement, (2) after such securities have been sold in accordance with Rule 144 (but not Rule 144A), (3) after such securities shall have otherwise been transferred and new securities not subject to transfer restrictions under any federal securities laws and not bearing any legend restricting further transfer shall have been delivered by the Company, all applicable holding periods shall have expired, and no other applicable and legally binding restriction on transfer by the holder thereof shall exist, (4) when such securities are eligible for sale pursuant to Rule 144 under the Securities Act without limitation thereunder on volume or manner of sale, or (5) when such securities cease to be outstanding;

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"<u>Registration Expenses</u>" shall mean (i) any and all expenses incurred by the Company and its Subsidiaries in effecting any Registration pursuant to this Agreement, including, without limitation, all (1) Registration and filing fees, and all other fees and expenses payable in connection with the listing of securities on any securities exchange or automated interdealer quotation system, (2) fees and expenses of compliance with any securities or "blue sky" laws (including fees and disbursements of counsel in connection with "blue sky" qualifications of the securities registered), (3) expenses in connection with the preparation, printing, mailing and delivery of any Registration Statements, Prospectuses, Issuer Free Writing Prospectus and other documents in connection therewith and any amendments or supplements thereto, (4) security engraving and printing expenses, (5) internal expenses of the Company (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), (6) fees and disbursements of counsel for the Company and fees and expenses for independent certified public accountants retained by the Company (including the expenses associated with the delivery by independent certified public accountants of any comfort letters requested pursuant to the terms hereof), (7) fees and expenses of any special experts retained by the Company in connection with such Registration, (8) fees and expenses in connection with any review by FINRA of any underwriting arrangements or other terms of the offering, and all reasonable fees and expenses of any "qualified independent underwriter", (9) reasonable fees and disbursements of underwriters customarily paid by issuers or sellers of securities, but excluding any underwriting fees, discounts and commissions attributable to the sale of Registrable Securities and fees and expenses of counsel, (10) costs of printing and producing any agreements among underwriters, underwriting agreements, any "blue sky" or legal investment memoranda and any selling agreements and other documents in connection with the offering, sale or delivery of the Registrable Securities, (11) transfer agents' and registrars' fees and expenses and the fees and expenses of any other agent or trustee appointed in connection with such offering and (12) expenses relating to any analyst or investor presentations or any "road shows" undertaken in connection with the Registration, marketing or selling of the Registrable Securities; and (ii) reasonable and documented fees and expenses of one counsel for all of the Participating Holders, which counsel shall be selected by the Participating Holder holding the largest number of the Registrable Securities to be sold in the applicable Registration. Registration Expenses shall not include any out-of-pocket expenses of the Participating Holders;

"<u>Registration Statement</u>" shall mean any registration statement of the Company that covers Registrable Securities pursuant to the provisions of this Agreement filed with, or to be filed with, the SEC under the rules and regulations promulgated under the Securities Act, including the related Prospectus, amendments and supplements to such registration statement, including pre- and post-effective amendments, and all exhibits, financial information and all material incorporated by reference in such registration statement;

"<u>Required Shelf Registration Statement</u>" shall have the meaning set forth in <u>Section 2.3</u>;

"<u>Rule 144; Rule 144A</u>" shall mean Rule 144 and Rule 144A, respectively, under the Securities Act (or any successor provisions then in force), as the same may be amended and shall be in effect from time to time;

"<u>S-1 Registration Statement</u>" shall mean a registration statement of the Company on Form S-1 (or any comparable or successor form) filed with the SEC registering any Registrable Securities;

"<u>Scheduled Black-Out Period</u>" shall mean the period from and including the last day of a fiscal quarter of the Company to and including the earliest of (i) the Business Day after the day on which the Company publicly releases its earnings information for such quarter or annual earnings information, as applicable, and (ii) the day on which the executive officers and directors of the Company are no longer prohibited by Company policies applicable with respect to such quarterly earnings period from buying or selling equity securities of the Company;

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"<u>SEC</u>" shall mean the U.S. Securities and Exchange Commission;

"<u>Securities Act</u>" shall mean the Securities Act of 1933;

"<u>security</u>" and "<u>securities</u>" shall have the meaning set forth in Section 2(a)(1) of the Securities Act;

"<u>Selling Expenses</u>" shall mean all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities and all fees and disbursements of counsel for each of the Holders, other than the fees and expenses of one counsel for all of the Holders, which shall be paid for by the Company in accordance with the terms set forth in clause (ii) of the definition of "Registration Expenses" set forth herein;

"<u>Services Agreement</u>" shall mean that certain Services Agreement, dated as of May 5, 2025, by and between the Company and Pershing Square Capital Management, L.P.;

"<u>Share Purchase Agreement</u>" shall have the meaning set forth in the Recitals hereto.

"<u>Shareholder Agreement</u>" shall mean that certain Shareholder Agreement, dated as of May 5, 2025, by and among the Company, Pershing Square Holdco, L.P., and Pershing Square Capital Management, L.P.;

"<u>Shelf Registration Statement</u>" shall mean a "shelf" registration statement of the Company that covers all the Registrable Securities (and may cover other securities of the Company) on Form S-3 and under Rule 415 or, if the Company is not then eligible to file on Form S-3, on Form S-1 under the Securities Act, or any successor rule that may be adopted by the SEC, and all amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and any document incorporated by reference therein;

"<u>Standstill Agreement</u>" shall mean that certain Standstill Agreement, dated as of May 5, 2025, by and between the Company and Pershing Square Holdco, L.P.;

"<u>Subsidiary</u>" shall mean, with respect to a Person, (i) a corporation a majority of whose capital stock with voting power, under ordinary circumstances, to elect a majority of the directors is at the time, directly or indirectly, owned by such Person, by a Subsidiary of such Person, or by such Person and one or more Subsidiaries of such Person, (ii) a partnership in which such Person or a Subsidiary of such Person is, at the date of determination, a general partner of such partnership, (iii) a limited liability company of which such Person, or a Subsidiary of such Person, is a managing member or (iv) any other Person (other than a corporation) in which such Person, a Subsidiary of such Person or such Person and one or more Subsidiaries of such Person, directly or indirectly, at the date of determination thereof, has (x) at least a majority ownership interest or (y) the power to elect or direct the election of a majority of the directors or other governing body of such Person; and

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"<u>Transaction Documents</u>" shall mean, individually or collectively, the Share Purchase Agreement, the Shareholder Agreement, the Services Agreement, the Standstill Agreement and this Agreement, in each case, as any such agreement may be amended or restated from time to time.

#### SECTION 2. REGISTRATION RIGHTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Demand Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Request for Registration</u>. Subject to the limitations and conditions of <u>Section 2.1(b)</u>, if the Company shall receive from an Initiating Holder(s) a written demand (the "<u>Demand Notice</u>") that the Company effect any Registration with respect to all or a part of the Registrable Securities owned by such Initiating Holder(s) having an estimated aggregate fair market value of at least $25 million, the Company shall:

<br> (i) promptly give written notice of the proposed Registration to all other Holders in accordance with the terms of <u>Section 2.2</u>;

(ii) use its reasonable best efforts to file a Registration Statement with the SEC in accordance with the request of the Initiating Holder(s), including without limitation the method of disposition specified therein and covering resales of the Registrable Securities requested to be registered, as promptly as reasonably practicable but no later than (x) in the case of a Registration Statement other than an S-1 Registration Statement, within 30 days of receipt of the Demand Notice or (y) in the case of an S-1 Registration Statement, within 60 days of receipt of the Demand Notice;

(iii) use reasonable best efforts to cause such Registration Statement to be declared or become effective as promptly as practicable, but in no event later than 60 days after the date of initial filing of a Registration Statement pursuant to <u>Section 2.1(a)(i)</u>; and

(iv) use reasonable best efforts to keep such Registration Statement continuously effective and in compliance with the Securities Act and usable for resale of such Registrable Securities for the period as requested in writing by the Initiating Holder(s) or such longer period as may be requested in writing by any Holder participating in such registration (which periods shall be extended to the extent of any suspensions of sales pursuant to <u>Sections 2.1(a)(iii)</u> or (iv));

<u>provided</u>, <u>however</u>, that the Company shall be permitted, with the consent of the Initiating Holder(s) not to be unreasonably withheld, to file a post-effective amendment or prospectus supplement to any currently effective Shelf Registration Statement (including the Required Shelf Registration Statement contemplated by <u>Section 2.3</u> hereof) in lieu of an additional registration statement pursuant to <u>Section 2.1(a)</u> to the extent the Company reasonably determines that the Registrable Securities of the Initiating Holder(s) may be sold thereunder by such Initiating Holder(s) pursuant to their intended plan of distribution (in which case such post-effective amendment or prospectus supplement shall not be counted against the limited number of demand registrations). It shall not be unreasonable if, following the recommendation of an underwriter, the Initiating Holder(s) do not consent to the Company filing a post-effective amendment or prospectus supplement to a Shelf Registration Statement in lieu of an additional registration statement requested by the Initiating Holder(s).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary contained herein, the Company shall not be obligated to effect, or take any action to effect, any such Registration pursuant to this <u>Section 2.1</u>:

(i) in any particular jurisdiction in which the Company would be required to execute a general consent to service of process or qualify to do business in effecting such Registration, qualification or compliance, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act or applicable rules or regulations thereunder;

<br> (ii) with respect to securities that are not Registrable Securities;

(iii) if the Company has notified the Holders that in the good faith judgment of the Company, it would be materially detrimental to the Company or its security holders for such registration to be effected at such time, in which event the Company shall have the right to defer such registration for a period of not more than 60 days; <u>provided</u>, that such right to delay a registration pursuant to this clause (iii) shall be exercised by the Company only if the Company has generally exercised (or is concurrently exercising) similar black-out rights against holders of similar securities that have registration rights, if any; or

(iv) solely with respect to any Affiliate of the Company, during any Scheduled Black-Out Period; <u>provided</u>, that the total number of days that any such suspension, deferral or delay in registration pursuant to clauses (iii) and (iv) in the aggregate may be in effect in any 180-day period shall not exceed 60 days. The Company agrees to use its reasonable best efforts to issue earnings releases as promptly as practicable following the end of quarterly reporting periods and to otherwise minimize the duration of Scheduled Black-Out Periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Registration Statement filed pursuant to the request of the Initiating Holder may, subject to the provisions of <u>Section 2.1(d)</u> below, include shares of Common Stock which are held by Holders and Persons who, by virtue of agreements with the Company (other than this Agreement), are entitled to include their securities in any such Registration (such Persons, other than Holders, "<u>Other Stockholders</u>"). In the event the Initiating Holder(s) request a Registration pursuant to this <u>Section 2.1</u> in connection with a distribution of Registrable Securities to its partners or members or any other Holder elects to participate in such Registration pursuant to <u>Section 2.2</u> hereof in connection with a distribution of Registrable Securities to its partners or members, the Registration shall provide for the resale by such partners or members, if requested by such Holder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Underwriting</u>. If the Initiating Holder(s) intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of the request made pursuant to <u>Section 2.1</u>. If Other Stockholders or Holders, to the extent they have any registration rights under <u>Section 2.2</u>, request inclusion of their shares of Common Stock in the underwriting, the Initiating Holder(s) shall offer to include the shares of Common Stock of such Holders and Other Stockholders in the underwriting and may condition such offer on their acceptance of the further applicable provisions of this <u>Section 2</u>. The Holders whose Registrable Securities are to be included in such Registration and the Company shall (together with all Other Stockholders proposing to distribute their shares of Common Stock through such underwriting) enter into an underwriting agreement in customary form for secondary public offerings with the managing underwriter or underwriters selected for such underwriting by a majority-in-interest of the Holders whose Registrable Securities are to be included in such Registration subject to approval by the Company not to be unreasonably withheld (which underwriters may also include a non-bookrunning co-manager selected by the Company subject to approval by a majority-in-interest of the Holders whose Registrable Securities are to be included in such Registration); <u>provided</u>, <u>however</u>, that such underwriting agreement shall not provide for indemnification or contribution obligations on the part of any Holder or Other Stockholder greater than the obligations of the Holders under <u>Section 2.7(b)</u> or <u>Section 2.7(d)</u>. Notwithstanding any other provision of this <u>Section 2.1</u>, if the managing underwriter or underwriters advise the Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, some or all of the securities of the Company held by the Other Stockholders shall be excluded from such Registration to the extent so required by such limitation. If, after the exclusion of such shares held by such Other Stockholders, further reductions are still required due to the marketing limitation, the number of Registrable Securities included in the Registration by each Holder (including the Initiating Holder(s)) shall be reduced on a pro rata basis (based on the number of Registrable Securities requested to be included in such registration by such Holders), by such minimum number of shares as is necessary to comply with such request. No Registrable Securities or any other securities excluded from the underwriting by reason of the underwriter's marketing limitation shall be included in such Registration. If any Holder or Other Stockholder who has requested inclusion in such Registration as provided above disapproves of the terms of the underwriting, such Person may elect to withdraw therefrom by providing written notice to the Company, the underwriter and the Initiating Holder(s). The securities so withdrawn shall also be withdrawn from Registration. If the underwriter has not limited the number of Registrable Securities or other securities to be underwritten, the Company and executive officers and directors of the Company (whether or not such Persons have registration rights pursuant to <u>Section 2.2</u> hereof) may include its or their securities for its or their own account in such Registration if the managing underwriter or underwriters and the Company so agree and if the number of Registrable Securities and other securities which would otherwise have been included in such Registration and underwriting will not thereby be limited.

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(e) The number of demand registrations that the Holders shall be entitled to request, and that the Company shall be obligated to undertake, pursuant to this <u>Section 2.1</u> shall be unlimited; <u>provided</u>, that the Company shall not be obligated to undertake more than three underwritten offerings pursuant to this <u>Section 2</u> during the term of this Agreement, <u>provided</u>, <u>further</u> that in no event shall the Company be required to effect more than one underwritten offering in any twelve-month period pursuant to this <u>Section 2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the case of an underwritten offering under this <u>Section 2.1</u>, the price, underwriting discount and other financial terms for the Registrable Securities shall be determined by the Initiating Holder(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Piggyback Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Company shall determine to register any of its capital stock either (x) for its own account, (y) for the account of the Holders listed in <u>Section 2.1</u> pursuant to the terms thereof, or (z) for the account of Other Stockholders (other than (A) a Registration relating solely to Qualifying Employee Stock, (B) a Registration relating solely to a Rule 145 transaction under the Securities Act or (C) a Registration on any Registration form which does not permit secondary sales or does not include substantially the same information as would be required to be included in a Registration Statement), the Company will, subject to the conditions set forth in this <u>Section 2.2</u>:

<br> (i) promptly give to each of the Holders a written notice thereof (which shall include a list of the jurisdictions in which the Company intends to attempt to qualify such securities under the applicable blue sky or other state securities laws); and

(ii) subject to <u>Section 2.2(b)</u> below and any transfer restrictions any Holder may be a party to, include in such Registration (and any related qualification under blue sky laws or other compliance), and in any underwriting involved therein, all the Registrable Securities specified in a written request or requests, made by the Holders. Such written request may specify all or a part of the Holders' Registrable Securities and shall be received by the Company within ten (10) days after written notice from the Company is given under <u>Section 2.2(a)(i)</u> above. In the event any Holder requests inclusion in a Registration pursuant to this <u>Section 2.2</u> in connection with a distribution of Registrable Securities to its partners or members, the Registration shall provide for the resale by such partners or members, if requested by such Holder.

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(b) <u>Underwriting</u>. If the Registration of which the Company gives notice is for a Registered public offering involving an underwriting, the Company shall so advise each of the Holders as a part of the written notice given pursuant to <u>Section 2.2(a)(i)</u> above. In such event, the right of each of the Holders to Registration pursuant to this <u>Section 2.2</u> shall be conditioned upon such Holders' participation in such underwriting and the inclusion of such Holders' Registrable Securities in the underwriting to the extent provided herein. The Holders whose Registrable Securities are to be included in such Registration shall (together with the Company and the Other Stockholders distributing their securities through such underwriting) enter into an underwriting agreement in customary form for secondary public offerings with the managing (underwriter or underwriters selected for underwriting by the Company (and if the Registration was initiated by a Holder pursuant to <u>Section 2.1</u>, such underwriters must be selected by the Initiating Holder(s) and reasonably acceptable to the Company); <u>provided</u>, <u>however</u>, that such underwriting agreement shall not provide for indemnification or contribution obligations on the part of any Holder or Other Stockholder greater than the obligations of the Holders under <u>Section 2.7(b)</u> or <u>Section 2.7(d)</u>. Notwithstanding any other provision of this <u>Section 2.2</u>, if any Registration in respect of which any Holder is exercising its rights under this <u>Section 2.2</u> involves an underwritten public offering (other than a demand Registration pursuant to <u>Section 2.1</u>, in which case the provisions with respect to priority of inclusion in such Registration set forth in <u>Section 2.1</u> shall apply) and the managing underwriter or underwriters advise the Company that in their view marketing factors require a limitation on the number of securities to be underwritten, then there shall be included in such underwritten offering the number or dollar amount of securities of the Company that in the opinion of the managing underwriter or underwriters can be sold without adversely affecting such offering, and such number of securities of the Company shall be allocated for inclusion as follows: (i) first, all securities of the Company being sold by the Company for its own account or by any Person (other than a Holder) exercising a contractual right to demand registration; (ii) second, all Registrable Securities requested to be included by the Holders and securities of the Company being sold by any Person (other than a Holder) with similar piggyback registration rights, pro rata, based on the number of shares requested to be included in such registration by such Holders and such Persons; and (iii) third, among any other holders of securities of the Company requesting such registration, pro rata, based on the number of securities requested to be included in such registration by each such holder. For the avoidance of doubt, in the event any Initiating Holder exercises demand registration rights, such registration is an underwritten public offering and the managing underwriter advises that marketing factors require a limitation on the number of securities to be so underwritten, Registrable Securities of any Holders exercising piggyback rights under this <u>Section 2.2</u> in connection with such offering and any securities to be included in such offering by the Initiating Holder(s) shall be included in such offering in the same priority and allocated on a pro rata basis, as set forth in clause (ii) above. If any of the Holders or any officer, director or Other Stockholder disapproves of the terms of any such underwriting, he, she or it may elect to withdraw therefrom by providing written notice to the Company, the underwriter and the Initiating Holder(s). Any Registrable Securities or other securities excluded or withdrawn from such underwriting shall be withdrawn from such Registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Required Shelf Registration Statement</u>. The Company shall use reasonable best efforts to remain eligible to use Form S-3 (or any successor form) and, in the event the Company ceases to be eligible to use Form S-3 (or any successor form), the Company shall use reasonable best efforts to become eligible to use Form S-3 (or any successor form). If requested by a Holder, the Company shall use reasonable best efforts to promptly, but within no later than 90 days, file a Shelf Registration Statement on Form S-3 (or any successor form) registering all Registrable Securities then held by the Holders (the "<u>Required Shelf Registration Statement</u>"), and shall use reasonable best efforts to cause such Required Shelf Registration Statement to be continuously effective so long as there are any Registrable Securities outstanding. In connection with the Required Shelf Registration Statement, the Company will, subject to the terms and limitations of this <u>Section 2</u>, as promptly as reasonably practicable upon notice from any Holder requesting Registration in accordance with the terms of this <u>Section 2.3</u>, cooperate in any shelf take-down by amending or supplementing the Prospectus related to such Registration as may be reasonably requested by such Holder or as otherwise required to reflect the number of Registrable Securities to be sold thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Expenses of Registration</u>. All Registration Expenses incurred in connection with any Registration, qualification or compliance pursuant to this <u>Section 2</u> shall be borne by the Company, and all Selling Expenses shall be borne by the Holders of the securities so registered pro rata on the basis of the number of their shares so registered (or, in the case of fees and disbursements of counsel and advisors to any Holders that do not constitute Registration Expenses, by the Holders as incurred).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Black-Out Periods</u>. Unless the Company otherwise permits in writing, for so long as a Participating Holder has an officer, director, partner or senior employee serving as a member of the Board of Directors of the Company, such Participating Holder shall not make any offers or sales of Registrable Securities under a Registration Statement during any Scheduled Black-Out Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Registration Procedures</u>. In the case of each Registration effected by the Company pursuant to this <u>Section 2</u>, the Company will keep the Participating Holders advised in writing as to the initiation of each Registration and as to the completion thereof. At its expense, the Company will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as promptly as practicable, prepare and file with the SEC such pre- and post-effective amendments to such Registration Statement, supplements to the Prospectus and such amendments or supplements to any Issuer Free Writing Prospectus as may be (i) reasonably requested by the Initiating Holder(s) (if any), (ii) reasonably requested by any other Participating Holder (to the extent such request relates to information relating to such Participating Holder), or (iii) necessary to keep such Registration effective for the period of time required by this Agreement, and comply with provisions of the applicable securities laws with respect to the sale or other disposition of all securities covered by such Registration Statement during such period in accordance with the intended method or methods of disposition by the sellers thereof set forth in such Registration Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) notify the Participating Holders and the managing underwriter or underwriters, if any, and (if requested) confirm such advice in writing and provide copies of the relevant documents, as promptly as practicable after notice thereof is received by the Company (i) when the applicable Registration Statement or any amendment thereto has been filed or becomes effective, and when the applicable Prospectus or Issuer Free Writing Prospectus or any amendment or supplement thereto has been filed, (ii) to the extent any of the following relates to the Participating Holders or information supplied by the Participating Holders, of any written comments by the SEC or any request by the SEC or any other federal or state governmental authority for amendments or supplements to such Registration Statement, Prospectus or Issuer Free Writing Prospectus or for additional information, (iii) of the issuance by the SEC of any stop order suspending the effectiveness of such Registration Statement or any order by the SEC or any other regulatory authority preventing or suspending the use of any Prospectus or any Issuer Free Writing Prospectus or the initiation or threatening of any proceedings for such purposes, (iv) if, at any time, the representations and warranties of the Company in any applicable underwriting agreement cease to be true and correct in all material respects, and (v) of the receipt by the Company or its legal counsel of any notification with respect to the suspension of the qualification of the Registrable Securities for offering or sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) promptly notify the Participating Holders and the managing underwriter or underwriters, if any, when the Company becomes aware of the happening of any event as a result of which the applicable Registration Statement, the Prospectus included in such Registration Statement (as then in effect) or any Issuer Free Writing Prospectus contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary in order to make the statements therein (in the case of such Prospectus or any Issuer Free Writing Prospectus, in light of the circumstances under which they were made) not misleading, and when any Issuer Free Writing Prospectus includes information that may conflict with the information contained in the Registration Statement, or, if for any other reason it shall be necessary during such time period to amend or supplement such Registration Statement, Prospectus or Issuer Free Writing Prospectus in order to comply with the Securities Act and, in either case as promptly as reasonably practicable thereafter, prepare and file with the SEC, and furnish without charge to the Participating Holders and the managing underwriter or underwriters, if any, an amendment or supplement to such Registration Statement, Prospectus or Issuer Free Writing Prospectus which shall correct such misstatement or omission or effect such compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) use its reasonable best efforts to prevent, or obtain the withdrawal of, any stop order or other order suspending the use of any Prospectus or any Issuer Free Writing Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) deliver to each Participating Holder and each underwriter, if any, without charge, as many copies of the applicable Prospectus (including each preliminary Prospectus), any Issuer Free Writing Prospectus and any amendment or supplement thereto as such Participating Holder or underwriter may reasonably request (it being understood that the Company consents to the use of such Prospectus, any Issuer Free Writing Prospectus and any amendment or supplement thereto by such Holder and the underwriters, if any, in connection with the offering and sale of the Registrable Securities thereby) and such other documents as such Participating Holder or underwriter may reasonably request in order to facilitate the disposition of the Registrable Securities by such Participating Holder or underwriter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) subject to the terms set forth in <u>Section 2.1(b)(i)</u> and <u>Section 2.3</u> hereof, on or prior to the date on which the applicable Registration Statement is declared effective, use its reasonable best efforts to register or qualify the Registrable Securities covered by such Registration Statement under such other securities or "blue sky" laws of such jurisdictions in the United States as any Participating Holder reasonably (in light of such Participating Holder's intended plan of distribution) requests and do any and all other acts and things that may be reasonably necessary or advisable to enable such Participating Holder to consummate the disposition of the Registrable Securities owned by such Participating Holder pursuant to such Registration Statement, except that the Company shall not for any such purpose be required to qualify generally to do business as a foreign corporation in any jurisdiction where it is not so qualified, subject itself to taxation in any such jurisdiction or consent to general service of process in any such jurisdiction;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) make such representations and warranties to the Participating Holders and the underwriters or agents, if any, in form, substance and scope as are customarily made by issuers in underwritten public offerings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) enter into such customary agreements (including underwriting and indemnification agreements) and take such other actions as the Initiating Holder(s) or the managing underwriter, if any, reasonably requests in order to expedite or facilitate the Registration and disposition of such Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) use its reasonable best efforts to obtain for delivery to the managing underwriter, if any, an opinion or opinions from counsel for the Company dated the effective date of the Registration Statement or, in the event of an underwritten offering, the date of the closing under the underwriting agreement, in form and substance as is customarily given to underwriters in an underwritten secondary public offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) in the case of an underwritten offering, use reasonable best efforts to obtain for delivery to the Company and the managing underwriter, if any, a "comfort" letter from the Company's independent certified public accountants in form and substance as is customarily given by independent certified public accountants in an underwritten secondary public offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) cooperate with each Participating Holder and the underwriters, if any, of such Registrable Securities and their respective counsel in connection with any filings required to be made with FINRA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) use its reasonable best efforts to cause all Registrable Securities covered by the applicable Registration Statement to be listed or quoted on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued by the Company are then listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) cooperate with the Participating Holders and the underwriters, if any, to facilitate the timely preparation and delivery of certificates, with requisite CUSIP numbers, representing Registrable Securities to be sold and not bearing any restrictive legends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) in the case of an underwritten offering, make reasonably available the senior executive officers of the Company to participate in the customary "road show" presentations that may be reasonably requested by the managing underwriter in any such underwritten offering and otherwise to facilitate, cooperate with, and participate in each proposed offering contemplated herein and customary selling efforts related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) use its reasonable best efforts to procure the cooperation of the Company's transfer agent in settling any offering or sale of Registrable Securities, including with respect to the transfer of physical security instruments into book-entry form in accordance with any procedures reasonably requested by the Holders or any managing underwriter(s);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) use its reasonable best efforts to take such actions as are under its control to become or remain a well-known seasoned issuer (as such term is defined in Rule 405 under the Securities Act) and not become an illegible issuer (as such term is defined in Rule 405 under the Securities Act) during the period when such Registration Statement remains in effect; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) make available for inspection by a representative of Participating Holders that are selling at least five percent (5%) of the Registrable Securities included in such Registration (and who is named in the applicable prospectus supplement as a Person who may be deemed to be an underwriter with respect to an offering and sale of Registrable Securities), the managing underwriter(s), if any, and any attorneys or accountants retained by such Holders or the managing underwriters(s), at the offices where normally kept, during reasonable business hours, financial and other records and pertinent corporate documents of the Company, and cause the officers, directors and employees of the Company to supply all information in each case reasonably requested by any such representative, managing underwriter, attorney or accountant in connection with such Registration Statement; <u>provided</u>, that if any such information is identified by the Company as being confidential or proprietary, each Person receiving such information shall take such actions as are reasonably necessary to protect the confidentiality of such information and shall sign customary confidentiality agreements reasonably requested by the Company prior to the receipt of such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Indemnification by the Company</u>. With respect to each Registration which has been effected pursuant to this <u>Section 2</u>, the Company agrees to indemnify and hold harmless, to the fullest extent permitted by law, (i) each of the Participating Holders and each of its officers, directors, limited or general partners and members thereof, (ii) each member, limited or general partner of each such member, limited or general partner, (iii) each of their respective Affiliates, officers, directors, shareholders, employees, advisors, and agents and each Person who controls (within the meaning of the Securities Act or the Exchange Act) such Persons and each underwriter, if any, and each person who controls (within the meaning of the Securities Act or the Exchange Act) any underwriter, against any and all claims, losses, damages, penalties, judgments, suits, costs, liabilities and expenses (or actions in respect thereof) (collectively, the "<u>Losses</u>") arising out of or based on (A) any untrue statement (or alleged untrue statement) of a material fact contained in any Registration Statement (including any Prospectus or Issuer Free Writing Prospectus) or any other document incident to any such Registration, qualification or compliance, (B) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any Prospectus or Issuer Free Writing Prospectus, in light of the circumstances under which they were made not misleading), or (C) any violation by the Company of the Securities Act or the Exchange Act applicable to the Company and relating to action or inaction required of the Company in connection with any such Registration, qualification or compliance, and will reimburse each of the Persons listed above for any reasonable and documented legal and any other expenses reasonably incurred in connection with investigating and defending any such Losses; <u>provided</u>, that the Company will not be liable in any such case to the extent that any such Losses arise out of or are based on any untrue statement or omission based upon written information furnished to the Company by the Participating Holders or underwriter and stated to be specifically for use therein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by the Participating Holders</u>. Each of the Participating Holders agrees (severally and not jointly) to indemnify and hold harmless, to the fullest extent permitted by law, the Company, each of its directors and officers and each underwriter, if any, of the Company's securities covered by such a Registration Statement, each Person who controls the Company (within the meaning of the Securities Act or the Exchange Act) or such underwriter, each other Participating Holder and each of their respective officers, directors, partners and members, and each Person controlling such Participating Holder (within the meaning of the Securities Act or the Exchange Act) against any and all Losses arising out of or based on (A) any untrue statement (or alleged untrue statement) of a material fact contained in any Registration Statement (including any Prospectus or Issuer Free Writing Prospectus) or any other document incident to any such Registration, qualification or compliance (including any notification or the like) made by such Participating Holder in writing or (B) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements by such Participating Holder therein not misleading (in the case of any Prospectus or Issuer Free Writing Prospectus, in light of the circumstances under which they were made not misleading) and will reimburse the Persons listed above for any reasonable and documented legal or any other expenses reasonably incurred in connection with investigating or defending any such Losses, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in reliance upon and in conformity with written information furnished to the Company by such Participating Holder and stated to be specifically for use therein; <u>provided</u>, <u>however</u>, that the obligations of each of the Participating Holders hereunder shall be limited to an amount equal to the net proceeds (after giving effect to any underwriters, discounts and commissions) such Participating Holder receives in such Registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Conduct of the Indemnification Proceedings</u>. Each party entitled to indemnification under this <u>Section 2.7(c)</u> (the "<u>Indemnified Party</u>") shall give notice to the party required to provide indemnification (the "<u>Indemnifying Party</u>") promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom; <u>provided</u>, that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld) and the Indemnified Party may participate in such defense at such party's expense (unless the Indemnified Party shall have reasonably concluded that there may be a conflict of interest between the Indemnifying Party and the Indemnified Party in such action, in which case the fees and expenses of counsel shall be at the expense of the Indemnifying Party), and <u>provided</u>, <u>further</u>, that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this <u>Section 2.7</u> unless the Indemnifying Party is prejudiced thereby. It is understood and agreed that the Indemnifying Party shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate legal counsel for all Indemnified Parties; <u>provided</u>, <u>however</u>, that where the failure to be provided separate legal counsel could potentially result in a conflict of interest on the part of such legal counsel for all Indemnified Parties, separate counsel shall be appointed for Indemnified Parties to the extent needed to alleviate such potential conflict of interest. No Indemnifying Party, in the defense of any such claim or litigation shall, except with the prior written consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with the defense of such claim and litigation resulting therefrom.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the indemnification provided for in this <u>Section 2.7</u> is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any Losses, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the statements or omissions (or alleged statements or omissions) which resulted in such Losses, as well as any other relevant equitable considerations. The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue (or alleged untrue) statement of a material fact or the omission (or alleged omission) to state a material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; <u>provided</u>, <u>however</u>, that the obligations of each of the Participating Holders hereunder shall be several and not joint and shall be limited to an amount equal to the net proceeds (after giving effect to any underwriters, discounts and commissions) such Participating Holder receives in such Registration and, <u>provided</u>, <u>further</u>, that no Person guilty of fraudulent misrepresentation (within the meaning of Section 11.6 of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this <u>Section 2.7(d)</u>, each Person, if any, who controls an underwriter or agent within the meaning of Section 15 of the Securities Act shall have the same rights to contribution as such underwriter or agent and each director of the Company, each officer of the Company who signed a Registration Statement, and each Person, if any, who controls the Company or a selling Holder within the meaning of Section 15 of the Securities Act shall have the same rights to contribution as the Company or such selling Holder, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to the limitations on the Holders' liability set forth in <u>Section 2.7(b)</u> and <u>Section 2.7(d)</u>, the remedies provided for in this <u>Section 2.7</u> are not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Party at law or equity. The remedies shall remain in full force and effect regardless of any investigation made by or on behalf of such Holder or any Indemnified Party and survive the transfer of such securities by such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The obligations of the Company and of the Participating Holders hereunder to indemnify any underwriter or agent who participates in an offering (or any Person, if any controlling such underwriter or agent within the meaning of Section 15 of the Securities Act) shall be conditioned upon the underwriting or agency agreement with such underwriter or agent containing an agreement by such underwriter or agent to indemnify and hold harmless the Company, each of its directors and officers, each other Participating Holder, and each Person who controls the Company (within the meaning of the Securities Act or the Exchange Act) or such Participating Holder against all Losses, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such underwriter or agent expressly for use in such filings described in this sentence.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Participating Holders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Participating Holders shall furnish to the Company such information regarding such Participating Holder and its partners and members, and the distribution proposed by such Holder, as the Company may reasonably request in writing and as shall be reasonably requested in connection with any Registration, qualification or compliance referred to in this <u>Section 2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that, either immediately prior to or subsequent to the effectiveness of any Registration Statement, any Participating Holder shall distribute Registrable Securities to its partners or members, such Participating Holder shall so advise the Company and provide such information as shall be necessary to permit an amendment to such Registration Statement to provide information with respect to such partners or members, as selling security holders. As soon as is reasonably practicable following receipt of such information, the Company shall file an appropriate amendment to such Registration Statement reflecting the information so provided. Any incremental expense to the Company resulting from such amendment shall be borne by such Participating Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Holder agrees that at the time that such Holder is a Participating Holder, upon receipt of any notice from the Company of the happening of any event of the kind described in <u>Section 2.6(c)</u>, such Holder shall forthwith discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until such Holder's receipt of the copies of a supplemented or amended Prospectus or Issuer Free Writing Prospectus or until such Holder is advised in writing by the Company that the use of the Prospectus or Issuer Free Writing Prospectus, as the case may be, may be resumed, and, if so directed by the Company, such Holder shall deliver to the Company all copies, other than any permanent file copies then in such Holder's possession, of the most recent Prospectus or any Issuer Free Writing Prospectus covering such Registrable Securities at the time of receipt of such notice. If the Company shall give such notice, the Company shall extend the period during which such Registration Statement shall be maintained effective by the number of days during the period from and including the date of the giving of notice pursuant to <u>Section 2.6(c)</u> to the date when the Company shall make available to such Holder a copy of the supplement or amended Prospectus or Issuer Free Writing Prospectus or is advised in writing that the use of the Prospectus or Issuer Free Writing Prospectus may be resumed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>Rule 144</u>. With a view to making available the benefits of certain rules and regulations of the SEC which may permit the sale of restricted securities to the public without Registration, the Company agrees to use its reasonable best efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act at any time after it has become subject to such reporting requirements (or, if the Company is not required to file such reports, it will, upon the reasonable request of the Holders holding a majority of the then outstanding Registrable Securities, make publicly available such necessary information for so long as necessary to permit sales pursuant to Rule 144 under the Securities Act).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <u>Termination</u>. The registration rights set forth in this <u>Section 2</u> shall terminate and cease to be available as to any securities held by a Holder at such time as such Holder (after owning) first ceases to own any Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <u>Lock-Up Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company agrees that, if requested by the managing underwriter in any underwritten public offering contemplated by this Agreement, it will enter into a customary "lock-up" agreement providing that it will not, directly or indirectly, sell, offer to sell, grant any option for the sale of, or otherwise dispose of any Common Stock or securities convertible into or exchangeable or exercisable for Common Stock (subject to customary exceptions), for a period of up to 60 days from the effective date of the Registration Statement pertaining to such Common Stock; <u>provided</u>, <u>however</u>, that any such lock-up agreement shall not prohibit the Company from directly or indirectly (i) selling, offering to sell, granting any option for the sale of or otherwise disposing of any Qualifying Employee Stock (or otherwise maintaining its employee benefits plans in the ordinary course of business) or (ii) issuing Common Stock or securities convertible into or exchangeable for Common Stock upon exercise or conversion of any option, right or convertible or exchangeable security. Each Holder shall coordinate with other Holders and, to the extent the Holders are aware of Other Stockholders, Other Stockholders such that the total number of days that the Company will be subject to such restrictions (including similar restrictions pursuant to any registration rights agreements with any Other Stockholders) as may be in effect in any 365-day period shall not exceed 120 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that any Holder is an Affiliate of the Company, if requested by the managing underwriter in any underwritten public offering permitted by this Agreement, such Holder will enter into a customary "lock-up" agreement providing that it will not sell, grant any option for the sale of, or otherwise dispose of any Common Stock outside of such public offering (subject to customary exceptions) for a period of up to 60 days from the effective date of the Registration Statement pertaining to such Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 Notwithstanding any provision of this Agreement to the contrary, in order for a Registration to be included as a Registration for purposes of this <u>Section 2</u>, the Registration Statement in connection therewith shall have been continually effective in compliance with the Securities Act and usable for resale for the full period established with respect to such Registration (except in the case of any suspension of sales pursuant to (i) a Scheduled Black-Out Period or (ii) <u>Section 2.6(c)</u> hereof, in which case such period shall be extended to the extent of such suspension).

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2.13 Notwithstanding any provision of this Agreement to the contrary, if the Company is required to file a post-effective amendment to a Registration Statement to incorporate the Company's quarterly and annual reports and related financial statements on Form 10-Q and Form 10-K, the Company shall use its reasonable best efforts to promptly file such post-effective amendment and may postpone or suspend effectiveness of such Registration Statement for a period not to exceed thirty (30) consecutive days to the extent the Company determines necessary to comply with applicable securities laws; <u>provided</u>, that the period by which the Company postpones or suspends the effectiveness of a shelf Registration Statement pursuant to this <u>Section 2.13</u> plus any suspension, deferral or delay pursuant to <u>Section 2.6(c)</u> shall not exceed 60 days in the aggregate in any twelve-month period.

#### SECTION 3. MISCELLANEOUS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Governing Law</u>. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE. EACH OF THE PARTIES HEREBY AGREES THAT ANY SUIT, ACTION OR PROCEEDING SEEKING TO ENFORCE ANY PROVISION OF, OR BASED ON ANY MATTER ARISING OUT OF OR IN CONNECTION WITH, THIS AGREEMENT (WHETHER BROUGHT BY ANY PARTY OR ANY OF ITS AFFILIATES OR AGAINST ANY PARTY OR ANY OF ITS AFFILIATES) SHALL BE BROUGHT IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE (OR IN THE EVENT, BUT ONLY IN THE EVENT, THAT SUCH COURT DOES NOT HAVE SUBJECT MATTER JURISDICTION OVER SUCH ACTION OR PROCEEDING, THE SUPERIOR COURT OF THE STATE OF DELAWARE (COMPLEX COMMERCIAL DIVISION) OR, IF SUBJECT MATTER JURISDICTION OVER THE ACTION OR PROCEEDING IS VESTED EXCLUSIVELY IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA, THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE) AND EACH OF THE PARTIES IRREVOCABLY SUBMITS TO THE JURISDICTION OF, AND VENUE IN, SUCH COURTS AND WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Interpretation; Headings</u>. The parties hereto have participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

Unless the context otherwise requires, as used in this Agreement: (i) "or" shall mean "and/or"; (ii) "including" and its variants mean "including, without limitation" and its variants; (iii) words defined in the singular have the parallel meaning in the plural and vice versa; (iv) references to "written" or "in writing" include in visual electronic form; (v) words of one gender shall be construed to apply to each gender; and (vi) the term "Section" refers to the specified Section of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Notices</u>. Any notice or other communication required or permitted to be given hereunder will be in writing and will be deemed to have been duly given if delivered by prepaid first-class mail, by email or other means of electronic communication or by hand-delivery and addressed as follows:

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if to the Company, to:

Howard Hughes Holdings Inc.

9950 Woodloch Forest Drive, Suite 1100

The Woodlands, Texas 77380

Attention: General Counsel <br> Email: [email address]

with a copy (which shall not constitute notice) to:

Hogan Lovells US LLP

Columbia Square

555 Thirteenth St, NW

Washington, DC 20004

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| | |
|:---|:---|
| Attention: | David Bonser |
|  | John Beckman |
|  | Stacey McEvoy |
| Email: | [email address] |
|  | [email address] |
|  | [email address] |

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and

Morgan, Lewis & Bockius LLP

2222 Market Street

Philadelphia, PA 19103

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| | |
|:---|:---|
| Attention: | Justin Chairman |
|  | Richard B. Aldridge |
| Email: | [email address] |
|  | [email address] |

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if to any Purchaser, to:

Pershing Square Holdco, L.P.

787 Eleventh Ave

New York, New York 10019

Attention: Chief Legal Officer <br> Email: legal@persq.com

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with a copy (which shall not constitute notice) to:

Sullivan & Cromwell LLP

125 Broad Street

New York, New York 10004

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| | |
|:---|:---|
| Attention: | Scott D. Miller |
|  | Ken Li |
| Email: | [email address] |
|  | [email address] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Reproduction of Documents</u>. This Agreement and all documents relating thereto, including, without limitation, any consents, waivers and modifications which may hereafter be executed, may be reproduced by the Holders by any photographic, photostatic, microfilm, microcard, miniature photographic or other similar process and the Holders may destroy any original document so reproduced. The parties hereto agree and stipulate that any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by the Holders in the regular course of business) and that any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Successors and Assigns</u>. Neither this Agreement nor any right or obligation hereunder may be assigned in whole or in part by any party without the prior written consent of the other parties hereto and any purported assignment in violation of this provision shall be void; <u>provided</u>, <u>however</u>, that the rights and obligations hereunder of the Purchasers may be assigned, in whole or in part, to any Person who acquires such Registrable Securities that (i) is an Affiliate of any of the Purchasers or (ii) is unable to immediately sell, without limitations (including, but not limited to, any limitation on volume or manner of sale) or restrictions under Rule 144, all Registrable Securities and other shares of Common Stock held by such Person (<u>provided</u>, that for this clause (ii), any such rights and obligations may be assigned solely with respect to such Registrable Securities) (each such Person described in clause (i) or (ii), a "<u>Permitted Assignee</u>"). Any assignment pursuant to this <u>Section 3.5</u> shall be effective and any Person shall become a Permitted Assignee only upon receipt by the Company of (1) a written notice from the transferring Holder stating the name and address of the transferee and identifying the number of shares of Registrable Securities with respect to which the rights under this Agreement are being transferred and, if fewer than all of the rights attributable to a Holder hereunder are to be so transferred, the nature of the rights so transferred and (2) a written instrument by which the transferee agrees to be bound by all of the terms and conditions applicable to a Holder of such Registrable Securities. Subject to the foregoing, this Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Several Nature of Commitments</u>. The obligations of each Holder hereunder are several and not joint and several, and relate only to the Registrable Securities held by such Holder from time to time. No Holder shall bear responsibility to the Company for breach of this Agreement or any information provided by any other Holder.

