Document:

Exhibit 10.1

 

AGREEMENT
OF SALE AND PURCHASE

 

 

between

 

	
  THE NEW
  YORK TIMES COMPANY,

  
	
   

  	
  Seller

  

 

and

 

	
  TISHMAN
  SPEYER DEVELOPMENT, L.L.C.,

  
	
   

  	
  Purchaser

  

 

 

Date: November 7,
2004

 

 

Premises:

 

229 West
43rd Street

New York,
New York 10036

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE 1 INCLUSIONS IN
  SALE AND EXCLUSIONS

  	
   

  
	
  ARTICLE 2 PURCHASE
  PRICE

  	
   

  
	
  ARTICLE 3
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
  ARTICLE 4 STATE OF
  TITLE OF PROPERTY

  	
   

  
	
  ARTICLE 5 TITLE
  INSURANCE AND ABILITY OF SELLER TO CONVEY

  	
   

  
	
  ARTICLE 6 CLOSING COSTS

  	
   

  
	
  ARTICLE 7 REAL ESTATE
  TAX PROTESTS

  	
   

  
	
  ARTICLE 8 ACKNOWLEDGMENTS
  OF PURCHASER; CONDITION OF PROPERTY

  	
   

  
	
  ARTICLE 9 AS IS
  CONDITIONS, ACCESS, ETC.

  	
   

  
	
  ARTICLE 10 CASUALTY
  AND EMINENT DOMAIN

  	
   

  
	
  ARTICLE 11
  ASSESSMENTS

  	
   

  
	
  ARTICLE 12 CLOSING
  ADJUSTMENTS

  	
   

  
	
  ARTICLE 13 CLOSING
  DOCUMENTS; OBLIGATIONS OF PURCHASER AND SELLER AT CLOSING

  	
   

  
	
  ARTICLE 14 VIOLATIONS

  	
   

  
	
  ARTICLE 15 SALES TAX

  	
   

  
	
  ARTICLE 16 UNPAID
  TAXES

  	
   

  
	
  ARTICLE 17 THE
  CLOSING

  	
   

  
	
  ARTICLE 18 NOTICES

  	
   

  
	
  ARTICLE 19 DEFAULT

  	
   

  
	
  ARTICLE 20
  CONDITIONS; SURVIVAL

  	
   

  
	
  ARTICLE 21 SUCCESSORS
  AND ASSIGNS

  	
   

  
	
  ARTICLE 22 BROKERS

  	
   

  
	
  ARTICLE 23 ESCROW

  	
   

  
	
  ARTICLE 24
  MISCELLANEOUS

  	
   

  

 

i

 

SCHEDULES

 

	
  A

  	
  Description of Land

  	
   

  
	
   

  	
   

  	
   

  
	
  B

  	
  Leases, Subleases and Occupancy Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  C

  	
  Contract Survey

  	
   

  
	
   

  	
   

  	
   

  
	
  D

  	
  Covenants, Restrictions, Easements, and
  Agreements of Record And Other Matters

  	
   

  
	
   

  	
   

  	
   

  
	
  E

  	
  Excluded Personal Property

  	
   

  
	
   

  	
   

  	
   

  
	
  F

  	
  Title Exceptions in Contract Title Report to
  be Omitted by Seller

  	
   

  
	
   

  	
   

  	
   

  
	
  G

  	
  Pending Litigation Not Covered by Insurance

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1

  	
  Deed

  	
   

  
	
   

  	
   

  	
   

  
	
  2

  	
  Bill of Sale

  	
   

  
	
   

  	
   

  	
   

  
	
  3

  	
  Assignment of Licenses and/or Permits

  	
   

  
	
   

  	
   

  	
   

  
	
  4

  	
  Assignment of Warranties and Guarantees

  	
   

  
	
   

  	
   

  	
   

  
	
  5

  	
  Post-Closing Adjustment Letter

  	
   

  
	
   

  	
   

  	
   

  
	
  6

  	
  FIRPTA Certificate

  	
   

  
	
   

  	
   

  	
   

  
	
  7

  	
  Escrow Letter

  	
   

  
	
   

  	
   

  	
   

  
	
  8

  	
  NYT Occupancy Lease

  	
   

  
	
   

  	
   

  	
   

  
	
  9

  	
  Asahi Shimbun America, Inc. Lease

  	
   

  
	
   

  	
   

  	
   

  
	
  10

  	
  Sardi Easement

  	
   

  

 

ii

 

INDEX OF
DEFINED TERMS

 

	
  Additional
  Property

  	
   

  
	
  Adjustment Date

  	
   

  
	
  Agreement

  	
   

  
	
  Broker

  	
   

  
	
  Building

  	
   

  
	
  Business Day

  	
   

  
	
  Cabling

  	
   

  
	
  Cash Balance

  	
   

  
	
  Clause
  (ii) Objection

  	
   

  
	
  Closing

  	
   

  
	
  Closing Date

  	
   

  
	
  Code

  	
   

  
	
  Contract Survey

  	
   

  
	
  Contract
  Title Report

  	
   

  
	
  Deed

  	
   

  
	
  Defined Terms

  	
   

  
	
  Deposit

  	
   

  
	
  Escrow Agent

  	
   

  
	
  Escrow Letter

  	
   

  
	
  Federal
  Reserve Funds

  	
   

  
	
  Form TP-584

  	
   

  
	
  Governmental
  Authority

  	
   

  
	
  Initial
  Closing Date

  	
   

  
	
  Land

  	
   

  
	
  Leases

  	
   

  
	
  Maximum Amount

  	
   

  
	
  NYT
  Occupancy Lease

  	
   

  
	
  Permitted
  Encumbrances

  	
   

  
	
  Post-Closing Adjustment
  Letter

  	
   

  
	
  Property

  	
   

  
	
  Purchase Price

  	
   

  
	
  Purchaser

  	
   

  
	
  Purchaser’s
  Title Report

  	
   

  
	
  RPT Return

  	
   

  
	
  Seller

  	
   

  
	
  Seller’s FF&E

  	
   

  
	
  Subsequent Title Objection

  	
   

  
	
  Tax Law

  	
   

  
	
  Title Company

  	
   

  
	
  Violations

  	
   

  

 

iii

 

AGREEMENT
OF SALE AND PURCHASE (this “Agreement”) is made
and entered into as of November 7, 2004, by and between THE NEW YORK TIMES
COMPANY, a New York corporation, having an office at 229 West 43rd
Street, New York, New York 10036 (“Seller”), and
TISHMAN SPEYER DEVELOPMENT, L.L.C., a Delaware limited liability company,
having an office at c/o Tishman Speyer Properties, L.P., 520 Madison Avenue, 6th
Floor, New York, New York 10022 (“Purchaser”).

 

W
I  T  N  E  S  S  E  T  H
:

 

Seller hereby agrees to
sell and convey to Purchaser, and Purchaser hereby agrees to purchase from
Seller, upon the terms and conditions hereinafter set forth, the “Property”
(as such term is defined in Article 1 hereof).

 

NOW THEREFORE, in
consideration of the premises and of the mutual covenants and agreements
hereinafter set forth, and subject to the terms, provisions and conditions
hereof, Seller and Purchaser hereby covenant and agree as follows:

 

ARTICLE 1

INCLUSIONS IN SALE AND EXCLUSIONS

 

1.1                                 The
term “Property” shall mean the following:

 

1.1.1                        The fee
estate in and to the land described in Schedule “A”
annexed hereto (the “Land”) and all of Seller’s right,
title and interest, if any, in and to all easements, rights of way, licenses,
privileges, servitudes and other rights, if any, running with the Land.

 

1

 

1.1.2                        All of
Seller’s right, title and interest in and to the buildings, structures and
improvements, together with the tenements, hereditaments and appurtenances
thereto belonging or in any way appertaining, now erected or situate on the
Land (collectively, the “Building”).  The Building’s street address is 229 West 43rd
Street, New York, New York.

 

1.1.3                        All of
Seller’s right, title and interest in and to any fixtures, equipment and
machinery affixed to the Building and used solely for the operation of the
Building (such as, by way of example, HVAC, plumbing, electrical, mechanical
and fire safety fixtures, machinery and equipment, fire safety equipment) (the “Additional Property”), but excluding the
following items (“Seller’s FF&E”): any
and all fixtures, equipment, machinery and personal property used in the
conduct of Seller’s business (such as, by way of example, office equipment;
computer and telecommunications equipment, including satellite dishes, antenna
and related equipment; trade fixtures). Seller’s FF&E shall include any
cabling, communications wiring and lines and similar items (“Cabling”).  Notwithstanding the foregoing, Purchaser
agrees and acknowledges that while Seller may elect in its sole discretion to
remove all or selected items of Seller’s FF&E from the Property on or
before the Possession Delivery Date (as hereinafter defined), Seller shall be
under no obligation to do so and may leave and abandon Seller’s FF&E at the
Property if it elects not to remove such Seller’s FF&E.  This Section 1.1.3 shall survive
Closing.

 

1.1.4                        All right,
title and interest of Seller, if any, in and to any land lying in the bed of
any street, road or avenue, opened or proposed, in front of or adjoining the
Land, to the center line thereof, and any strips and gores adjacent to the
Land, and all right, title and interest of Seller in and to any award made or to
be made in lieu thereof and in and to

 

2

 

any unpaid award for damage to the Land and Building
by reason of change of grade of any street.

 

1.1.5                        All of
Seller’s right, title and interest in and to (a) any assignable guaranties,
warranties, certificates, rights and privileges relating to the Building or the
Additional Property in effect on the Closing Date (as hereinafter defined), (b)
any assignable licenses and permits relating to the Land, the Building or the
Additional Property in effect on the Closing Date, (c) any drawings, plans or
specifications relating to the Building or the Additional Property to the
extent in Seller’s possession or control on the Closing Date, (d) any site
plans, surveys, environmental reports, architectural renderings, engineering
plans and studies and floor plans relating to the Land, the Building or the
Additional Property to the extent in Seller’s possession or control on the
Closing Date, (e) all utility, service, maintenance and other similar contracts
relating to the Land, the Building or the Additional Property in effect on the
Closing Date, and (f) all books and records containing the operating expenses
of the Property for the preceding five (5) years to the extent in Seller’s
possession or control on the Closing Date.

 

1.2                                 The
term “Property” shall exclude the following:

 

1.2.1                        Any
existing cause of action, or damage claim, of Seller.

 

1.2.2                        All rights
and interests of Seller as owner of the Property arising prior to the Closing
(including but not limited to, tax refunds, casualty or condemnation proceeds,
utility deposits, rents or other income from the Property) attributable to
periods prior to Closing.

 

1.2.3                        Seller’s
FF&E.

 

1.2.4                        The items
listed on Schedule ”E” annexed hereto.

 

3

 

ARTICLE 2

PURCHASE PRICE

 

2.1                                 Purchase Price.  The purchase price for the Property to be
paid by Purchaser to Seller shall be the amount of One Hundred Seventy-Five
Million Dollars ($175,000,000) (the “Purchase Price”).

 

2.2                                 Payment of Purchase Price. Purchaser
agrees to pay the Purchase Price to Seller as follows:

 

2.2.1                        Deposit.  Twenty Million Dollars ($20,000,000) (the “Deposit”) paid simultaneously herewith by wire transfer
of immediate clearance “Federal Reserve Funds” (as such term is hereinafter
defined) to Piper Rudnick LLP, as escrow agent.   The proceeds of such Deposit and all
interest accrued thereon shall be held in escrow and shall be payable in
accordance with Article 23 hereof.

 

2.2.2                        Payment at Closing.  The balance of the Purchase Price (the “Cash Balance”) shall be paid by Purchaser to Seller
at the Closing.  The Cash Balance shall
be paid by wire transfer of immediate clearance Federal Reserve Funds to one or
more recipients as directed by Seller by notice to Purchaser at least one (1) “Business
Day” prior to the “Closing Date” (as such terms are defined in Article 17
hereof).  As used herein, the term “Federal Reserve Funds” shall be deemed to
mean the receipt by a bank or banks in the continental United States designated
by Seller of U.S. dollars in form that does not require further clearance, and
may be applied at the direction of Seller by such recipient bank or banks on
the day of receipt of advice that such funds have been wire transferred.

 

4

 

ARTICLE 3

REPRESENTATIONS AND WARRANTIES

 

3.1                                 Representations of Seller.  Seller hereby represents and warrants to
Purchaser that as of the date hereof and, as updated by Seller pursuant to Section 13.1.9
hereof, as of the Closing Date:

 

3.1.1                        Leases. 
There are no leases, subleases or any other agreements for the
present or future use or occupancy by any third parties of all or any portion
of the Land or Building (collectively, “Leases”),
except as set forth on Schedule ”B”
annexed hereto.  Schedule ”B”
sets forth a true, correct and complete list of all Leases.  A true and complete copy of the Agreement of
Lease between Seller and Asahi Shimbun America, Inc. is attached hereto as
Exhibit 9.

 

3.1.2                        No Foreign Person.  Seller is not a “foreign person” as such
term is defined in Section 1445 of the Internal Revenue Code of 1986, as
amended (the “Code”), nor will the sale transaction
herein contemplated be subject to Section 897 of the Code or to the
withholding requirements of Section 1445 of the Code.

 

3.1.3                        Litigation.  To the best of Seller’s knowledge, Seller
has received no written notice of any (i) pending condemnation or similar
proceeding affecting the Property or any portion thereof, or (ii) pending legal
action, suit, arbitration, order or judgment, government investigation or
proceeding, in any case affecting the Property or Seller which is reasonably
likely to have a material adverse effect on Seller’s ability to close on the
sale of the Property pursuant to the terms hereof, except for those actions
described on Schedule ”G” annexed hereto.

 

5

 

3.1.4                        Contracts.  Except for
the Permitted Encumbrances, Seller is not a party to any contracts relating to
the ownership, maintenance or operation of the Property which will be binding
upon Purchaser or the Property from and after the Closing.

 

3.1.5                        Additional Property.  The Additional Property is free and clear
of any conditional bills of sale, chattel mortgages, security agreements,
pledge agreements, financing statements and other security interests and any
liens or encumbrances, other than the Permitted Encumbrances.

 

3.1.6                        Environmental and Engineering Reports.  To the actual knowledge of David Thurm
and Herbert Valentine of Seller (“Seller’s Named Officers”) , Seller has
delivered or made available to Purchaser true, correct and complete copies of
all environmental and engineering reports with respect to the Property obtained
or commissioned by Seller or its affiliates during the past 48 months to the
extent the same are in Seller’s possession or control.

 

3.1.7                        Hazardous Substances.  To the actual knowledge of Seller’s Named
Officers, within the last 36 months, Seller has not received written notice
from any Governmental Authority (as hereinafter defined) that the use and
operation of the Property is in violation of any laws or regulations relating
to Hazardous Substances (as defined in any applicable federal, state or local
law, statute, rule, ordinance or regulation). 
Seller has not received any written notice of any pending requests for
information or inquiries from any Governmental Authority or any investigations,
action, suits, claims or proceedings relating to the existence, generation,
release, production, disposal, treatment, emission, migration, transportation
or storage of any Hazardous Substances in or on the Property.

 

6

 

3.2                                 Authority and Binding Effect; No Breach or
Prohibition.  Each party
hereto represents to the other that each person or entity executing this
Agreement by or on behalf of the representing party has the authority to act on
its behalf and to bind it, and that each person or entity executing any closing
documents by or on its behalf, has been or will be duly authorized to act on
its behalf, and that the performance of this Agreement will not be in violation
of its by-laws, charter, operating or partnership agreement, or any law,
ordinance, rule, regulation or order of any governmental body having
jurisdiction, or the provisions of any agreements to which it is a party or by
the terms of which it is bound, and, at the Closing, each party shall furnish
to the other party and to the “Title Company” (as such term is defined in Section 5.1
hereof), reasonably satisfactory evidence of such authority and approval.  This Section shall survive the Closing.

 

3.3                                 Purchaser’s Knowledge; Disclosure.  To the extent that Purchaser has, subsequent
to the date hereof, actual knowledge of any default or any misrepresentation or
incorrect warranty of Seller made in this Agreement, Purchaser shall promptly
notify Seller of same.

 

3.4                                 Disclaimer of Representations and Warranties.  Purchaser acknowledges that except as
expressly provided in this Agreement, neither Seller nor anyone acting for or
on behalf of Seller has made any representation, warranty, or promise to
Purchaser concerning:  (a) the physical
aspect and condition of any portion of the Property; (b) the feasibility or
desirability of the purchase of the Property; (c) the market status, projected
income from or development expenses of the Property; (d) the Property’s
compliance or non-compliance with any requirements of laws; or (e) any other
matter whatsoever with respect to the Property (except as

 

7

 

contained herein),
express or implied, including, by way of description but not limitation, those
of fitness for a particular purpose, tenantability, habitability and use.  Purchaser acknowledges that except as
otherwise expressly provided in this Agreement, it is purchasing the Property
in its currently existing physical condition and in its currently existing
state of repair.

 

3.5                                 Survival.  The representations and warranties of
Seller set forth in Section 3.1, as updated by the certificate of Seller
delivered in accordance with Section 13.1.9, and Seller’s related
indemnification obligations and Purchaser’s rights and remedies at law or in
equity with respect thereto, shall survive the Closing for a period of six (6)
months.

 

3.6                                 Right to Adjourn Closing.  Seller shall have the right to adjourn
the Closing for up to ninety (90) days after receipt of written notice from
Purchaser pursuant to Section 20.1 for the purpose of curing any default,
misrepresentation or incorrect warranty.

 

ARTICLE 4

STATE OF TITLE OF PROPERTY

 

4.1                                 Permitted Encumbrances.  Purchaser shall accept title to the Property
subject to the following (the “Permitted
Encumbrances”):

 

4.1.1                        Any and
all present and future zoning restrictions, regulations, requirements, laws,
ordinances, resolutions and orders of any city, town or village in which the
Property lies, and of all boards, bureaus, commissions, departments and bodies
of any municipal, county, state or federal sovereign or other governmental
authority now or hereafter having or acquiring jurisdiction of the Property or
the use and improvement thereof (such authority is herein called a “Governmental Authority”).

 

8

 

4.1.2                        The state
of facts shown on the survey described on Schedule ”C”
annexed hereto (the “Contract Survey”) and
any other state of facts shown on an accurate survey of the Property, or any
part thereof, provided such other state of facts does not materially adversely
affect Purchaser’s ability to use the Building for its present uses.

 

4.1.3                        The
covenants, restrictions, easements, agreements of record, and other matters
listed on Schedule ”D” annexed hereto.

 

4.1.4                        Any state
of facts a physical inspection of the Property would show.

 

4.1.5                        All
violations and/or notes or notices of violations of law or municipal
ordinances, orders, or requirements noted in or issued by any Governmental
Authority having jurisdiction against or affecting the Property.

 

4.1.6                        Real
estate taxes, assessments, Business Improvement District charges and like
charges for the fiscal year in which the Closing occurs and all fiscal years
thereafter.

 

4.1.7                        Any
exception to coverage by the Title Company (hereinafter defined), provided that
the Title Company insures same against collection out of or enforcement against
the Property.

 

4.1.8                        Any
easement or right of use created in favor of any public utility company or any
other company for electricity, steam, gas, telephone, water or other service to
the Property, and the right to install, use, maintain, repair and replace
wires, cables, terminal boxes, lines, service connections, poles, mains,
facilities and the like, upon, under and across the Property, including without
limitation, any telecommunications agreement affecting the Property, all as in
effect on the date hereof.

 

9

 

4.1.9                        Possible
lack of right to maintain vaults, fences, retaining walls, chutes, cornices,
stoops, trim, and other installations encroaching beyond the property line and
possible variance between the record description and the tax map.

 

4.1.10                  Purchaser
acknowledges the existence of that certain unrecorded easement agreement dated March 7,
1958 granted by Seller in favor of Vincent Sardi and Sardi’s Restaurant and
attached hereto as Exhibit 10 and agrees not to raise such easement as an
objection to title.

 

ARTICLE 5

TITLE INSURANCE AND ABILITY OF SELLER TO CONVEY

 

5.1                                 Title Insurance.  Purchaser agrees to make, promptly after
the signing hereof, application for a title report (“Purchaser’s Title Report”) from Chicago
Title Insurance Company (the “Title Company”).
Purchaser acknowledges receipt of a copy of the title commitment
No. 3104-00760 of Chicago Title Insurance Company dated September 2,
2004 (the “Contract Title Report”) and
the Contract Survey.  Purchaser agrees to
pay any update of the Contract Survey ordered or arranged for by or at the
request of Purchaser. Purchaser acknowledges and agrees that Purchaser has no
objection to the Permitted Encumbrances and the Permitted Encumbrances shall
remain and Purchaser shall be obligated to accept title subject to same.
Purchaser shall deliver to Seller’s attorneys, Piper Rudnick LLP, 1251 Avenue
of the Americas, New York, New York 10020, Attention:  Martin D. Polevoy, Esq., a copy of Purchaser’s
Title Report and, if Purchaser elects to obtain an updated Contract Survey,
such updated Contract Survey.  If, at or
prior to the Closing Date, the Title Company shall deliver to Purchaser and/or
Seller’s attorneys any update or revision to the Contract Title Report or the
Purchaser’s Title Report which discloses additional liens, encumbrances or
other title exceptions which are not

 

10

 

Permitted
Encumbrances, then any such additional liens, encumbrances or other title
exceptions shall be deemed objected to by Purchaser (unless otherwise waived by
Purchaser in writing) and shall constitute a “Subsequent
Title Objection”.  In the event there
is a Subsequent Title Objection which is not waived by Purchaser, and which
Seller is unable to remedy prior to the Closing Date, Purchaser hereby grants
to Seller a reasonable adjournment of the Closing Date not to exceed thirty
(30) days during which time Seller may attempt to remedy same.

 

5.2                                 Title Objections.  If there are any Subsequent Title
Objections which are not waived in accordance with the provisions of Section 5.1,
which (i) were caused by, resulted from or arose out of a grant by any person
or entity (other than Purchaser) of a mortgage or other security interest
affecting the Property, or the performance of work on behalf of any person or
entity (other than Purchaser) upon all or any portion of the Property, then
Seller shall remove such Subsequent Title Objections; or (ii) are not of the
type described in clause (i) of this sentence, but are  removable by the payment of an ascertainable
sum not to exceed in the aggregate one percent (1.0%) of the Purchase Price
(the “Maximum Amount”), then Seller shall
cause such Subsequent Title Objections to be removed.  If Seller fails to remove any Subsequent
Title Objection(s) in accordance with the provisions of the immediately
preceding sentence, or if there exist any Subsequent Title Objection(s) which
Seller is not obligated to remove pursuant to clause (ii) of the immediately
preceding sentence because the payment of funds in excess of the Maximum Amount
would be required to cure the same (a “Clause (ii)
Objection”), Purchaser, nevertheless, may elect (at or prior to  Closing) to consummate the transaction
provided for herein subject to any such Subsequent Title Objection(s) as may
exist as of the Closing Date, with a credit 
(in the event of any Clause (ii) Objections) allocated against the Cash
Balance payable at the Closing equal to the sum necessary to remove such Clause
(ii) Objections, not to

 

11

 

exceed the Maximum
Amount; provided, however, if Purchaser makes such election, Purchaser shall not
be entitled to any other credit, nor shall Seller bear any further liability,
with respect to any Clause (ii) Objections, but Seller shall remain fully
liable for the cost of removing any Subsequent Title Objection(s) of the type
described in clause (i) of the immediately preceding sentence.  If Purchaser shall not so elect, Purchaser
may terminate this Agreement and Seller’s sole liability thereafter shall be to
cause the Deposit, together with any interest earned thereon while in escrow,
to be refunded to Purchaser,  and, upon
the return of the Deposit and any such interest, this Agreement shall be
terminated, and the parties hereto shall be relieved of all further obligations
and liability under this Agreement, other than with respect to the provisions of
this Agreement which expressly survive a termination of this Agreement.

 

5.3                                 No Further Action.  Except as expressly set forth in Sections
5.1 and 5.2 hereof, nothing contained in this Agreement shall be deemed to
require Seller to take or bring any action or proceeding or any other steps to
remove any title objections, or to expend any moneys therefor, nor shall
Purchaser have any right of action against Seller, at law or in equity, for
Seller’s inability to convey title in accordance with the terms of this
Agreement.

 

ARTICLE 6

CLOSING COSTS

 

6.1                                 Purchaser’s Obligations.  Purchaser shall pay the costs of examination
of title and any owner’s policy of title insurance to be issued insuring
Purchaser’s title to the Property, as well as all other title charges, survey
fees, and any and all other costs or expenses incident to the recordation of
the “Deed” (as hereinafter defined).

 

6.2                                 Seller’s Obligations.  Seller shall pay the following amounts
payable in connection with the transfer of the Deed:

 

12

 

(i)                         the
amount imposed pursuant to Article 31 of the New York State Tax Law (the “Tax Law”); and

 

(ii)                      the amount
due in connection with the Real Property Transfer Tax imposed by Title 11
of Chapter 21 of the Administrative Code of the City of New York.

 

6.3.                              Other Costs.  All other closing costs shall be allocated to
and paid by Seller and Purchaser in accordance with the manner in which such
costs are customarily borne by such parties in sales of office buildings in New
York County, State of New York; provided, however, that each party shall bear
its own attorneys’ fees.  Any dispute
between Seller and Purchaser as to which party customarily bears any such
closing cost (other than either party’s own attorney’s fees) may be submitted
by either party for resolution to the president of the Real Estate Board of New
York, Inc., whose determination shall be binding upon the parties, provided,
however, that in no event shall the Closing Date be adjourned by reason of the
submission of any such dispute to the Real Estate Board of New York, Inc.

 

ARTICLE 7

REAL ESTATE TAX PROTESTS

 

7.1                                 All
real estate assessment protests and proceedings affecting the Property for the
tax year in which the Closing occurs and prior years, if any, will be
prosecuted under Seller’s direction and control.  In the event of any reduction in the assessed
valuation of the Property for any such fiscal year, the net amount of any tax
savings, shall (a) with respect to fiscal years ending prior to the Closing,
be payable to Seller; and (b) with respect to the fiscal year in which the
Closing shall occur, after deduction of customary attorneys’ fees and
reasonable third party, out-of-pocket expenses, be adjusted between Seller and
Purchaser as of the “Adjustment Date” (as defined in Section 12.1).  If a

 

13

 

reduction in the
assessed value of the Property is granted for a fiscal year prior to the year
in which the Closing occurs, and such reduction is in the form of a credit for
taxes payable at or after Closing, Seller shall be entitled to receive a sum
equal to such credit when granted. 
Purchaser shall notify Seller of the fact that Purchaser has been
granted a reduction in the real estate assessment for the Property with respect
to the fiscal year in which the Closing occurs within ten (10) days after
Purchaser is notified of the same in writing. 
This Section shall survive the Closing.

 

ARTICLE 8

ACKNOWLEDGMENTS OF PURCHASER; CONDITION OF PROPERTY

 

8.1                                 Analysis and Evaluation of the Property.  Before entering into this Agreement,
Purchaser acknowledges that it has made its own analysis and evaluation of the
Property, the operation, the income potential, profits and expenses thereof,
its condition and all other matters affecting or relating to the transaction
underlying this Agreement as Purchaser deemed necessary, including, without
limitation, the layout, square footage, potential rents and income, expenses
and operation of the Property and the availability and/or amount of air rights
with respect to the Property (and acknowledges and agrees that Seller has not
made any representations and warranties with respect to the foregoing).  In entering into this Agreement, Purchaser
has not been induced by and has not relied upon any representations,
warranties, statements or covenants, express or implied, made by Seller or any
agent, employee or other representative of Seller, which are not expressly set
forth in this Agreement.

 

8.2                                 No Effect on Purchaser’s Obligations.  Purchaser further acknowledges that its
covenants, agreements, and obligations under this Agreement shall not be
excused or modified by: (i) the physical condition of the Building or personal
property, or its fitness, merchantability or suitability for any use or
purpose, (ii) the  potential rents, income
or expenses of the Property,

 

14

 

(iii) the
compliance or non-compliance with any laws, codes, ordinances, rules or
regulations of any Governmental Authority and any violations thereof existing
or subsequently imposed, (iv) the environmental condition of the Property or
the Property’s compliance or non-compliance with any laws, codes, ordinances,
rules or regulations of any Governmental Authority relating to the presence,
use, storage, handling or removal of any hazardous substances, (v) the current
or future use of the Property, including, but not limited to, the Property’s
use for commercial, retail, industrial, office, residential, hotel, or other purposes,
(vi) the current or future real estate tax liability, assessment or valuation
of the Property, (vii) the availability or non-availability of any benefits
conferred by Federal, state or municipal laws, whether for subsidies, special
real estate tax treatment or other benefits of any kind, (viii) the
availability or unavailability of any licenses, permits, approvals or
certificates which may be required in connection with the operation of the
Property,  (ix) the compliance or non-compliance
of the Property, in its current zoning or a variance with respect to the
Property’s non-compliance,  if any, with
any zoning ordinances, except as herein specifically set forth, or (x) the
conformity of the use of the Property with any certificate of occupancy.

 

8.3                                 No Other Representations.  Purchaser hereby expressly acknowledges
that except as expressly provided herein, neither Seller nor anyone acting for
or on behalf of Seller has made any representation, warranty, or promise to
Purchaser concerning any of the foregoing, nor: 
(a) the physical aspect and condition of any portion of the Property;
(b) the feasibility or desirability of the purchase of the Property; (c) the
market status, projected income from or development expenses for the Property;
or (d) any other matter whatsoever with respect to the Property (except as
contained herein), express or implied, including, by way of description, but
not limitation, those of fitness for a particular purpose, tenantability,
habitability and use and

 

15

 

Purchaser
acknowledges and agrees to take the Property “as is,” in its currently existing
physical condition and state of repair, subject to ordinary use, wear, tear and
natural deterioration, and subject to casualty and condemnation as more
particularly set forth in Article 10 hereof.

 

8.4                                 Outside Representations.  Seller is not liable or bound in any
manner by any verbal or written statements, representations, real estate “set-ups,”
offering memorandum or information pertaining to the Property or its physical
condition, layout, footage, potential rents and income, expenses, operation,
availability and amount of air rights with respect to the Property or any other
matter or thing furnished by any agent, employee, servant, or any other person,
unless specifically set forth in this Agreement.  Purchaser hereby waives, to the extent
permitted by law, any and all implied warranties.

 

8.5                                 Environmental Investigation of the Property.  Purchaser acknowledges that it has had an
opportunity to conduct its own environmental investigation of the Property and
the property adjacent to the Property. 
Purchaser is aware of the environmental conditions affecting or related
to the Property and Purchaser agrees to take the Property subject to such
environmental conditions. If the Closing occurs, Purchaser hereby releases
Seller from any obligation to pay any and all environmental costs and
liabilities relating to the Property. 
This Section shall survive the Closing.

 

8.6                                 Confidentiality.  Purchaser acknowledges that all
information regarding the Property furnished (or to be furnished) to Purchaser
is and has been so furnished on the following conditions:

 

(i)                                     Purchaser
shall use the information solely for purposes of evaluating the Property and
consummating the transaction contemplated in this Agreement; and

 

16

 

(ii)                                  Purchaser
shall, subject to the terms of Section 8.7, use its best efforts to
maintain the confidentiality of such information.

 

8.7                                 Limited Disclosure.  Purchaser shall, and shall cause its
directors, officers and other personnel, and its agents, employees and
representatives to, hold in strict confidence and not disclose to any other
party without the prior written consent of Seller, any of the information
regarding the Property delivered, provided or furnished to Purchaser or any of
its agents, representatives or employees. 
Notwithstanding anything to the contrary hereinabove set forth, Purchaser
may disclose such information only: (i) on a “need-to-know” basis to its
employees, partners, members or professional firms serving it in connection
with this transaction, or to any potential lenders or investors, but Purchaser
shall require such parties to hold all such information in strict confidence,
and not to disclose such information to any other party (without the prior
written consent of Seller); (ii) to any other party, subject to Seller’s
consent, which consent shall not be unreasonably withheld or delayed; and
(iii) to any governmental agency if such agency requires such disclosure
in order for Purchaser to comply with applicable laws or regulations.

 

8.8                                 Return of Information.  In the event the Closing does not occur
for any reason and this Agreement is terminated, Purchaser shall promptly
return to Seller all copies of all such information without retaining any copy
thereof, except such as must be retained by any professionals to whom such
information was disclosed in accordance with this Article 8 in order to
comply with their professional obligations. 
Purchaser may also disclose the terms of this Agreement to any other
party approved by Seller, as long as prior to such disclosure such party agrees
to be bound by the provisions of this Article 8 by an instrument
reasonably acceptable to Seller in form and content.

 

17

 

8.9                                 Survival.   The provisions of this Article 8 shall
terminate at the Closing provided, however, that if the Closing does not occur,
the provisions of this Article 8 shall survive the termination of this
Agreement.

 

ARTICLE 9

AS IS CONDITIONS, ACCESS, ETC.

 

9.1                                 Property Condition and Operation.  It is acknowledged and agreed that
Purchaser intends to substantially renovate all or substantial portions of the
Building and/or demolish a substantial portion of the Building.  Purchaser agrees to accept the Building in
its absolutely “as is”, “where is” 
condition on the Closing Date.

 

9.2                                 Access to the Property.  Seller agrees to afford Purchaser
reasonable access to the Property prior to the Closing, at reasonable times
upon reasonable advance notice, provided that Purchaser shall not enter any
portion of the Property unless accompanied by a representative of Seller.  Purchaser specifically agrees that neither
it, nor its employees or agents, will communicate directly with Seller’s
employees, other than Herbert Valentine. 
Notwithstanding  anything to the
contrary contained herein, Seller shall have the right to prohibit Purchaser
from having access to certain areas of the Building if and to the extent Seller
determines, in its sole and absolute discretion, that its business and/or
security needs so dictate.  Purchaser
agrees to indemnify and hold harmless Seller and its partners, directors,
officers, principals, shareholders, agents and employees from and against any
claim arising from or in connection with Purchaser’s access to the Property
pursuant to this Section 9.2, including without limitation, any mechanic’s
and materialmen’s liens, together with all reasonable costs, expenses and
liabilities in connection with each such claim or action or proceeding brought
thereon, including without limitation, all reasonable attorneys’ fees and
expenses.  In case any action be brought
against Seller and/or its

 

18

 

partners,
directors, officers, principals, shareholders, agents and/or employees by
reason of any such claim, Purchaser, upon notice from Seller, shall resist and
defend such action or proceeding (by counsel reasonably satisfactory to
Seller).  Purchaser’s indemnity and hold
harmless provision pursuant to this Section 9.2 shall survive the
termination or expiration of this Agreement by closing or otherwise.

 

9.3                                 Leases. 
From the date hereof until the Closing Date, Seller shall not enter
into any new Leases or renew, extend or replace any existing Lease.

 

9.4                                 Insurance.  From the date hereof until the Closing
Date, Seller shall maintain, as its sole cost and expense, substantially the
same insurance coverage with respect to the Property as it maintains on the
date hereof.

 

ARTICLE 10

CASUALTY AND EMINENT DOMAIN

 

10.1                           Casualty.  In the event any loss or damage to the
Property occurs by reason of fire or other casualty prior to the Closing, the
following shall apply:

 

10.1.1

 

(a)                                  If
the reasonable cost to repair the damage to the Property exceeds an amount
equal to fifty percent (50%) of the Purchase Price, Purchaser, by written
notice to Seller (effective only if such notice is delivered within fifteen
(15) days after Purchaser receives notice of the casualty from Seller (“Casualty
Notice”), may elect to cancel this Agreement prior to the Closing Date by
delivery of the Purchaser’s Casualty Termination Notice (as hereinafter
defined) to Seller and upon delivery of the Purchaser’s Casualty Termination
Notice, this Agreement shall terminate. 
In the

 

19

 

event Purchaser does not elect to send the Purchaser’s
Casualty Termination Notice, then Seller shall have twenty-four (24) days from
the giving of the Casualty Notice to elect to terminate this Agreement by
written notice to Purchaser (“Seller’s Casualty Termination Notice”).  In the event that Seller sends the Seller’s
Termination Notice to Purchaser, then Purchaser shall have the right to void
the delivery of the Seller’s Casualty Termination Notice by delivering to
Seller a notice (“Purchaser’s Reinstatement Notice”) to Seller within five (5)
Business Days from the date of the Seller’s Termination Notice stating that
Purchaser is irrevocably withdrawing its Purchaser’s Casualty Termination
Notice and shall proceed to close title to the Property on the Closing Date (as
hereinafter provided) to the same extent as if the Purchaser’s Casualty
Termination Notice was never delivered. 
In the event the Purchaser’s Reinstatement Notice is given by Purchaser,
the Closing Date shall automatically be deemed to be thirty (30) Business Days
after the date of the Purchaser’s Reinstatement Notice.  In the event of any disagreement between
Seller and Purchaser as to whether the cost to repair the damage to the
Property exceeds fifty percent (50%) of the Purchaser Price, then such party
disputing same shall send a written notice to the other party setting forth
such dispute within five (5) Business Days after receipt of the Purchaser’s
Casualty Termination Notice or the Seller’s Casualty Termination Notice (as the
case may be), and such disagreement shall be determined by expedited
arbitration in accordance with the expedited arbitration rules of the American
Arbitration Association.

