NEW YORK CITY REAL ESTATE TAX FISCAL YEAR
COMMENCING ON JULY 1, 2008 AND ENDING JUNE 30, 2009 (THE "BASE YEAR"). LANDLORD
REPRESENTS AND WARRANTS THAT THE BUILDING AND THE LAND ARE FULLY ASSESSED AND
THAT NEITHER THE BUILDING NOR THE LAND ARE CURRENTLY SUBJECT TO ANY AGREEMENT
WHICH REDUCES THE AMOUNT OF TAXES WHICH WOULD OTHERWISE BE PAYABLE BY LANDLORD
WITH RESPECT TO THE BUILDING AND/OR LAND HAD SUCH AGREEMENT NOT EXISTED.
(B)
THE TERM "TENANT'S TAX PROPORTIONATE SHARE" SHALL BE DEEMED TO MEAN
.7354%.
(C)
THE TERM "TAXES" SHALL MEAN ALL REAL ESTATE TAXES, ASSESSMENTS,
GOVERNMENTAL LEVIES, BUSINESS IMPROVEMENT DISTRICT CHARGES AND ASSESSMENTS,
MUNICIPAL TAXES, COUNTY TAXES OR ANY OTHER GOVERNMENTAL CHARGE, GENERAL OR
SPECIAL, ORDINARY OR EXTRAORDINARY, UNFORESEEN AS WELL AS FORESEEN, OF ANY KIND
OR NATURE WHATSOEVER, WHICH ARE OR MAY BE ASSESSED, LEVIED OR IMPOSED UPON ALL
OR ANY PART OF THE BUILDING, THE PARCEL OF LAND UPON WHICH IT IS ERECTED (HEREIN
CALLED, THE "LAND") AND THE SIDEWALKS, PLAZAS OR STREETS IN FRONT OF OR ADJACENT
THERETO, INCLUDING ANY TAX, EXCISE OR FEE MEASURED BY OR PAYABLE WITH RESPECT TO
ANY RENT, AND LEVIED AGAINST LANDLORD AND/OR THE LAND AND/OR BUILDING, UNDER THE
LAWS OF THE UNITED STATES, THE STATE OF NEW YORK, OR ANY POLITICAL SUBDIVISION
THEREOF. IF, DUE TO A FUTURE CHANGE IN THE METHOD OF TAXATION OR IN THE TAXING
AUTHORITY, A NEW OR ADDITIONAL REAL ESTATE TAX, OR A FRANCHISE, INCOME, TRANSIT,
PROFIT OR OTHER TAX OR GOVERNMENTAL IMPOSITION, HOWEVER DESIGNATED, SHALL BE
LEVIED AGAINST LANDLORD, AND/OR THE LAND AND/OR BUILDING, IN ADDITION TO, OR IN
SUBSTITUTION IN WHOLE OR IN PART FOR ANY TAX WHICH WOULD CONSTITUTE "TAXES", OR
IN LIEU OF ADDITIONAL TAXES, SUCH TAX OR IMPOSITION SHALL BE DEEMED FOR THE
PURPOSES HEREOF TO BE INCLUDED WITHIN THE TERM "TAXES".
(D)
THE TERM "TAX YEAR" SHALL MEAN EACH PERIOD OF TWELVE MONTHS, COMMENCING
ON THE FIRST DAY OF JULY OF EACH SUCH PERIOD, IN WHICH OCCURS ANY PART OF THE
TERM OF THIS LEASE OR SUCH OTHER PERIOD OF TWELVE MONTHS OCCURRING DURING THE
TERM OF THIS LEASE AS HEREAFTER MAY BE DULY ADOPTED AS THE FISCAL YEAR FOR REAL
ESTATE TAX PURPOSES OF THE CITY OF NEW YORK.
6
(E)
THE TERM "ESCALATION STATEMENT" SHALL MEAN A STATEMENT SETTING FORTH THE
AMOUNT PAYABLE BY TENANT FOR A SPECIFIED TAX YEAR (AS THE CASE MAY BE) PURSUANT
TO THIS ARTICLE 3, WHICH SHALL BE DELIVERED WITH A COPY OF THE APPLICABLE TAX
BILL ON WHICH THE ESCALATION STATEMENT IS BASED UPON THE WRITTEN REQUEST FROM
TENANT.
3.02
A.
AFTER THE BASE YEAR, TENANT SHALL PAY AS ADDITIONAL RENT FOR
EACH TAX YEAR A SUM (HEREINAFTER REFERRED TO AS "TENANT'S TAX PAYMENT") EQUAL TO
TENANT'S TAX PROPORTIONATE SHARE OF THE AMOUNT BY WHICH THE TAXES FOR SUCH TAX
YEAR EXCEED THE BASE TAX. TENANT'S TAX PAYMENT FOR EACH TAX YEAR SHALL BE DUE
AND PAYABLE IN MONTHLY INSTALLMENTS, IN ADVANCE, ON THE FIRST DAY OF EACH MONTH