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3.7 <u>Additional Stockholders</u>. The parties hereto acknowledge that certain Persons may become stockholders of the Company and the Company may wish to grant such Persons registration rights with respect to the shares of Common Stock issued to such Persons. The Company may do so in its discretion so long as such registration rights are not inconsistent with the registration rights granted to the Holders hereunder and, if any registration rights granted are more favorable than those provided to Holders of Common Stock hereunder, conforming changes reasonably acceptable to the Purchasers are made to this Agreement to provide Holders hereunder with substantially similar rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <u>Entire Agreement</u>. The Transaction Documents constitute the entire agreement of the parties and their Affiliates and supersede all prior and contemporaneous agreements, arrangements or understandings, whether written or oral, among the parties and their Affiliates with respect to the subject matter of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <u>Amendment and Waiver</u>. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions of this Agreement may be waived, with (and only with) the written consent of the Company and the Holders holding a majority of the then outstanding Registrable Securities and any such amendment shall apply to all Holders and all of their Registrable Securities; <u>provided</u>, <u>however</u>, that, notwithstanding the foregoing, no amendment to this Agreement may adversely affect the rights of a Holder hereunder without the prior written consent of such Holder; <u>provided</u>, <u>further</u>, that, notwithstanding the foregoing, additional Holders may become party hereto upon an assignment of rights and obligations hereunder pursuant to <u>Section 3.5</u>; <u>provided</u>, <u>further</u>, <u>however</u>, that other than as set forth in <u>Section 3.5</u>, the Company may not add additional parties hereto without the consent of Holders holding a majority of the then outstanding Registrable Securities. The observance of any term of this Agreement may be waived by the party or parties waiving any rights hereunder; <u>provided</u>, that any such waiver shall apply to all Holders and all of their Registrable Securities only if made by Holders holding a majority of then-outstanding Registrable Securities.

No delay on the part of any party in exercising any right, power or privilege pursuant to this Agreement shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege pursuant to this Agreement, nor shall any single or partial exercise of any right, power or privilege pursuant to this Agreement, preclude any other or further exercise thereof or the exercise of any other right, power or privilege pursuant to this Agreement. The rights and remedies provided pursuant to this Agreement are cumulative and are not exclusive of any rights or remedies which any party otherwise may have at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <u>Injunctive Relief</u>. The parties agree that irreparable damage would occur in the event that any provisions of this Agreement were not performed in accordance with their specific terms. It is accordingly agreed that each of the parties shall be entitled to an injunction or injunctions (without necessity of proving damages or posting a bond or other security) to prevent breaches of this Agreement, and to enforce specifically the terms and provisions of this Agreement, in addition to any other applicable remedies at law or equity.

------

3.11 <u>WAIVER OF JURY TRIAL</u>. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTIONS, SUITS, DEMAND LETTERS, JUDICIAL, ADMINISTRATIVE OR REGULATORY PROCEEDINGS, OR HEARINGS, NOTICES OF VIOLATION OR INVESTIGATIONS ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER AND (B) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 <u>No Inconsistent Agreements</u>. The Company is not currently a party to any agreement which is, or could be inconsistent with, the rights granted to the Holders by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 <u>Severability</u>. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any person or entity or any circumstance, is found to be invalid or unenforceable in any jurisdiction, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other persons, entities or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other party (including via email or other electronic transmission), it being understood that each party need not sign the same counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 <u>Interpretation of This Agreement</u>. Where any provision in this Agreement refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

[**Remainder of Page Intentionally Left Blank**]

------

IN WITNESS WHEREOF, the undersigned have executed this Registration Rights Agreement as of the date first set forth above.

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| | | |
|:---|:---|:---|
| **HOWARD HUGHES HOLDINGS INC.** | **HOWARD HUGHES HOLDINGS INC.** | **HOWARD HUGHES HOLDINGS INC.** |
| By: | /s/ David O'Reilly | /s/ David O'Reilly |
|  | Name: | David O'Reilly |
|  | Title: | Chief Executive Officer |

---

---

| | | |
|:---|:---|:---|
| **PERSHING SQUARE HOLDCO, L.P.** | **PERSHING SQUARE HOLDCO, L.P.** | **PERSHING SQUARE HOLDCO, L.P.** |
| On behalf of itself | On behalf of itself | On behalf of itself |
| By: | /s/ William A. Ackman | /s/ William A. Ackman |
|  | Name: | William A. Ackman |
|  | Title: | Chief Executive Officer |
| **PERSHING SQUARE CAPITAL MANAGEMENT, L.P.** | **PERSHING SQUARE CAPITAL MANAGEMENT, L.P.** | **PERSHING SQUARE CAPITAL MANAGEMENT, L.P.** |
| On behalf of each of the Purchasers other than Pershing Square Holdco, L.P. | On behalf of each of the Purchasers other than Pershing Square Holdco, L.P. | On behalf of each of the Purchasers other than Pershing Square Holdco, L.P. |
| By: | /s/ William A. Ackman | /s/ William A. Ackman |
|  | Name: | William A. Ackman |
|  | Title: | Chief Executive Officer |

---

[*Signature Page to Registration Rights Agreement*]

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#### Schedule I

Pershing Square Holdco, L.P., a Delaware limited partnership

Pershing Square, L.P., a Delaware limited partnership

Pershing Square Holdings, Ltd., a Guernsey company

Pershing Square International, Ltd., a Cayman Islands exempted company

[*Schedule I to Registration Rights Agreement*]

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## Exhibit 10.22

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#### Exhibit 10.22

<u>INVESTMENT MANAGEMENT AGREEMENT</u>

Dated as of October 10, 2025

This Investment Management Agreement (this "<u>Agreement</u>") is made and entered into as of the date set forth above by and between Pershing Square USA, Ltd., a Delaware statutory trust (the "<u>Company</u>"), and Pershing Square Capital Management, L.P., a Delaware limited partnership (the "<u>Manager</u>" and, together with the Company, the "<u>Parties</u>"). Capitalized terms used in the preamble and recitals of this Agreement and not otherwise defined therein are defined in Section 1.

<u>R E C I T A L S</u>:

WHEREAS, the Company wishes to appoint the Manager, a registered investment adviser under the Advisers Act, to perform various investment management and advisory services for the Company, a closed-end management investment company registered under the 1940 Act;

WHEREAS, the Manager has agreed to furnish investment management and advisory services to the Company upon the terms and conditions herein set forth; and

WHEREAS, this Agreement has been approved in accordance with the provisions of the 1940 Act.

NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

Section 1.

<u>Definitions</u>.

Unless otherwise expressly provided in this Agreement, the following terms used in this Agreement shall have the following meanings:

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| | |
|:---|:---|
| "1940 Act" | means the Investment Company Act of 1940, as amended, including the rules and regulations promulgated thereunder. |
| "Administrator" | means any firm or firms as the Board may, in its discretion, select for the purpose of maintaining the Company's books and records and performing administrative services (which may include back-office and mid-office services) on behalf of the Company, including tax and accounting functions. |
| "Advisers Act" | means the Investment Advisers Act of 1940, as amended, including the rules and regulations promulgated thereunder. |

---

------

---

| | |
|:---|:---|
| "Affiliate" | means, with respect to any specified Person: |
|  | (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any Person that directly or indirectly controls, is directly or indirectly controlled by or is directly or indirectly under common control with such specified Person; |
|  | (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any Person that serves as a director or officer (or in any similar capacity) of such specified Person; and |
|  | (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any Person with respect to which such specified Person serves as a general partner or trustee (or in any similar capacity). |
|  | For purposes of this definition, "control" (including "controlled by" and "under common control with") means the direct or indirect possession of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. |
| "Agreement" | shall have the meaning set forth in the preamble hereof. |
| "Board" | means the Board of Trustees of the Company. |
| "Business Day" | means any weekday on which banks in New York, New York are open for normal banking business. |
| "By-Laws" | means the By-Laws of the Company, as amended, supplemented or amended and restated from time to time. |
| "CFTC" | means the U.S. Commodity Futures Trading Commission or any successor agency. |
| "Code of Ethics" | shall have the meaning set forth in Section 7(b) hereof. |
| "Company" | shall have the meaning set forth in the preamble hereof. |
| "Company Documents" | means the Declaration and the By-Laws. |
| "Declaration" | means the Amended and Restated Agreement and Declaration of Trust of the Company, as amended, supplemented or amended and restated from time to time. |
| "Disabling Conduct" | shall have the meaning set forth in Section 11 hereof. |
| "Disinterested Non-Party Trustees" | <br>shall have the meaning set forth in Section 12(c) hereof. |
| "Exchange Act" | means the Securities Exchange Act of 1934, as amended. |

---

------

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| | |
|:---|:---|
| "GAAP" | means U.S. generally accepted accounting principles. |
| "Indemnified Losses" | shall have the meaning set forth in Section 12(a). |
| "Indemnified Party" | means each of the Pershing Square Advisers, and the principals, partners, officers, employees, advisors and legal representatives (*e.g.*, executors, guardians and trustees) of any of them, including Persons formerly serving in such capacities. |
| "Licensed Name" | shall have the meaning set forth in Section 14 hereof. |
| "Management Fee" | shall have the meaning set forth in Section 8(a) hereof. |
| "Manager" | shall have the meaning set forth in the preamble hereof. |
| "NAV" | means the net asset value as determined by the Company or any of its agents, including the Manager and/or the Administrator, as the case may be. |
| "Other Accounts" | means other accounts (including investment companies or companies that would be investment companies but for an exception under Section 3(c) of the 1940 Act) to which any Pershing Square Adviser provides investment services from time to time. |
| "Parties" | shall have the meaning set forth in the preamble hereof. |
| "Pershing Square Advisers" | means, collectively, the Manager and its Affiliates. |
| "Person" | means a natural person, partnership, limited liability company, corporation, unincorporated association, joint venture, trust, estate or any other entity or any governmental agency or political subdivision thereof. |
| "Proceedings" | means claims, demands, actions, suits or proceedings (civil, criminal, administrative or investigative, which includes formal and informal inquiries and "sweep" examinations in connection with the Company's investment activity), actual or threatened. |
| "SEC" | means the U.S. Securities and Exchange Commission. |

---

------

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| | |
|:---|:---|
| "Security" and "Securities" | means interests commonly referred to as securities, other financial instruments of U.S. and non-U.S. entities and other assets, including capital stock; shares of beneficial interest; partnership interests and similar financial instruments; bonds, notes and debentures (whether subordinated, convertible or otherwise); currencies; commodities; physical and intangible assets; interest rate, currency, commodity, equity and other derivative products, including (i) futures contracts (and options thereon) relating to stock indices, currencies, U.S. Government securities and securities of non-U.S. governments, other financial instruments and all other commodities, (ii) swaps, options, swaptions, warrants, caps, collars, floors and forward rate agreements, (iii) spot and forward currency transactions and (iv) agreements relating to or securing such transactions; mortgage-backed obligations issued or collateralized by U.S. Federal agencies (including fixed-rate pass-throughs, adjustable rate mortgages, collateralized mortgage obligations, stripped mortgage-backed securities and REMICs); repurchase and reverse repurchase agreements; loans; structured finance instruments; accounts and notes receivable and payable held by trade or other creditors; trade acceptances; contract and other claims; executory contracts; participations; mutual funds, exchange traded funds and similar financial instruments; money market funds; obligations of the United States or any non-U.S. government, or any country, state, governmental agency or political subdivision thereof; commercial paper; certificates of deposit; bankers' acceptances; choses in action; trust receipts; and any other obligations and instruments or evidences of indebtedness of whatever kind or nature that exist now or are hereafter created; in each case, of any Person, whether or not publicly traded or readily marketable. |
| "Shareholders" | means the shareholders of the Company. |
| "Trustees" | means the members of the Company's Board of Trustees. |

---

Section 2.

<u>Interpretation and Construction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) common nouns and pronouns and any variation thereof shall be deemed to refer to masculine, feminine, or neuter, singular or plural, as the identity of the Person, Persons or other reference in the context requires;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) where specific language is used to clarify by example a general statement contained in this Agreement, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "any" shall mean "one or more";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "including" (and with correlative meaning "include") means including without limiting the generality of any description preceding such term; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all references to "funds", "dollars" or "payments" shall mean United States dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The language used in this Agreement has been chosen by the Parties to express their mutual intent, and no rule of construction or interpretation requiring this Agreement to be construed or interpreted against any Party shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Unless otherwise specified in this Agreement, all accounting terms used in this Agreement shall be interpreted and all accounting determinations hereunder shall be made in accordance with GAAP.

Section 3.

<u>Appointment of the Manager</u>. Under the terms of this Agreement and subject to the overall supervision of the Board, the Manager shall manage the day-to-day operations of, and provide investment advisory and management services to, the Company. The Manager undertakes to give the Company the benefit of its best judgment and efforts in rendering its services.

Section 4.

<u>Authority and Responsibility of the Manager</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with its obligations hereunder, subject to the overall supervision of the Board, the Manager shall have the authority for and in the name of the Company, subject to Sections 5 and 7 hereof, to perform any acts as the Manager deems necessary or appropriate in order to act as investment adviser to the Company, including to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provide research and analysis and direct the formulation of investment strategies for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) acquire a long position or establish a short position with respect to any Security and make purchases or sales increasing, decreasing or liquidating such position or changing from a long position to a short position or from a short position to a long position, without any limitation as to the frequency of the fluctuation in such positions or as to the frequency of the changes in the nature of such positions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) purchase Securities and hold them for investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) enter into contracts for or in connection with investments in Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) possess, transfer, mortgage, pledge or otherwise deal in, and exercise all rights, powers, privileges and other incidents of ownership or possession with respect to, Securities and other property and funds held or owned by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) lend, either with or without security, any Securities, funds or other properties of the Company and, from time to time, without limit as to the amount, borrow or raise funds and secure the payment of obligations of the Company by mortgage upon, or pledge or hypothecation of, or guarantee of, all or any part of the property of the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) open, maintain and close accounts, including margin and custodial accounts, with brokers and dealers, which power shall include the authority to issue all instructions and authorizations to brokers and dealers regarding the Securities and/or money therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) pay, or authorize the payment and reimbursement of, brokerage commissions that may be in excess of the lowest rates available that are paid to brokers who execute transactions for the account of the Company and who (A) supply, or pay for (or rebate a portion of the Company's brokerage commissions to the Company for payment of) the cost of, brokerage, research or execution services utilized by the Company and/or (B) pay for (or rebate a portion of the Company's brokerage commissions for the payment of) obligations of the Company (as provided in Section 10) or the Company's share of such obligations; <u>provided</u> that the selection of a broker shall be made on the basis of seeking best execution and other relevant considerations, including: confidentiality; price quotes; the size of the transaction and ability to find liquidity; the broker-dealer's promptness of execution; the nature of the market for the financial instrument; the timing of the transaction; the difficulty of execution; the broker-dealer's expertise in the specific financial instrument or sector in which the Company seeks to trade; the extent to which the broker-dealer makes a market in the financial instrument involved or has access to such markets; the broker-dealer's skill in positioning the financial instruments involved; the broker-dealer's financial stability; the broker-dealer's reputation for diligence, fairness and integrity; the quality of service rendered by the broker-dealer in other transactions for the Manager; the quality and usefulness of brokerage and research services and investment ideas presented by the broker-dealer or third parties through the broker-dealer; the broker-dealer's willingness to correct errors; the broker-dealer's ability to accommodate any special execution or order handling requirements that may surround the particular transaction; and other factors deemed appropriate by the Manager. The Manager may, but need not, solicit competitive bids and does not have an obligation to execute trades solely based on the lowest available commission cost or spread;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) open, maintain and close accounts, including custodial accounts, with banks and wire funds, draw checks, or make other orders for the payment of monies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) enter into trades in Securities through a market-maker ("interpositioning") and engage in "step-out" transactions in which the Company pays commissions in respect of a transaction to one broker, whereas the transaction is executed by a different broker;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) allocate investment opportunities among the Company and the Other Accounts in a manner that the Manager believes is fair and reasonable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) provide the Administrator or other service providers to the Company, with such information and instructions as may be necessary to enable such service providers to perform their duties in accordance with the applicable agreements;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) engage attorneys, independent accountants, other service providers and such other Persons as the Manager may deem necessary or advisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) authorize any partner, member, employee or other agent of the Pershing Square Advisers or other agent of the Company to act for and on behalf of the Company in all matters incidental to the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) in any wind down of the Company's operations, manage, on behalf of the Company, the realization of the Company's assets and the distribution thereof to the Shareholders

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) on behalf of the Company, conduct relations with administrators, custodians, depositories, transfer agents, pricing agents, investor support service providers, investor relations providers, dividend disbursing agents, other shareholder servicing agents, accountants, attorneys, underwriters, brokers and dealers, insurers, banks and such other persons in any such other capacity deemed to be necessary or desirable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) do any and all acts on behalf of the Company as the Manager may deem necessary or advisable in connection with the maintenance and administration of the Company, and exercise all rights of the Company, with respect to its interest in any Person, including the voting of Securities, participation in arrangements with creditors of the Company, the institution and settlement or compromise of Proceedings and other like or similar matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For so long as this Agreement remains in effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Manager shall have sole authority to make investment decisions for and to determine how to vote any Securities held by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Manager shall have sole responsibility with respect to all matters that, pursuant to the U.S. Commodity Exchange Act and the regulations and interpretations of the CFTC or the staff thereof, as they may be amended or supplemented from time to time, must be performed by a registered "commodity pool operator," including, without limitation, retaining and terminating the Company's commodity trading advisor(s) and its futures commission merchant(s), and the Manager agrees to register as a commodity pool operator with the CFTC as such registration may be required with respect to the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Company agrees that it shall not declare or pay any cash or in-kind distributions to the Shareholders, including, without limitation, by way of (interim) dividend or share repurchases, without prior consultation with the Manager; and no distributions to the Shareholders shall be paid in excess of the amounts permitted under applicable law or approved by the Board.

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Section 5.

<u>Control and Periodic Reports</u>. The activities engaged in by the Manager on behalf of the Company shall be subject to the control of the Board. The Manager shall submit such periodic reports to the Board regarding the Manager's activities hereunder as the Board may reasonably request.

Section 6.

<u>Status of the Manager</u>. The Manager shall, for all purposes hereof, be an independent contractor and not an employee of the Company, and nothing in this Agreement shall be construed as making the Company a partner or co-venturer with any of the Pershing Square Advisers or any other Person.

Section 7.

<u>Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All investments of the Company and other activities undertaken by the Manager on behalf of the Company shall at all times conform to, and be in accordance with, the requirements imposed by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any provisions of applicable law, including the 1940 Act and the Advisers Act and the rules and regulations of the SEC thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Company Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any policies adopted by the Board;

<u>provided</u>, <u>however</u>, that in the case of clauses (ii) and (iii) above the Manager shall not be bound by any update of or modification or amendment to the Company Documents or policies of the Board adopted after the date hereof to the extent such update, modification or amendment affects the activities of the Manager hereunder, unless and until the Manager has been informed by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Manager will maintain a written code of ethics (the "<u>Code of Ethics</u>") that complies with the requirements of Rule 17j-1 under the 1940 Act, a copy of which will be provided to the Company, and will institute procedures reasonably necessary to prevent Access Persons (as defined in Rule 17j-1 under the 1940 Act) from violating its Code of Ethics. The Manager will follow such Code of Ethics in performing its services under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Manager will maintain compliance policies and procedures adopted pursuant to Rule 206(4)-7 under the Advisers Act that will satisfy the requirements of Rule 38a-1 under the 1940 Act, a copy of which will be provided to the Company, and follow such compliance policies and procedures in performing its services under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Manager will cooperate with the chief compliance officer of the Company in connection with the implementation and operation of the Company's compliance policies and procedures adopted pursuant to Rule 38a-1 under the 1940 Act, and will prepare necessary reports and provide the Company's chief compliance officer with access to information reasonably necessary for the Company to comply with Rule 38a-1.

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Section 8.

<u>Compensation of the Manager</u>. The Company agrees to pay the Manager and the Manager agrees to accept as full compensation for all services rendered by the Manager as such, a quarterly fee (the "<u>Management Fee</u>") each fiscal quarter equal to 0.50% (2.0% per annum) of the NAV of the Company on the last day of the previous fiscal quarter. The Management Fee shall be calculated and paid in advance on the first Business Day of each fiscal quarter. For any period of less than a fiscal quarter during which this Agreement is in effect and the Management Fee is payable to the Manager, the Management Fee shall be prorated for such period based on the proportion such period bears to an assumed fiscal quarter of 91 days.

Section 9.

<u>Expenses of the Manager</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the term of this Agreement, the Manager shall pay all costs and expenses relating to the general operation of its business, including its administrative expenses, employment expenses, office expenses, rent, and all or any part of the Manager's legal expenses that are not incurred for the benefit of the Company (or, for the avoidance of doubt, the benefit of Other Accounts). The Manager, and not the Company, shall pay the compensation of all officers and Trustees of the Company who are its "affiliated persons" as defined in the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All costs and expenses incurred by the Manager on behalf of the Company which are not specifically assumed by the Manager under this Section 9 shall be borne by the Company in accordance with Section 10 hereof.

Section 10.

<u>Expenses of the Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as provided in Section 9, the Company will bear all other costs, fees and expenses of its operations and transactions, including those relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Management Fee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the cost of calculating NAV, including the cost of any third-party pricing or valuation services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) fees and expenses associated with investment research and due diligence, including fees and expenses relating to newswire, quotation equipment and services, market data services, third-party providers of research, publications, periodicals, subscriptions and database services, data processing and computer software expenses, due diligence, providers of specialized data and/or analysis related to companies, sectors or asset classes in which the Company has made or intends to make an investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) accounting, auditing, entity-level taxes imposed on or with respect to the Company and tax preparation fees and expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) professional fees and expenses (including fees and expenses of investment bankers, appraisers, public and government relations firms and other consultants and experts);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) fees and expenses (including travel and lodging expenses) associated with corporate engagement campaigns (both long and short), such as fees and expenses related to event hosting and production, public presentations, production, preparation and dissemination of any letters or other communications with respect to plans and proposals regarding the management, ownership, business and capital structure of any portfolio company or prospective investment, creating and maintaining informational websites and engaging in online campaigns including via social media, public relations, public affairs and government relations, forensic and other analyses and investigations, proxy contests, solicitations and tender offers and compensation, indemnification and expenses of any nominees proposed by the Manager as directors or executives of portfolio companies and all related expenses (such as all costs incurred in connection with identifying and recruiting directors to serve on the board of a portfolio company, proxy solicitors, public relations and other relevant documents, the negotiation of side letters and other related costs);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) fees and expenses (including travel and lodging expenses) relating to unaffiliated advisers, consultants and finders and/or introducers relating to investments and/or prospective investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) website development and maintenance, media, marketing printing and postage expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) brokerage fees and commissions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) fees and expenses relating to short sales (including dividend and stock borrowing expenses);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) clearing and settlement charges, custodial fees, bank service fees, margin and other interest expense and transaction fees, filing and registration fees (*e.g.*, "blue sky" and corporate filing fees and expenses), insurance expenses, initial offering and organizational expenses and payments for custody of the Company's assets and for the performance of administrative services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) fidelity bond, Trustees and officers errors and omissions liability insurance and other insurance premiums;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) legal fees and expenses (including those expenses associated with attending, and preparing for Board meetings, as applicable, and generally serving as counsel to the Company or the independent Trustees, indemnification expenses and fees, expenses, fines, penalties, damages or settlements relating to or arising out of regulatory or similar investigations, inquiries and "sweeps" and pending, threatened and future litigation arising out of the Company's investments);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) underwriting costs and any costs and expenses associated with or related to due diligence performed with respect to the Company's offering of its securities, including, but not limited to, costs associated with or related to due diligence activities performed by, on behalf of, or for the benefit of broker-dealers, registered investment advisors and third-party due diligence providers;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) costs incident to payment of dividends or distributions by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) costs associated with the Company's share repurchase program, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) costs associated with reporting and compliance obligations under the 1940 Act and applicable federal and state securities laws, including compliance with the Sarbanes-Oxley Act of 2002;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) any fees, expenses and other costs related to any Proceeding arising out of or in connection with current and past investments (including Proceedings alleging violations of laws, regulations, breach of contract or tort), subject to applicable limitations on indemnification as set forth in this Agreement, the Company Documents and applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) fees and expenses (including legal fees and expenses) relating to regulatory and self-regulatory organization filings and compliance pertaining to the Company's business and activities, investments or prospective investments, including fees and expenses related to the listing of the Company's securities on the New York Stock Exchange or any other national securities exchange and the Company's required filings and reporting under the Exchange Act, Hart-Scott-Rodino Act, filings and other similar filings, including fees and expenses incurred as a result of failing to make such filings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) fees and expenses related to the organization of the Company, including fees and expenses related to the Company's formation, legal fees and professional and other fees related to the recruitment of the Company's Trustees who are not "interested persons" of the Company (as defined in Section 2(a)(19) of the 1940 Act);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) fees and expenses incurred in the formation, maintenance and liquidation of any special purpose vehicles formed to effect or facilitate the acquisition of any investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) wind-up and liquidation fees and expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) other fees and expenses similar in type and nature to the fees and expenses described above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; other Company fees and expenses as approved by the Board from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any of the expenses listed in Section 10(a) are incurred jointly for the account of the Company and any Other Accounts, such expenses shall be allocated among the Company and such Other Accounts in proportion to the size of the investment made by each to which such expense relates, or in such other manner as the Manager considers fair and equitable.

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Section 11.

<u>Exculpation</u>. The Indemnified Parties will not be liable for any error of judgment or mistake of law or for any loss suffered by the Company in connection with the performance of this Agreement, except a loss resulting from a breach of fiduciary duty with respect to the receipt of compensation for services or a loss resulting from willful misfeasance, bad faith or gross negligence on its part in the performance of its duties or from reckless disregard by it of its duties and obligations under this Agreement (as the same shall be determined in accordance with the 1940 Act and any interpretations or guidance by the SEC or its staff thereunder) ("<u>Disabling Conduct</u>").

Section 12.

<u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall indemnify and hold harmless each Indemnified Party against any costs, charges, expenses, losses, damages or liabilities incurred or sustained by such Indemnified Party (collectively, "<u>Indemnified Losses</u>") arising from or in connection with, or concerning, the conduct of the Company's business or affairs or the execution or discharge of the duties, powers, authorities or discretions of the Pershing Square Advisers hereunder, including any costs, charges, expenses, losses, damages or liabilities incurred by the Indemnified Party in defending (whether successfully or otherwise) any Proceedings arising from or in connection with, or concerning, the Company's business or its affairs or the execution or discharge of the duties, powers, authorities or discretions of the Pershing Square Advisers hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any of the foregoing to the contrary, the provisions of this Section 12 shall not be construed so as to provide for the indemnification of, or advancement of expenses to, an Indemnified Party for any Disabling Conduct, but shall be construed so as to effectuate the provisions of this Section 12 to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company may, but is not required to, make advance payments to or on behalf of any Indemnified Party in connection with the expenses of defending any Proceeding with respect to which indemnification might be sought hereunder if the Company receives a written affirmation of the Indemnified Party's good faith belief that the standard of conduct necessary for indemnification has been met and a written undertaking to reimburse the Company unless it is subsequently determined that such Indemnified Party is entitled to such indemnification and if the Trustees determine that the facts then known to them would not preclude indemnification. In addition, at least one of the following conditions must be met: (i) the Indemnified Party shall provide security for such undertaking, (ii) the Company shall be insured against losses arising by reason of any unlawful advance, or (iii) a majority of a quorum consisting of Trustees who are neither "interested persons" of the Company (as defined in Section 2(a)(19) of the 1940 Act) nor parties to the Proceeding ("<u>Disinterested Non-Party Trustees</u>"), or an independent legal counsel in a written opinion, shall determine, based on a review of readily available facts (as opposed to a full trial-type inquiry), that there is reason to believe that the Indemnified Party ultimately will be found entitled to indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All determinations with respect to the standards for indemnification hereunder shall be made (i) by a final decision on the merits by a court or other body before whom the proceeding was brought that such Indemnified Party is not liable or is not liable by reason of Disabling Conduct, or (ii) in the absence of such a decision, by (A) a majority vote of a quorum of the Disinterested Non-Party Trustees, or (B) if such a quorum is not obtainable or, even if obtainable, if a majority vote of such quorum so directs, independent legal counsel in a written opinion. All determinations that advance payments in connection with the expense of defending any Proceeding shall be authorized and shall be made in accordance with Section 12(c).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The rights accruing to any Indemnified Party under these provisions shall not exclude any other right to which such indemnitee may be lawfully entitled.

Section 13.

<u>Activities of the Manager and Others</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Pershing Square Advisers may engage, simultaneously with their investment management activities on behalf of the Company, in other businesses, and may render services similar to those described in this Agreement for other Persons, and shall not by reason of such engaging in other businesses or rendering of services for others be deemed to be acting in conflict with the interests of the Company. The Pershing Square Advisers, in their individual capacities, may be shareholders, directors, employees, agents or officers of the Company (or of any entity in which the Company holds any Securities) but shall not be deemed by reason of such functions to have interests that are in conflict with the interests of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The investment management services of the Manager under this Agreement are not, and are not deemed, exclusive and the Pershing Square Advisers shall be free to render similar services to others. Nothing in this Agreement shall limit or restrict the right of any principal, partner, officer or employee of the Manager to engage in any other business or to devote his or her time and attention in part to any other business.

Section 14.

<u>Use of Name</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>License Grant</u>. The Manager hereby grants to the Company, and the Company hereby accepts from the Manager, a fully paid-up, royalty-free, non-exclusive, non-transferable worldwide license to use "Pershing Square" (the "<u>Licensed Name</u>") during the term of this Agreement, solely (i) in connection with the conduct of the Company's business and (ii) as part of the trademark, corporate name or trade name "Pershing Square USA, Ltd." The Company shall have no right to use the Licensed Name standing alone or to use any modification, stylization or derivative of the Licensed Name without prior written consent of the Manager in its sole discretion. All rights not expressly granted to the Company pursuant to this Section 14 shall remain the exclusive property of the Licensed Name owner. Nothing in this Section 14 shall preclude the Manager, its Affiliates, or any of its respective successors or assigns from using or permitting other entities to use the Licensed Name whether or not such entity directly or indirectly competes or conflicts with the Company's business in any manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Ownership</u>. The Company acknowledges and agrees that, as between the parties, the Manager is the sole owner of all right, title, and interest in and to the Licensed Name. The Company agrees not to do anything inconsistent with such ownership, including directly or indirectly challenging, contesting or otherwise disputing the validity or enforceability of, or the Manager's ownership of or right, title or interest in the Licensed Name (and the associated goodwill), including without limitation, arising out of or relating to any third-party claim, allegation, action, demand, proceeding or suit regarding enforcement of this Section 14 of the Agreement or involving any third party. The parties intend that any and all goodwill in the Licensed Name arising from the Company's or any applicable sublicensee's use of the Licensed Name shall inure solely to benefit the Manager. Notwithstanding the foregoing, in the event that the Company is deemed to own any rights to the Licensed Name, the Company hereby irrevocably assigns (or shall cause such sublicensee to assign), without further consideration, such rights to the Manager together with all goodwill associated therewith.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Sublicensing</u>. The Company shall not sublicense its rights under this Agreement except to a current or future majority-owned subsidiary of the Company, and then only with the prior written consent of the Manager, <u>provided</u> that (a) no such subsidiary shall use the Licensed Name as part of a name other than the Company name without the prior written consent of the Manager in its sole discretion and (b) any such sublicense shall terminate automatically, with no need for written notice, if (x) such entity ceases to be a majority-owned subsidiary, (y) this Agreement terminates for any reason or (z) the Manager gives notice of such termination. The Company shall be responsible for any such sublicensee's compliance with the provisions of this Agreement, and any breach by a sublicensee of any such provision shall constitute a breach of this Agreement by the Company. Neither the Company nor any of its current or future subsidiaries shall use a new trademark, corporate name, trade name or logo that contains the Licensed Name without the prior written consent of the Manager in its sole discretion, and any resulting license shall be governed by a new agreement between the applicable parties and/or an amendment to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Compliance</u>. In order to preserve the inherent value of the Licensed Name, the Company agrees to use reasonable efforts to ensure that it maintains the quality of the Company's business and the operation thereof equal to the standards prevailing in the operation of the Manager's and the Company's business as of the date of this Agreement. The Company further agrees to use the Licensed Name in accordance with such quality standards as may be reasonably established by the Manager and communicated to the Company from time to time in writing, or as may be agreed to by the Manager and the Company from time to time in writing. The Company shall notify the Manager promptly after it becomes aware of any actual or threatened infringement, imitation, dilution, misappropriation or other unauthorized use or conduct in derogation of the Licensed Name. The Manager and its Affiliates shall have the sole right to bring any action to remedy the foregoing, and the Company shall cooperate with the Manager in same, at the Manager's expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Upon Termination</u>. Upon expiration or termination of this Agreement, all rights and license granted to the Company under this Section 14 with respect to the Licensed Name shall cease, and the Company shall immediately discontinue use of the Licensed Name.

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Section 15.

<u>Limitations on Reference to Manager</u>. The Company shall not distribute or circulate any sales literature, promotional or other material which contains any reference to the Manager without the prior approval of the Manager, and shall submit in draft form all such materials requiring approval of the Manager, allowing sufficient time for review by the Manager and its counsel prior to any deadline for printing or publication. If the Manager ceases to furnish services to the Company, the Company at its expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as promptly as practicable, shall take all necessary action to cause the Company Documents to be amended to accomplish a change of name (or change of derivative such as the ticker or trading symbol) to eliminate any reference to the Manager; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) within 60 days after the date as of which the Manager ceases to furnish services to the Company, shall cease to use in any other manner, including use in any sales literature or promotional material, the name of the Manager, except as otherwise required by applicable law, regulations or rules of a self-regulatory organization, including a stock exchange, or for purposes of regulatory filings or reporting as required by applicable law, regulations or rules of a self-regulatory organization, including a stock exchange.

Section 16.

<u>Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall become effective as of the date hereof and remain in effect and, unless sooner terminated with respect to the Company as provided herein, shall continue in effect for a period of two years. Thereafter, if not terminated, this Agreement shall continue in effect with respect to the Company for successive periods of 12 months, <u>provided</u> such continuance is specifically approved at least annually by both:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the vote of a majority of the Board or the vote of a majority of the outstanding voting securities of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the vote of a majority of the Trustees who are not parties to this Agreement or interested persons of any party to this Agreement, cast in person at a meeting called for the purpose of voting on such approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, this Agreement may be terminated (i) by the Company at any time, without the payment of any penalty, upon giving the Manager 60 days' written notice (which notice may be waived by the Manager), <u>provided</u> that such termination by the Company shall be directed or approved by the vote of a majority of the Board or by the vote of a majority of the outstanding voting securities of the Company, or (ii) by the Manager on 60 days' written notice to the Company (which notice may be waived by the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary contained herein, this Agreement will immediately terminate in the event of its assignment (as defined in the 1940 Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Agreement may be terminated by either Party (i) in case of dissolution or liquidation of the other Party, (ii) if a receiver or provisional liquidator or administrator or similar officer is appointed over any of the assets of the other Party or (iii) if the other Party commits a material breach of its obligations under this Agreement and such breach remains uncured for more than 30 calendar days after notice thereof is delivered to the Party in breach by the non-breaching Party in accordance with this Agreement, at any time by the non-breaching Party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) As used in this Section 16, the terms "majority of the outstanding voting securities," "interested person" and "assignment" shall have the same meanings of such terms in the 1940 Act.

Section 17.

<u>Choice of Law</u>. This Agreement shall be governed by and construed in accordance with the laws of the State of New York for contracts to be performed entirely therein without reference to choice of law principles thereof and in accordance with the applicable provisions of the 1940 Act.

Section 18.

<u>Severability</u>. If any provision of this Agreement is invalid or unenforceable under any applicable law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such applicable law. Any provision hereof which may be held invalid or unenforceable under any applicable law shall not affect the validity or enforceability of any other provisions hereof, and to this extent the provisions hereof shall be severable.

Section 19.

<u>Forum</u>. To the fullest extent permitted by law, in the event of any Proceeding arising out of the terms and conditions of this Agreement, the parties hereto irrevocably (i) consent and submit to the exclusive jurisdiction of the Supreme Court, State of New York, New York County and of the U.S. District Court for the Southern District of New York, (ii) waive any defense based on doctrines of venue or *forum non conveniens*, or similar rules or doctrines, and (iii) agree that all claims in respect of such a Proceeding must be heard and determined exclusively in the Supreme Court, State of New York, New York County or the U.S. District Court for the Southern District of New York and any appellate court thereof. Process in any such Proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.

Section 20.

<u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each notice relating to this Agreement shall be in writing and delivered in person, by registered or certified mail, by FedEx or similar overnight courier service, by electronic mail (e-mail) or by facsimile, to the intended recipient as follows:

*If to the Company:*

Pershing Square USA, Ltd.

787 Eleventh Avenue, 9th Floor

New York, New York 10019

E-mail: legal@persq.com

*If to the Manager:*

Pershing Square Capital Management, L.P.

787 Eleventh Avenue, 9th Floor

New York, New York 10019

Attn: Chief Legal Officer

E-mail: legal@persq.com

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With an additional copy to:

Sullivan & Cromwell LLP

125 Broad Street

New York, New York 10004-2498

Attn: William Farrar

E-mail: [email address]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any party hereto may designate a new address by notice to that effect given to the other party. Unless otherwise specifically provided in this Agreement, a notice shall be deemed to have been effectively given when delivered personally, if delivered on a Business Day; the next Business Day after personal delivery if delivered personally on a day that is not a Business Day; four Business Days after being deposited in the mail, postage prepaid, return receipt requested, if mailed; on the next Business Day after being deposited for next day delivery with Federal Express, DHL or similar overnight courier; when sent, if e-mailed on a Business Day; the next Business Day following the day on which the e-mail is sent if e-mailed on a day that is not a Business Day; when receipt is acknowledged.

Section 21.

<u>Entire Agreement</u>. This Agreement contains all of the terms agreed upon or made by the Parties relating to the subject matter of this Agreement, and supersedes all prior and contemporaneous agreements, negotiations, correspondence, undertakings, communications and public or private disclosures of the Parties, oral or written, respecting such subject matter.

Section 22.

<u>Amendments and Waivers</u>. No provision of this Agreement may be amended, modified, waived or discharged except as agreed to in writing by the Parties. The failure of a Party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver thereof or deprive that Party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

Section 23.

<u>Binding Effect</u>. This Agreement shall be binding upon and inure to the benefit of the Company, the Manager, each Indemnified Party and their respective successors and permitted assigns. Any Person that is not a signatory to this Agreement but is nevertheless conferred any rights or benefits hereunder (*e.g.*, Indemnified Parties other than the Manager) shall be entitled to such rights and benefits as if such Person were a signatory hereto, and the rights and benefits of such Person hereunder may not be impaired without such Person's express written consent. Other than expressly provided for in Section 12 of this Agreement, this Agreement does not and is not intended to confer any rights or remedies upon any person other than the parties to this Agreement; there are no third-party beneficiaries of this Agreement, including but not limited to the shareholders of the Company.

Section 24.

<u>Headings</u>. The headings of the Sections of this Agreement are for convenience of reference only, and are not to be considered in construing the terms and provisions of this Agreement. References to "Section" in this Agreement shall be deemed to refer to the indicated Section of this Agreement, unless the context clearly indicates otherwise.

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Section 25.

<u>Counterparts</u>. This Agreement may be executed through the use of separate signature pages or in any number of counterparts, all of which taken together shall constitute one and the same instrument. Each Party understands and agrees that any portable document format (PDF) file, facsimile or other reproduction of its signature on any counterpart shall be equal to and enforceable as its original signature and that any such reproduction shall be a counterpart hereof that is fully enforceable in any court or arbitral panel of competent jurisdiction.

Section 26.

<u>Survival</u>. The provisions of Sections 1 and 2, Section 8 (only to the extent that the Management Fee is earned by the Manager upon or prior to termination of this Agreement), Sections 9 to 15 and Sections 17 to 27 shall survive the termination of this Agreement.

Section 27.

<u>Waiver of Jury Trial</u>. **EACH PARTY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ITS RIGHT TO A TRIAL BY JURY TO THE EXTENT PERMITTED BY LAW IN ANY PROCEEDING ARISING OUT OF THE TERMS AND CONDITIONS OF THIS AGREEMENT. THIS WAIVER APPLIES TO ANY PROCEEDING, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. EACH PARTY ACKNOWLEDGES THAT IT HAS RECEIVED THE ADVICE OF COMPETENT COUNSEL.**

[*Signature pages follow.*]

------

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first set forth above.

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| | |
|:---|:---|
| PERSHING SQUARE USA, LTD. | PERSHING SQUARE USA, LTD. |
| By: | /s/ Michael Gonnella |
| Name: | Michael Gonnella |
| Title: | Chief Financial Officer |
| By: | /s/ Halit Coussin |
| Name: | Halit Coussin |
| Title: | Chief Compliance Officer |

---

------

---

| | | |
|:---|:---|:---|
| PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. |
| By: | PS Management GP, LLC, its general partner | PS Management GP, LLC, its general partner |
|  | By: | /s/ William A. Ackman |
|  | Name: | William A. Ackman |
|  | Title: | Authorized Signatory |

---

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## Exhibit 10.23

**Exhibit 10.23**

![](ny20040230x14_ex10-23image01.jpg)

**THIRD AMENDED AND RESTATED LINE OF CREDIT NOTE**

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| | |
|:---|:---|
| $45000000.00 | Dated as of January 31, 2021 |

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For value received, Pershing Square Capital Management, L.P. (the "Borrower"), promises to pay to JPMorgan Chase Bank, N.A. (the "Bank"), the principal amount of each loan made by the Bank to the Borrower or, if less, the total unpaid principal amount of all Variable Loans and Short-Term Fixed Loans (each, a "Loan" and, collectively, the "Loans") made to the Borrower by the Bank under this Third Amended and Restated Line of Credit Note (as amended, restated, supplemented or otherwise modified from time to time in accordance with its terms, the "Note"), up to an aggregate principal amount of Forty-Five Million and 00/100 Dollars ($45,000,000.00), on the Maturity Date (as defined below) of each such Loan, together with interest at such rates and payable on such dates as set forth below. No Maturity Date may be later than the Expiry Date as set forth in the most recent statement of key line of credit terms (the "Loan Terms Statement") issued by the Bank in connection with this Note (the "Final Maturity Date"). All capitalized terms used but not defined in this Note shall be used as defined in the Loan Terms Statement. The Loan Terms Statement is incorporated by reference into this Note.

**The Borrower acknowledges and agrees that, notwithstanding any provision of this Note, or any other Facility Document, the Bank has no obligation to make a Loan under this Note and this Note does not create any contractual or other commitment to lend by the Bank. Any Loan made by the Bank hereunder matures on its applicable Maturity Date and the Bank has no commitment to convert or renew any such Loan or make a new Loan. This Note is executed and delivered by the Borrower to the Bank to evidence any Loans that the Bank may extend to the Borrower in the Bank's sole discretion.**

Requests for Loans shall be made in accordance with the procedures outlined in Section 2. The initial Loan made under this Note must be in an amount at least equal to the Minimum Initial Loan Amount. A Short-Term Fixed Loan, if made, must be in an amount at least equal to the Short-Term Fixed Loan Minimum Amount. The Base Rate applicable to each Loan shall be selected by the Borrower from the options set forth in the Loan Terms Statement. Each Loan, if made, shall bear interest at the Interest Rate identified in the Loan Terms Statement. If a Base Rate becomes temporarily or permanently unavailable, it will be replaced in accordance with the provisions of Section 6.

**Section 1**. **<u>Definitions</u>**. As used in this Note, the following terms have the meaning specified below:

"$", "USD" and "dollars" denote lawful money of the United States of America.

"Applicable Margin" has the meaning set forth in the Loan Terms Statement.

"AUM" means, as of the time of determination thereof, the net value of the aggregate assets then under management of the Borrower.

"Bank" is defined in the first paragraph of this Note.

"Banking Day" has the meaning set forth in the Loan Terms Statement.