 

(b)                                 In
the event that this Agreement is terminated by either party, the Deposit,
together with any interest accrued thereon, shall be returned to Purchaser,

 

20

 

and upon such payment, this Agreement shall be null
and void and the parties hereto shall be relieved and released of and from any
further liability hereunder and with respect to each other, except with respect
to the provisions of this Agreement which expressly survive the termination of
this Agreement.  In the event Seller
elects to terminate this Agreement but Purchaser voids such termination as set
forth in Section 10.1.1(a), (i) this Agreement shall remain in full
force and effect, (ii) Seller shall pay to Purchaser the amount of any
insurance proceeds to the extent actually collected by Seller in connection
with such fire or other casualty, less the amount of the actual expenses
incurred by Seller in collecting such proceeds, plus the amount of Seller’s
deductible under its casualty policy, and assign to Purchaser (without warranty
or recourse to Seller) Seller’s right to any payments to be made subsequent to
the Closing Date under any casualty insurance policy or policies in effect with
respect to the Property, and (iii) the obligation to enter into the NYT
Occupancy Lease shall be null and void and the parties shall be relieved and
released of and from any obligation and liability with respect to the NYT
Occupancy Lease.  This Section shall
survive the Closing.  .

 

10.1.2                  If the
reasonable cost to repair the same is less than an amount equal to fifty
percent (50%) of the Purchase Price, or if Purchaser or Seller does not elect
to cancel this Agreement pursuant to the foregoing Section 10.1.1, then
(a) Seller shall restore the Property in compliance with all laws and make such
repairs and replacements to return the Property to a usable condition, (b) this
Agreement shall continue in full force and effect, (c) Purchaser shall accept
the Deed upon payment in full of the Purchase Price and without any abatement
of the Purchase Price by reason of such loss or damage, and (d) the NYT
Occupancy Lease

 

21

 

shall remain in full force and effect without any
abatement or setoff of the rent due thereunder by reason of such loss or
damage.  Any insurance proceeds relating
to such fire or other casualty shall be for the account of Seller.

 

10.2                           Eminent Domain.  If prior to the Closing all or any part
of the Property is taken by condemnation or a taking in lieu thereof, the
following shall apply:

 

10.2.1                  In the event a
material part of the Property is taken, Purchaser, by written notice to Seller
(effective only if delivered within fifteen (15) days after Purchaser receives
notice of such taking), may elect to cancel this Agreement prior to the Closing
Date.  In the event that Purchaser shall
so elect, the Deposit, together with any interest accrued thereon, shall be
returned to Purchaser, and upon such payment, this Agreement shall be null and
void and the parties hereto shall be relieved and released of and from any
further liability hereunder and with respect to each other, except with respect
to the provisions of this Agreement which expressly survive the termination of
this Agreement.

 

10.2.2                  In the event a
minor or immaterial part of the Property is taken, or in the event of a change
of legal grade, neither party shall have any right to cancel this Agreement,
and title shall nonetheless close in accordance with this Agreement without any
abatement of the Purchase Price or any liability or obligation on the part of
Seller by reason of such taking; provided, however, that Seller shall, at
Closing, (i) turn over and deliver to Purchaser the amount of any award or
other proceeds of such taking to the extent actually collected by Seller as a
result of such taking, less the amount of the actual expenses reasonably
incurred by Seller in collecting such award or other proceeds and in making
repairs to the Property occasioned by such taking, and (ii) deliver to
Purchaser an assignment (without warranty or recourse to Seller) of Seller’s
right to any such award or

 

22

 

other proceeds which may be payable subsequent to the
Closing Date as a result of such taking.

 

10.2.3                  The term “material
part,” as distinguished from a “minor or immaterial part,” as used herein shall
mean a portion of the Property having a value (based upon an appraisal by an
appraiser acceptable to Seller, subject to Purchaser’s approval, which shall
not be unreasonably withheld or delayed) in excess of ten percent (10%) of the
Purchase Price or any taking, regardless of the value of the Property taken, if
such taking materially and adversely affects access to the Building.

 

10.3                           Survival.  This Article 10 shall survive the
Closing and is intended to be an express provision to the contrary within the
meaning of Section 5-1311 of the General Obligations Law.

 

ARTICLE 11

ASSESSMENTS

 

If on or after the date
of this Agreement, the Property or any part thereof shall be or shall have been
affected by any real estate tax assessment or assessments, then Seller shall
pay such assessments; provided, however, that if such assessments are payable
in installments, then Seller shall pay such installments due prior to the
Closing Date, and Purchaser shall pay such installments due after the Closing
Date.

 

ARTICLE 12

CLOSING ADJUSTMENTS

 

12.1                           Adjustments and Prorations.  The following matters and items shall be
apportioned or adjusted between the parties hereto at the closing of title to
the Property pursuant

 

23

 

to this Agreement
(the “Closing”), as of 12:01 A.M. of the day of the
Closing (the “Adjustment Date”).

 

12.1.1                  Taxes and Assessments.  Real estate taxes, assessments, Business
Improvement District charges and like charges, ad valorem taxes and personal
property taxes, if any, on the basis of the fiscal year for which
assessed.  If the Closing shall occur before
the tax rate or assessment is fixed, the apportionment of such real estate
taxes and personal property taxes, if any, shall be upon the basis of the tax
rate for the immediately preceding year applied to the latest assessed
valuation; however, adjustment will be made upon the actual tax amount, when
determined.  Any discount received for
early payment shall be for the benefit of Seller, and any interest or penalty
assessed for late payment shall be borne by Seller.  Real estate taxes shall be treated on an
annualized basis even if tax payments made in installments are not equal for
each installment period.  Thus, for
example, if the installment for the first half of a fiscal year is paid and is
higher than the second half installment, the proration will be based on payment
of fifty percent (50%) of the aggregate taxes for  such fiscal year.

 

12.1.2                  Deposits.  Tax and utility company deposits, if any,
shall be paid by Purchaser to Seller to the extent transferred to Purchaser
(or, at Seller’s option, Seller shall obtain refunds of the deposits directly
from the taxing authority or utility company, as the case may be).

 

12.1.3                  Water and Sewer Charges.  Water charges and sewer rents on the
basis of the fiscal year, but if there are water meters on the Property,
Seller, to the extent obtainable, shall supply to Purchaser a water meter
reading current through the Adjustment Date, or if not feasible to so read, to
a date not more than thirty (30) days

 

24

 

prior to the Adjustment Date, and the unfixed meter
charges based thereon for the intervening period shall be apportioned on the
basis of such last meter reading.  Upon
the taking of a subsequent actual water meter reading, such apportionment shall
be readjusted and Seller or Purchaser, as the case may be, will promptly
deliver to the other the amount determined to be due upon such
readjustment.  If Seller is unable to
furnish such prior meter reading, any reading subsequent to the Closing will be
apportioned on a per diem basis from the date of such reading immediately prior
thereto, and Seller shall pay the proportionate charges due up to the date of
Closing.

 

12.1.4                  License Fees.  Amounts paid or payable with respect to
assignable licenses and permits, if any, affecting the Property.

 

12.1.5                  Utilities.  Utility charges, including, but not
limited to, electricity, gas, steam, telephone and other utilities, all
prorated based upon the most current bill unless actual readings are obtained
as of the Adjustment Date, in which case such actual readings shall govern, and
each party shall pay the amount billed to it, respectively.

 

12.1.6                  Fuel. 
Proration shall be made of fuel on the Property on the Adjustment
Date, based upon a reading made by Seller’s supplier as close as obtainable to
the Adjustment Date (reasonably adjusted to the quantity present on the
Adjustment Date).  The value thereof
shall be calculated at Seller’s last cost (including sales tax).  If the heating, ventilation or air
conditioning for the Property is provided by a measurable product (e.g. steam
or gas) the adjustment will be based on meter readings prorated, if necessary,
to the Adjustment Date.

 

12.1.7                  Insurance Premiums.  No existing insurance policy shall be
assigned to Purchaser, and no adjustment of any insurance premiums shall be made.

 

25

 

12.1.8                  Survival.  The provisions of this Section 12.1
shall survive the Closing.

 

12.2                           Determination of Closing Adjustments.  The parties hereto agree to make a good
faith effort to determine the adjustments and prorations to be made at Closing,
pursuant to this Article, at least three (3) Business Days prior to the Closing
Date.

 

12.3                           Net Apportionments and Adjustments.

 

12.3.1                  Due Seller.  In the event the net apportionments and
adjustments as provided in Section 12.1 hereof result in a payment due
Seller, then such payment shall be made at Closing in the manner set forth in Section 2.2.2
hereof.   In the event that despite
Purchaser’s good faith efforts, the parties hereto are unable to determine the
amount of the adjustments to be paid to Seller at Closing, if any, on or before
the date which is three (3) Business Days prior to the Closing Date, such
amount may be paid by Purchaser to Seller at the Closing by cashier’s or bank
check, or by a certified check of Purchaser drawn upon a bank which is a member
of The New York Clearing House Association (or any successor organization
thereto), made payable to Seller’s direct order.

 

12.3.2                  Due Purchaser.  In the event the net apportionments and
adjustments as provided in Section 12.1 hereof result in a payment due
Purchaser, then such payment shall be made at Closing by way of a credit
against the Cash Balance.

 

12.4                           Other. 
Except as otherwise provided in this Agreement, the customs
regarding title closings, as recommended by The Real Estate Board of New York,
Inc., shall apply to all apportionments.

 

26

 

ARTICLE 13

CLOSING DOCUMENTS; OBLIGATIONS OF PURCHASER AND SELLER AT CLOSING

 

13.1                           Seller’s Obligations at Closing.  On the Closing Date, Seller shall deliver
or cause to be delivered to Purchaser the following:

 

13.1.1                  A Bargain and
Sale Deed without Covenant against Grantor’s Acts containing the covenant
required by Section 13 of the Lien Law in proper form for recording (the “Deed”), in the form annexed hereto as Exhibit 1.

 

13.1.2                  A Bill of Sale
in the form annexed hereto as Exhibit 2.

 

13.1.3                  An Assignment of
Licenses and/or Permits, in the form annexed hereto as Exhibit 3, and
originals, where available, or copies of any transferable licenses and permits
with respect to the Property to the extent in Seller’s possession.

 

13.1.4                  A duly executed
letter agreement by which Seller and Purchaser agree to correct any errors in
prorations as soon after the Closing as amounts are finally determined, in the
form annexed hereto as Exhibit 5 (the “Post-Closing
Adjustment Letter”).

 

13.1.5                  Evidence
reasonably acceptable to Purchaser and the Title Company authorizing the
consummation by Seller of the transaction contemplated by this Agreement, and
the execution and delivery of documents on behalf of Seller.

 

13.1.6                  The certificate
with respect to FIRPTA compliance in the form of Exhibit 6 annexed hereto.

 

27

 

13.1.7                  The New York
City Department of Finance Real Property Transfer Tax Return (the “RPT Return”) and the New York State Combined Real
Estate Transfer Tax Return and Credit Line Mortgage Certificate (the “Form TP-584”).

 

13.1.8                  A lease between
Purchaser, as landlord, and Seller, as tenant, for the continued occupancy by
Seller of the Building after the Closing, in the form annexed hereto as Exhibit
8 (the “NYT Occupancy Lease”).

 

13.1.9                  A certificate
from Seller restating on and as of the Closing Date the representations and
warranties made by Seller in Section 3.1, except that Seller, in such
certificate, may modify the representations made in Sections 3.1.1, 3.1.3,
3.1.4, 3.1.6 and 3.1.7 to reflect the facts and circumstances that exist on and
as of the Closing Date, provided that any such modifications with respect to
the representations made in Sections 3.1.3, 3.1.6 or 3.1.7 shall not materially
and adversely alter the representations so made as of the date hereof,
provided, however, if such modifications do materially and adversely alter the
representations, then Purchaser shall have the right to terminate this
Agreement.

 

13.1.10  To the extent in the possession of Seller or
it’s agents, (a) any as-built plans and specifications, mechanical, electrical
and plumbing layouts and operating manuals, surveys and certificates of
occupancy relating to the Property, and (b) all books and records containing
the operating expenses of the Property for the preceding 5 years.

 

13.1.11  Such other documents as may be reasonably and
customarily required by the Title Company to consummate the transaction
contemplated by this Agreement, provided such documents do not increase Seller’s
obligations or liabilities or decrease Seller’s rights beyond those set forth
in this Agreement.

 

28

 

13.2                           Purchaser’s Obligations at Closing.  Purchaser shall deliver or cause to be
delivered to Seller on the Closing Date the following:

 

13.2.1                  The Cash
Balance.

 

13.2.2                  Duplicate
originals of the Post-Closing Adjustment Letter, the RPT Return and Form
TP-584, and the NYT Occupancy Lease, each duly executed by Purchaser.

 

13.2.3                  Evidence
reasonably acceptable to Seller and the Title Company authorizing the
consummation by Purchaser of the transaction which is the subject of this
Agreement, and the execution and delivery of documents on behalf of Purchaser.

 

13.2.4                  Such other
documents as may be reasonably and customarily required by the Title Company to
consummate the transaction contemplated by this Agreement.

 

ARTICLE 14

VIOLATIONS

 

Without
limiting the generality of the provisions of this Article 14, Purchaser
agrees to purchase the Property subject to any and all notes or notices of
violations of law, or municipal ordinances, orders or requirements whatsoever
noted in or issued by any federal, state, municipal or other governmental
department, agency or bureau, or any other Governmental Authority having
jurisdiction over the Property (collectively, “Violations”),
or any lien imposed in connection with any of the foregoing, or any condition
or state of repair or disrepair or other matter or thing, whether or not noted,
which, if noted, would result in a violation being placed on the Property.  Seller shall have no duty to remove or comply
with or repair or disrepair any condition, matter or thing, whether or not
noted, which, if noted, would result in a violation being placed on the
Property.  Seller shall have no duty to
remove or comply with or repair any of the aforementioned Violations, liens or
other conditions, and Purchaser shall accept the Property

 

29

 

subject to all such
Violations and liens, the existence of any conditions at the Property which
would give rise to such Violations or liens, if any, and any governmental
claims arising from the existence of such Violations and liens; provided,
however, Seller shall pay all costs, expenses and liabilities in connection
with any claims, actions or proceedings brought in connection with or arising
from the existence of such Violations and liens.

 

ARTICLE 15

SALES TAX

 

Although it is not
anticipated that any sales tax shall be due and payable, Purchaser agrees that
Purchaser shall pay any sales tax assessed in connection with the sale of the
Property to Purchaser and save, defend, indemnify, and hold harmless Purchaser
and its partners, directors, officers, principals, shareholders, agents and
employees from and against any claim arising from or in connection with any
sales tax which may now or hereafter be imposed upon Seller or the Property
with respect to the sale of any personal property, together with all reasonable
costs, expenses and liabilities in connection with each such claim or action or
proceeding brought thereon, including without limitation, all reasonable
attorneys’ fees and expenses.  In case
any action be brought against Seller and/or its partners, directors, officers,
principals, shareholders, agents and/or employees by reason of any such claim,
Purchaser, upon notice from Seller, shall resist and defend such action or
proceeding (by counsel reasonably satisfactory to Seller).  The provisions of this Article 15 shall
survive the termination or expiration of this Agreement by closing or
otherwise.  The parties hereto agree that
no part of the Purchase Price is attributable to personal property.

 

30

 

ARTICLE 16

UNPAID TAXES

 

16.1                           The
amount of any unpaid real estate taxes, assessments, water charges and sewer
rents other than items subject to proration as heretofore provided, which
Seller is obligated to pay and discharge may, at the option of Seller, be
allowed to Purchaser out of the Cash Balance, provided that official bills
therefor with interest and penalties thereon calculated to said date are
furnished by Seller at the Closing.

 

16.2                           Seller
may use any portion of the Cash Balance to satisfy any liens or encumbrances
which exist on the Closing Date which are not Permitted Encumbrances, provided
that Seller delivers to Purchaser at Closing instruments in recordable form
sufficient to satisfy such liens and encumbrances of record, together with the
cost of recording or filing said instruments, or pay such sums or perform such
acts as will enable the Title Company to insure Purchaser that such lien(s)
will not be collected out of the Property, or deposit with Purchaser’s
attorneys reasonably sufficient funds to enable Purchaser’s attorneys to obtain
and record such instruments.

 

16.3                           The
existence of (i) any taxes, assessments, water charges, or sewer rents referred
to in Section 16.1 hereof, or (ii) any other liens or encumbrances, shall
not be deemed Subsequent Title Objections if Seller elects to proceed pursuant
to the provisions of Section 16.2 hereof, provided that Seller complies
with the requirements set forth in Sections 16.1 and 16.2 hereof.

 

16.4                           If
Seller requests within a reasonable time prior to the Closing Date, Purchaser
agrees to provide at the Closing separate certified checks or official cashier’s
checks, which in the aggregate equal the amount of the Cash Balance, in order
to facilitate the satisfaction of any unpaid (and due) real estate taxes,
assessments, water charges or sewer rents, liens and/or encumbrances referred
to in

 

31

 

Section 16.1,
and, if Seller elects to proceed pursuant to the provisions of Section 16.2,
the payment of any liens and encumbrances referred to therein.

 

ARTICLE 17

THE CLOSING

 

17.1                           The Closing.  The sale and purchase of the Property
contemplated by the terms and conditions of this Agreement shall be consummated
at the Closing.

 

17.1.1                  Location and Date of Closing.  Subject to the satisfaction of the terms
and conditions herein set forth, the Closing shall take place at 10:00 A.M., on
December 15, 2004 (the “Initial Closing Date”),
at the offices of Seller’s attorneys, Piper Rudnick LLP, 1251 Avenue of the
Americas, New York, New York 10020 (“Piper Rudnick”), or, at Purchaser’s
option, at the offices of (a) the lending institution providing Purchaser’s
financing for Purchaser’s purchase of the Property, or (b) such lending
institution’s attorneys, provided that in either case such offices are located
in the Borough of Manhattan, New York City and the pre-closing of this
transaction shall take place at Piper Rudnick.

 

17.1.2                  Delivery of Documents.  At the Closing, the Deed shall be
delivered to the Purchaser upon Seller’s receipt of the payments provided for
in Article 2, and the delivery of the documents referred to in Section 13.2.

 

17.2                           Right to Adjourn; Time of Essence.  Subject to Seller’s right to adjourn the
Closing pursuant to Section 3.6, each of Seller and Purchaser shall have
the right to adjourn the Closing to a date on or prior to December 30,
2004, upon prior written notice to the other party.  Time shall be of the essence for Purchaser to
close the purchase of the Property pursuant to this Agreement on or prior to December 30,
2004.  The date on which the Closing
occurs in accordance with this Agreement is herein called the “Closing Date.”

 

32

 

17.3                           Business Days. For purposes of this
Agreement, the term “Business Day” shall mean
all days except Saturdays, Sundays, and all days observed by the Federal
Government or New York State as legal holidays.

 

ARTICLE 18

NOTICES

 

Except as otherwise
provided in this Agreement, any and all notices, elections, demands, requests
and responses permitted or required to be given pursuant to this Agreement
shall be in writing, signed by the party giving the same or by its attorneys,
and shall be deemed to have been duly given and effective upon being:  (i) personally delivered with receipt
for delivery, or (ii) deposited with a nationally recognized express
overnight delivery service (e.g., Federal Express) for next Business Day
delivery with receipt for delivery, in either case to the other party at the
address of such other party set forth below, or at such other address within
the continental United States as may be designated by a notice of change of
address and given in accordance herewith. 
The time period in which a response to any such notice, election, demand
or request must be given shall commence on the date of receipt thereof.  Personal delivery to a party or to any
officer, partner, agent or employee of such party at said address shall be
deemed given and received at the time delivered.  Rejection or other refusal to accept, or
inability to deliver because of changed address of which no notice has been
received, shall also constitute receipt. 
Any such notice, election, demand, request or response shall be
addressed to the respective parties as follows:

 

	
  (a)

  	
  if to Seller, to:

  
	
   

  	
   

  
	
   

  	
  The New York Times
  Company

  
	
   

  	
  229 West 43rd
  Street

  
	
   

  	
  New York, New York
  10036

  

 

33

 

	
   

  	
  Attention: Herbert W. Valentine

  
	
   

  	
   

  
	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  The New York Times
  Company

  
	
   

  	
  229 West 43rd
  Street

  
	
   

  	
  New York, New York
  10036

  
	
   

  	
  Attention: Kenneth A. Richieri, Esq.

  
	
   

  	
  Deputy General Counsel

  
	
   

  	
   

  
	
  and to:

  
	
   

  	
   

  
	
   

  	
  Piper Rudnick LLP

  
	
   

  	
  1251 Avenue of the
  Americas

  
	
   

  	
  New York, New York
  10020

  
	
   

  	
  Attention: Martin D. Polevoy, Esq.

  
	
   

  	
   

  
	
  (b)

  	
  if to Purchaser, to:

  
	
   

  	
   

  
	
   

  	
  Tishman Speyer
  Development, L.L.C.

  
	
   

  	
  c/o Tishman Speyer
  Properties, L.P.

  
	
   

  	
  520 Madison Avenue, 6th
  Floor

  
	
   

  	
  New York, New York
  10022

  
	
   

  	
  Attention: Chief Legal
  Officer

  
	
   

  	
   

  
	
  with a copy to:

  
	
   

  
	
   

  	
  Tishman Speyer
  Development, L.L.C.

  
	
   

  	
  c/o Tishman Speyer
  Properties, L.P.

  
	
   

  	
  520 Madison Avenue, 6th
  Floor

  
	
   

  	
  New York, New York
  10022

  
	
   

  	
  Attention: Chief
  Financial Officer

  
	
   

  	
   

  
	
  and to:

  
	
   

  	
   

  
	
   

  	
  Fried, Frank, Harris,
  Shriver & Jacobson LLP

  
	
   

  	
  One New York Plaza

  
	
   

  	
  New York, New York
  10004

  
	
   

  	
  Attention: Jonathan
  Mechanic, Esq.

  

 

34

 

ARTICLE 19

DEFAULT

 

19.1                           Purchaser’s Default.  If Purchaser fails to accept title and pay
the Cash Balance in accordance with this Agreement, the Deposit, together with
all interest accrued thereon, if any, shall be retained by Seller as liquidated
damages as Seller’s sole and exclusive remedy. 
The provisions herein contained for liquidated and agreed upon damages
are bona fide provisions for such and are not a penalty, the parties agreeing
that by reason of Seller binding itself to the sale of the Property and by
reason of the withdrawal of the Property from sale at a time when other parties
would be interested in acquiring the Property, that Seller will sustain damages
if Purchaser defaults, which damages will be substantial but will not be
capable of determination with mathematical precision, and therefore, as
aforesaid, this provision for liquidated and agreed upon damages has been
incorporated in this Agreement as a provision beneficial to both parties.  Notwithstanding the foregoing provisions of this
Section, there shall be no limitation on Purchaser’s liabilities or Seller’s
remedies with respect to any indemnities made by Purchaser that are
specifically stated herein to survive the termination of this Agreement.

 

19.2                           Seller’s Default.  Reference is hereby made to
Sections 20.1 and 20.2 hereof for Purchaser’s exclusive remedies in the
event of a breach of representation or failure to perform any agreement set
forth in this Agreement on the part of Seller. 
If Seller refuses to deliver the Deed to Purchaser pursuant to the
provisions of this Agreement, Purchaser’s sole remedy shall be either to (i)
terminate this Agreement and receive a refund of the Deposit, inclusive of any
interest accrued thereon, or (ii) bring an action for specific performance of
Seller’s obligations under this Agreement, provided, however, that  if Purchaser shall not have commenced an action
for specific performance

 

35

 

within thirty (30)
days after the date of Seller’s default or alleged default, then Purchaser
shall be deemed to have irrevocably elected to proceed pursuant to
clause (i) of this sentence.

 

ARTICLE 20

CONDITIONS; SURVIVAL

 

20.1                           Conditions.                                  (a)  If Purchaser has actual knowledge that
(i) any representation of Seller hereunder is untrue, as of the date
represented, or (ii) Seller has failed to perform, observe or comply with
any covenant, agreement or condition to be performed hereunder, Purchaser shall
notify Seller of such in writing within seven (7) days after discovery by
Purchaser.  Purchaser’s failure to so
notify Seller no later than one (1) Business Day prior to the Closing Date
shall be deemed to constitute Purchaser’s waiver of same as a condition to
Closing and otherwise.

 

(b)                                 In
the event that (A) any of Seller’s representations made in Section 3.1
hereof are not true in any material respect as of the date that such
representation was made, or (B) Purchaser has actual knowledge that any of
Seller’s representations referred to in clause (A) of this sentence are
untrue as of the date represented, then Purchaser may, as its sole remedy
(whether at law or in equity), all other claims for damages or specific
performances being hereby  expressly
waived by Purchaser, elect to terminate this Agreement, and the sole liability
of Seller shall be to return to Purchaser the Deposit, together with any
interest accrued thereon, and thereupon, this Agreement shall be null and void
and the parties hereto shall be relieved of all further obligations and
liability under this Agreement, other than with respect to those obligations
and liabilities which expressly survive the termination of this Agreement.

 

20.2                           Survival.  Except as specifically set forth to the
contrary in this Agreement, none of the representations, warranties, covenants,
indemnities, agreements, obligations or commitments made by Seller in this
Agreement shall survive the Closing, the same being merged in the

 

36

 

conveyance.  If survival is herein provided and no time
specified, such matter or matters shall be the basis for a claim against Seller
only if asserted in writing within six (6) months after the Closing Date.

 

ARTICLE 21

SUCCESSORS AND ASSIGNS

 

21.1                           Assignment.  This Agreement may not be assigned by Purchaser
except to an entity that is a limited liability company, limited partnership,
corporation or tenancy-in-common, provided that the managing member of such
limited liability company, general partner of such partnership, controlling
shareholder or officers of such corporation or majority tenant of such
tenancy-in-common, as applicable, are institutional investors (such as, by way
of example only, pension funds, banks or investment banks) and shall be
controlled, directly or indirectly, by Tishman Speyer Properties, L.P., Tishman
Speyer Crown Equities or Tishman Speyer Real Estate Venture VI, L.P.
(collectively, “Tishman-Speyer Entities”) and any one of such Tishman Speyer
Entities have management authority over the operations of the Property, except
for certain consent rights of its other members or partners as are specified in
the applicable organizational documents of such entities.  Any other assignment or attempted assignment
by Purchaser shall be deemed null and void and of no force or effect.  A copy of any assignment permitted hereunder,
together with an agreement of the assignee assuming all of the terms and
conditions of this Agreement to be performed by Purchaser, in form reasonably
satisfactory to Seller, shall be delivered to Seller at least two (2) Business
Days prior to such assignment, and in any event no such assignment shall
relieve Purchaser from its obligations under this Agreement.

 

37

 

ARTICLE 22

BROKERS

 

22.1                           Purchaser’s Representation.  Purchaser represents and warrants to
Seller that it has not  dealt with any
broker, finder or consultant other than CB Richard Ellis [successor in interest
to Insignia/ESG, Inc. (the “Broker]”), in connection
with the transaction which is the subject of this Agreement, and that all
negotiations involving Purchaser with respect to the terms of this Agreement
were conducted by or through Broker. 
Purchaser further represents and warrants that in the event any claim is
made for a broker’s, finder’s or consultant’s commission or fee by anyone other
than Broker as a result of any acts or actions of Purchaser or its
representatives with respect to the within transaction, Purchaser, its heirs,
successors and assigns do hereby agree to indemnify and hold harmless Seller
and its partners, directors, officers, principals, shareholders, agents and
employees from and against any claim arising from or in connection with such
claims for a broker’s, finder’s or consultant’s commission or fee by anyone
other than the Broker, together with all reasonable costs, expenses and
liabilities in connection with each such claim or action or proceeding brought
thereon, including without limitation, all reasonable attorneys’ fees and
expenses.  In case any action be brought
against Seller and/or its partners, directors, officers, principals,
shareholders, agents and/or employees by reason of any such claim, Purchaser,
upon notice from Seller, shall resist and defend such action or proceeding (by
counsel reasonably satisfactory to Seller). 
Purchaser’s indemnity and hold harmless provision pursuant to this Article 22
shall survive the termination or expiration of this Agreement by closing or
otherwise.  Seller shall pay the
brokerage commission to Broker in accordance with Seller’s agreement with
Broker if and when title passes hereunder.

 

38

 

ARTICLE 23

ESCROW

 

The
parties hereto have mutually requested that Piper Rudnick LLP act as escrow
agent (the “Escrow Agent”) for the purpose of
holding the Deposit in accordance with the terms of this Agreement and the
Escrow Letter executed by and among Seller, Purchaser and Escrow Agent
contemporaneously with the execution of this Agreement in the form of Exhibit 7
annexed hereto (the “Escrow Letter”).  Purchaser recognizes that Escrow Agent
represents Seller herein and has agreed to act as Escrow Agent as an
accommodation to both parties hereto. 
Purchaser further acknowledges and agrees that in the event of any
dispute between the parties to this Agreement or the Escrow Letter, Escrow
Agent shall be free to continue its representation of Seller with regard to
these matters.  The Deposit, together
with the interest accrued thereon, if any, shall be held by Escrow Agent until
the earlier of the Closing, or such time as Seller or Purchaser may be entitled
to a refund thereof in accordance with this Agreement.  At such time Escrow Agent shall remit said
sum, together with any interest actually accrued thereon, to the party entitled
thereto in accordance with this Agreement. 
At the Closing, the Deposit, together with any interest actually accrued
thereon, shall be paid to Seller as a credit against the Purchase Price.  Escrow Agent shall have no liability to
Seller or Purchaser with respect to the amount of interest earned on the
Deposit while in escrow.

 

ARTICLE 24

MISCELLANEOUS

 

24.1                           Merger. 
This Agreement constitutes the entire understanding between the
parties with respect to the transaction contemplated herein, and all prior or
contemporaneous oral agreements, understandings, representations and
statements, and all prior written agreements,

 

39

 

understandings,
representations and statements are merged into this Agreement.  Neither this Agreement nor any provisions
hereof may be modified, amended, discharged or terminated except by an
instrument in writing signed by the party against which the enforcement of such
modification, amendment, discharge or termination is sought, and then only to
the extent set forth in such instrument. 
Unless otherwise provided herein, no provision of this Agreement may be
waived except by an instrument in writing signed by the party against which the
enforcement of such waiver is sought.

 

24.2                           Headings.  The Article, Section, Schedule and
Exhibit headings used herein are for convenience only, and are not to be used
in determining the meaning of this Agreement or any part hereof.

 

24.3                           Governing Law.  This Agreement and its interpretation and
enforcement shall be governed by the laws of the State of New York without
regard to conflict of law principles.

 

24.4                           Jurisdiction.  For the purposes of any suit, action or
proceeding involving this Agreement, Seller and Purchaser hereby expressly
submit to the jurisdiction of all federal and state courts sitting in the State
of New York, County of New York, and consent that any order, process, notice of
motion or other application to or by any such court, or a judge thereof, may be
served within or without such court’s jurisdiction by registered mail or by
personal service, provided that a reasonable time for appearance is allowed,
and Seller and Purchaser agree that such courts shall have the exclusive
jurisdiction over any such suit, action or proceeding commenced by either or
both of said parties.  In furtherance of
such agreement, Seller and Purchaser agree upon the request of the other party
to discontinue (or agree to the discontinuance of) any such suit, action or
proceeding pending in any other jurisdiction.

 

40

 

24.5                           Waiver of Venue and Inconvenient Forum Claims.  Seller and Purchaser hereby irrevocably waive
any objection that it may now or hereafter have to the laying of venue of any
suit, action or proceeding arising out of or relating to this Agreement brought
in any federal or state court sitting in the City, County and State of New
York, and hereby further irrevocably waive any claim that any such suit, action
or proceeding is brought in any inconvenient forum.

 

24.6                           Waiver of Jury Trial.  Each of the parties hereto waives,
irrevocably and unconditionally, any and all right to trial by jury in any
action brought on, under, or by virtue of, or relating in any way to this
Agreement or the transactions contemplated hereby, or any of the documents
executed in connection herewith, the Property, or any claims, defenses, rights
of set-off or other actions pertaining hereto or to any of the foregoing.

 

24.7                           Successors and Assigns.  This Agreement shall be binding on the
permitted successors and assigns of the parties hereto.

 

24.8                           Invalid Provisions.  If any term or provision of this
Agreement, or any part of any term or provision, or the application thereof to
any person or circumstance shall to any extent be held invalid or
unenforceable, the remainder of this Agreement or the application of such term
or provision or remainder thereof to persons or circumstances other than those
as to which it is held invalid and unenforceable shall not be affected thereby,
and each term and provision of this Agreement shall be valid and enforceable to
the fullest extent permitted by law.

 

24.9                           Schedules and Exhibits.  All Schedules and Exhibits which are
annexed to this Agreement are a part of this Agreement and are incorporated
herein by reference.

 

24.10                     No Other Parties.  The provisions of this Agreement are for
the sole benefit of the parties to this Agreement and their successors and
permitted assigns, and shall not give rise to any

 

41

 

rights by or on behalf
of anyone other than such parties, and no party is intended to be a third party
beneficiary hereof.  No provisions of
this Agreement, or of any of the documents and instruments executed in
connection herewith, shall be construed as creating in any person or entity
other than Purchaser and Seller and their permitted assigns any rights of any
nature whatsoever.

 

24.11                     Interpretation.  This Agreement shall be construed without
regard to any presumption or other rule requiring construction against the party
causing this Agreement to be drafted.

 

24.12                     Counterparts; Faxed Signatures.  This Agreement may be executed in
multiple counterparts, each of which shall, when executed, be deemed to be an
original, and all of which when taken together shall constitute but one
agreement.  Each party may rely upon a
faxed counterpart of this Agreement executed and delivered by the other party
as if such counterpart were an original counterpart.

 

24.13                     Binding Effect.  This Agreement shall not become a binding
obligation upon Seller until the same has been fully executed by Purchaser and
Seller, and until a fully executed original counterpart thereof has been
delivered by Seller to Purchaser.

 

24.14                     Recordation.  Neither this Agreement, nor any other
document related hereto, nor any memorandum thereof shall be recorded, and any
such recording shall be void and of no force or effect.

 

24.15                     Litigation Fees.  In the event that any litigation arises
under this Agreement, the prevailing party (which term shall mean the party which
obtains substantially all of the relief sought by such party) shall be entitled
to recover, as a part of its judgment, reasonable attorneys’ fees.

 

42

 

24.16                     Exculpation.  Seller agrees that it shall not sue for,
seek or demand any money or other judgment against any affiliate of Purchaser,
any direct or indirect member, manager, shareholder, partner, beneficiary or
other owner of a direct or indirect beneficial ownership interest in Purchaser
or such affiliate, or any director, officer, employee, trustee or agent of any
of the foregoing in any action or proceeding under or by reason of or in
connection with this Agreement.

 

24.17                     Defined Terms.  The references to defined terms used in
this Agreement are listed in the Section of this Agreement entitled “Defined Terms.”

 

24.18                     Singular/Plural.  The use of the singular shall be deemed
to include the plural, and vice versa, whenever the context so requires.

 

24.19                     Press Releases.  Neither party hereto shall issue any
press release or otherwise publicize the transaction contemplated hereby
without the other party’s prior written consent, except to the extent required
by applicable law.

 

24.20                     Possession Delivery Date.  The “Possession Delivery Date” shall mean
the date that is the scheduled “Expiration Date” of the NYT Occupancy Lease or
the earlier termination of the term thereof.

 

 

[signature page to
follow]

 

43

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement of Sale and Purchase as of the date
first above written.

 

 

	
   

  	
  THE NEW YORK TIMES
  COMPANY, Seller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Kenneth A.
  Richieri

  	
   

  
	
   

  	
  Name:

  	
  Kenneth A. Richieri

  
	
   

  	
  Title:

  	
  Vice President and
  Deputy General Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TISHMAN SPEYER DEVELOPMENT,
  L.L.C., Purchaser

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Paul A.
  Galiano

  	
   

  
	
   

  	
  Name:

  	
  Paul A. Galiano

  
	
   

  	
  Title:

  	
  Vice President

  
						

 

44

 

SCHEDULE A

 

Description of
Land

 

PARCEL 1

 

ALL that lot, 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 point on
the northerly side of 43rd Street distant two hundred seventy-five feet
easterly from the corner formed by the intersection of the northerly side
of 43rd Street with the easterly side of 8th Avenue;

 

RUNNING THENCE northerly
parallel with the easterly side of 8th Avenue, one hundred feet five inches to
the center line of the block;

 

THENCE easterly along the
said center line of the block, seventy-four feet nine inches;

 

THENCE southerly again
parallel with the easterly side of 8th Avenue, one hundred feet five inches to
the northerly side of 43rd Street;

 

THENCE westerly along the
said northerly side of 43rd Street, seventy-four feet nine inches to the point
or place of BEGINNING.

