INCLUDING, WITHOUT LIMITATION, PURSUANT TO THE §421-A TAX EXEMPTION PROGRAM,
INSURANCE, MORTGAGES, OR ANY OTHER BENEFITS, WHETHER SIMILAR OR DISSIMILAR TO
THOSE ENUMERATED; (III) THE COMPLIANCE OF THE OPTION SUBJECT PREMISES, IN ITS
CURRENT OR ANY FUTURE STATE WITH APPLICABLE ZONING ORDINANCES AND THE ABILITY TO
OBTAIN A VARIANCE IN RESPECT OF THE OPTION SUBJECT PREMISES' NONCOMPLIANCE, IF
ANY, WITH SAID ZONING ORDINANCES; (IV) THE AVAILABILITY OF ANY REFINANCING FOR
THE PURCHASE, ALTERATION, REHABILITATION OR OPERATION OF THE OPTION SUBJECT
PREMISES FROM ANY SOURCE, INCLUDING BUT NOT LIMITED TO STATE, CITY OR FEDERAL
GOVERNMENT OR ANY INSTITUTIONAL LENDER; (V) THE CURRENT OR FUTURE USE OF THE
OPTION SUBJECT PREMISES; (VI) THE PRESENT AND FUTURE CONDITION AND OPERATING
STATE OF ANY AND ALL MACHINERY OR EQUIPMENT ON THE OPTION SUBJECT PREMISES
EXCEPT AS HEREIN SET FORTH, AND THE PRESENT OR FUTURE STRUCTURAL AND PHYSICAL
CONDITION OF THE BUILDING OR ITS SUITABILITY FOR REHABILITATION OR RENOVATION;
(VII) THE PRESENCE OR ABSENCE OF ANY RULES OR NOTICES OF VIOLATIONS OF LAW
ISSUED BY ANY GOVERNMENTAL AUTHORITY; (VIII) THE LAYOUT, LEASES, RENTS, INCOME,
EXPENSES OR OPERATION OF THE OPTION SUBJECT PREMISES; (IX) COMPLIANCE OR
NONCOMPLIANCE WITH ANY APPLICABLE RENT LAWS, REGULATIONS OR GUIDELINES; AND IS
THOROUGHLY ACQUAINTED WITH THEIR CONDITION AND AGREES TO PURCHASE THEM (IF THE
OPTION IS EXERCISED) IN THE CONDITION REQUIRED UNDER THE PURCHASE AND SALE
AGREEMENT. THE OWNER IS NOT LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR
WRITTEN STATEMENTS, PERTAINING TO THE OPTION SUBJECT PREMISES OR THE OPERATION,
LAYOUT, EXPENSES, CONDITION, INCOME, LEASES OR RENTS FURNISHED BY ANY REAL
ESTATE BROKER, AGENT, EMPLOYEE, OR OTHER PERSON, UNLESS THE SAME ARE
SPECIFICALLY SET FORTH HEREIN.
16
7.
OPERATIONS PENDING EXECUTION OF PURCHASE AND SALE AGREEMENT.
7.1
Owner agrees that between the date hereof and the full execution
and delivery of the Purchase and Sale Agreement:
(a)
Except as expressly set forth in this Section 7.1(a), Owner shall
not enter into or extend, renew, replace, otherwise modify, terminate or cancel
any Lease or any license or other occupancy agreement. Owner shall use
commercially reasonable efforts to lease the residential, retail and community
facility units in the Building (Leases of retail space and Leases of community
facility space are collectively referred to as "Commercial Leases"), which
Leases may be entered into by Owner on the following terms and conditions
(collectively, the "Leasing Guidelines"): (i) for each residential Lease, (A)
the form of residential lease attached hereto as Exhibit "G" shall be utilized;
(B) the Lease shall be for either a one (1) or two (2) year term; (C) the tenant
shall be a third-party tenant that shall have a credit score of no less than 650
or, alternatively, the obligations of such tenant shall be guaranteed by another
individual with a credit score of at least 650; (D) the proposed tenant has no
negative record in housing court and has not filed any complaints with the
Division of Housing and Community Renewal of New York City; (E) the monthly
rental