"Base Rate" has the meaning set forth in the Loan Terms Statement.

"Borrower" has the meaning set forth in the Loan Terms Statement and in the first paragraph of this Note.

"Default Rate" means, with respect to any Loan, (i) at the time of notice of the Event of Default until the Maturity Date of such Loan, a rate per annum equal to a floating rate of 2% above the Base Rate for such Loan plus the Applicable Margin for such Loan, and (ii) from and after the Maturity Date of such Loan, a rate per annum equal to a floating rate of 2% above the Prime Rate plus the Applicable Margin that applied to such Loan prior to its Maturity Date.

"Electronic Note" is defined in Section 16.

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"Event of Default" has the meaning set forth in Section 8 of this Note.

"Facility Documents" means this Note, the Loan Terms Statement, the Guaranty, and any other documents or instruments executed as security or collateral for, or a guarantee of, the Loans, or in connection with or as support of, any of the foregoing, and any updates or renewals thereof.

"Fed Funds Effective Rate" means the rate calculated by the NYFRB based on federal funds transactions by depository institutions. The Fed Funds Effective Rate is displayed on the NYFRB's website and is effective for the Banking Day prior to the date of publication. If the Fed Funds Effective Rate as so determined would be less than zero, such rate shall be deemed to be zero for purposes of this Note.

"Governing Law" has the meaning set forth in the Loan Terms Statement.

"Guarantor" means William A. Ackman, a natural person.

"Guaranty" means that certain Amended and Restated Guaranty, dated as of the date hereof, by the Guarantor in favor of the Bank, as the same may be amended, restated or supplemented from time to time.

"Impacted Base Rate" is defined in Section 6(b) of this Note.

"Interest Payment Date" has the meaning set forth in the Loan Terms Statement.

"Interest Rate" has the meaning set forth in the Loan Terms Statement.

"Interpolated Rate" means, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in relation to the Base Rate for a Variable Loan, the rate per annum determined by the Bank from interpolating on a linear basis between the nearest shortest and nearest longest published rate maturities which are available for the reference rate from which such Base Rate is derived; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in relation to the Base Rate for a Short-Term Fixed Loan, the rate per annum determined by the Bank from interpolating on a linear basis between (a) the longest published rate maturity which is available for the reference rate from which such Base Rate is derived that is shorter than the Short-Term Fixed Tenor of such Loan and (b) the shortest published rate maturity which is available for the reference rate from which such Base Rate is derived that exceeds such Short-Term Fixed Tenor.

If the Interpolated Rate is less than zero, then such rate shall be deemed to be zero for purposes of this Note. The Interpolated Rate will be rounded to the same number of decimal places as the Base Rate of such Loan. Any determination of the Interpolated Rate by the Bank shall be conclusive and binding absent manifest error.

"JPMorgan Contact Information" has the meaning set forth in the Loan Terms Statement.

"Line Amount" has the meaning set forth in the Loan Terms Statement.

"Line of Credit" is defined in the second paragraph of this Note.

"Loan" and "Loans" are defined in the first paragraph of this Note.

"Loan Terms Statement" is defined in the first paragraph of this Note.

"Loan Type" has the meaning set forth in the Loan Terms Statement.

"Maturity Date" means, with respect to any Loan, the last day of the Maturity Period of such Loan; provided, that if any Maturity Date of a Variable Loan would be a day that is not a Banking Day, then such Maturity Date shall be the immediately preceding Banking Day; provided, further, that if any Maturity Date of a Short-Term Fixed Loan would be a day that is not a Banking Day, then such Maturity Date shall be the immediately succeeding Banking Day, unless such immediately succeeding Banking Day with respect to any Short-Term Fixed Loan would fall in the next calendar month, in which case such Maturity Date shall be the immediately preceding Banking Day.

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"Maturity Period" means, (i) for a Variable Loan, the period commencing on the date that such Variable Loan is made and ending on the thirtieth (30<sup>th</sup>) calendar day thereafter and (ii) for a Short-Term Fixed Loan, the period commencing on the date such Short-Term Fixed Loan is made and ending on the numerically corresponding day in a subsequent calendar month or months, as determined by the Short-Term Fixed Tenor selected by the Borrower. In the case of a renewal of an existing Short-Term Fixed Loan or the conversion of a Variable Loan (or portion thereof) to a Short-Term Fixed Loan, the Maturity Period shall commence on the effective date of such renewal or conversion. Notwithstanding the foregoing, any Maturity Period of a Short-Term Fixed Loan which commences on the last Banking Day of a calendar month (or on any day for which there is no numerically corresponding day in the appropriate subsequent calendar month) shall end on the last Banking Day of the appropriate calendar month.

"Minimum Initial Loan Amount" has the meaning set forth in the Loan Terms Statement.

"Morgan Affiliate" means an affiliate of the Bank, as such term is defined under Regulation W promulgated by the Federal Reserve Board.

"Note" has the meaning set forth in the Loan Terms Statement and the first paragraph hereof.

"NYFRB" means the Federal Reserve Bank of New York (or any successor thereto).

"Paper-Based Note" is defined in Section 16.

"Prime Rate" means the rate of interest per annum announced from time to time by the Bank as its prime rate. Each change in the Prime Rate shall be effective from and including the date the change is announced as being effective. The Prime Rate is a reference rate and may not be the Bank's lowest rate. If the Prime Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Note.

"Regulation D" means Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor thereto or other regulation or official interpretation of said Board of Governors relating to reserve requirements applicable to member banks of the Federal Reserve System.

"Regulatory Change" means the occurrence after the date of this Note of (i) the adoption of any law, rule, regulation, or treaty, (ii) any change in any law, rule, regulation, or treaty, or in the interpretation or application thereof by any governmental or regulatory authority, or (iii) compliance by the Bank with any request, guideline, or directive (whether or not having the force of law and whether domestic or foreign) of any governmental or regulatory authority made or issued after the date of this Note.

"Relevant Governing Body" means the Federal Reserve Board, the NYFRB (or any successor thereto), and/or a committee they officially endorse or convene.

"Replacement Base Rate" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for an Impacted Base Rate, (a) for Variable Loans, the other Base Rate option for Variable Loans, if any, identified in the Loan Terms Statement, and (b) for Short-Term Fixed Loans, the other Base Rate option for Short-Term Fixed Loans, if any, identified in the Loan Terms Statement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if a Replacement Base Rate cannot be determined in accordance with clause (i) because the applicable Loan Type does not have another Base Rate option identified in the Loan Terms Statement, then the Replacement Base Rate shall be the Base Rate option, regardless of Loan Type, identified in the Loan Terms Statement that is not an Impacted Base Rate (or, as determined by the Bank in its sole discretion, an overnight rate, forward-looking term rate, and/or compounded rate that is based on or derived therefrom); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if all Base Rates identified in the Loan Terms Statement are Impacted Base Rates, then the Replacement Base Rate shall be the sum of: (a) an alternate benchmark rate selected by the Bank, and (b) a spread adjustment (which may be a positive, negative, or zero value, but, for the avoidance of doubt, will not have an impact on the corresponding Applicable Margin) selected by the Bank, in each case, after giving due consideration to (I) any replacement rate and/or spread adjustment, or method for determining such replacement rate or spread adjustment, that is identified as such by a Relevant Governing Body, and/or (II) any evolving or then-prevailing market convention for determining a rate of interest and spread adjustment as a replacement to the Impacted Base Rate(s) for credit facilities, at such time, that are denominated in USD and similar to the credit facility established under the Facility Documents.

If the Replacement Base Rate would be less than zero, the Replacement Base Rate will be deemed to be zero for purposes of this Note.

"Replacement Base Rate Changes" is defined in Section 6(b) of this Note.

"Replacement Event" is defined in Section 6(b) of this Note.

"Reserve Requirement" means the maximum aggregate reserve requirement (including all basic, supplemental, marginal and other reserves) which is imposed under Regulation D.

"Schedule of Contingent Liabilities" has the meaning set forth in Section 8(j) hereof.

"Short-Term Fixed Loan" has the meaning set forth in the Loan Terms Statement.

"Short-Term Fixed Loan Minimum Amount" has the meaning set forth in the Loan Terms Statement.

"Short-Term Fixed Tenor" has the meaning set forth in the Loan Terms Statement.

"Specified Event" has the meaning set forth in Section 8(d) of this Note.

"Temporary Impacted Base Rate" is defined in Section 6(a) of this Note.

"Temporary Replacement Base Rate" means, for any Temporary Impacted Base Rate, the sum of (i) the Fed Funds Effective Rate and (ii) 0.50%; provided, that at any time the Fed Funds Effective Rate is not displayed on a website, screen, or other information service that publishes such rate from time to time, as selected by the Bank, then the Temporary Replacement Base Rate shall be the sum of: (a) a temporary alternate benchmark rate selected by the Bank, and (b) a spread adjustment (which may be a positive, negative, or zero value, but, for the avoidance of doubt, will not have an impact on the corresponding Applicable Margin) selected by the Bank, in each case, after giving due consideration to (I) any temporary replacement rate and/or spread adjustment, or method for determining such temporary replacement rate or spread adjustment, that is identified as such by a Relevant Governing Body and/or (II) any evolving or then-prevailing market convention for determining a rate of interest and spread adjustment as a temporary replacement to the Temporary Impacted Base Rate for credit facilities, at such time, that are denominated in USD and similar to the credit facility established under the Facility Documents. If the Temporary Replacement Base Rate as determined above would be less than zero, the Temporary Replacement Base Rate will be deemed to be zero for purposes of this Note.

"Variable Loan" has the meaning set forth in the Loan Terms Statement.

**Section 2**. **<u>Requests for Loans, Conversions and Renewals</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Requests for a Variable Loan need to be received not later than noon, New York City time, on the date of the proposed borrowing. Requests for a Short-Term Fixed Loan need to be received not later than noon, New York City time, three (3) Banking Days before the date of the proposed borrowing. Proceeds of any Loan extended under this Note shall be (i) credited to an account of the Borrower maintained with the Bank or (ii) credited to another account as directed by the Borrower to the extent permitted by the Bank and subject to such conditions as the Bank may require in its sole discretion; provided, that the Bank is entitled to rely on information provided by the Borrower without investigation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The outstanding principal balances of Variable Loans utilizing the same Base Rate shall be aggregated. If a Variable Loan has an outstanding principal balance equal to or in excess of the Short-Term Fixed Loan Minimum Amount, it may be entirely or partially (if such portion is at least equal to the Short-Term Fixed Loan Minimum Amount) converted to a Short-Term Fixed Loan upon the Borrower's request. The Base Rate of an outstanding Variable Loan may, upon the Borrower's request and on the Maturity Date of such Loan, be converted to another Base Rate that is identified as an option for Variable Loans in the Loan Terms Statement. All conversion requests need to be received not later than noon, New York City time, three (3) Banking Days before the date of the proposed conversion and must be made in accordance with this Section 2 and procedures and requirements established by the Bank from time to time. The Bank is not obligated to honor a conversion request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank may, but shall not be obligated to, renew (i) a Variable Loan as a Variable Loan with the same Base Rate and a Short-Term Fixed Loan with an outstanding balance less than the Short-Term Fixed Loan Minimum Amount as a Variable Loan with a Base Rate derived from the same reference rate, in each case, unless a request to the contrary is received from the Borrower prior to noon, New York City time on the Maturity Date of such Loan, and (ii) a Short-Term Fixed Loan with an outstanding balance at least equal to the Short-Term Fixed Loan Minimum Amount as a Short-Term Fixed Loan with the same Base Rate for a Maturity Period with a duration equal to that then ending, unless a request to the contrary is received from the Borrower not later than noon, New York City time, three (3) Banking Days prior to the Maturity Date of such Loan. Notwithstanding the foregoing, no renewal shall be made if the Maturity Date, after giving effect to any such renewal, would occur after the Final Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to such conditions and procedures as the Bank may require in its sole discretion, requests described above can be made by telephone, in writing, electronically or through an Internet portal provided by the Bank. Any request shall be irrevocable and specify: (i) in the case of a Loan request, the amount and Loan Type requested and the borrowing date of such requested Loan, which shall be a Banking Day; (ii) in the case of a Variable Loan request, the Base Rate requested; (iii) in the case of a Short-Term Fixed Loan request, the Short-Term Fixed Tenor requested; and (iv) in the case of a conversion request permitted under clause (b), the Loan (or portion thereof in the case of a Variable Loan converting to a Short-Term Fixed Loan) to be converted, the date of the proposed conversion, which shall be a Banking Day, the Loan Type to be converted into and Base Rate requested, and, if applicable, the Short-Term Fixed Tenor requested; provided, that, in the case of clauses (iii) and (iv), in respect of a Short-Term Fixed Loan, if no Short-Term Fixed Tenor is specified, then the Borrower shall be deemed to have selected a Short-Term Fixed Tenor of one (1) month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower acknowledges that the Bank will use reasonable procedures to determine that a request described in this Section 2 was provided by the Borrower or someone the Borrower authorized. The Borrower agrees that it shall be bound by any such request or notice that the Bank, in good faith, believes was provided by the Borrower or someone the Borrower authorized, regardless of how such request or notice was transmitted to the Bank and the Bank will not be liable for any loss, cost or expense for acting on such request or notice.

**Section 3**. **<u>Interest; Repayment of Loans</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal amount of each Loan outstanding under this Note, together with accrued interest thereon, shall be due and payable on the earlier of (i) its Maturity Date if such Loan is not renewed by the Bank or (ii) the Final Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower promises to pay interest on each Interest Payment Date on the unpaid balance of the principal amount of each Loan from the date such Loan is made, renewed or converted to the Maturity Date of such Loan. After the occurrence of an Event of Default, the Bank may, at its option, by notice to the Borrower (which notice may be revoked at the option of the Bank), declare that all Loans shall bear interest at the Default Rate from and including the date of notice of such Event of Default until the earliest to occur of the date on which (x) such Event of Default is cured and (y) such Loans are paid in full, such interest to be payable on demand. If the Bank determines that a Reserve Requirement applies to any Loan, then in order to calculate the Interest Rate of such Loan, the selected Base Rate, once determined in accordance with the Loan Terms Statement, will be divided by one (1) minus the Reserve Requirement. As of the date of this Note, the Reserve Requirement is zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year) and, in each case, shall be payable for the actual number of days elapsed (including the first day, but excluding the last day).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All payments (including any prepayments) hereunder shall be made in lawful money of the United States and in immediately available funds. Any extension of time for the payment of the principal of this Note resulting from the due date falling on a non-Banking Day shall be included in the computation of interest. The Bank may (but shall not be obligated to) debit the amount of any payment under this Note that is not made when due from any deposit account of the Borrower with the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) As of the first calendar month end at which AUM is less than $6,000,000,000, the Line Amount shall reduce by $5,000,000, (ii) as of the first calendar month end at which AUM is less than $5,000,000,000, the Line Amount shall further reduce by $10,000,000, and (iii)) as of the first calendar month end at which AUM is less than $4,500,000,000, the Line Amount shall reduce to $0, this constitutes an "Event of Default" and, the Borrower shall, not later than thirty (30) days after any such reduction in Line Amount, repay the principal amount of Loans in the amount, if any, by which the outstanding principal balance of this Note exceeds the Line Amount after giving effect to each such reduction. For the avoidance of doubt, it is noted that pursuant to the preceding sentence, more than one reduction of the Line Amount may occur simultaneously as of a single calendar month end. Any reductions of the Line Amount under this clause (e) shall be automatic and permanent.

**Section 4**. **<u>Prepayments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Borrower shall have the right at any time and from time to time to prepay any Loan, in whole or in part, without premium or penalty (except as required by clause (c) of this Section), subject to prior notice in accordance with clause (b) of this Section and, if applicable, payment of any break funding expenses under clause (c) of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall notify the Bank of any prepayment under this Section, (i) in the case of a Variable Loan, not later than noon, New York City time, on the date of prepayment and (ii) in the case of a Short-Term Fixed Loan, not later than noon, New York City time, three (3) Banking Days before the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date, which shall be a Banking Day, and the principal amount of each Loan or portion thereof to be prepaid. Subject to such conditions and procedures as the Bank may require from time to time in its sole discretion, notices can be provided by telephone, in writing, electronically or through an Internet portal provided by the Bank. Each prepayment of a Loan shall be accompanied by accrued interest and, if applicable, break funding payments pursuant to clause (c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If for any reason there is a principal payment of a Short-Term Fixed Loan, in whole or in part, other than on the Maturity Date of such Loan (whether by prepayment, acceleration or otherwise), then the Borrower shall pay to the Bank such amount as shall be sufficient (in the reasonable opinion of the Bank) to compensate the Bank for any costs which the Bank incurs as a result of the making of such payment on a date other than the Maturity Date of such Short-Term Fixed Loan. The Borrower acknowledges that the compensation described in this clause (c) is intended to compensate the Bank for the loss of its investment and the expense incurred with the making of such Short-Term Fixed Loan which will not be fully repaid if such Short-Term Fixed Loan is prepaid and such compensation is the Bank's reasonable estimate of its damages from the prepayment and is not intended to be a penalty. The Bank shall provide the Borrower with a statement setting forth the amount or amounts calculated under this Section 4(c) and such amount, absent manifest error, shall be paid by the Borrower to the Bank within ten (10) days after receipt thereof

**Section 5**. **<u>Additional Costs</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If as a result of any Regulatory Change which (i) imposes or modifies any reserve, special deposit, deposit insurance or assessments, minimum capital or liquidity, capital ratios or similar requirements relating to any extension of credit or other assets of, or any deposits with or other liabilities of the Bank or its holding company, or (ii) imposes any other condition affecting this Note, the Bank reasonably determines (which determination shall be conclusive absent manifest error) that the cost to it of making or maintaining a Loan is increased or any amount received or receivable by the Bank under this Note is reduced, then the Borrower will pay to the Bank on request an additional amount that the Bank reasonably determines will compensate it for the increased cost or reduction in amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Without limiting the effect of the foregoing provisions of this Section 5 (but without duplication), the Borrower shall pay to the Bank from time to time on request such amounts as the Bank may reasonably determine to be necessary to compensate the Bank for any costs imposed due to a Regulatory Change which it reasonably determines are attributable to the maintenance by it or any of its affiliates of capital in respect of the Loans hereunder pursuant to any law or regulation of any jurisdiction or any interpretation, directive or request (whether or not having the force of law) of any court or governmental or monetary authority. Any such compensation shall include, without limitation, an amount equal to any reduction in return on assets or equity of the Bank to a level below that which it could have achieved but for such law, regulation, interpretation, directive or request.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any amounts required to be paid by the Borrower under this Section 5 shall be consistent with amounts that the Bank is generally charging other borrowers similarly situated to the Borrower under comparable provisions of similar credit facilities. The Bank shall provide the Borrower with a certificate setting forth the amount or amounts calculated under this Section 5 and such amount, absent manifest error, shall be paid by the Borrower to the Bank within ten (10) days after receipt thereof. Upon the occurrence of any event giving rise to the Borrower's obligation to pay additional amounts to the Bank under this Section 5, the Bank will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of the Bank) to designate a different lending office if such designation would reduce or obviate the obligations of the Borrower to make future payments of such additional amounts; provided that such designation is made on such terms that the Bank and its lending office suffer no unreimbursed cost or material legal or regulatory disadvantage (as reasonably determined by the Bank), with the object of avoiding future consequence of the event giving rise to the operation of any such provision. Failure or delay on the part of the Bank to demand compensation pursuant to the foregoing provisions of this Section 5 shall not constitute a waiver of the Bank's right to demand such compensation.

**Section 6**. **<u>Base Rate Unavailability</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)  **<u>Temporary</u>** . If the Bank determines that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adequate and reasonable means do not exist for ascertaining a Base Rate for a Variable Loan or for the applicable Short-Term Fixed Tenor of a Short-Term Fixed Loan, including, without limitation, by means of the Interpolated Rate; provided, that no Replacement Event (defined in clause (b) below) has occurred at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a Base Rate will not adequately and fairly reflect the cost to the Bank of making or maintaining the applicable Loan; or;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) it is unlawful for the Bank to maintain any Loan at the Base Rate selected by the Borrower;

THEN, such Base Rate shall be considered a "Temporary Impacted Base Rate" and the Bank shall give the Borrower prompt notice thereof. Until the Bank notifies the Borrower that the circumstances giving rise to such notice no longer exist, (A) the Temporary Impacted Base Rate is deemed not to be available and will be replaced with the Temporary Replacement Base Rate, (B) all references to "Base Rate" in respect of the Temporary Impacted Base Rate only, shall be deemed to be references to the "Temporary Replacement Base Rate", and (C) if the Temporary Impacted Base Rate applies to any existing Short-Term Fixed Loan, then the Temporary Replacement Base Rate will apply at the end of such Short- Term Fixed Loan's Maturity Period unless the circumstances in clause (iii) have arisen, in which case the Temporary Replacement Base Rate shall apply immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Permanent</u>.** Notwithstanding anything to the contrary herein or in any other Facility Document, a Base Rate is deemed no longer to be available and will be replaced if any of the following events (each, a "Replacement Event") occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a public statement is made or there is publication of information by or on behalf of the administrator of a Base Rate, the regulatory supervisor for the administrator of a Base Rate, the U.S. Federal Reserve System, an insolvency official or resolution authority with jurisdiction over the administrator of a Base Rate, or a court or an entity with similar insolvency or resolution authority over the administrator of a Base Rate, in each case, which states that such administrator has ceased or will cease to provide such Base Rate, permanently or indefinitely, provided that, at that time, there is no successor administrator that will continue to provide such Base Rate; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a public statement is made or there is publication of information by the regulatory supervisor for the administrator of a Base Rate announcing that such Base Rate is no longer representative.

If a Replacement Event occurs in respect of a Base Rate, then such Base Rate shall be considered an "Impacted Base Rate" and the Bank shall give the Borrower prompt notice thereof. After a Replacement Event occurs, (A) an Impacted Base Rate is deemed not to be available as a Base Rate option and will be replaced with the applicable Replacement Base Rate, (B) all references to "Base Rate" in respect of the Impacted Base Rate only, shall be deemed to be references to the "Replacement Base Rate", (C) if the Impacted Base Rate applies to any existing Short-Term Fixed Loan, then the applicable Replacement Base Rate will apply at the end of such Short-Term Fixed Loan's Maturity Period, and (D) if the applicable Replacement Base Rate is determined based on clauses (i) or (ii) of the definition of Replacement Base Rate, then the Applicable Margin for such Replacement Base Rate shall be the Applicable Margin that corresponds to the Base Rate option upon which such Replacement Base Rate is based. Refer to Section 1 of this Note for the definition of Replacement Base Rate.

The Bank will have the right, from time to time, by notice to the Borrower, to make any technical, administrative, or operational changes (including, without limitation, (I) changes to the definitions of Banking Day and Interest Payment Date, (II) timing and frequency of determining rates and making payments of interest, (III) inclusion of compounding methodologies and conventions if applicable, and (IV) other administrative matters (collectively, "Replacement Base Rate Changes")) that the Bank decides in its reasonable discretion may be appropriate to reflect the adoption and implementation of the Replacement Base Rate. The Replacement Base Rate, together with all such Replacement Base Rate Changes as specified in any notice, shall become effective on the date specified by the Bank in the notice, without any further action or consent of the Borrower. The Base Rate options set forth in the Loan Terms Statement could be replaced more than once during the term of this Note based on the events described in this clause (b). Until a Replacement Base Rate shall be determined and only to the extent the Impacted Base Rate is not available or published or permitted to be utilized at such time on a current basis, the last paragraph of clause (a) above shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Determinations</u>**. Any determination, decision, or election that may be made by the Bank pursuant to clauses (a) or (b) of this Section 6, including any conclusion that it is not possible to determine the Interpolated Rate, any determination with respect to a rate or adjustment or the occurrence or non-occurrence of an event, circumstance or date, and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its sole discretion and without consent from the Borrower.

**Section 7**. **<u>Representations and Warranties</u>**. The Borrower represents and warrants as of the date of this Note, as of the date of any request for a Loan or conversion thereof, and as of the date of any Loan renewal, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; this Note and any of the other Facility Documents executed by the Borrower constitute valid, enforceable and binding agreements, except as may be limited by bankruptcy, insolvency, or other similar laws affecting the enforcement of creditors' rights generally and by general principles of equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the execution, delivery and performance by the Borrower of the Facility Documents to which it is a party, and the use of the proceeds of any of the Loans, do not (i) conflict with any agreement by which it is bound or result in the creation of any lien, charge or encumbrance upon the property or assets of the Borrower thereunder (other than pursuant to any Facility Documents), (ii) violate any provision of any law, rule, regulation (including, without limitation, Regulation U of the Federal Reserve Board), order, writ, judgment or injunction presently in effect having applicability to the Borrower, or (iii) require the consent or approval of any individual, business, governmental authority or other entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; no litigation, claim, investigation, administrative proceeding or similar action is pending or, to the Borrower's knowledge, threatened (i) involving or affecting any material part of the Borrower's assets or the transactions contemplated in the Facility Documents or (ii) against the Borrower that, if adversely determined, is likely to have a material adverse effect on the financial condition of the Borrower. There are currently no material judgments entered against the Borrower and the Borrower is not in default with respect to any judgment, writ, injunction or order of any court or other judicial authority, which default is likely to have or has had a material adverse effect on the financial condition of the Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) the Borrower is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has all requisite power and authority to execute and deliver, and perform its obligations under, the Facility Documents; (ii) the Borrower is not, and after giving effect to application of the proceeds of any Loan will not be, required to register as an "investment company" as such term is defined in the Investment Company Act of 1940, as amended; (iii) the Borrower's jurisdiction of organization is the state listed as "State of Organization" in the Loan Terms Statement; (iv) to the extent the Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, the Bank has received a Beneficial Ownership Certification in relation to the Borrower; and (v) the information included in such Beneficial Ownership Certification provided to the Bank is true and correct in all respects. "Beneficial Ownership Certification" means a certification regarding beneficial ownership and/or control as required by the Beneficial Ownership Regulation. "Beneficial Ownership Regulation" means 31 C.F.R. § 1010.230.

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**Section 8**. **<u>Events of Default</u>**. If any one or more of the following events shall occur (each an "Event of Default"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower fails to pay the principal of this Note as and when due and payable or fails to pay any interest on this Note, or any other amount payable under this Note, within five (5) Banking Days of the date as and when due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor (i) fails to observe or perform any other term or agreement of any of the Facility Documents that is not specifically referred to in clauses (ii)-(iv) of this subsection (b) or clauses (a) or (c)-(q) of this Section 8; (ii) makes or is deemed to make any representation or warranty to the Bank in any Facility Document to which it is a party or in any certificate or other document furnished pursuant to a Facility Document, which such representation or warranty proves to have been incorrect in any material respect when made or deemed made; (iii) fails to pay when due (whether by scheduled maturity, acceleration, demand or otherwise, and after giving effect to any applicable notice and/or cure periods) any of its indebtedness (including, but not limited to, indebtedness for borrowed money) in excess of $5,000,000 owing to parties other than the Bank or its affiliates or any interest or premium thereon when due; or (iv) fails to comply with, or perform under any agreement (other than the Facility Documents), now or hereafter in effect, with the Bank or any affiliate of the Bank having an outstanding principal amount in excess of $1,000,000, unless such failure under this clause (iv) is cured within 30 days of written notice to the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor: (i) becomes insolvent or unable to pay its debts as they become due, (ii) makes an assignment for the benefit of creditors, (iii) commences any proceeding under any bankruptcy, reorganization, liquidation, insolvency or similar laws, (iv) has had any such petition filed, or any such proceeding has been commenced against it, in which an adjudication is made or order for relief is entered or which remains undismissed for a period of sixty (60) days, (v) has had a receiver, custodian or trustee appointed for all or a substantial part of its property, or (vi) takes any action effectuating, approving or consenting to any of the events described in clauses (i) through (v);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Guarantor dies, or is determined or adjudged incompetent or otherwise incapacitated by a court of competent jurisdiction (in each case, a "Specified Event");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor is involved in a proceeding which is likely to result in a forfeiture of all or a substantial part of its assets or a material judgment is entered against the Borrower or the Guarantor and remains unpaid, undismissed or unstayed for a period of 60 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the occurrence of an event directly affecting the financial condition of the Borrower or the Guarantor which has a material adverse effect on the ability of the Borrower or the Guarantor to perform its or his repayment obligations under the Facility Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any Facility Document granting a security interest at any time and for any reason ceases to create a valid and perfected first priority security interest in and to the property purported to be subject to the Facility Document or ceases to be in full force and effect or is declared null and void, or the validity or enforceability of any Facility Document is contested by any party to the Facility Document, or such signatory to the Facility Document denies it has any further liability or obligation under the Facility Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor creates, incurs, assumes or permits to exist any debt or contingent liabilities, other than (i) debt and contingent liabilities owing to, or in favor of, the Bank, (ii) debt and/or contingent liabilities owing to, or in favor of, parties other than the Bank and that is specifically disclosed to the Bank in (x) the financial statements of the Borrower dated December 31, 2019, and the Guarantor dated April 17, 2020, and/or (y) the schedule of contingent liabilities dated April 17, 2020 (and any refinancings thereof subsequent to the date hereof which do not increase the principal amount thereof), (iii) debt incurred by entities in which the Guarantor has beneficial ownership interests if such debt is non-recourse to the Guarantor, (iv) other debt and/or contingent liabilities of the Borrower in an aggregate principal amount not to exceed $5,000,000 at any one time outstanding, or (v) other debt and/or contingent liabilities of the Guarantor in an aggregate principal amount not to exceed $25,000,000 at any one time outstanding (as used in this clause, "contingent liabilities" means liabilities under, or with respect to, any guaranty, financial support agreement, letter of credit, or any swap, option or other derivative contract);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor creates, incurs, assumes or suffers to exist any lien or other encumbrance upon or with respect to any of the Borrower's or the Guarantor's real or personal property, other than any such lien in favor of the Bank, or listed on the financial statements of the Borrower dated December 31, 2019, and the Guarantor dated April 17, 2020, and other such liens securing obligations not to exceed $5,000,000 in the aggregate for the Borrower or $25,000,000 in the aggregate for the Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (x) the Borrower fails to furnish (i) signed financial statements of the Borrower to the Bank within ninety (90) days after the end of the each calendar year, and (ii) within forty-five (45) days of any request by the Bank therefor, and, in any event, at least once during the twelve-month period commencing on the date of this Note and at least once during any subsequent twelve-month period, (x) the Guarantor's signed financial statement, in such form and with such detail as is substantially consistent with the Guarantor's signed financial statement most recently provided to the Bank, and including a schedule of contingent liabilities as of such date ("Schedule of Contingent Liabilities"); or (y) a true and complete copy the Guarantor's latest filed federal income tax return including all exhibits and schedules attached thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Borrower fails to furnish to the Bank, within five (5) Banking Days of the Bank's request therefor, (i) any additional financial information regarding the Borrower or the Guarantor that the Bank may reasonably request from time to time, including without limitation as to AUM, or (ii) any performance or other financial information regarding any fund managed by the Borrower that the Bank may reasonably request from time to time, but only to the extent that such financial information is generally provided to investors in such fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor resides, at any time, in a jurisdiction that is located outside the United States, or the organization or trust documents of the Borrower are, at any time, governed by a jurisdiction that is located outside of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) &nbsp;&nbsp;&nbsp;&nbsp; the Borrower fails to provide an updated Beneficial Ownership Certification to the Bank within fifteen (15) days after a change to the list of beneficial owners identified in such certification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Guarantor at any time fails to maintain a net worth (total assets minus total liabilities), exclusive of any interest in the Borrower, of at least $1,000,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; at any time there shall not be maintained with the Bank in one or more accounts titled in the name of the Guarantor, as measured at the end of each calendar quarter, Liquidity in an aggregate amount not less than $250,000,000. The term "Liquidity" means unencumbered liquid assets, acceptable to the Bank in its sole reasonable discretion; provided that liquid assets otherwise acceptable to the Bank in its sole reasonable discretion which are held in an account with the Bank securing indebtedness in favor of the Bank will be included as Liquidity for the purposes hereof, but only to the extent (and in the amount) that the market value of such assets exceeds the market value of the account assets that are required by the Bank in its sole discretion to provide the minimum collateral support for such indebtedness; provided, further, that Liquidity shall in no event include any assets held in any 401k, IRA, Keogh, SEP, or similar retirement accounts or plans or a trust; provided, further, that the Liquidity derived from Pershing Square Holdings LTD stock (LSE: PSH) ("PSH Stock") shall not constitute greater than 75% of the aggregate Liquidity at any time (and to the extent that the aggregate Liquidity that is derived from PSH Stock exceeds such percentage at any time, the Liquidity that is derived from PSH Stock shall be excluded from the calculations hereunder in the amount that would cause the aggregate Liquidity that is derived from PSH Stock to be equal to 75% of the aggregate Liquidity derived from all liquid assets at such time);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Borrower fully distributes, decants, divides its assets, liabilities and/or obligations (whether pursuant to a "plan of division" or similar arrangement), dissolves or for any reason ceases to be in existence or merges or consolidates, or if there is a change in the direct or indirect beneficial ownership of the Borrower;

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THEN, the Bank may, by notice to the Borrower, declare this Note to be due and payable, without presentment, demand, protest, notice of acceleration or intention to accelerate or further notice of any kind, all of which are expressly waived, provided that in the case of an Event of Default described in clause (c) above, this Note shall be immediately due and payable without notice, provided further that (x) in the case of an Event of Default described in clause (d) above due to a Specified Event (and provided that no other Event of Default has occurred), the Bank shall not accelerate amounts payable under this Note for a period of one hundred five (105) days from the date on which such Specified Event has occurred, but the Bank shall not make any additional Loans during such 105-day period, and (y) if such Specified Event consists of the Guarantor's death, the Bank shall not declare that an Event of Default has occurred until the 105<sup>th</sup> day after the date of the Guarantor's death.

**Section 9**. **<u>Expenses</u>**. The Borrower will pay to the Bank all reasonable and documented out of pocket costs and expenses (including reasonable attorneys' fees and legal expenses of external counsel) incurred by the Bank in connection with the preparation or modification of the Facility Documents and performance thereof and the exercise of any of the Bank's rights, remedies or obligations under the Facility Documents.

**Section 10**. **<u>Governing Law</u>**. This Note shall be governed by and construed in accordance with the laws of the state identified in the "Governing Law" section of the Loan Terms Statement, without regard to conflict of laws principles, and with the laws of the United States of America as applicable.

**Section 11**. **<u>Jurisdiction</u>**. To the extent not prohibited by applicable law or otherwise, the Borrower: (i) agrees that all claims related to this Note may be adjudicated by a state or federal court in the state identified in the "Governing Law" section of the Loan Terms Statement, (ii) agrees that any proceeding brought against the Bank shall be brought only in a state or federal court in the City of New York, and (iii) agrees that the Bank may comply with service of process requirements in any such proceeding by mailing (via prepaid registered or certified U.S. mail) documents to be served to the Borrower's address on the signature page of this Note or at the Borrower's most recent mailing address in the Bank's records. The Borrower agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in any other jurisdiction and waives any defense on the basis of an inconvenient forum. Nothing herein shall affect the right of the Bank to serve legal process in any other manner permitted by law or affect the right of the Bank to bring any action or proceeding against the Borrower or its property in the courts of any other jurisdiction.

**Section 12**. **<u>WAIVER OF JURY TRIAL</u>**. **THE BORROWER AND THE BANK (BY ITS ACCEPTANCE OF THIS NOTE) EACH WAIVE ANY RIGHT TO JURY TRIAL.**

**Section 13**. **<u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The provisions of this Note are intended to be severable. If any provision of this Note is held invalid or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without affecting the validity or enforceability thereof in any other jurisdiction or the remaining provisions thereof in any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No amendment or modification of any provision of this Note (other than an extension by the Bank of the Expiry Date as set forth in the Loan Terms Statement) shall be effective unless the same shall be executed by the Borrower and the Bank. Except to the extent provided in any waiver, such waiver by the Bank of a provision of this Note shall not constitute a waiver of the Bank's right to otherwise demand strict compliance with that provision or any other provision of this Note. Whenever the consent of the Bank is required under this Note, the granting of such consent shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the Bank's sole discretion. The Bank shall not be deemed to have waived any rights under this Note unless such waiver is in writing and signed by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No delay on the part of the Bank in the exercise of any right or remedy waives that right or remedy. No single or partial exercise by the Bank of any right or remedy precludes any other future exercise of it or the exercise of any other right or remedy. The rights and remedies in this Note are cumulative and not exclusive of any rights and remedies which the Bank may have under law or under other agreements or arrangements with the Borrower. The Borrower waives presentment, notice of dishonor, protest and any other notice or formality with respect to this Note except for any notices expressly required by this Note.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the term "Borrower" is defined to include more than one party, then the obligations, representations and warranties of the Borrower hereunder shall be joint and several regardless of any change in business relations, divorce, legal separation or other legal proceedings and regardless of any agreement that may affect liabilities between or among such parties, and the Bank shall be entitled to act on notices and requests from any one of the parties without the consent of the other party(ies).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The obligations of the Borrower under this Note shall be subject to the limitation that payments of interest shall not be required to the extent that receipt thereof would be contrary to provisions of law applicable to the Bank limiting rates of interest which may be charged or collected by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise permitted in this Note, notices (including, without limitation, any extension of the Expiry Date in the Loan Terms Statement and interest statements) shall be addressed to the Bank as set forth in the "JPMorgan Contact Information" section of the Loan Terms Statement and to the Borrower as set forth on the signature page to this Note (or at such other number or address as shall be designated by one party to the other in the manner provided for in this Section) and either given electronically or in writing by hand, overnight courier, certified or registered mail, or regular mail. Notices sent by hand, overnight courier, certified or registered mail, or regular mail shall be deemed to have been given when delivered. Notices sent to an email address shall be deemed received when sent, provided, that, if such notice is not sent during normal business hours, such notice shall be deemed to have been sent and received at the opening of business on the next Banking Day. All notices by the Bank properly addressed to the Borrower shall be deemed to have been personally delivered to the Borrower whether actually received or not.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (g) &nbsp;&nbsp;&nbsp;&nbsp; Sections 3(d), 4(c), 5, 9, 10, 11, 12 and 14 hereof shall survive the repayment of the Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each reference to the Bank shall be deemed to include its successors, endorsees and assigns, in whose favor the provisions hereof shall inure. Each reference to the Borrower shall be deemed to include the heirs, executors, administrators, legal representatives, successors and assigns of the Borrower, all of whom shall be bound by the provisions hereof. This Note shall be binding on the Borrower and shall inure to the benefit of the Bank, except that the Borrower may not delegate or assign any of its rights or obligations hereunder without the prior written consent of the Bank. With the consent of the Borrower not to be unreasonably withheld, the Bank may assign all or a portion of its rights and obligations under this Note and the other Facility Documents; provided, that such consent shall not be required (i) at any time that an Event of Default has occurred and is continuing, (ii) in connection with any assignment to an affiliate of the Bank or a merger or consolidation of the Bank, or (iii) in connection with any pledge or assignment to secure obligations to a Federal Reserve Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Note, any amendment to this Note, and any agreement, notice or other communication required by this Note to be "written" or "in writing" may be executed in any number of counterparts, including counterparts that are executed on paper and counterparts that are electronic records and are executed using electronic signatures generated through the electronic execution process provided by the Bank or such other electronic execution process acceptable to the Bank in its sole discretion. Each counterpart of such document, when so executed, shall be deemed an original but all such counterparts shall constitute one and the same document. Delivery of a manually executed counterpart of a signature page of such document by emailed PDF or JPEG from the Borrower's e-mail address on file with the Bank, or any other electronic means acceptable to the Bank in its sole discretion that reproduces an image of such manually executed signature page, shall each be effective as delivery of a manually executed counterpart of such document; provided, that, the Bank, in its sole discretion, can require subsequent delivery of the manually executed counterpart of a signature page.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The date, amount, Loan Type of, Base Rate of, Maturity Date of, Short-Term Fixed Tenor of, Applicable Margin of, and the Interest Rate with respect to, each Loan evidenced hereby, all payments of principal and/or interest thereof, and any conversion of a Loan to a different Loan Type or conversion of a Base Rate, shall, in each case, be evidenced by records maintained by the Bank in the ordinary course of business and such records shall be presumptively correct absent manifest error and any failure to so record or any error in doing so shall not limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to any Loan made hereunder.

**Section 14**. **<u>Confidentiality</u>**. The Bank agrees (by its acceptance of this Note) to use reasonable precautions to keep confidential, in accordance with its customary procedures for handling confidential information of this nature and in accordance with safe and sound practices of comparable commercial finance institutions, any non-public information supplied to it by or on behalf of the Borrower pursuant to this Note or the other Facility Documents which is identified by the Borrower as being confidential at the time the same is delivered to the Bank or which the Bank otherwise actually knows is confidential (and which at the time is not, and does not thereafter become, publicly available or available to the Bank from another source not known to be subject to a confidentiality obligation to the Borrower not to disclose such information), provided that nothing herein shall limit the disclosure of any such information (i) to the extent required by statute, rule, regulation or judicial process (provided that the Bank shall provide reasonable notice to Borrower prior to such disclosure), (ii) to counsel for the Bank, (iii) to examiners, auditors or accountants of the Bank, (iv) in connection with any litigation to which the Bank is a party relating to the Facility Documents or (v) to any assignee (or prospective assignee) under this Note so long as such assignee (or prospective assignee) first agrees, in writing, to be bound by confidentiality provisions similar in substance to this Section 14. The provisions of this Section 14 shall expire three years following the Final Maturity Date of this Note. The foregoing shall not be deemed a waiver by the Borrower of any statutory or regulatory rules concerning privacy and confidential information that are binding on the Bank.

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**Section 15**. **<u>Use of Proceeds</u>**. The Borrower agrees that it will not, directly or indirectly, use the proceeds of any Loan under this Note or make available such proceeds to any person or entity: (i) to fund any activities or business of or with any person or entity, or in any country or territory, that, at the time of such funding is the subject of any economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including the U.S. Department of the Treasury's Office of Foreign Assets Control or the U.S. Department of State or (ii) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money or anything else of value, to any person in violation of any applicable laws, rules, or regulations relating to bribery or corruption.

**Section 16**. **<u>Morgan Affiliate</u>**. The Borrower shall use available cash on deposit to purchase securities issued by a Morgan Affiliate or to invest in any Morgan Affiliate fund before using the proceeds of any Loan under this Note to fund such purchase or investment, and the Borrower directs the Bank to use such available cash on deposit for such purchase or investment. The Borrower further directs the Bank to use all prepayments and repayments hereunder to first repay any Loan that was used to purchase securities issued by a Morgan Affiliate or to invest in any Morgan Affiliate fund. It is understood that nothing in this Section creates any obligation to purchase securities issued by a Morgan Affiliate or to invest in any Morgan Affiliate fund or create an implication that any such investment is contemplated by the Borrower. For the purposes of this Section, "cash on deposit" means cash on deposit in the account of the Borrower into which Loan proceeds are funded.

**Section 17. <u>Conversion From Electronic Note to Paper-Based Note</u>**. If this Note is executed electronically ("Electronic Note"), the Bank and any person to whom this Electronic Note is later transferred shall have the right to convert this Electronic Note at any time into a paper-based Note ("Paper-Based Note"). In the event this Electronic Note is converted into a Paper-Based Note:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Paper-Based Note will be an effective, enforceable and valid instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the execution of this Electronic Note will be deemed issuance and delivery of the Paper-Based Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the printing of the representation of the electronic signature for the Borrower upon the Paper-Based Note from the system in which the
 Electronic Note is stored will be deemed the original signature for the Borrower on the Paper-Based Note and will serve to indicate the Borrower's present intention to authenticate the Paper-Based Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Paper-Based Note will be a valid original writing for all legal purposes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) upon conversion to a Paper-Based Note, the Borrower's obligations in the Electronic Note shall automatically transfer to, and be contained in,
 the Paper-Based Note, and the Borrower intends to be bound by such obligations.