 

PARCEL 2

 

ALL that certain lot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City of New York, in the County and State of New York, bounded and described as
follows:

 

BEGINNING at a point on
the northerly side of 43rd Street, distant two hundred and fifty (250) feet
westerly from the northwesterly corner of 43rd Street and 7th Avenue;

 

RUNNING THENCE northerly
along a line parallel with the westerly side of 7th Avenue, one hundred (100)
feet four (4) inches;

 

THENCE westerly along a
line parallel with the northerly side of 43rd Street, two hundred (200) feet;

 

THENCE southerly along
the line parallel with the westerly side of 7th Avenue to the northerly side of
43rd Street, one hundred (100) feet, four (4) inches;

 

THENCE easterly along the
northerly side of 43rd Street, two hundred (200) feet to the point or place of
BEGINNING.

 

45

 

PARCEL 3

 

ALL that strip of land,
situate in the Borough of Manhattan, City of New York, bounded and described as
follows:

 

BEGINNING at a point on
the northerly side of 43rd Street distant three hundred forty nine feet, nine
inches easterly form the corner formed by the intersection of the easterly
side of Eighth Avenue with the northerly side of 43rd Street;

 

RUNNING THENCE northerly
parallel with 8th Avenue, one hundred feet five inches to the centre line of
the block;

 

THENCE easterly along
said centre line of the block, three inches;

 

THENCE southerly again
parallel with 8th Avenue, one hundred feet five inches to the inches side of
43rd Street; and

 

THENCE westerly along the
said northerly side of 43rd Street, three inches to the point or place of
BEGINNING.

 

PARCEL 4

 

ALL that certain plot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City, County and State of New York, bounded and described as follows:

 

BEGINNING at a point on
the northerly side of 43rd Street, distant 207 feet westerly from the corner
formed by the westerly side of Broadway or 7th Avenue with the northerly side
of 43rd Street;

 

RUNNING THENCE northerly
parallel with the westerly side of Broadway or 7th Avenue, 100 feet 5 inches to
the center line of the block;

 

THENCE westerly along the
center line of the block, 43 feet;

 

THENCE southerly at right
angles to 43rd Street, 100 feet 5 inches to the northerly side of 43rd Street;
and

 

THENCE easterly along the
northerly side of 43rd Street, 43 feet to the point or place of BEGINNING.

 

PARCEL 5

 

ALL that certain lot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City, County and State of New York, more particularly bounded and described as
follows:

 

BEGINNING at a point on
the southerly side of 44th Street, distant two hundred and seven feet westerly
from the corner formed by the intersection of the southerly side of 44th
Street and the westerly side of Broadway;

 

46

 

THENCE southerly parallel with the westerly side of Broadway, one
hundred feet five inches to the center line of the block;

 

THENCE westerly along the
center line of the block and parallel with the southerly side of 44th Street,
one hundred eighty-six feet three inches;

 

THENCE northerly again
parallel with the westerly side of Broadway one hundred feet five inches to the
southerly side of 44th Street;

 

THENCE easterly along the
southerly side of 44th Street, one hundred eight-six feet three inches to the
point or place of BEGINNING.

 

47

 

SCHEDULE B

 

Leases, Subleases
and Occupancy Agreement

 

	
  1.

  	
  Asahi Shimbun America,
  Inc. (month to month lease)

  
	
   

  	
   

  
	
  2.

  	
  New York Times
  Employees Credit Union (no written agreement)

  
	
   

  	
   

  
	
  3.

  	
  MARUJUPU, Inc. (no
  written agreement)

  
	
   

  	
   

  
	
  4.

  	
  New York Times Company
  Foundation, Inc. (no written agreement)

  

 

48

 

SCHEDULE C

 

Contract Survey

 

[Survey of the
Land described in Schedule A]

 

49

 

SCHEDULE D

 

Covenants,
Restrictions, Easements, and Agreements of Record

And Other Matters

 

(Purchaser accepts
Title subject to same)

 

 

Title Exceptions

 

1.                                       Rights
of tenants or persons in possession limited to The New York Times Company and
the permitted occupants claiming through The New York Times Company, as tenants
only.(1)

 

2.                                       Real
estate taxes, water and sewer charges, inspection fees, vault taxes and
assessments (including without limitation, business improvement district
assessments, if any) not yet due and payable (subject to apportionment).

 

3.                                       Any
and all present and future laws, regulations, restrictions, requirements,
ordinances, resolutions and orders (including without limitation, any of the
foregoing relating to zoning, building and environmental protection) as to the
use, occupancy, subdivision or improvement of the Property adopted or imposed
by any bureau, board, commission, legislature, department or other governmental
body.

 

4.                                       [Intentionally
Omitted]

 

5.                                       Covenants
and Restrictions in Liber 950 cp 281, but omitting any covenant, condition or
restriction, if any, based on race, color, religion, sex, handicap, familial
status or national origin unless and only to the extent that the covenant,
condition or restriction (a) is exempt under Title 42 of the United States
Code, or (b) relates to handicap but does not discriminate against handicapped
persons. Any present or future violations of said covenants and restrictions
will not result in the forfeiture or reversion of title to the premises being
insured by the Title Company. (Affects Parcel 1)

 

6.                                       Agreement
made between Vincent Astor (sometimes known as William Vincent Astor) and
Theresa Powers dated 1/18/1943 and recorded 10/22/1943 in Liber 4187 cp 433.
(Affects Parcel 5)

 

7.                                       Premises
or part of the premises have been designated as a Landmark, Landmark Site or
Historic District by an instrument recorded on 6/26/2001 in Reel 3311 Page 248,
and are subject to the restricted use as provided in Chapter 74 of the New York
City Charter and Title 25, Chapter 3 of the New York City Administrative Code.

 

(1)
The foregoing exception shall no longer be deemed a Permitted Encumbrance as of
the Possession Delivery Date.

 

50

 

8.                                       Premises
or part of the premises have been designated as a Landmark, Landmark Site or
Historic District by an instrument 7/15/2002, recorded on 8/20/2002 in Reel
3588 Page 1216, and are subject to the restricted use as provided in Chapter 74
of the New York City Charter and Title 25, Chapter 3 of the New York City
Administrative Code.

 

51

 

SCHEDULE E

 

Excluded Personal
Property

 

see
attached

 

52

 

Excluded Personal
Property

 

All the News that’s Fit
to Print  Location:  Above 2 front revolving Doors First Floor

 

Astrological Light
Fixture    Location:  Front stairway to 2nd Floor

 

Illuminated Signage   Location: 
16 on 43rd Street, 9 on 44th Street

 

53

 

Stained Glass Windows
Editorial Department

New Editorial Board Room

 

Door to Library     Location: 
10th Floor

Library

 

	
  

  	
  

  

Stained Glass
Windows   Location 8th Floor
Book Review

 

54

 

Historic Site of
Journalism Plaque    Location:  Entrance to 43rd Street Building

 

Wallpaper Landscape    Location: 
Publisher’s Dining Room 11th Floor

 

Statue       Location:
12th Floor Terrace

 

55

 

 

	
  

  	
  

  

Wall Sculpture   Location: 
10th Floor Corridor

 

56

 

SCHEDULE F

 

[Intentionally Omitted]

 

57

 

SCHEDULE G

 

Pending Litigation

 

None

 

58

 

EXHIBIT 1

 

Deed

 

BARGAIN
AND SALE DEED

 

 

THE NEW YORK TIMES
COMPANY

 

TO

 

TISHMAN SPEYER
DEVELOPMENT, L.L.C.

 

 

	
  County:

  	
  New York

  
	
  Block:

  	
  1015

  
	
  Lots:

  	
  12

  
	
  Address:

  	
  229 West 43rd
  Street, New York, New York

  

 

 

Record and Return
to:

Piper Rudnick LLP

1251 Avenue of the
Americas

New York, New York
10020

Attn: Martin D.
Polevoy, Esq.

 

59

 

BARGAIN
AND SALE DEED

 

 

THIS INDENTURE, made as of the                   day
of December, 2004 by THE NEW YORK TIMES COMPANY,
a New York corporation, having an office at 229 West 43rd Street,
New York, New York 10036 (herein called “Grantor”) and TISHMAN SPEYER DEVELOPMENT, L.L.C., a Delaware limited
liability company, having an office at c/o Tishman Speyer Properties, L.P., 520
Madison Avenue, 6th Floor, New York, New York 10022 (herein called “Grantee”).

 

WITNESSETH, that Grantor, in
consideration of Ten Dollars ($10.00) and other valuable consideration paid by
Grantee, does hereby grant and release unto Grantee, the heirs or successors
and assigns of Grantee forever,

 

ALL of Grantor’s right, title
and interest in that certain plot, piece or parcel of land with the buildings
and improvements thereon erected, situate, lying and being in the Borough of
Manhattan, County of New York, State of New York, as more particularly
described on Schedule A annexed hereto and made a part hereof,

 

TOGETHER
with all right, title and interest, if any, of Grantor in and to any streets
and roads abutting the above-described premises to the center lines thereof,

 

TOGETHER with the appurtenances
and all the estate and rights of Grantor in and to said premises,

 

TO HAVE AND TO HOLD the premises
herein granted unto Grantee, the heirs or successors and assigns of Grantee
forever,

 

AND Grantor, in compliance with Section 13
of the Lien Law, covenants that Grantor will receive the consideration for this
conveyance and will hold the right to receive such consideration as a trust
fund to be applied first for the purpose of paying the cost of the improvement
and will apply the same first to the payment of the cost of the improvement before
using any part of the total of the same for any other purpose.

 

[signature page to
follow]

 

60

 

[SIGNATURE PAGE TO
BARGAIN AND SALE DEED]

 

 

IN WITNESS WHEREOF, Grantor has
duly executed this deed the day and year first above written.

 

 

	
   

  	
  THE NEW YORK TIMES COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

61

 

ACKNOWLEDGMENT

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  :

  	
  ss.:

  
	
  COUNTY OF NEW YORK

  	
  )

  	
   

  

 

 

On the             day
of December, 2004, 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 whose name is subscribed to the within instrument and
acknowledged to me that she/he executed the same in her/his capacity, and that
by her/his signature on the instrument, the individual (or the person upon
behalf of whom the individual acted), executed the instrument.

 

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

62

 

SCHEDULE A

 

Legal
Description

 

PARCEL 1

 

ALL that lot, 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 point on
the northerly side of 43rd Street distant two hundred seventy-five feet
easterly from the corner formed by the intersection of the northerly side
of 43rd Street with the easterly side of 8th Avenue;

 

RUNNING THENCE northerly
parallel with the easterly side of 8th Avenue, one hundred feet five inches to
the center line of the block;

 

THENCE easterly along the
said center line of the block, seventy-four feet nine inches;

 

THENCE southerly again
parallel with the easterly side of 8th Avenue, one hundred feet five inches to
the northerly side of 43rd Street;

 

THENCE westerly along the
said northerly side of 43rd Street, seventy-four feet nine inches to the point
or place of BEGINNING.

 

PARCEL 2

 

ALL that certain lot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City of New York, in the County and State of New York, bounded and described as
follows:

 

BEGINNING at a point on
the northerly side of 43rd Street, distant two hundred and fifty (250) feet
westerly from the northwesterly corner of 43rd Street and 7th Avenue;

 

RUNNING THENCE northerly
along a line parallel with the westerly side of 7th Avenue, one hundred (100)
feet four (4) inches;

 

THENCE westerly along a
line parallel with the northerly side of 43rd Street, two hundred (200) feet;

 

THENCE southerly along
the line parallel with the westerly side of 7th Avenue to the northerly side of
43rd Street, one hundred (100) feet, four (4) inches;

 

THENCE easterly along the
northerly side of 43rd Street, two hundred (200) feet to the point or place of
BEGINNING.

 

63

 

PARCEL 3

 

ALL that strip of land,
situate in the Borough of Manhattan, City of New York, bounded and described as
follows:

 

BEGINNING at a point on
the northerly side of 43rd Street distant three hundred forty nine feet, nine
inches easterly form the corner formed by the intersection of the easterly
side of Eighth Avenue with the northerly side of 43rd Street;

 

RUNNING THENCE northerly
parallel with 8th Avenue, one hundred feet five inches to the centre line of
the block;

 

THENCE easterly along
said centre line of the block, three inches;

 

THENCE southerly again
parallel with 8th Avenue, one hundred feet five inches to the inches side of
43rd Street; and

 

THENCE westerly along the
said northerly side of 43rd Street, three inches to the point or place of
BEGINNING.

 

PARCEL 4

 

ALL that certain plot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City, County and State of New York, bounded and described as follows:

 

BEGINNING at a point on
the northerly side of 43rd Street, distant 207 feet westerly from the corner
formed by the westerly side of Broadway or 7th Avenue with the northerly side of
43rd Street;

 

RUNNING THENCE northerly
parallel with the westerly side of Broadway or 7th Avenue, 100 feet 5 inches to
the center line of the block;

 

THENCE westerly along the
center line of the block, 43 feet;

 

THENCE southerly at right
angles to 43rd Street, 100 feet 5 inches to the northerly side of 43rd Street;
and

 

THENCE easterly along the
northerly side of 43rd Street, 43 feet to the point or place of BEGINNING.

 

PARCEL 5

 

ALL that certain lot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City, County and State of New York, more particularly bounded and described as
follows:

 

BEGINNING at a point on
the southerly side of 44th Street, distant two hundred and seven feet westerly
from the corner formed by the intersection of the southerly side of 44th
Street and the westerly side of Broadway;

 

64

 

THENCE southerly parallel with the westerly side of Broadway, one
hundred feet five inches to the center line of the block;

 

THENCE westerly along the
center line of the block and parallel with the southerly side of 44th Street,
one hundred eighty-six feet three inches;

 

THENCE northerly again
parallel with the westerly side of Broadway one hundred feet five inches to the
southerly side of 44th Street;

 

THENCE easterly along the
southerly side of 44th Street, one hundred eight-six feet three inches to the
point or place of BEGINNING.

 

65

 

EXHIBIT 2

 

Bill of Sale

 

KNOW ALL MEN BY THESE
PRESENTS that THE NEW YORK TIMES COMPANY, having an office at 229 West 43rd
Street, New York, New York 10036 (“Seller”) for and in consideration of
the sum of Ten ($10.00) Dollars and other good and valuable consideration to it
in hand paid, at or before the unsealing and delivery of these presents by
[TISHMAN SPEYER DEVELOPMENT L.L.C.], having an office at c/o Tishman Speyer
Properties, L.P., 520 Madison Avenue, 6th Floor, New York, New York
10022 (“Purchaser”), the receipt and sufficiency whereof are hereby
acknowledged, has transferred and conveyed and by these presents does
quitclaim, release, transfer and convey unto Purchaser, its successors and
assigns, all fixtures, machinery and equipment to the extent same constitute
personal property, and all other personal property (collectively, the “Personal
Property”) owned by Seller, attached or appurtenant to, or used in
connection with the occupancy and operation of those certain premises known as
229 West 43rd Street, New York, New York 10036 (the “Premises”),
other than the personal property described on Exhibit A annexed hereto.(2)

 

TO HAVE AND TO HOLD, the
same unto Purchaser, its successors and assigns, forever.

 

This transfer is made as
part of the transfer of the Premises by Seller to Purchaser as of the date
hereof, and both parties agree and acknowledge that no part of the
consideration therefor is allocated to the Personal Property.

 

(2) Excluded personal
property.  TBC

 

66

 

This transfer is made without
representation, warranty or guaranty by, or recourse against, Seller of any
kind whatsoever.

 

Neither Seller nor any
agent or representative of Seller has made, and Seller is not liable or bound
in any manner by, any express or implied warranties, guaranties, inducements,
representations or information pertaining to the Personal Property or any part
thereof, the physical condition, the uses which can be made of the same or any
other matter or thing with respect thereto and the Personal Property is being
transferred “as is”.

 

IN WITNESS WHEREOF,
Seller has signed this instrument as of this  
          day of December, 2004.

 

 

	
   

  	
  THE NEW YORK TIMES
  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

67

 

EXHIBIT A

 

Excluded Personal
Property

 

All the News that’s Fit
to Print  Location:  Above 2 front revolving Doors First Floor

 

Astrological Light
Fixture    Location:  Front stairway to 2nd Floor

 

Illuminated Signage   Location: 
16 on 43rd Street, 9 on 44th Street

 

68

 

Stained Glass Windows
Editorial Department

New Editorial Board Room

 

Door to Library     Location: 
10th Floor

Library

 

                   

Stained Glass
Windows   Location 8th Floor
Book Review

 

69

 

Historic Site of
Journalism Plaque    Location:  Entrance to 43rd Street Building

 

Wallpaper Landscape    Location: 
Publisher’s Dining Room 11th Floor

 

Statue        Location: 12th Floor Terrace

 

70

 

	
  

  	
  

  

Wall Sculpture   Location: 
10th Floor Corridor

 

71

 

EXHIBIT 3

 

Assignment of
Licenses and/or Permits

 

KNOW ALL MEN BY THESE
PRESENTS that THE NEW YORK TIMES COMPANY, having an office at 229 West 43rd
Street, New York, New York 10036 (the “Assignor”) in consideration of
Ten ($10.00) Dollars and other good and valuable consideration in hand paid by
TISHMAN SPEYER DEVELOPMENT L.L.C., having an office at c/o Tishman Speyer
Properties, L.P., 520 Madison Avenue, 6th Floor, New York, New York
10022 (the “Assignee”), the receipt and sufficiency of which are duly
acknowledged, hereby assigns and quitclaims unto Assignee all of Assignor’s
right, title and interest, if any, in and to all assignable licenses and/or
permits, if any, relating to and affecting those certain premises known as 229
West 43rd Street, New York, New York 10036 (the “Premises”).

 

TO HAVE AND TO HOLD the
same unto Assignee, its successors and assigns, from and after the date hereof,
subject to the terms, covenants, conditions and provisions therein contained.

 

This Assignment is made
in connection with the transfer this day of the Premises by Assignor to
Assignee.

 

This Assignment is made
without warranty or representation by, or recourse against Assignor of any kind
whatsoever.

 

IN WITNESS WHEREOF, the
undersigned has signed this Assignment as of this           day of December, 2004.

 

 

	
   

  	
  THE NEW YORK TIMES
  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

72

 

EXHIBIT 4

 

Assignment of
Warranties and Guarantees

 

KNOW ALL MEN BY THESE
PRESENTS that THE NEW YORK TIMES COMPANY, having an office at 229 West 43rd
Street, New York, New York 10036 (the “Assignor”), in consideration of
Ten ($10.00) Dollars and other good and valuable consideration in hand paid by
TISHMAN SPEYER DEVELOPMENT L.L.C., having an office at c/o Tishman Speyer
Properties, L.P., 520 Madison Avenue, 6th Floor, New York, New York
10022 (the “Assignee”), the receipt and sufficiency of which are duly
acknowledged, hereby assigns and quitclaims unto Assignee all of Assignor’s
right, title and interest, if any, in and to all assignable warranties and
guarantees of contractors, manufacturers, suppliers and/or installers, if any,
relating to those certain premises known as 229 West 43rd Street,
New York, New York 10036 (the “Premises”), including all assignable
warranties and guarantees covering the materials, goods and equipment installed
in or upon the Premises.

 

TO HAVE AND TO HOLD the
same unto Assignee, its successors and assigns, from and after the date hereof,
subject to the terms, covenants, conditions and provisions therein contained.

 

This Assignment is made
in connection with the transfer this day of the Premises by Assignor to
Assignee.

 

This Assignment is made
without warranty or representation by, or recourse against, Assignor of any
kind whatsoever.

 

73

 

IN WITNESS WHEREOF, the
undersigned has signed this Assignment as of this           
day of December, 2004.

 

 

	
   

  	
  THE NEW YORK TIMES
  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

74

 

EXHIBIT 5

 

Post-Closing
Adjustment Letter

 

[Letterhead of
Seller]

 

[Date]

 

Tishman Speyer
Development, L.L.C.

c/o Tishman Speyer Properties, L.P. 

520 Madison Avenue, 6th Floor 

New York, New York  10022

 

	
  Re:

  	
  The New York Times Company (“Seller”) to Tishman
  Speyer Development, L.L.C. (“Purchaser”)

  
	
   

  	
  229 West 43rd Street, New York, New York 10036
  (the “Premises”)

  

 

Gentlemen:

 

In connection with the closing adjustments made pursuant to the
transfer of title of the Premises by the undersigned to you, a copy of which
closing adjustments is annexed hereto, it is hereby agreed that if any arithmetic
calculations shall prove to be erroneous, or any adjustment shall be omitted,
same shall be adjusted between you and the undersigned after the Closing.  Any such adjustment shall be paid promptly
after same is ascertained.  The
obligation to correct any erroneous adjustment or to make any additional
adjustment in accordance with the above shall survive the Closing.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  THE NEW YORK TIMES
  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
  AGREED AND CONSENTED
  TO:

  TISHMAN SPEYER DEVELOPMENT, L.L.C.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
						

 

75

 

EXHIBIT 6

 

FIRPTA Certificate

 

Section 1445 of the
Internal Revenue Code provides that a transferee of a U.S. real property
interest must withhold tax if the transferor is a foreign person.  To inform the transferee that withholding of
tax is not required upon the disposition of a U.S. real property interest by
THE NEW YORK TIMES COMPANY, the undersigned hereby certifies the following on
behalf of THE NEW YORK TIMES COMPANY:

 

1.                                       The
New York Times Company is not a foreign corporation, foreign partnership,
foreign trust, or foreign estate (as those terms are defined in the Internal
Revenue Code and Income Tax Regulations);

 

2.                                       The
New York Times Company ‘s U.S. employer identification number is 13-1102020,
and

 

3.                                       The
New York Times Company ‘s office address is 229 West 43rd Street,
New York, New York 10036.

 

The undersigned
understands that this certification may be disclosed to the Internal Revenue
Service by the transferee and that any false statement contained herein could
be punished by fine, imprisonment, or both.

 

Under penalties of
perjury I declare that I have examined this certification and to the best of my
knowledge and belief it is true, correct and complete, and I further declare
that I have authority to sign this document on behalf of THE NEW YORK TIMES
COMPANY.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

76

 

EXHIBIT 7

 

Escrow Letter

 

Dated:  November 7, 2004

 

Piper Rudnick LLP

1251 Avenue of the
Americas

New York, New York 10020

 

	
  Re:

  	
  Agreement of Sale and
  Purchase (the “Agreement”) between

  
	
   

  	
  The New York Times
  Company (“Seller”) and

  
	
   

  	
  Tishman Speyer
  Development, L.L.C. (“Purchaser”)

  
	
   

  	
  dated November 7,
  2004

  
	
   

  	
  Premises: 229 West 43rd
  Street, New York, New York 10036

  

 

Gentlemen:

 

Pursuant to the above-referenced
Agreement made this date by and between the undersigned, you are required to
act as escrow agent, to hold $20,000,000 (“Escrow Deposit”) in escrow, in
accordance with the terms and conditions hereinafter set forth. The Escrow
Deposit shall be deposited in an interest bearing account with Citibank, N.A.

 

The Escrow Deposit
together with interest earned thereon, if any, shall be released or delivered
to the party entitled thereto pursuant to the Agreement with reasonable
promptness after you shall have received notice:

 

(a)                                  from
both parties to this Escrow Letter authorizing release of the Escrow Deposit;
or

 

(b)                                 of
the occurrence of either of the following events:

 

(i)                                     the
closing under the Agreement; or

 

(ii)                                  the
receipt by Escrow Agent of  a written
notice from either party to this Escrow Letter stating that an event has
occurred under the Agreement entitling the party delivering such notice to the
Escrow Deposit, whereupon Escrow Agent shall deliver written notice (the “Default
Notice”) thereof to the other party and, unless such other party shall have
delivered a written notice of objection to Escrow Agent within ten (10) days
following receipt by such other party of the Default Notice, Escrow Agent shall
deliver the Escrow Deposit to the party initially requesting the Escrow
Deposit.

 

It is agreed that the
duties of Escrow Agent are only such as are herein specifically provided, being
purely ministerial in nature, and that Escrow Agent shall incur no liability

 

77

 

whatever except for
willful misconduct or gross negligence so long as Escrow Agent has acted in
good faith. The undersigned hereby release Escrow Agent from any act done or
omitted to be done by Escrow Agent in good faith in the performance of Escrow
Agent’s duties hereunder.

 

Escrow Agent shall be
under no responsibility with respect to the Escrow Deposit other than
faithfully to follow the instructions herein contained. Without limiting the
generality of the foregoing, Escrow Agent shall have no responsibility to
protect the Escrow Deposit, or to do any act or thing whatever in regard to the
Escrow Deposit. Escrow Agent shall not be responsible for any failure to
demand, collect or enforce any obligation with respect to the Escrow Deposit or
for any diminution in value of the Escrow Deposit from any cause. Escrow Agent
may consult with counsel and shall be fully protected in any action taken in
good faith, in accordance with such advice. Escrow Agent shall not be required
to defend any legal proceedings which may be instituted against Escrow Agent in
respect of the subject matter of these instructions unless requested to do so
by the undersigned and indemnified to the satisfaction of Escrow Agent against
the cost and expense of such defense. Escrow Agent shall not be required to
institute legal proceedings of any kind. Escrow Agent shall have no  responsibility for the genuineness or validity
of any document or other item deposited with Escrow Agent, and shall be fully
protected in acting in accordance with any written instructions given to Escrow
Agent hereunder and believed by Escrow Agent to have been signed by the proper
parties.

 

The Escrow Deposit shall
include interest thereon actually earned from the date deposited in an interest
bearing form to the date withdrawn. Escrow Agent shall not have any duty to
maximize the rate or interest or duration of interest bearing form. If
deposited in a form which is not convertible to cash when Escrow Agent is
required to release the Escrow Deposit, Escrow Agent shall be deemed to have
complied with the requirement of release by delivery of a duly executed
assignment of its rights in the Escrow Deposit. 
The parties hereto acknowledge and agree that, as of the date hereof,
Purchaser has not provided Escrow Agent with its federal tax identification
number and, until same is provided to Escrow Agent, interest will not accrue on
the Escrow Deposit and the Escrow Deposit shall not be placed in an
interest-bearing account.

 

Escrow Agent assumes no
liability under this Escrow Letter except that of a stakeholder. If there is
any dispute as to whether Escrow Agent is obligated to deliver the Escrow
Deposit, or as to whom the Escrow Deposit is to be delivered, Escrow Agent will
not be obligated to make any delivery of the Escrow Deposit, but in such event
may hold the Escrow Deposit until receipt by Escrow Agent of an authorization
in writing signed by all the persons having interest in such dispute, directing
the disposition of the Escrow Deposit, or in the absence of such authorization,
Escrow Agent may hold the sum until the final determination of the rights of
the parties in an appropriate proceeding. If such written authorization is not
given, or proceedings for such determination are not begun and diligently
continued, Escrow Agent is not required to bring an appropriate action or
proceeding for leave to deposit the Escrow Deposit in court pending such
determination, but may at Escrow Agent’s sole discretion make a deposit of the
Escrow Deposit in court and in such event all liability and responsibility of
Escrow Agent shall terminate upon such deposit having been made. In making
delivery of the Escrow Deposit in the manner provided for in this Escrow
Letter, Escrow Agent shall have no further liability in the matter.

 

78

 

The undersigned hereby
jointly and severally agree to indemnify and hold the Escrow Agent free and
harmless from and against any claim, liability, suit, cost (including Escrow
Agent’s reasonable counsel fees) or other obligation incurred or arising out of
this Escrow Letter excluding only Escrow Agent’s liability for its own willful
misconduct or gross negligence.

 

Purchaser and Seller have
mutually requested that Escrow Agent act as escrow agent for the purpose of
holding the Escrow Deposit in accordance with the terms of this Escrow Letter.
Purchaser acknowledges that Escrow Agent represents Seller herein and has
agreed to act as escrow agent as an accommodation to both parties hereto.
Purchaser waives all claims in the nature of conflict of interest against
Escrow Agent and further agrees that in the event of any dispute between
Purchaser and Seller, Escrow Agent shall be free to continue its representation
of Seller with regard to these matters.

 

Upon delivery of the
Escrow Deposit in accordance with this Escrow Letter, Purchaser and Seller
hereby release Escrow Agent from all obligations and liability hereunder.

 

Escrow Agent has executed
this Escrow Letter to confirm that Escrow Agent is holding, and will hold, the
Escrow Deposit in escrow pursuant to the provisions of this Escrow Letter.

 

Except as otherwise
provided in this Escrow Letter, any and all notices, elections, demands,
requests and responses thereto permitted or required to be given under this
Escrow Letter shall be in writing, signed by the party giving the same, and
shall be deemed to have been properly given and shall be deemed effective upon
being personally delivered, or after being deposited in the United States mail,
postage prepaid, certified with return receipt requested, to the other parties
at the address of the other parties set forth below or at such other address
within the continental United States as the other parties may designate by
notice specifically designated as a notice of change of address and given in
accordance herewith; provided, however, that the time period in which a
response to any such notice, election, demand or request must be given shall
commence on the date of receipt thereof; and provided further that no notice of
change of address shall be effective until the date of receipt thereof.
Personal delivery to a party or to any officer, partner, agent or employee of
such party at said address shall constitute receipt. Rejection or other refusal
to accept or inability to deliver because of changed address of which

 

no notice has been
received shall also constitute receipt. Any such notice, election, demand,
request or response shall be addressed as follows:

 

	
  if to Seller, to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The New York Times
  Company

  
	
   

  	
   

  	
  229 West 43rd
  Street

  
	
   

  	
   

  	
  New York, New York
  10036

  
	
   

  	
   

  	
  Attention: Kenneth A. Richieri, Esq.

  
	
   

  	
   

  	
  Deputy General Counsel

  

 

79

 

	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Piper Rudnick LLP

  
	
   

  	
   

  	
  1251 Avenue of the
  Americas

  
	
   

  	
   

  	
  New York, New York
  10020

  
	
   

  	
   

  	
  Attention: Martin D. Polevoy, Esq.

  
	
   

  	
   

  	
   

  
	
  if to Purchaser, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tishman Speyer
  Development, L.L.C.

  
	
   

  	
   

  	
  c/o Tishman Speyer
  Properties, L.P.

  
	
   

  	
   

  	
  520 Madison Avenue, 6th
  Floor

  
	
   

  	
   

  	
  New York, New York
  10022

  
	
   

  	
   

  	
  Attention: Chief Legal
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tishman Speyer
  Development, L.L.C.

  
	
   

  	
   

  	
  c/o Tishman Speyer
  Properties, L.P.

  
	
   

  	
   

  	
  520 Madison Avenue, 6th
  Floor

  
	
   

  	
   

  	
  New York, New York
  10022

  
	
   

  	
   

  	
  Attention: Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  and to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fried, Frank, Harris,
  Shriver & Jacobson LLP

  
	
   

  	
   

  	
  One New York Plaza

  
	
   

  	
   

  	
  New York, New York
  10004

  
	
   

  	
   

  	
  Attention: Jonathan
  Mechanic, Esq.

  
	
   

  	
   

  	
   

  
	
  if to Escrow Agent to:

  	
  Piper Rudnick LLP

  
	
   

  	
   

  	
  1251 Avenue of the
  Americas

  
	
   

  	
   

  	
  New York, New York
  10020

  
	
   

  	
   

  	
  Attn: Martin D.
  Polevoy, Esq.

  

 

This Escrow Letter
constitutes the entire agreement with respect to the terms and conditions of
such escrow and any modification, amendment or supplement shall be binding only
if made pursuant to an instrument in writing executed by each of the parties
hereto. This Escrow Letter shall be binding upon and inure to the benefit of
our respective successors and assigns except that the within escrow shall not
inure to the benefit of either of the undersigned’s assigns, unless and until
you have received a duly executed assignment and assumption (in form
satisfactory to you) of all of the assignor’s obligations hereunder.

 

Very truly yours,

 

80

 

	
   

  	
  THE NEW YORK TIMES
  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  TISHMAN SPEYER
  DEVELOPMENT, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

Accepted and Agreed to:

PIPER RUDNICK LLP

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

Seller’s Federal Tax
Identification Number

is 13-1102020.

 

Purchaser’s Federal Tax
Identification Number 

is                                       .

 

81

 

Exhibit 8

 

NYT Occupancy
Lease

 

[See Attached]

 

82

 

EXHIBIT 8

 

 

AGREEMENT
OF LEASE

 

BETWEEN

 

TISHMAN
SPEYER DEVELOPMENT, L.L.C., LANDLORD

 

AND

 

THE NEW
YORK TIMES COMPANY, TENANT

 

 

	
  Premises:

  	
  229 West 43rd Street

  
	
   

  	
  New York, New York

  

 

 

TABLE OF
CONTENTS

 

	
  1.

  	
  Demised Premises; Term.

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Rent.

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Impositions.

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Use of
  Premises.

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Condition
  of Premises and Delivery of Possession.

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Repairs and Maintenance.

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Alterations.

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Utilities.

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Compliance with Laws.

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Insurance.

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Damage Or Destruction.

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Condemnation.

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Subordination.

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Indemnification.

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Assignment and Subletting.

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Landlord’s Access Rights.

  	
   

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Bankruptcy.

  	
   

  
	
   

  	
   

  	
   

  
	
  18.

  	
  Default.

  	
   

  
	
   

  	
   

  	
   

  
	
  19.

  	
  Remedies Of Landlord.

  	
   

  
	
   

  	
   

  	
   

  
	
  20.

  	
  No Waiver.

  	
   

  
	
   

  	
   

  	
   

  
	
  21.

  	
  End Of Term.

  	
   

  
	
   

  	
   

  	
   

  
	
  22.

  	
  Broker.

  	
   

  
	
   

  	
   

  	
   

  
	
  23.

  	
  Quiet
  Enjoyment.

  	
   

  
	
   

  	
   

  	
   

  
	
  24.

  	
  Nonliability Of Landlord.

  	
   

  

 

 

	
  25.

  	
  Applicable Law And
  Construction.

  	
   

  
	
   

  	
   

  	
   

  
	
  26.

  	
  Notices.

  	
   

  
	
   

  	
   

  	
   

  
	
  27.

  	
  Binding Effect Of Lease.

  	
   

  
	
   

  	
   

  	
   

  
	
  28.

  	
  Cleaning, Rubbish Removal.

  	
   

  
	
   

  	
   

  	
   

  
	
  29.

  	
  Entire
  Agreement.

  	
   

  
	
   

  	
   

  	
   

  
	
  30.

  	
  Captions
  And Index.

  	
   

  
	
   

  	
   

  	
   

  
	
  31.

  	
  Recovery From Landlord.

  	
   

  
	
   

  	
   

  	
   

  
	
  32.

  	
  Severability Of Provisions.

  	
   

  
	
   

  	
   

  	
   

  
	
  33.

  	
  Extension
  Option.

  	
   

  
	
   

  	
   

  	
   

  
	
  34.

  	
  Holdover.

  	
   

  
	
   

  	
   

  	
   

  
	
  35.

  	
  Miscellaneous.

  	
   

  
	
   

  	
   

  	
   

  
	
  36.

  	
  Successors, Assigns, Etc.

  	
   

  
	
   

  	
   

  	
   

  
	
  37.

  	
  Landlord’s Cure
  and Enforcement Rights.

  	
   

  
	
   

  	
   

  	
   

  
	
  38.

  	
  Covenant Against Liens.

  	
   

  
	
   

  	
   

  	
   

  
	
  39.

  	
  Affirmative Waivers.

  	
   

  
	
   

  	
   

  	
   

  
	
  40.

  	
  Estoppel Certificates.

  	
   

  
	
   

  	
   

  	
   

  
	
  41.

  	
  Net Lease;
  Nonterminability.

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  	
   

  
	
  A.

  	
  Premises

  	
   

  
	
   

  	
   

  	
   

  
	
  B

  	
  Tenant’s Insurance

  	
   

  
	
   

  	
   

  	
   

  
	
  C-I

  	
  Subordination,
  Non-Disturbance and Attornment Agreement – Mortgagee

  	
   

  
	
   

  	
   

  	
   

  
	
  C-2

  	
  Subordination,
  Non-Disturbance and Attornment Agreement – Superior Lessor

  	
   

  
	
   

  	
   

  	
   

  
	
  D.

  	
  Delivery Condition

  	
   

  

 

ii

 

AGREEMENT
OF LEASE

 

AGREEMENT OF LEASE (this “Lease”) made as of
the          day of                   ,
2004 between TISHMAN SPEYER DEVELOPMENT, L.L.C., a Delaware limited liability
company having its principal office at c/o Tishman Speyer Properties, L.P., 520
Madison Avenue, 6th Floor, New York, New York 10022 (“Landlord”) and THE
NEW YORK TIMES COMPANY, a New York corporation having its principal office at
229 West 43rd Street, New York, New York 10036 (“Tenant”).

 

1.                                       Demised Premises; Term.

 

(a)     Landlord
hereby leases to Tenant and Tenant hereby hires from Landlord the building
located at 229 West 43rd Street, New York, New York (the “Premises”)
and the “Land” (as herein defined) on and subject to the terms, covenants and
conditions set forth in this Lease.  The
Premises are located on the land described on Exhibit A
annexed hereto and made a part hereof (the “Land”).