**Section 18**. **<u>Execution and Use of Electronic Records and Signatures</u>**. If the Borrower has received and reviewed this Note electronically, then the Borrower agrees that this Note may be in the form of an electronic record and may be executed using electronic signatures generated through the electronic execution process provided by the Bank or such other electronic execution process acceptable to the Bank in its sole discretion. Any electronic signature on or associated with this Note and accepted by the Bank shall be valid and binding on the signer to the same extent as a manual signature and upon application thereof, this Note will constitute a legal, valid, and binding obligation enforceable in accordance with its terms to the same extent as if manually executed. Notwithstanding any other provision of this Note, at the Bank's option and in the Bank's sole discretion, any agreement, amendment, notice or other communication (including, without limitation, any extension by the Bank of the Expiry Date in the Loan Terms Statement) required by this Note to be "written" or "in writing" may be in the form of an electronic record and may be executed using electronic signatures generated through the electronic execution process provided by the Bank or such other electronic execution process acceptable to the Bank in its sole discretion.

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**Section 19. <u>Texas-Specific Provision</u>.** If any Borrower becomes a resident of the state of Texas, or the organization or trust documents of any Borrower are, at any time, governed by the laws of the state of Texas, then the Bank may set off any amounts due hereunder against, in any order, any debt owing by the Bank to the Borrower, including but not limited to, any deposit account, which right is hereby granted by the Borrower to the Bank, and exercise any and all other rights under any of the Facility Documents, at law, in equity or otherwise.

**Section 20**. **<u>Assignments and Participations</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Bank, acting for this purpose as a non-fiduciary agent of the Borrower, shall maintain a register (the "Register") for the recordation of the names and addresses of the assignees of the Bank and the aggregate outstanding principal amount of each Loan (and stated interest thereon) (each a "Registered Loan"). The entries in the Register shall be conclusive and binding for all purposes, absent manifest error. A Registered Loan may be assigned or transferred in whole or in part only by registration of such assignment or transfer on the Register. The Borrower and the Bank (and any assignee of the Bank) shall treat each person whose name is recorded in the Register as a lender hereunder for all purposes of this Loan, including, without limitation, the right to receive payments of principal and interest hereunder, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event that the Bank sells participations in a Loan, the Bank shall, acting for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name of all participants in each Loan and the principal amount (and stated interest thereon) of the portion of each Loan that is the subject of the participation (the "Participant Register"). An interest in a Loan may be participated in whole or in part only by registration of such participation on the Participant Register. The Bank shall have no obligation to disclose all or any portion of the Participant Register to any person except to the extent that such disclosure is necessary to establish that Loan is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.

**Section 21**. **<u>Prior Note; Termination of Line Letter</u>**. This Note is in replacement of and substitution for, but not in repayment of, the Second Amended and Restated Grid Time Promissory Note dated as of May 21, 2018, from the Borrower to the Bank. Any loan outstanding under such prior promissory note shall be deemed a Loan outstanding under this Note. In addition, the "line of credit offer letter" referred to as a "Facility Document" under such prior promissory note is hereby terminated and of no further force or effect.

[NO FURTHER TEXT; SIGNATURE PAGE FOLLOWS]

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PERSHING SQUARE CAPITAL MANAGEMENT, L.P.

By: PS Management GP, LLC, its General Partner

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| | |
|:---|:---|
| By | /s/ William A. Ackman |
|  | Name: William A. Ackman |
|  | Title: Managing Member |

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**Address for notices:**

Pershing Square Capital Management, L.P.

787 11<sup>th</sup> Avenue 9<sup>th</sup> Floor

New York, NY 10019

Attn: Nicholas Botta

Telephone: (212) 813-3700

E-Mail: [email] <br>

## Exhibit 10.24

**Exhibit 10.24**

AMENDMENT NO. 1

THIS AMENDMENT, dated as of September 12, 2022 (the "Amendment"), is by and between JPMORGAN CHASE BANK, N.A. (the "Bank") and PERSHING SQUARE CAPITAL MANAGEMENT, L.P. (the "Borrower").

The Borrower has entered into Third Amended and Restated Line of Credit Note in the principal amount of $45,000,000 dated as of January 31, 2021, as amended and otherwise modified (the "Note") in favor of the Bank. The Bank and the Borrower desire to amend the Loan Terms Statement (as defined in the Note) as set forth herein.

Except as otherwise provided herein, the capitalized terms used in this Amendment shall have the respective meanings assigned to such terms in the Note.

<u>AGREEMENT</u>

In consideration of the foregoing, and the mutual covenants and agreements hereinafter set forth, the parties hereto hereby agree as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>AMENDMENTS</u>. Subject to the satisfaction of the conditions precedent set forth in Section 2 hereof, the Loan Terms Statement is amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Loan Terms Statement is hereby amended and restated, and reissued, in the form of Exhibit A hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>CONDITIONS PRECEDENT</u>. This Amendment shall not become effective until the Bank has received executed counterparts of this Amendment signed by each of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>REPRESENTATIONS AND WARRANTIES</u>. The Borrower represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties contained in the Note and each other Facility Document are true and correct on and as of the date hereof as though made on and as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Event of Default has occurred and is continuing as of the date hereof after giving effect to the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>CONTINUED EFFECTIVENESS</u>. Except to the extent expressly amended hereby, all of the terms of the Facility Documents remain in full force and effect. Upon the effectiveness of this Amendment, on and after the date hereof each reference in the Facility Documents to the Loan Terms Statement shall mean and be a reference to the Loan Terms Statement as amended, restated, and reissued hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ACKNOWLEDGMENT OF OUTSTANDING OBLIGATIONS</u>. The Borrower hereby acknowledges, certifies and agrees that: (a) pursuant to the Note, the Bank has made revolving loans to the Borrower that are outstanding as of the date hereof; and (b) except as expressly stated therein, the obligations of the Borrower to repay those loans (with interest) to the Bank and the obligations of the Borrower to perform or otherwise satisfy his other obligations under the Facility Documents (i) each remain and shall continue in full force and effect after giving effect to this Amendment, (ii) are not subject to any defense, counterclaim, or setoff, and (iii) are and shall continue to be governed by the terms and provisions of the Note and the other Facility Documents, as supplemented, modified and amended by this Amendment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>APPLICABLE LAW</u>. This Amendment shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws principles, and with the laws of the United States of America as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>COUNTERPARTS</u>. This Amendment may be executed in two or more counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one agreement.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

------

IN WITNESS WHEREOF, the Bank and the Borrower have duly executed this Amendment, all as of the day and year first above written.

PERSHING SQUARE CAPITAL MANAGEMENT, L.P.

By:&nbsp;&nbsp;&nbsp;&nbsp; PS Management GP, LLC, its General Partner

---

| | | | |
|:---|:---|:---|:---|
| By: | /s/ William A. Ackman | Date | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9/9/2022 |
|  | William A. Ackman <br> Managing Member |  |  |

---

AGREED TO:

JPMORGAN CHASE BANK, N.A.

---

| | |
|:---|:---|
| By: | /s/ Christopher French |
|  | Christopher French |
|  | Managing Director |

---

------

<u>Exhibit A</u>

[attached]

------

![](ny20040230x14_ex10-24image03.jpg)

**STATEMENT OF KEY LINE OF CREDIT TERMS**

![](ny20040230x14_ex10-24image04.jpg)

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Note** | &nbsp;&nbsp;Third Amended and Restated Line of Credit Note dated as of January 31, 2021, as amended, restated, supplemented or otherwise modified from time to time in accordance with its terms. |
| &nbsp;&nbsp;**Borrower** | &nbsp;&nbsp;Pershing Square Capital Management, L.P. |
| &nbsp;&nbsp;**Line Amount** | &nbsp;&nbsp;$45,000,000.00, subject to reduction as set forth in the Note. |
| &nbsp;&nbsp;**Loan Types** | &nbsp;&nbsp; Variable Loans and Short-Term Fixed Loans<br>**"Variable Loan"** refers to a Loan with a floating rate of interest and a Base Rate of Variable SOFR (defined below).<br>**"Short-Term Fixed Loan"** refers to a Loan with a fixed rate of interest for which a Borrower can select a Base Rate of Term SOFR (defined below) for a particular Short-Term Fixed Tenor (defined below).<br>Each Base Rate is defined in the Base Rates section.  |
| &nbsp;&nbsp;**Interest Rate** | &nbsp;&nbsp; For each Loan, the Base Rate selected by the Borrower + the Applicable Margin<br>To calculate interest on a Loan, the selected Base Rate will be rounded upwards to the nearest 1/100<sup>th</sup> of 1%.  |
| &nbsp;&nbsp;**Applicable Margin** | &nbsp;&nbsp;1.90% |
| &nbsp;&nbsp;**Short-Term Fixed Tenors** | &nbsp;&nbsp;1 month, 3 month, or 6 month Term SOFR. Term SOFR is defined in the Base Rates section. |
| &nbsp;&nbsp;**Termination** | &nbsp;&nbsp;The line of credit may be terminated by the Borrower or by JPMorgan Chase Bank N.A. at any time, whereupon amounts outstanding under the line of credit will be due and payable as set forth in the Note. |
| &nbsp;&nbsp;**Expiry Date** | &nbsp;&nbsp;January 31, 2023, unless earlier terminated by either the Borrower or JPMorgan Chase Bank, N.A. |
| &nbsp;&nbsp;**Minimum Initial Loan Amount** | &nbsp;&nbsp;$68000 |
| &nbsp;&nbsp; **Short-Term Fixed Loan Minimum Amount**  | &nbsp;&nbsp;$5000000 |
| &nbsp;&nbsp;**Interest Payment Date** | &nbsp;&nbsp; Interest is payable quarterly. Interest will be due and payable on (i) the twenty-fifth (25th) calendar day following the end of each calendar quarter (or if such day is not a Banking Day, on the next Banking Day), (ii) the Final Maturity Date, and (iii) the date on which any payment of principal is made. |
| &nbsp;&nbsp;**Pledgor(s)** |  |
| &nbsp;&nbsp;**Guarantor** | &nbsp;&nbsp;William A. Ackman |
| &nbsp;&nbsp;**Base Rates** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Base Rate that will be used for all Variable Loans is Variable SOFR, which is a reference rate that may change daily. The Base Rate for a Variable Loan is determined each day by reference to the effective rate for that day. As a result, the Base Rate may change as and when the underlying reference rate changes.<br>**"Variable SOFR"** refers to the secured overnight financing rate calculated by the NYFRB (defined in the Note) based on certain transactions in the U.S. dollar Treasury repo market. Variable SOFR is displayed on the NYFRB's website, currently located at http:// <u>www.newyorkfed.org</u>, and is effective for the Banking Day prior to the date of publication.<br>|

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![](ny20040230x14_ex10-24image03.jpg)

**STATEMENT OF KEY LINE OF CREDIT TERMS**

![](ny20040230x14_ex10-24image04.jpg)

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| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For Short-Term Fixed Loans, the Borrower can select a Base Rate of Term SOFR for one of the Short-Term Fixed Tenors listed above. Term SOFR is a reference rate that may change daily. Once the Short-Term Fixed Tenor is selected, the Base Rate for a Short-Term Fixed Loan will be determined by reference to the effective rate for the first day of the relevant Maturity Period (defined in the Note) and is then fixed for the duration of that Maturity Period.<br>**"Term SOFR"** refers to the CME Group Benchmark Administration Ltd Term SOFR reference rate for the selected Short-Term Fixed Tenor. Term SOFR for the selected Short-Term Fixed Tenor is displayed on the CME Group's website, currently located at https://www.cmegroup.com/market-data/cme-group-benchmark-administration/term-sofr.html#, at approximately 5:00 a.m., Chicago time, two (2) Banking Days prior to the first day of the Maturity Period for the relevant Short-Term Fixed Loan.<br>If a Base Rate would be less than zero, then it will be deemed to be zero for purposes of the Note. For each day of a Loan that is not a Banking Day, the Base Rate for such day will be determined by reference to the Base Rate in effect for the prior Banking Day. If a Base Rate is temporarily not available when selected or temporarily not available for a period equal to the selected Short- Term Fixed Tenor, then the Base Rate will be the Interpolated Rate (defined in the Note), subject to Section 6 of the Note. Section 6 of the Note contains provisions regarding the temporary and permanent replacement of a Base Rate.<br>References to any information service page(s) or website include any replacement page(s) or website which displays the applicable Base Rate and the appropriate page of any replacement information service which displays that Base Rate. References above to any person who administers a Base Rate (for example, the NYFRB in respect of Variable SOFR) include any other person who takes over the administration of that rate. References to when a published Base Rate is effective include any changes in such Base Rate's publication schedule that may be made by the administrator of such Base Rate.  |
| &nbsp;&nbsp;**Banking Day** | &nbsp;&nbsp;Any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed or, with respect to Variable SOFR, Term SOFR or the Fed Funds Effective Rate (defined in the Note), any day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading U.S. government securities. |
| &nbsp;&nbsp;**Governing Law** | &nbsp;&nbsp;New York |
| &nbsp;&nbsp; **State of Organization/State of Trust Governing Law** | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;**JPMorgan Contact Information** | &nbsp;&nbsp; JPMorgan Chase Bank, N.A.<br> 390 Madison Avenue <br> New York, New York 10017<br> Attn: Christopher French<br> Telephone: [phone number] <br>E-Mail: [email]<br>Or such other JPMorgan Contact Information as may be communicated to the Borrower from time to time in accordance with the provisions of the Note.  |

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![](ny20040230x14_ex10-24image03.jpg)

**STATEMENT OF KEY LINE OF CREDIT TERMS**

![](ny20040230x14_ex10-24image04.jpg)

**Important Information:**

● The Note includes mechanisms by which the Bank can replace a Base Rate. An example of when the Bank may need to replace a Base Rate is if a Base Rate is permanently discontinued or unavailable. If this happens, the replacement base rate may be an available Base Rate option identified in the Statement of Key Line of Credit Terms (or, as determined by the Bank in its sole discretion, a forward-looking term rate or compounded rate that is based on, or derived from, such available Base Rate option) and the Applicable Margin used for Interest Rate calculations involving the replacement base rate may be the Applicable Margin that corresponds to such available Base Rate option. It is possible that a Base Rate may be permanently discontinued or unavailable and forward-looking term rate options may not exist or may not be administratively feasible for the Bank. In such an event, it is possible that a replacement base rate may be an overnight rate and Short-Term Fixed Loans may bear interest in the same manner as Variable Loans. The Note provides that the Bank is expressly authorized to make technical, administrative, or operational changes to the Note and the Statement of Key Line of Credit Terms to reflect and/or implement the use of a replacement base rate following a Base Rate's discontinuance or unavailability. These are defined in the Note as "Replacement Base Rate Changes". Refer to Section 6 of the Note for Base Rate replacement provisions.

● The Bank has no control over the determination, calculation, or publication of any Base Rate and the administrator of any Base Rate may alter the methods of calculation, publication schedule, rate revision practices, or availability of such Base Rate at any time without notice. There can be no assurance that a Base Rate will gain market acceptance or will not be discontinued or fundamentally altered in a manner that is adverse to borrowers with Interest Rates derived from that Base Rate. The Base Rates are floating interest rate options and changes in a Base Rate can lead to a higher or lower cost of borrowing. In the event that a Base Rate is no longer available or in certain other circumstances as set forth in the Note, provisions of the Note provide a mechanism for determining an alternative rate of interest. The Bank will notify the Borrower if any Base Rate is no longer available or no longer deemed an appropriate reference rate upon which to determine the Interest Rate on Loans. However, the Bank does not warrant or accept any responsibility for, and shall not have any liability with respect to, the continuation, administration, submission, performance or any other matter related to any Base Rate or with respect to any alternative, successor or replacement rate, including without limitation, whether the composition or characteristics of any such alternative reference rate will be similar to or will produce the same value or economic equivalence as that Base Rate or that it will have the same volume or liquidity as that Base Rate did prior to its discontinuance or unavailability. The Bank and its affiliates and/or other related entities may engage in transactions that affect the calculation of a Base Rate, any Replacement Base Rate (defined in the Note) and/or any relevant adjustment(s), in each case, in a manner adverse to the Borrower.

## Exhibit 10.25

**Exhibit 10.25**

AMENDMENT NO. 2

THIS AMENDMENT, dated as of January 6, 2023 (the "Amendment"), is by and between JPMORGAN CHASE BANK, N.A. (the "Bank") and PERSHING SQUARE CAPITAL MANAGEMENT, L.P. (the "Borrower").

The Borrower has entered into Third Amended and Restated Line of Credit Note in the principal amount of $45,000,000 dated as of January 31, 2021, as amended and otherwise modified (the "Note") in favor of the Bank. The Bank and the Borrower desire to amend the Loan Terms Statement (as defined in the Note) and the Note as set forth herein.

Except as otherwise provided herein, the capitalized terms used in this Amendment shall have the respective meanings assigned to such terms in the Note.

<u>AGREEMENT</u>

In consideration of the foregoing, and the mutual covenants and agreements hereinafter set forth, the parties hereto hereby agree as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>AMENDMENTS</u>. Effective as of the date hereof except as set forth below and subject to the satisfaction of the conditions precedent set forth in Section 2 hereof, the Loan Terms Statement and the Note are hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Loan Terms Statement is amended by replacing the date "January 31, 2023" in the "Expiry Date" section of the Loan Terms Statement with the date "January 31, 2025".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3(b) of the Note is amended by amending and restating the first sentence thereof in full to read as follows:

The Borrower promises to pay interest on each Interest Payment Date on the unpaid balance of the principal amount of each Loan from the date such Loan is made, renewed or converted until such Loan, together with accrued interest thereon, is repaid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8(h) of the Note is amended and restated in full to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor creates, incurs, assumes or permits to exist any debt or contingent liabilities, other than (i) debt and contingent liabilities owing to, or in favor of, the Bank, (ii) debt and/or contingent liabilities owing to, or in favor of, parties other than the Bank and that is specifically disclosed to the Bank in (x) the financial statements of the Borrower dated December 31, 2021, and the Guarantor dated August 31, 2022, and/or (y) the schedule of contingent liabilities dated August 7, 2019 (and any refinancings thereof subsequent to the date hereof which do not increase the principal amount thereof), (iii) debt incurred by entities in which the Guarantor has beneficial ownership interests if such debt is non-recourse to the Guarantor, (iv) other debt and/or contingent liabilities of the Borrower in an aggregate principal amount not to exceed $5,000,000 at any one time outstanding, or (v) other debt and/or contingent liabilities of the Guarantor in an aggregate principal amount not to exceed $25,000,000 at any one time outstanding (as used in this clause, "contingent liabilities" means liabilities under, or with respect to, any guaranty, financial support agreement, letter of credit, or any swap, option or other derivative contract);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8(i) of the Note is amended and restated in full to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor creates, incurs, assumes or suffers to exist any lien or other encumbrance upon or with respect to any of the Borrower's or the Guarantor's real or personal property, other than any such lien in favor of the Bank, or listed on the financial statements of the Borrower dated December 31, 2021, and the Guarantor dated August 31, 2022, and other such liens securing obligations not to exceed $5,000,000 in the aggregate for the Borrower or $25,000,000 in the aggregate for the Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 13(b) of the Note is amended by amending and restating the first sentence thereof in full to read as follows:

Except for (i) any permanent change to a Base Rate and accompanying Applicable Margin or any change to the Loan Terms Statement, in either case, as a result of events described in Section 6 of this Note, (ii) Replacement Base Rate Changes, and (iii) any other change set forth in a new Loan Terms Statement sent by the Bank to the Borrower (x) that incorporates a change requested by the Borrower in a documented communication and agreed to by the Bank or (y) whereby an option is added by the Bank, including, without limitation, an additional Base Rate or Short-Term Fixed Tenor (together with technical, administrative or operational changes of the type contemplated by the defined term "Replacement Base Rate Changes"), no amendment or modification of any provision of this Note (other than an extension by the Bank of the Expiry Date as set forth in the Loan Terms Statement) shall be effective unless the same shall be executed by the Borrower and the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>CONDITIONS PRECEDENT</u>. This Amendment shall not become effective until the Bank has received executed counterparts of this Amendment signed by each of the parties hereto, and acknowledged by the Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>REPRESENTATIONS AND WARRANTIES</u>. The Borrower represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The representations and warranties contained in the Note and each other Facility Document are true and correct on and as of the date hereof as though made on and as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No Event of Default has occurred and is continuing as of the date hereof after giving effect to the transactions contemplated herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>CONTINUED EFFECTIVENESS</u>. Except to the extent expressly amended hereby, all of the terms of the Facility Documents remain in full force and effect. Upon the effectiveness of this Amendment, on and after the date hereof, each reference in the Facility Documents to the Loan Terms Statement shall mean and be a reference to the Loan Terms Statement as amended hereby, and each reference in the Facility Documents to the Note shall mean and be a reference to the Note as amended hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>ACKNOWLEDGMENT OF OUTSTANDING OBLIGATIONS</u>. The Borrower hereby acknowledges, certifies and agrees that: (a) pursuant to the Note, the Bank has made revolving loans to the Borrower that are outstanding as of the date hereof; and (b) except as expressly stated therein, the obligations of the Borrower to repay those loans (with interest) to the Bank and the obligations of the Borrower to perform or otherwise satisfy his other obligations under the Facility Documents (i) each remain and shall continue in full force and effect after giving effect to this Amendment, (ii) are not subject to any defense, counterclaim, or setoff, and (iii) are and shall continue to be governed by the terms and provisions of the Note and the other Facility Documents, as supplemented, modified and amended by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>APPLICABLE LAW</u>. This Amendment shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws principles, and with the laws of the United States of America as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>COUNTERPARTS</u>. This Amendment may be executed in two or more counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one agreement.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

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IN WITNESS WHEREOF, the Bank and the Borrower have duly executed this Amendment, all as of the day and year first above written.

PERSHING SQUARE CAPITAL MANAGEMENT, L.P.

By: PS Management GP, LLC, its General Partner

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| | |
|:---|:---|
| By: | /s/ William A. Ackman |
|  | William A. Ackman |
|  | Managing Member |

---

AGREED TO:

JPMORGAN CHASE BANK, N.A.

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| | |
|:---|:---|
| By: | /s/ Christopher French |
|  | Christopher French |
|  | Managing Director |

---

------

**ACKNOWLEDGMENT AND CONSENT OF GUARANTOR**

The undersigned Guarantor hereby consents to the above amendments, terms and conditions and hereby agrees that his Guaranty is now modified to reflect the changes to the Facility Documents all as set forth above in the foregoing Amendment. The undersigned Guarantor hereby agrees that all of the obligations, terms and conditions contained in his Guaranty (i) are hereby ratified, reaffirmed and republished in all respects, and (ii) are not subject to any defense, counterclaim, setoff, right of recoupment, abatement, reduction or other claim or determination.

---

| |
|:---|
| /s/ William A. Ackman |
| William A. Ackman |

---

## Exhibit 10.26

**Exhibit 10.26**

AMENDMENT NO. 3

THIS AMENDMENT, dated as of March 4, 2024 (the "Amendment"), is by and between JPMORGAN CHASE BANK, N.A. (the "Bank") and PERSHING SQUARE CAPITAL MANAGEMENT, L.P. (the "Borrower").

The Borrower has entered into Third Amended and Restated Line of Credit Note in the principal amount of $45,000,000 dated as of January 31, 2021, as amended and otherwise modified (the "Note") in favor of the Bank. The Bank and the Borrower desire to amend the Loan Terms Statement (as defined in the Note) and the Note as set forth herein.

Except as otherwise provided herein, the capitalized terms used in this Amendment shall have the respective meanings assigned to such terms in the Note.

<u>AGREEMENT</u>

In consideration of the foregoing, and the mutual covenants and agreements hereinafter set forth, the parties hereto hereby agree as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>AMENDMENTS</u>. Effective as of the date hereof and subject to the satisfaction of the conditions precedent set forth in Section 2 hereof, the Loan Terms Statement and the Note are hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Loan Terms Statement is amended by replacing the date "January 31, 2025" in the "Expiry Date" section of the Loan Terms Statement with the date "January 31, 2026".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Loan Terms Statement is further amended by replacing the percentage set forth in the "Applicable Margin" section of the Loan Terms Statement with "2.20%".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Loan Terms Statement is further amended by replacing the dollar amount set forth in the "Minimum Initial Loan Amount" section of the Loan Terms Statement with "$80,000".

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8(p) of the note is amended and restated in its entirety to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp; at any time there shall not be maintained (x) Liquidity in one or more accounts with the Bank titled in the name of any Eligible Person and/or (y) Qualified Ownership Interests titled in the name of any Eligible Person in an aggregate amount (on a combined basis under clause (x) and/or (y)) not less than $265,000,000 (the term "Liquidity" means unencumbered liquid assets, acceptable to the Bank in its sole reasonable discretion; provided that liquid assets otherwise acceptable to the Bank in its sole reasonable discretion which are held in an account with the Bank securing only indebtedness in favor of the Bank will be included as Liquidity for the purposes hereof, but only to the extent (and in the amount) that the market value of such assets exceeds the market value of the account assets that are required by the Bank in its sole discretion to provide the minimum collateral support for such indebtedness; provided, further, that Liquidity shall in no event include any assets held in any 401k, IRA, Keogh, SEP, or similar retirement accounts or plans or a trust; provided, further, that the Liquidity derived from Pershing Square Holdings LTD stock (LSE: PSH) ("PSH Stock") shall not constitute greater than 75% of the aggregate Liquidity at any time (and to the extent that the aggregate Liquidity that is derived from PSH Stock exceeds such percentage at any time, the Liquidity that is derived from PSH Stock shall be excluded from the calculations hereunder in the amount that would cause the aggregate Liquidity that is derived from PSH Stock to be equal to 75% of the aggregate Liquidity derived from all liquid assets at such time; the term "Qualified Ownership Interests" means unencumbered ownership interests in hedge funds acceptable to the Bank in its sole discretion that permit quarterly or more frequent redemptions or withdrawals and are not subject to lock-up or gating provisions; provided that such interests otherwise acceptable to the Bank in its sole discretion that are securing only indebtedness in favor of the Bank may be included as Qualifying Ownership Interests for purposes hereof notwithstanding such encumbrance, but only to the extent (and in the amount) that the market value of such interests exceeds the market value of the interests which are required by the Bank in its sole discretion to provide the minimum collateral support for such indebtedness; provided, further, that Qualifying Ownership Interests shall in no event include any interests held in any 401k, IRA, Keogh, SEP, or similar retirement accounts or plans or a trust; the term "Eligible Person" means the Borrower or the Guarantor or any entity controlled and majority-owned by the Borrower and/or the Guarantor, provided that any Liquidity and/or Qualified Ownership Interests titled in the name of any such entity shall only be deemed acceptable and considered for purposes of this subsection to the proportionate extent (and corresponding amount) that such entity is owned by the Borrower and/or the Guarantor and only if the Borrower or the Guarantor upon any request by the Bank's from time to time promptly provides such evidence as may be required by the Bank to determine whether and to what extent the Borrower and/or Guarantor control and own such entity); it shall also constitute a separate Event of Default hereunder if, within thirty (30) days after the last day of any calendar month, the Borrower fails to furnish to the Bank evidence satisfactory to the Bank in its sole discretion that the foregoing requirement was being complied with, unless it was complied with solely on the basis of Liquidity (in one or more accounts at the Bank);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>CONDITIONS PRECEDENT</u>. This Amendment shall not become effective until the Bank has received executed counterparts of this Amendment signed by each of the parties hereto, and acknowledged by the Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>REPRESENTATIONS AND WARRANTIES</u>. The Borrower represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The representations and warranties contained in the Note and each other Facility Document are true and correct on and as of the date hereof as though made on and as of such date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No Event of Default has occurred and is continuing as of the date hereof after giving effect to the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>CONTINUED EFFECTIVENESS</u>. Except to the extent expressly amended hereby, all of the terms of the Facility Documents remain in full force and effect. Upon the effectiveness of this Amendment, on and after the date hereof, each reference in the Facility Documents to the Loan Terms Statement shall mean and be a reference to the Loan Terms Statement as amended hereby, and each reference in the Facility Documents to the Note shall mean and be a reference to the Note as amended hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>ACKNOWLEDGMENT OF OUTSTANDING OBLIGATIONS</u>. The Borrower hereby acknowledges, certifies and agrees that: (a) pursuant to the Note, the Bank has made revolving loans to the Borrower that are outstanding as of the date hereof; and (b) except as expressly stated therein, the obligations of the Borrower to repay those loans (with interest) to the Bank and the obligations of the Borrower to perform or otherwise satisfy his other obligations under the Facility Documents (i) each remain and shall continue in full force and effect after giving effect to this Amendment, (ii) are not subject to any defense, counterclaim, or setoff, and (iii) are and shall continue to be governed by the terms and provisions of the Note and the other Facility Documents, as supplemented, modified and amended by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>APPLICABLE LAW</u>. This Amendment shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws principles, and with the laws of the United States of America as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>COUNTERPARTS</u>. This Amendment may be executed in two or more counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one agreement.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

------

IN WITNESS WHEREOF, the Bank and the Borrower have duly executed this Amendment, all as of the day and year first above written.

PERSHING SQUARE CAPITAL MANAGEMENT, L.P.

By: PS Management GP, LLC, its General Partner

---

| | |
|:---|:---|
| By: | /s/ William A. Ackman |
|  | William A. Ackman |
|  | Managing Member |

---

AGREED TO:

JPMORGAN CHASE BANK, N.A.

---

| | |
|:---|:---|
| By: | /s/ Laura Tonnessen |
|  | Laura Tonnessen |
|  | Vice President |

---

------

**ACKNOWLEDGMENT AND CONSENT OF GUARANTOR**

The undersigned Guarantor hereby consents to the above amendments, terms and conditions and hereby agrees that his Guaranty is now modified to reflect the changes to the Facility Documents all as set forth above in the foregoing Amendment. The undersigned Guarantor hereby agrees that all of the obligations, terms and conditions contained in his Guaranty (i) are hereby ratified, reaffirmed and republished in all respects, and (ii) are not subject to any defense, counterclaim, setoff, right of recoupment, abatement, reduction or other claim or determination.

---

| |
|:---|
| /s/ William A. Ackman |
| William A. Ackman |

---

## Exhibit 10.27

**Exhibit 10.27**

![](ny20040230x14_ex10-27image01.jpg)

**LINE OF CREDIT NOTE**

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| | |
|:---|:---|
| $95000000 | Dated as of December 15, 2021 |

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For value received, Pershing Square Capital Management, L.P. (the "Borrower"), promises to pay to JPMorgan Chase Bank, N.A. (the "Bank"), the principal amount of each loan made by the Bank to the Borrower or, if less, the total unpaid principal amount of all Variable Loans and Short-Term Fixed Loans (each, a "Loan" and, collectively, the "Loans") made to the Borrower by the Bank under this Line of Credit Note (as amended, restated, supplemented or otherwise modified from time to time in accordance with its terms, the "Note"), up to an aggregate principal amount of Ninety-Five Million and 00/100 Dollars ($95,000,000.00), on the Maturity Date (as defined below) of each such Loan, together with interest at such rates and payable on such dates as set forth below. No Maturity Date may be later than the Expiry Date as set forth in the most recent Statement of Key Line of Credit Terms (the "Loan Terms Statement") issued by the Bank in connection with this Note (the "Final Maturity Date"). All capitalized terms used but not defined in this Note shall be used as defined in the Loan Terms Statement. The Loan Terms Statement is incorporated by reference into this Note.

**The Borrower acknowledges and agrees that, notwithstanding any provision of this Note, or any other Facility Document, the Bank has no obligation to make a Loan under the line of credit evidenced by this Note (the "Line of Credit") and this Note does not create any contractual or other commitment to lend by the Bank. Any Loan made by the Bank hereunder matures on its applicable Maturity Date and the Bank has no commitment to convert or renew any such Loan or make a new Loan. This Note is executed and delivered by the Borrower to the Bank to evidence any Loans that the Bank may extend to the Borrower in the Bank's sole discretion. Not in limitation of any of the foregoing or any term or condition of Section 8 of this Note, the Bank does not intend to make any Loan if the Aggregate Loan Balance (as defined below) after giving effect to any such Loan would exceed the Borrowing Base (as defined below).**

Requests for Loans shall be made in accordance with the procedures outlined in Section 2. The Loan Type section in the Loan Terms Statement sets forth the type(s) of Loans the Borrower may request. Provisions in Section 2 related to a conversion of a Variable Loan will only apply in the event that Short-Term Fixed Loans are an available Loan Type and/or there is more than one Base Rate available for Variable Loans. The initial Loan made under this Note must be in an amount at least equal to the Minimum Initial Loan Amount. A Short-Term Fixed Loan, if made, must be in an amount at least equal to the Short-Term Fixed Loan Minimum Amount. If there is more than one Base Rate set forth in the Loan Terms Statement, then the Base Rate applicable to each Loan shall be selected by the Borrower from the options set forth in the Loan Terms Statement. Each Loan, if made, shall bear interest at the Interest Rate identified in the Loan Terms Statement. If a Base Rate becomes temporarily or permanently unavailable, it will be replaced in accordance with the provisions of Section 6.

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**Section 1**. **<u>Definitions</u>**. As used in this Note, the following terms have the meaning specified below:

"$", "USD" and "dollars" denote lawful money of the United States of America.

"Aggregate Loan Balance" means, at any time, the aggregate principal amount outstanding under this Note at such time.

"Annual Average Management Fee Total" means, at any time, (i) the sum of (x) the Annual Projected Management Fee Total and (y) the Annual Trailing Management Fee Total *divided by* (ii) two (2).

"Annual Projected Management Fee Total" means, at any time, the aggregate amount of Eligible Management Fees reasonably projected by the Borrower to be received by the Borrower during the then current calendar quarter and the immediately following three calendar quarters, as reported to the Bank in the applicable Compliance Certificate and adjusted by the Bank from time to time in its sole discretion.

"Annual Trailing Management Fee Total" means, at any time, the aggregate amount of Eligible Management Fees (it being noted, however, that the Bank did not have a security interest in such fees until the effective date of the Pledge Agreement) received by the Borrower during the prior four calendar quarters, as reported to the Bank in the applicable Compliance Certificate and adjusted by the Bank from time to time in its sole discretion but in no event to an amount less than the actual Eligible Management Fees (provided, however, that the Bank did not have a security interest in such fees until the effective date of the Pledge Agreement) paid by the Managed Funds to the Pledged Account during the relevant period.

"Applicable Margin" has the meaning set forth in the Loan Terms Statement.

"Bank" is defined in the first paragraph of this Note.

"Banking Day" has the meaning set forth in the Loan Terms Statement.

"Base Rate" has the meaning set forth in the Loan Terms Statement.

"Beneficial Ownership Certification" means a certification regarding beneficial ownership and/or control as required by the Beneficial Ownership Regulation.

"Beneficial Ownership Regulation" means 31 C.F.R. § 1010.230.

"Borrower" has the meaning set forth in the Loan Terms Statement and in the first paragraph of this Note.

"Borrowing Base" means (i) during the period commencing on the date hereof, through and including January 31, 2022, 60% of the Annual Average Management Fee Total and (ii) 50% of the Annual Average Management Fee Total thereafter.

"Compliance Certificate" means a compliance certificate in the form of Exhibit A hereto.

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"Default Rate" means, with respect to any Loan, (i) at the time of notice of the Event of Default until the Maturity Date of such Loan, a rate per annum equal to a floating rate of 2% above the Base Rate for such Loan plus the Applicable Margin for such Loan, and (ii) from and after the Maturity Date of such Loan, a rate per annum equal to a floating rate of 2% above the Prime Rate plus the Applicable Margin that applied to such Loan prior to its Maturity Date.

"Electronic Note" is defined in Section 16.

"Eligible Management Fee AUM" means the aggregate capital amount in respect of which Eligible Management Fees are calculated and paid (such capital amount, as to each Managed Fund, being the specific figure used to calculate Eligible Management Fees in respect of such Managed Fund in accordance with the applicable Management Agreement (e.g., the total capital committed to such Managed Fund or the net asset value of such Managed Fund, as applicable)).

"Eligible Management Fees" means Management Fees in which the Bank has a valid and perfected, first-priority security interest pursuant to the Pledge Agreement, received or to be received by the Borrower in cash, but not including any performance based fees, transaction specific or other non-recurring fees, or any fees payable by or on behalf of any portfolio company of any Managed Fund.

"Event of Default" is defined in Section 8.

"Facility Documents" means this Note, the Loan Terms Statement, the Guaranty, the Pledge Agreement (and each "Irrevocable Direction Letter" thereunder), and any other documents or instruments executed as security or collateral for, or a guarantee of, the Loans, or in connection with or as support of, any of the foregoing, and any updates or renewals thereof.

"Fed Funds Effective Rate" means the rate calculated by the NYFRB based on federal funds transactions by depository institutions. The Fed Funds Effective Rate is displayed on the NYFRB's website and is effective for the Banking Day prior to the date of publication. If the Fed Funds Effective Rate as so determined would be less than zero, such rate shall be deemed to be zero for purposes of this Note.

"Governing Law" has the meaning set forth in the Loan Terms Statement.

"Guarantor" means William A. Ackman, a natural person.

"Guaranty" means that certain Guaranty, dated as of the date hereof, by the Guarantor in favor of the Bank, as the same may be amended, restated or supplemented from time to time.

"Impacted Base Rate" is defined in Section 6(b).

"Interest Payment Date" has the meaning set forth in the Loan Terms Statement.

"Interest Rate" has the meaning set forth in the Loan Terms Statement.

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"Interpolated Rate" means, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in relation to the Base Rate for a Variable Loan, the rate per annum determined by the Bank from interpolating on a linear basis between the nearest shortest and nearest longest published rate maturities which are available for the reference rate from which such Base Rate is derived; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in relation to the Base Rate for a Short-Term Fixed Loan, the rate per annum determined by the Bank from interpolating on a linear basis between (a) the longest published rate maturity which is available for the reference rate from which such Base Rate is derived that is shorter than the Short-Term Fixed Tenor of such Loan and (b) the shortest published rate maturity which is available for the reference rate from which such Base Rate is derived that exceeds such Short- Term Fixed Tenor.

If the Interpolated Rate is less than zero, then such rate shall be deemed to be zero for purposes of this Note. The Interpolated Rate will be rounded to the same number of decimal places as the Base Rate of such Loan. Any determination of the Interpolated Rate by the Bank shall be conclusive and binding absent manifest error.

"JPMorgan Contact Information" has the meaning set forth in the Loan Terms Statement.

"Line Amount" has the meaning set forth in the Loan Terms Statement.

"Line of Credit" is defined in the second paragraph of this Note.

"Loan" and "Loans" are defined in the first paragraph of this Note.

"Loan Terms Statement" is defined in the first paragraph of this Note.

"Loan Type" has the meaning set forth in the Loan Terms Statement.

"Managed Fund" means any investment fund managed or otherwise advised by the Borrower, provided, however, that Borrower may in the future, in its sole discretion and upon written notice to the Bank, exclude from this definition any newly-formed investment fund with investment objectives substantially different from the investment funds managed by the Borrower as of the date of this Note (and provided that such excluded fund is not listed in Schedule 1 to the Pledge Agreement).

"Managed Fund Partnership Agreement" means, with respect to any Managed Fund, the partnership agreement of such Managed Fund, or if such Managed Fund is not a partnership, the equivalent or substantially equivalent organizational document of such Managed Fund (such as a limited liability company agreement or memorandum and articles of association).

"Management Agreement" means any agreement regarding the payment of Management Fees by or on behalf of a Managed Fund to the Borrower, whether referred to as an "Investment Advisory Agreement," an "Advisory Agreement", a "Sub-Advisory Agreement," an "Investment Management Agreement," a "Management Agreement," a "Sub-Management Agreement," or otherwise, and whether or not it is also a Managed Fund Partnership Agreement, including any side letter or other documentation modifying any such Management Agreement.

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"Management Fees" means any management, investment management, advisory, and other fees of any kind earned by, or otherwise payable to, the Borrower from or on behalf of any Managed Fund, in each case whether referred to as a "Management Fee" or otherwise.

"Maturity Date" means, with respect to (i) any Variable Loan, the immediately succeeding Banking Day after the date such Loan was made or renewed and (ii) any Short-Term Fixed Loan, the last day of the Maturity Period of such Loan; provided, that if any Maturity Date of a Short- Term Fixed Loan would be a day that is not a Banking Day, then such Maturity Date shall be the immediately succeeding Banking Day, unless such immediately succeeding Banking Day would fall in the next calendar month, in which case such Maturity Date shall be the immediately preceding Banking Day.

"Maturity Period" means, for a Short-Term Fixed Loan, the period commencing on the date such Short-Term Fixed Loan is made and ending on the numerically corresponding day in a subsequent calendar month or months, as determined by the Short-Term Fixed Tenor selected by the Borrower. In the case of a renewal of an existing Short-Term Fixed Loan or the conversion of a Variable Loan (or portion thereof) to a Short-Term Fixed Loan, the Maturity Period shall commence on the effective date of such renewal or conversion. Notwithstanding the foregoing, any Maturity Period of a Short-Term Fixed Loan which commences on the last Banking Day of a calendar month (or on any day for which there is no numerically corresponding day in the appropriate subsequent calendar month) shall end on the last Banking Day of the appropriate calendar month.

"Minimum Initial Loan Amount" has the meaning set forth in the Loan Terms Statement.

"Morgan Affiliate" means an affiliate of the Bank, as such term is defined under Regulation W promulgated by the Federal Reserve Board.

"Note" has the meaning set forth in the Loan Terms Statement and the first paragraph hereof.

"NYFRB" means the Federal Reserve Bank of New York (or any successor thereto).

"Paper-Based Note" is defined in Section 16.

"Pledge Agreement" means that certain Pledge and Security Agreement, dated as of the date hereof, by the Borrower in favor of the Bank, as the same may be amended, restated or supplemented from time to time.

"Pledged Account" has the meaning assigned to such term in the Pledge Agreement.

"Prime Rate" means the rate of interest per annum announced from time to time by the Bank as its prime rate. Each change in the Prime Rate shall be effective from and including the date the change is announced as being effective. The Prime Rate is a reference rate and may not be the Bank's lowest rate. If the Prime Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Note.

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"Regulation D" means Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor thereto or other regulation or official interpretation of said Board of Governors relating to reserve requirements applicable to member banks of the Federal Reserve System.

"Regulatory Change" means the occurrence after the date of this Note of (i) the adoption of any law, rule, regulation, or treaty, (ii) any change in any law, rule, regulation, or treaty, or in the interpretation or application thereof by any governmental or regulatory authority, or (iii) compliance by the Bank with any request, guideline, or directive (whether or not having the force of law and whether domestic or foreign) of any governmental or regulatory authority made or issued after the date of this Note.

"Relevant Governing Body" means the Federal Reserve Board, the NYFRB (or any successor thereto), and/or a committee they officially endorse or convene.

"Replacement Base Rate" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for an Impacted Base Rate, (a) for Variable Loans, the other Base Rate option for Variable Loans, if any, identified in the Loan Terms Statement, and (b) for Short-Term Fixed Loans, the other Base Rate option for Short-Term Fixed Loans, if any, identified in the Loan Terms Statement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if a Replacement Base Rate cannot be determined in accordance with clause (i) because the applicable Loan Type does not have another Base Rate option identified in the Loan Terms Statement, then the Replacement Base Rate shall be the Base Rate option, regardless of Loan Type, identified in the Loan Terms Statement that is not an Impacted Base Rate (or, as determined by the Bank in its sole discretion, an overnight rate, forward-looking term rate, and/or compounded rate that is based on or derived therefrom); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if all Base Rates identified in the Loan Terms Statement are Impacted Base Rates, then the Replacement Base Rate shall be the sum of: (a) an alternate benchmark rate selected by the Bank, and (b) a spread adjustment (which may be a positive, negative, or zero value, but, for the avoidance of doubt, will not have an impact on the corresponding Applicable Margin) selected by the Bank, in each case, after giving due consideration to (I) any replacement rate and/or spread adjustment, or method for determining such replacement rate or spread adjustment, that is identified as such by a Relevant Governing Body, and/or (II) any evolving or then-prevailing market convention for determining a rate of interest and spread adjustment as a replacement to the Impacted Base Rate(s) for credit facilities, at such time, that are denominated in USD and similar to the credit facility established under the Facility Documents.