 

(b)     The term
of this Lease (the “Term”) shall commence on the date hereof, i.e., the
date on which the Closing occurs under that certain Agreement of Sale and
Purchase between The New York Times Company, as Seller and Tishman Speyer
Development, L.L.C., as Purchaser, dated November 7, 2004 (such Agreement
of Sale and Purchase, the “Agreement of Sale and Purchase”; such date,
the “Commencement Date”), and shall end on June 30, 2007 (such
date, as the same may be extended pursuant to Tenant’s right to extend the Term
pursuant to Section 33 hereof, the “Expiration Date”).

 

(c)     Tenant
acknowledges that this Lease is a net lease with Landlord having no obligation
to provide any work, labor or service to or for Tenant, and Tenant paying all
real estate taxes, and operating, repair, replacement and maintenance costs of
the Premises during the Term, as more particularly provided in this Lease.

 

2.                                       Rent.

 

Tenant covenants to pay to Landlord the annual base
rent (“Base Rent”) set forth below, and the additional rent required to
be paid pursuant to the terms of this Lease. 
Base Rent and such additional rent and charges which Tenant shall be
required to pay under this Lease are hereinafter sometimes referred to
collectively as “Rent.”  Base Rent shall
be as follows:

 

Twelve Million Two
Hundred Fifty Thousand And 00/100 ($12,250,000.00) Dollars per annum.

 

(a)     Tenant
shall pay the Base Rent in equal monthly installments in advance on the first
day of each calendar month included in the Term.  If the Commencement Date or the Expiration
Date is not the first day or last day of a month, as the case may be, the Rent
for such month shall be prorated based upon the actual number of days in such
month.

 

 

(b)     All Rent
shall be paid in lawful money of the United States which shall be legal tender
in payment of all debts and dues, public and private, at the time of payment,
(a) in the case of Base Rent, by wire transfer of immediately available federal
funds as directed by Landlord and (b) in the case of all other sums, either by
wire transfer as aforesaid or by check (subject to collection) drawn on a New York
Clearing House Association member bank at the address of Landlord set forth in
this Lease or at such other place as Landlord in writing may designate, in each
case at the times provided herein without notice or demand and without setoff,
deduction or counterclaim.

 

(c)     Unless
another time shall be herein expressly provided, any additional rent shall be
due and payable within thirty (30) days after Tenant’s receipt of an invoice
therefor, and Landlord shall have the same remedies for failure to pay additional
rent as for a nonpayment of Base Rent.

 

(d)     Each and
every payment, other than Base Rent (and other than costs for any Alterations
performed by Tenant or any repairs or replacements to the Premises), which are
required to be paid by Tenant under this Lease shall be deemed to be additional
rent hereunder, whether or not the provisions requiring payment of such amounts
specifically so state, and, in the case of the nonpayment of any such amount,
Landlord shall have, in addition to all of its other rights and remedies, all
of the rights and remedies available to Landlord hereunder or by law in the
case of non-payment of Base Rent.

 

3.                                       Impositions.

 

(a)     For
purposes of this Lease, the following terms shall have the following meanings:

 

(i)                                     “Impositions”
shall mean all real estate taxes, assessments, special assessments, water meter,
sewer rents and water charges, all other taxes and charges of every kind and
nature whatsoever, ordinary or extraordinary, foreseen or unforeseen, general
or special, levied or imposed upon the Premises and the Land (collectively, the
“Property”), but shall not include any franchise, excise, corporate,
estate, inheritance, succession, capital levy or transfer tax of Landlord or
any income, profits or revenue tax upon the income of Landlord.  Subject to the foregoing, if at any time
during the term of this Lease, the present method of taxation or assessment
shall be so changed that the whole or any part of the taxes, assessments,
levies, impositions, or charges now levied, assessed or imposed on the Premises
and the Land shall be levied, assessed or imposed wholly or partially as a
capital levy or otherwise on the rents received by a landlord from real estate
or the rents reserved herein or any part thereof or any franchise, income,
profits, sales, rental, use or occupancy, or other taxes shall be substituted
for the current Impositions, then such taxes, assessments, levies, impositions
or charges, to the extent so levied, assessed or imposed shall be deemed to be
included within the term “Impositions” to the extent that such tax would
be payable if the Premises were the only property of the Landlord subject
thereto.

 

(ii)                                  “Tax
Year” shall mean each period of twelve (12) months, commencing on the first
day of July of each such period, in which occurs any part of the

 

2

 

Term, or such other
period of twelve (12) months occurring during the Term as hereafter may be duly
adopted as the fiscal year for real estate tax purposes of the City of New
York.

 

(b)     For each
Tax Year during the Term, Tenant shall pay all Impositions directly to the
governmental authority charged with the collection thereof as and when same are
due and payable (subject to Tenant’s right to contest same pursuant to Section
3(c) hereof) and shall deliver to Landlord copies of the receipted bills or
other evidence satisfactory to Landlord showing the payment of such Impositions
promptly following Landlord’s request therefor. 
In respect of any Tax Year which terminates after the Expiration Date,
the Impositions payable by Tenant in respect of each such Tax Year, or any
refund of Impositions (whether received by Landlord or Tenant) shall be
prorated between Landlord and Tenant for the applicable period.  Tenant may pay any Impositions in
installments to the extent permitted by law. 
Landlord shall deliver a copy of any bill or invoice that it receives
for Impositions to Tenant within seven (7) business days after Landlord’s
receipt thereof.  Tenant shall deliver
evidence of payment of Impositions to Landlord within seven (7) business days
after payment of the same.

 

(c)     Subject
to the provisions of Article 7 of the Agreement of Purchase and Sale, and
subject to the joint control provided for below in this Section 3(c),
for each Tax Year during the Term, Tenant may, from time to time, contest any
Imposition and/or the assessed valuation of the Property for the purpose of
reducing the Impositions payable by Tenant (it being understood that Tenant
shall be required to pay the Imposition in question prior to the initiation of
such contest proceeding).  Tenant agrees
to promptly notify Landlord in the event Tenant commences proceedings to
contest Impositions or to obtain a reduction of the assessed valuation of the
Premises for any Tax Year.  In the event
Tenant has not commenced the appropriate proceedings to obtain a reduction of
the assessed valuation of the Property and the Land for any Tax Year on or
prior to fifteen (15) days from the last date on which such proceedings may be
commenced, then Landlord shall have the right, but not the obligation, to
commence, prosecute and settle such proceedings.  Each such proceeding initiated by Tenant as
aforesaid shall be conducted under the joint control of Landlord and Tenant
(except as may be otherwise provided in Article 7 of the Agreement of
Purchase and Sale) and Tenant shall have the right to select certiorari counsel
with respect to any such proceeding.  If
Tenant shall desire to approve or accept the settlement of any such proceeding
and Landlord does not agree to do so, then such settlement shall not be
approved or accepted by Tenant and the following procedure shall apply:
(i) Tenant shall bear the cost of the Imposition in question under this Article 3
as if such settlement were approved and accepted; (ii) Tenant shall bear
the expenses of prosecuting such proceeding as if such settlement had been
approved and accepted; (iii) Landlord shall assume full control of such
proceeding and reimburse Tenant for the portion of such Imposition previously
paid by Tenant which Tenant would have received if such settlement would have
been approved and accepted; (iv) such deemed settlement shall be applicable to
subsequent Tax Years, as applicable, under this Article 3; (v) the
benefit or burden of any further reduction or increase in the amount of the
Imposition in question shall inure to the benefit of or be borne by Landlord,
and Landlord shall bear the incremental expenses of such proceeding allocable
to such further reduction, if any; and (vi) Landlord shall receive the
aggregate refund of the Imposition in question (or portion thereof) when paid
by the applicable authority.  Each such
proceeding initiated by Landlord as aforesaid shall be conducted under the sole
control of Landlord, in

 

3

 

which case (A) Tenant shall bear the Imposition in question under this Article 3
as if such proceeding had not been conducted and (B) the benefit of any
reduction in the amount of the Imposition in question shall inure to the
benefit of Landlord and Landlord shall bear the cost and expenses of conducting
such proceeding.

 

(d)     Tenant
shall bring any contest or proceeding referred to in Section 3(c) at its
own expense and in its own name, or, at Tenant’s option, in Landlord’s
name.  Landlord agrees to offer no
objection to such contest or proceeding and, at the request of Tenant, and at
Tenant’s sole cost and expense, to cooperate with Tenant in effecting such
contest or proceeding, including, without limitation, executing any and all
documents reasonably necessary in connection with such contest or proceeding.

 

(e)     If, by
reason of any contest or proceeding conducted by Tenant or otherwise, all or
any part of the amount of any Imposition paid by Tenant or Landlord shall be
refunded or returned to the other party (who shall not be entitled to keep all
or any portion of such refund), such party shall promptly pay over such refund,
or the appropriate pro rata share thereof, less the reasonable cost of
obtaining such refund, to the other party.

 

4.                                       Use of Premises.

 

(a)     Tenant
currently occupies the Premises and accordingly agrees that (i) Tenant and any
person or entity controlling, controlled by, or under common control with,
Tenant, or to a parent or subsidiary corporation of Tenant (collectively, an “Affiliate”)
and (ii) any entity with whom Tenant has a business relationship (other than
solely a landlord and tenant relationship), and (iii) Tenant’s permitted
subtenants, may use and occupy the Premises for the conduct of its or their
respective businesses therein and for such other uses as are ancillary thereto.

 

(b)     Tenant
shall not use or occupy or permit the Premises to be used or occupied, nor do
or permit anything to be done in or on the Premises or any part thereof, in a
manner that would in any way violate any of the laws or any certificate of
occupancy affecting the Premises, or make void or voidable any insurance then
in force with respect thereto, or that will cause structural injury to the
Premises or any part thereof, or that will constitute waste.  Nothing contained in this Lease and no action
or inaction by Landlord shall be deemed or construed to mean that Landlord has
granted to Tenant any right, power or permission to do any act or to make any
agreement that may create, any right, title, interest, lien, charge or other
encumbrance upon the estate of Landlord in the Premises.  Notwithstanding anything to the contrary
contained in this Article 4, Tenant shall be permitted to use and occupy
the Premises in the same manner that it has used and occupied the Premises for
the conduct of its business in the ordinary course of its business except to
the extent provided in this Section 4(b).

 

5.                                       Condition of Premises and
Delivery of Possession.

 

Tenant currently occupies the Premises and accordingly
agrees to accept the Premises in their “as is” condition and understands and
agrees that Landlord shall not be required to perform any work, supply any
materials or incur any expense to prepare the Premises for Tenant’s occupancy.

 

4

 

6.                                       Repairs and Maintenance.

 

(a)     Tenant
shall promptly throughout the term of this Lease (subject to the provisions of Section 6(c)
below), at Tenant’s cost and expense, maintain the Premises in the condition
existing on the date hereof, subject to reasonable wear and tear, and deliver
possession of the Premises upon the expiration or earlier termination of this
Lease in the “Delivery Condition” (as such term is defined on Exhibit D  annexed hereto).  Tenant shall not commit or suffer to be
committed any waste upon or about the Premises, and shall promptly at its cost
and expense, make all necessary replacements, restorations, renewals and repairs
to the Premises and appurtenances thereto, whether interior or exterior,
facade, structural or nonstructural, ordinary or extraordinary, and foreseen or
unforeseen, reasonable wear and tear excepted. 
Repairs, restorations, renewals and replacements shall be, to the extent
possible, at least equivalent in quality, at Tenant’s election, to either (i)
the original work or (ii) current first class standards of the property
replaced, as the case may be.  Tenant
shall not make any claim or demand upon or bring any action against the
Landlord for any loss, cost, injury, damage or other expense caused by any
failure or defect, structural or nonstructural, of the Premises or any part
thereof.

 

(b)     Landlord
shall not under any circumstances be required to build any improvements on the
Premises, or to make any repairs, replacements, alterations or renewals of any
nature or description to the Premises, whether interior or exterior, ordinary
or extraordinary, structural or nonstructural, foreseen or unforeseen, or,
except as provided in Section 6(c) below, to make any expenditure
whatsoever in connection with this Lease or to inspect or maintain the Premises
in any way.  Tenant hereby waives the
right to make repairs, replacements, renewals or restorations at the expense of
Landlord pursuant to any laws.

 

(c)     With
respect to capital expenditures relating to (i) the façade of the Premises
(exclusive of the windows) or (ii) the structure of the Premises, which are
reasonably required to maintain the Premises or are required to comply with
present or future laws of public authorities in respect of the Premises and
which do not arise out of Tenant’s occupancy of the Premises (as opposed to the
mere occupancy of the Premises by a tenant) or the negligence or willful
misconduct of Tenant, Tenant’s employees or contractors, the cost thereof
incurred by Tenant and reasonably approved by Landlord shall be shared between
Landlord and Tenant with Tenant’s share of such capital expenditure being equal
to the product of (A) the cost of such capital expenditure multiplied by (B) a
fraction, the numerator of which is the remaining Term of this Lease and the
denominator of which is the useful life of the item which is the subject of
such capital expenditure, and the balance of the cost of such capital
expenditure being paid by Landlord.  In
the event of any such capital expenditure in excess of One Hundred Thousand
Dollars ($100,000.00), Tenant shall bid the work to at least three (3)
qualified, reputable contractors reasonably satisfactory to Landlord, and then
the lowest acceptable bid shall be presumptively deemed to be reasonable.  With respect to any capital expenditures
relating to (i) the façade of the Premises (exclusive of the windows) or (ii)
the structure of the Premises, Landlord shall have the right to oversee the
performance thereof and shall have the right to approve (which approval shall
not be unreasonably withheld, conditioned or delayed) all material decisions
with respect to the design and performance thereof.

 

5

 

7.                                       Alterations.

 

(a)     Tenant
shall be permitted to make, without Landlord’s consent, alterations to the
Premises that do not constitute a Material Alteration.  For purposes hereof, a “Material Alteration”
shall mean any alteration that: (i) changes the gross square feet of the
Premises; (ii) affects the portions of the Premises that have been
landmarked by the Landmarks Preservation Commission of the City of New York;
(iii) is not limited to the interior of the Premises or which affects the
exterior of the Premises (except that Tenant shall be permitted to have
protrusions through the windows or other existing openings of the Premises),
(iv) is structural, (v) materially and adversely affects the Premises’ building
systems (other than using same in accordance with Tenant’s current practices)
or (vi) requires a change to the Premises’ certificate of occupancy.  Tenant shall not make any Material Alteration
without Landlord’s prior written consent (which consent shall not be
unreasonably withheld, conditioned or delayed in the case of an alteration that
constitutes a Material Alteration solely by reason of clause (iii) or clause
(iv) or clause (vi) of the foregoing definition thereof).

 

(b)     All alterations
made or installed by or on behalf of Tenant, shall immediately upon completion
or installation thereof be and become the property of Landlord and shall remain
upon the Premises at the Expiration Date or sooner termination of this Lease.  Tenant shall, at Tenant’s expense, (i) cause
all plans and specifications for alterations to be filed with the governmental
agencies having jurisdiction thereover, and (ii) obtain when necessary all
governmental permits, licenses and authorizations required for the work to be
done in connection therewith.  Landlord
shall execute such documents as may be reasonably required in connection with
the foregoing and Landlord shall otherwise cooperate with Tenant in connection
with obtaining the foregoing, but without any expense to Landlord.  In no event shall Tenant be required to
remove or restore any alterations at the end of the Term.

 

8.                                       Utilities.

 

Tenant shall provide at its own expense, fuel, heat,
water, electricity, steam and all other utilities required in connection with
Tenant’s use of the Premises and pay for the cost of such utilities directly to
the utility providers.

 

9.                                       Compliance with Laws.

 

(a)     Tenant
shall give prompt notice to Landlord of any notice it receives of the violation
of any law or requirement of any public authority with respect to the Premises
or the use or occupation thereof.  Tenant
shall, at Tenant’s expense, comply with all present and future laws and
requirements of any public authorities in respect of the Premises or the use
and occupation thereof, or the abatement of any nuisance in, on or about the
Premises.  No abatement, diminution or
reduction in Base Rent, additional rent or any other charges required to be
paid by Tenant pursuant hereto shall be claimed by or allowed to Tenant for any
inconvenience or interruption, cessation, or loss of business caused directly
or indirectly, by any present or future laws, or by priorities, rationing or
curtailment of labor or materials, or by war, civil commotion, strikes or
riots, or any manner or thing resulting therefrom, or by any other cause or
causes beyond the control of Landlord or Tenant, nor shall this Lease be
affected by any such causes; and no diminution in the amount of the space used
by Tenant caused by legally

 

6

 

required changes in the construction, equipment, fixtures, motors,
machinery, operation or use of the Premises shall entitle Tenant to any
abatement, diminution or reduction of the rent or any other charges required to
be paid by Tenant pursuant to the terms of this Lease.  To the extent that any alterations are
required to be performed to any portion of the Premises in order for Tenant to
legally occupy such portion of the Premises, Tenant shall have the right, in
lieu of performing such alteration, to discontinue its use and occupancy of
such portion of the Premises (it being understood that Tenant shall remain
obligated with respect to such portion of the Premises in all other respects
under the provisions of this Lease).

 

(b)     Tenant
shall not be required to comply with any law or requirement of any public
authority, and Landlord shall not effect any such compliance for which Tenant
is responsible, so long as Tenant shall be contesting the validity thereof, or
the applicability thereof to the Premises, in accordance with Section 9(c)
hereof.

 

(c)     Tenant,
at its expense, after notice to Landlord, may contest, by appropriate
proceedings prosecuted diligently and in good faith, the validity, or
applicability to the Premises, of any law or requirement of any public
authority and may defer compliance therewith during the pendency of such
contest, provided that Landlord shall not be subject to criminal penalty or to
prosecution for a crime, or any other fine or charge (civil, criminal or otherwise),
nor shall the Premises or any part thereof or the Land, or any part thereof, be
subject to being condemned or vacated or have any lien or attachment actually
occur, by reason of non-compliance or otherwise by reason of such contest.  Tenant shall keep Landlord advised as to the
status of such proceedings.  Landlord
shall be deemed subject to prosecution for a crime if Landlord, or its managing
agent, or any officer, director, partner, shareholder or employee of Landlord
or its managing agent, as an individual, is charged with a crime of any kind or
degree whatever, whether by service of a summons or otherwise, unless such
charge is withdrawn before Landlord or its managing agent, or such officer,
director, partner, shareholder or employee of Landlord or its managing agent
(as the case may be) is required to plead or answer thereto.

 

10.                                 Insurance.

 

(a)     Tenant,
in its name, shall obtain and keep in full force and effect during the Term, at
Tenant’s own cost and expense, and in the name of (y) Landlord and (z) any
Superior Mortgagee and Superior Lessor, which entities shall be added as an
additional named insured provided Tenant has been given written notice to do so
(except that Landlord and any Superior Mortgagee and Superior Lessor need not
be named on any worker’s compensation policy): (i) ”all risk” insurance in
amounts sufficient to provide one hundred (100%) percent of the full
replacement cost of the Premises, as may be reasonably approved by Landlord and
any applicable Superior Mortgagee, which insurance shall not contain any
exclusion for terrorism or act of terrorism to the extent such terrorism
insurance is being carried by other prudent owners of comparable office
buildings in midtown Manhattan; and (ii) the other insurance coverages listed on
Exhibit B  (collectively, “Tenant’s
Insurance”).

 

Notwithstanding the foregoing, from and after September 1,
2005, and so long as Landlord is an affiliate of Tishman Speyer Properties,
L.P., Tishman Speyer Crown Equities or Tishman Speyer Real Estate Venture VI,
L.P., and Tishman Speyer Properties, L.P. is Landlord’s managing agent with
respect to Landlord’s interest in the Premises (the “Tishman Period”),

 

7

 

Landlord shall place, carry and maintain in full force and effect all
of Tenant’s Insurance (exclusive of liability coverage and workman’s
compensation coverage and coverage for Tenant’s improvements and betterments
and personal property, which shall continue to be placed by Tenant) and Tenant
shall pay to Landlord the cost thereof (at Landlord’s cost without mark-up or
profit) reasonably allocated to the Premises by Landlord in accordance with
Landlord’s customary practices and formulas for allocation of such premiums
generally in its portfolio on a consistent basis (“Tenant’s Annual Insurance
Payment”).  The “all risk” insurance
shall not contain any exclusion for terrorism or acts of terrorism (A) to the
extent the same is commercially available or (B) if Landlord so elects, to the
extent such insurance is being carried by other prudent owners of comparable
office buildings in midtown Manhattan.

 

In the event of any dispute with respect to the
allocation of premiums to the Premises, such dispute shall be resolved by
expedited arbitration in accordance with the expedited arbitration rules of the
American Arbitration Association with provisions for reasonable discovery;
provided that pending resolution of such dispute, Tenant shall pay for such
premiums in accordance with Landlord’s allocation.  In the event it is determined that Tenant has
overpaid for such premiums, Landlord shall refund such overpayment together
with interest at the prime rate as published in The New York Times from
the date of such payment to the date of reimbursement.

 

At any time after the Tishman Period, any successor
landlord which is a Qualified Transferee (as defined in Article 36
below) hereunder shall continue to place, carry and maintain in full force and
effect all of Tenant’s Insurance as provided in this Section 10(a); provided,
however, that Tenant’s Annual Insurance Payment shall not exceed the amount of
the last such Tenant’s Annual Insurance Payment payable during the Tishman
Period.

 

(b)     Tenant’s
Insurance shall be obtained from and maintained with reputable and financially
sound insurance company(ies) authorized to issue such insurance in the State of
New York and otherwise reasonably approved by Landlord and any applicable
Superior Mortgagee.  Tenant shall cause
to be included in all Tenant’s Insurance a provision to the effect that the
same will be non-cancelable except upon thirty (30) days written notice to
Tenant, Landlord, any Superior Mortgagee and any Superior Lessor.  On the Commencement Date, Tenant shall
furnish Landlord (and any Superior Mortgagee and Superior Lessor) with
duplicate original(s) or original certificate(s) together with true copy(ies)
of all such insurance policies described in Section 10(a), together
with written evidence that the premiums therefor have been paid.  Not less than thirty (30) days prior to the
expiration of any such insurance policy, Tenant shall deliver to Landlord (and
any Superior Mortgagee and Superior Lessor) a certificate evidencing the
replacement or renewal thereof, together with written evidence that the
premiums therefor have been paid together with true and correct copies of all
such policies.

 

(c)     Tenant
shall cause to be included in its property insurance policy a waiver of the
insurer’s right of subrogation against Landlord, or if such waiver should be
unobtainable or unenforceable, an express agreement that such policy shall not
be invalidated if the insured waives or has waived before the casualty the
right of recovery against any party responsible for a casualty covered by the
policy.  If such waiver, agreement or
permission shall not be, or shall cease to be, obtainable without additional
charge or at all, Tenant shall so notify Landlord promptly after learning
thereof.  In such case, if Landlord shall
agree in writing to pay the 

 

8

 

insurer’s additional charge therefor, such waiver, agreement or
permission shall be included in the policy.

 

(d)     To the
extent Landlord is placing, carrying and maintaining Tenant’s Insurance as
provided in Section 10(a), Landlord waives any right of recovery against Tenant
or any other permitted occupant of the Premises for any loss occasioned by fire
or other casualty arising out of Tenant’s or such parties’ acts, omissions or
negligence which is an insured risk under such policies.

 

(e)     Tenant
hereby releases Landlord and all Landlord Parties (as hereinafter defined),
with respect to any claim (including a claim for negligence) which it might
otherwise have against the other party, for loss, damage or destruction with
respect to its property occurring during the term of this Lease.  “Landlord Party” shall mean (i) any
principal, partner, member, officer, stockholder, director, employee or agent
of Landlord or of any partner or member of any partnership constituting
Landlord, disclosed or undisclosed, (ii) any Superior Lessor or any principal,
partner, member, officer, stockholder, director, employee or agent thereof, and
(iii) any Superior Mortgagee or any principal, partner, member, officer,
stockholder, director, employee or agent thereof.

 

(f)     Prior to
September 1, 2005, Landlord shall deliver to Tenant true and correct
copies of the insurance policies covering the Premises which are maintained by
Landlord during the Tishman Period as provided in Section 10(a)
above.

 

11.                                 Damage Or Destruction.

 

(a)     If the
Premises or any part thereof shall be damaged by fire or other casualty, Tenant
shall give prompt notice thereof to Landlord, and Tenant shall proceed with
reasonable diligence to repair, restore, rebuild or replace the damaged or
destroyed improvements, fixtures or equipment, and complete the same as soon as
reasonably possible, to the condition they were in prior to such damage or
destruction, at Tenant’s sole cost and expense.

 

(b)     The
obligation to pay Rent provided for herein and to otherwise perform Tenant’s
obligations hereunder shall continue unabated by reason of such damage or
destruction; that is, there shall be no abatement or diminution of Rent or
release from any of Tenant’s obligations hereunder by reason of such damage or
destruction regardless of the period of time, if any, during which the Premises
or any part thereof remain untenantable, any applicable laws to the contrary
notwithstanding.

 

(c)     Promptly
after any damage or destruction to the Premises by fire or other casualty,
Tenant shall submit proof of loss statements to the insurance company(ies)
under the policies of casualty insurance and provide Landlord (and any named
Superior Mortgagee or Superior Lessor) with a copy of all such submitted
statements.  Landlord (and any named
Superior Mortgagee or Superior Lessor) shall have the right to participate with
Tenant in the adjustment, collection and compromise of any and all claims under
all policies of casualty insurance and to execute and deliver on behalf of
Tenant all necessary proofs of loss, receipts, vouchers and releases required
by the insurers, which submissions shall be subject to Tenant’s approval, which
approval shall not be unreasonably withheld, conditioned or delayed and shall
be deemed granted if Tenant shall not have responded within seven (7) business days
after

 

9

 

Landlord’s request for same, provided that Landlord’s request for such
approval states that such Tenant’s approval shall be deemed granted if Tenant
does not respond within seven (7) business days.  Tenant shall not settle any claim without the
prior written approval of Landlord, which approval shall not be unreasonably
withheld, conditioned or delayed. If Landlord is maintaining the applicable
insurance policy covering the Premises during the Tishman Period as provided in
Section 10(a) above, then Landlord shall not settle any claim for
more than $500,000 without the prior written approval of Tenant, which approval
shall not be unreasonably withheld, conditioned or delayed and shall be deemed
granted if Tenant shall not have responded within seven (7) business days after
Landlord’s request for same, provided that Landlord’s request for such approval
states that such Tenant’s approval shall be deemed granted if Tenant does not
respond within seven (7) business days.

 

(d)     The
provisions of this Article 11 shall be deemed an express agreement
governing any case of damage or destruction of the Premises by fire or other
casualty, and Section 227 of the Real Property Law of the State of New
York, providing for such a contingency in the absence of an express agreement,
and any other law of like import, now or hereafter in force, shall have no
application in such case.

 

(e)    
Notwithstanding anything to the contrary contained in this Article 11,
in the event the cost to repair or restore the Premises shall exceed fifty
percent (50%) of the replacement cost of the Premises and such casualty shall
occur on a date occurring more than fifteen (15) months after the Commencement
Date, then Tenant shall have the right within ninety (90) days after the date
of such casualty to elect to terminate the Lease by written notice to Landlord
(which termination shall be effective on the date that is sixty (60) days after
the giving of such written notice) and to not restore the Premises, in which
event Tenant shall pay to Landlord the amount of any deductible under the
applicable casualty policy and if Tenant is maintaining the applicable insurance
covering the Premises, Tenant shall assign to Landlord all of its right, title
and interest in the proceeds of Tenant’s insurance arising out of such
casualty, exclusive, however, of Tenant’s business interruption proceeds which
shall remain the property of the Tenant. 
Such assignment shall be by instrument(s) in form and substance
reasonably satisfactory to Landlord and its lenders.  Tenant shall otherwise reasonably cooperate
with Landlord in connection with the collection of any such proceeds.  If Tenant shall elect to terminate this Lease
as provided in this Section 11(e), then this Lease and the estate
granted hereby shall terminate on the effective date of such termination as
aforesaid with the same force and effect as if such date were the Expiration
Date (and the provisions of Sections 21 and 34 shall apply with respect
thereto).  Tenant shall not be obligated
to make such repairs or continue to pay rent under this Lease accruing from and
after the effective date of such termination, and Tenant shall be released from
all further liability or obligation under this Lease first accruing from and
after the effective date of such termination (other than any such liability or
obligation which survive the expiration or sooner termination of this Lease by
their express terms).

 

12.                                 Condemnation.

 

(a)     If the
whole of the Premises be taken under the power of eminent domain for any public
or quasi-public improvement or use, the Term shall expire as of the date of
vesting of title in the condemning authority.

 

10

 

(b)     If less
than all of the Premises is taken, and in Tenant’s reasonable judgment, the
remainder shall be suitable for Tenant’s use, this lease shall remain in full
force and effect, however, Base Rent shall be reduced in proportion to the
percentage of square feet of the Premises so taken.

 

(c)     If this
Lease is not terminated under the provisions of this Article 12, Tenant
shall, with reasonable dispatch and at Tenant’s sole cost and expense, restore,
reconstruct and rebuild the remaining portion of the Premises and all the
appurtenances, equipment, utilities, facilities and installations to their
condition prior to such taking, in such manner that the resulting Premises
shall be a complete and integrated structural, architectural and functional
unit similar to and of equal material and workmanship to the Premises.

 

(d)    
Notwithstanding that the nature of the work to be performed as a result
of the taking may be such as to prevent the operation of the business then
being conducted thereon, or to make it impractical so to do, the Rent and other
charges to be paid by Tenant under this Lease shall in no event abate during
the performance of such work by Tenant.

 

(e)     In the
event of any taking under the power of eminent domain, Landlord shall be
entitled to and shall receive the entire award, except that Tenant shall be
entitled to and shall receive any part of any award made for Tenant’s cost of
moving Tenant’s trade fixtures.

 

13.                                 Subordination.

 

(a)     Subject
to the provisions of Section 13(d) hereof, this Lease, and all rights of
Tenant hereunder, are and shall be subject and subordinate to all other ground
leases or underleases or mortgages which may now or hereafter affect the Premises,
and to all renewals, modifications, replacements and extensions of such
mortgages and spreaders and consolidations of such mortgages.  This Section 13(a) shall be
self-operative and no further instrument of subordination shall be
required.  In confirmation of such
subordination, Tenant shall promptly execute, acknowledge and deliver any
instrument that Landlord, the lessor under any ground or underlying lease or
the holder of any such mortgage or any of their respective successors in
interest may reasonably request to evidence such subordination.  Any mortgage to which this Lease is, at the
time referred to, subject and subordinate is herein called a “Superior Mortgage”
and the holder of a Superior Mortgage is herein called a “Superior Mortgagee”.  Any ground lease or underlying lease to which
this Lease is, at the time referred to, subject and subordinate is herein
called a “Superior Lease” and the lessor under a Superior Lease is herein
called a “Superior Lessor”.

 

(b)     Landlord
hereby represents that, to Landlord’s actual knowledge, the only existing
Superior Mortgage as of the date hereof is that certain [TO BE COMPLETED UPON
EXECUTION OF THIS LEASE] (the “Existing Mortgage”).

 

(c)    
Concurrently with execution of this Lease, Landlord, Tenant and the
Superior Mortgagee under the Existing Mortgage, have executed a subordination,
non-disturbance and attornment agreement (an “SNDA Agreement”) with
respect to the Existing Mortgage in the form annexed hereto as Exhibit C-1, with such reasonable
changes thereto as

 

11

 

may be requested by the applicable Superior Mortgagee provided such
changes are reasonably acceptable to Tenant.

 

(d)     With
respect to future Superior Mortgages and Superior Leases, the provisions of Section 13(a)
hereof shall be conditioned upon the execution, acknowledgment and delivery by
and between Tenant and any such Superior Mortgagee or Superior Lessor, of an
agreement which:

 

(i)                                     shall
provide in substance that so long as no default exists hereunder beyond any
applicable grace period (if any), Tenant shall not be disturbed in its
possession of the Premises pursuant to the provisions of this Lease; and

 

(ii)                                  shall
not materially reduce the rights of Tenant except to a de minimus extent or
increase the obligations of Tenant except to a de minimus extent in either case
as compared to the forms of SNDA Agreement attached hereto as Exhibit C-1 or Exhibit
C-2, as the case may be.

 

14.                                 Indemnification.

 

(a)     Tenant
shall indemnify, defend, save and hold Landlord and each Landlord Party
harmless from and against any and all claims, liabilities and damages and any
and all injury, loss, cost, claim, damage or suit of every kind and nature
(including, without limitation, reasonable attorneys’ fees and costs), to any
person, firm, association or corporation or to any property, arising out of or
based upon, related to, or in any way connected with the use, misuse,
occupancy, possession or unoccupancy of the Premises by Tenant or any Tenant
Party (as hereinafter defined) or the conduct or operation of Tenant’s business
or from the condition of the Premises, or the breach of any covenant or other
obligation of Tenant under this Lease, except to the extent such injury, loss,
claim or damage is caused by the gross negligence of Landlord or its agents,
contractors, invitees, servants or employees.

 

(b)     Subject
to the provisions of Section 10(d) hereof, Landlord shall indemnify,
defend, save and hold Tenant harmless from and against any and all claim,
liability and damages and any and all injury, loss, claim, damage or suit of
every kind and nature, to any person, firm, association or corporation or to
any property, arising out of or based upon, related to, or in any way connected
with, Landlord’s affirmative acts or entry onto the Premises, or Landlord’s
failure to comply with its obligations to maintain insurance during the Tishman
Period as provided in Section 10(a) hereof, unless such injury,
loss, claim or damage is attributable to the gross negligence of Tenant or its
agents, contractors, invitees, servants or employees.

 

(c)     Neither
party shall be liable hereunder for consequential damages; provided, however,
that nothing contained herein shall affect or impair Tenant’s liability, if
any, under Article 34 hereof.

 

15.                                 Assignment and Subletting.

 

(a)     Except
as provided in Section 15(b) hereof, neither this Lease nor the term and
estate hereby granted, nor any part hereof or thereof, shall be assigned,
mortgaged, pledged,

 

12

 

encumbered or otherwise transferred voluntarily, involuntarily, by
operation of law or otherwise (any of the foregoing being referred to herein as
an “Assignment”; and the assignee or other transferee pursuant to an Assignment
being an “Assignee”), without Landlord’s prior written consent, which
consent may be granted or withheld in Landlord’s sole and absolute
discretion.  Any attempt to effect an
Assignment of this Lease in violation of this Article 15 shall be
null and void ab  initio. 
An agreement under which another person or entity becomes responsible
for all or a portion of Tenant’s obligations under this Lease shall be deemed
an assignment of this Lease.  No
Assignment of this Lease and the term and estate hereby granted shall relieve
Tenant of its liability under this Lease or of the obligation to obtain
Landlord’s prior consent to any further Assignment, and Tenant shall remain
fully liable for the payment of rent and for the performance and observance of
all other obligations of this Lease on the part of Tenant to be performed or
observed.

 

(b)     Tenant
may, without the consent of Landlord, assign this Lease to (x) any Affiliate of
Tenant (provided Tenant shall remain jointly and severally liable for all of
Tenant’s obligations hereunder and shall execute such instruments as Landlord
or its lenders may reasonably require confirming such liability) or (y) to an
entity to which Tenant sells or assigns all or substantially all of its assets
or stock or with which it may be consolidated or merged; provided such (i)
Affiliate or (ii) purchasing, consolidated or merged entity shall, in writing,
assume and agree to perform all of the obligations of Tenant under this
Lease.  Tenant shall, within ten (10)
days after execution of such assignment of Lease, deliver to Landlord a
duplicate original instrument of assignment, duly executed by Tenant, together
with an instrument, duly executed by the assignee, in which such assignee shall
assume observance and performance of, and agree to be personally bound by, all
of the terms, covenants and conditions of this Lease on Tenant’s part to be
observed and performed.

 

(c)     Tenant
shall not sublet or permit occupancy of the Premises or any, conditioned on
delayed portion thereof to any persons or entities without Landlord’s prior
written consent, which consent shall not be unreasonably withheld, conditioned
or delayed.  All subleases shall be
subject and subordinate to this Lease. 
No sublease shall be for a term ending later than one day prior to the
Expiration Date.  If any default by
Tenant hereunder shall occur and be continuing, Landlord, thereafter at its
option and without waiving any such default, may collect rent from any then
existing subtenant of the Premises. 
Notwithstanding any subletting by Tenant, and notwithstanding the
acceptance of rent by Landlord from any subtenant, Tenant shall and will remain
fully liable for the payment of the rent, for the performance and observance of
all other obligations of this Lease on the part of Tenant to be performed or
observed, and for all acts or omissions of any subtenant (or anyone claiming
under or through any subtenant) which shall be in violation of any of the terms
and conditions of the Lease, each such violation being deemed to be a violation
by Tenant.  Tenant represents and
warrants to Landlord that, as of the date hereof, other than Tenant, the
following entities occupying the following portions of the Premises are the
only third parties occupying or entitled to occupy any part of the Premises:
(i) Asahi Shinbum (pursuant to a month to month lease); (ii) New York
Times Employees Credit Union; (iii) MARUJUPU, INC.; and (iv) The New York Times
Company Foundation, which third parties, as well as any entity with whom Tenant
has a business relationship (other than a mere landlord and tenant
relationship), shall have a right to occupy space in the Building; provided,
however, that Tenant shall be responsible for all the acts or omissions of such
parties to the same extent as if such acts or omissions were those of Tenant.