If the Replacement Base Rate would be less than zero, the Replacement Base Rate will be deemed to be zero for purposes of this Note.

"Replacement Base Rate Changes" is defined in Section 6(b).

"Replacement Event" is defined in Section 6(b).

"Schedule of Contingent Liabilities" is defined in Section 8(j).

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"Short-Term Fixed Loan" has the meaning set forth in the Loan Terms Statement.

"Short-Term Fixed Loan Minimum Amount" has the meaning set forth in the Loan Terms Statement.

"Short-Term Fixed Tenor" has the meaning set forth in the Loan Terms Statement.

"Specified Event" is defined in Section 8(d).

"Temporary Impacted Base Rate" is defined in Section 6(a).

"Temporary Replacement Base Rate" means, for any Temporary Impacted Base Rate, the sum of (i) the Fed Funds Effective Rate and (ii) 0.50%; provided, that at any time the Fed Funds Effective Rate is not displayed on a website, screen, or other information service that publishes such rate from time to time, as selected by the Bank, then the Temporary Replacement Base Rate shall be the sum of: (a) a temporary alternate benchmark rate selected by the Bank, and (b) a spread adjustment (which may be a positive, negative, or zero value, but, for the avoidance of doubt, will not have an impact on the corresponding Applicable Margin) selected by the Bank, in each case, after giving due consideration to (I) any temporary replacement rate and/or spread adjustment, or method for determining such temporary replacement rate or spread adjustment, that is identified as such by a Relevant Governing Body and/or (II) any evolving or then-prevailing market convention for determining a rate of interest and spread adjustment as a temporary replacement to the Temporary Impacted Base Rate for credit facilities, at such time, that are denominated in USD and similar to the credit facility established under the Facility Documents. If the Temporary Replacement Base Rate as determined above would be less than zero, the Temporary Replacement Base Rate will be deemed to be zero for purposes of this Note.

"Variable Loan" has the meaning set forth in the Loan Terms Statement.

**Section 2. <u>Requests for Loans, Conversions and Renewals</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Requests for a Variable Loan need to be received not later than noon, New York City time, on the date of the proposed borrowing. Requests for a Short-Term Fixed Loan need to be received not later than noon, New York City time, three (3) Banking Days before the date of the proposed borrowing. Proceeds of any Loan extended under this Note shall be (i) credited to an account of the Borrower maintained with the Bank or (ii) credited to another account as directed by the Borrower to the extent permitted by the Bank and subject to such conditions as the Bank may require in its sole discretion; provided, that the Bank is entitled to rely on information provided by the Borrower without investigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The outstanding principal balances of Variable Loans utilizing the same Base Rate shall be aggregated. If a Variable Loan has an outstanding principal balance equal to or in excess of the Short-Term Fixed Loan Minimum Amount and Short-Term Fixed Loans are identified as a Loan Type in the Loan Terms Statement, such Variable Loan may be entirely or partially (if such portion is at least equal to the Short-Term Fixed Loan Minimum Amount) converted to a Short- Term Fixed Loan upon the Borrower's request. The Base Rate of an outstanding Variable Loan may, upon the Borrower's request, be converted to another Base Rate that is identified as an option for Variable Loans in the Loan Terms Statement. All requests to convert the Base Rate of a Variable Loan to another Base Rate identified as an option for Variable Loans in the Loan Terms Statement need to be received not later than noon, New York City time, on the date of the proposed conversion. All requests for a conversion to a Short-Term Fixed Loan need to be received not later than noon, New York City time, three (3) Banking Days before the date of the proposed conversion. All conversion requests of any kind must be made in accordance with this Section 2 and procedures and requirements established by the Bank from time to time. The Bank is not obligated to honor a conversion request.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Bank may, but shall not be obligated to, renew (i) a Variable Loan as a Variable Loan with the same Base Rate and a Short-Term Fixed Loan with an outstanding balance less than the Short-Term Fixed Loan Minimum Amount as a Variable Loan and, if available, with a Base Rate derived from the same reference rate, in each case, unless a request to the contrary is received from the Borrower not later than noon, New York City time, on the Maturity Date of such Loan, and (ii) a Short-Term Fixed Loan with an outstanding balance at least equal to the Short-Term Fixed Loan Minimum Amount as a Short-Term Fixed Loan with the same Base Rate for a Maturity Period with a duration equal to that then ending, unless a request to the contrary is received from the Borrower not later than noon, New York City time, three (3) Banking Days prior to the Maturity Date of such Loan. Notwithstanding the foregoing, no renewal shall be made if the Maturity Date, after giving effect to any such renewal, would occur after the Final Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to such conditions and procedures as the Bank may require in its sole discretion, requests described above can be made by telephone, in writing, electronically or through an Internet portal provided by the Bank. Any request shall be irrevocable and specify: (i) in the case of a Loan request, the amount and Loan Type requested, which shall be a Loan Type identified in the Loan Terms Statement, and the borrowing date of such requested Loan, which shall be a Banking Day; (ii) in the case of a Variable Loan request, the Base Rate requested; (iii) in the case of a Short-Term Fixed Loan request, the Short-Term Fixed Tenor requested; and (iv) in the case of a conversion request permitted under clause (b), the Loan (or portion thereof in the case of a Variable Loan converting to a Short-Term Fixed Loan) to be converted, the date of the proposed conversion, which shall be a Banking Day, the Loan Type to be converted into and Base Rate requested, and, if applicable, the Short-Term Fixed Tenor requested; provided, that, in the case of clauses (iii) and (iv), in respect of a Short-Term Fixed Loan, if no Short-Term Fixed Tenor is specified, then the Borrower shall be deemed to have selected a Short-Term Fixed Tenor of one (1) month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Borrower acknowledges that the Bank will use reasonable procedures to determine that a request described in this Section 2 was provided by the Borrower or someone the Borrower authorized. The Borrower agrees that it shall be bound by any such request or notice that the Bank, in good faith, believes was provided by the Borrower or someone the Borrower authorized, regardless of how such request or notice was transmitted to the Bank and the Bank will not be liable for any loss, cost or expense for acting on such request or notice.

**Section 3. <u>Interest; Repayment of Loans.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The principal amount of each Loan outstanding under this Note, together with accrued interest thereon, shall be due and payable on the earlier of (i) its Maturity Date if such Loan is not renewed by the Bank or (ii) the Final Maturity Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Borrower promises to pay interest on each Interest Payment Date on the unpaid balance of the principal amount of each Loan from the date such Loan is made, renewed or converted until such Loan, together with accrued interest thereon, is repaid in full. After the occurrence of an Event of Default, the Bank may, at its option, by notice to the Borrower (which notice may be revoked at the option of the Bank), declare that all Loans shall bear interest at the Default Rate from and including the date of notice of such Event of Default until the earliest to occur of the date on which (x) such Event of Default is cured and (y) such Loans are paid in full, such interest to be payable on demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year) and, in each case, shall be payable for the actual number of days elapsed (including the first day, but excluding the last day).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All payments (including any prepayments) hereunder shall be made in lawful money of the United States and in immediately available funds. Any extension of time for the payment of the principal of this Note resulting from the due date falling on a non-Banking Day shall be included in the computation of interest. The Bank may (but shall not be obligated to) debit the amount of any payment under this Note that is not made when due from any deposit account of the Borrower with the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) As of the first calendar month end at which Eligible Management Fee AUM is less than $6,000,000,000, the Line Amount shall reduce by $5,000,000, (ii) as of the first calendar month end at which Eligible Management Fee AUM is less than $5,000,000,000, the Line Amount shall further reduce by $10,000,000, and (iii) as of the first calendar month end at which Eligible Management Fee AUM is less than $4,500,000,000, the Line Amount shall reduce to $0, this constitutes an "Event of Default" and the Borrower shall, not later than thirty (30) days after any such reduction in the Line Amount, repay the principal amount of Loans in the amount, if any, by which the outstanding principal balance of this Note exceeds the Line Amount after giving effect to each such reduction. For the avoidance of doubt, it is noted that pursuant to the preceding sentence, more than one reduction of the Line Amount may occur simultaneously as of a single calendar month end. Any reductions of the Line Amount under this clause (e) shall be automatic and permanent.

**Section 4. <u>Prepayments.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Borrower shall have the right at any time and from time to time to prepay any Loan, in whole or in part, without premium or penalty (except as required by clause (c) of this Section), subject to prior notice in accordance with clause (b) of this Section and, if applicable, payment of any break funding expenses under clause (c) of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At no time may the Aggregate Loan Balance exceed the Borrowing Base. If, at any time, the Aggregate Loan Balance shall exceed the Borrowing Base, then the Borrower shall within three (3) Banking Days prepay the outstanding principal balance of this Note in a sufficient amount such that, after giving effect to such prepayment, the Borrowing Base shall equal or exceed the Aggregate Loan Balance.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Borrower shall notify the Bank of any prepayment under clause (a)(i) of this Section, (i) in the case of a Variable Loan, not later than noon, New York City time, on the date of prepayment and (ii) in the case of a Short-Term Fixed Loan, not later than noon, New York City time, three (3) Banking Days before the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date, which shall be a Banking Day, and the principal amount of each Loan or portion thereof to be prepaid. Subject to such conditions and procedures as the Bank may require from time to time in its sole discretion, notices can be provided by telephone, in writing, electronically or through an Internet portal provided by the Bank. Each prepayment of a Loan shall be accompanied by accrued interest and, if applicable, break funding payments pursuant to clause (c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If for any reason there is a principal payment of a Short-Term Fixed Loan, in whole or in part, other than on the Maturity Date of such Loan (whether by prepayment, acceleration or otherwise), then the Borrower shall pay to the Bank such amount as shall be sufficient (in the reasonable opinion of the Bank) to compensate the Bank for any costs which the Bank incurs as a result of such principal payment. The Borrower acknowledges that the compensation described in this clause (c) is intended to compensate the Bank for the loss of its investment and the expense incurred with the making of such Short-Term Fixed Loan which will not be fully repaid if such Short-Term Fixed Loan is prepaid and such compensation is the Bank's reasonable estimate of its damages from the prepayment and is not intended to be a penalty. The Bank shall provide the Borrower with a statement setting forth the amount or amounts calculated under this Section 4(c) and such amount, absent manifest error, shall be paid by the Borrower to the Bank within ten (10) days after receipt thereof.

**Section 5. <u>Additional Costs</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If as a result of any Regulatory Change which (i) imposes, modifies, or deems applicable any reserve (including pursuant to regulations issued from time to time by the Federal Reserve Board for determining the maximum reserve requirement (including any emergency, special, supplemental or other marginal reserve requirement) with respect to eurocurrency funding (currently referred to as "Eurocurrency liabilities" in Regulation D)), special deposit, deposit insurance or assessments, minimum capital or liquidity, capital ratios or similar requirements relating to any extension of credit or other assets of, or any deposits with or other liabilities of the Bank or its holding company, or (ii) imposes any other condition affecting this Note, the Bank reasonably determines (which determination shall be conclusive absent manifest error) that the cost to it of making or maintaining a Loan is increased or any amount received or receivable by the Bank under this Note is reduced, then the Borrower will pay to the Bank on request an additional amount that the Bank reasonably determines will compensate it for the increased cost or reduction in amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Without limiting the effect of the foregoing provisions of this Section 5 (but without duplication), the Borrower shall pay to the Bank from time to time on request such amounts as the Bank may reasonably determine to be necessary to compensate the Bank for any costs imposed due to a Regulatory Change which it reasonably determines are attributable to the maintenance by it or any of its affiliates of capital in respect of the Loans hereunder pursuant to any law or regulation of any jurisdiction or any interpretation, directive or request (whether or not having the force of law) of any court or governmental or monetary authority. Any such compensation shall include, without limitation, an amount equal to any reduction in return on assets or equity of the Bank to a level below that which it could have achieved but for such law, regulation, interpretation, directive or request.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any amounts required to be paid by the Borrower under this Section 5 shall be consistent with amounts that the Bank is generally charging other borrowers similarly situated to the Borrower under comparable provisions of similar credit facilities. The Bank shall provide the Borrower with a certificate setting forth the amount or amounts calculated under this Section 5 and such amount, absent manifest error, shall be paid by the Borrower to the Bank within ten (10) days after receipt thereof. Upon the occurrence of any event giving rise to the Borrower's obligation to pay additional amounts to the Bank under this Section 5, the Bank will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of the Bank) to designate a different lending office if such designation would reduce or obviate the obligations of the Borrower to make future payments of such additional amounts; provided that such designation is made on such terms that the Bank and its lending office suffer no unreimbursed cost or material legal or regulatory disadvantage (as reasonably determined by the Bank), with the object of avoiding future consequence of the event giving rise to the operation of any such provision. Failure or delay on the part of the Bank to demand compensation pursuant to the foregoing provisions of this Section 5 shall not constitute a waiver of the Bank's right to demand such compensation.

**Section 6. <u>Base Rate Unavailability</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Temporary</u>**. If the Bank determines that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;adequate and reasonable means do not exist for ascertaining a Base Rate for a Variable Loan or for the applicable Short-Term Fixed Tenor of a Short-Term Fixed Loan, including, without limitation, by means of the Interpolated Rate; provided, that no Replacement Event (defined in clause (b) below) has occurred at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a Base Rate will not adequately and fairly reflect the cost to the Bank of making or maintaining the applicable Loan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; it is unlawful for the Bank to maintain any Loan at the Base Rate selected by the Borrower;

THEN, such Base Rate shall be considered a "Temporary Impacted Base Rate" and the Bank shall give the Borrower prompt notice thereof. Until the Bank notifies the Borrower that the circumstances giving rise to such notice no longer exist, (A) the Temporary Impacted Base Rate is deemed not to be available and will be replaced with the Temporary Replacement Base Rate, (B) all references to "Base Rate" in respect of the Temporary Impacted Base Rate only, shall be deemed to be references to the "Temporary Replacement Base Rate", and (C) if the Temporary Impacted Base Rate applies to any existing Short-Term Fixed Loan, then the Temporary Replacement Base Rate will apply at the end of such Short-Term Fixed Loan's Maturity Period unless the circumstances in clause (iii) have arisen, in which case the Temporary Replacement Base Rate shall apply immediately.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Permanent</u>.** Notwithstanding anything to the contrary herein or in any other Facility Document, a Base Rate is deemed no longer to be available and will be replaced if any of the following events (each, a "Replacement Event") occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a public statement is made or there is publication of information by or on behalf of the administrator of a Base Rate, the regulatory supervisor for the administrator of a Base Rate, the U.S. Federal Reserve System, an insolvency official or resolution authority with jurisdiction over the administrator of a Base Rate, or a court or an entity with similar insolvency or resolution authority over the administrator of a Base Rate, in each case, which states that such administrator has ceased or will cease to provide such Base Rate, permanently or indefinitely, provided that, at that time, there is no successor administrator that will continue to provide such Base Rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a public statement is made or there is publication of information by the regulatory supervisor for the administrator of a Base Rate announcing that such Base Rate is no longer representative.

If a Replacement Event occurs in respect of a Base Rate, then such Base Rate shall be considered an "Impacted Base Rate" and the Bank shall give the Borrower prompt notice thereof. After a Replacement Event occurs, (A) an Impacted Base Rate is deemed not to be available as a Base Rate option and will be replaced with the applicable Replacement Base Rate, (B) all references to "Base Rate" in respect of the Impacted Base Rate only, shall be deemed to be references to the "Replacement Base Rate", (C) if the Impacted Base Rate applies to any existing Short-Term Fixed Loan, then the applicable Replacement Base Rate will apply at the end of such Short-Term Fixed Loan's Maturity Period, and (D) if the applicable Replacement Base Rate is determined based on clauses (i) or (ii) of the definition of Replacement Base Rate, then the Applicable Margin for such Replacement Base Rate shall be the Applicable Margin that corresponds to the Base Rate option upon which such Replacement Base Rate is based. Refer to Section 1 of this Note for the definition of Replacement Base Rate.

The Bank will have the right, from time to time, by notice to the Borrower, to make any technical, administrative, or operational changes (including, without limitation, (I) changes to the definitions of Banking Day and Interest Payment Date, (II) timing and frequency of determining rates and making payments of interest, (III) inclusion of compounding methodologies and conventions if applicable, and (IV) other administrative matters (collectively, "Replacement Base Rate Changes")) that the Bank decides in its reasonable discretion may be appropriate to reflect the adoption and implementation of the Replacement Base Rate. The Replacement Base Rate, together with all such Replacement Base Rate Changes as specified in any notice, shall become effective on the date specified by the Bank in the notice, without any further action or consent of the Borrower. The Base Rate options set forth in the Loan Terms Statement could be replaced more than once during the term of this Note based on the events described in this clause (b). Until a Replacement Base Rate shall be determined and only to the extent the Impacted Base Rate is not available or published or permitted to be utilized at such time on a current basis, the last paragraph of clause (a) above shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Determinations</u>**. Any determination, decision, or election that may be made by the Bank pursuant to clauses (a) or (b) of this Section 6, including any conclusion that it is not possible to determine the Interpolated Rate, any determination with respect to a rate or adjustment or the occurrence or non-occurrence of an event, circumstance or date, and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its sole discretion and without consent from the Borrower.

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**Section 7**. **<u>Representations and Warranties</u>**. The Borrower represents and warrants as of the date of this Note, as of the date of any request for a Loan or conversion thereof, and as of the date of any Loan renewal, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; this Note and any of the other Facility Documents executed by the Borrower constitute valid, enforceable and binding agreements, except as may be limited by bankruptcy, insolvency, or other similar laws affecting the enforcement of creditors' rights generally and by general principles of equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the execution, delivery and performance by the Borrower of the Facility Documents to which it is a party, and the use of the proceeds of any of the Loans, do not (i) conflict with any agreement by which it is bound or result in the creation of any lien, charge or encumbrance upon the property or assets of the Borrower thereunder (other than pursuant to any Facility Documents), (ii) violate any provision of any law, rule, regulation (including, without limitation, Regulation U of the Federal Reserve Board), order, writ, judgment or injunction presently in effect having applicability to the Borrower, or (iii) require the consent or approval of any individual, business, governmental authority or other entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; no litigation, claim, investigation, administrative proceeding or similar action is pending or, to the Borrower's knowledge, threatened (i) involving or affecting any material part of the Borrower's assets, any of the Facility Document collateral, or the transactions contemplated in the Facility Documents or (ii) against the Borrower that, if adversely determined, is likely to have a material adverse effect on the financial condition of the Borrower. There are currently no material judgments entered against the Borrower and the Borrower is not in default with respect to any judgment, writ, injunction or order of any court or other judicial authority, which default is likely to have or has had a material adverse effect on the financial condition of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) the Borrower is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has all requisite power and authority to execute and deliver, and perform its obligations under, the Facility Documents; (ii) the Borrower is not, and after giving effect to application of the proceeds of any Loan will not be, required to register as an "investment company" as such term is defined in the Investment Company Act of 1940, as amended; (iii) the Borrower's jurisdiction of organization is the state listed as "State of Organization" in the Loan Terms Statement; (iv) to the extent the Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, the Bank has received a Beneficial Ownership Certification in relation to the Borrower; and (v) the information included in any such Beneficial Ownership Certification most recently provided to the Bank is true and correct in all respects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; as of the date of this Note the Borrower is not a "legal entity customer" under the Beneficial Ownership Regulation.

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**Section 8**. **<u>Events of Default</u>**. If any one or more of the following events shall occur (each an "Event of Default"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower fails to pay the principal of this Note as and when due and payable (including any mandatory prepayment required pursuant to Section 4 of this Note) or fails to pay any interest on this Note, or any other amount payable under this Note, within five (5) Banking Days of the date as and when due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor (i) fails to observe or perform any other term or agreement of any of the Facility Documents that is not specifically referred to in clauses (ii)-(iv) of this subsection (b) or clauses (a) or (c)-(t) of this Section 8; (ii) makes or is deemed to make any representation or warranty to the Bank in any Facility Document to which it is a party or in any certificate or other document furnished pursuant to a Facility Document, which such representation or warranty proves to have been incorrect in any material respect when made or deemed made; (iii) fails to pay when due (whether by scheduled maturity, acceleration, demand or otherwise, and after giving effect to any applicable notice and/or cure periods) any of its indebtedness (including, but not limited to, indebtedness for borrowed money) in excess of $5,000,000 owing to parties other than the Bank or its affiliates or any interest or premium thereon when due; or (iv) fails to comply with, or perform under any agreement (other than the Facility Documents), now or hereafter in effect, with the Bank or any affiliate of the Bank having an outstanding principal amount in excess of $1,000,000, unless such failure under this clause (iv) is cured within 30 days of written notice to the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor: (i) becomes insolvent or unable to pay its debts as they become due; (ii) makes an assignment for the benefit of creditors; (iii) commences any proceeding under any bankruptcy, reorganization, liquidation, insolvency or similar laws; (iv) has had any such petition filed, or any such proceeding has been commenced against it, in which an adjudication is made or order for relief is entered or which remains undismissed for a period of sixty (60) days; (v) has had a receiver, custodian or trustee appointed for all or a substantial part of its property; or (vi) takes any action effectuating, approving or consenting to any of the events described in clauses (i) through (v);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Guarantor dies, or is determined or adjudged incompetent or otherwise incapacitated by a court of competent jurisdiction (in each case, a "Specified Event");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor is involved in a proceeding which is likely to result in a forfeiture of all or a substantial part of its assets or a material judgment is entered against the Borrower or the Guarantor and remains unpaid, undismissed or unstayed for a period of 60 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the occurrence of an event directly affecting the financial condition of the Borrower or the Guarantor which has a material adverse effect on the ability of the Borrower or the Guarantor to perform its or his repayment obligations under the Facility Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any Facility Document granting a security interest at any time and for any reason ceases to create a valid and perfected first priority security interest in and to the property purported to be subject to the Facility Document or ceases to be in full force and effect or is declared null and void, or the validity or enforceability of any Facility Document is contested by any party to the Facility Document, or such signatory to the Facility Document denies it has any further liability or obligation under the Facility Document;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor creates, incurs, assumes or permits to exist any debt or contingent liabilities, other than (i) debt and contingent liabilities owing to, or in favor of, the Bank, (ii) debt and/or contingent liabilities owing to, or in favor of, parties other than the Bank and that is specifically disclosed to the Bank in (x) the financial statements of the Borrower dated December 31, 2020, and the Guarantor dated April 30, 2021, and/or (y) the schedule of contingent liabilities dated August 7, 2019 (and any refinancings thereof subsequent to the date hereof which do not increase the principal amount thereof), (iii) debt incurred by entities in which the Guarantor has beneficial ownership interests if such debt is non-recourse to the Guarantor, (iv) other debt and/or contingent liabilities of the Borrower in an aggregate principal amount not to exceed $5,000,000 at any one time outstanding, or (v) other debt and/or contingent liabilities of the Guarantor in an aggregate principal amount not to exceed $25,000,000 at any one time outstanding (as used in this clause, "contingent liabilities" means liabilities under, or with respect to, any guaranty, financial support agreement, letter of credit, or any swap, option or other derivative contract);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor creates, incurs, assumes or suffers to exist any lien or other encumbrance upon or with respect to any of the Borrower's or the Guarantor's real or personal property, other than any such lien in favor of the Bank, or listed on the financial statements of the Borrower dated December 31, 2020, and the Guarantor dated April 30, 2021, and other such liens securing obligations not to exceed $5,000,000 in the aggregate for the Borrower or $25,000,000 in the aggregate for the Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower fails to furnish to the Bank any of the following items: (i) signed financial statements of the Borrower within ninety (90) days after the end of the each calendar year; or (ii) within forty-five (45) days of any request by the Bank therefor, and, in any event, at least once during the twelve-month period commencing on the date of this Note and at least once during any subsequent twelve-month period, (x) the Guarantor's signed financial statement, in such form and with such detail as is substantially consistent with the Guarantor's signed financial statement most recently provided to the Bank, and including a schedule of contingent liabilities as of such date ("Schedule of Contingent Liabilities"), and (y) a true and complete copy the Guarantor's latest filed federal income tax return including all exhibits and schedules attached thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower fails to furnish to the Bank any of the following items: (i) within forty-five (45) days following the end of any calendar quarter, a correctly completed and duly executed Compliance Certificate (setting forth, among the other matters contemplated thereby, (A) the Annual Projected Management Fee Total for the four consecutive calendar quarters immediately following such aforementioned calendar quarter and (B) the Annual Trailing Management Fee Total for the four consecutive calendar quarters then ending); (ii) the annual audited financial statements of each Managed Fund, in such form and with such detail as most recently provided to the Bank (if applicable), within forty-five (45) days following any request by the Bank therefor but in any event at least once during the twelve month period commencing on the date of this Note and at least once during the twelve-month period commencing on each anniversary of the date of this Note; or (iii) the information regularly furnished to investors in each Managed Fund in the ordinary course of business by each applicable fund administrator, including monthly performance reports, net asset value calculations, risk reports, and notices of material change, no later than the delivery of the same to any such investors, which information shall be sent directly by each such fund administrator to the Bank at JPM_HFP_Reporting@JPMorgan.com;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Borrower fails to furnish to the Bank, within five (5) Banking Days of the Bank's request therefor, (i) any additional financial information regarding the Borrower or the Guarantor that the Bank may reasonably request from time to time, including without limitation as to Eligible Management Fee AUM, or (ii) any performance or other financial information regarding any Managed Fund that the Bank may reasonably request from time to time, but only to the extent that such financial information is generally provided to investors in such Managed Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor resides, at any time, in a jurisdiction that is located outside the United States, or the organization documents of the Borrower are, at any time, governed by a jurisdiction that is located outside of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) the Borrower becomes a "legal entity customer" under the Beneficial Ownership Regulation on or after the date of this Note and fails to provide a Beneficial Ownership Certification to the Bank within ten (10) days thereafter (or such later date as the Bank in its sole and absolute discretion may allow); or (ii) the Borrower is a "legal entity customer" under the Beneficial Ownership Regulation at any time and fails to provide an updated Beneficial Ownership Certification to the Bank within fifteen (15) days after a change to the list of beneficial owners identified in any such certification most recently delivered to the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Guarantor at any time fails to maintain a net worth (total assets minus total liabilities), exclusive of any interest in the Borrower, of at least $1,000,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; at any time there shall not be maintained, with the Bank, in one or more accounts titled in the name of the Guarantor, as measured at the end of each calendar quarter, Liquidity in an aggregate amount not less than $250,000,000. The term "Liquidity" means unencumbered liquid assets, acceptable to the Bank in its sole reasonable discretion; provided that liquid assets otherwise acceptable to the Bank in its sole reasonable discretion which are held in an account with the Bank securing only indebtedness in favor of the Bank will be included as Liquidity for the purposes hereof, but only to the extent (and in the amount) that the market value of such assets exceeds the market value of the account assets that are required by the Bank in its sole discretion to provide the minimum collateral support for such indebtedness; provided, further, that Liquidity shall in no event include any assets held in any 401k, IRA, Keogh, SEP, or similar retirement accounts or plans or a trust); provided, further, that the Liquidity derived from Pershing Square Holdings LTD stock (LSE: PSH) ("PSH Stock") shall not constitute greater than 75% of the aggregate Liquidity at any time (and to the extent that the aggregate Liquidity that is derived from PSH Stock exceeds such percentage at any time, the Liquidity that is derived from PSH Stock shall be excluded from the calculations hereunder in the amount that would cause the aggregate Liquidity that is derived from PSH Stock to be equal to 75% of the aggregate Liquidity derived from all liquid assets at such time);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower fully distributes, decants, divides its assets, liabilities and/or obligations (whether pursuant to a "plan of division" or similar arrangement), dissolves or for any reason ceases to be in existence or merges or consolidates, or if there is a change in the direct or indirect beneficial ownership of the Borrower;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) at any time during the period commencing on the date hereof, through and including January 31, 2022, the Annual Projected Management Fee Total shall be less than the 167% of the Line Amount or (ii) at any thereafter, the Annual Projected Management Fee Total shall be less than the 200% of the Line Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any Management Fees pledged under the Pledge Agreement shall be paid other than directly into the Pledged Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or any affiliate of the Borrower shall cause or permit the amendment, modification, or termination of any Management Agreement pledged under the Pledge Agreement or take any action in connection with any Management Agreement pledged under the Pledge Agreement that would impair any material interest or right of the Bank under any Facility Document;

THEN, the Bank may, by notice to the Borrower, declare this Note to be due and payable, without presentment, demand, protest, notice of acceleration or intention to accelerate or further notice of any kind, all of which are expressly waived, provided that in the case of an Event of Default described in clause (c) above, this Note shall be immediately due and payable without notice, provided further that (x) in the case of an Event of Default described in clause (d) above due to a Specified Event (and provided that no other Event of Default has occurred), the Bank shall not accelerate amounts payable under this Note for a period of one hundred five (105) days from the date on which such Specified Event has occurred, but the Bank shall not make any additional Loans during such 105-day period, and (y) if such Specified Event consists of the Guarantor's death, the Bank shall not declare that an Event of Default has occurred until the 105<sup>th</sup> day after the date of the Guarantor's death.

**Section 9**. **<u>Expenses</u>**. The Borrower will pay to the Bank all reasonable and documented out of pocket costs and expenses (including reasonable attorneys' fees and legal expenses of external counsel) incurred by the Bank in connection with the preparation or modification of the Facility Documents and performance thereof and the exercise of any of the Bank's rights, remedies or obligations under the Facility Documents.

**Section 10**. **<u>Governing Law</u>**. This Note shall be governed by and construed in accordance with the laws of the state identified in the "Governing Law" section of the Loan Terms Statement, without regard to conflict of laws principles, and with the laws of the United States of America as applicable.

**Section 11**. **<u>Jurisdiction</u>**. To the extent not prohibited by applicable law or otherwise, the Borrower: (i) agrees that all claims related to this Note may be adjudicated by a state or federal court in the state identified in the "Governing Law" section of the Loan Terms Statement, (ii) agrees that any proceeding brought against the Bank shall be brought only in a state or federal court in the City of New York, and (iii) agrees that the Bank may comply with service of process requirements in any such proceeding by mailing (via prepaid registered or certified U.S. mail) documents to be served in accordance with the notice provisions of Section 13(f). The Borrower agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in any other jurisdiction and waives any defense on the basis of an inconvenient forum. Nothing herein shall affect the right of the Bank to serve legal process in any other manner permitted by law or affect the right of the Bank to bring any action or proceeding against the Borrower or its property in the courts of any other jurisdiction.

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**Section 12. <u>WAIVER OF JURY TRIAL</u>. THE BORROWER AND THE BANK (BY ITS ACCEPTANCE OF THIS NOTE) EACH WAIVE ANY RIGHT TO JURY TRIAL.**

**Section 13**. **<u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The provisions of this Note are intended to be severable. If any provision of this Note is held invalid or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without affecting the validity or enforceability thereof in any other jurisdiction or the remaining provisions thereof in any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except for (i) any permanent change to a Base Rate and accompanying Applicable Margin or any change to the Loan Terms Statement, in either case, as a result of events described in Section 6 of this Note, (ii) Replacement Base Rate Changes, and (iii) any other change set forth in a new Loan Terms Statement sent by the Bank to the Borrower (x) that incorporates a change requested by the Borrower in a documented communication and agreed to by the Bank or (y) whereby an option is added by the Bank, including, without limitation, an additional Base Rate or Short-Term Fixed Tenor (together with technical, administrative or operational changes of the type contemplated by the defined term "Replacement Base Rate Changes"), no amendment or modification of any provision of this Note (other than an extension by the Bank of the Expiry Date as set forth in the Loan Terms Statement) shall be effective unless the same shall be executed by the Borrower and the Bank. Except to the extent provided in any waiver, such waiver by the Bank of a provision of this Note shall not constitute a waiver of the Bank's right to otherwise demand strict compliance with that provision or any other provision of this Note. Whenever the consent of the Bank is required under this Note, the granting of such consent shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the Bank's sole discretion. The Bank shall not be deemed to have waived any rights under this Note unless such waiver is in writing and signed by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No delay on the part of the Bank in the exercise of any right or remedy waives that right or remedy. No single or partial exercise by the Bank of any right or remedy precludes any other future exercise of it or the exercise of any other right or remedy. The rights and remedies in this Note are cumulative and not exclusive of any rights and remedies which the Bank may have under law or under other agreements or arrangements with the Borrower. The Borrower waives presentment, notice of dishonor, protest and any other notice or formality with respect to this Note except for any notices expressly required by this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the term "Borrower" is defined to include more than one party, then the obligations, representations and warranties of the Borrower hereunder shall be joint and several regardless of any change in business relations, divorce, legal separation or other legal proceedings and regardless of any agreement that may affect liabilities between or among such parties, and the Bank shall be entitled to act on notices and requests from any one of the parties without the consent of the other party(ies).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The obligations of the Borrower under this Note shall be subject to the limitation that payments of interest shall not be required to the extent that receipt thereof would be contrary to provisions of law applicable to the Bank limiting rates of interest which may be charged or collected by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise permitted in this Note, notices (including, without limitation, interest statements) shall be addressed to the Bank as set forth in the "JPMorgan Contact Information" section of the Loan Terms Statement and to the Borrower at the mailing address that the Bank has on file for the Borrower as its legal address or any email address that the Borrower has provided to the Bank as the Borrower's email address (or at such other number or address as shall be designated by one party to the other by telephone or in the manner provided for in this Section) and either given electronically or in writing by hand, overnight courier, certified or registered mail, or regular mail. Notices sent by hand, overnight courier, certified or registered mail, or regular mail shall be deemed to have been given when delivered. Notices sent to an email address shall be deemed received when sent, provided, that, if such notice is not sent during normal business hours, such notice shall be deemed to have been sent and received at the opening of business on the next Banking Day. All notices by the Bank properly addressed to the Borrower shall be deemed to have been personally delivered to the Borrower whether actually received or not. If the Bank needs to contact the Borrower by telephone, then the Bank will use the phone number the Bank has on file for the Borrower as its primary phone number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sections 3(d), 4(c), 5, 9, 10, 11, 12 and 14 hereof shall survive the repayment of the Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each reference to the Bank shall be deemed to include its successors, endorsees and assigns, in whose favor the provisions hereof shall inure. Each reference to the Borrower shall be deemed to include the heirs, executors, administrators, legal representatives, successors and assigns of the Borrower, all of whom shall be bound by the provisions hereof. This Note shall be binding on the Borrower and shall inure to the benefit of the Bank, except that the Borrower may not delegate or assign any of its rights or obligations hereunder without the prior written consent of the Bank. With the consent of the Borrower not to be unreasonably withheld, the Bank may assign all or a portion of its rights and obligations under this Note and the other Facility Documents; provided, that such consent shall not be required (i) at any time that an Event of Default has occurred and is continuing, (ii) in connection with any assignment to an affiliate of the Bank or a merger or consolidation of the Bank, or (iii) in connection with any pledge or assignment to secure obligations to a Federal Reserve Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Note, any amendment to this Note, and any agreement, notice or other communication required by this Note to be "written" or "in writing" may be executed in any number of counterparts, including counterparts that are executed on paper and counterparts that are electronic records and are executed using electronic signatures generated through the electronic execution process provided by the Bank or such other electronic execution process acceptable to the Bank in its sole discretion. Each counterpart of such document, when so executed, shall be deemed an original but all such counterparts shall constitute one and the same document. Delivery of a manually executed counterpart of a signature page of such document by emailed PDF or JPEG from the Borrower's e-mail address on file with the Bank, or any other electronic means acceptable to the Bank in its sole discretion that reproduces an image of such manually executed signature page, shall each be effective as delivery of a manually executed counterpart of such document; provided, that, the Bank, in its sole discretion, can require subsequent delivery of the manually executed counterpart of a signature page.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The date, amount, Loan Type of, Base Rate of, Maturity Date of, Short-Term Fixed Tenor of, Applicable Margin of, and the Interest Rate with respect to, each Loan evidenced hereby, all payments of principal and/or interest thereof, and any conversion of a Loan to a different Loan Type or conversion of a Base Rate, shall, in each case, be evidenced by records maintained by the Bank in the ordinary course of business and such records shall be presumptively correct absent manifest error and any failure to so record or any error in doing so shall not limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to any Loan made hereunder.

**Section 14**. **<u>Confidentiality</u>**. The Bank agrees (by its acceptance of this Note) to use reasonable precautions to keep confidential, in accordance with its customary procedures for handling confidential information of this nature and in accordance with safe and sound practices of comparable commercial finance institutions, any non-public information supplied to it by or on behalf of the Borrower pursuant to this Note or the other Facility Documents which is identified by the Borrower as being confidential at the time the same is delivered to the Bank or which the Bank otherwise actually knows is confidential (and which at the time is not, and does not thereafter become, publicly available or available to the Bank from another source not known to be subject to a confidentiality obligation to the Borrower not to disclose such information), provided that nothing herein shall limit the disclosure of any such information (i) to the extent required by statute, rule, regulation or judicial process (provided that the Bank shall provide reasonable notice to Borrower prior to such disclosure), (ii) to counsel for the Bank, (iii) to examiners, auditors or accountants of the Bank, (iv) in connection with any litigation to which the Bank is a party relating to the Facility Documents or (v) to any assignee (or prospective assignee) under this Note so long as such assignee (or prospective assignee) first agrees, in writing, to be bound by confidentiality provisions similar in substance to this Section 14. The provisions of this Section 14 shall expire three years following the Final Maturity Date of this Note. The foregoing shall not be deemed a waiver by the Borrower of any statutory or regulatory rules concerning privacy and confidential information that are binding on the Bank.

**Section 15**. **<u>Use of Proceeds</u>**. The Borrower agrees that it will not, directly or indirectly, use the proceeds of any Loan under this Note or make available such proceeds to any person or entity: (i) to fund any activities or business of or with any person or entity, or in any country or territory, that, at the time of such funding is the subject of any economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including the U.S. Department of the Treasury's Office of Foreign Assets Control or the U.S. Department of State or (ii) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money or anything else of value, to any person in violation of any applicable laws, rules, or regulations relating to bribery or corruption.

**Section 16**. **<u>Morgan Affiliate</u>**. The Borrower shall use available cash on deposit to purchase securities issued by a Morgan Affiliate or to invest in any Morgan Affiliate fund before using the proceeds of any Loan under this Note to fund such purchase or investment, and the Borrower directs the Bank to use such available cash on deposit for such purchase or investment. The Borrower further directs the Bank to use all prepayments and repayments hereunder to first repay any Loan that was used to purchase securities issued by a Morgan Affiliate or to invest in any Morgan Affiliate fund. It is understood that nothing in this Section creates any obligation to purchase securities issued by a Morgan Affiliate or to invest in any Morgan Affiliate fund or create an implication that any such investment is contemplated by the Borrower. For the purposes of this Section, "cash on deposit" means cash on deposit in the account of the Borrower into which Loan proceeds are funded.

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**Section 17. <u>Conversion From Electronic Note to Paper-Based Note</u>**. If this Note is executed electronically ("Electronic Note"), the Bank and any person to whom this Electronic Note is later transferred shall have the right to convert this Electronic Note at any time into a paper-based Note ("Paper-Based Note"). In the event this Electronic Note is converted into a Paper-Based Note:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Paper-Based Note will be an effective, enforceable and valid instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the execution of this Electronic Note will be deemed issuance and delivery of the Paper-Based Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the printing of the representation of the electronic signature for the Borrower upon the Paper-Based Note from the system in which the Electronic Note is stored will be deemed the original signature for the Borrower on the Paper-Based Note and will serve to indicate the Borrower's present intention to authenticate the Paper-Based Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Paper-Based Note will be a valid original writing for all legal purposes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; upon conversion to a Paper-Based Note, the Borrower's obligations in the Electronic Note shall automatically transfer to, and be contained in, the Paper-Based Note, and the Borrower intends to be bound by such obligations.

**Section 18**. **<u>Execution and Use of Electronic Records and Signatures</u>**. If the Borrower has received and reviewed this Note electronically, then the Borrower agrees that this Note may be in the form of an electronic record and may be executed using electronic signatures generated through the electronic execution process provided by the Bank or such other electronic execution process acceptable to the Bank in its sole discretion. Any electronic signature on or associated with this Note and accepted by the Bank shall be valid and binding on the signer to the same extent as a manual signature and upon application thereof, this Note will constitute a legal, valid, and binding obligation enforceable in accordance with its terms to the same extent as if manually executed. Notwithstanding any other provision of this Note, at the Bank's option and in the Bank's sole discretion, any agreement, amendment, notice or other communication required by this Note to be "written" or "in writing" may be in the form of an electronic record and may be executed using electronic signatures generated through the electronic execution process provided by the Bank or such other electronic execution process acceptable to the Bank in its sole discretion.

**Section 19. <u>Texas-Specific Provision</u>**. If the Borrower becomes a resident of the state of Texas, or the organization or trust documents of the Borrower are, at any time, governed by the laws of the state of Texas, then the Bank may set off any amounts due hereunder against, in any order, any debt owing by the Bank to the Borrower, including but not limited to, any deposit account, which right is hereby granted by the Borrower to the Bank, and exercise any and all other rights under any of the Facility Documents, at law, in equity or otherwise.

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**Section 20. <u>Assignments and Participations</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Bank, acting for this purpose as a non-fiduciary agent of the Borrower, shall maintain a register (the "Register") for the recordation of the names and addresses of the assignees of the Bank and the aggregate outstanding principal amount of each Loan (and stated interest thereon) (each a "Registered Loan"). The entries in the Register shall be conclusive and binding for all purposes, absent manifest error. A Registered Loan may be assigned or transferred in whole or in part only by registration of such assignment or transfer on the Register. The Borrower and the Bank (and any assignee of the Bank) shall treat each person whose name is recorded in the Register as a lender hereunder for all purposes of this Loan, including, without limitation, the right to receive payments of principal and interest hereunder, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event that the Bank sells participations in a Loan, the Bank shall, acting for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name of all participants in each Loan and the principal amount (and stated interest thereon) of the portion of each Loan that is the subject of the participation (the "Participant Register"). An interest in a Loan may be participated in whole or in part only by registration of such participation on the Participant Register. The Bank shall have no obligation to disclose all or any portion of the Participant Register to any person except to the extent that such disclosure is necessary to establish that Loan is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.

[NO FURTHER TEXT; SIGNATURE PAGE FOLLOWS]

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PERSHING SQUARE CAPITAL MANAGEMENT, L.P.

By: PS Management GP, LLC, its General Partner

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| | |
|:---|:---|
| By: | /s/ William A. Ackman |
|  | Name: William A. Ackman |
|  | Title: Managing Member |

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[Line of Credit Note]

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<u>Exhibit A</u>

Form of Compliance Certificate

[attached]

------

**COMPLIANCE CERTIFICATE**

Date: _________________

JPMorgan Chase Bank, N.A.

390 Madison Avenue

New York, New York 10017

Attn: Christopher F. French

Telephone: [phone number] <br>

E-Mail: [email]

Ladies and Gentlemen:

In connection with the Line of Credit Note dated as of December 15, 2021, by Pershing Square Capital Management, L.P. (the "Borrower"), in favor of JPMorgan Chase Bank, N.A. (the "Bank"), as amended and otherwise modified from time to time (the "Note"), the Borrower hereby represents and warrants to the Bank as follows (initial capitalized terms used herein without definition have the meanings given such terms in the Note):

1. The Annual Projected Management Fee Total (as defined below) is $________. Included within <u>Annex A</u> hereto is the Borrower's detailed calculation of such amount.