 

13

 

16.                                 Landlord’s Access Rights.

 

(a)     Upon
reasonable notice to Tenant (which may be oral and need not be in writing) and
accompanied by Tenant’s designated agent or employee, Tenant shall permit
Landlord or Landlord’s agents to enter the Premises during business hours on
business days and at all other reasonable times for the purpose of (i)
inspecting the same; (ii) making repairs required by the terms of this Lease to
be made by Tenant and which Tenant neglects or refuses to make after the giving
of notice and expiration of thirty (30) day cure period (which thirty (30) day
cure period shall be extended as reasonably required to effectuate such cure
provided Tenant has commenced and is diligently pursuing such cure); (iii)
exhibiting the Premises to prospective tenants and mortgagees; and (d)
performing engineering, environmental and other similar test in and to the
Premises; provided, in each and every, case, Landlord shall not
interfere with the conduct of Tenant’s business at the Premises in any material
respect and shall be accompanied by a representative of Tenant.  Tenant agrees to make such a representative
available upon reasonable notice (which may be oral and need not be in
writing).  Landlord shall not perform
invasive testing of the Premises unless Tenant has approved such invasive
testing, which approval may be granted or withheld in Tenant’s sole and
absolute discretion.

 

(b)     Any
damage to the Premises resulting from the exercise by Landlord of its rights
granted under this Article 16 shall be promptly repaired by Landlord at
Landlord’s expense (except as provided in the following sentence).  If Landlord shall fail or neglect to perform
any such repair after the giving of notice by Tenant and expiration of a ten (10)
day cure period (which ten (10) day cure period shall be extended as reasonably
required to effectuate such cure provided Landlord has commenced and is
diligently pursuing such cure), Tenant shall have the right, at Landlord’s
expense, to repair any damage to any Tenant’s property located in the Premises
or to any property or parts of the Premises resulting from the exercise by
Landlord of its rights granted under this Article 16 (and Landlord shall
reimburse Tenant for the actual out-of-pocket expenses reasonably incurred by
Tenant in performing any such repair within thirty (30) days after delivery of
an invoice therefor, together with documentation of such expenses reasonably
satisfactory to Landlord).

 

(c)     Landlord
acknowledges that portions of the Premises may from time to time be designated
by Tenant as locked and/or inaccessible to persons unauthorized by Tenant (the “Secured
Areas”) provided they are reasonably designated by Tenant in good faith.  Notwithstanding anything to the contrary
contained in this Article 16, Landlord therefore agrees that,
except in cases of emergency, Landlord’s right of access to the Secured Areas
shall be restricted subject to the following conditions: (i) Tenant shall
deliver to Landlord floor plans or a reasonably detailed description of the
Premises designating the Secured Areas and (ii) except in cases of emergency,
any access to the Secured Areas requested by Landlord shall be upon no less
than twenty-four (24) hours notice to Tenant, which notice may be oral, and
accompanied by a representative of Tenant, whom Tenant agrees to make
available.

 

17.                                 Bankruptcy.

 

(a)     If, at
any time prior to the commencement of the Term, or if at any time during the
term, there shall be filed by or against Tenant in any court, pursuant to any
statute, either of the United States or of any State, a petition in bankruptcy
or insolvency or for

 

14

 

reorganization or for the appointment of a receiver or trustee of all
or a portion of Tenant’s property, and within one hundred twenty (120) days
thereof Tenant fails to secure a discharge thereof, or if Tenant makes an
assignment for the benefit of creditors or petition for or enters into an
arrangement, this Lease, at the option of Landlord, exercised within a
reasonable time after notice of the happening of any one or more of such
events, may be canceled and terminated, in which event neither Tenant nor any
person claiming through or under Tenant by virtue of any statute or of an order
of any court, shall be entitled to possession or to remain in possession of the
Premises but shall forthwith quit and surrender the Premises, and Landlord, in
addition to any other rights, may retain any rent, security deposit or monies
received by it from Tenant or others in behalf of Tenant as partial liquidated
damages.

 

(b)     In the
event of the termination of this Lease pursuant to Section 17(a) hereof,
Landlord shall forthwith, notwithstanding any other provisions of this Lease to
the contrary, be entitled to recover from Tenant as and for liquidated damages
an amount equal to the difference between the Rent reserved hereunder for the
unexpired portion of the term and the then fair and reasonable rental value of
the Premises for the same period.  In the
computation of such damages, the difference between any installment of Rent
becoming due hereunder after the date of termination and the fair and reasonable
rental value of the Premises for the Period for which such installment was
payable shall be discounted to the date of termination at the rate of nine
percent (9%) per annum.  If the Premises,
or any part thereof, be relet by Landlord for the unexpired term of this lease,
the amount of rent reserved upon such reletting shall prima facie be the fair
and reasonable rental value for the part or the whole of the Premises so relet
during the term of the reletting.

 

(c)     If
Tenant assumes this Lease and proposes to assign the same pursuant to the
provisions of the Bankruptcy Code to any person, firm or corporation who shall
have made its bona fide offer to accept an assignment of this Lease on terms
acceptable to Tenant, then notice of such proposed assignment shall be given to
Landlord by Tenant no later than thirty (30) days after receipt by Tenant, but
in any event no later than twenty (20) days prior to the date that Tenant shall
make application to a court of competent jurisdiction for authority and
approval to enter into such assignment and assumption.  Such notice shall set forth (i) the name and
address of such person, firm or corporation, (ii) all of the terms and
conditions of such offer, and (iii) adequate assurance of future performance by
such person, firm or corporation under the Lease as set forth in Section 17(d)
hereof, including, without limitation, the assurance referred to in Section 365(b)
(3) of the Bankruptcy Code.  Landlord
shall 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 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,
firm or corporation less any brokerage commissions which would otherwise be
payable by Tenant out of the consideration to be paid by such person, firm or
corporation in connection with the assignment of this lease.

 

(d)     The term
“adequate assurance of future performance,” as used in this Lease, shall mean
that any proposed assignee shall, among other things: (a) deposit with Landlord
on the assumption of this Lease the sum of the then annual rent and Impositions
for six (6) months (together, the “Base Annual Rent”) as security for the
faithful performance and observance by such assignees of the terms and
obligations of this Lease, which sum shall be held by Landlord in

 

15

 

a segregated, interest-bearing escrow account; (b) furnish Landlord
with financial statements of such assignee for the prior three (3) fiscal
years, as finally determined after an audit and, certified as correct by a
certified public accountant, which financial statements shall show a net worth
of at least ten (10) times the then Base Annual Rent for each of such three (3)
years; (c) grant to Landlord a security interest in such property of the
proposed assignee as Landlord shall deem necessary to secure such assignee’s
future performance under this Lease; and (d) provide such other information or
take such action as Landlord, in its reasonable judgment, shall determine is
necessary to provide adequate assurance of the performance by such assignee of
its obligations under the Lease.

 

18.                                 Default.

 

(a)     This
Lease and the term and estate hereby granted are subject to the limitation
that: (i) if Tenant shall fail to pay any installment of Base Rent or
Impositions when due, or (ii) if Tenant shall fail to pay any other item of
additional rent or other charges within ten (10) days after written notice of
non-payment, or (iii) if Tenant defaults in fulfilling any of the other
covenants of this Lease and such default shall continue for a period of forty-five
(45) days after notice thereof (provided, however, that in the case of this clause
(iii), if such default cannot with due diligence be cured within such
period of forty-five (45) days for causes beyond Tenant’s reasonable control,
if Tenant shall not promptly upon the receipt of such notice (which notice
shall advise Tenant of the provisions set forth in the following clauses (A)
and (B)) (A) advise Landlord of Tenant’s intention duly to institute all
steps necessary to cure such default and (B) institute and thereafter
diligently prosecute to completion all steps necessary to cure the same), then,
in any one or more of such events, in addition to any other remedies available
to Landlord at law or in equity, Landlord may serve a written forty-five (45)
day notice of cancellation of this Lease upon Tenant, and upon the expiration
of said forty-five (45) days, this Lease and the Term shall end and expire as
fully and completely as if the date of expiration of such forty-five (45) day
period were the day herein definitely fixed for the end and expiration of this
Lease, and the term thereof, and Tenant shall then quit and surrender the
Premises to Landlord but Tenant shall remain liable for damages as provided
herein or pursuant to law.

 

(b)     If (i)
the notice provided for in Section 18(a) hereof shall have been given and
the Term shall expire as aforesaid, or (ii) if any execution or attachment
shall be issued against Tenant or any of Tenant’s property whereupon the
Premises or any part thereof shall be taken or occupied or attempted to be
taken or occupied by someone other than Tenant, then, and in any of such
events, Landlord may, upon written notice re-enter the Premises and dispossess
Tenant (or the legal representative of Tenant or other occupant of the
Premises) by summary proceedings or other legal process and remove their
effects and hold the Premises as if this Lease had not been made.

 

19.                                 Remedies Of Landlord.

 

(a)     If this
Lease is terminated or if Landlord re-enters the Premises under Article 18
hereof or any other such default provision contained herein, Tenant shall pay
to Landlord as damages, at the election of Landlord, sums equal to the Base
Rent and additional rent that would have been payable by Tenant through and
including the Expiration Date had this Lease not terminated or had Landlord not
re-entered the Premises, payable upon the due dates

 

16

 

therefor specified in this Lease; provided, that if Landlord shall
relet all or any part of the Premises for all or any part of the period
commencing on the day following the date of such termination or re-entry to and
including the Expiration Date, Landlord shall credit Tenant with the net rents
received by Landlord from such reletting, such net rents to be determined by
first deducting from the gross rents as and when received by Landlord from such
reletting the reasonable expenses incurred or paid by Landlord in terminating
this Lease and of re-entering the Premises and of securing possession thereof,
as well as the expenses of reletting, including, without limitation, altering
and preparing the Premises for new tenants, brokers commissions, and all other
expenses properly chargeable against the Premises and the rental therefrom in
connection with such reletting, it being understood that any such reletting may
be for a period equal to or shorter or longer than said period; provided,
further, that (i) in no event shall Tenant be entitled to receive any excess of
such net rents over the sums payable by Tenant to Landlord under this Lease,
(ii) in no event shall Tenant be entitled, in any suit for the collection of
damages pursuant to this Article 19, to a credit in respect of any net
rents from a reletting except to the extent that such net rents are actually
received by Landlord prior to the commencement of such suit, and (iii) Landlord
shall have no obligation to so relet the Premises and Tenant hereby waives any
right Tenant may have, at law or in equity, to require Landlord to so relet the
Premises.

 

(b)     At any
time after the Term shall have expired and come to an end or Landlord shall
have re-entered upon the-Premises, as the case may be, whether or not Landlord
shall have collected any monthly deficiencies as provided in this Article 19,
Landlord shall be entitled to recover from Tenant, and Tenant shall pay to
Landlord, on demand, as and for liquidated and agreed final damages, a sum
equal to the amount by which the Rent reserved in this Lease for the period
which otherwise would have constituted the unexpired portion of the Term
exceeds the then fair and reasonable rental value of the Premises for the same
period, both discounted to present worth at the rate of nine percent (9%) per
cent per annum.  If, before presentation
of proof of such liquidated damages to any court, commission, or tribunal, the
Premises, or any part thereof, shall have been relet by Landlord for the period
which otherwise would have constituted the unexpired portion of the Term, or
any part thereof, the amount of Rent reserved upon such reletting shall be
deemed, prima facie, to be the fair and reasonable rental value for the part or
the whole of the Premises so relet during the term of the reletting.  Except in the case of a Bankruptcy
Proceeding, Landlord will not invoke the provisions of this Section 19(b)
to obtain liquidated and final damages so long as Tenant is paying and
continues to pay the Rent.

 

(c)     Suit or
suits for the recovery of any damages payable hereunder by Tenant or any
installments thereof, may be brought by Landlord from time to time at its
election, and nothing contained herein shall require Landlord to postpone suit
until the date when the Term would have expired but for such termination or
re-entry.

 

(d)     The
specific remedies granted to Landlord under this Lease are cumulative and are
not intended to be exclusive of each other or of any other remedies which may
be available to Landlord at law or in equity. 
Landlord may exercise any and/or all such rights and remedies (whether
specifically granted herein or otherwise available to Landlord at law or in
equity) at such times, in such order, to such extent, and as often, as Landlord
deems advisable without regard to whether the exercise of any such right or
remedy precedes, is concurrent with or succeeds the exercise of another such
right or remedy.

 

17

 

20.                                 No Waiver.

 

No act or thing done by Landlord or Landlord’s agents
during the term hereby demised 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.  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. 
The failure of Landlord to seek redress for violation of, or to insist
upon the strict performance of, any covenant or condition of this Lease shall
not prevent a subsequent act, which would have originally constituted a
violation, from having all the force and effect of an original violation.  The receipt by Landlord of Rent with
knowledge of the breach of any covenant of this lease shall not be deemed a
waiver of such breach.  No provision of
this lease shall be deemed to have been waived by Landlord unless such waiver
be in writing signed by Landlord.  The
words “re-enter” and “re-entry” as used herein are not restricted to their
technical legal meaning.

 

21.                                 End Of Term.

 

On the Expiration Date or upon the earlier termination
of the Term, Tenant shall peaceably and quietly leave, surrender and yield up
unto Landlord the Premises in the Delivery Condition and all master keys for
the Premises to Landlord and shall upon request inform Landlord of combinations
on locks, safes and vaults, if any, in the Premises.  Upon the Expiration Date (or sooner
termination date as hereinabove provided) if Tenant shall not have complied
with the preceding sentence, Landlord may without further notice enter upon,
re-enter, possess and repossess itself thereof, by summary proceedings,
ejectment or otherwise, and may have, hold and enjoy the Premises and the right
to receive all rental and other income of and from the same.  Tenant’s obligation to observe or perform the
covenants contained in this Article 21 shall survive the Expiration
Date or sooner termination of the term of this Lease.

 

22.                                 Broker.

 

(a)     Tenant
represents to Landlord that this Lease was brought about by CB Richard Ellis (“Broker”) as broker and all negotiations by Tenant and
Landlord with respect to this Lease were conducted exclusively through
Broker.  Tenant agrees that if any claim
is made for commissions by any broker other than Broker, by, through or on
account of any acts of Tenant, Tenant will indemnify, defend and hold Landlord
free and harmless from any and all claims, liabilities and expenses in
connection therewith, including Landlord’s reasonable attorneys’ fees.

 

(b)     Landlord
represents to Tenant that this Lease was brought about by Broker and all
negotiations by Landlord with respect to this Lease were conducted exclusively
through Broker. Landlord agrees that if any claim is made for commissions by
any broker other than Broker, by, through or on account of any acts of Landlord,
Landlord will indemnify, defend and hold Tenant free and harmless from any and
all claims, liabilities and expenses in connection therewith, including Tenant’s
reasonable attorney’s fees.  Broker
acknowledges and agrees that Broker is not entitled to a commission or to any
other type of compensation in connection with the consummation, execution and
delivery of this Lease.

 

18

 

23.                                 Quiet Enjoyment.

 

Landlord covenants that if and so long as Tenant pays
the Rent, and performs all the terms, covenants and conditions of this Lease on
the part of Tenant to be performed, Tenant shall quietly enjoy the Premises
subject, however, to the terms of this Lease and of any Superior Mortgage.

 

24.                                 Nonliability Of Landlord.

 

(a)     Landlord
and Landlord’s agents and employees shall not be liable for, and Tenant waives
all claims for, loss or damage to Tenant’s business or damage to person or
property sustained by Tenant resulting from any accident or occurrence (unless
caused by or resulting from the gross negligence of Landlord, its agents or
employees, other than accidents or occurrences against which Tenant is insured)
in or upon or about the Premises, including, but not limited to, claims for
damage resulting from: (i) any equipment or appurtenances becoming out of
repair; (ii) injury done or occasioned by wind; (iii) any defect in or failure
of plumbing, heating or air conditioning equipment, electric wiring or
installation thereof, gas, water, or steam pipes, stairs, porches, railings or
walks; (iv) broken glass (v) the backing up of any sewer pipe or down
spout; (vi) the bursting, leaking or running of any tank, tub, washstand, water
closet, waste pipe, drain or other pipe or tank in, upon or about the Premises;
(vii) the escape of steam or hot water; (viii) water, snow or ice being upon or
coming through the roof, skylight, trapdoor, stairs, doorways, windows, walks
or any other place upon or near the Premises or otherwise; (ix) the falling of
any fixture, plaster, tile or stucco; and (x) any act, omission or negligence
of other tenants, licensees or of any other persons or occupants of the
Premises or of adjoining or contiguous building or of owners of adjacent or
contiguous property.

 

(b)     The word
“Landlord” as used herein means only the owner in fee for the time being of the
Premises, and in the event of any sale of the Premises, Landlord shall be and
hereby is entirely freed and relieved of all covenants and obligations of
Landlord hereunder and it shall be deemed and construed without further
agreement between the parties or between the parties and the purchaser of the
Premises, that such purchaser has assumed and agreed to carry out any and all
covenants and obligations of Landlord hereunder.

 

25.                                 Applicable Law And
Construction.

 

The laws of the State of New York shall govern the
validity, performance and enforcement of this lease.  The invalidity or unenforceability of any
provision of this lease shall not affect or impair any other provision.  The submission of this document to Tenant for
examination does not constitute an offer to lease, or a reservation of or
option to lease, and becomes effective only upon execution and delivery thereof
by Landlord and Tenant.  All negotiations,
considerations, representations and understandings between the parties are
incorporated in this Lease.  Landlord or
Landlord’s agents have made no representations or promises with respect to the
Premises except as herein expressly set forth. 
The headings of the several articles and sections, contained herein are
for convenience only and do not define limit or construe the contents of such
articles or sections.  Whenever herein
the singular number is used, the same shall include the plural, and the neuter
gender shall include the masculine and feminine genders.  Neither this lease nor any provision hereof
may be changed, waived, discharged or

 

19

 

terminated orally, but
only by an instrument in writing signed by the party against whom enforcement
of the change, waiver, discharge or termination is sought.

 

26.                                 Notices.

 

Any and all notices, elections, demands, requests and
responses permitted or required to be given pursuant to this Lease shall be in
writing, signed by the party giving the same or by its attorneys, and shall be
deemed to have been duly given if sent by (a) hand delivery, (b) certified or
registered United States mail, postage prepaid, return receipt requested, or
(c) nationally recognized express overnight delivery service (e.g., Federal
Express) for next business day delivery, addressed to the other party at the
address of such other party set forth below, or at such other address within
the continental United States as may be designated by a notice of change of
address and given in accordance herewith. 
A notice shall be deemed to have been given: (i) in the case of hand
delivery, at the time of delivery; (ii) in the case of registered or certified
mail, when delivered on a business day; or (iii) in the case of overnight delivery,
upon the delivery on a business day. 
Rejection or other refusal to accept, or inability to deliver because of
changed address of which no notice has been received, shall also constitute
receipt.  Any such notice, election,
demand, request or response shall be addressed to the respective parties as
follows:

 

	
  (a)

  	
  If to Tenant, to:

  	
  The New York Times
  Company

  
	
   

  	
   

  	
  229 West 43rd Street

  
	
   

  	
   

  	
  New York, New York
  10036

  
	
   

  	
   

  	
  Attention: Herbert
  Valentine

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
  The New York Times
  Company

  
	
   

  	
   

  	
  229 West 43rd Street

  
	
   

  	
   

  	
  New York, New York
  10036

  
	
   

  	
   

  	
  Attention: Kenneth A.
  Richieri, Esq.,

  
	
   

  	
   

  	
  Deputy General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  and a copy to:

  	
  Piper Rudnick LLP

  
	
   

  	
   

  	
  1251 Avenue of the
  Americas

  
	
   

  	
   

  	
  New York, New York
  10020

  
	
   

  	
   

  	
  Attention: Martin D.
  Polevoy, Esq.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
  If to Landlord, to:

  	
  Tishman Speyer
  Development, L.L.C.

  
	
   

  	
   

  	
  c/o Tishman Speyer
  Properties, L.P.

  
	
   

  	
   

  	
  520 Madison Avenue, 6th
  Floor

  
	
   

  	
   

  	
  New York, New York
  10022

  
	
   

  	
   

  	
  Attention: Chief Legal
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
  Tishman Speyer
  Development, L.L.C.

  
	
   

  	
   

  	
  c/o Tishman Speyer
  Properties, L.P.

  
	
   

  	
   

  	
  520 Madison Avenue, 6th
  Floor

  
	
   

  	
   

  	
  New York, New York
  10022

  
	
   

  	
   

  	
  Attention: Chief
  Financial Officer

  

 

20

 

	
   

  	
  and a copy to:

  	
  Fried, Frank, Harris,
  Shriver & Jacobson LLP

  
	
   

  	
   

  	
  One New York Plaza

  
	
   

  	
   

  	
  New York, New York
  10004

  
	
   

  	
   

  	
  Attention: Jonathan L.
  Mechanic, Esq.

  
	
   

  	
   

  	
  Facsimile No.: (212)
  859-4000

  

 

27.                                 Binding Effect Of Lease.

 

The covenants, agreements and obligations contained in
this Lease shall, except as herein otherwise provided, extend to, bind and
inure to the benefit of the parties hereto and their respective
representatives, heirs, successors and permitted assigns.  Each covenant, agreement, obligation or other
provision herein contained shall be deemed and construed as a separate and independent
covenant of the party bound by, undertaking or making the same, not dependent
on any other provision of this lease unless otherwise expressly provided.

 

28.                                 Cleaning, Rubbish Removal.

 

(a)     All
janitorial work at the Premises shall be performed at the cost and expense of
Tenant.  Tenant shall provide for its own
trash, rubbish, garbage and snow removal at its own expense
and all rubbish, trash, garbage and snow shall be kept at the Premises subject
to the rules and regulations of the appropriate municipal authorities having
jurisdiction thereof, and shall at all times be kept in closed containers
reasonably acceptable to Landlord.

 

(b)     Tenant
shall provide any security for the Premises desired by Tenant at Tenant’s own
cost and expense.

 

29.                                 Entire Agreement.

 

This Lease contains the entire agreement between the
parties and all prior negotiations and agreements are merged herein.  Neither Landlord nor Landlord’s agent or
representative has made any representation, or statement, or promise, upon
which Tenant has relied regarding any matter or thing relating to the Premises,
the land allocated to it, or any other matter whatsoever, except as is
expressly set forth in this Lease, including, but without limiting the
generality of the foregoing, any statement, representation or promise as to the
fitness of the Premises for any particular use, the services to be rendered to
the Premises or the prospective amount of any item of additional rent.  No oral or written statement, representation
or promise whatsoever with respect to the foregoing or any other matter made by
Landlord, its agents or any broker, whether contained in an affidavit,
information circular, or otherwise shall be binding upon the Landlord unless
expressly set forth in this Lease.  No rights,
easements or licenses are or shall be acquired by Tenant by implication or
otherwise unless expressly set forth in this Lease.  This Lease may not be changed, modified or
discharged, in whole or in part, orally, and no executory agreement shall be effective
to change, modify or discharge, in whole or in part, this lease or any
obligations under this Lease, unless such agreement is set forth in a written
instrument executed by the party against whom enforcement of the change,
modification or discharge is sought.  All
references in this Lease to the consent or approval of Landlord shall be deemed
to mean the written consent of Landlord, or the written approval of Landlord,
as the case may be, and no

 

21

 

consent or approval of
Landlord shall be effective for any purpose unless such consent or approval is
set forth in a written instrument executed by Landlord.  Landlord and Tenant understand, agree, and
acknowledge that (i) this Lease has been freely negotiated by both parties;
(ii) Landlord and Tenant are sophisticated in real estate matters or have
employed professionals to assist Landlord and Tenant in the negotiation of this
Lease; and (iii) that, in any controversy, dispute, or contest over the meaning,
interpretation, validity, or enforceability of this Lease or any of its terms
or conditions, there shall be no inference, presumption, or conclusion drawn
whatsoever against either party by reason of that party having drafted this
Lease or any portion thereof.

 

30.                                 Captions And Index.

 

The captions and the index at the beginning of this
Lease, if any, are included only as a matter of convenience and for reference,
and in no way define, limit or describe the scope of this Lease nor the intent
of any provisions thereof.

 

31.                                 Recovery From Landlord.

 

Tenant shall look solely to the estate and property of
Landlord in the Land and Premises for the satisfaction of Tenant’s remedies in
the event of any default or breach by Landlord with respect to any of the terms,
covenants and/or conditions of this Lease to be observed and/or performed by
Landlord, and no other property or assets of Landlord shall be subject to levy,
execution or other enforcement procedure for the satisfaction of Tenant’s
remedies; and Tenant agrees that it shall not sue for, seek or demand any money
or other judgment against any Affiliate of Landlord, any direct or indirect
member, manager, shareholder, partner, beneficiary or other owner of a direct
or indirect beneficial ownership interest in Landlord or such affiliate, or any
director, officer, employee, trustee, or agent of any of the foregoing in any
action or proceeding under or by reason of or in connection with this Lease.

 

32.                                 Severability Of Provisions.

 

If any provision or any portion of any Provision of
this Lease or the application of any such provision or any portion thereof to
any person or circumstance, shall be held invalid or unenforceable, the
remaining portion of such provision and the remaining provisions of this Lease,
or the application of such provision or portion of such provision as is held
invalid or unenforceable to persons or circumstances other than those as to
which it is held invalid or unenforceable, shall not be affected thereby and
such provision or portion of any provision as shall have been held invalid or
unenforceable shall be deemed limited or modified to the extent necessary to
make it valid and enforceable; in no event shall this Lease be rendered void or
unenforceable.

 

33.                                 Extension Option.

 

(a)     Tenant
shall have the option (the “Extension Option”), to be exercised as
hereinafter provided in Section 33(c) hereof, to extend the Term
for two (2) successive periods of thirty (30, sixty (60) or ninety (90) days,
the length of each such period to be determined at Tenant’s election when each
such Extension Option is exercised (each such period of thirty (30, sixty (60)
or ninety (90) days, as applicable, is herein called an “Extension Period”),
upon the

 

22

 

same terms, covenants and conditions contained in this Lease, except
that there will be no further privilege of extension for the Term referred to
above except as set forth in Section 33(b) hereof; and during the
relevant Extension Period, the Base Rent payable by Tenant to Landlord pursuant
to Article 3 hereof shall be an amount equal to one hundred and ten
percent (110%) of Base Rent paid during the initial Term of the Lease (as set
forth in Article 2 hereof).

 

(b)                                 Tenant
shall have the option (the “Additional Extension Option”), to be
exercised as hereinafter provided in Section 33(c) hereof, to
extend the Term for two (2) successive periods of thirty (30, sixty (60) or
ninety (90) days, the length of each such period to be determined at Tenant’s
election when each such Additional Extension Option is exercised (each such
period of thirty (30, sixty (60) or ninety (90) days, as applicable, is herein
called an “Additional Extension Period”), upon the same terms, covenants
and conditions contained in this Lease, except that there shall be no further
privilege of extension for the Term referred to above, and during the relevant
Additional Extension Period the Base Rent payable by Tenant to Landlord
pursuant to Article 2 hereof shall be an amount equal to one hundred fifty
percent (150%) of the Base Rent paid during the initial Term of the Lease (as
set forth in Article 2 hereof).

 

(c)                                  Tenant
shall exercise its option to extend the Term pursuant to Sections 33(a) and
33(b) hereof for any individual Extension Period or Additional Extension
Period, as applicable, by giving notice (“Extension Notice”) thereof to
Landlord of the Tenant’s election to exercise such option (with respect to
Sections 33(a) and 33(b) hereof, as the case may be) at least ninety (90) days
prior to the expiration date of the initial Term of this Lease or if any such
Extension Option has theretofore been exercised, then the expiration date of
the Term as extended by the exercise of such Extension Option or Extension
Options theretofore exercised (as the case may be).  Upon the giving of the Extension Notice, this
Lease shall be deemed extended for the applicable Extension Period or
Additional Extension Period, as the case may be, subject to the provisions of
this Article 33, and the parties shall execute an instrument confirming
such extension.

 

34.                                 Holdover.

 

The parties recognize and agree that the damage to
Landlord resulting from any failure by Tenant to timely peaceably and quietly
leave, surrender and yield up unto Landlord the Premises in the Delivery
Condition upon expiration of other earlier termination of this Lease will be
substantial, will exceed the amount of the monthly installments of the Base
Rent theretofore payable hereunder, and will be impossible to accurately
measure.  Tenant therefore agrees that if
possession of the Premises is not surrendered to Landlord upon the expiration
or earlier termination of the Term (as the same may be extended by Tenant
pursuant to the provisions of Article 33 hereof), then, in addition
to any other rights or remedies Landlord may have hereunder or at law, Tenant
shall (a) pay to Landlord for each month (and for each portion of any month)
during which Tenant holds over in the Premises after the expiration of earlier
termination of this Lease, a sum equal to (i) two (2) times the Base Rent paid
during the initial Term for this Lease (as set forth in Article 2
hereof), plus (ii) all Impositions and other additional rent payable by Tenant
pursuant to the terms of this Lease and (b) if such holdover shall continue
beyond the date which is one hundred and eighty (180) days after the date
of expiration or sooner termination of the Term (as the same may be extended by
Tenant pursuant to the provisions of Article 33 hereof), be liable
to

 

23

 

Landlord for and
indemnify Landlord against (i) any payment or rent concession which Landlord
may be required to make to any tenant obtained by Landlord for all or any part
of the Premises (a “New Tenant”) pursuant to a lease executed and
delivered between Landlord and such New Tenant (such lease, a “New Tenant
Lease”) by reason of the late delivery of space to the New Tenant as a
result of Tenant’s holding over in the Premises or in order to induce such New
Tenant not to terminate its New Tenant Lease by reason of the holding over by
Tenant in the Premises, (ii) the loss of the benefit of the bargain if any New
Tenant shall terminate its New Tenant Lease by reason of the holding over by
Tenant in the Premises and (iii) any claim for damages by any New Tenant (provided,
that the maximum liability of Tenant under the foregoing clause (b)
shall not exceed ten million dollars ($10,000,000) under any
circumstances).  Nothing herein contained
shall be deemed to permit Tenant to retain possession of the Premises after the
Expiration Date or earlier termination of this Lease.  The acceptance by Landlord of any payments
from Tenant after the expiration or earlier termination of this Lease shall not
preclude Landlord from commencing and prosecuting a holdover or summary
eviction proceeding (such being an “agreement expressly providing otherwise”
within the meaning of Section 232-c of the Real Property Law of the State
of New York), nor shall any such acceptance be deemed anything other than on
acceptance of payment on account of the amounts to be paid by Tenant in
accordance with the provisions of this Section. 
Tenant expressly waives, for itself and for any person claiming through
or under Tenant, any rights which Tenant or any such person 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 Article 34.  Tenant’s liabilities and obligations under
this Article 34 shall survive the Expiration Date or sooner
termination of the term of this Lease.

 

35.                                 Miscellaneous.

 

(a)     This
Lease may be executed in several counterparts, all of which constitute one and
the same instrument.

 

(b)     No right
or remedy herein conferred upon or reserved to either party is intended to be
exclusive of any other right or remedy, and every right and remedy shall be
cumulative and in addition to any other right or remedy given by this lease or
now or hereafter existing at law or in equity. 
The failure of either party to insist upon the strict performance of any
obligation shall not be deemed a waiver thereof.

 

36.                                 Successors, Assigns, Etc.

 

The covenants, conditions and agreements contained in
this Lease shall bind and inure to the benefit of Landlord and Tenant and their
respective heirs, distributes, executors, administrators, successors, and,
except as otherwise provided in this Lease, their respective assigns.  Landlord agrees that it shall not transfer
the Premises (other than to mortgage the Premises to a lender in connection
with a financing of the Premises) during the period (the “Lock-Out Period”)
commencing on the Commencement Date and ending on the earlier to occur of (i)
the termination of this Lease, or (ii) the date which is the eighteen (18)
month anniversary of the Commencement Date, provided that the foregoing
restriction shall not apply to any such lender who forecloses on the Premises
or accepts a deed in lieu of foreclosure. 
For the period

 

24

 

(the “Restricted Period”)
from and after the expiration of the Lock-Out Period and ending on the earlier
to occur of (i) the termination of this Lease or (ii) the Expiration Date of
this Lease (but in no event later than the thirty-six (36) month anniversary of
the Commencement Date), Landlord may only transfer the Premises (other than to
mortgage the Premises to a lender in connection with a financing of the
Premises) to a “Qualified Transferee” (as hereinafter defined).  A “Qualified Transferee” shall be deemed to
include a “Financial Institution” (as hereinafter defined) or an owner of
comparable or better office buildings of not less than 1.5 million square feet
in the aggregate in New York City or other major metropolitan areas, or an
affiliate thereof, provided such party (i) has not been litigating with Tenant
within the past five (5) years or with another entity which has an alignment of
interest with Tenant in connection with a transaction in which Tenant was or is
a principal participant, (ii) does not generally have a reputation for being
overly litigious with respect to real estate matters, and (iii) has not been
convicted of a felony.  In the event
Landlord seeks to transfer the Property after the Lock-Out Period but prior to
the expiration of the Restricted Period, such transfer shall be subject to the
consent of Tenant; such consent not to be unreasonably withheld or delayed, and
Tenant shall grant such consent if such proposed transferee is a Qualified
Transferee.  Landlord shall provide
Tenant with reasonable information about the nature of the proposed transferee
and Tenant shall grant or deny its consent thereto within ten (10) business days
after request therefor.  In the event
Tenant does not respond to such request within such ten (10) business day time
period, Tenant shall be deemed to have consented thereto provided that such request
shall have stated that Tenant shall be deemed to have consented thereto if
Tenant fails to respond to such request within such ten (10) business day
period.  In the event of any dispute
between the parties in connection herewith, Tenant and Landlord agree that
either party may submit such dispute to expedited arbitration pursuant to the
expedited arbitration rules of the American Arbitration Association.

 

As used in this Lease, the term “Financial
Institution” shall refer to a bank, trust company, savings and loan
association, insurance company, pension fund, retirement fund, real estate
investment trust or similar institution, trust company, credit union,
investment bank, college, university or other educational or eleemosynary
institution, federal, estate, municipal or public benefit corporation, or other
recognized, reputable maker of loans for or investments in real estate,
including any co-lender or participant with or affiliate of such institution,
or any combination of the foregoing, which regularly makes or invests in
commercial or real estate loans and investments and has a net worth of at least
fifty million dollars ($50,000,000) (in 2004 dollars) or the shares of which
(or the shares of the controlling affiliate of which) are traded on a national
stock exchange, or which is an affiliate of any such lender investor.  For purposes of this paragraph, the term “affiliate”
shall mean any entity directly or indirectly controlling, controlled by, or
under common control with a Financial Institution, and co-lender, participant
and affiliate shall not be required to meet the requirements applicable to a
Financial Institution.

 

For purposes hereof an “affiliate” of any party shall
mean any party which controls, is controlled by or is under common control with
such party and the term “control” shall mean the ability to direct the
management and affairs of a party.

 

Landlord agrees that during the Lock-Out Period and,
unless the Property has been transferred to a Qualified Transferee pursuant to
the terms of this Article 36, during the Restricted Period a Tishman Speyer
Fund or Tishman Speyer Properties L.P. or Tishman Crown Equities (collectively “Tishman”)
shall (i) own directly or indirectly no less than ten percent (10%) of the

 

25

 

equity interests in
Landlord and (ii) control directly or indirectly a managing or general partner
of Landlord and (iii) Tishman Speyer Properties L.P. (or a successor thereto)
shall be Landlord’s managing agent for Landlord’s interest in the Premises; provided,
however, that the foregoing restriction shall not apply to any lender of
Landlord who forecloses on the Premises or accepts a deed in lieu of
foreclosure for the Premises.

 

37.                                 Landlord’s Cure and
Enforcement Rights.

 

If Tenant shall default in the performance of any of
Tenant’s obligations under this Lease, Landlord, without thereby waiving such
default, may (but shall not be obligated to) perform the same for the account
and at the expense of Tenant, without notice in any case of emergency, and, in
any other case, if such default continues after notice and the expiration of
the applicable cure period set forth herein, if any, after fifteen (15) days
notice to Tenant.  Tenant, upon demand,
shall reimburse Landlord for any expenses incurred by Landlord (including
reasonable attorneys’ fees) pursuant to, or in connection with, (i) any
performance by Landlord for the account of Tenant pursuant to this Article 37,
or (ii) collecting or endeavoring to collect rent or any component thereof, or
enforcing or endeavoring to enforce any of Landlord’s rights against Tenant
hereunder or any of Tenant’s obligations hereunder, together, in either case,
with interest thereon, at an interest rate equal to nine percent (9%) per annum
(the “Interest Rate”), from the date that such expenses were incurred by
Landlord to the date that the same are reimbursed to Landlord by Tenant.