The term "Annual Projected Management Fee Total" as used herein means the aggregate amount of Eligible Management Fees (as defined below) reasonably projected by the Borrower to be received by the Borrower during the current calendar quarter and the immediately following three calendar quarters.

The term "Eligible Management Fees" as used herein means Management Fees in which the Bank has a valid and perfected, first-priority security interest pursuant to the Pledge Agreement, received or to be received by the Borrower in cash, but not including any performance based fees, transaction specific or other non-recurring fees, or any fees payable by or on behalf of any portfolio company of any Managed Fund.

2. The Annual Trailing Management Fee Total (as defined below) is $________. Included within <u>Annex A</u> hereto is the Borrower's detailed calculation of such amount.

The term "Annual Trailing Management Fee Total" as used herein means the aggregate amount of Eligible Management Fees (as defined above, it being noted however that the Bank did not have a security interest in such fees until the effective date of the Pledge Agreement) received by the Borrower during the most recently ended four calendar quarter period.

3. The Annual Q5-Q8 Projected Management Fee Total (as defined below) is $________. Included within <u>Annex A</u> hereto is the Borrower's detailed calculation of such amount.

The term "Annual Q5-Q8 Projected Management Fee Total" as used herein means the amount of Eligible Management Fees (as defined above) reasonably projected by the Borrower to be received by the Borrower in total during the four calendar quarters that follow immediately after the four calendar quarters to which the Annual Projected Management Total relates.

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4. The Eligible Management Fee AUM (as defined below), as of the end of the most recently ended calendar quarter, is $________. Included within <u>Annex A</u> hereto is the Borrower's detailed calculation of such amount.

The term "Eligible Management Fee AUM" as used herein means the aggregate capital amount in respect of which Eligible Management Fees (as defined above, it being noted however that the Bank did not have a security interest in such fees until the effective date of the Pledge Agreement) are calculated and paid (such capital amount, as to each Managed Fund, being the specific figure used to calculate Eligible Management Fees in respect of such Managed Fund in accordance with the applicable Management Agreement (e.g., the total capital committed to such Managed Fund or the net asset value of such Managed Fund, as applicable)).

5. Not in limitation of any term or condition of any Facility Document, the amounts set forth in this Compliance Certificate, including in Annex A hereto, take into account and reflect in all respects the terms of any side letters and any other
 modifications of any Management Agreements, and no side letter or any other modification of any Management Agreement in any respect other than as so taken into account and reflected (solely by the reduction of any amounts) impairs any material
 interest or right of the Bank in respect of the Management Fees.

6. Included within <u>Annex A</u> hereto are the financial statements of the Borrower for the most recently ended calendar quarter.

7. The representations and warranties contained in the Note and each other Facility Document are true and correct.

8. No Event of Default or event that, with the giving of notice or lapse of time, or both, would constitute an Event of Default has occurred and is continuing.

9. No material adverse change in the business or financial condition of the Borrower or the Guarantor has occurred and is continuing.

PERSHING SQUARE CAPITAL MANAGEMENT, L.P.

By: PS Management GP, LLC, as its general partner

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| | |
|:---|:---|
| By: | /s/ William A. Ackman |
|  | Name: William A. Ackman |
|  | Title: Managing Member |

---

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<u>Annex A to Compliance Certificate</u>

[attached]

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## Exhibit 10.28

**Exhibit 10.28**

AMENDMENT NO. 1

This AMENDMENT, dated as of _____________<u>May</u> <u>17,</u> 2022 (this "Amendment"), is by and between JPMORGAN CHASE BANK, N.A. (the "Bank") and PERSHING SQUARE CAPITAL MANAGEMENT, L.P. (the "Borrower").

The Borrower has entered into (i) a Line of Credit Note, dated as of December 15, 2021, by the Borrower in favor of the Bank (the "Note"), and (ii) a Pledge and Security Agreement, dated as of December 15, 2021, by the Borrower in favor of the Bank (the "Pledge Agreement"). The Borrower and the Bank desire to amend the Note and the Pledge Agreement as set forth herein.

Except as otherwise provided herein, the capitalized terms used in this Amendment shall have the respective meanings assigned to such terms in the Note.

<u>AGREEMENT</u>

In consideration of the foregoing, and the mutual covenants and agreements hereinafter set forth, the parties hereto hereby agree as follows.

1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>AMENDMENTS</u>. Effective as of the date hereof and subject to the satisfaction of the conditions precedent set forth in Section 2 hereof, the Note and the Pledge Agreement are amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8(p) of the Note is amended and restated in full to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) at any time there shall not be maintained (x) Liquidity in one or more accounts with the Bank titled in the name of any Eligible Person and/or (y) Qualified Ownership Interests titled in the name of any Eligible Person in an aggregate amount (on a combined basis under clause (x) and/or (y)) not less than $250,000,000 (the term "Liquidity" means unencumbered liquid assets, acceptable to the Bank in its sole reasonable discretion; provided that liquid assets otherwise acceptable to the Bank in its sole reasonable discretion which are held in an account with the Bank securing only indebtedness in favor of the Bank will be included as Liquidity for the purposes hereof, but only to the extent (and in the amount) that the market value of such assets exceeds the market value of the account assets that are required by the Bank in its sole discretion to provide the minimum collateral support for such indebtedness; provided, further, that Liquidity shall in no event include any assets held in any 401k, IRA, Keogh, SEP, or similar retirement accounts or plans or a trust; provided, further, that the Liquidity derived from Pershing Square Holdings LTD stock (LSE: PSH) ("PSH Stock") shall not constitute greater than 75% of the aggregate Liquidity at any time (and to the extent that the aggregate Liquidity that is derived from PSH Stock exceeds such percentage at any time, the Liquidity that is derived from PSH Stock shall be excluded from the calculations hereunder in the amount that would cause the aggregate Liquidity that is derived from PSH Stock to be equal to 75% of the aggregate Liquidity derived from all liquid assets at such time; the term "Qualified Ownership Interests" means unencumbered ownership interests in hedge funds acceptable to the Bank in its sole discretion that permit quarterly or more frequent redemptions or withdrawals and are not subject to lock-up or gating provisions; provided that such interests otherwise acceptable to the Bank in its sole discretion that are securing only indebtedness in favor of the Bank may be included as Qualifying Ownership Interests for purposes hereof notwithstanding such encumbrance, but only to the extent (and in the amount) that the market value of such interests exceeds the market value of the interests which are required by the Bank in its sole discretion to provide the minimum collateral support for such indebtedness; provided, further, that Qualifying Ownership Interests shall in no event include any interests held in any 401k, IRA, Keogh, SEP, or similar retirement accounts or plans or a trust; the term "Eligible Person" means the Borrower or the Guarantor or any entity controlled and majority-owned by the Borrower and/or the Guarantor, provided that any Liquidity and/or Qualified Ownership Interests titled in the name of any such entity shall only be deemed acceptable and considered for purposes of this subsection to the proportionate extent (and corresponding amount) that such entity is owned by the Borrower and/or the Guarantor and only if the Borrower or the Guarantor upon any request by the Bank's from time to time promptly provides such evidence as may be required by the Bank to determine whether and to what extent the Borrower and/or Guarantor control and own such entity); it shall also constitute a separate Event of Default hereunder if, within thirty (30) days after the last day of any calendar month, the Borrower fails to furnish to the Bank evidence satisfactory to the Bank in its sole discretion that the foregoing requirement was being complied with, unless it was complied with solely on the basis of Liquidity (in one or more accounts at the Bank);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8(r) of the Note is amended and restated in full to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at any time the Annual Projected Management Fee Total shall be less than the 160% of the Line Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8(t) of the Note is amended and restated in full to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;not in limitation of any term or condition of this Note, the Borrower fails to comply with Section 9(b) of the Pledge Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9(b)(ii) of the Pledge Agreement is amended and restated in full to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp; amend or otherwise modify any Management Agreement or give any consent, waiver, or approval thereunder which, in any such case, by itself or together with any other such amendment, modification, consent, waiver, or approval, would (A) cause a decrease in the amount payable to the Pledgor thereunder such that after taking into account such decrease, the Annual Projected Management Fee Total would be less than 160% of the Line Amount or any Event of Default would occur, or (B) otherwise be detrimental to the ability of the Bank to enforce its rights and remedies under any Facility Document;

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2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>CONDITIONS PRECEDENT</u>. This Amendment shall not become effective until the Bank has received executed counterparts of this Amendment signed by each of the parties hereto, and acknowledged by the Guarantor.

3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>REPRESENTATIONS AND WARRANTIES</u>. The Borrower represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The representations and warranties contained in the Note and each other Facility Document are true and correct in all material respects on and as of the date hereof as though made on and as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No event has occurred and is continuing, which constitutes an Event of Default, or would constitute an Event of Default but for the giving of notice or the passage of time, or both, and the execution, delivery and performance of this Amendment will not cause or constitute any Event of Default.

4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>CONTINUED EFFECTIVENESS</u>. Except to the extent expressly amended hereby, all of the terms of the Note and the other Facility Documents remain in full force and effect.

5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>ACKNOWLEDGMENT OF OUTSTANDING OBLIGATIONS</u>. The Borrower hereby acknowledges, certifies and agrees that: (a) pursuant to the Note, the Bank has made loans on a revolving basis to the Borrower that are outstanding as of the date hereof; and (b) the obligations of the Borrower to repay those loans (with interest) to the Bank and to perform or otherwise satisfy its other obligations under the Facility Documents (i) each remain and shall continue in full force and effect, both before and after giving effect to this Amendment, (ii) are not subject to any defense, counterclaim, setoff, right of recoupment, abatement, reduction or other claim or determination, and (iii) are and shall continue to be governed by the terms and provisions of the Note and the other Facility Documents, as supplemented, modified and amended by this Amendment.

6.&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; <u>APPLICABLE LAW</u>. This Amendment shall be governed by and construed in accordance with the laws of the State of New York without regard to conflict of laws principles, and with the laws of the United States of America as applicable.

7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>COUNTERPARTS</u>. This Amendment may be executed in two or more counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one agreement.

[*REMAINDER OF PAGE INTENTIONALLY BLANK*]

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IN WITNESS WHEREOF, the Bank and the Borrower have duly executed this Amendment, all as of the day and year first above written.

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| | |
|:---|:---|
| PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. |
| By: | PS Management GP, LLC, |
|  | its General Partner |

---

---

| | |
|:---|:---|
| By: | /s/ William A. Ackman |
|  | William A. Ackman |
|  | Managing Member |

---

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| | |
|:---|:---|
| JPMORGAN CHASE BANK, N.A. | JPMORGAN CHASE BANK, N.A. |
| By: | /s/ Christopher F. French |
|  | Christopher F. French |
|  | Managing Director |

---

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**ACKNOWLEDGMENT AND CONSENT OF GUARANTOR**

The undersigned Guarantor hereby consents to the above amendments, terms and conditions and hereby agrees that his Guaranty is now modified to reflect the changes to the Facility Documents all as set forth above in the foregoing Amendment. The undersigned Guarantor hereby agrees that all of the obligations, terms and conditions contained in his Guaranty (i) are hereby ratified, reaffirmed and republished in all respects, and (ii) are not subject to any defense, counterclaim, setoff, right of recoupment, abatement, reduction or other claim or determination.

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| |
|:---|
| /s/ William A. Ackman  |
| William A. Ackman |

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## Exhibit 10.29

**Exhibit 10.29**

AMENDMENT NO. 2

This AMENDMENT, dated as of January 6, 2023 (this "Amendment"), is by and between JPMORGAN CHASE BANK, N.A. (the "Bank") and PERSHING SQUARE CAPITAL MANAGEMENT, L.P. (the "Borrower").

The Borrower has entered into (i) a Line of Credit Note, dated as of December 15, 2021, by the Borrower in favor of the Bank, as amended and otherwise modified (the "Note"), and (ii) a Pledge and Security Agreement, dated as of December 15, 2021, by the Borrower in favor of the Bank (the "Pledge Agreement"). The Borrower and the Bank desire to amend the Loan Terms Statement (as defined in the Note) and the Note as set forth herein.

Except as otherwise provided herein, the capitalized terms used in this Amendment shall have the respective meanings assigned to such terms in the Note.

<u>AGREEMENT</u>

In consideration of the foregoing, and the mutual covenants and agreements hereinafter set forth, the parties hereto hereby agree as follows.

1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>AMENDMENTS</u>. Effective as of the date hereof except as set forth below and subject to the satisfaction of the conditions precedent set forth in Section 2 hereof, the Loan Terms Statement and the Note are hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Loan Terms Statement is amended by replacing the date "January 15, 2023" in the "Expiry Date" section of the Loan Terms Statement with the date "January 31, 2027".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effective as of January 31, 2023, the Loan Terms Statement is further amended by replacing the percentage set forth in the "Applicable Margin" section of the Loan Terms Statement with "2.05%".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8(h) of the Note is amended and restated in full to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor creates, incurs, assumes or permits to exist any debt or contingent liabilities, other than (i) debt and contingent liabilities owing to, or in favor of, the Bank, (ii) debt and/or contingent liabilities owing to, or in favor of, parties other than the Bank and that is specifically disclosed to the Bank in (x) the financial statements of the Borrower dated December 31, 2021, and the Guarantor dated August 31, 2022, and/or (y) the schedule of contingent liabilities dated August 7, 2019 (and any refinancings thereof subsequent to the date hereof which do not increase the principal amount thereof), (iii) debt incurred by entities in which the Guarantor has beneficial ownership interests if such debt is non-recourse to the Guarantor, (iv) other debt and/or contingent liabilities of the Borrower in an aggregate principal amount not to exceed $5,000,000 at any one time outstanding, or (v) other debt and/or contingent liabilities of the Guarantor in an aggregate principal amount not to exceed $25,000,000 at any one time outstanding (as used in this clause, "contingent liabilities" means liabilities under, or with respect to, any guaranty, financial support agreement, letter of credit, or any swap, option or other derivative contract);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8(i) of the Note is amended and restated in full to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp; the Borrower or the Guarantor creates, incurs, assumes or suffers to exist any lien or other encumbrance upon or with respect to any of the Borrower's or the Guarantor's real or personal property, other than any such lien in favor of the Bank, or listed on the financial statements of the Borrower dated December 31, 2021, and the Guarantor dated August 31, 2022, and other such liens securing obligations not to exceed $5,000,000 in the aggregate for the Borrower or $25,000,000 in the aggregate for the Guarantor;

2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>CONDITIONS PRECEDENT</u>. This Amendment shall not become effective until the Bank has received executed counterparts of this Amendment signed by each of the parties hereto, and acknowledged by the Guarantor.

3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>REPRESENTATIONS AND WARRANTIES</u>. The Borrower represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The representations and warranties contained in the Note and each other Facility Document are true and correct in all material respects on and as of the date hereof as though made on and as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No event has occurred and is continuing, which constitutes an Event of Default, or would constitute an Event of Default but for the giving of notice or the passage of time, or both, and the execution, delivery and performance of this Amendment will not cause or constitute any Event of Default.

4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>CONTINUED EFFECTIVENESS</u>. Except to the extent expressly amended hereby, all of the terms of the Facility Documents remain in full force and effect. Upon the effectiveness of this Amendment, on and after the date hereof, each reference in the Facility Documents to the Loan Terms Statement shall mean and be a reference to the Loan Terms Statement as amended hereby, and each reference in the Facility Documents to the Note shall mean and be a reference to the Note as amended hereby.

5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>ACKNOWLEDGMENT OF OUTSTANDING OBLIGATIONS</u>. The Borrower hereby acknowledges, certifies and agrees that: (a) pursuant to the Note, the Bank has made loans on a revolving basis to the Borrower that are outstanding as of the date hereof; and (b) the obligations of the Borrower to repay those loans (with interest) to the Bank and to perform or otherwise satisfy its other obligations under the Facility Documents (i) each remain and shall continue in full force and effect, both before and after giving effect to this Amendment, (ii) are not subject to any defense, counterclaim, setoff, right of recoupment, abatement, reduction or other claim or determination, and (iii) are and shall continue to be governed by the terms and provisions of the Note and the other Facility Documents, as supplemented, modified and amended by this Amendment.

------

6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>APPLICABLE LAW</u>. This Amendment shall be governed by and construed in accordance with the laws of the State of New York without regard to conflict of laws principles, and with the laws of the United States of America as applicable.

7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>COUNTERPARTS</u>. This Amendment may be executed in two or more counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one agreement.

[*REMAINDER OF PAGE INTENTIONALLY BLANK*]

------

IN WITNESS WHEREOF, the Bank and the Borrower have duly executed this Amendment, all as of the day and year first above written.

---

| | |
|:---|:---|
| PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. |
| By: | PS Management GP, LLC, |
|  | its General Partner |

---

---

| | |
|:---|:---|
| By: | /s/ William A. Ackman |
|  | William A. Ackman |
|  | Managing Member |

---

JPMORGAN CHASE BANK, N.A.

---

| | |
|:---|:---|
| By: | /s/ Christopher F. French |
|  | Christopher F. French |
|  | Managing Director |

---

------

**ACKNOWLEDGMENT AND CONSENT OF GUARANTOR**

The undersigned Guarantor hereby consents to the above amendments, terms and conditions and hereby agrees that his Guaranty is now modified to reflect the changes to the Facility Documents all as set forth above in the foregoing Amendment. The undersigned Guarantor hereby agrees that all of the obligations, terms and conditions contained in his Guaranty (i) are hereby ratified, reaffirmed and republished in all respects, and (ii) are not subject to any defense, counterclaim, setoff, right of recoupment, abatement, reduction or other claim or determination.

---

| |
|:---|
| /s/ William A. Ackman |
| William A. Ackman |

---

## Exhibit 10.30

**Exhibit 10.30**

AMENDMENT NO. 3

This AMENDMENT, dated as of March 4, 2024 (this "Amendment"), is by and between JPMORGAN CHASE BANK, N.A. (the "Bank") and PERSHING SQUARE CAPITAL MANAGEMENT, L.P. (the "Borrower").

The Borrower has entered into (i) a Line of Credit Note, dated as of December 15, 2021, by the Borrower in favor of the Bank, as amended and otherwise modified (the "Note"), and (ii) a Pledge and Security Agreement, dated as of December 15, 2021, by the Borrower in favor of the Bank (the "Pledge Agreement"). The Borrower and the Bank desire to amend the Loan Terms Statement (as defined in the Note) and the Note as set forth herein.

Except as otherwise provided herein, the capitalized terms used in this Amendment shall have the respective meanings assigned to such terms in the Note.

<u>AGREEMENT</u>

In consideration of the foregoing, and the mutual covenants and agreements hereinafter set forth, the parties hereto hereby agree as follows.

1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>AMENDMENTS</u>. Effective as of the date hereof and subject to the satisfaction of the conditions precedent set forth in Section 2 hereof, the Loan Terms Statement and the Note are hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Loan Terms Statement is amended by replacing the percentage set forth in the "Applicable Margin" section of the Loan Terms Statement with "2.35%".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Loan Terms Statement is further amended by replacing the dollar amount set forth in the "Minimum Initial Loan Amount" section of the Loan Terms Statement with "$80,000".

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8(p) of the note is amended and restated in its entirety to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; at any time there shall not be maintained (x) Liquidity in one or more accounts with the Bank titled in the name of any Eligible Person and/or (y) Qualified Ownership Interests titled in the name of any Eligible Person in an aggregate amount (on a combined basis under clause (x) and/or (y)) not less than $265,000,000 (the term "Liquidity" means unencumbered liquid assets, acceptable to the Bank in its sole reasonable discretion; provided that liquid assets otherwise acceptable to the Bank in its sole reasonable discretion which are held in an account with the Bank securing only indebtedness in favor of the Bank will be included as Liquidity for the purposes hereof, but only to the extent (and in the amount) that the market value of such assets exceeds the market value of the account assets that are required by the Bank in its sole discretion to provide the minimum collateral support for such indebtedness; provided, further, that Liquidity shall in no event include any assets held in any 401k, IRA, Keogh, SEP, or similar retirement accounts or plans or a trust; provided, further, that the Liquidity derived from Pershing Square Holdings LTD stock (LSE: PSH) ("PSH Stock") shall not constitute greater than 75% of the aggregate Liquidity at any time (and to the extent that the aggregate Liquidity that is derived from PSH Stock exceeds such percentage at any time, the Liquidity that is derived from PSH Stock shall be excluded from the calculations hereunder in the amount that would cause the aggregate Liquidity that is derived from PSH Stock to be equal to 75% of the aggregate Liquidity derived from all liquid assets at such time; the term "Qualified Ownership Interests" means unencumbered ownership interests in hedge funds acceptable to the Bank in its sole discretion that permit quarterly or more frequent redemptions or withdrawals and are not subject to lock-up or gating provisions; provided that such interests otherwise acceptable to the Bank in its sole discretion that are securing only indebtedness in favor of the Bank may be included as Qualifying Ownership Interests for purposes hereof notwithstanding such encumbrance, but only to the extent (and in the amount) that the market value of such interests exceeds the market value of the interests which are required by the Bank in its sole discretion to provide the minimum collateral support for such indebtedness; provided, further, that Qualifying Ownership Interests shall in no event include any interests held in any 401k, IRA, Keogh, SEP, or similar retirement accounts or plans or a trust; the term "Eligible Person" means the Borrower or the Guarantor or any entity controlled and majority-owned by the Borrower and/or the Guarantor, provided that any Liquidity and/or Qualified Ownership Interests titled in the name of any such entity shall only be deemed acceptable and considered for purposes of this subsection to the proportionate extent (and corresponding amount) that such entity is owned by the Borrower and/or the Guarantor and only if the Borrower or the Guarantor upon any request by the Bank's from time to time promptly provides such evidence as may be required by the Bank to determine whether and to what extent the Borrower and/or Guarantor control and own such entity); it shall also constitute a separate Event of Default hereunder if, within thirty (30) days after the last day of any calendar month, the Borrower fails to furnish to the Bank evidence satisfactory to the Bank in its sole discretion that the foregoing requirement was being complied with, unless it was complied with solely on the basis of Liquidity (in one or more accounts at the Bank);

2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>CONDITIONS PRECEDENT</u>. This Amendment shall not become effective until the Bank has received executed counterparts of this Amendment signed by each of the parties hereto, and acknowledged by the Guarantor.

3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>REPRESENTATIONS AND WARRANTIES</u>. The Borrower represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties contained in the Note and each other Facility Document are true and correct in all material respects on and as of the date hereof as though made on and as of such date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No event has occurred and is continuing, which constitutes an Event of Default, or would constitute an Event of Default but for the giving of notice or the passage of time, or both, and the execution, delivery and performance of this Amendment will not cause or constitute any Event of Default.

4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>CONTINUED EFFECTIVENESS</u>. Except to the extent expressly amended hereby, all of the terms of the Facility Documents remain in full force and effect. Upon the effectiveness of this Amendment, on and after the date hereof, each reference in the Facility Documents to the Loan Terms Statement shall mean and be a reference to the Loan Terms Statement as amended hereby, and each reference in the Facility Documents to the Note shall mean and be a reference to the Note as amended hereby.

5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ACKNOWLEDGMENT OF OUTSTANDING OBLIGATIONS</u>. The Borrower hereby acknowledges, certifies and agrees that: (a) pursuant to the Note, the Bank has made loans on a revolving basis to the Borrower that are outstanding as of the date hereof; and (b) the obligations of the Borrower to repay those loans (with interest) to the Bank and to perform or otherwise satisfy its other obligations under the Facility Documents (i) each remain and shall continue in full force and effect, both before and after giving effect to this Amendment, (ii) are not subject to any defense, counterclaim, setoff, right of recoupment, abatement, reduction or other claim or determination, and (iii) are and shall continue to be governed by the terms and provisions of the Note and the other Facility Documents, as supplemented, modified and amended by this Amendment.

6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>APPLICABLE LAW</u>. This Amendment shall be governed by and construed in accordance with the laws of the State of New York without regard to conflict of laws principles, and with the laws of the United States of America as applicable.

7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>COUNTERPARTS</u>. This Amendment may be executed in two or more counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one agreement.

[*REMAINDER OF PAGE INTENTIONALLY BLANK*]

------

IN WITNESS WHEREOF, the Bank and the Borrower have duly executed this Amendment, all as of the day and year first above written.

---

| | |
|:---|:---|
| PERSHING SQUARE CAPITAL MANAGEMENT, L.P. | PERSHING SQUARE CAPITAL MANAGEMENT, L.P. |
| By: | PS Management GP, LLC, |
|  | its General Partner |

---

---

| | |
|:---|:---|
| By: | /s/ William A. Ackman |
|  | William A. Ackman |
|  | Managing Member |

---

JPMORGAN CHASE BANK, N.A.

---

| | |
|:---|:---|
| By: | /s/ Laura Tonnessen |
|  | Laura Tonnessen |
|  | Vice President |

---

------

**ACKNOWLEDGMENT AND CONSENT OF GUARANTOR**

The undersigned Guarantor hereby consents to the above amendments, terms and conditions and hereby agrees that his Guaranty is now modified to reflect the changes to the Facility Documents all as set forth above in the foregoing Amendment. The undersigned Guarantor hereby agrees that all of the obligations, terms and conditions contained in his Guaranty (i) are hereby ratified, reaffirmed and republished in all respects, and (ii) are not subject to any defense, counterclaim, setoff, right of recoupment, abatement, reduction or other claim or determination.

---

| |
|:---|
| /s/ William A. Ackman  |
| William A. Ackman |

---

## Exhibit 10.31

**Exhibit 10.31**

**FORM OF SUBSCRIPTION AGREEMENT**

**&nbsp;&nbsp;&nbsp;&nbsp;**

<br> This SUBSCRIPTION AGREEMENT (this "<u>Subscription Agreement</u>") is entered into by and among Pershing Square USA, Ltd. ("<u>PSUS</u>"), a Delaware statutory trust that is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended (the "<u>1940 Act</u>"), Pershing Square Holdco, L.P. (the "<u>Partnership</u>"), a Delaware limited partnership that will convert into a Nevada corporation by means of a statutory conversion (the "<u>Corporate Conversion</u>") and change its name to "Pershing Square Inc." ("<u>PS Inc</u>.") and the undersigned subscriber ("<u>Subscriber</u>"). The Subscription Agreement shall become effective upon its execution by PS Inc. and PSUS as of the date set forth on such parties' signature page hereto (the "<u>Effective Date</u>"). As used in this Subscription Agreement and as the context requires, "<u>PS Inc.</u>" refers to the Partnership prior to the consummation of the Corporate Conversion and to PS Inc. following the Corporate Conversion.

WHEREAS, in connection with the proposed combined initial public offerings (the "<u>Combined Offering</u>") of (i) PSUS's common shares of beneficial interest, no par value per share (the "<u>PSUS Common Shares</u>") and (ii) the common stock, par value $0.001 per share of PS Inc. (the "<u>PS Inc. Common Stock</u>", and together with the PSUS Common Shares, the "<u>Shares</u>"), PS Inc. will purchase PSUS Common Shares from PSUS and resell such PSUS Common Shares to the underwriters of the Combined Offering (the "<u>Underwriters</u>") and deliver to the Underwriters, for no additional consideration, shares of PS Inc. Common Stock to be delivered to investors in the initial public offering of PSUS Common Shares (the "<u>PSUS IPO</u>");

WHEREAS, upon the terms and subject to the conditions set forth herein, Subscriber agrees to subscribe for and purchase from PS Inc., on the Closing Date (as defined below), such number of PSUS Common Shares (the "<u>Subscribed PSUS Shares</u>") as is set forth on the Subscriber's signature page hereto at a purchase price of $50.00 per Share (the "<u>Per Share Price</u>" and the product of (i) the Per Share Price and (ii) the number of Subscribed PSUS Shares being referred to herein as the "<u>Purchase Price</u>"), and PS Inc. desires to deliver to Subscriber the Subscribed PSUS Shares in consideration of the payment of the Purchase Price by or on behalf of Subscriber to PS Inc. simultaneously with such purchase;

WHEREAS, PS Inc. will also deliver to Subscriber, for no additional consideration, 30 shares of PS Inc. Common Stock (the "<u>Subscribed PS Inc. Shares</u>", and together with the Subscribed PSUS Shares, the "<u>Subscribed Shares</u>") for every 100 Subscribed PSUS Common Shares acquired pursuant to this Subscription Agreement; and

WHEREAS, PSUS and PS Inc. are also entering into subscription agreements (the "<u>Other Subscription Agreements</u>" and, together with this Subscription Agreement, the "<u>Subscription Agreements</u>") with certain other investors (the "<u>Other Subscribers</u>" and, together with Subscriber, the "<u>Subscribers</u>"), pursuant to which the Other Subscribers have agreed to acquire Shares on the Closing Date.

------

NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties and covenants, and subject to the conditions herein contained, and intending to be legally bound hereby, the parties hereto hereby agree as follows:

Section 1.&nbsp;&nbsp;&nbsp;&nbsp; <u>Subscription</u>. Upon the terms and subject to the conditions of this Subscription Agreement, Subscriber hereby irrevocably subscribes for and agrees to acquire from PS Inc., and PS Inc. hereby agrees to sell and deliver to Subscriber, upon payment of the Purchase Price by or on behalf of Subscriber to PS Inc., the Subscribed Shares at the Closing (as defined below) (such subscription, sale and delivery, the "<u>Subscription</u>").

Section 2.&nbsp;&nbsp;&nbsp;&nbsp; <u>Closing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The closing of the Subscription (the "<u>Closing</u>") shall occur on the closing date of the Combined Offering (the "<u>Closing Date</u>") and be conditioned upon the prior or substantially concurrent consummation of the Combined Offering and satisfaction or waiver of the other conditions set forth in <u>Section 2(b)</u> and <u>Section 2(c)</u>. Upon delivery of written notice from (or on behalf of) PS Inc. to Subscriber (the "<u>Closing Notice</u>") that PS Inc. reasonably expects all conditions to the closing of the Combined Offering to be satisfied or waived on an expected closing date that is not less than two (2) business days from the date on which the Closing Notice is delivered to Subscriber, Subscriber shall, one (1) business day prior to the expected closing date specified in the Closing Notice (or such other date agreed to in writing by PS Inc.), deliver, by wire transfer of U.S. dollars in immediately available funds, an amount equal to the Purchase Price to such account(s) as designated by PS Inc. On the Closing Date, PS Inc. shall deliver the Subscribed Shares to Subscriber, free and clear of any liens or other restrictions whatsoever (other than those arising under state or federal securities laws) and subsequently, (i) PSUS shall cause the PSUS Subscribed Shares to be registered in book-entry form in the name of Subscriber (or its nominee in accordance with its delivery instructions, as applicable) on PSUS's share register and shall provide to the Subscriber evidence of such issuance from PSUS's transfer agent and (ii) PS Inc. shall cause the PS Inc. Subscribed Shares to be registered in book-entry form in the name of Subscriber (or its nominee in accordance with its delivery instructions, as applicable) on PS Inc.'s share register and shall provide to Subscriber evidence of such issuance from PS Inc.'s transfer agent. For purposes of this Subscription Agreement, "business day" shall mean any day other than a Saturday, a Sunday or other day on which commercial banks in New York, New York are authorized or required to close. Prior to the Closing Date, Subscriber shall deliver to PS Inc. and PSUS a duly completed and executed Internal Revenue Service Form W-9 or appropriate Form W-8. In the event the Closing Date does not occur within five (5) business days after the expected closing date specified in the Closing Notice, PS Inc. or PSUS shall promptly (but not later than ten (10) business days after the expected closing date specified in the Closing Notice) return or cause the return of any Purchase Price to Subscriber by wire transfer of U.S. dollars in immediately available funds to the account specified by Subscriber, and any book-entries for the Subscribed Shares shall be deemed cancelled; *provided* that, unless this Subscription Agreement has been terminated pursuant to <u>Section 7</u> hereof, such return of funds shall not terminate this Subscription Agreement or relieve Subscriber of its obligation to acquire the Subscribed Shares at the Closing upon delivery by PS Inc. of a subsequent Closing Notice in accordance with this <u>Section 2(a)</u>. For the avoidance of doubt, if any termination of this Subscription Agreement occurs after the delivery by Subscriber of the Purchase Price for the Subscribed Shares and prior to the Closing, PS Inc. or PSUS shall promptly (but not later than five (5) business days thereafter) return or cause the return of the Purchase Price to Subscriber without any deduction for or on account of any tax, withholding, charges or set-off.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The obligations of PS Inc. to consummate, or cause to be consummated, the transactions contemplated by this Subscription Agreement (including the Closing) are subject to the satisfaction, or waiver by PS Inc., of the additional conditions that, on the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all representations and warranties of Subscriber contained in this Subscription Agreement shall be true and correct in all material respects (other than representations and warranties that are qualified as to materiality or Subscriber Material Adverse Effect (as defined below), which representations and warranties shall be true and correct in all respects) at and as of the Closing Date, as though made on and as of the Closing Date (except to the extent expressly made as of an earlier date, in which case only as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Subscriber shall have delivered the Purchase Price in accordance with <u>Section 2(a)</u> and delivered all of the information required to be delivered by it on <u>Annex A</u>, and if applicable to Subscriber, <u>Annex B</u>, <u>Annex C</u>, <u>Annex D</u>, <u>Annex E</u> or <u>Annex F</u> and otherwise performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by this Subscription Agreement to be performed, satisfied or complied with by it at or prior to the Closing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The obligations of Subscriber to consummate, or cause to be consummated, the transactions contemplated by this Subscription Agreement (including the Closing) are subject to the satisfaction or waiver by Subscriber of the additional conditions that, on the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all representations and warranties of PS Inc and PSUS contained in this Subscription Agreement shall be true and correct in all material respects (other than representations and warranties that are qualified as to materiality or a PS Inc. Material Adverse Effect or PSUS Material Adverse Effect (each as defined below), as applicable, which representations and warranties shall be true and correct in all respects) at and as of the Closing Date, as though made on and as of the Closing Date (except to the extent expressly made as of an earlier date, in which case only as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each of the PSUS Common Shares and PS Inc. Common Stock shall have been approved for listing on the New York Stock Exchange ("<u>NYSE</u>"), subject to official notice of issuance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) there shall not be in force any injunction or order enjoining or prohibiting the delivery of the Subscribed Shares under this Subscription Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) PS Inc. and PSUS shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by this Subscription Agreement to be performed, satisfied or complied with by PS Inc. and PSUS, respectively, at or prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Prior to or at the Closing, Subscriber shall deliver to PSUS and PS Inc. all such other information as is reasonably requested by them in order for PS Inc. to deliver the Subscribed Shares to Subscriber, including, without limitation, the legal name of the person in whose name the Subscribed Shares are to be issued (or Subscriber's nominee in accordance with its delivery instructions) and a duly completed and executed Internal Revenue Service Form W-9 or appropriate Form W-8.

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Section 3.&nbsp;&nbsp;&nbsp;&nbsp; <u>PS Inc. Representations and Warranties</u>. PS Inc. represents and warrants to Subscriber as of the Effective Date and as of the Closing, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Partnership (i) has been duly formed and is validly existing as a limited partnership in good standing under the laws of the State of Delaware and, upon the effectiveness of the Corporate Conversion, PS Inc. will be duly incorporated and validly existing as a corporation in good standing under the laws of the State of Nevada; (ii) has full power and authority to conduct all the activities conducted by it, to own or lease all properties and assets owned or leased by it and to conduct its business as described in the Offering Memorandum to which this Subscription Agreement is attached (the "<u>Offering Memorandum</u>", and together with any amendments or supplements thereto and any additional written materials or information furnished by or on behalf of PS Inc. or PSUS to Subscriber prior to the Effective Date in connection with the transactions contemplated by this Subscription Agreement collectively, the "<u>Disclosure Package</u>"); and (iii) is duly licensed and qualified to do business and is in good standing in each jurisdiction where it owns or leases property or in which the conduct of its business or other activity requires such qualification, except where the failure to be so licensed or qualified or be in good standing would not, singly or in the aggregate, reasonably be expected to have a material adverse effect on (A) the business, financial condition or results of operation, or prospects of PS Inc. and its subsidiaries taken as a whole or (B) the ability of PS Inc. to consummate the transactions contemplated by this Subscription Agreement ((A) and (B) together, a "<u>PS Inc. Material Adverse Effect</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The issuance and sale of the Subscribed PS Inc. Shares, when issued pursuant to this Subscription Agreement (subject to the receipt of the Purchase Price in accordance with the terms of this Subscription Agreement and registration with PS Inc.'s transfer agent), will have been duly authorized by PS Inc. and, when issued and delivered to Subscriber (or its nominee in accordance with Subscriber's delivery instructions), will be validly issued, fully paid and free and clear of all liens or other restrictions (other than those arising under this Subscription Agreement or applicable securities laws), and will not have been issued in violation of, or subject to, any preemptive or similar rights created under PS Inc.'s organizational documents (as in effect at such time of issuance).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each "significant subsidiary" of PS Inc. (as such term is defined in Rule 1-02 of Regulation S-X), but not, for clarity, including any PS Inc. Fund (as defined below) or its portfolio companies or investments (each, a "<u>PS Inc. Subsidiary</u>" and, collectively, the "<u>PS Inc. Subsidiaries</u>") has been duly organized and is validly existing in good standing under the laws of the jurisdiction of its incorporation or organization, has corporate or similar power and authority to own, lease and operate its properties and to conduct its business as it is now being conducted and is duly qualified to transact business and is in good standing (to the extent such concept exists in the jurisdiction in question) in each jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where the failure to so qualify or to be in good standing would not reasonably be expected to have a PS Inc. Material Adverse Effect. Except as otherwise disclosed in the Disclosure Package or as would not reasonably be expected to have a PS Inc. Material Adverse Effect, all of the issued and outstanding capital stock of each PS Inc. Subsidiary has been duly authorized and validly issued, is fully paid and non-assessable and is owned by PS Inc., directly or through subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance, claim or equity. None of the outstanding shares of capital stock of any PS Inc. Subsidiary were issued in violation of the preemptive or similar rights of any securityholder of such PS Inc. Subsidiary. "<u>PS Inc. Funds</u>" means, collectively, all Funds or other entities, including without limitation Howard Hughes Holdings Inc., (i) sponsored or promoted by any of the PS Inc. Subsidiaries or (ii) for which any of the PS Inc. Subsidiaries acts as an investment adviser or investment manager, and "Fund" means any collective investment vehicle (whether open-ended or closed-ended) including, without limitation, an investment company, a general and limited partnership, a trust, a company or other business entity organized in any jurisdiction that provides for management fees or performance fees (or other similar profits allocations) to be borne by investors therein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The capitalization of PS Inc. is as set forth in the Disclosure Package. PS Inc. Common Stock conforms in all material respects to the description of it in the Disclosure Package and such description conforms in all material respects to the rights set forth in the instruments defining the same. Upon the completion of the Corporate Conversion, all the issued and outstanding shares of PS Inc. Common Stock will be duly authorized, validly issued, fully paid and non-assessable. No holder of PS Inc. Common Stock will be subject to personal liability by reason of being such a holder. The Subscribed PS Inc. Shares to be issued and delivered to Subscribers in accordance with this Subscription Agreement have been duly authorized and when issued and delivered to Subscribers pursuant to this Subscription Agreement will have been validly issued and will be fully paid and non-assessable (except as described in the Disclosure Package), and the issuance of the Subscribed PS Inc. Shares is not subject to the preemptive or other similar rights of any securityholder of PS Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) PS Inc. has full power and authority to enter into this Subscription Agreement and to perform all of the terms and provisions hereof to be carried out by it and (i) the Subscription Agreement has been duly and validly authorized, executed and delivered by or on behalf of PS Inc. and (ii) assuming due authorization, execution and delivery by the other parties hereto, the Subscription Agreement constitutes the legal, valid and binding obligation of PS Inc. enforceable in accordance with its terms, subject to the qualification that the enforceability of PS Inc.'s obligations thereunder may be limited by U.S. bankruptcy, insolvency and similar laws affecting creditors' rights generally, whether statutory or decisional, and to general equitable principles (regardless of whether enforcement is sought in a proceeding in equity or at law), and except as enforcement of rights to indemnity thereunder may be limited by federal or state securities laws (the "<u>Enforceability Exceptions</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) None of (i) the execution, delivery and performance by PS Inc. of this Subscription Agreement, (ii) the delivery by PS Inc. of the Subscribed Shares as contemplated by this Subscription Agreement and the Disclosure Package or (iii) the consummation by PS Inc. of the other transactions contemplated by this Subscription Agreement (A) conflicts with or will conflict with, or results in or will result in a breach or violation of the articles of incorporation or bylaws of PS Inc. or the organizational documents of any of the PS Inc. Subsidiaries, (B) conflicts with or will conflict with, results in or will result in a breach or violation of, or constitutes or will constitute a default or an event of default under, or results in or will result in the creation or imposition of any lien, charge or encumbrance upon any properties or assets of PS Inc. or any of the PS Inc. Subsidiaries, under the terms and provisions of any agreement, indenture, mortgage, loan agreement, note, insurance or surety agreement, lease or other agreement or instrument to which PS Inc. or any of the PS Inc. Subsidiaries is a party or by which PS Inc. or any of the PS Inc. Subsidiaries may be bound or to which any property or assets of PS Inc. or any of the PS Inc. Subsidiaries is subject or (C) results in or will result in any violation of any order, law, rule or regulation of any court, governmental instrumentality, securities exchange or association or arbitrator, whether foreign or domestic, applicable to PS Inc. or any of the PS Inc. Subsidiaries, other than state securities or "blue sky" laws applicable in connection with the acquisition of the Subscribed Shares by Subscriber pursuant to this Subscription Agreement, except with respect to clauses (A) (in the case of the PS Inc. Subsidiaries), (B) and (C), to the extent that any such breach, violation or contravention would not, singly or in the aggregate, reasonably be expected to have a PS Inc. Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No consent, approval, authorization, notification or order of, or filing with, or the issuance of any license or permit by, any federal, state, local or foreign court or governmental or regulatory agency, commission, board, authority or body or with any self-regulatory organization, other non-governmental regulatory authority, securities exchange or association, whether foreign or domestic, is required for the performance by PS Inc. of all the terms and provisions to be performed by or on behalf of it, in each case, as contemplated by this Subscription Agreement or the Disclosure Package, except such as may be required under state securities or "blue sky" laws, in connection with the acquisition of the Subscribed Shares by Subscriber in the manner contemplated in this Subscription Agreement and the Disclosure Package.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The financial statements of PS Inc. included in the Disclosure Package, together with the related schedules and notes, present fairly in all material respects the financial position of PS Inc. and its consolidated subsidiaries at the dates indicated and the statement of operations, changes in partners' capital and cash flows of PS Inc. and its consolidated subsidiaries for the periods specified; said financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("<u>GAAP</u>") applied on a consistent basis throughout the periods involved (except as otherwise noted therein). The supporting schedules, if any, present fairly in all material respects in accordance with GAAP the information required to be stated therein. The selected financial data and the summary financial information included in the Disclosure Package present fairly in all material respects the information shown therein and have been compiled on a basis consistent with that of the audited financial statements included therein. The pro forma financial statements and the related notes thereto included in the Disclosure Package with respect to PS Inc. present fairly in all material respects the information shown therein, have been prepared in accordance with the rules and guidelines of the United States Securities and Exchange Commission (the "<u>Commission</u>") with respect to pro forma financial statements and have been properly compiled on the bases described therein, and the assumptions used in the preparation thereof are reasonable and the adjustments used therein are appropriate to give effect to the transactions and circumstances referred to therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) PS Inc. and the PS Inc. Subsidiaries possess such permits, licenses, approvals, consents and other authorizations issued by the appropriate Governmental Entities (collectively, "<u>Governmental Licenses</u>") necessary to conduct the business now operated by them, except where the failure so to possess would not, singly or in the aggregate, reasonably be expected to have a PS Inc. Material Adverse Effect. PS Inc. and the PS Inc. Subsidiaries are in compliance with the terms and conditions of all Governmental Licenses, except where the failure so to comply would not, singly or in the aggregate, reasonably be expected to have a PS Inc. Material Adverse Effect. All of the Governmental Licenses are valid and in full force and effect, except when the invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not, singly or in the aggregate, reasonably be expected to have a PS Inc. Material Adverse Effect. Neither PS Inc. nor any of the PS Inc. Subsidiaries has received any notice of proceedings relating to the revocation or modification of any Governmental Licenses which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to have a PS Inc. Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) PS Inc. and each of the PS Inc. Subsidiaries taken as a whole maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets through an asset reconciliation procedure or otherwise at reasonable intervals and appropriate action is taken with respect to any differences. Except as described in the Disclosure Package, since the end of PS Inc.'s most recent audited fiscal year, there has been (1) no material weakness in PS Inc.'s internal control over financial reporting (whether or not remediated) and (2) no change in PS Inc.'s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, PS Inc.'s internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) PS Inc. and the PS Inc. Subsidiaries have established and maintain "disclosure controls and procedures" (as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>")); such disclosure controls and procedures are designed to ensure that material information relating to PS Inc. and the PS Inc. Subsidiaries is made known to PS Inc.'s principal executive officer and its principal financial officer by others within PS Inc., and such disclosure controls and procedures are reasonably effective to perform the functions for which they were established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) There has been no failure on the part of PS Inc. and its officers and directors, in their capacities as such, to comply in all material respects with the applicable provisions of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder (the "<u>Sarbanes-Oxley Act</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Other than compensation to be paid to Citigroup Global Markets Inc., UBS Securities LLC, BofA Securities, Inc., Jefferies LLC and Wells Fargo Securities LLC, as placement agents to PS Inc. and PSUS (the "<u>Placement Agents</u>"), no broker or finder is entitled to any brokerage or finder's fee or commission solely in connection with the sale and delivery of the Subscribed Shares to Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Assuming due issuance of the PSUS Common Shares, PS Inc. will have, immediately prior to the Closing valid title to the Subscribed Shares, free and clear of all liens, encumbrances, equities or adverse claims; and, upon payment of the Purchase Price pursuant to this Subscription Agreement, delivery of Subscribed PSUS Shares, as directed by Subscriber, to Subscriber of the Subscribed Shares in book entry form, free and clear of any liens, encumbrances or other restrictions (other than those arising under state or federal securities laws), in the name of Subscriber, (A) under Section 8-501 of the UCC, Subscriber will acquire a valid security entitlement in respect of the Subscribed PSUS Shares and (B) no action based on any "adverse claim," within the meaning of Section 8-102 of the UCC, to the Subscribed PSUS Shares may be asserted against Subscriber with respect to such security entitlement.