 

38.                                 Covenant Against Liens.

 

If, because of any act or omission (or alleged act or
omission) of Tenant, any mechanic’s or other lien, charge or order for the
payment of money or other encumbrances shall be filed or imposed against
Landlord, any Superior Lessor, any Superior Mortgagee and/or any portion of the
Premises (whether or not such lien, charge, order or encumbrance is valid or
enforceable as such), Tenant shall, at its cost and expense, cause same to be
discharged of record or bonded within thirty (30) days after notice to Tenant
of the filing or imposition thereof provided, however, if Tenant has obtained
the appropriate bond and the order discharging such lien is awaiting execution
by a court having jurisdiction within such thirty day period and Tenant shall
provide Landlord with reasonable evidence thereof, Tenant shall not be deemed
in default hereunder.  Tenant shall
indemnify and defend Landlord against and save Landlord harmless from all
losses, costs, damages, expenses, liabilities, suits, penalties, claims,
demands and obligations, including, without limitation, reasonable counsel
fees, resulting therefrom.  If Tenant
fails to comply with the foregoing provisions, Landlord shall have the option
upon ten (10) days notice to Tenant of discharging or bonding any such lien,
charge, order or encumbrance, and Tenant agrees to reimburse Landlord (as
additional rent) for all losses, costs, damages, and expenses resulting therefrom
or incurred in connection therewith, together with interest at the Interest
Rate, promptly upon demand.

 

39.                                 Affirmative Waivers.

 

Landlord and Tenant 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 this Lease, the
relationship of Landlord and Tenant, Tenant’s use or occupancy

 

26

 

of the Premises,
including any claim of injury or damage, and any emergency and other statutory
remedy with respect thereto.  Tenant
shall not interpose any counterclaim of any kind in any action or proceeding
commenced by Landlord to recover possession of the Premises unless the failure
to do so will preclude Tenant from making such claims against Landlord.  Tenant hereby waives any right of redemption
or similar right that it may have with respect to this Lease after the
termination hereof.

 

40.                                 Estoppel Certificates.

 

Tenant, at any time and from time to time, on or prior
to the tenth (10th) day following a written request by Landlord, shall execute
and deliver to Landlord (and/or to a potential lender, investor or purchaser of
the Premises designated by Landlord) a statement (i) certifying that this Lease
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 the modifications), (ii) certifying to the Commencement Date, the then
current expiration date of this Lease, and the dates to which Base Rent has
been paid and (iii) stating whether or not, to the actual knowledge of the
employees of Tenant having responsibility for the administration of this Lease,
Landlord is in default in the performance of any of its obligations under this
Lease (and, if so, specifying each such default of which Tenant shall have
knowledge).  Tenant also shall include or
confirm in any such statement such other information concerning a factual condition
with respect to this Lease as Landlord may reasonably request.

 

41.                                 Net Lease;
Nonterminability.

 

This is a net lease, and except as specifically
provided in this Lease, Tenant shall not be entitled to any abatement,
deduction, deferment, suspension or reduction of, or setoff, defense or
counterclaim against, any rentals, charges, or other sums payable by Tenant
under this Lease, nor shall the respective obligations of Landlord and Tenant
be otherwise affected by reason of damage to or destruction of the Premises
from whatever cause or any taking by condemnation or eminent domain.

 

27

 

IN
WITNESS WHEREOF, the undersigned have executed this Lease as
of the day and date first above written.

 

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  TISHMAN SPEYER DEVELOPMENT, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  THE NEW YORK TIMES COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

28

 

EXHIBIT A

 

Premises

 

PARCEL 1

 

ALL that lot, 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 point on
the northerly side of 43rd Street distant two hundred seventy-five feet
easterly from the corner formed by the intersection of the northerly side
of 43rd Street with the easterly side of 8th Avenue;

 

RUNNING THENCE northerly
parallel with the easterly side of 8th Avenue, one hundred feet five inches to
the center line of the block;

 

THENCE easterly along the
said center line of the block, seventy-four feet nine inches;

 

THENCE southerly again
parallel with the easterly side of 8th Avenue, one hundred feet five inches to
the northerly side of 43rd Street;

 

THENCE westerly along the
said northerly side of 43rd Street, seventy-four feet nine inches to the point
or place of BEGINNING.

 

PARCEL 2

 

ALL that certain lot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City of New York, in the County and State of New York, bounded and described as
follows:

 

BEGINNING at a point on
the northerly side of 43rd Street, distant two hundred and fifty (250) feet
westerly from the northwesterly corner of 43rd Street and 7th Avenue;

 

RUNNING THENCE northerly
along a line parallel with the westerly side of 7th Avenue, one hundred (100)
feet four (4) inches;

 

THENCE westerly along a
line parallel with the northerly side of 43rd Street, two hundred (200) feet;

 

THENCE southerly along
the line parallel with the westerly side of 7th Avenue to the northerly side of
43rd Street, one hundred (100) feet, four (4) inches;

 

THENCE easterly along the
northerly side of 43rd Street, two hundred (200) feet to the point or place of
BEGINNING.

 

 

PARCEL 3

 

ALL that strip of land,
situate in the Borough of Manhattan, City of New York, bounded and described as
follows:

 

BEGINNING at a point on
the northerly side of 43rd Street distant three hundred forty nine feet, nine
inches easterly form the corner formed by the intersection of the easterly
side of Eighth Avenue with the northerly side of 43rd Street;

 

RUNNING THENCE northerly
parallel with 8th Avenue, one hundred feet five inches to the centre line of
the block;

 

THENCE easterly along
said centre line of the block, three inches;

 

THENCE southerly again
parallel with 8th Avenue, one hundred feet five inches to the inches side of
43rd Street; and

 

THENCE westerly along the
said northerly side of 43rd Street, three inches to the point or place of
BEGINNING.

 

PARCEL 4

 

ALL that certain plot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City, County and State of New York, bounded and described as follows:

 

BEGINNING at a point on
the northerly side of 43rd Street, distant 207 feet westerly from the corner
formed by the westerly side of Broadway or 7th Avenue with the northerly side
of 43rd Street;

 

RUNNING THENCE northerly
parallel with the westerly side of Broadway or 7th Avenue, 100 feet 5 inches to
the center line of the block;

 

THENCE westerly along the
center line of the block, 43 feet;

 

THENCE southerly at right
angles to 43rd Street, 100 feet 5 inches to the northerly side of 43rd Street;
and

 

THENCE easterly along the
northerly side of 43rd Street, 43 feet to the point or place of BEGINNING.

 

PARCEL 5

 

ALL that certain lot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City, County and State of New York, more particularly bounded and described as
follows:

 

 

BEGINNING at a point on
the southerly side of 44th Street, distant two hundred and seven feet westerly
from the corner formed by the intersection of the southerly side of 44th
Street and the westerly side of Broadway;

 

THENCE southerly parallel with the westerly side of Broadway, one
hundred feet five inches to the center line of the block;

 

THENCE westerly along the
center line of the block and parallel with the southerly side of 44th Street,
one hundred eighty-six feet three inches;

 

THENCE northerly again
parallel with the westerly side of Broadway one hundred feet five inches to the
southerly side of 44th Street;

 

THENCE easterly along the southerly side of 44th
Street, one hundred eight-six feet three inches to the point or place of
BEGINNING.

 

 

EXHIBIT B

 

Tenant’s Insurance

 

[TO BE
ADDED]

 

 

EXHIBIT C-1

 

SUPERIOR MORTGAGEE

 

SUBORDINATION,
NON-DISTURBANCE AND ATTORNMENT AGREEMENT

 

This Subordination, Non-Disturbance and Attornment
Agreement (this “Agreement”) is dated as of the             
day of                             ,
200  , between                                   ,
a                           
with an address at                                                 
(“Lender”), and THE NEW YORK TIMES COMPANY, a New York corporation with
an address at 229 West 43rd Street, New York, New York  10036 (“Tenant”).

 

RECITALS

 

WHEREAS:

 

A.                                   Tenant
is the tenant under a certain lease (the “Lease”) dated                               ,
200  , with                               
(“Landlord”) of the building located at 229 West 43rd Street
in the City, County and State of New York (the “Premises”).  The Premises are located on the land
described on Exhibit A annexed hereto and made a part hereof (the “Land”;
the Land and the Building being hereinafter collectively called the “Property”).

 

B.                                     This
Agreement is being entered into in connection with a mortgage loan dated                                   ,
200   made by Lender to Landlord, secured by a first mortgage on the
Property (the “Mortgage”) which Mortgage is recorded in the office of
the New York City Register, New York County [RECORDING
INFORMATION TO BE ADDED].

 

NOW, THEREFORE, for mutual consideration, including
the mutual covenants and agreements set forth below, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.                                       Subject
to the terms, covenants and conditions of this Agreement, the Lease is and
shall be subject and subordinate to the lien of the Mortgage and to all present
or future advances thereunder and all renewals, amendments, modification,
consolidations, replacements and extensions thereof, to the full extent of all
amounts secured by the Mortgage.

 

2.                                       Lender
hereby consents to the Lease and agrees that, if Lender exercises any of its
rights under the Mortgage, including an entry by Lender pursuant to the
Mortgage or a foreclosure of the Mortgage, Lender shall not join Tenant as a
party defendant in any foreclosure action and, subject to the terms of the
Lease, shall not terminate the Lease nor disturb Tenant’s right of quiet
possession of the Premises and shall recognize Tenant as its tenant under the
terms of the Lease so long as pursuant to the then existing provisions thereof
the Lease is in full force and effect and Tenant is not in default, following
notice and the expiration of any applicable grace period, of any term, covenant
or condition of the Lease.

 

3.                                       Tenant
agrees that, in the event of a foreclosure of the Mortgage by Lender or the
acceptance of a deed in lieu of foreclosure by Lender or any other succession
of Lender to Landlord’s interest in the Lease, Tenant will attorn to and
recognize Lender as its landlord under the Lease for the remainder of the term
of the Lease (including all extension

 

1

 

periods which have been or are hereafter exercised) upon all of the
same terms and conditions as are set forth in the Lease. Notwithstanding the
provisions of this Section 3 to the contrary, if Lender succeeds to the
interest of Landlord under the Lease, Lender shall not be:

 

(a)                                  liable
for any act or omission of any prior Landlord (including, without limitation,
the then defaulting Landlord) except to the extent such default continues after
Lender succeeds to the interest of Landlord under the Lease; or

 

(b)                                 subject
to any defense or offset which Tenant may have against any prior Landlord
(including, without limitation, the then defaulting Landlord) that are not
provided for in the Lease, except to the extent any such defense or offset arises
after the date Lender succeeds to the interest of Landlord, or

 

(c)                                  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, the then defaulting Landlord), except to the
extent received by Lender or made in accordance with the express provisions of
the Lease, or

 

(d)                                 accountable
for any monies deposited with any prior Landlord (including security deposits),
except to the extent such monies are actually received by Lender.

 

4.                                       As
long as the Mortgage shall remain in effect, Tenant shall not. seek to
terminate the Lease by reason of any act or omission of Landlord (except
pursuant to a provision in the Lease which gives Tenant an express right to
terminate the Lease) until Tenant shall have given written notice of such act
or omission to Lender and, if Lender shall have notified Tenant within ten (10)
days following receipt of such notice of its intention to remedy such act or
omission, until a reasonable period of time (not to exceed ten (10) days for
monetary defaults and not to exceed thirty (30) days for non-monetary defaults
unless, with respect to non-monetary defaults, more than thirty (30) days would
be required, using commercially reasonable and diligent efforts, to remedy such
act or omission, in which case such time period shall be extended for such
additional time as shall be required, using commercially reasonable and
diligent efforts, to remedy such act or omission, not to exceed an aggregate of
ninety (90) days) shall have elapsed following the giving of such notice,
during which period of time Lender shall have the right, but not the
obligation, to remedy such act or omission.

 

5.                                       Any
notice, election, communication, request or other document or demand required
or permitted under this Agreement shall be in writing and shall be deemed
delivered on the earlier to occur of (a) receipt or (b) the date of delivery,
refusal or nondelivery indicated on the return receipt, if deposited in a
United States Postal Service Depository, postage prepaid, sent certified or
registered mail, return receipt requested, or if sent via a recognized
commercial overnight courier service providing for a receipt, addressed to Tenant
or Lender, as the case may be, at the following addresses:

 

2

 

	
  If to Tenant:

  
	
   

  
	
  The New York Times Company

  
	
  229 West 43rd Street

  
	
  New York, New York 10036

  
	
  Attention: Herbert W. Valentine

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  The New York Times Company

  
	
  229 West 43rd Street

  
	
  New York, New York 10036

  
	
  Attention: Kenneth A. Richieri, Esq.

  
	
  Deputy
  General Counsel

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  Piper Rudnick LLP

  
	
  1251 Avenue of the Americas

  
	
  New York, New York 10020-1104

  
	
  Attention: Martin D. Polevoy, Esq.

  
	
   

  
	
  If to Lender:

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  with a copy to:

  
	
   

  
	
   

  
	
   

  

 

6.                                       This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and assigns.

 

7.                                       If
any provision of this Agreement is held to be invalid or unenforceable by a
court of competent jurisdiction, such provision shall be deemed modified to the
extent necessary to be enforceable, or if such modification is not practicable,
such provision shall be deemed deleted from this Agreement, and the other
provisions of this Agreement shall remain in full force and effect.

 

8.                                       Neither
this Agreement nor any of the terms hereof may be terminated, amended,
supplemented, waived or modified orally, but only by an instrument in writing
executed by the party against which enforcement of the termination, amendment,
supplement, waiver or modification is sought.

 

9.                                       As
between Landlord and Tenant, nothing herein expands Tenant’s obligations or
limits Tenant’s rights under the Lease.

 

3

 

10.                                 This
Agreement shall be construed in accordance with the laws of the State of New
York.

 

11.                                 Each
person executing this Agreement on behalf of Lender and Tenant represents that
he or she is authorized by Lender and Tenant, respectively, to do so and
execution hereof is the binding act of Lender and Tenant enforceable against
Lender and Tenant.

 

12.                                 This
Agreement contains the entire agreement between the parties, and any executory
or oral agreement hereinbefore or hereafter made shall be ineffective to
change, modify, discharge or effect an abandonment of it in whole or in part
unless such agreement is made after the date hereof and is in writing and
signed by the party against whom enforcement of the change, modification, discharge
or abandonment is sought.

 

13.                                 This
Agreement may be executed in any number of counterparts, each of which shall,
when executed, be deemed to be an original and all of which shall be deemed to
be one and the same instrument. The transmission by telecopier of a copy of the
signature page from this Agreement executed by the transmitting party, together
with instructions that same may be attached to a copy of this Agreement being
held by the recipient of such transmission, shall constitute execution and
delivery of this Agreement by the transmitting party.

 

(Signature Page Attached
Hereto)

 

4

 

	
   

  	
   

  	
  , Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE NEW YORK
  TIMES COMPANY,

  Tenant

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  CONSENTED TO:

  	
   

  
	
   

  	
  , Landlord

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

5

 

ACKNOWLEDGMENT

 

To Be Used Within the State of New York:

 

	
  State of New York

  	
  )

  
	
   

  	
  ):ss

  
	
  County of

  	
  )

  

 

On the           
day of                               
in the year 200  , 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 or 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
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.

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  

 

 

To Be Used Outside of the State of New York:

 

	
  State of

  	
  )

  
	
   

  	
  ):ss

  
	
  County of

  	
  )

  

 

On the            day of              in
the year 200  , 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 or 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
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, and that such individual made such appearance before the
undersigned in the [place of acknowledgment].

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  

 

6

 

EXHIBIT A

 

Premises

 

PARCEL 1

 

ALL that lot, 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 point on
the northerly side of 43rd Street distant two hundred seventy-five feet
easterly from the corner formed by the intersection of the northerly side
of 43rd Street with the easterly side of 8th Avenue;

 

RUNNING THENCE northerly
parallel with the easterly side of 8th Avenue, one hundred feet five inches to
the center line of the block;

 

THENCE easterly along the
said center line of the block, seventy-four feet nine inches;

 

THENCE southerly again
parallel with the easterly side of 8th Avenue, one hundred feet five inches to
the northerly side of 43rd Street;

 

THENCE westerly along the
said northerly side of 43rd Street, seventy-four feet nine inches to the point
or place of BEGINNING.

 

PARCEL 2

 

ALL that certain lot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City of New York, in the County and State of New York, bounded and described as
follows:

 

BEGINNING at a point on
the northerly side of 43rd Street, distant two hundred and fifty (250) feet
westerly from the northwesterly corner of 43rd Street and 7th Avenue;

 

RUNNING THENCE northerly
along a line parallel with the westerly side of 7th Avenue, one hundred (100)
feet four (4) inches;

 

THENCE westerly along a
line parallel with the northerly side of 43rd Street, two hundred (200) feet;

 

THENCE southerly along
the line parallel with the westerly side of 7th Avenue to the northerly side of
43rd Street, one hundred (100) feet, four (4) inches;

 

THENCE easterly along the
northerly side of 43rd Street, two hundred (200) feet to the point or place of
BEGINNING.

 

7

 

PARCEL 3

 

ALL that strip of land,
situate in the Borough of Manhattan, City of New York, bounded and described as
follows:

 

BEGINNING at a point on
the northerly side of 43rd Street distant three hundred forty nine feet, nine
inches easterly form the corner formed by the intersection of the easterly
side of Eighth Avenue with the northerly side of 43rd Street;

 

RUNNING THENCE northerly
parallel with 8th Avenue, one hundred feet five inches to the centre line of
the block;

 

THENCE easterly along
said centre line of the block, three inches;

 

THENCE southerly again
parallel with 8th Avenue, one hundred feet five inches to the inches side of
43rd Street; and

 

THENCE westerly along the
said northerly side of 43rd Street, three inches to the point or place of
BEGINNING.

 

PARCEL 4

 

ALL that certain plot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City, County and State of New York, bounded and described as follows:

 

BEGINNING at a point on
the northerly side of 43rd Street, distant 207 feet westerly from the corner
formed by the westerly side of Broadway or 7th Avenue with the northerly side
of 43rd Street;

 

RUNNING THENCE northerly
parallel with the westerly side of Broadway or 7th Avenue, 100 feet 5 inches to
the center line of the block;

 

THENCE westerly along the
center line of the block, 43 feet;

 

THENCE southerly at right
angles to 43rd Street, 100 feet 5 inches to the northerly side of 43rd Street;
and

 

THENCE easterly along the
northerly side of 43rd Street, 43 feet to the point or place of BEGINNING.

 

PARCEL 5

 

ALL that certain lot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City, County and State of New York, more particularly bounded and described as
follows:

 

8

 

BEGINNING at a point on
the southerly side of 44th Street, distant two hundred and seven feet westerly
from the corner formed by the intersection of the southerly side of 44th
Street and the westerly side of Broadway;

 

THENCE southerly parallel with the westerly side of Broadway, one
hundred feet five inches to the center line of the block;

 

THENCE westerly along the
center line of the block and parallel with the southerly side of 44th Street,
one hundred eighty-six feet three inches;

 

THENCE northerly again
parallel with the westerly side of Broadway one hundred feet five inches to the
southerly side of 44th Street;

 

THENCE easterly along the
southerly side of 44th Street, one hundred eight-six feet three inches to the
point or place of BEGINNING.

 

9

 

EXHIBIT C-2

 

SUPERIOR LESSOR
SUBORDINATION, NON-DISTURBANCE,

RECOGNITION AND ATTORNMENT AGREEMENT

 

This Agreement (this “Agreement”) is dated as
of the          day of                         ,
200  , between                                         ,
a                                 ,
with an address at                                 
(“Ground Lessor”), and the New York Times, a New York corporation, with
an address at 229 West 43rd Street, New York, New York  10036 (“Tenant”).

 

RECITALS

 

WHEREAS:

 

A.                                   Ground
Lessor is (i) the fee owner of certain real property located in the Borough of
Manhattan, City, County and State of New York, and more particularly described
on Exhibit A attached hereto and made a part hereof (the “Property”),
and (ii) the lessor under that certain Ground Lease dated as of               
      , 200   between Ground Lessor and
                      ,
as lessee (“Landlord”) demising the Property (such lease, as the same
may be amended or supplemented from time to time, the “Ground Lease”);
recorded in the office of the New York City Register, New York County [RECORDING INFORMATION TO BE ADDED].

 

B.                                     Tenant
is the tenant under a certain lease (the “Lease”) dated                         ,
2        , between Landlord, as
landlord and Tenant, as tenant, of the building located on the Property and
known by the street address of 229 West 43rd Street, New York, New
York as described in the Lease.

 

C.                                     This
Agreement is being entered into pursuant to the provisions of the Lease.

 

NOW, THEREFORE, for mutual consideration, including
the mutual covenants and agreements set forth below, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.                                       Subject
to the terms, covenants and conditions of this Agreement, the Lease is and
shall be subject and subordinate to the Ground Lease and to any renewals,
amendments, modification, supplements, replacements and extensions of the
Ground Lease. Said subordination shall have the same force and effect as if the
Ground Lease provided any such renewals, modifications, consolidations,
replacements and extensions thereof do not reduce Tenant’s rights or increase
Tenant’s obligations hereunder or under the Lease.

 

2.                                       Ground
Lessor hereby consents to the Lease and agrees that if Ground Lessor exercises
any of its rights under the Ground Lease, including an entry by Ground Lessor
pursuant to the Ground Lease or termination of the Ground Lease, Ground Lessor
shall not join Tenant or any party claiming through or under Tenant, as a party
defendant in any action to enforce or terminate the Ground Lease, shall not
terminate the Lease or disturb Tenant’s right of quiet possession of the
Premises and shall recognize Tenant as its tenant under the terms of the Lease
so long as pursuant to the then existing provisions thereof the Lease is in
full force and

 

10

 

effect and Tenant is not in default beyond any applicable notice and
grace period of any term, covenant or condition of the Lease.

 

3.                                       Tenant
agrees that, in the event of a termination of the Ground Lease by Ground Lessor
or any other succession of Ground Lessor to the interest of Landlord under the
Lease, Tenant will attorn to and recognize Ground Lessor as its landlord under
the Lease for the remainder of the term of the Lease (including all extension
periods which have been or are hereafter exercised) upon all of the same terms
and conditions as are set forth in the Lease. Notwithstanding the provisions of
this Section 3 to the contrary, if Ground Lessor succeeds to the interest
of Landlord under the Lease, Ground Lessor shall not be:

 

(a)                                  liable
for any act or omission of any prior Landlord (including, without limitation,
the then defaulting Landlord) except to the extent such default continues after
Ground Lessor succeeds to the interest of Landlord under the Lease; or

 

(b)                                 subject
to any defense or offset which Tenant may have against any prior Landlord
(including, without limitation, the then defaulting Landlord) that are not
provided for in the Lease, except to the extent any such defense or offset
arises after the date Ground Lessor succeeds to the interest of Landlord, or

 

(c)                                  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, the then defaulting Landlord), except to the
extent received by Ground Lessor or made in accordance with the provisions of
the Lease, or

 

(d)                                 accountable
for any monies deposited with any prior Landlord (including security deposits),
except to the extent such monies are actually received by Ground Lessor.

 

4.                                       As
long as the Ground Lease shall remain in effect, Tenant shall not seek to
terminate the Lease by reason of any act or omission of Landlord (except
pursuant to an express right to terminate the Lease) until Tenant shall have
given written notice of such act or omission to Ground Lessor and, if Ground
Lessor shall have notified Tenant within ten (10) business days following
receipt of such notice of its intention to remedy such act or omission, until a
reasonable period of time (not to exceed ten (10) days for monetary defaults
and not to exceed thirty (30) days for non-monetary defaults unless, for the
non-monetary defaults, more than thirty (30) days would be required, using
commercially reasonable and diligent efforts, to remedy such act or omission,
in which case such time period shall be extended for such additional time as
shall be required, using commercially reasonable and diligent efforts, to
remedy such act or omission, not to exceed an aggregate of ninety (90) days)
shall have elapsed following the giving of such notice, during which period of
time Ground Lessor shall have the right, but not the obligation, to remedy such
act or omission.

 

11

 

5.                                       Any
notice, election, communication, request or other document or demand required
or permitted under this Agreement shall be in writing and shall be deemed
delivered on the earlier to occur of (a) receipt or (b) the date of delivery,
refusal or nondelivery indicated on the return receipt, if deposited in a
United States Postal Service Depository, postage prepaid, sent certified or
registered mail, return receipt requested, or if sent via a recognized
commercial overnight courier service providing for a receipt, addressed to
Tenant or Ground Lessor, as the case may be, at the following addresses:

 

	
  If to Tenant:

  
	
   

  
	
  The New York Times Company

  
	
  229 West 43rd Street

  
	
  New York, New York 10036

  
	
  Attention: Herbert W. Valentine

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  The New York Times Company

  
	
  229 West 43rd Street

  
	
  New York, New York 10036

  
	
  Attention: Kenneth A. Richieri, Esq.

  
	
  Deputy
  General Counsel

  
	
   

  
	
  and a copy to:

  
	
   

  
	
  Piper Rudnick LLP

  
	
  1251 Avenue of the Americas

  
	
  New York, New York 10020-1104

  
	
  Attention: Martin D. Polevoy, Esq.

  
	
   

  
	
  If to Ground
  Lessor:

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  with a copy to:

  
	
   

  
	
   

  
	
   

  
	
   

  

 

6.                                       This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and assigns.

 

7.                                       If
any provision of this Agreement is held to be invalid or unenforceable by a
court of competent jurisdiction, such provision shall be deemed modified to the
extent necessary to be enforceable, or if such modification is not practicable,
such provision shall be

 

12

 

deemed deleted from this Agreement, and the other provisions of this
Agreement shall remain in full force and effect.

 

8.                                       Neither
this Agreement nor any of the terms hereof may be terminated, amended,
supplemented, waived or modified orally, but only by an instrument in writing
executed by the party against which enforcement of the termination, amendment,
supplement, waiver or modification is sought.

 

9.                                       As
between Landlord and Tenant, nothing herein expands Tenant’s obligations or
limits Tenant’s rights under the Lease.

 

10.                                 This
Agreement shall be construed in accordance with the laws of the State of New
York.

 

11.                                 Each
person executing this Agreement on behalf of Ground Lessor and Tenant
represents that he or she is authorized by Ground Lessor and Tenant,
respectively, to do so and execution hereof is the binding act of Ground Lessor
and Tenant enforceable against Ground Lessor and Tenant.

 

12.                                 This
Agreement contains the entire agreement between the parties, and any executory
or oral agreement hereinbefore or hereafter made shall be ineffective to
change, modify, discharge or effect an abandonment of it in whole or in part
unless such agreement is made after the date hereof and is in writing and
signed by the party against whom enforcement of the change, modification,
discharge or abandonment is sought.

 

13.                                 This
Agreement may be executed in any number of counterparts, each of which shall,
when executed, be deemed to be an original and all of which shall be deemed to
be one and the same instrument. The transmission by telecopier of a copy of the
signature page from this Agreement executed by the transmitting party, together
with instructions that same may be attached to a copy of this Agreement being
held by the recipient of such transmission, shall constitute execution and
delivery of this Agreement by the transmitting party.

 

(Signature Page Attached
Hereto)

 

13

 

 

	
   

  	
   

  	
  , Ground Lessor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  THE NEW YORK
  TIMES COMPANY, Tenant

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  CONSENTED TO:

  	
   

  
	
   

  	
   

  
	
   

  	
  , Landlord

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

14

 

ACKNOWLEDGMENT

 

To Be Used Within the State of New York:

 

	
  State of New York

  	
  )

  
	
   

  	
  ):ss

  
	
  County of

  	
  )

  

 

On the           
day of                                   
in the year 200  , 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 or 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
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.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  

 

 

To Be Used Outside of the State of New York:

 

	
  State of

  	
  )

  
	
   

  	
  ):ss

  
	
  County of

  	
  )

  

 

On the         
day of                               
in the year 200  , 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 or 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
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, and that such individual made such appearance before the
undersigned in the [place of acknowledgment] .

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  

 

 

EXHIBIT A

 

Premises

 

PARCEL 1

 

ALL that lot, 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 point on
the northerly side of 43rd Street distant two hundred seventy-five feet
easterly from the corner formed by the intersection of the northerly side
of 43rd Street with the easterly side of 8th Avenue;

 

RUNNING THENCE northerly
parallel with the easterly side of 8th Avenue, one hundred feet five inches to
the center line of the block;

 

THENCE easterly along the
said center line of the block, seventy-four feet nine inches;

 

THENCE southerly again
parallel with the easterly side of 8th Avenue, one hundred feet five inches to
the northerly side of 43rd Street;

 

THENCE westerly along the
said northerly side of 43rd Street, seventy-four feet nine inches to the point
or place of BEGINNING.

 

PARCEL 2

 

ALL that certain lot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City of New York, in the County and State of New York, bounded and described as
follows:

 

BEGINNING at a point on
the northerly side of 43rd Street, distant two hundred and fifty (250) feet
westerly from the northwesterly corner of 43rd Street and 7th Avenue;

 

RUNNING THENCE northerly
along a line parallel with the westerly side of 7th Avenue, one hundred (100)
feet four (4) inches;

 

THENCE westerly along a
line parallel with the northerly side of 43rd Street, two hundred (200) feet;

 

THENCE southerly along
the line parallel with the westerly side of 7th Avenue to the northerly side of
43rd Street, one hundred (100) feet, four (4) inches;

 

THENCE easterly along the
northerly side of 43rd Street, two hundred (200) feet to the point or place of
BEGINNING.

 

 

PARCEL 3

 

ALL that strip of land,
situate in the Borough of Manhattan, City of New York, bounded and described as
follows:

 

BEGINNING at a point on
the northerly side of 43rd Street distant three hundred forty nine feet, nine
inches easterly form the corner formed by the intersection of the easterly
side of Eighth Avenue with the northerly side of 43rd Street;

 

RUNNING THENCE northerly
parallel with 8th Avenue, one hundred feet five inches to the centre line of
the block;

 

THENCE easterly along
said centre line of the block, three inches;

 

THENCE southerly again
parallel with 8th Avenue, one hundred feet five inches to the inches side of
43rd Street; and

 

THENCE westerly along the
said northerly side of 43rd Street, three inches to the point or place of
BEGINNING.

 

PARCEL 4

 

ALL that certain plot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City, County and State of New York, bounded and described as follows:

 

BEGINNING at a point on
the northerly side of 43rd Street, distant 207 feet westerly from the corner
formed by the westerly side of Broadway or 7th Avenue with the northerly side
of 43rd Street;

 

RUNNING THENCE northerly
parallel with the westerly side of Broadway or 7th Avenue, 100 feet 5 inches to
the center line of the block;

 

THENCE westerly along the
center line of the block, 43 feet;

 

THENCE southerly at right
angles to 43rd Street, 100 feet 5 inches to the northerly side of 43rd Street;
and

 

THENCE easterly along the
northerly side of 43rd Street, 43 feet to the point or place of BEGINNING.

 

PARCEL 5

 

ALL that certain lot,
piece or parcel of land, situate, lying and being in the Borough of Manhattan,
City, County and State of New York, more particularly bounded and described as
follows:

 

BEGINNING at a point on
the southerly side of 44th Street, distant two hundred and seven feet westerly
from the corner formed by the intersection of the southerly side of 44th
Street and the westerly side of Broadway;

 

 

THENCE southerly parallel with the westerly side of Broadway, one
hundred feet five inches to the center line of the block;

 

THENCE westerly along the
center line of the block and parallel with the southerly side of 44th Street,
one hundred eighty-six feet three inches;

 

THENCE northerly again
parallel with the westerly side of Broadway one hundred feet five inches to the
southerly side of 44th Street;

 

THENCE easterly along the
southerly side of 44th Street, one hundred eight-six feet three inches to the
point or place of BEGINNING.

 

 

EXHIBIT D

 

Delivery Condition

 

As of the earlier to occur of (i) the Expiration Date,
or (ii) the date Tenant vacates the Premises and surrenders the Premises to
Landlord (the earlier of such Dates, the “Vacate Date”), vacant possession of
the Premises shall be delivered to Landlord: (a) in their “AS IS” and “WHERE IS”
condition on the Commencement Date of the Lease, subject only to ordinary wear
and tear from the Commencement Date through the Vacate Date; (b) free and clear
of all leases, subleases, licenses and any other agreements of any kind granting
any person or entity the right to use or occupy any portion of thereof, and of
all tenants, subtenants and other occupants and users of any kind; (c) free and
clear of any contracts relating to the ownership, maintenance or operation of
the Premises (whether binding upon Tenant or the Premises); and (d) free and
clear of all liens and encumbrances other than Permitted Encumbrances (as
defined in the Agreement of Sale and Purchase). 
Tenant shall have no obligation whatsoever to remove any personal property,
and furniture, fixtures and equipment in the Premises, and Tenant shall have
the right to leave in the Premises any and all such personal property and
furniture, fixtures and equipment on such surrender date, and all such property
shall be deemed abandoned by Tenant and any cost of the removal of such
property shall be at Landlord’s sole cost and expense.

 

 

Exhibit 9

 

Asahi Shimbun
America, Inc. Lease

 

Exhibit 9

 

AGREEMENT
OF LEASE

 

AGREEMENT OF LEASE, made as of this
               
day of  April, 1998,  between THE
NEW YORK TIMES COMPANY, a New York corporation, having an office at
229 West 43rd Street, New York, New York 10036 (“Owner”), and ASAHI SHIMBUN
AMERICA, INC., a New York STATE corporation with an office at 845 Third
Avenue, New York, New York 10022 (“Tenant”)

 

W
I T N E S S E T H:

 

Owner hereby leases to Tenant and Tenant
hereby hires from Owner approximately 1,758 R.S.F. of the ninth (9th) floor
substantially as shown on the floor plan annexed hereto as Exhibit A
(hereinafter referred to as the “demised premises”) in the building known as
and located at 229 West 43rd Street, in the Borough of Manhattan, City of New
York, for a term of two (2) years (or until such term shall sooner cease and
expire as hereinafter provided) to commence on April 1, 1999 (hereinafter
referred to as the “Commencement Date”), and to end on March 31, 2001
(hereinafter referred to as the “Expiration Date”), both dates inclusive, at an
annual fixed rental rate of $70,320.00 per annum payable annually in advance
each March 31.

 

The parties hereby agree to the following:

 

Rent, Occupancy

 

1.                                       Tenant
shall pay the rent as above and as hereinafter provided.

 

2.                                       Tenant shall use
and occupy the demised premises for executive and general offices, related to
Tenant’s business, and for no other purpose.

 

Tenant Alterations:

 

3.                                       Tenant shall
make no changes in or to the demised premises of any nature without Owner’s
prior written consent in each instance, which consent may not be unreasonably
withheld.

 

83

 

Maintenance and Repairs:

 

4.                                       Tenant shall,
throughout the term of this lease, take good care of the demised premises and
the fixtures and appurtenances therein. 
Tenant shall be responsible for all damage to the demised premises or
injury arising thereon which were caused by Tenant.

 

Subordination:

 

5.                                       This lease is
subject and subordinate to all ground or underlying leases and to all mortgages
which may now or hereafter affect such leases or the real property of which
demised premises are a part and to all renewals, modifications, consolidations,
replacements and extensions of any such underlying leases and mortgages.

 

Property - Loss, Damage, Reimbursement,
Indemnity:

 

6.                                       Owner or its
agents shall not be liable for any damage to property of Tenant or of others
entrusted to employees of the building, nor for loss of or damage to any property
of Tenant by theft or otherwise, nor for any injury or damage to persons or
property resulting from any cause of whatsoever nature, unless caused by or due
to the negligence of Owner, its agents, servants or employees.  Owner or its agents will not be liable for
any such damage caused by other tenants or persons in, upon or about said
building or caused by operations in construction of any private, public or
quasi public work.  Tenant shall
indemnify and save harmless Owner against and from all liabilities, obligations,
damages, penalties, claims, costs and expenses for which Owner shall not be
reimbursed by insurance, including reasonable attorneys’ fees, paid, suffered
or incurred as a result of any breach by Tenant, Tenant’s agents, contractors,
employees, invitees or licensees, of any covenant or condition of this lease,
or the carelessness, negligence or improper conduct of the Tenant, Tenant’s
agents, contractors, employees, invitees or licensees.  Tenant’s liability under this lease extends
to the acts and omissions of any subtenant, and any agent, contractor,
employee, invitee or licensee of any subtenant. 
In case any action proceeding is brought against Owner by reason of any
such claim, Tenant, upon written notice from Owner, will, at Tenant’s expense,
resist or defend such action or proceeding by counsel approved by Owner in
writing, such approval not to be unreasonable withheld.