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In addition, any certificate signed by any officer of PS Inc. and delivered to Subscriber in connection with the offering of the Subscribed Shares pursuant to this Subscription Agreement shall be deemed to be a representation and warranty by PS Inc., as applicable, as to matters covered thereby, to each Subscriber.

Section 4.&nbsp;&nbsp;&nbsp;&nbsp; <u>Representations and Warranties of PSUS</u>. PSUS represents and warrants to Subscriber as of the Effective Date and as of the Closing, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) PSUS (i) has been duly organized and is validly existing as a statutory trust in good standing under the laws of the State of Delaware; (ii) has full power and authority to conduct all the activities conducted by it, to own or lease all properties and assets owned or leased by it and to conduct its business as described in the Disclosure Package; and (iii) is duly licensed and qualified to do business and is in good standing in each jurisdiction where it owns or leases property or in which the conduct of its business or other activity requires such qualification, except where the failure to be so licensed or qualified or be in good standing would not, singly or in the aggregate, reasonably be expected to have a material adverse effect on (A) the business, financial condition or results of operation, or prospects of PSUS or (B) the ability of PSUS to consummate the offering or any transaction contemplated by this Subscription Agreement and Disclosure Package ((A) and (B) a "<u>PSUS Material Adverse Effect</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The capitalization of PSUS is as set forth in the Disclosure Package. The PSUS Common Shares conform in all material respects to the description of them in the Disclosure Package. All the issued and outstanding PSUS Common Shares have been duly authorized and are validly issued, fully paid and nonassessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Subscribed PSUS Shares have been duly authorized for issuance and sale and, when delivered to Subscriber against payment of the Purchase Price, will be validly issued, fully paid and nonassessable. The Subscribed Shares conform in all material respects to the description of them in the Disclosure Package. The issuance of the Subscribed PSUS Shares has been done in compliance with all applicable federal and state securities laws. The offer, issuance, sale and delivery of the Subscribed Shares does not require registration under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), and such offer, issuance, sale and delivery does not violate any provision of the 1940 Act. The issuance of the Subscribed Shares is not subject to the preemptive or other similar rights of any securityholder of PSUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) PSUS is duly registered with the Commission under the 1940 Act as a non-diversified, closed-end management investment company, and, all action under the 1940 Act necessary to consummate the sale of the PSUS Common Shares as provided in this Subscription Agreement has or will have been taken by PSUS; the provisions of PSUS's Agreement and Declaration of Trust (as amended, supplemented or restated, including by the Statement of Preferences in respect of the Preferred Shares, through the Effective Date, the "<u>Declaration of Trust</u>") and bylaws (as amended or restated through the Effective Date, the "<u>Bylaws</u>") comply in all material respects with the applicable requirements of the 1940 Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) PSUS (i) has full power and authority to enter into this Subscription Agreement and to perform all of the terms and provisions hereof to be carried out by it, (ii) this Subscription Agreement has been duly and validly authorized, executed and delivered by or on behalf of PSUS and (iii) assuming due authorization, execution and delivery by Subscriber, this Subscription Agreement constitutes the legal, valid and binding obligation of PSUS enforceable in accordance with its terms, subject to the Enforceability Exceptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No consent, approval, authorization, notification or order of, or filing with, or the issuance of any license or permit by, any federal, state, local or foreign court or governmental or regulatory agency, commission, board, authority or body or with any self-regulatory organization, other non-governmental regulatory authority, securities exchange or association, whether foreign or domestic, is required by PSUS for the performance by PSUS of all the terms and provisions to be performed by or on behalf of it, in each case, as contemplated by this Subscription Agreement or the Disclosure Package, except as and may be required under state securities or "blue sky" laws, in connection with the purchase of the Subscribed Shares by Subscriber pursuant to this Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The statement of assets and liabilities, together with any related notes or schedules thereto, included or incorporated by reference in the Disclosure Package presents fairly in all material respects the financial position of PSUS as of the dates or for the periods indicated and have been prepared in conformity with GAAP applied on a consistent basis throughout the periods involved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) PSUS possesses such Governmental Licenses necessary to conduct the business now operated by it, except where the failure so to possess would not, singly or in the aggregate, reasonably be expected to have a PSUS Material Adverse Effect. PSUS is in compliance with the terms and conditions of all Governmental Licenses, except where the failure so to comply would not, singly or in the aggregate, reasonably be expected to have a PSUS Material Adverse Effect. All of the Governmental Licenses are valid and in full force and effect, except when the invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not, singly or in the aggregate, reasonably be expected to have a PSUS Material Adverse Effect. PSUS has not received any notice of proceedings relating to the revocation or modification of any Governmental Licenses which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to have a PSUS Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) PSUS maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorization and with the investment objectives, policies and restrictions of PSUS; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with U.S. generally accepted accounting principles and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets through an asset reconciliation procedure or otherwise at reasonable intervals and appropriate action is taken with respect to any differences. PSUS employs "internal control over financial reporting" (as such term is defined in Rule 30a-3 under the 1940 Act) and such internal control over financial reporting is effective as required by the 1940 Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) PSUS has established and maintains "disclosure controls and procedures" (as such term is defined in Rule 30a-3 under the 1940 Act); such disclosure controls and procedures are designed to ensure that material information relating to PSUS is made known to PSUS's principal executive officer and its principal financial officer by others within PSUS, and such disclosure controls and procedures are reasonably effective to perform the functions for which they were established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) PSUS and its officers and trustees, in their capacities as such, are in compliance with the applicable provisions of the Sarbanes-Oxley Act.

In addition, any certificate signed by any officer of PSUS or PS Inc. and delivered to Subscriber or counsel for Subscriber in connection with the offering of the PSUS Common Shares pursuant to this Subscription Agreement shall be deemed to be a representation and warranty by PSUS or PS Inc., as applicable, as to matters covered thereby, to Subscriber.

Section 5.&nbsp;&nbsp;&nbsp;&nbsp; <u>Subscriber Representations and Warranties</u>. Subscriber represents and warrants to PS Inc. and PSUS, as of the Effective Date and as of the Closing, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If Subscriber is a legal entity, Subscriber (i) has been duly formed and is validly existing and in good standing under the laws of its jurisdiction of formation or incorporation and (ii) has the requisite power and authority to enter into, and perform its obligations under, this Subscription Agreement. If Subscriber is an individual, Subscriber has the legal competence and capacity to enter into and perform its obligations under this Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Subscriber is a legal entity, this Subscription Agreement has been duly authorized, validly executed and delivered by Subscriber. If Subscriber is an individual, Subscriber's signature is genuine and the signatory has the legal competence and capacity to execute this Subscription Agreement. Assuming the due authorization, execution and delivery of the same by PS Inc. and PSUS, this Subscription Agreement shall constitute the valid and legally binding obligation of Subscriber, enforceable against Subscriber in accordance with its terms, subject to the Enforceability Exceptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The execution, delivery and performance of this Subscription Agreement, the purchase of the Subscribed Shares hereunder, the compliance by Subscriber with all of the provisions of this Subscription Agreement and the consummation of the transactions contemplated herein will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of Subscriber pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which Subscriber is a party or by which Subscriber is bound or to which any of the property or assets of Subscriber is subject; (ii) if Subscriber is a legal entity, the organizational documents of Subscriber; or (iii) any statute or any judgment, order, rule or regulation of any court or governmental authority with competent jurisdiction over Subscriber or any of its properties that, in the case of <u>clauses (i)</u> and <u>(iii)</u>, would reasonably be expected to have a Subscriber Material Adverse Effect. For purposes of this Subscription Agreement, a "<u>Subscriber Material Adverse Effect</u>" means an event, change, development, occurrence, condition or effect with respect to Subscriber that, singly or in the aggregate, would reasonably be expected to materially impair or materially delay Subscriber's performance of its obligations under this Subscription Agreement, including the purchase of the Subscribed Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subscriber (i) is (A)(x) a "qualified institutional buyer," as defined in Rule 144A under the Securities Act or (y) an institution that is an "accredited investor," within the meaning of Rule 501(a)(1), (a)(2), (a)(3), (a)(7), (a)(8), (a)(9), (a)(12) or (a)(13) under the Securities Act and/or (z) a "Qualified Purchaser" as defined in the 1940 Act that is also an "accredited investor" within the meaning of Rule 501(a) under the Securities Act and (B) an "institutional account" (as defined in FINRA Rule 4212(c)), (ii) is acquiring the Subscribed Shares only for its own account and not for the account of others, or if Subscriber is subscribing for the Subscribed Shares as a fiduciary or agent for one or more investor accounts, each such account meets the foregoing requirements and Subscriber has sole investment discretion with respect to each such account, and the full power and authority to make the acknowledgements, representations and agreements herein on behalf of each owner of each such account, and (iii) is not acquiring the Subscribed Shares with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act or other applicable securities laws (and has provided PS Inc. with the requested information on <u>Annex A</u> following the signature page hereto). Subscriber is not an entity formed for the specific purpose of acquiring the Subscribed Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subscriber acknowledges and agrees that the Subscribed Shares are being offered in a transaction not involving any public offering within the meaning of the Securities Act and that the Subscribed Shares have not been registered under the Securities Act and that PS Inc. is not required to register the Subscribed Shares. Subscriber acknowledges and agrees that the Subscribed Shares may not be offered, resold, transferred, pledged or otherwise disposed of by Subscriber absent an effective registration statement under the Securities Act, except pursuant to an applicable exemption from the registration requirements of the Securities Act and in accordance with any applicable securities laws of the states and other jurisdictions of the United States, and that any certificates or account entries representing the Subscribed Shares shall contain a restrictive legend to such effect. Subscriber acknowledges and agrees that the Subscribed Shares will be subject to these securities law transfer restrictions, and as a result of these transfer restrictions, Subscriber may not be able to readily offer, resell, transfer, pledge or otherwise dispose of the Subscribed Shares and may be required to bear the financial risk of an investment in the Subscribed Shares for an indefinite period of time. Subscriber acknowledges and agrees that, unless any of the Subscribed Shares are earlier registered on a registration statement registering the resale of Subscribed Shares, such Subscribed Shares will not be eligible for offer, resale, transfer, pledge or disposition pursuant to Rule 144 promulgated under the Securities Act ("<u>Rule 144</u>") until at least six months after the Closing Date. Subscriber acknowledges and agrees that it has been advised to consult legal counsel prior to making any offer, resale, pledge or transfer of any of the Subscribed Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subscriber understands and agrees that Subscriber is acquiring the Subscribed Shares directly from PS Inc. Subscriber further acknowledges that there have not been, and Subscriber hereby agrees that it is not relying on, any representations, warranties, covenants or agreements made to Subscriber by PS Inc., PSUS, the Placement Agents or any of their respective affiliates or any of such person's or its or their respective affiliates' control persons, officers, directors, partners, members, managing members, managers, agents, employees or other representatives, legal counsel, financial advisors, accountants or agents (collectively, "<u>Representatives</u>") or any other person or entity, expressly or by implication, other than those representations, warranties, covenants and agreements of PS Inc. or PSUS set forth in this Subscription Agreement, and Subscriber is not relying on any other purported representations, warranties, covenants, agreements or statements (including by omission), which are hereby disclaimed by Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In making its decision to purchase the Subscribed Shares, Subscriber has relied solely upon an independent investigation made by Subscriber and PS Inc.'s and PSUS's respective representations in this Subscription Agreement and information contained in the Disclosure Package. Subscriber has not relied on any statements or other information provided by or on behalf of PS Inc. or PSUS (including the Placement Agents) concerning PS Inc., PSUS, the Subscribed Shares or the Subscription, and has been offered the opportunity to ask questions of PS Inc. and PSUS and has received answers thereto, including on the financial information, as Subscriber deemed necessary in connection with its decision to acquire the Subscribed Shares. Subscriber acknowledges and agrees that Subscriber has had access to, has received, and has had an adequate opportunity to review, such information as Subscriber deems necessary in order to make an investment decision with respect to the Subscribed Shares, including with respect to PS Inc. and PSUS, and Subscriber has made its own assessment and is satisfied concerning the relevant financial, tax and other economic considerations relevant to Subscriber's investment in the Subscribed Shares. Without limiting the generality of the foregoing, Subscriber acknowledges that it has reviewed the Disclosure Package (including each and every amendment or supplement thereto and any additional written materials or information furnished by or on behalf of PS Inc. or PSUS to the Subscriber prior to the Effective Date). Subscriber represents and agrees that Subscriber and Subscriber's professional advisor(s), if any, have had the full opportunity to ask such questions, receive such answers and obtain such information as Subscriber and Subscriber's professional advisor(s), if any, have deemed necessary to make an investment decision with respect to the Subscribed Shares, including but not limited to information concerning PS Inc., PSUS and the Subscription.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Subscriber acknowledges and agrees that none of PS Inc. or PSUS, the Placement Agents nor their respective affiliates or any of such person's or its or their respective affiliates' Representatives has provided Subscriber with any advice with respect to the Subscribed Shares. None of PS Inc., PSUS, the Placement Agents or any of their respective affiliates or Representatives has made or makes any representation or warranty, whether express or implied, of any kind or character as to PS Inc., PSUS or the quality or value of the Subscribed Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subscriber acknowledges that (i) PS Inc., PSUS and their respective Representatives hereafter may come into possession of information regarding PS Inc. or PSUS that is material non-public information and is not known to Subscriber ("<u>Excluded Information</u>"), (ii) Subscriber has determined to enter into this Subscription Agreement to acquire the Subscribed Shares notwithstanding Subscriber's lack of knowledge of the Excluded Information, and (iii) none of PS Inc., PSUS nor the Placement Agents shall have liability to Subscriber, and Subscriber hereby waives and releases any claims Subscriber may have against PS Inc., PSUS and/or the Placement Agents, to the maximum extent permitted by law, with respect to the nondisclosure of the Excluded Information.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Subscriber became aware of this offering of the Subscribed Shares solely by means of direct contact between Subscriber, on the one hand, and PS Inc. or PSUS (and their Representatives, including the Placement Agents), on the other, and the Subscribed Shares were offered to Subscriber solely by direct contact between Subscriber, on the one hand, and PS Inc. or PSUS (and their Representatives, including the Placement Agents), on the other, or their respective affiliates. Subscriber did not become aware of this offering of the Subscribed Shares, nor were the Subscribed Shares offered to Subscriber, by any other means, and neither PS Inc. nor PSUS or their respective Representatives (including the Placement Agents) acted as investment advisor, broker or dealer to Subscriber. Subscriber acknowledges that the Subscribed Shares (i) were not offered by any form of general solicitation or general advertising (within the meaning of Regulation D of the Securities Act) and (ii) are not being offered in a manner involving a public offering under, or in a distribution in violation of, the Securities Act, or any state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Subscriber acknowledges that it is aware that there are substantial risks incident to the acquisition and ownership of the Subscribed Shares, including those set forth in the Disclosure Package and the forms, reports, schedules, statements, registration statements, prospectuses, and other documents filed or furnished by PS Inc. and PSUS with the Commission under the Securities Act, the Exchange Act, the 1940 Act and/or the Advisers Act. Subscriber has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Subscribed Shares, and Subscriber has had an opportunity to seek, and has sought, such accounting, legal, business and tax advice as Subscriber has considered necessary to make an informed investment decision. Subscriber (i) is a sophisticated institutional investor, experienced in investing in business transactions and capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities, and (ii) has exercised independent judgment in evaluating entry into this Subscription Agreement and undertaking of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Subscriber has adequately analyzed and fully considered the risks of an investment in the Subscribed Shares and determined that the Subscribed Shares are a suitable investment for Subscriber and that Subscriber is able at this time and in the foreseeable future to bear the economic risk of a total loss of Subscriber's investment. Subscriber acknowledges specifically that a possibility of total loss exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Subscriber understands and agrees that no federal or state agency has passed upon or endorsed the merits of the offering of the Subscribed Shares or made any findings or determination as to the fairness of this investment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Neither Subscriber nor any of its affiliates, officers, directors, managers, managing members, general partners or any other person acting in a similar capacity or carrying out a similar function is (i) a person (including individual or entity) that is the target or the subject of any Sanctions; (ii) organized, incorporated, established, located, resident or the government, including any political subdivision, agency, or instrumentality thereof, of, a Sanctioned Jurisdiction; (iii) directly or indirectly owned or controlled (as ownership and control are defined and interpreted under applicable Sanctions), or acting on behalf or at the direction of, any such person or persons described in any of the foregoing clauses (i) and (ii), except in each case as permitted under Sanctions laws; or (iv) a non-U.S. institution that accepts currency for deposit and that has no physical presence in the jurisdiction in which it is incorporated or in which it is operating, as the case may be, and is unaffiliated with a regulated financial group that is subject to consolidated supervision (a "<u>non-U.S. shell bank</u>") or providing banking services indirectly to a non-U.S. shell bank (collectively, (i) through (iv), a "<u>Prohibited Investor</u>"). Subscriber agrees to provide law enforcement agencies, if requested thereby, such records as required by applicable law; provided that Subscriber is permitted to do so under applicable law. Subscriber represents that (i) if it is a financial institution subject to the Bank Secrecy Act (31 U.S.C. Section 5311 et seq.), as amended by the USA PATRIOT Act of 2001, and its implementing regulations (collectively, the "<u>BSA/PATRIOT Act</u>"), that Subscriber maintains policies and procedures to ensure compliance with its obligations under the BSA/PATRIOT Act, and (ii) to the extent required, it maintains policies and procedures reasonably designed to ensure compliance with the anti-corruption and anti-money laundering-related laws administered and enforced by other governmental authorities with competent jurisdiction. Subscriber also represents that it maintains policies and procedures reasonably designed to ensure compliance with Sanctions. Subscriber further represents and warrants that, to its knowledge, (i) none of the funds held by Subscriber and used to acquire the Shares are or will be derived from transactions directly or indirectly with or for the benefit of any Prohibited Investor, (ii) such funds are from legitimate sources and do not constitute the proceeds of criminal conduct or criminal property, (iii) such funds do not originate from and have not been routed through an account maintained at a non-U.S. shell bank, and (iv) it maintains policies and procedures reasonably designed to ensure the funds held by Subscriber and used to acquire the Shares were legally derived and were not obtained, directly or indirectly, from a Prohibited Investor or from or through a non-U.S. shell bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) No foreign person (as defined in 31 C.F.R. Part 800.224) in which the national or subnational governments of a single foreign state have a substantial interest (as defined in 31 C.F.R. Part 800.244) will acquire a substantial interest in PS Inc. as a result of the acquisition and sale of Subscribed Shares hereunder, and no foreign person will have control (as defined in 31 C.F.R. Part 800.208) over PS Inc. from and after the Closing as a result of the acquisition and sale of Subscribed Shares hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) If Subscriber is an employee benefit plan that is subject to Title I of the Employee Retirement Income Security Act of 1974, as amended ("<u>ERISA</u>"), a plan, an individual retirement account or other arrangement that is subject to section 4975 of the Code or an employee benefit plan that is a governmental plan (as defined in section 3(32) of ERISA), a church plan (as defined in section 3(33) of ERISA), a non-U.S. plan (as described in section 4(b)(4) of ERISA) or other plan that is not subject to the foregoing but may be subject to provisions under any other federal, state, local, non-U.S. or other laws or regulations that are similar to such provisions of ERISA or the Code, or an entity whose underlying assets are considered to include "plan assets" of any such plan, account or arrangement (each, a "<u>Plan</u>") subject to the fiduciary or prohibited transaction provisions of ERISA or section 4975 of the Code, Subscriber represents and warrants that (i) it has not relied on PS Inc., PSUS, the Placement Agents or any of their respective affiliates for investment advice or as the Plan's fiduciary with respect to its decision to acquire and hold the Subscribed Shares, and none of PS Inc. or PSUS or any of their respective affiliates or the Placement Agents shall at any time be relied upon as the Plan's fiduciary with respect to any decision to acquire, continue to hold or transfer the Subscribed Shares and (ii) the acquisition and holding of the Subscribed Shares will not result in a non-exempt prohibited transaction under ERISA or section 4975 of the Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Subscriber has or, when required to deliver payment pursuant to <u>Section 2</u>, will have, sufficient funds to pay the Purchase Price pursuant to <u>Section 2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Subscriber acknowledges that it is not relying upon, and has not relied upon, any statement, representation or warranty made by any person, firm or corporation (including, without limitation, PS Inc., PSUS or any of their respective affiliates or Representatives, including the Placement Agents), other than the representations and warranties of PS Inc. and PSUS contained in <u>Section 3</u> and <u>Section 4</u>, in making its investment or decision to invest in PS Inc. and PSUS. Subscriber agrees that none of (i) any Other Subscriber pursuant to an Other Subscription Agreement or any other agreement related to the private placement of Shares (including the controlling persons, officers, directors, partners, agents or employees of any such Subscriber) nor (ii) the Placement Agents shall be liable (including, without limitation, for or with respect to any losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses or disbursements incurred by such person or entity), whether in contract, tort or otherwise, or have any liability or obligation to Subscriber or any Other Subscriber, or any person claiming through Subscriber or any Other Subscriber, pursuant to this Subscription Agreement or related to the private placement of the Subscribed Shares, the negotiation hereof or the subject matter hereof, or the transactions contemplated hereby, for any action heretofore or hereafter taken or omitted to be taken by any of the foregoing in connection with the acquisition of the Subscribed Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) No broker or finder is entitled to any brokerage or finder's fee or commission to be paid by Subscriber solely in connection with the sale and delivery of the Subscribed Shares to Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Subscriber is not currently (and at all times through the Closing will refrain from being or becoming) a member of a "group" (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision), including any group acting for the purpose of acquiring, holding or disposing of equity securities of PS Inc. or PSUS (within the meaning of Rule 13d-5(b)(1) under the Exchange Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) Subscriber will not acquire a substantial interest (as defined in 31 C.F.R. Part 800.244) in PS Inc. or PSUS as a result of the acquisition and sale of the Subscribed Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Subscriber acknowledges its obligations under applicable securities laws with respect to the treatment of non-public information relating to PS Inc. and PSUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) In making its decision to acquire the Subscribed Shares, Subscriber has relied solely upon independent investigation made by Subscriber and the representations and warranties of PS Inc. and PSUS set forth herein. Without limiting the generality of the foregoing, Subscriber has not relied on any statements or other information provided by the Placement Agents concerning PS Inc., PSUS or the Shares or the offer and sale of the Shares. No disclosure or offering document has been prepared by the Placement Agents in connection with the offer and sale of the Shares. The Placement Agents and each of their members, directors, officers, employees, representatives and controlling persons have made no independent investigation with respect to PS Inc., PSUS or the Shares or the accuracy, completeness or adequacy of any information supplied to Subscriber by or on behalf of PS Inc. and PSUS. In connection with the Subscription, the Placement Agents have not made any recommendations regarding an investment in PS Inc., PSUS, the PSUS Common Shares or the PS Inc. Common Stock or acted as Subscriber's financial advisor or fiduciary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Subscriber covenants that until such time as the transactions contemplated by this Subscription Agreement are publicly disclosed by PS Inc. pursuant to <u>Section 7(u)</u>, Subscriber will maintain the confidentiality of the existence and terms of the Subscription and the transactions contemplated hereby. Notwithstanding the foregoing, in the case that Subscriber is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of Subscriber's assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of Subscriber's assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to acquire the Subscribed Shares covered by this Subscription Agreement.

Section 6.&nbsp;&nbsp;&nbsp;&nbsp; <u>Termination</u>. This Subscription Agreement shall terminate and be void and of no further force and effect, and all rights and obligations of the parties hereunder shall terminate without any further liability on the part of any party in respect thereof, (i) upon the mutual written agreement of the parties hereto to terminate this Subscription Agreement, (ii) by PS Inc., in its sole discretion, by written notice to the Subscriber at any time prior to the Closing and (iii) automatically, without further action required by any party hereto if the Closing has not occurred by June 30, 2026; <u>provided</u>, that nothing herein will relieve any party from liability for any willful breach hereof prior to the time of termination, and each party will be entitled to any remedies at law or in equity to recover losses, liabilities or damages arising from such breach. Upon the termination hereof in accordance with this <u>Section 6</u>, any monies paid by Subscriber in connection herewith shall promptly (and in any event within two (2) business days) be returned in full to Subscriber by wire transfer of U.S. dollars in immediately available funds to the account specified by Subscriber, without any deduction for or on account of any tax withholding except as required by law, charges or set-off, whether or not the Combined Offering shall have been consummated.

Section 7.&nbsp;&nbsp;&nbsp;&nbsp; <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subscriber hereby acknowledges that it shall be solely responsible for and bear the cost of all transfer, stamp, issue, registration, documentary or other similar taxes, duties, fees or charges arising in any jurisdiction in connection with the Subscription contemplated in this Subscription Agreement as well as the execution of this Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other provision of this Subscription Agreement, PS Inc. and any of its Representatives, as applicable, shall be entitled to deduct and withhold from the Subscribed Shares and any other amount payable pursuant to this Subscription Agreement (in connection with a future share split, dividend, distribution, recapitalization, merger, exchange, or replacement) any such taxes as may be required to be deducted and withheld from such amounts (and any other amounts treated as paid for applicable tax law) under the Internal Revenue Code of 1986, as amended (the "<u>Code</u>"), or any other applicable tax law (as determined in good faith by the party so deducting or withholding in its sole discretion). To the extent that any amounts are so deducted and withheld, such deducted and withheld amounts shall be treated for all purposes of this Subscription Agreement as having been paid to the person in respect of which such deduction and withholding was made.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All notices, requests, demands, claims, and other communications hereunder shall be in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed duly given (i) when delivered personally to the recipient, (ii) when sent by electronic mail, with no mail undeliverable or other rejection notice, on the date of transmission to such recipient, if sent on a business day prior to 5:00 p.m. New York City time, or on the business day following the date of transmission, if sent on a day that is not a business day or after 5:00 p.m. New York City time on a business day, (iii) one (1) business day after being sent to the recipient via overnight mail by reputable overnight courier service (charges prepaid), or (iv) four (4) business days after being mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid, and, in each case, addressed to the intended recipient at its address specified on the signature page hereof or to such electronic mail address or address as subsequently modified by written notice given in accordance with this <u>Section 7(c)</u>. A courtesy electronic copy of any notice sent by methods (i), (iii), or (iv) above shall also be sent to the recipient via electronic mail if an electronic mail address is provided in the applicable signature page hereof or to an electronic mail address as subsequently modified by written notice given in accordance with this <u>Section 7(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subscriber acknowledges that PS Inc., PSUS, the Placement Agents and others will rely on the acknowledgments, understandings, agreements, representations and warranties of Subscriber contained in this Subscription Agreement; <u>provided</u>, <u>however</u>, that the foregoing clause of this <u>Section 7(d)</u> shall not give PS Inc. or PSUS any rights other than those expressly set forth herein. Prior to the Closing, Subscriber agrees to promptly notify PS Inc. if it becomes aware that any of the acknowledgments, understandings, agreements, representations and warranties of Subscriber set forth herein are no longer accurate in all material respects. PS Inc. acknowledges that Subscriber will rely on the acknowledgments, understandings, agreements, representations and warranties contained in this Subscription Agreement. Prior to the Closing, PS Inc. and PSUS agree to promptly notify Subscriber, if they become aware that any of the acknowledgments, understandings, agreements, representations and warranties of PS Inc. or PSUS set forth herein are no longer accurate in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each of PS Inc., PSUS and Subscriber is authorized to produce this Subscription Agreement or a copy hereof to any interested party as required by applicable law in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each party hereto shall pay all of its own costs expenses in connection with this Subscription Agreement and the transactions contemplated hereby.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither this Subscription Agreement nor any rights that may accrue to Subscriber hereunder (other than the Subscribed Shares acquired hereunder) may be transferred or assigned by Subscriber. Neither this Subscription Agreement nor any rights that may accrue to PS Inc. hereunder may be transferred or assigned by PS Inc. without the prior written consent of Subscriber. Notwithstanding the foregoing, Subscriber may assign all or a portion of its rights and obligations under this Subscription Agreement , with PS Inc.'s prior written consent, to another person; <u>provided</u>, that in the case of any such assignment, the assignee(s) shall become a Subscriber hereunder and have the rights and obligations and be deemed to make the representations and warranties of Subscriber provided for herein to the extent of such assignment and <u>provided further</u> that no such assignment shall relieve the assigning Subscriber of its obligations hereunder if any such assignee fails to perform such obligations, unless PS Inc. has given their prior written consent to such relief. Any purported assignment or transfer in violation of this <u>Section 7(g)</u> shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) All the representations and warranties made by each party hereto in this Subscription Agreement shall survive the Closing. All of the covenants and agreements made by each party in this Subscription Agreement shall survive the Closing until the applicable statute of limitations or in accordance with their respective terms, if a shorter period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) PS Inc. or PSUS may request from Subscriber such additional information as PS Inc. or PSUS may reasonably determine to be necessary to evaluate the eligibility of Subscriber to acquire the Subscribed Shares, and Subscriber shall promptly provide such information as may be reasonably requested, to the extent readily available and to the extent consistent with its internal policies and procedures; <u>provided</u>, that each of PS Inc. and PSUS agree to keep any such information provided to it by Subscriber confidential, except (A) as required by the federal securities laws, rules or regulations and (B) to the extent such disclosure is required by other laws, rules or regulations, at the request of the staff of the Commission or regulatory agency or under the regulations of the NYSE. Subscriber acknowledges that PS Inc. or PSUS may file a form of this Subscription Agreement with the Commission as an exhibit to a current or periodic report, an annex to a proxy statement or as an exhibit to a registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) This Subscription Agreement may not be amended, modified or waived except by an instrument in writing, signed by each of the parties hereto; <u>provided</u> that no provision of this Subscription Agreement that references the Placement Agents or for which the Placement Agents are third-party beneficiaries may be amended, modified, terminated or waived in any manner that is adverse to the Placement Agents without the written consent of the Placement Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) This Subscription Agreement constitutes the entire agreement, and supersedes all other prior agreements, understandings, representations and warranties, both written and oral, among the parties, with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Except with respect to the Placement Agents (who are third-party beneficiaries of the representations, warranties and covenants that reference the Placement Agents set forth herein) or as otherwise provided herein, this Subscription Agreement is intended for the benefit of the parties hereto and their heirs, executors, administrators, successors, legal representatives, and permitted assigns and, except with respect to the Placement Agents or as otherwise as provided herein, is not for the benefit of, nor may any provision hereof be enforced by, any other person.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The parties hereto acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Subscription Agreement were not performed in accordance with their specific terms or were otherwise breached and that money or other legal remedies would not be an adequate remedy for such damage. It is accordingly agreed that the parties shall be entitled to equitable relief, including in the form of an injunction or injunctions to prevent breaches or threatened breaches of this Subscription Agreement and to enforce specifically the terms and provisions of this Subscription Agreement, this being in addition to any other remedy to which such party is entitled at law, in equity, in contract, in tort or otherwise. The parties hereto acknowledge and agree that PS Inc. shall be entitled to specifically enforce Subscriber's obligations to fund the Subscription and the provisions of the Subscription Agreement, in each case, on the terms and subject to the conditions set forth herein. The parties hereto further acknowledge and agree: (x) to waive any requirement for the security or posting of any bond in connection with any such equitable remedy; (y) not to assert that a remedy of specific enforcement pursuant to this <u>Section 7(m)</u> is unenforceable, invalid, contrary to applicable law or inequitable for any reason; and (z) to waive any defenses in any action for specific performance, including the defense that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) If any provision of this Subscription Agreement shall be invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining provisions of this Subscription Agreement shall not in any way be affected or impaired thereby and shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) No failure or delay by a party hereto in exercising any right, power or remedy under this Subscription Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power or remedy of such party. No single or partial exercise of any right, power or remedy under this Subscription Agreement by a party hereto, nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy by a party hereto shall not constitute a waiver of the right of such party to pursue other available remedies. No notice to or demand on a party not expressly required under this Subscription Agreement shall entitle the party receiving such notice or demand to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the party giving such notice or demand to any other or further action in any circumstances without such notice or demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) This Subscription Agreement may be executed and delivered in one or more counterparts (including by electronic mail, in .pdf or other electronic submission) and by different parties in separate counterparts, with the same effect as if all parties hereto had signed the same document. All counterparts so executed and delivered shall be construed together and shall constitute one and the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) This Subscription Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to the principles of conflicts of laws that would otherwise require the application of the law of any other state.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(r)**

**EACH PARTY AND ANY PERSON ASSERTING RIGHTS AS A THIRD-PARTY BENEFICIARY HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OR RELATED TO THIS SUBSCRIPTION AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY OR ANY AFFILIATE OF ANY OTHER SUCH PARTY, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE. THE PARTIES AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS SUBSCRIPTION AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS SUBSCRIPTION AGREEMENT.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) The parties agree that all disputes, legal actions, suits and proceedings arising out of or relating to this Subscription Agreement must be brought exclusively in the courts of the State of New York or the courts of the United States located in the Borough of Manhattan, New York City, New York (collectively the "<u>Designated Courts</u>"). Each party hereby consents and submits to the exclusive jurisdiction of the Designated Courts. No legal action, suit or proceeding with respect to this Subscription Agreement may be brought in any other forum. Each party hereby irrevocably waives all claims of immunity from jurisdiction, and any objection which such party may now or hereafter have to the laying of venue of any suit, action or proceeding in any Designated Court, including any right to object on the basis that any dispute, action, suit or proceeding brought in the Designated Courts has been brought in an improper or inconvenient forum or venue. Each of the parties also agrees that delivery of any process, summons, notice or document to a party hereof in compliance with <u>Section 7(c)</u> of this Subscription Agreement shall be effective service of process for any action, suit or proceeding in a Designated Court with respect to any matters to which the parties have submitted to jurisdiction as set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) This Subscription Agreement may only be enforced against, and any claim, action, suit or other legal proceeding based upon, arising out of, or related to this Subscription Agreement, or the negotiation, execution or performance of this Subscription Agreement, may only be brought against the entities that are expressly named as parties hereto; except with respect to the provisions of this Subscription Agreement for which the Placement Agents are express third-party beneficiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) Prior to the Closing, Subscriber shall not make any other public statement with respect to the transactions contemplated hereby without the prior written consent of PS Inc. Notwithstanding anything in this Subscription Agreement to the contrary, PS Inc. and PSUS (i) shall not publicly disclose the name of Subscriber or any of its affiliates or advisers, or include the name of Subscriber or any of its affiliates or advisers in any press release, without the prior written consent of Subscriber and (ii) shall not publicly disclose the name of Subscriber or any of its affiliates or advisers, or include the name of Subscriber or any of its affiliates or advisers in any filing with the Commission or any regulatory agency or trading market, without the prior written consent of Subscriber, except (A) as required by the federal securities laws, rules or regulations, and (B) to the extent such disclosure is required by other laws, rules or regulations, at the request of the staff of the Commission or regulatory agency or under the regulations of the NYSE, in which case of clause (A) or (B), PS Inc. or PSUS, as applicable, shall provide Subscriber with prior written notice (including by e-mail) of such permitted disclosure. Subscriber will promptly provide any information reasonably requested by PS Inc., or PSUS for any regulatory application or filing made or approval sought in connection with the transactions (including filings with the Commission).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The obligations of Subscriber under this Subscription Agreement are several and not joint with the obligations of any Other Subscriber or any other subscriber under the Other Subscription Agreements, and Subscriber shall not be responsible in any way for the performance of the obligations of any Other Subscriber under this Subscription Agreement or any Other Subscriber or other subscriber under the Other Subscription Agreements. The decision of Subscriber to acquire Subscribed Shares pursuant to this Subscription Agreement has been made by Subscriber independently of any Other Subscriber or any other subscriber and independently of any information, materials, statements or opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of PS Inc., PSUS or any of their respective affiliates or subsidiaries which may have been made or given by any Other Subscriber or subscriber or by any agent or employee of any Other Subscriber or subscriber, and neither Subscriber nor any of its agents or employees shall have any liability to any Other Subscriber or subscriber (or any other person) relating to or arising from any such information, materials, statements or opinions. Nothing contained herein or in any Other Subscription Agreement, and no action taken by Subscriber or Other Subscriber or other subscriber pursuant hereto or thereto, shall be deemed to constitute Subscriber and any Other Subscribers or other subscribers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that Subscriber and any Other Subscribers or other subscriber are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Subscription Agreement and the Other Subscription Agreements. Subscriber acknowledges that no Other Subscriber has acted as agent for Subscriber in connection with making its investment hereunder and no Other Subscriber will be acting as agent of Subscriber in connection with monitoring its investment in the Subscribed Shares or enforcing its rights under this Subscription Agreement. Subscriber shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Subscription Agreement, and it shall not be necessary for any Other Subscriber or subscriber to be joined as an additional party in any proceeding for such purpose.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) The headings herein are for convenience only, do not constitute a part of this Subscription Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Subscription Agreement will be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rules of strict construction will be applied against any party. Unless the context otherwise requires, (i) all references to Sections or Annexes are to Sections or Annexes contained in or attached to this Subscription Agreement, (ii) each accounting term not otherwise defined in this Subscription Agreement has the meaning assigned to it in accordance with United States generally accepted accounting principles, (iii) words in the singular or plural include the singular and plural and pronouns stated in either the masculine, the feminine or neuter gender shall include the masculine, feminine and neuter, (iv) the use of the word "including" in this Subscription Agreement shall be by way of example rather than limitation and (v) the word "or" shall not be exclusive (i.e., unless context requires otherwise "or" shall be interpreted to mean "and/or" rather than "either/or").

[*Signature pages follow*]

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**IN WITNESS WHEREOF**, Subscriber has executed or caused this Subscription Agreement to be executed by its duly authorized representative as of the date set forth below.

Date: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

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| | |
|:---|:---|
| Name of Subscriber: ____________________ | State/Country of Formation or Domicile: ____ |
| By: <u>______________________</u> |  |
| Name: <u>____________________</u> |  |
| Title: <u>____________________</u> |  |
| Name in which Subscribed Shares are to be registered (if different): | Date: ________________ |
| <u>____________________</u> |  |
| Subscriber's EIN: <u>____________________</u> |  |
| Entity Type (e.g., corporation, partnership, trust, etc.): <u>____________________</u> |  |
| Business Address-Street: | Mailing Address-Street (if different): |
| <u>____________________</u> | <u>____________________</u> |
| City, State, Zip: ________________________ | City, State, Zip: _______________________ |
| Attn: <u>____________________</u> | Attn: <u>____________________</u> |
| Telephone No.: <u>____________________</u> | Telephone No.: <u>____________________</u> |
| Email for notices: <u>____________________</u> | Email for notices (if different): ___________ |
| **Subscription Amount**<br>Subscription amount of US$________ for PSUS Common Shares at $50 per share. For every 100 shares of PSUS Common Shares purchased, investor will receive 30 shares of PS Inc. Common Stock to be delivered in connection therewith.<br>|  |
| *[Signature Page to Subscription Agreement]* | *[Signature Page to Subscription Agreement]* |

---

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**IN WITNESS WHEREOF**, PS Inc. and PSUS have accepted this Subscription Agreement as of ________________, which shall be the "<u>Effective Date</u>" for purposes of this Agreement.

---

| |
|:---|
| **Pershing Square Holdco, L.P.** |
| By: |
| Name: <br> Title: |

---

---

| |
|:---|
| **Pershing Square USA, Ltd.** |
| By: |
| Name: <br> Title: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Address for Notices:<br>787 Eleventh Avenue, 9th Floor <br> New York, NY 10019 <br> Attn: Chief Legal Officer <br> Email: [email address]<br>with a copy (not to constitute notice) to:<br>Sullivan & Cromwell LLP <br> 125 Broad Street <br> New York, NY 10004 <br> Attn: William G. Farrar <br> Email: [email address] |

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*[Signature Page to Subscription Agreement]*

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**ANNEX A**

**ELIGIBILITY REPRESENTATIONS OF SUBSCRIBER**

This <u>Annex A</u> should be completed and signed by Subscriber and constitutes a part of the Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. U.S. PERSON STATUS (Please check one of the boxes)

&nbsp;&nbsp;&nbsp;&nbsp;<br>

☐ Subscriber is not a U.S. Person<sup>\*</sup> ("<u>U.S. Person</u>") within the meaning of Regulation S ("<u>Regulation S</u>") promulgated under the Securities Act and Subscriber is purchasing Subscribed Shares outside the United States in offshore transactions meeting the requirements of Regulation S. Subscriber agrees that it will not resell, reoffer or otherwise transfer any Shares to a U.S. Person without registration under the Securities Act, or an exemption therefrom. Subscriber acknowledges that the Subscribed Shares have not been and will not be registered under the securities laws of any jurisdiction and, therefore, cannot be resold, reoffered or otherwise transferred unless done so in compliance with applicable securities laws. Subscriber acknowledges that neither PS Inc. or PSUS is under any obligation to register Subscribed Shares on Subscriber's behalf or to assist Subscriber in complying with any applicable securities laws.

☐ Subscriber is a U.S. Person within the meaning of Regulation S.