 

Destruction, Fire and Other Casualty:

 

7.                                       (a)          If the demised premises
or any part thereof shall be materially damaged by fire or other casualty,
Tenant shall give immediate notice thereof to Owner, this

 

84

 

lease shall terminate effective as of the date of the fire or other
casualty.

 

(b)         Nothing contained
hereinabove shall relieve Tenant from liability that may exist as a result of
damage from fire or other casualty. Notwithstanding the foregoing, each party
shall look first to any insurance in its favor before making any claim against
the other party for recovery for loss or damage resulting from fire or other
casualty, and to the extent that such insurance is in force and collectible and
to the extent permitted by law, Owner and Tenant each hereby releases and
waives all right of recovery against the other or any one claiming through or
under each of them by way of subrogation or otherwise. The foregoing release
and waiver shall be in force only if both releasors’ insurance policies contain
a clause providing that such a release or waiver shall not invalidate the insurance.
If, and to the extent, that such waiver can be obtained only by the payment of
additional premiums, then the party benefiting from the waiver shall pay such
premium within ten days after written demand or shall be deemed to have agreed
that the party obtaining insurance coverage shall be free of any further
obligation under the provisions hereof with respect to waiver of subrogation.
Tenant acknowledges that Owner will not carry insurance on Tenant’s furniture
and/or furnishings or any fixtures or equipment, improvements, or appurtenances
removable by Tenant and agrees that Owner will not be obligated to repair any
damage thereto or replace the same.

 

Assignment, Mortgage, Etc.:

 

8.                                       Tenant, for
itself, its heirs, distributees, executors, administrators, legal
representatives, successors and assigns, expressly covenants that it shall not
assign, mortgage or encumber this agreement, nor underlet, or suffer or permit
the demised premises or any part thereof to be used by others, without the
prior written consent of Owner in each instance which consent may be withheld
for any reason or no reason.

 

Electric Current:

 

9.                                       Tenant covenants
and agrees that at all times its use of electric current shall not exceed the
capacity of existing feeders to the building or the risers or wiring
installation and Tenant may not use any electrical equipment which, in Owner’s
opinion, reasonably exercised, will overload such installations or interfere
with the use thereof by other tenants of the building.

 

85

 

Access to
Premises:

 

10.                                 Owner or Owner’s
agents shall have the right to enter the demised premises in any emergency at
any time, and, at other reasonable times, to examine the same and to make such
repairs, replacements and improvements as Owner may deem necessary and
reasonably desirable to the demised premises.

 

Occupancy:

 

11.                                 Tenant will not at any
time use or occupy the demised premises in violation of the certificate of
occupancy issued for the building of which the demised premises are a part.
Tenant has inspected the premises and accepts them as is, and agrees that Owner
shall not be obligated to perform any work other than the work recently
completed for Tenant’s occupancy.

 

End of Term:

 

12.                                 Upon the expiration or
other termination of the term of this lease, Tenant shall quit and surrender to
Owner the demised premises, broom clean, in good order and condition, ordinary
wear and damages which Tenant is not required to repair as provided elsewhere
in this lease excepted, and Tenant shall remove all its property.

 

Quiet Enjoyment:

 

13.                                 Owner covenants and
agrees with Tenant that upon Tenant paying the rent and additional rent and
observing and performing all the terms, covenants and conditions, on Tenant’s
part to be observed and performed, Tenant may peaceably and quietly enjoy the
premises.

 

Bills and Notices:

 

All notices shall be sent to:

 

	
  For Owner:

  	
  Real Estate Director

  
	
   

  	
  The New York Times Company

  
	
   

  	
  229 W. 43d Street

  
	
   

  	
  New York, NY 10036

  
	
   

  	
   

  
	
  For Tenant:

  	
  Bureau Chief of Asahi Shimbun

  
	
   

  	
  229 W. 43d Street 9th floor

  
	
   

  	
  New York, NY 10036

  

 

Rules and Regulations:

 

15.                                 Tenant and Tenant’s
servants, employees, agents, visitors, and licensees shall observe faithfully,
and comply strictly with, such Rules and Regulations as Owner or Owner’s agents
may from time to time adopt.

 

86

 

Successors and Assigns:

 

16.           The
covenants, conditions and agreements contained in this lease shall bind and
inure to the benefit of Owner and Tenant and their respective heirs,
distributees, executors, administrators, successors, and except as otherwise
provided in this Lease, their assigns.

 

Broker:

 

17.           Tenant
covenants, warrants and represents that, to Tenant’s knowledge, there was no
broker instrumental in consummating this lease, and no conversations or
negotiations were had by Tenant with any broker concerning the renting of the
demised premises.

 

Right to Terminate:

 

18. Either party shall have the right to
terminate this lease at any time as of the last day of any calendar month
during the term hereof upon not less than one hundred eighty (180) days prior
written notice of such termination to the other party, and upon the giving of
such notice, this lease shall end and expire as of the termination date set
forth in such notice as if such date were the date set forth herein as the
expiration date of the term hereof.

 

19. Tenant shall have the right to renew this
lease under the same terms and conditions for an additional two-year period by
giving written notice to landlord six months in advance of expiration.

 

IN WITNESS WHEREOF, Owner and Tenant have
respectively signed and sealed this lease as of the day and year first above
written.

 

	
   

  	
  THE NEW YORK TIMES COMPANY, Owner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Rhonda L. Brauer

  	
   

  
	
   

  	
   

  	
  Name: Rhonda L. Brauer

  
	
   

  	
   

  	
  Title: Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  ASAHI SHIMBUN AMERICA, INC., Tenant

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Masato Tamura

  	
   

  
	
   

  	
   

  	
  Name: Masato Tamura

  
	
   

  	
   

  	
  Title: President

  

 

87

 

SCHEDULE A

 

FLOOR PLAN

 

[To Be Attached]

 

88

 

 

89

 

Exhibit 10

 

Sardi Easement

 

[THE NEW YORK TIMES LOGO]

TIMES SQUARE, NEW YORK 16, N.
Y.

 

March 7, 1958

 

Mr. Vincent Sardi

Sardi’s Restaurant

234 West 44 Street

New York, New York

 

Dear Mr. Sardi:

 

This will confirm our understandings in
connection with your proposed installation of an airconditioning system for
your third floor dining and office area.

 

1.                                       The
New York Times Company, hereinafter called “The Times,” will permit you to install
or have installed on the roof of its building at 216 West Forty-fourth Street two
typhoon air cooled condensing units. The entire cost of installation will be borne
by you, and will take place at a time and during such hours of the day as are specifically
acceptable to The Times.

 

2.                                       You
agree to hold The Times harmless for any loss or expense whatsoever in connection
with the installation or the operation of the condenser unit. You also agree to
keep the unit properly painted and cleaned so that it will present a harmonious
appearance in relation to the rest of our building.

 

3.                                       The
permission herein will last for only so long as The Times is the owner and the occupant
of their building on which it is placed. In the event that The Times sells or
leases the building such sale or lease will not be subject to the permission
herein granted. In such case it will be up to you to make whatever arrangement
you can with the new owner or lessor.

 

4.                                       Finally,
The Times reserves the right to terminate the permission herein granted if The
Times desires to use the space on the roof occupied by the unit for its own
purposes for any reason whatsoever.    In such case, however,
The Times will give you six months’ notice of its intention so to terminate.

 

90

 

5.                                       It
is further understood and agreed that the installation of the equipment will be
undertaken by the S. J. O’Brien Company in accordance with their proposal to you
dated November 14, 1957.  In the
event that there are any substantial alterations in that proposal you agree to
submit them to Mr. John Mitchell, Assistant Mechanical Superintendent of The
Times for his approval prior to proceeding therewith.

 

6.                                       In
the light of the foregoing undertakings on your part The Times will make no
charge for the permission herein granted.

 

If the foregoing correctly sets forth the
understanding that has been reached between us, will you be good enough to
indicate your acceptance thereof.

 

	
   

  	
  Yours very
  truly,

  	
   

  
	
   

  	
   

  
	
   

  	
  THE NEW YORK TIMES COMPANY

  
	
   

  	
   

  
	
   

  	
  BY

  	
  O.E. Dryfoos

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ACCEPTED:  with thanks

  	
   

  
	
   

  	
   

  
	
  Vincent Sardi Jr.

  	
   

  	
   

  
						

 

91

 

S. J. O’BRIEN companies

AIR
CONDITIONING CONTRACTORS

 

	
  560 WEST 34th
  STREET

  	
  •

  	
  NEW YORK I, N.Y.

  	
  •

  	
  WISCONSIN 7-2100

  

 

	
  MARTHA M. O’BRIEN,
  PRESIDENT

  	
   

  	
  HAROLD B. HAMILTON

  
	
  ROBERT R.
  SMITH, EXEC.-VICE-PRESIDENT

  	
   

  	
  VICE-PRESIDENT

  
	
  RAYMOND
  ENDERS TREAS.-SECRETARY

  	
   

  	
  GENERAL MANAGER

  

 

November 14,
1957

 

Sardi’s Restaurant

234 West 44th Street

New York City, N. Y.

 

Att:                           Mr. Gepe Eynard

 

Gentlemen:

 

A detailed
survey of the above premises, for the purpose of air conditioning, has been
completed by our engineering department and we are pleased to submit herein our
findings.

 

	
   

  	
  Very truly yours,

  
	
   

  	
  S. J. O’BRIEN SALES CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  T. Baloben

  
	
  TB: gl

  	
  Chief Engineer

  

 

92

 

Re: Third floor Dining and
Office area

 

Gentlemen:

 

In accordance with your request for an estimate regarding an all-year air
conditioning system for the above premises to perform the following:

 

Summer
Operation

 

1.               Cooling.

2.               Dehumidifying.

3.               Reheating for zone
control of two dining rooms.

 

Intermediate
Seasons, Spring and Fall

 

1.               Cooling with
outside air.

2.               Dehumidifying with
refrigeration.

3.               Reheating for zone
control.

 

Winter
Operation

 

1.               Preheating.

2.               Cooling with
outside air.

3.               Dehumidifying with
refrigeration.

4.               Reheating for zone
control.

 

The above operations to be controlled complete by Johnson pneumatic control
system for 100% automatic operation to include complete automatic smoke exhaust
operated through an electric eye in conjunction with pneumatic controls.

 

93

 

PROPOSAL:

 

The S. J. O’Brien
Sales Corp. proposes to furnish and install the following materials and
equipment:

 

One (1)         Frigidaire ASW-1000 ten
ton self-contained unit with two (2) five ton compressor circuits.

 

One (1)         Preheat steam coil.

 

Two (2)       Reheat steam coils for zone
control.

 

Two (2)       Frigidaire KW-50 air cooled
condensers complete with head pressure control.

 

One (1)         Bayley #222 S.I.S.W.
return air fan capacity 4,000 c.f.m.

 

One (1)         Federal #M-1 sump pump.

 

Three (3)
Magnetic starters.

 

One (1)
Electronic electric eye (smoke exhaust).

 

Johnson service pneumatic control service for 100% automatic operation.

 

94

 

GUARANTEE:

 

This Air Conditioning installation; when operated in accordance with our
instructions will be of sufficient capacity to cool the area herein outlined
below.

 

	
  Conditioned space Dining Room-Office area

  	
   

  	
  in sq. ft

  	
   

  	
  1,210

  	
   

  
	
  People

  	
   

  	
  No.

  	
   

  	
  80

  	
   

  
	
  Lights

  	
   

  	
  No. of watts

  	
   

  	
  3,000

  	
   

  
	
  Motors

  	
   

  	
  No. of H. P.

  	
   

  	
  none

  	
   

  
	
  Glass Area

  	
   

  	
  Sq. Ft.

  	
   

  	
  245

  	
   

  
	
  Type of glass shading - Awnings
      Ven. blinds  xx  Roll shades

  
	
  Misc. heat producing equipment 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Meals

  	
   

  	
   

  
	
   

  	
   

  	
   

  
								

 

plus the normal transmission through enclosing walls, floors or roof.  to an average dry bulb temperature not
exceeding 80°F with an average relative humidity not exceeding 50% or equivalent
effective temperature when the outside conditions are 95°F dry bulb and 75°F
wet bulb.

 

The guarantee is made with the understanding that the building will be
maintained reasonably tight to prevent excessive infiltration and air leakage
and all openings in the conditioned space will be kept closed except for the
entrance and exit of occupants; that the amount of outside air introduced into
the air conditioning system through the air conditioner shall not exceed 2,000
cubic feet per min. and that the air removed from such spaces by exhaust fans
and otherwise shall not exceed this amount.

 

The above guarantees are made with the further understanding that
purchaser will supply the following unless herein stated otherwise:

 

1.               Electric power of proper quantity and
characteristics.

 

2.               None  G. P. M. water at a temperature not exceeding
      °F.

 

3.               200 lbs. of steam per hour continuously
at 5 lbs.

 

per sq. in. gauge.

 

4.  
Necessary drain facilities for water and condensation.

 

95

 

TEMPERING OF FRESH AIR
– Necessary for off season ventilation.

 

GUARANTEE:

 

To temper the outside air introduced through the Air Conditioning
equipment to a temperature of 75°F. when the outside dry Bulb temperature is
not less than     0°F.

 

NOTE: The above
guarantee does not apply unless tempering equipment is included in this
contract.

 

Reheat coils for some control to heat supply air to each dining room 15°.

 

 

HEATING

 

 

GUARANTEE

To heat the conditioned space to an average temperature of not less
than 70°F when the outside temperature is not lower than 0°F.

 

NOTE: The above
guarantee does not apply unless heating equipment is included in this contract.

 

96

 

DUCTWORK:

 

All ductwork shall be installed as indicated on the attached drawings or
hereinafter described. Ductwork, apparatus casing, etc., shall be constructed
of galvanized sheet steel.

 

The minimum gauges of the sheet metal to be used are as follows:

 

	
  Largest Side of Rect. Duct

  	
   

  	
  Gauge

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Upto to 12”

  	
   

  	
  26

  	
   

  
	
  13” to 30”

  	
   

  	
  24

  	
   

  
	
  31” to 60”

  	
   

  	
  22

  	
   

  
	
  61” to 90”

  	
   

  	
  20

  	
   

  
	
  91” and up

  	
   

  	
  18

  	
   

  

 

All ductwork, joints and seams, elbows, branches, transformation
pieces, hangers and bracing will be fabricated and installed in accordance with
the standards of the American Society of Heating and Air Conditioning Engineers
and ductwork will be properly braced to prevent vibration and sagging when
handling the rated volume of air. All canvas connections, fresh air inlet
openings, splitters and dampers, access openings and grilles will be installed
in accordance with CONTRACTOR’S standard practice.

 

GRILLES:

 

Supply and return grilles for distribution of air in the conditioned
spaces.

 

Nine (9) Tuttle and Bailey #647 supply.

Three (3)  Tuttle and Bailey #188
return.

 

97

 

INSTALLATION: All
work to be executed in a workmanlike manner during regular consecutive hours by
union mechanics affiliated with the American Federation of Labor. No overtime
work is included unless specifically stated in this proposal.

 

Purchaser is to supply this contractor with all permits, specifications
and requirements set forth by the Bld’g owner or his agents, pertinent to the
installation of air conditioning equipment and all its component parts.

 

The S. J. O’Brien Sales Corp. shall not be responsible for any existing
violations in or on the premises to be air conditioned which comes under the
jurisdiction of the various city, state, federal or local departments having
jurisdiction.

 

GUARANTEE: The
standard one year guarantee against defects of material and workmanship as
provided by the S. J. O’Brien Sales Corp. will apply to all new equipment
proposed herein. An additional four year factory warranty on all hermetic
refrigeration compressors is included in this proposal.

 

We trust the above meets with your approval. We wish to express our
sincere gratitude for this opportunity to serve you.

 

	
   

  	
  Yours truly,

  
	
   

  	
   

  
	
   

  	
   

  	
  S. J. O’Brien Sales Corp.

  
	
   

  	
   

  	
  T. Balohen

  
	
   

  	
   

  	
  Chief Engineer

  

 

98

 

	
  CUTTING:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Cutting of all opening for pipes, ducts,
  grilles and other parts of the system

  	
  by

  	
  S.J. O’BRIEN

  
	
   

  	
   

  	
   

  
	
  PATCHING & FINISHING:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Patching of all openings

  	
  by

  	
  PURCHASER

  
	
  Roof flashing

  	
  by

  	
  NONE

  
	
  Counter flashing

  	
  by

  	
  NONE

  
	
  Furring of pipes and ducts if desired

  	
  by

  	
  PURCHASER

  
	
  Building of access doors in furred spaces,
  walls and ceilings

  	
  by

  	
  NONE

  
	
  Louvers in doors or undercutting doors

  	
  by

  	
  NONE

  
	
  All painting and redecorating to match
  adjacent work

  	
  by

  	
  PURCHASER

  
	
   

  	
   

  	
   

  
	
  FOUNDATIONS, SUPPORTS:

  	
   

  	
   

  
	
  All foundations and structural supports for
  the proper setting or hanging of equipment

  	
  by

  	
  S.J. O’BRIEN

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS:

  	
   

  	
   

  
	
  Sufficient drawings and details for
  installation of system

  	
  by

  	
  S.J. O’BRIEN

  
	
  Removal of debris and leaving premises
  broom clean

  	
  by

  	
  S.J. O’BRIEN

  
	
  Operating instructions for system

  	
  by

  	
  S.J. O’BRIEN

  
	
  Construction engineer to supervise
  installation

  	
  by

  	
  S.J. O’BRIEN

  
	
  Equipment room enclosure if required

  	
  by

  	
  PURCHASER

  
	
  Delivery and rigging

  	
  by

  	
  S.J. O’BRIEN

  
	
  Soundproofing

  	
  by

  	
  NONE

  
	
  Relocation of sprinkler heads

  	
  by

  	
  NONE

  
	
  Filing with the Department of Water Supply,
  Gas and Electricity

  	
  by

  	
  S.J. O’BRIEN

  
	
  Filing with the Department of Housing &
  Buildings

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  a.

  	
  Structural steel supports

  	
  by

  	
  NONE

  
	
  b.

  	
  Air conditioning & Ventilation

  	
  by

  	
  NONE

  
	
  c.

  	
  Exhaust system

  	
  by

  	
  NONE

  

 

This equipment based on ALL YEAR operation.

 

Any part or parts of the above mentioned jobs
executed by others must conform with S. J. O’Brien Sales Corp. specifications
and written approval.

 

99

 

Supplementary Services

 

In order to properly assemble, erect and
operate the equipment to be supplied on this order, to constitute an integral
system as herein contemplated the necessary supplementary services will be
required of either the S. J. O’Brien Sales Corp. or the purchaser as shown in
the schedule below.

 

	
  ELECTRIC
  SERVICE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  New electric
  service to building

  	
  by

  	
  PURCHASER

  
	
  New service
  switches and meter pan

  	
  by

  	
  PURCHASER

  
	
  Wiring
  equipment

  	
  by

  	
  PURCHASER

  
	
  Wiring to
  and interconnection of controls

  	
  by

  	
  PURCHASER

  
	
   

  	
   

  	
   

  
	
  STEAM OR HOT
  WATER SERVICE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Steam or hot
  water supply, return and drip connections coils, including valves, traps and
  specialities

  	
  by

  	
  S. J. O’BRIEN

  
	
  Steam
  condensate pump

  	
  by

  	
  S. J. O’BRIEN

  
	
  Steam meter

  	
  by

  	
  EXISTING

  
	
   

  	
   

  	
   

  
	
  WATER
  SERVICE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  New water
  service from street mains to meter

  	
  by

  	
  NONE

  
	
  New or
  separate meter

  	
  by

  	
  NONE

  
	
  City water
  lines of sufficient size equipment

  	
  by

  	
  NONE

  
	
  Tower
  waterpiping equipment

  	
  by

  	
  NONE

  
	
  Chilled
  waterpiping equipment

  	
  by

  	
  NONE

  
	
   

  	
   

  	
   

  
	
  DRAINS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Adequate
  drainage facilities equipment

  	
  by

  	
  PURCHASER

  
	
  Sump Pump

  	
  by

  	
  S. J .O’BRIEN

  
	
   

  	
   

  	
   

  
	
  INSULATION:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Insulation
  of steam and hot water lines equipment

  	
  by

  	
  MANUFACTURER

  
	
  Insulation
  of city water lines

  	
  by

  	
  NONE

  
	
  Insulation
  of chilled water lines

  	
  by

  	
  NONE

  
	
  Insulation
  of air conditioning ducts

  	
  by

  	
  S. J. O’BRIEN

  
	
  Insulation
  of exhaust ducts

  	
  by

  	
  NONE

  
	
   

  	
   

  	
   

  
	
  SHEET METAL:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Galvanized
  iron sheet metal work as per A. S. H. V. E. standard

  	
  by

  	
  S. J. O’BRIEN

  
	
  Machine room
  exhaust duct

  	
  by

  	
  S. J. O’BRIEN

  
	
  Ventilation
  ducts

  	
  by

  	
  S. J. O’BRIEN

  

 

100

 

BASE BID

 

The undersigned seller agrees to furnish, deliver, and install the
specified equipment in accordance with the conditions set forth in this
proposal for the sum of $13,169.00 exclusive of 3% New York City Sales Tax on
equipment.

 

The above estimate is based on prevailing labor and material
costs.  If any increases should take
place we reserve the right to renegotiate this estimate.

 

This proposal consists of Ten (10) sheets as agreed between
purchaser and seller.

 

This proposal is subject to Terms and Conditions printed on reverse
side of this page.  It is for prompt
acceptance and does not constitute a contract until approved by a duly
authorized officer of the S. J. O’Brien Sales Corp.

 

PRICE:-

TERMS OF
PAYMENT:-

 

This work is to be started on or about
                                             
and is to be carried on during Union working hours.

 

	
   

  	
  Respectfully submitted

  
	
   

  	
   

  
	
   

  	
  S. J. O’BRIEN
  SALES CORP.

  
	
   

  	
   

  
	
  Accepted,

  	
   

  	
   195

  	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  T.
  Balchen

  	
  Salesman

  
	
   

  	
   

  
	
   

  	
   

  	
  Approved, 

  	
   

  
	
   

  	
  S. J. O’BRIEN SALES CORP.

  
	
   

  	
   

  
	
  By 

  	
   

  	
   

  	
  By 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title

  
												

 

101

 

TERMS
AND CONDITIONS:

 

It is mutually agreed between the Purchaser and the S. J. O’BRIEN SALES
CORP., that:

 

1.                                       The title to and
right to possessions of all materials delivered, whether stored, directed or in
course of erection shall remain in the S. J. O’BRIEN SALES CORP., until the
same shall have been fully paid for. Should the Purchaser make an assignment
for the benefit of creditors or become insolvent, or there be a Receiver
appointed for his property, or shall he fail to comply with any of the terms of
this proposal the whole purchase price, including all notes, drafts or other
obligations given on account shall, at the election of the S. J. O’BRIEN SALES
CORP., become due and payable forthwith.

 

2.                                       That the S. J. O’BRIEN
SALES CORP., guarantees that all materials to be furnished shall be of good
quality and that the work shall be done in a neat workmanlike manner adapted to
the services required and the S. J. O’BRIEN SALES CORP. further guarantees, as
the extent of its obligation to replace or repair at its own expense within one
year from the completion of the work any defects properly chargeable to the
materials or workmanship furnished by it provided notice in writing has been
received by the S. J. O’BRIEN SALES CORP. within the guarantee
period.

 

3.                                       No credit or
allowance shall be made to the Purchaser by reason of any changes or alterations
either in the specifications or the work, unless the changes or alterations and
the credit or allowance be consented to in writing by the S. J. O’BRIEN SALES
CORP.

 

4.                                       The Purchaser
shall notify the S. J. O’BRIEN SALES CORP. in advance when the premises will be
ready for the installation of the material; shall, at all times, give free and
unobstructed access to the place where the work is to be done, and shall put
and keep all surfaces to which the material is to be applied in proper
condition so that the work can be started promptly and, after it is begun,
prosecuted continuously and completed without delay. Should there be any
interruptions to the work by any cause not attributed to the S. J. O’BRIEN
SALES CORP., the S. J. O’BRIEN SALES CORP., shall be paid by the Purchaser in
addition to the contract price, all expenses that it may have incurred on
account of such interruptions.

 

5.                                       If, through no
fault of the S. J. O’BRIEN SALES CORP., the work is not started within sixty
days succeeding the date mentioned in this proposal, the S. J. O’BRIEN SALES
CORP. may cancel this agreement and, in case of such cancellation, the
Purchaser shall pay such reasonable damages as may have been suffered by the S.
J. O’BRIEN SALES CORP.

 

6.                                       The Purchaser
shall, without charge to the S. J. O’BRIEN SALES CORP., (a) supply sufficient
storage room under cover for all materials furnished; (b) allow the use of
elevator or such other facilities as may be available for the handling of
materials; and (c) furnish all water, heat, artificial light and scaffolding
required.

 

7.                                       The Purchaser
assumes all liability for damages to, or destruction or loss of any goods,
supplies, etc, by the fire or otherwise, after they shall have been delivered
at or on the site of the work.

 

8.                                       The S. J. O’BRIEN
SALES CORP. shall not be held accountable for damages or delays due to war,
strikes, fires, accidents or labor difficulties or for any contingencies that
are unavoidable or beyond the control of the S. J. O’BRIEN SALES CORP.

 

9.                                       There are no promises,
agreements or understandings not expressed in this proposal.

 

10.                                 If prior to the
completion of this contract, any sales tax, levy or toll is levied or imposed
by the U. S. Government or by any state or subdivision thereof, which increases
the cost of performance of this contract, the amount of such increased cost
shall be added to the amount of this contract and shall be paid with the final
payment under this contract.

 

11.                                 It is understood and
agreed that the contractor is not to be held liable for any direct or
consequential damages or losses resulting from the installation, operation,
maintenance, or use of the products and material furnished or installed by the
contractor or from any other occurence of any kind or character.

 

102

 

THE NEW YORK
TIMES COMPANY

 

229 WEST 43 STREET

NEW YORK, N.Y. 10035

 

	
  LEGAL DEPARTMENT

  	
  April 25, 1980

  	
  SENDER’S DIRECT

  
	
   

  	
   

  	
  TELEPHONE NUMBER

  
	
  JOHN J. STANTON, JR.

  	
   

  	
  556-1760

  
	
  General Attorney

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  KATHARINE P. DARROW

  	
   

  	
   

  
	
  Assistant General Attorney

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BRENDA BAKER

  	
   

  	
   

  
	
  BARBARA DILL

  	
   

  	
   

  
	
  TRUMAN W. EUSTIS III

  	
   

  	
   

  
	
  RUSSELL T. LEWIS

  	
   

  	
   

  
	
  SOLOMON B. WATSON, IV

  	
   

  	
   

  

 

Mr. Gerald Schoenfeld

Chairman

The Schubert Organization, Inc.

234 West 44th Street

New York, New York 10036

 

Re:                               Ventilation System, Sardi Alley

 

Dear Mr. Schoenfeld:

 

The New York
Times Company requests permission of The Schubert Organization, Inc. to attach
to the east wall of Sardi’s certain ventilation equipment to divert odors of
the alley from The Time building.  The Times
warrants that it will properly maintain the equipment and will remove it from Sardi’s
wall upon request of The Schubert Organization, with reasonable notice.  A copper facing shields it from view and
harmonizes with the copper ornamentation on the Schubert building.

 

If The
Schubert Organization consents, would you please sign the enclosed copy of this
letter and return it to me in the envelope provided?   Thank you.

 

	
   

  	
  Sincerely
  yours,

  
	
   

  	
   

  
	
   

  	
  /s/ Barbara
  Dill

  	
   

  
	
   

  	
  Barbara Dill

  
	
  BD: cr

  	
   

  
	
  Enclosure

  	
   

  
	
  cc:  Mr.
  Riggs

  	
   

  
	
   

  	
   

  
	
  Agreed to
  and Accepted:

  	
   

  
	
  THE SHUBERT
  ORGANIZATION, INC.

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ Gerald
  Schoenfeld

  	
   

  	
   

  
	
  Chairman

  	
   

  	
   

  

 

103Exhibit
10.1

Spescom Software Inc.

Shares of Series G Convertible Preferred Stock and Common Stock Warrants

SUBSCRIPTION AGREEMENT

November 5, 2004

 

 

Mercator
Advisory Group LLC

Monarch
Pointe Fund, Ltd.

555 South Flower Street, Suite 4500

Los Angeles, California 90071

 

Ladies and Gentlemen:

Spescom Software Inc. a California corporation (the
“Company”),
hereby confirms its agreement with Monarch Pointe Fund, Ltd. (the “Purchaser”) and
Mercator Advisory Group, LLC (“MAG”), as
set forth below.

1.             The Securities.  Subject to the terms and conditions herein
contained, the Company proposes to issue and sell to the Purchaser an aggregate
of: (a) Two Thousand Two Hundred (2,200) shares of its Series G Convertible
Preferred Stock (the “Series
G Stock”), which shall be convertible into shares (the “Conversion Shares”)
of the Company’s Common Stock (the “Common Stock”) in accordance with the formula
set forth in the Certificate of Determination further described below and (b)
warrants, substantially in the form attached hereto at Exhibit A (the “Warrants”), to
acquire up to the number of shares of Common Stock equal to $1,100,000 divided
by the Ceiling Price, as such term is defined in the Certificate of
Determination of Series G Preferred Stock as filed with the Secretary of State
of the State of California (the “Certificate of Determination”) (the “Warrant Shares”).  The rights, preferences and privileges of the
Series G Stock are as set forth in the Certificate of Determination Series G in
the form attached hereto as Exhibit B. 
The number of Conversion Shares and Warrant Shares that any Purchaser
may acquire at any time are subject to limitation in the Certificate of
Determination and in the Warrants, respectively, so that the aggregate number
of shares of Common Stock of which such Purchaser and all persons affiliated
with such Purchaser have beneficial ownership (calculated pursuant to Rule
13d-3 of the Securities Exchange Act of 1934, as amended) does not at any time
exceed 9.99% of the Company’s then outstanding Common Stock.

The Series G Stock and the Warrants are sometimes
herein collectively referred to as the “Securities.” 
This Agreement, the Certificate of Determination, and the Registration
Rights Agreement by and among the Company, Purchaser and MAG, entered into
concurrently herewith and attached hereto as Exhibit D, are sometimes
herein collectively referred to as the “Transaction Documents.”

1

The Securities will be offered and sold to the
Purchaser without such offers and sales being registered under the Securities
Act of 1933, as amended (together with the rules and regulations of the
Securities and Exchange Commission (the “SEC”) promulgated thereunder, the “Securities Act”), in
reliance on exemptions therefrom.

In connection with the sale of the Securities, the
Company has made available (including electronically via the SEC’s EDGAR
system) to Purchaser its periodic and current reports, forms, schedules, proxy
statements and other documents (including exhibits and all other information
incorporated by reference) filed with the SEC under the Securities Exchange Act
of 1934, as amended (the “Exchange
Act”).  The Company’s
Annual Report on Form 10-K for the year ended September 30, 2003 and all
subsequent reports, forms, schedules, statements, documents, filings and
amendments filed by the Company with the SEC under the Exchange Act, are
collectively referred to as the “Disclosure Documents.”  All references in this Agreement to financial
statements and schedules and other information which is “contained,” “included”
or “stated” in the Disclosure Documents (or other references of like import)
shall be deemed to mean and include all such financial statements and
schedules, documents, exhibits and other information which is incorporated by
reference in the Disclosure Documents.

2.             Representations and Warranties
of the Company.  Except as set forth
on the Disclosure Schedule (the “Disclosure Schedule”)
delivered by the Company to Purchaser on the Closing Date (as defined in
Section 3 below), the Company represents and warrants to and agrees with
Purchaser and MAG as follows:

(a)           The Disclosure Documents as of their
respective dates did not, and will not (after giving effect to any updated
disclosures therein) as of the Closing Date, contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.  The Disclosure Documents and
the documents incorporated or deemed to be incorporated by reference therein,
at the time they were filed or hereafter are filed with the SEC, complied and
will comply, at the time of filing, in all material respects with the
requirements of the Securities Act and/or the Exchange Act, as the case may be,
as applicable.

(b)           Schedule A attached hereto
sets forth a complete list of the subsidiaries of the Company (the “Subsidiaries”).  Each of the Company and its Subsidiaries has
been duly incorporated and each of the Company and the Subsidiaries is validly
existing in good standing as a corporation under the laws of its jurisdiction
of incorporation, with the requisite corporate power and authority to own its
properties and conduct its business as now conducted as described in the
Disclosure Documents and is duly qualified to do business as a foreign
corporation in good standing in all other jurisdictions where the ownership or
leasing of its properties or the conduct of its business requires such
qualification, except where the failure to be so qualified would not,
individually or in the aggregate, have a material adverse effect on the
business, condition (financial or other), properties or results of operations
of the Company and the Subsidiaries, taken as a whole (any such event, a “Material Adverse Effect”);
as of the Closing Date, the Company will have the authorized, issued and
outstanding capitalization set forth in on Schedule B attached hereto
(the “Company
Capitalization”); except as set forth in the Disclosure
Documents or on Schedule A, the Company does not have any subsidiaries
or own

2

directly or indirectly any
of the capital stock or other equity or long-term debt securities of or have
any equity interest in any other person; all of the outstanding shares of
capital stock of the Company and the Subsidiaries have been duly authorized and
validly issued, are fully paid and nonassessable and were not issued in
violation of any preemptive or similar rights and are owned free and clear of
all liens, encumbrances, equities, and restrictions on transferability (other
than those imposed by the Securities Act and the state securities or “Blue Sky”
laws) or voting; except as set forth in the Disclosure Documents, all of the
outstanding shares of capital stock of the Subsidiaries are owned, directly or
indirectly, by the Company; except as set forth in the Disclosure Documents, no
options, warrants or other rights to purchase from the Company or any
Subsidiary, agreements or other obligations of the Company or any Subsidiary to
issue or other rights to convert any obligation into, or exchange any
securities for, shares of capital stock of or ownership interests in the
Company or any Subsidiary are outstanding; and except as set forth in the
Disclosure Documents or on Schedule C, there is no agreement,
understanding or arrangement among the Company or any Subsidiary and each of
their respective stockholders or any other person relating to the ownership or
disposition of any capital stock of the Company or any Subsidiary or the
election of directors of the Company or any Subsidiary or the governance of the
Company’s or any Subsidiary’s affairs, and, if any, such agreements,
understandings and arrangements will not be breached or violated as a result of
the execution and delivery of, or the consummation of the transactions
contemplated by, the Transaction Documents.

(c)           The Company has the requisite
corporate power and authority to execute, deliver and perform its obligations
under the Transaction Documents.  Each of
the Transaction Documents has been duly and validly authorized by the Company
and, when executed and delivered by the Company, will constitute a valid and
legally binding agreement of the Company, enforceable against the Company in
accordance with its terms except as the enforcement thereof may be limited by
(A) bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium or other similar laws now or hereafter in effect relating to or
affecting creditors’ rights generally or (B) general principles of equity
and the discretion of the court before which any proceeding therefore may be
brought (regardless of whether such enforcement is considered in a proceeding
at law or in equity) (collectively, the “Enforceability Exceptions”).

(d)           The Series G Stock and the Warrants
have been duly authorized and, when issued upon payment thereof in accordance
with this Agreement, will have been validly issued, fully paid and
non-assessable.  The Conversion Shares
issuable have been duly authorized and validly reserved for issuance, and when
issued upon conversion of the Series G Stock in accordance with the terms of
the Certificate of Determination, will have been validly issued, fully paid and
non-assessable.  The Warrant Shares have
been duly authorized and validly reserved for issuance, and when issued upon
exercise of the Warrants in accordance with the terms thereof, will have been
validly issued, fully paid and non-assessable. 
The Common Stock of the Company conforms to the description thereof
contained in the Disclosure Documents. 
The stockholders of the Company have no preemptive or similar rights
with respect to the Common Stock.

(e)           No consent, approval, authorization,
license, qualification, exemption or order of any court or governmental agency
or body or third party is required for the performance of the Transaction
Documents by the Company or for the consummation by the

3

Company of any of the
transactions contemplated thereby, or the application of the proceeds of the
issuance of the Securities as described in this Agreement, except for such
consents, approvals, authorizations, licenses, qualifications, exemptions or
orders (i) as have been obtained on or prior to the Closing Date,
(ii) as are not required to be obtained on or prior to the Closing Date
that will be obtained when required, or (iii) the failure to obtain which
would not, individually or in the aggregate, have a Material Adverse Effect.

(f)            Except as set forth on Schedule D,
none of the Company or the Subsidiaries is (i) in material violation of its
articles of incorporation or bylaws (or similar organizational document), (ii)
in breach or violation of any statute, judgment, decree, order, rule or regulation
applicable to it or any of its properties or assets, which breach or violation
would, individually or in the aggregate, have a Material Adverse Effect, or
(iii) except as described in the Disclosure Documents, in default (nor has any
event occurred which with notice or passage of time, or both, would constitute
a default) in the performance or observance of any obligation, agreement,
covenant or condition contained in any contract, indenture, mortgage, deed of
trust, loan agreement, note, lease, license, franchise agreement, permit,
certificate or agreement or instrument to which it is a party or to which it is
subject, which default would, individually or in the aggregate, have a Material
Adverse Effect.

(g)           The execution, delivery and
performance by the Company of the Transaction Documents and the consummation by
the Company of the transactions contemplated thereby and the fulfillment of the
terms thereof will not (a) violate, conflict with or constitute or result
in a breach of or a default under (or an event that, with notice or lapse of
time, or both, would constitute a breach of or a default under) any of
(i) the terms or provisions of any contract, indenture, mortgage, deed of
trust, loan agreement, note, lease, license, franchise agreement, permit,
certificate or agreement or instrument to which any of the Company or the
Subsidiaries is a party or to which any of their respective properties or
assets are subject, (ii) the Certificate of Incorporation or bylaws of any
of the Company or the Subsidiaries (or similar organizational document) or
(iii) any statute, judgment, decree, order, rule or regulation of any
court or governmental agency or other body applicable to the Company or the
Subsidiaries or any of their respective properties or assets or (b) result
in the imposition of any lien upon or with respect to any of the properties or
assets now owned or hereafter acquired by the Company or any of the
Subsidiaries; which violation, conflict, breach, default or lien would,
individually or in the aggregate, have a Material Adverse Effect.

(h)           The audited consolidated financial
statements included in the Disclosure Documents present fairly the consolidated
financial position, results of operations, cash flows and changes in
shareholders’ equity of the entities, at the dates and for the periods to which
they relate and have been prepared in all material respects in accordance with
generally accepted accounting principles applied on a consistent basis; the
interim un-audited consolidated financial statements included in the Disclosure
Documents present fairly the consolidated financial position, results of
operations and cash flows of the entities, at the dates and for the periods to
which they relate subject to year-end audit adjustments and have been prepared
in all material respects in accordance with generally accepted accounting
principles applied on a consistent basis with the audited consolidated
financial statements included therein; the selected financial and statistical
data included in the Disclosure Documents present fairly the information

4

shown therein and have been
prepared and compiled in all material respects on a basis consistent with the
audited financial statements included therein, except as otherwise stated
therein; and each of the auditors previously engaged by the Company or to be
engaged in the future by the Company is an independent certified public
accountant as required by the Securities Act for an offering registered
thereunder.

(i)            Except as described in the
Disclosure Documents, there is not pending or, to the knowledge of the Company,
threatened any action, suit, proceeding, inquiry or investigation, governmental
or otherwise, to which any of the Company or the Subsidiaries is a party, or to
which their respective properties or assets are subject, before or brought by
any court, arbitrator or governmental agency or body, that, if determined
adversely to the Company or any such Subsidiary, would, individually or in the
aggregate, have a Material Adverse Effect or that seeks to restrain, enjoin,
prevent the consummation of or otherwise challenge the issuance or sale of the
Securities to be sold hereunder or the application of the proceeds therefrom or
the other transactions described in the Disclosure Documents.

(j)            The Company and the Subsidiaries own
or possess adequate licenses or other rights to use all patents, trademarks,
service marks, trade names, copyrights and know-how that are necessary to
conduct their businesses as described in the Disclosure Documents.  None of the Company or the Subsidiaries has
received any written notice of infringement of (or knows of any such
infringement of) asserted rights of others with respect to any patents,
trademarks, service marks, trade names, copyrights or know-how that, if such
assertion of infringement or conflict were sustained, would, individually or in
the aggregate, have a Material Adverse Effect.

(k)           Each of the Company and the
Subsidiaries possesses all licenses, permits, certificates, consents, orders,
approvals and other authorizations from, and has made all declarations and
filings with, all federal, state, local and other governmental authorities, all
self-regulatory organizations and all courts and other tribunals presently required
or necessary to own or lease, as the case may be, and to operate its respective
properties and to carry on its respective businesses as now or proposed to be
conducted as set forth in the Disclosure Documents (“Permits”), except
where the failure to obtain such Permits would not, individually or in the
aggregate, have a Material Adverse Effect and none of the Company or the
Subsidiaries has received any notice of any proceeding relating to revocation
or modification of any such Permit, except as described in the Disclosure
Documents and except where such revocation or modification would not,
individually or in the aggregate, have a Material Adverse Effect.

(l)            Subsequent to June 30, 2004 and
except as described therein or in the Company’s Annual Report on Form 10-K for
the year ended September 30, 2003, as amended, (i) the Company and the
Subsidiaries have not incurred any material liabilities or obligations, direct
or contingent, or entered into any material transactions not in the ordinary
course of business or (ii) the Company and the Subsidiaries have not
purchased any of their respective outstanding capital stock, or declared, paid
or otherwise made any dividend or distribution of any kind on any of their
respective capital stock or otherwise (other than, with respect to any of such
Subsidiaries, the purchase of capital stock by the Company), (iii) there
has not been any material increase in the long-term indebtedness of the Company
or any of the

5

Subsidiaries,
(iv) there has not occurred any event or condition, individually or in the
aggregate, that has a Material Adverse Effect, and (v) the Company and the
Subsidiaries have not sustained any material loss or interference with respect
to their respective businesses or properties from fire, flood, hurricane,
earthquake, accident or other calamity, whether or not covered by insurance, or
from any labor dispute or any legal or governmental proceeding.

(m)          There are no material legal or
governmental proceedings nor are there any material contracts or other
documents required by the Securities Act to be described in a prospectus that
are not described in the Disclosure Documents. 
Except as described in the Disclosure Documents, none of the Company or
the Subsidiaries is in default under any of the contracts described in the
Disclosure Documents, has received a notice or claim of any such default or has
knowledge of any breach of such contracts by the other party or parties
thereto, except for such defaults or breaches as would not, individually or in
the aggregate, have a Material Adverse Effect.

(n)           Each of the Company and the
Subsidiaries has good and marketable title to all real property described in
the Disclosure Documents as being owned by it and good and marketable title to
the leasehold estate in the real property described therein as being leased by
it, free and clear of all liens, charges, encumbrances or restrictions, except,
in each case, as described in the Disclosure Documents or such as would not,
individually or in the aggregate, have a Material Adverse Effect.  All material leases, contracts and agreements
to which the Company or any of the Subsidiaries is a party or by which any of
them is bound are valid and enforceable against the Company or any such
Subsidiary, are, to the knowledge of the Company, valid and enforceable against
the other party or parties thereto and are in full force and effect, in each
case subject to the Enforceability Exceptions..

(o)           Each of the Company and the
Subsidiaries has filed all necessary federal, state and foreign income and
franchise tax returns, except where the failure to so file such returns would
not, individually or in the aggregate, have a Material Adverse Effect, and has
paid all taxes shown as due thereon; and other than tax deficiencies which the
Company or any Subsidiary is contesting in good faith and for which adequate
reserves have been provided in accordance with generally accepted accounting
principles, there is no tax deficiency that has been asserted against the
Company or any Subsidiary that would, individually or in the aggregate, have a
Material Adverse Effect.

(p)           None of the Company or the
Subsidiaries is, or immediately after the Closing Date will be, required to
register as an “investment company” or a company “controlled by” an “investment
company” within the meaning of the Investment Company Act of 1940, as amended
(the “Investment Company
Act”).

(q)           Since January 2002 none of the
Company or the Subsidiaries or, to the knowledge of any of such entities’
directors, officers, employees, agents or controlling persons, has taken,
directly or indirectly, any action for the purpose of causing the stabilization
or manipulation of the price of the Common Stock.

(r)            None of the Company, the Subsidiaries
or any of their respective Affiliates (as defined in Rule 501(b) of
Regulation D under the Securities Act) directly, or

6

through any agent, engaged
in any form of general solicitation or general advertising (as those terms are
used in Regulation D under the Securities Act) in connection with the
offering of the Securities or engaged in any other conduct that would cause
such offering to be constitute a public offering within the meaning of Section 4(2)
of the Securities Act.  Assuming the
accuracy of the representations and warranties of the Purchaser in
Section 6 hereof, it is not necessary in connection with the offer, sale
and delivery of the Securities to the Purchaser in the manner contemplated by
this Agreement to register any of the Securities under the Securities Act.

(s)           There is no strike, labor dispute,
slowdown or work stoppage with the employees of the Company or any of the
Subsidiaries which is pending or, to the knowledge of the Company or any of the
Subsidiaries, threatened.

(t)            Each of the Company and the
Subsidiaries carries general liability insurance coverage comparable to other
companies of its size and similar business.

(u)           Each of the Company and the
Subsidiaries maintains internal accounting controls which provide reasonable
assurance that (A) transactions are executed in accordance with
management’s authorization, (B) transactions are recorded as necessary to
permit preparation of its financial statements and to maintain accountability
for its assets, and (C) access to its material assets is permitted only in
accordance with management’s authorization and (D) the values and amounts
reported for its material assets are compared with its existing assets at
reasonable intervals.

(v)           Except for a due diligence fee
payable to MAG and a broker commission payable to Cappello Capital Corporation,
the Company does not know of any claims for services, either in the nature of a
finder’s fee or financial advisory fee, with respect to the offering of the
Securities and the transactions contemplated by the Transaction Documents.

(w)          The Common Stock is traded on the
Over-the-Counter Bulletin Board (the “OTC BB”). 
Except as described in the Disclosure Documents, the Company currently
is not in violation of, and the consummation of the transactions contemplated
by the Transaction Documents will not violate, any rule of the National
Association of Securities Dealers.

(x)            The Company is eligible to use Form
S-2 for the resale of the Conversion Shares by Purchaser or its transferees and
the Warrant Shares by Purchaser, MAG or their transferees.  The Company has no reason to believe that it
is not capable of satisfying the registration or qualification requirements (or
an exemption therefrom) necessary to permit the resale of the Conversion Shares
and the Warrant Shares under the securities or “blue sky” laws of any
jurisdiction within the United States.

(y)           Set forth on Schedule E is the
Company’s intended use of the proceeds from this transaction.

(z)            Except as set forth on Schedule F,
to the Company’s knowledge, none of the officers or directors of the Company
(i) has been convicted of any crime (other than traffic violations or misdemeanors not involving fraud) or is currently under
investigation

7

or indictment for any such crime, (ii) has been found
by a court or governmental agency to have violated any securities or
commodities law or to have committed fraud or is currently a party to any legal
proceeding in which
either is alleged, (iii) has been the subject of a proceeding under the
bankruptcy laws or any similar state laws, or (iv) has been an officer, director,
general partner, or managing member of an entity which has been the subject of such a proceeding.

3.             Purchase, Sale and Delivery of
the Securities.  On the basis of the
representations, warranties, agreements and covenants herein contained and
subject to the terms and conditions herein set forth, the Company agrees to
issue and sell to the Purchaser, and Purchaser agrees to purchase from the
Company, 2,200 shares of Series G Stock at $1000.00 per share in the amounts
shown on the signature page hereto.  In
connection with the purchase and sale of Series G Stock, for no additional
consideration, the Purchaser and MAG will receive Warrants to purchase the
number of shares of Common Stock equal to $1,100,000 divided by the Ceiling
Price.

The closing of the transactions described herein (the “Closing”) shall
take place at a time and on a date (the “Closing Date”) to be specified by
the parties, which will be no later than 5:00 p.m. (Pacific time) on November 8, 2004.  On the Closing Date, the Company shall
deliver (a) certificates in definitive form for the Series G Stock, (b)
Warrants, (c) the Subscription Agreement, Certificate of Designation and
Registration Rights Agreement, each duly executed on behalf of the Company, and
(d) the Opinion of Counsel in the form attached hereto as Exhibit C.   On the Closing Date, Purchaser shall deliver
(i) One Million Six Hundred Fifty Thousand Dollars ($1,650,000), such amount
constituting 75% of the Purchase Price, by wire transfer of immediately
available funds to an account as directed by the Company, and (ii) the
Subscription Agreement and Registration Rights Agreement, each duly executed on
behalf of the Purchaser and MAG.  The
Closing will occur when all documents and
instruments necessary or appropriate to effect the transactions contemplated
herein are exchanged by the parties and all actions taken at the Closing will
be deemed to be taken simultaneously.

Upon the Closing, Purchaser shall deliver (a) to the
Company, the sum of $1,615,000; (b) to MAG, the sum of 100% of the Due
Diligence Fee or $20,000, and legal fees in the amount of $15,000.

Provided that Company is not in default under
Paragraph 10(i) (iv) or (v) hereof, the Purchaser covenants and agrees to pay,
within two trading days after Company files the Registration Statement (as
defined in Paragraph 9 below), the balance of the Purchase Price or $550,000 to
an account designated by Company in writing by wire transfer of immediately
available funds.

4.             Certain Covenants of the Company.  The Company covenants and agrees with
Purchaser as follows:

(a)           None of the Company or any of its
Affiliates will sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any “security” (as defined in the Securities Act) which
would be integrated with the sale of the Securities in a manner which would
require the registration under the Securities Act of the Securities.

8

(b)           The Company will not become, at any
time prior to the expiration of three years after the Closing Date, an open-end
investment company, unit investment trust, closed-end investment company or
face-amount certificate company that is or is required to be registered under
the Investment Company Act.

(c)           None of the proceeds of the Series G
Stock will be used to reduce or retire any insider note or convertible debt
held by an officer or director of the Company.

(d)           Subject to Section 10 of this
Agreement, the Conversion Shares and the Warrant Shares will be eligible for
trading on the OTC BB or such market on which the Company’s shares are
subsequently listed or traded, immediately following the effectiveness of the
Registration Statement.

(e)           The Company will use reasonable
efforts to do and perform all things required to be done and performed by it
under this Agreement and the other Transaction Documents and to satisfy all
conditions precedent on its part to the obligations of the Purchaser to
purchase and accept delivery of the Securities.

5.             Conditions of the Purchaser’s
Obligations.  The obligation of
Purchaser to purchase and pay for the Securities is subject to the following
conditions unless waived in writing by the Purchaser:

(a)           The representations and warranties of
the Company contained in this Agreement shall be true and correct in all
material respects (other than representations and warranties with a Material
Adverse Effect qualifier, which shall be true and correct as written) on and as
of the Closing Date; the Company shall have complied in all material respects
with all agreements and satisfied all conditions on its part to be performed or
satisfied hereunder at or prior to the Closing Date.

(b)           None of the issuance and sale of the
Securities pursuant to this Agreement or any of the transactions contemplated
by any of the other Transaction Documents shall be enjoined (temporarily or
permanently) and no restraining order or other injunctive order shall have been
issued in respect thereof; and there shall not have been any legal action,
order, decree or other administrative proceeding instituted or, to the
Company’s knowledge, threatened against the Company or against any Purchaser
relating to the issuance of the Securities or any Purchaser’s activities in
connection therewith or any other transactions contemplated by this Agreement,
the other Transaction Documents or the Disclosure Documents.

(c)           The Purchaser shall have received
certificates, dated the Closing Date and signed by the Chief Executive Officer
and the Chief Financial Officer of the Company, to the effect of paragraphs
5(a) and (b).

(d)           The Purchaser shall have received an
opinion of Gibson, Dunn & Crutcher LLP with respect to the authorization of
the Series G Stock, the Conversion Shares, the Warrants and the Warrant Shares
and other customary matters in the form attached hereto as Exhibit C.

9

 

6.             Representations and Warranties
of the Purchaser.

(a)           Each of Purchaser and MAG represents
and warrants to the Company that the Securities to be acquired by it hereunder
(including the Conversion Shares and the Warrant Shares that it may acquire
upon conversion or exercise of the Series G Stock or the Warrants,
respectively) are being acquired for their own account for investment and with
no intention of distributing or reselling such Securities (including the
Conversion Shares and the Warrant Shares that it may acquire upon conversion or
exercise thereof, as the case may be) or any part thereof or interest therein
in any transaction which would be in violation of the securities laws of the
United States of America or any State. 
Nothing in this Agreement, however, shall prejudice or otherwise limit a
Purchaser’s right to sell or otherwise dispose of all or any part of such
Conversion Shares or Warrant Shares under an effective registration statement
under the Securities Act and in compliance with applicable state securities laws
or under an exemption from such registration. 
By executing this Agreement, Purchaser further represents that such
Purchaser does not have any contract, undertaking, agreement or arrangement
with any person to sell, transfer or grant participation to any person with
respect to any of the Securities.

(b)           Each of Purchaser and MAG understands
that the Securities (including the Conversion Shares and the Warrant Shares
that it may acquire upon conversion or exercise thereof, as the case may be)
have not been registered under the Securities Act and may not be offered,
resold, pledged or otherwise transferred except (a) pursuant to an
exemption from registration under the Securities Act (and, if requested by the
Company, based upon an opinion of counsel acceptable to the Company) or
pursuant to an effective registration statement under the Securities Act and
(b) in accordance with all applicable securities laws of the states of the
United States and other jurisdictions.

Each of Purchaser and MAG agree to the imprinting,
so long as appropriate, of the following legend on the Securities (including
the Conversion Shares and the Warrant Shares that it may acquire upon
conversion or exercise thereof, as the case may be):

The shares of stock
evidenced by this certificate have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered, sold, pledged or
otherwise transferred (“transferred”) in the absence of such registration or an
applicable exemption therefrom. In the absence of such registration, such
shares may not be transferred unless, if the Company requests, the Company has
received a written opinion from counsel in form and substance satisfactory to
the Company stating that such transfer is being made in compliance with all
applicable federal and state securities laws.

The legend set forth above may be removed if and
when the Conversion Shares or the Warrant Shares, as the case may be, are
disposed of pursuant to an effective registration statement under the
Securities Act or in the opinion of counsel to the Company experienced in the
area of United States Federal securities laws such legends are no longer
required under applicable requirements of the Securities Act.  The Series G Stock, the Warrants, the
Conversion Shares and the Warrant Shares shall also bear any other legends
required by applicable Federal

10

or state securities laws,
which legends may be removed when in the opinion of counsel to the Company
experienced in the applicable securities laws, the same are no longer required
under the applicable requirements of such securities laws.  The Company agrees that it will provide
Purchaser, upon request, with a substitute certificate, not bearing such legend
at such time as such legend is no longer applicable.  Purchaser agrees that, in connection with any
transfer of the Conversion Shares or the Warrant Shares by it pursuant to an
effective registration statement under the Securities Act, Purchaser will
comply with all prospectus delivery requirements of the Securities Act.  The Company makes no representation, warranty
or agreement as to the availability of any exemption from registration under
the Securities Act with respect to any resale of the Series G Stock, the
Warrants, the Conversion Shares or the Warrant Shares.

(c)           Each of Purchaser and MAG represents
and warrants to the Company that it is an “accredited investor” within the
meaning of Rule 501(a) of Regulation D under the Securities Act and that
neither Purchaser nor MAG is an “underwriter” within the meaning of Section
2(11) of the Securities Act.  Each of
Purchaser and MAG represents and warrants to the Company that neither Purchaser
nor MAG learned of the opportunity to acquire Securities or any other security
issuable by the Company through any form of general advertising or public
solicitation.

(d)           Each of Purchaser and MAG represents
and warrants to the Company that it has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating
the merits and risks of the prospective investment in the Securities, having
been represented by counsel, and has so evaluated the merits and risks of such
investment and is able to bear the economic risk of such investment and, at the
present time, is able to afford a complete loss of such investment.

(e)           Each of Purchaser and MAG represents
and warrants to the Company that its overall commitment to investments which
are not readily marketable is not disproportionate to its net worth, and its
purchase of the Securities will not cause such overall commitment to become
excessive.

(f)            Each of Purchaser and MAG recognize
that the purchase of the Securities involves a high degree of risk.

(g)           Each of Purchaser and MAG represents
and warrants to the Company that all information it has provided to the Company
including, but not limited to, its financial position and its knowledge of
financial and business matters is true, correct and complete as of the date of
execution of this Subscription Agreement. 
Each of Purchaser and MAG undertakes to provide promptly to the Company
written notice of any material changes in its financial position or otherwise,
and such information shall be true, correct and complete as of the date
given.  Each of Purchaser and MAG
understands that the Company will rely to a material degree upon the
representations contained therein.

(h)           Purchaser represents and warrants to
the Company that (i) the purchase of the Securities to be purchased by it has
been duly and properly authorized and this Agreement has been duly executed and
delivered by it or on its behalf and constitutes the valid and legally binding
obligation of the Purchaser, enforceable against the Purchaser in accordance

11

with its terms, subject to
the Enforceability Exceptions, (ii) the purchase of the Securities to be
purchased by it does not conflict with or violate its charter, by-laws or any
law, regulation or court order applicable to it; and (iii) the purchase of
the Securities to be purchased by it does not impose any penalty or other
onerous condition on the Purchaser under or pursuant to any applicable law or
governmental regulation.

(i)            Each of Purchaser and MAG represents
and warrants to the Company that neither it nor any of its directors, officers,
employees, agents, partners, members, controlling persons or shareholders
holding 5% or more of the Common Stock outstanding on the Closing Date, has
taken or will take, directly or indirectly, any actions designed, or might
reasonably be expected to cause or result in the stabilization or manipulation
of the price of the Common Stock.

(j)            Each of Purchaser and MAG
acknowledges it or its representatives have reviewed and understand the
Transaction Documents and Disclosure Documents and further acknowledges that it
or its representatives have been afforded (i) the opportunity to ask such
questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of the
offering of the Securities and the merits and risks of investing in the
Securities; (ii) access to information about the Company and the Company’s
financial condition, results of operations, business, properties, management
and prospects sufficient to enable it to evaluate its investment in the
Securities; and (iii) the opportunity to obtain such additional information
which the Company possesses or can acquire without unreasonable effort or
expense that is necessary to verify the accuracy and completeness of the
information contained in the Disclosure Documents.

(k)           .Each of Purchaser and MAG represents
and warrants to the Company that it has based its investment decision solely
upon the information contained in the Disclosure Documents and such other
information as may have been provided to it or its representatives by the
Company in response to their inquiries, and has not based its investment
decision on any research or other report regarding the Company prepared by any
third party (“Third Party
Reports”).  Each of
Purchaser understands and acknowledges that (i) the Company does not endorse
any Third Party Reports and (ii) its actual results may differ materially from
those projected in any Third Party Report.

(l)            Each of Purchaser and MAG represents
and warrants to the Company that no oral or written representations have been
made and no oral or written information has been furnished to them or their
advisors in connection with this offering that were in any way inconsistent
with the information set forth in the Disclosure Documents.

(m)          Each of Purchaser and MAG understands
and acknowledges that (i) any forward-looking information included in the
Disclosure Documents supplied to Purchaser by the Company or its management is
subject to risks and uncertainties, including those risks and uncertainties set
forth in the Disclosure Documents; and (ii) the Company’s actual results may
differ materially from those projected by the Company or its management in such
forward-looking information.

12

(n)           Each of Purchaser and MAG understands
and acknowledges that (i) the Securities are offered and sold without
registration under the Securities Act in a private placement that is exempt
from the registration provisions of the Securities Act and (ii) the
availability of such exemption depends in part on, and that the Company and its
counsel will rely upon, the accuracy and truthfulness of the foregoing
representations and Purchaser hereby consents to such reliance.

(o)           Each of Purchaser and MAG understand
that no U.S. federal or state agency, or any agency or governmental or
regulatory authority in any other country, including without limitation, the
U.S. Securities and Exchange Commission, has passed upon the Securities or made
any finding or determination as to the fairness of this investment.

(p)           Each of Purchaser and MAG represents
and warrants to the Company that it is not a prohibited investor under the
anti-money laundering or anti-terrorism laws of any jurisdiction, including
without limitation, any country, territory, nation or national association.

(q)           Each of Purchaser and MAG understands
that the Company and its assets may be subject to the laws and regulations of
many jurisdictions, including but not limited to anti-terrorism laws and
anti-money laundering laws.  Neither MAG nor
Purchaser, nor any person or entity who controls MAG or Purchaser, nor, to the best of MAG and Purchaser’s knowledge, any
person or entity who owns any direct equity interest in either of them, is identified
on the list of “Specially Designated Nationals and Blocked Persons” (“SDNs”)
maintained by the U.S. Department of Treasury’s Office of Foreign Assets
Control (“OFAC”), and neither Purchaser nor MAG is owned or controlled by any SDN.
Neither Purchaser nor MAG is involved in business arrangements or otherwise
engaged in transactions with or involving countries subject to economic or
trade sanctions imposed by the United States Government, or with or involving
SDNs in violation of the regulations maintained by the OFAC.  Purchaser and MAG are in full compliance with
the Bank Secrecy Act (31 U.S.C. § 5311 et. seq.) and 18 U.S.C. §§ 1956 and 1957
and the regulations under such statutes; and any other applicable
anti-terrorist or anti-money laundering Laws and regulations.

(r)            Each of Purchaser and MAG represent
and warrant to the Company that neither Purchaser nor any of its affiliates
has, directly or indirectly, offered to “short sell”, contracted to “short
sell,” otherwise engaged in any “short selling” or encouraged others to “short
sell” the securities of the Company, including, without limitation, shares of
Common Stock that will be received as a result of the conversion of the Series
G Stock or the exercise of the Warrants. 
For purposes of this Agreement, “short selling” shall include any short
sale (whether or not against the box) and any similar hedging or derivative
securities transaction.

7.             Covenants of Purchasers.

(a)           Not to Short Sell Stock.  Purchaser, on behalf of itself, its
affiliates , its successors and assigns and any other direct or indirect
transferee holding any of the Warrants, the Series G Stock or the Registrable
Securities, hereby covenants and agrees not to, directly or indirectly, offer
to “short sell”, contract to “short sell” or otherwise “short sell” or
encourage others to “short sell” the securities of the Company, including,
without limitation,

13

shares of Common Stock that
will be received as a result of the conversion of the Series G Stock or the
exercise of the Warrants.

(b)           Volume Limitation.  For a period of one year after the Closing
Date, Purchaser and MAG, on behalf of themselves and their affiliates, shall
not, directly or indirectly, sell in the aggregate during any trading day
shares of Common Stock totaling more than seventeen percent (17%) of the total
shares of Common Stock traded on such day.

8.             Termination.

(a)           This Agreement may be terminated in
the sole discretion of the Company by notice to Purchaser if at the Closing
Date:

(i)            the representations and warranties
made by Purchaser in Section 6 are not true and correct in all material
respects; or

(ii)           as to the Company, the sale of the
Securities hereunder (i) is prohibited or enjoined by any applicable law or
governmental regulation or (ii) subjects the Company to any penalty, or in its
reasonable judgment, other onerous condition under or pursuant to any
applicable law or government regulation that would materially reduce the
benefits to the Company of the sale of the Securities to such Purchaser, so
long as such regulation, law or onerous condition was not in effect in such
form at the date of this Agreement.

(b)           This Agreement may be terminated by
Purchaser or MAG by notice to the Company given in the event that the Company
shall have failed, refused or been unable to satisfy all material conditions on
its part to be performed or satisfied hereunder on or prior to the Closing
Date, or if after the execution and delivery of this Agreement and immediately
prior to the Closing Date, trading in securities of the Company on the OTC BB
shall have been suspended.

(c)           This Agreement may be terminated by
mutual written consent of all parties.

9.             Registration.  Within 30 days after the Closing Date, the
Company shall use commercially reasonable efforts to prepare and file with the
SEC a Registration Statement covering the resale of the maximum number of
Conversion Shares issuable upon conversion of the Series G Stock and the
Warrant Shares issuable upon exercise of the Warrants (collectively, the “Registrable Securities”),
as set forth in the Registration Rights Agreement.

10.           Redemption.  At any time after the Closing, the Company
may, at its option, issue a redemption notice to Purchaser and MAG (a “Redemption
Notice”) for all or a portion of the outstanding Series G Stock and Warrants
(including any Common Stock issued upon the conversion of the Series G Stock or
exercise of the Warrants). The Redemption Notice shall specify (a) the
redemption date (the “Redemption Date”), which date shall be at least five (5)
trading days after the date the Redemption Notice is received by Purchaser and
MAG, and (b) the number of shares of Series G Stock and/or Warrants to be
redeemed. The redemption price for the Series G Stock shall equal $1500 per
share (or the equivalent value on an as-converted

14

basis for each share of
Common Stock). The redemption price per share for the Warrants shall equal 150%
of the exercise price per share. Unless full payment is received by Purchaser
and MAG within three (3) trading days after the Redemption Date, the Redemption
Notice shall be void.

11.           Event of Default.  If an Event of Default (as defined below)
occurs and remains uncured for a period of 15 days, the Purchaser and MAG shall
have the right to exercise any or all of the rights given to the Purchaser and
MAG relating to the Securities, as further described in the Certificate of
Determination.  In addition, the
Conversion Price (as defined in the Certificate of Determination) Series G
shall be reduced from 85% of the Market Price (as defined in the Certificate of
Determination) to 75% of the Market Price, subject to the Ceiling Price and
Floor Price as those terms are defined in the Certificate of Determination.

The Holder need not provide and the Company hereby
waives any presentment, demand, protest or other notice of any kind, and the
Holder may immediately and without expiration of any grace period enforce any
and all of its rights and remedies hereunder and all other remedies available
to it under applicable law. Such declaration may be rescinded and annulled by
Holder at any time prior to payment hereunder. No such rescission or annulment
shall affect any subsequent Event of Default or impair any right consequent
thereon.

An “Event of Default” shall include the commencement by the
Company of a voluntary case or proceeding under the bankruptcy laws or the
Company’s failure to: (i) discharge or stay a bankruptcy proceeding within
60 days of such action being taken against the Company, (ii) file the
Registration Statement with the SEC within 30 days after the Closing Date,
(iii) maintain trading of the Company’s Common Stock on the OTC BB except for
any periods when the stock is listed on the NASDAQ Small Stock Market, the
NASDAQ National Stock Market, the AMEX or the NYSE, (iv) pay the expenses
referred to below or the Due Diligence Fee within three (3) days after the
Closing; or (vi) deliver to Purchaser, or Purchaser’s broker, as directed,
Common Stock that Purchaser has converted within three (3) business days of
such conversion.

12.            Notices.  All communications hereunder shall be in
writing and shall be hand delivered, mailed by first-class mail, couriered by
next-day air courier or by facsimile and confirmed in writing (i) if to the
Company, at the addresses set forth below, or (ii) if to a Purchaser or MAG, to
the address set forth for such party on the signature page hereto.

If to the Company:

 

Spescom
Software Inc.

10052 Mesa Ridge Court, Suite 100

San Diego, CA 92121

Telephone No.:  (858) 625-3000 (ext.
6831)

Facsimile No.:  (858) 625-3010

Attention:  John Low

15

 

with a copy to:

 

Gibson, Dunn & Crutcher LLP

1881 Page Mill Rd.

Palo Alto, CA 94063

Telephone No.:  (650) 849-5383

Facsimile No.:  (650) 849-5083

Attention:  Russell C. Hansen

 

All such notices and communications shall be deemed
to have been duly given:  (i) when
delivered by hand, if personally delivered; (ii) five business days after being
deposited in the mail, postage prepaid, if mailed certified mail, return
receipt requested; (iii) one business day after being timely delivered to a
next-day air courier guaranteeing overnight delivery; (iv) the date of
transmission if sent via facsimile to the facsimile number as set forth in this
Section or the signature page hereof prior to 6:00 p.m. on a business day, or
(v) the business day following the date of transmission if sent via facsimile
at a facsimile number set forth in this Section or on the signature page hereof
after 6:00 p.m. or on a date that is not a business day.  Change of a party’s address or facsimile
number may be designated hereunder by giving notice to all of the other parties
hereto in accordance with this Section.

13.           Survival Clause.  The respective representations, warranties,
agreements and covenants of the Company and the Purchaser set forth in this
Agreement shall survive until the first anniversary of the Closing.

14.           Fees and Expenses.  Within three (3) days of Closing, the Company
agrees to pay Purchaser’s legal expenses incurred in connection with the
preparation and negotiation of the Transaction Documents up to $10,000.  Any sums paid by Company upon execution of
the Term Sheet will be credited against this amount.

15.           Attorneys’ Fees.  If any action at law or in equity is
necessary to enforce or interpret the terms of this Agreement, the Warrants or
the Certificate of Determination, the prevailing party or parties shall be
entitled to receive from the other party or parties reasonable attorneys’ fees,
costs and necessary disbursements in addition to any other relief to which the
prevailing party or parties may be entitled.

16.           Successors.  This Agreement shall inure to the benefit of
and be binding upon Purchaser, MAG and the Company and their respective
successors and legal representatives, and nothing expressed or mentioned in
this Agreement is intended or shall be construed to give any other person any
legal or equitable right, remedy or claim under or in respect of this
Agreement, or any provisions herein contained; this Agreement and all
conditions and provisions hereof being intended to be and being for the sole
and exclusive benefit of such persons and for the benefit of no other person. Neither
the Company nor any Purchaser may assign this Agreement or any rights or
obligation hereunder without the prior written consent of the other party.

16

17.           No Waiver; Modifications in
Writing.  No failure or delay on the
part of the Company, MAG or any Purchaser in exercising any right, power or
remedy hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right, power or remedy preclude any other or
further exercise thereof or the exercise of any other right, power or
remedy.  The remedies provided for herein
are cumulative and are not exclusive of any remedies that may be available to
the Company, MAG or any Purchaser at law or in equity or otherwise.  No waiver of or consent to any departure by
the Company, MAG or any Purchaser from any provision of this Agreement shall be
effective unless signed in writing by the party entitled to the benefit
thereof, provided that notice of any such waiver shall be given to each party
hereto as set forth below.  Except as
otherwise provided herein, no amendment, modification or termination of any
provision of this Agreement shall be effective unless signed in writing by or
on behalf of each of the Company, MAG and the Purchaser.  Any amendment, supplement or modification of
or to any provision of this Agreement, any waiver of any provision of this
Agreement, and any consent to any departure by the Company, MAG or any
Purchaser from the terms of any provision of this Agreement shall be effective
only in the specific instance and for the specific purpose for which made or
given.  Except where notice is
specifically required by this Agreement, no notice to or demand on the Company
in any case shall entitle the Company to any other or further notice or demand
in similar or other circumstances.

18.           Entire Agreement.  This Agreement, together with Transaction
Documents, constitutes the entire agreement among the parties hereto and
supersedes all prior agreements, understandings and arrangements, oral or
written, among the parties hereto with respect to the subject matter hereof and
thereof.

19.           Severability.  If any provision of this Agreement is held to
be invalid or unenforceable in any respect, the validity and enforceability of
the remaining terms and provisions of this Agreement shall not in any way be
affected or impaired thereby.

20.           APPLICABLE LAW.  THE VALIDITY AND INTERPRETATION OF THIS
AGREEMENT, AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT
GIVING EFFECT TO PROVISIONS RELATING TO CONFLICTS OF LAW TO THE EXTENT THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.  THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY
AGREE THAT ACTIONS, SUITS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS
AGREEMENT MAY BE BROUGHT ONLY IN STATE OR FEDERAL COURTS LOCATED IN THE CITY OF
LOS ANGELES, CALIFORNIA AND HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF
SUCH COURTS FOR SUCH PURPOSE.

21.           Counterparts.  This Agreement may be executed in two or more
counterparts and may be delivered by facsimile transmission, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument.

17

22.           If the foregoing correctly sets forth
our understanding, please indicate your acceptance thereof in the space
provided below for that purpose, whereupon this Agreement shall constitute a
binding agreement among the Company, the Purchaser and MAG.

	
   

  	
  Very truly yours,

  
	
   

  	
  Spescom Software Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 

  	
  Carl Mostert

  
	
   

  	
   

  	
  Name:

  	
  Carl Mostert

  
	
   

  	
   

  	
  Title:

  	
  President

  

18

ACCEPTED AND AGREED:

 

	
  Mercator Advisory Group, LLC

  	
   

  	
  Monarch Pointe Fund, Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ David Firestone

  	
   

  	
  /s/ 

  	
  David Firestone

  
	
   

  	
  David Firestone

  	
   

  	
  By:

  	
  David Firestone

  
	
   

  	
  Managing Member

  	
   

  	
  Its:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Warrants: 550,000

  	
   

  	
   

  	
  Shares of Series G Stock
  Purchased: 2,200

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Purchase Price: $2,200,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Warrants: 2,200,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Addresses for Notice to Purchaser and MAG:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Mercator Advisory Group, LLC

  
	
   

  	
   

  	
   

  	
   

  	
  555 South Flower Street, Suite 4500

  
	
   

  	
   

  	
   

  	
   

  	
  Los Angeles, California 90071

  
	
   

  	
   

  	
   

  	
   

  	
  Attention: David Firestone

  
	
   

  	
   

  	
   

  	
   

  	
  Facsimile: (213) 533-8285

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  with copy to:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  David C. Ulich, Esq.

  
	
   

  	
   

  	
   

  	
   

  	
  Sheppard, Mullin, Richter
  & Hampton LLP

  
	
   

  	
   

  	
   

  	
   

  	
  333 South Hope Street, 48th
  Floor

  
	
   

  	
   

  	
   

  	
   

  	
  Los Angeles, California
  90071

  
	
   

  	
   

  	
   

  	
   

  	
  Facsimile: (213) 620-1398

  

 

19

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