\*\***AND**\*\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. QUALIFIED INSTITUTIONAL BUYER STATUS (Please check the box, if applicable)

☐ Subscriber is a "qualified institutional buyer" (as defined in Rule 144A under the Securities Act) (a "<u>QIB</u>")

☐ We are subscribing for the Subscribed Shares as a fiduciary or agent for one or more investor accounts, and each owner of such account is a QIB.

**\*\*OR\*\***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. INSTITUTIONAL ACCREDITED INVESTOR STATUS (Please check the box, if applicable)

☐ Subscriber is an institutional "accredited investor" (within the meaning of Rule 501(a) under the Securities Act) or an entity in which all of the equity holders are accredited investors within the meaning of Rule 501(a) under the Securities Act, and has marked and initialed the appropriate box below indicating the provision under which it qualifies as an institutional "accredited investor."

<sup>\*</sup> See page B-1 of Annex B hereto.

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**\*\*AND\*\***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. AFFILIATE STATUS<br>
 (Please check the applicable box)

SUBSCRIBER

☐ is:

☐ is not:

an "affiliate" (as defined in Rule 144 under the Securities Act) of PS Inc., or PSUS or acting on behalf of an affiliate of PS Inc. or PSUS.

**\*\*AND\*\***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. ACCREDITED INVESTOR STATUS<br>

Rule 501(a), in relevant part, states that an "accredited investor" shall mean any person who comes within any of the below listed categories, or who the issuer reasonably believes comes within any of the below listed categories, at the time of the sale of the securities to that person. Subscriber has indicated, by marking and initialing the appropriate box(es) below, the provision(s) below which apply to Subscriber and under which Subscriber accordingly qualifies as an "accredited investor."

☐ Any bank, registered broker or dealer, insurance company, registered investment company, business development company, small business investment company, private business development company, or rural business investment company;

☐ Any investment adviser registered pursuant to section 203 of the Investment Advisers Act or registered pursuant to the laws of a state;

☐ Any investment adviser relying on the exemption from registering with the Commission under section 203(l) or (m) of the Investment Advisers Act;

☐ Any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000;

☐ Any employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974 ("<u>ERISA</u>"), if (i) the investment decision is made by a plan fiduciary, as defined in section 3(21) of ERISA, which is either a bank, a savings and loan association, an insurance company, or a registered investment adviser, (ii) the employee benefit plan has total assets in excess of $5,000,000 or, (iii) such plan is a self-directed plan, with investment decisions made solely by persons that are "accredited investors";

------

☐ Any (i) corporation, limited liability company or partnership, (ii) Massachusetts or similar business trust, or (iii) organization described in section 501(c)(3) of the Internal Revenue Code, in each case that was not formed for the specific purpose of acquiring the securities offered and that has total assets in excess of $5,000,000;

☐ Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Section 230.506(b)(2)(ii) of Regulation D under the Securities Act;

☐ Any entity, other than an entity described in the categories of "accredited investors" above, not formed for the specific purpose of acquiring the securities offered, owning investments in excess of $5,000,000;

☐ Any "family office," as defined under the Investment Advisers Act that satisfies all of the following conditions: (i) with assets under management in excess of $5,000,000, (ii) that is not formed for the specific purpose of acquiring the securities offered, and (iii) whose prospective investment is directed by a person who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment;

☐ Any "family client," as defined under the Investment Advisers Act, of a family office meeting the requirements in the previous paragraph and whose prospective investment in the issuer is directed by such family office pursuant to the previous paragraph; or

☐ Any entity in which all of the equity owners are "accredited investors".

☐ Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

☐ Any natural person whose individual net worth, or joint net worth with that person's spouse or spousal equivalent, exceeds $1,000,000. For purposes of calculating a natural person's net worth: (a) the person's primary residence shall not be included as an asset; (b) indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and (c) indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability;

------

☐ Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse or spousal equivalent in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;

☐ Any natural person holding in good standing one or more professional certifications or designations or credentials from an accredited educational institution that the Commission has designated as qualifying an individual for accredited investor status; or

☐ Any natural person who is a "knowledgeable employee," as defined in the 1940 Act, of the issuer of the securities being offered or sold where the issuer would be an investment company, as defined in section 3 of such act, but for the exclusion provided by either section 3(c)(1) or section 3(c)(7) of such act.

**\*\*AND\*\***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. FINRA INSTITUTIONAL ACCOUNT STATUS (Please check the box, if Subscriber is a "qualified institutional buyer" or an institutional "accredited investor")

☐ Subscriber is an "institutional account" under FINRA Rule 4512(c).

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**ANNEX B**

**REGULATION S DEFINITION OF U.S. PERSON**

(1)&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to Regulation S of the Securities Act, "U.S. person" includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any natural person resident in the U.S.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any partnership or corporation organized or incorporated under the laws of the U.S.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any estate of which any executor or administrator is a U.S. person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any trust of which any trustee is a U.S. person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any agency or branch of a foreign entity located in the U.S.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the U.S.; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any partnership or corporation if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp; organized or incorporated under the laws of any foreign jurisdiction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp; formed by a U.S. person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a) under the Securities Act) who are not natural persons, estates or trusts.

(2) Notwithstanding (1) above, any discretionary account or similar account (other than an estate or trust) held for the benefit or account of a non-U.S. person by a dealer or other professional fiduciary organized,
 incorporated, or (if an individual) resident in the U.S. will not be deemed a "U.S. person."

(3) Notwithstanding (1) above, any estate of which any professional fiduciary acting as executor or administrator is a U.S. person will not be deemed a U.S. person if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an executor or administrator of the estate who is not a U.S. person has sole or shared investment discretion with respect to the assets of the estate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the estate is governed by foreign law.

(4) Notwithstanding (1) above, any trust of which any professional fiduciary acting as trustee is a U.S. person will not be deemed a U.S. person if a trustee who is not a U.S. person has sole or shared investment
 discretion with respect to the trust assets, and no beneficiary of the trust (and no settlor if the trust is revocable) is a U.S. person.

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(5) Notwithstanding (1) above, an employee benefit plan established and administered in accordance with the law of a country other than the U.S. and customary practices and documentation of such country will not be
 deemed a U.S. person.

(6) Notwithstanding (1) above, any agency or branch of a U.S. person located outside the U.S. will not be deemed a "U.S. person" if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the agency or branch operates for valid business reasons; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the agency or branch is engaged in the business of insurance or banking and is subject to substantive insurance or banking regulation, respectively, in the jurisdiction where located.

(7) The International Monetary Fund, the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, the United Nations, and
 their agencies, Affiliates and pension plans, and any other similar international organizations, their agencies, Affiliates and pension plans will not be deemed "U.S. persons."

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**ANNEX C**

**CERTIFICATE FOR CANADIAN INVESTORS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. By executing this Certificate for Canadian Investors (this " <u>Canadian Certificate</u> ") in connection with the investment by the undersigned (the " <u>Subscriber</u> ") in (i) the
 common shares of beneficial interest, no par value per share, of Pershing Square USA, Ltd. (" <u>PSUS</u> ") and (ii) the common stock, par value $0.001 per share of Pershing Square Holdco, L.P. (" <u>PS Inc.</u> ")

 ((i) and (ii) together, the " <u>Subscribed Shares</u> "), Subscriber hereby represents, warrants and certifies to the Company that the Subscriber:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) by executing this Subscription Agreement, Subscriber, on its own behalf and on behalf of any underlying owner, hereby confirms to PSUS, PS Inc. and their authorized agents, including any dealer
 acting as placement agent in connection with the investment in the Subscribed Shares by Subscriber, the truth and correctness of the representations and warranties set out under the heading "Annex C – Certificate for Canadian Investors", which
 are incorporated by reference herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) PSUS, PS Inc. and their authorized agents, including any dealer acting as placement agent in connection with the investment in the Subscribed Shares by Subscriber, and their respective counsel,
 are relying upon the accuracy and truth of the representations and warranties in the Subscription Agreement and Subscriber hereby consents to such reliance, and (b) the representations and warranties contained in the Subscription Agreement shall
 survive the issuance of the Subscribed Shares to Subscriber and may continue to be relied on by PSUS, PS Inc. and their authorized agents, including any dealer acting as placement agent in connection with the investment in the Subscribed Shares
 by Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) where required by applicable securities laws, is investing in the Subscribed Shares as principal, or is deemed to be investing as principal in accordance with applicable securities laws of the
 province in which the Subscriber is resident, for investment only and not with a view to resale or distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) is resident in or is subject to the laws of (*check one*):

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| | | |
|:---|:---|:---|
| **☐** British Columbia | **☐** Alberta | **☐** Saskatchewan |
| **☐** Manitoba | **☐** Ontario | **☐** Québec |
| **☐** New Brunswick | **☐** Prince Edward Island | **☐** Nova Scotia |
| **☐** Newfoundland & Labrador |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) has not been provided with any offering memorandum as such term is defined in Schedule "A" to this Canadian Certificate in connection with the investment in the Subscribed Shares other than the
 Canadian Memorandum; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) meets the criteria in and has completed Schedule "A" to this Canadian Certificate.

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| | |
|:---|:---|
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> **CERTIFIED** at **____________________**, this __________ day of _____________, 20_____. | &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> **CERTIFIED** at **____________________**, this __________ day of _____________, 20_____. |
|  | Name of Subscriber |
| &nbsp;&nbsp;By: | Name of Signatory:<br> Title (if applicable): |
| &nbsp;&nbsp;By: | Name of Signatory:<br> Title (if applicable): |

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**SCHEDULE "A"**<br> **TO CANADIAN CERTIFICATE**

**"PERMITTED CLIENT"**

(All underlined words have the meanings set forth below)

*Please check the appropriate box*

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| | |
|:---|:---|
| &nbsp;&nbsp;**☐**&nbsp;&nbsp;(a) | &nbsp;&nbsp;a Canadian financial institution or a Schedule III bank; |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(b) | &nbsp;&nbsp;the Business Development Bank of Canada incorporated under the *Business Development Bank of Canada Act* (Canada); |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(c) | &nbsp;&nbsp;a subsidiary of any person or company referred to in paragraph (a) or (b), if the person or company owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of the subsidiary; |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(d) | &nbsp;&nbsp;a person or company registered under the securities legislation of a jurisdiction of Canada as an adviser, investment dealer, mutual fund dealer or exempt market dealer; |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(e) | &nbsp;&nbsp;a pension fund that is regulated by either the federal Office of the Superintendent of Financial Institutions or a pension commission or similar regulatory authority of a jurisdiction of Canada or a wholly-owned subsidiary of such a pension fund; |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(f) | &nbsp;&nbsp;an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (e); |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(g) | &nbsp;&nbsp;the Government of Canada or a jurisdiction of Canada, or any Crown corporation, agency or wholly-owned entity of the Government of Canada or a jurisdiction of Canada; |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(h) | &nbsp;&nbsp;any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government; |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(i) | &nbsp;&nbsp;a municipality, public board or commission in Canada and a metropolitan community, school board, the *Comité de gestion de la taxe scolaire de l'île de Montréal* or an intermunicipal management board in Québec; |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(j) | &nbsp;&nbsp;a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a managed account managed by the trust company or trust corporation, as the case may be; |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(k) | &nbsp;&nbsp;a person or company acting on behalf of a managed account managed by the person or company, if the person or company is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction; |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(l) | &nbsp;&nbsp; an investment fund if one or both of the following apply: <br> (i) the fund is managed by a person or company registered as an investment fund manager under the securities legislation of a jurisdiction of Canada; <br> (ii) the fund is advised by a person or company authorized to act as an adviser under the legislation of a jurisdiction of Canada;  |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(m) | &nbsp;&nbsp;a registered charity under the Income Tax Act (Canada) that obtains advice on the securities to be traded from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity; |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(n) | &nbsp;&nbsp;an individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds C$5 million; |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(o) | &nbsp;&nbsp;a person or company that is entirely owned by an individual or individuals referred to in paragraph (n), who holds the beneficial ownership interest in the person or company directly or through a trust, the trustee of which is a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction; |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(p) | &nbsp;&nbsp;a person or company, other than an individual or an investment fund, that has net assets of at least C$25 million as shown on its most recently prepared financial statements; |
| &nbsp;&nbsp;**☐** &nbsp;&nbsp;(q) | &nbsp;&nbsp;a person or company that distributes securities of its own issue in Canada only to persons or companies referred to in paragraphs (a) to (p). |

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**As used in this Schedule "A", the following terms have the following meanings**:

"<u>Canadian financial institution</u>" means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an association governed by the *Cooperative Credit Associations Act* (Canada) or a central cooperative credit society for which an order has been made under section 473(1) of that Act, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a bank, loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative, or league that, in each case, is authorized by an
 enactment of Canada or a jurisdiction of Canada to carry on business in Canada or a jurisdiction of Canada.

"<u>eligibility adviser</u>" means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a person that is registered as an investment dealer and authorized to give advice with respect to the type of security being distributed, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in Saskatchewan or Manitoba, also means a lawyer who is a practicing member in good standing with a law society of a jurisdiction of Canada or a public accountant who is a member in good standing of an institute or
 association of chartered accountants, certified general accountants or certified management accountants in a jurisdiction of Canada provided that the lawyer or public accountant must not

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) have a professional, business or personal relationship with the issuer, or any of its directors, executive officers, founders, or control persons (as such term is defined in applicable securities legislation), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) have acted for or been retained personally or otherwise as an employee, executive officer, director, associate or partner of a person that has acted for or been retained by the issuer or any of its directors,
 executive officers, founders or control persons (as such term is defined in applicable securities legislation) within the previous 12 months.

For the purposes of the definition of "eligibility adviser" above, the following terms have the following meanings:

"<u>director</u>" means,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a member of the board of directors of a company or an individual who performs similar functions for a company, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to a person that is not a company, an individual who performs functions similar to those of a director of a company.

"<u>executive officer</u>" means, for an issuer, an individual who is

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a chair, vice-chair or president,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a vice-president in charge of a principal business unit, division or function including sales, finance or production, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) performing a policy-making function in respect of the issuer.

"<u>founder</u>" means, in respect of an issuer, a person who,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) acting alone, in conjunction, or in concert with one or more persons, directly or indirectly, takes the initiative in founding, organizing or substantially reorganizing the business of the issuer, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at the time of the distribution or trade is actively involved in the business of the issuer.

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"<u>person</u>" includes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an individual,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a corporation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a partnership, trust, fund and an association, syndicate, organization or other organized group of persons, whether incorporated or not, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) an individual or other person in that person's capacity as a trustee, executor, administrator or personal or other legal representative.

"<u>financial assets</u>" means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cash,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) securities, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a contract of insurance, a deposit or an evidence of a deposit that is not a security for the purposes of securities legislation.

"<u>managed account</u>" means an account of a client for which a person makes the investment decisions if that person or company has discretion to trade in securities for the account without requiring the client's express consent to a transaction;

"<u>offering memorandum</u>" means a document, together with any amendments to that document, purporting to describe the business and affairs of an issuer that has been prepared primarily for delivery to and review by a prospective purchaser so as to assist the prospective purchaser to make an investment decision in respect of securities being sold in a distribution to which section 53 of the *Securities Act* (Ontario) would apply but for the availability of one or more exemptions contained in Ontario securities laws, but does not include a document setting out current information about an issuer for the benefit of a prospective purchaser familiar with the issuer through prior investment or business contacts,

"<u>Schedule III bank</u>" means an authorized foreign bank named in Schedule III of the Bank Act (Canada);

"<u>subsidiary</u>" means an issuer that is controlled directly or indirectly by another issuer and includes a subsidiary of that subsidiary.

For the purposes of the definition of "subsidiary" above, a person (first person) is considered to control another person (second person) if

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the first person, directly or indirectly, beneficially owns or exercises control or direction over securities of the second person carrying votes which, if exercised, would entitle the first person to elect a
 majority of the directors of the second person, unless that first person holds the voting securities only to secure an obligation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the second person is a partnership, other than a limited partnership, and the first person holds more than 50% of the interests of the partnership, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the second person is a limited partnership and the general partner of the limited partnership is the first person.

 **END OF SCHEDULE "A"**

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**ANNEX D**

**FOR INVESTORS IN THE EEA OR UNITED KINGDOM**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. AIFMD Information

If the Investor\* is resident in, or has a registered office in, the EEA (other than Belgium, Finland, Luxembourg. Norway, the Netherlands and Sweden), the undersigned should check Section 1(A) and must check one Item in Section 1(B). If the Investor is resident in, or has a registered office in, the United Kingdom, Belgium, Finland, Luxembourg. Norway, the Netherlands or Sweden, the undersigned may skip Section 1(A) and must check one Item in Section 1(B).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Reverse Solicitation

☐ If the Investor is resident in, or has a registered office in, any member state of the EEA other than Belgium, Finland, Luxembourg. Norway, the Netherlands and Sweden, the undersigned (a) represents and warrants that no representative of Pershing Square Capital Management, L.P. (the "<u>Investment Manager</u>") or its affiliates has marketed (within the meaning of EU Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers ("<u>AIFMD</u>")) the Shares to the Investor or its affiliates and the Investor approached the Investment Manager at its own initiative with a request to receive information in respect of the Fund and not as a result of a direct or indirect offer or placement of the Shares initiated by the Investment Manager; and (b) acknowledges that it will not receive any disclosure or reporting that is specifically intended to comply with AIFMD.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Professional Investor Status

**RETAIL INVESTOR NOTICE**: In relation to offers in the EEA or the United Kingdom, the Shares are only available to persons capable of being categorized as "professional investors" (within the meaning of AIFMD). No person categorized as (i) a "retail client" (as defined in point (11) of Article 4(1) of EU Directive 2014/65/EU on Markets in Financial Instruments ("**MiFID II**")) or (ii) a "customer" (within the meaning of Directive 2002/92/EC on Insurance Mediation), where such customer does not qualify as a "professional client" (as defined in point (10) of Article 4(1) of MiFID II), may subscribe for the Shares.

<sup>\*</sup> For purposes of this Section, "Investor" means the person that makes the investment decision to invest in the Subscribed Shares, including a beneficial owner making such decision on its own behalf and a discretionary investment manager or other agent making such decision on behalf of such beneficial owner.

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(Please check one)

☐ 1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The undersigned represents and warrants that the Investor is a "professional investor" (within the meaning of AIFMD) because it is any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an entity that is required to be authorized or regulated to operate in the financial markets as: (i) a credit institution; (ii) an investment firm; (iii) any other authorized or regulated financial institution; (iv)
 an insurance company; (v) a collective investment scheme or the management company of such a scheme; (vi) a pension fund or the management company of a pension fund; (vii) a commodity or commodity derivatives dealer; (viii) a local firm; or (ix)
 any other institutional investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a large undertaking meeting two of the following three size requirements: (i) balance sheet total of €20,000,000; (ii) net turnover of €40,000,000; and/or (iii) own funds of €2,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a national or regional government, a public body that manages public debt at a national or regional level, a central bank, an international or supranational institution (such as the World Bank, the International
 Monetary Fund, the European Central Bank or the European Investment Bank) and other similar international organization; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) another type of institutional investor whose main activity is to invest in financial instruments, including an entity dedicated to the securitization of assets or other financing transactions.

☐ 2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The undersigned cannot check Item 1 above but wishes to be treated as a "professional investor" (within the meaning of AIFMD) by the Investment Manager in respect of the Investor's investment in the Fund.

If the undersigned checked this Item, please check one of the following:

☐ (a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The undersigned represents and warrants that the Investor is a private individual or other investor not capable of meeting the tests in Item 1 above but capable of being categorized as a "professional client" (within the meaning of MiFID II) because it satisfies at least two of the following three criteria: (i) the Investor has made significant investments in private funds at an average frequency of ten per quarter over the previous four calendar quarters; (ii) the Investor's financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds €500,000 or its equivalent in another currency at the time of subscription; and/or (iii) the Investor works or has worked in the financial sector for at least one year in a professional position that requires knowledge of investment in private funds.

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☐ (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The undersigned represents and warrants that the Investor is a UK public sector body, local public authority (including local authority pension scheme) or municipality that meets the following criteria: (i) the Investor's financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds £10,000,000 or its equivalent in another currency at the time of subscription; and (ii) at least one of the following tests is met: (A) the Investor has made significant investments in private funds at an average frequency of ten per quarter over the previous four calendar quarters; (B) the person authorized to carry out transactions on behalf of the Investor works or has worked in the financial sector for at least one year in a professional position that requires knowledge of investment in private funds; or (C) the Investor is an "administering authority" of the Local Government Pension Scheme within the meaning of the version of Schedule 3 of The Local Government Pension Scheme Regulations 2014 or (in relation to Scotland) within the meaning of the version of Schedule 3 of The Local Government Pension Scheme (Scotland) Regulations 2014 and is acting in that capacity.

***This page should be completed by Subscriber and constitutes a part*<br> *of the Subscription Agreement.***

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| |
|:---|
| SUBSCRIBER: |
| Print Name: |
| By: |
| Name: <br> Title: |

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**&nbsp;&nbsp;&nbsp;&nbsp;**

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**ANNEX E**

**INFORMATION and Requirements FOR INVESTORS IN SWITZERLAND** 

**INSTRUCTIONS**

Please provide either a signed **Professional Client Confirmation** *or* a **HNWI Opting-Out Declaration**, as applicable, forms of which are on the following pages.

In addition, please note the following disclosures:

**INFORMATION FOR INVESTORS IN SWITZERLAND** 

**1)** **Qualified investors**

The Subscribed Shares may only be offered in Switzerland to qualified investors within the meaning of Article 10 paragraphs 3 and 3ter CISA.

**2)** **Representative in Switzerland**

The representative is Banque Heritage SA, 61 Route de Chêne, 1208 Geneva, Switzerland.

**3)** **Paying agent in Switzerland**

The paying agent is Banque Heritage SA, 61 Route de Chêne, 1208 Geneva, Switzerland.

**4)** **Location where the relevant documents may be obtained**

The basic documents of PSUS and PS Inc. as well as the annual and, if applicable, semi-annual report may be obtained free of charge from sec.gov or the representative.

**5)** **Place of performance and jurisdiction** 

For units offered in Switzerland, the place of performance is at the registered office of the representative. The place of jurisdiction shall be at the registered office of the representative or at the registered office or domicile of the investor.

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**Professional Client Confirmation**

To: Pershing Square Holdco, L.P. (the **Company**)

Date: _______________

Professional Client Confirmation

To Whom it May Concern,

The undersigned (the **Subscriber**) hereby confirms to Pershing Square Holdco, L.P. (the **Company**) that, at the time of signing this declaration, the Subscriber is a professional client within the meaning of article 4 para. 3 of the Swiss Federal Act on Financial Services (**FinSA**) (**Professional Client**) and, therefore, a qualified investor within the meaning of article 10 para. 3 of the Swiss Federal Act on Collective Investment Schemes (**CISA**) (**Qualified Investor**).

In particular, the Subscriber hereby confirms that it falls under at least one of the following Professional Client categories (tick as appropriate):

☐ Swiss financial intermediary as defined in the Swiss Federal Banking Act, the Swiss Federal Financial Institutions Act or CISA, such as a bank, securities firm, fund management company or asset manager of collective investment schemes;

☐ Swiss insurance company as defined in the Swiss Federal Insurance Act;

☐ a foreign institution that is subject to a prudential supervision in its own country equivalent to the one applied by the Swiss Financial Market Supervisory Authority to Swiss financial intermediaries and Swiss insurance companies mentioned above;

☐ a central bank;

☐ (i) a public entity, (ii) an occupational pension scheme or another institution, whose purpose is to serve occupational pensions, or (iii) a company; in each case under (i) through (iii), which has its own professional treasury operations;

**Note:** Professional treasury operations are given when at least one qualified person—within or outside the relevant entity—with experience in the financial sector is entrusted to manage on a permanent basis the financial assets of the relevant entity.

☐ a large company, which means a company that exceeds at least two of the following parameters: (a) total balance sheet of CHF 20,000,000; (b) turnover of CHF 40,000,000; and (c) equity of CHF 2,000,000 (or an amount with an equal exchange value in another currency); and/or

☐ a private investment structure with professional treasury operations (see explanation above in this regard) created for high-net-worth retail clients.

The classification as Professional Client, respectively as Qualified Investors will allow the Company to market and offer foreign collective investment scheme units, whose distribution in Switzerland has not been approved by the Swiss Financial Market Supervisory Authority (**FINMA**), including foreign collective investment scheme units designed exclusively for Qualified Investors, without having to appoint a Swiss representative and a Swiss paying agent.

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The Subscriber hereby acknowledges that unless the Company has reason to believe otherwise or unless the Subscriber informs the Company of any change(s) in its status and/or of its relevant circumstances (see below), the Company will assume that the Subscriber continues to be eligible to be classified in the selected category, respectively categories ticked above. If the Subscriber informs the Company of any change(s) to its status and/or of its relevant circumstances (see below) and/or if the Company has reason to believe that the Subscriber no longer fulfils the eligibility requirements to be qualified as a Professional Client, respectively as Qualified Investor, the Subscriber hereby warrants to use its best efforts to supply the Company without delay with any information and/or documents which would allow the Company to verify the above mentioned change(s) in representation. If the Subscriber should not supply such information and/or documents, the Company may be required to reclassify the Subscriber (i.e., downgrade the Subscriber from a Professional Client to a retail client within the meaning of FinSA).

The Company hereby informs the Subscriber that the Subscriber has the duty to inform the Company without delay of any change(s) to its status and/or about any circumstances that may affect the correctness of the ticked category respectively categories (e.g., the loss of a license granted by FINMA or a cessation of the professional treasury operations) by letter to Pershing Square Capital Management, L.P., 787 Eleventh Avenue, 9th Floor, New York, NY 10019 or by email to [email address]. In such a case, the Subscriber represents and warrants to refuse any further marketing materials and/or offers, in particular relating to collective investment scheme units intended exclusively for Professional Clients, respectively Qualified Investors.

Moreover, the Company hereby voluntarily informs the Subscriber that, in particular Professional Clients may declare that they wish to be treated as retail clients within meaning of article 4 para. 2 FinSA (opting in). Such a declaration will give the Subscriber a substantial higher level of protection, in particular under CISA and FinSA. In light of the Company's business, most notably, foreign collective investment schemes must not be approved by FINMA before they can be offered in or from Switzerland to Qualified Investors and the founding documents of a foreign collective investment scheme do not need to be reviewed or approved by FINMA and may therefore not be subject to any regulatory supervision, which protects investors. However, at the same time such a declaration may, among other things, restrict the access to certain product offerings and/or product advertisement from the Company.

The Subscriber is aware that the Company will use this declaration to determine its status under FinSA respectively under CISA at the occasion of any investment in and/or marketing for and/or offering of collective investment scheme units.

The Subscriber herewith acknowledges and agrees that neither the Company nor any affiliate, representative and/or distributor of the Company has rendered or will render the undersigned any financial service within the meaning of article 3 lit. c FinSA, including but not limited to any personal investment advice related to an investment in any financial product.

Neither the Company or Pershing Square USA, Ltd. been approved for offering to non-qualified investors by the Swiss Financial Market Supervisory Authority FINMA (**FINMA**) pursuant to article 120(1) of the Swiss Federal Act on Collective Investment Schemes (**CISA**). Pursuant to article 120(4) CISA, Banque Heritage SA, 61 Route de Chêne, 1208 Geneva, Switzerland has been appointed as Swiss representative and Banque Heritage SA, 61 Route de Chêne, CH-1208 Geneva, Switzerland has been appointed as Swiss paying agent. Accordingly, the common shares of the Company and the common stock of Pershing Square USA, Ltd. may only be offered (within the meaning of article 3(g) of the Swiss Federal Act on Financial Services (**FinSA**)) or marketed (within the meaning of article 127a of the Collective Investment Schemes Ordinance), directly or indirectly, in or from Switzerland and the Offering Memorandum and any other offering documents relating to the Company or Pershing Square USA, Ltd. may only be made available in or from Switzerland to qualified investors as defined in article 10(3) and (3ter) CISA. Subscribers in the common shares of the Company and the common stock of Pershing Square USA, Ltd. do not benefit from the specific investor protection provided by CISA and the supervision by the FINMA in connection with the approval for offering.

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The Offering Memorandum, Memorandum and Articles of Association of the Company and Pershing Square USA, Ltd. and audited financial statements can be obtained free of charge from the Representative. The place of performance with respect to shares offered or distributed in or from Switzerland is the registered office of the Swiss representative.

Subscriber:________________________________

    <br> Name: Name: <br> Function: Function:

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**HNWI Opting-Out Declaration**

To: Pershing Square Holdco, L.P.

Date: _______________

**HNWI Opting Declaration**

To Whom it May Concern,

The Subscriber (the **Subscriber**) hereby confirms to Pershing Square Holdco, L.P. (the **Company**), that he/she/it requests to be treated as a professional client within the meaning of article 5 para. 1 of the Swiss Federal Act on Financial Services (**FinSA**) (**Professional Client**) and accepts that, in consequence, the Company shall classify and consider him/her/it as a qualified investor within the meaning of article 10 para. 3 of the Swiss Federal Act on Collective Investment Schemes (**CISA**) (**Qualified Investor**).

In particular, the Subscriber hereby represents and warrants that, at the time of signing this opting-out declaration, he/she/it either:

a) fulfills at least one of the following two eligibility requirements pursuant to article 5 para. 2 FinSA:

☐ On the basis of his/her/its personal education/training and professional experience or as a result of a comparable experience in the financial sector, he/she/it possesses the necessary knowledge to recognize and understand the risks connected to his/her/its investments. In addition and at the same time, he/she/it directly or indirectly holds eligible assets within the meaning of article 5 of the Swiss Federal Ordinance on Financial Services (**FinSO**) in the form of financial assets amounting to at least CHF 500,000 (or an amount with an equal exchange value in another currency); and/or

**Note**: Direct investments in real estate and claims from social insurance schemes as well as occupational pension assets **do not qualify as eligible assets**. Direct financial investments are investments, which are formally held in the own name and for the own account, *i.e*., the formal and beneficial owner are identical. In the case of indirect financial investments, the formal and beneficial owner are not the same entity/person.

☐ He/she/it directly or indirectly holds eligible assets within the meaning of article 5 FinSO in the form of financial assets amounting to at least CHF 2,000,000 (or an amount with an equal exchange value in another currency).

**Note**: Direct investments in real estate and claims from social insurance schemes as well as occupational pension assets **do not qualify as eligible assets**. Direct financial investments are investments, which are formally held in the own name and for the own account, *i.e*., the formal and beneficial owner are identical. In the case of indirect financial investments, the formal and beneficial owner are not the same entity/person.

OR:

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b)

☐ It is a private investment structure without professional treasury operations which was created for high-net worth clients that satisfy all the criteria of at least one of the two categories listed under (a), pursuant to Art. 5 para. 1 FinSA.

The Subscriber hereby represents and warrants that, at the time of signing this opting-out declaration, the eligible assets within the meaning of article 5 para. 1 FinSO, which were considered by the Subscriber in order to reach or exceed either the threshold of CHF 500,000 or CHF 2,000,000 above are not jointly held together with any other person and/or entity.

Furthermore, the Subscriber hereby confirms that:

☐ He/she/it **is** in a long-standing, pre-existing investment advisory- or investment management relationship with a prudentially supervised financial institution, and the Subscriber acknowledges that for this reason the fund would be allowed to be marketed or offered to him/her/it without the fund having appointed a Swiss representative or a Swiss paying agent and that therefore the Subscriber would also not benefit from the investor protection offered by the appointment of a Swiss representative or Swiss paying agent; or

☐ he/she/it **is not** in a long-standing, pre-existing investment advisory- or investment management relationship with a prudentially supervised financial institution, and the Subscriber acknowledges that for this reason the fund would only be allowed to be marketed or offered to him/her/it if the fund has appointed a Swiss representative and a Swiss paying agent.

The Subscriber hereby acknowledges that unless the Company has a reason to believe otherwise or unless the Subscriber informs the Company of any change(s) in his/her/its wealth situation or circumstances (see below), the Company will assume that the Subscriber continues to be eligible to be classified as a Professional Client or as a Qualified Investor respectively. If the Subscriber informs the Company of any change(s) to his/her/its wealth situation or circumstances as set out below and/or if the Company has reason to believe that the Subscriber no longer fulfils the eligibility requirements to be qualified as a Professional Client, respectively as a Qualified Investor, the Subscriber hereby warrants to use its best efforts to supply the Company with any information and/or documents (including, without limitation, account/portfolio statements) without delay, which would allow the Company to verify the above mentioned change(s) in representation. If the Subscriber does not supply such information and/or documents, the Company may be required to reclassify the Subscriber (*i.e*., downgrade the Subscriber from a Professional Client to a retail client within the meaning of FinSA).

The Subscriber understands that, in particular due to the size of his/her/its wealth, Qualified Investors', respectively Professional Clients' need for protection is considered by the Swiss financial market regulation to be significantly lower than the protection required for retail clients, respectively for non-qualified investors. In light of the Company's business, most notably, foreign collective investment schemes need not be approved by the Swiss Financial Market Supervisory Authority (**FINMA**) before they can be offered in or from Switzerland to Qualified Investors and the founding documents of a foreign collective investment scheme do not need to be reviewed or approved by FINMA and may therefore not be subject to any regulatory supervision and/or investor protection. Moreover, the Subscriber hereby acknowledges that, whereas he/she/it has the right to receive more detailed information from the Company in relation to the risks and opportunities of being classified as Professional Client, respectively as Qualified Investor before signing this opting-out declaration, he/she/it hereby expressly declares that his/her/its information needs in that regard were fully satisfied by the Company at the time of signing this opting-out declaration.

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The Subscriber hereby confirms that he/she/it is aware of and understands the risks associated with a classification as a Professional Client, respectively as a Qualified Investor and expressly declares his/her/its request to be classified as such by the Company in relation to all current and future business relationships with the Company. This classification will, among other things, allow the Company to offer him/her/it Swiss collective investment scheme units designed exclusively for Qualified Investors and foreign collective investment scheme units whose offering in Switzerland has not been approved by FINMA, including foreign collective investment scheme units designed exclusively for Qualified Investors.

The Subscriber is aware and understands that the Company will use this declaration to determine his/her/its status as a Professional Client, respectively as a Qualified Investor at the occasion of any investment in and/or marketing for and/or offering of collective investment scheme units. The Company hereby informs the Subscriber that he/she/it has the duty to inform the Company without delay of any change(s) with regard to any circumstances that may affect the correctness of the ticked opting-out eligibility requirement(s) (e.g. the eligible financial assets fall below the minimum thresholds specified above or the eligible financial assets, which were considered by the Subscriber in order the reach or exceed either the threshold of CHF 500,000 or CHF 2,000,000 in this declaration will be held jointly by the Subscriber with any other person or entity after he/she/it has signed this declaration) by letter to Pershing Square Capital Management, L.P., 787 Eleventh Avenue, 9th Floor, New York, NY 10019 or by email to [email address]. In such a case, the Subscriber represents and warrants to refuse any further marketing material and/or offers relating, in particular to collective investment scheme units intended exclusively for Professional Clients resp. Qualified Investors.

This opting-out declaration may be withdrawn from the Subscriber at any point in time in the future by sending an opting-in declaration by letter to Pershing Square Capital Management, L.P., 787 Eleventh Avenue, 9th Floor, New York, NY 10019 or an email to [email address] expressly declaring the wish of the Subscriber to no longer be treated as Professional Client, respectively as Qualified Investor by the Company. However, such a withdrawal may restrict the access of the Subscriber, in particular with regard to the financial product offerings and advertisements for financial products from the Company.

The Subscriber herewith acknowledges and agrees that neither the Company nor any affiliate, representative and/or distributor of the Company has rendered or will render the Subscriber any financial service within the meaning of article 3 lit. c FinSA, including but not limited to any personal investment advice related to an investment in any financial product.

Neither the Company or Pershing Square USA, Ltd. has been approved for offering to non-qualified investors by the Swiss Financial Market Supervisory Authority FINMA (**FINMA**) pursuant to article 120(1) of the Swiss Federal Act on Collective Investment Schemes (**CISA**). Pursuant to article 120(4) CISA, Banque Heritage SA, 61 Route de Chêne, 1208 Geneva, Switzerland has been appointed as Swiss representative and Swiss paying agent. Accordingly, the common shares of the Company and the common stock of Pershing Square USA, Ltd. may only be offered (within the meaning of article 3(g) of the Swiss Federal Act on Financial Services (**FinSA**)) or marketed (within the meaning of article 127a of the Collective Investment Schemes Ordinance), directly or indirectly, in or from Switzerland and the Offering Memorandum and any other offering documents relating to the Company or Pershing Square USA, Ltd. may only be made available in or from Switzerland to qualified investors as defined in article 10(3) and (3ter) CISA. Subscribers in the common shares of the Company and the common stock of Pershing Square USA, Ltd. do not benefit from the specific investor protection provided by CISA and the supervision by the FINMA in connection with the approval for offering.

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The Offering Memorandum, Memorandum and Articles of Association of the Company and Pershing Square USA Ltd. and audited financial statements can be obtained free of charge from the Representative. The place of performance with respect to shares offered or distributed in or from Switzerland is the registered office of the Swiss representative.

______________________________<br> Name:

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**ANNEX F**

**FOR INVESTORS IN MEXICO**

☐The undersigned represents and warrants that Subscriber is an institutional investor (*inversionista institucional*) as defined in the Mexican Securities Market Law (*Ley del Mercado de Valores*) and is a retirement funds manager (*administradora de fondos para el retiro*) governed by the Retirement Systems Law (*Ley de los Sistemas de Ahorro para el Retiro*).

☐ The undersigned represents and warrants that Subscriber is a qualified investor (*inversionista calificado*) as defined in the Mexican Securities Market Law (*Ley del Mercado de Valores*) and the Rules Applicable to Securities Issuers and other Market Participants (*Disposiciones de Carácter General Aplicables a las Emisoras de Valores y a Otros Participantes del Mercado de Valores*) issued by the National Banking and Securities Commission (*Comisión Nacional Bancaria y de Valores*).

**The undersigned acknowledges and agrees that the Subscribed Shares are not, and will not be, registered with the National Banking and Securities Commission (*Comisión Nacional Bancaria y de Valores*) and that they are not and cannot be publicly offered in Mexico.**

***This page should be completed by Subscriber and constitutes a part*<br> *of the Subscription Agreement.***

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| |
|:---|
| SUBSCRIBER: |
| Print Name: |
| By: |
| Name: <br> Title: |

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## Exhibit 23.1

#### Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the reference to our firm under the caption "Experts" and to the use of our report dated March 9, 2026, in the Registration Statement (Form S-1) and related Prospectus of Pershing Square Holdco, L.P. for the registration of shares of its common stock.

/s/ Ernst & Young LLP

New York, New York

March 9, 2026

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## Exhibit 23.2

#### Exhibit 23.2

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| | |
|:---|:---|
| ![](ny20040230x14_ex23-2img01.jpg) | KPMG LLP<br> 2323 Ross Avenue<br> Suite 1400<br> Dallas, TX 75201 |

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#### Consent of Independent Registered Public Accounting Firm

We consent to the use of our report dated February 19, 2026, with respect to the consolidated financial statements of Howard Hughes Holdings Inc., and the effectiveness of internal control over financial reporting, included herein and to the reference to our firm under the heading "Experts" in the prospectus.

/s/ KPMG LLP

Dallas, Texas

March 9, 2026

KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

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## Ex-Filing

?xml version='1.0' encoding='ASCII'?

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**Exhibit 107**

**Calculation of Filing Fee Tables**

**Form S-1**

(Form Type)

**Pershing Square Holdco, L.P.**

(Exact Name of Registrant as Specified in its Charter)

**<u>Table 1: Newly Registered and Carry Forward Securities</u>**

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Security Type** | **Security Class Title** | **Fee Calculation or Carry Forward Rule** | **Amount Registered** | **Proposed Maximum Offering Price Per Unit** | **Maximum Aggregate Offering Price<sup>(1)(2)</sup>** | **Fee Rate** | &nbsp;&nbsp; **Amount of Registration Fee** | &nbsp;&nbsp; **Carry Forward Form Type** | &nbsp;&nbsp; **Carry Forward <br>File Number** | &nbsp;&nbsp; **Carry Forward Initial Effective Date** | **Filing Fee Previously Paid in Connection with Unsold Securities to be Carried Forward** |
| &nbsp;&nbsp; **Newly Registered Securities** | &nbsp;&nbsp; **Newly Registered Securities** | &nbsp;&nbsp; **Newly Registered Securities** | &nbsp;&nbsp; **Newly Registered Securities** | &nbsp;&nbsp; **Newly Registered Securities** | &nbsp;&nbsp; **Newly Registered Securities** | &nbsp;&nbsp; **Newly Registered Securities** | &nbsp;&nbsp; **Newly Registered Securities** | &nbsp;&nbsp; **Newly Registered Securities** | &nbsp;&nbsp; **Newly Registered Securities** | &nbsp;&nbsp; **Newly Registered Securities** | &nbsp;&nbsp; **Newly Registered Securities** | &nbsp;&nbsp; **Newly Registered Securities** |
| &nbsp;&nbsp; Fees to be Paid  | Equity | Common Stock, $0.001 par value per share | Rule 457(o) and Rule 457(f)(2) |  |  | $10791.13 | 0.00013810 | $1.49 |  |  |  |  |
|  | &nbsp;&nbsp; **Total Offering Amounts** | &nbsp;&nbsp; **Total Offering Amounts** | &nbsp;&nbsp; **Total Offering Amounts** | &nbsp;&nbsp; **Total Offering Amounts** |  | $10791.13 |  | $1.49 |  |  |  |  |
|  | &nbsp;&nbsp; **Total Fees Previously Paid** | &nbsp;&nbsp; **Total Fees Previously Paid** | &nbsp;&nbsp; **Total Fees Previously Paid** | &nbsp;&nbsp; **Total Fees Previously Paid** |  |  |  |  |  |  |  |  |
|  | &nbsp;&nbsp; **Total Fee Offsets** | &nbsp;&nbsp; **Total Fee Offsets** | &nbsp;&nbsp; **Total Fee Offsets** | &nbsp;&nbsp; **Total Fee Offsets** |  |  |  |  |  |  |  |  |
|  | &nbsp;&nbsp; **Net Fee Due** | &nbsp;&nbsp; **Net Fee Due** | &nbsp;&nbsp; **Net Fee Due** | &nbsp;&nbsp; **Net Fee Due** |  |  |  | $1.49 |  |  |  |  |

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(1) Estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(o) under the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(f)(2) under the Securities Act of 1933, as amended. The shares of common stock, par value $0.001 per share (the "PSI Common Stock"), being registered will be issued, for no additional consideration, to the initial investors in the initial public offering (the "PSUS IPO") of common shares of beneficial interest (the "PSUS Shares" and each, a "PSUS Share") of Pershing Square USA, Ltd. ("PSUS"), as contemplated by the registration statement on Form N-2 (File Nos. 333- and 811-23932) (the "PSUS Registration Statement") filed concurrently with this registration statement on Form S-1. Each initial investor in the PSUS IPO will receive, for no additional consideration, 20 shares of PSI Common Stock for every 100 PSUS Shares purchased in the PSUS IPO, including any PSUS Shares acquired by the underwriters in the PSUS IPO in connection with the exercise of their option to purchase additional PSUS Shares, as described in the prospectus of PSUS included in the PSUS Registration Statement. The maximum aggregate offering price represents an estimate of the maximum number of shares of PSI Common Stock that will be issued to the initial investors in the PSUS IPO based on the current maximum aggregate offering price reflected in the PSUS Registration Statement of the PSUS IPO, including PSUS Shares subject to the underwriters' option to purchase additional shares. As there has been no market for shares of PSI Common Stock prior to this offering and such shares are being offered for no additional consideration, the filing fee is based on the estimated book value of shares of PSI Common Stock as of the latest practicable date, consistent with Rule 457(f)(2). 

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