Document:

Exhibit
10.39

 

ACCURIDE
CORPORATION

STOCK OPTION AGREEMENT

 

DIRECTORS

 

	
  Name:

  	
  Accuride Corporation 2005 Incentive Award Plan

  
	
  Address:

  	
  Directors’
  Option

  
	
   

  	
   

  	
   

  
	
   

  	
  Grant:

  	
  Option to purchase 13,900
  shares of Common Stock

  
	
  Taxpayer

  	
   

  
	
  Identification Number:

  	
  Exercise Price: $

  
	
   

  	
   

  
	
  Signature:

  	
  Grant
  Date: April           ,
  2005

  

 

Effective on the Grant Date you have been
granted an option to purchase shares of Common Stock of Accuride Corporation
(the “Company”) in the amount and at the exercise price designated above, in
accordance with the provisions of the Accuride Corporation 2005 Incentive Award
Plan (the “Plan”).  This option may be
exercised for whole shares only.

 

This
option is fully vested, but may be exercised only in accordance with the
following:

(a)                                  33.33% of the
shares subject to the option will be exercisable on the first anniversary of
the Grant Date, and 33.33% will be exercisable on each anniversary thereafter,
with the option being exercisable in full on the third anniversary of the Grant
Date;

(b)                                 notwithstanding
the foregoing, this option shall be fully exercisable (i) upon your death, or
(ii) upon a Change of Control.

The
option will be deemed exercised upon your completing the exercise procedures
established by the Company and your payment of the option exercise price per
share and any applicable tax withholding to the Company.  Payment may be made in cash or such other
method as the Company may permit from time to time as set forth in the Plan.

The
option will expire and no longer be exercisable on the tenth anniversary of the
Grant Date.

The
Company has the authority to deduct or withhold, or require you to remit to the
Company, an amount sufficient to satisfy applicable federal, state, local and
foreign taxes arising from this option. 
You may satisfy your tax obligation, in whole or in part, by
either:  (i) electing to have the Company
withhold shares otherwise to be delivered with a fair market value equal to the
minimum amount of the tax withholding obligation; or (ii) surrendering to the
Company previously owned Common Stock with a fair market value equal to the
minimum amount of the tax withholding obligation.

This
option is not transferable except by will or the laws of descent and
distribution.

This option is granted under and governed by
the terms and conditions of the Plan. 
You acknowledge and agree that the Plan is discretionary in nature and
may be amended, cancelled, or terminated by the Company, in its sole
discretion, at any time.  The grant of an
option under the Plan is a one-time benefit and does not create any contractual
or other right to receive a grant of options or benefits in lieu of options in
the future.  Future grants of options, if
any, will be at the sole discretion of the Company, including, but not limited
to, the timing of the grant, the number of stock options, vesting provisions,
and the exercise price.  The Plan has
been introduced voluntarily by the Company and in accordance with the
provisions of the Plan may be terminated by the Company at any time.  By execution of this Agreement, you consent
to the provisions of the Plan and this Agreement.  Defined terms used herein shall have the
meaning set forth in the Plan, unless otherwise defined herein.

 

COMPANY:

ACCURIDE CORPORATION

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  

 

2Exhibit
10.1

 

CONTRACT OF SALE

 

THIS CONTRACT OF SALE (this “Agreement”) is made and entered into as of
the 15th day of April, 2005, by and between Metro Affiliates, Inc., a New York
corporation having an address at 399 Exterior Street, Bronx, New York  10451(“Seller”) and Pantheon Properties, LLC,
a New Jersey limited liability company, having an address at 119 W. 57th
Street, Penthouse South, New York, NY 
10019 (“Purchaser”).

 

W I T N E S S E T H: 

 

A.            Seller
shall sell to Purchaser, and Purchaser shall purchase from Seller, at the price
and upon the terms and conditions set forth in this Agreement:  (a) the
parcel of land more particularly described on Exhibit A attached hereto
and made a part hereof (collectively, the “Land”), together with all right, title
and interest, if any, of Seller in and to any streets and roads adjoining the
Land, (b) the buildings, improvements and
other structures, including an existing billboard located upon the Land
(collectively, the “Improvements”), (c)
all other easements and rights appurtenant to the Land, if any (collectively,
the “Appurtenant Rights”), (d) all right,
title and interest of Seller in, to and under the Leases (as hereinafter
defined), and (e) all right, title and
interest of Seller, if any, in and to the fixtures, equipment and other
personal property owned by Seller and attached or appurtenant to the Land or
Improvements which are (collectively, the “Personal Property”; the Land, the
Appurtenant Rights, the Improvements, the Leases, and the Personal Property,
collectively, the “Property”).

 

B.            Purchaser
acknowledges that the Property is being sold on an “as is” “where is” and “with
all faults” basis on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, for $10.00 in hand paid and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows:

 

1.             Purchase
and Sale.  Upon the terms and
conditions hereinafter set forth, Seller shall sell to Purchaser, and Purchaser
shall purchase from Seller, the Property.

 

2.             Purchase
Price.  The purchase price (the “Purchase
Price”) for the Property shall be the sum of $4,460,000.

 

3.             Payment
of Purchase Price.  The Purchase
Price shall be paid to Seller by Purchaser as follows:

 

3.1           Deposit.  Concurrently herewith, Purchaser shall
deposit with Stroock & Stroock & Lavan LLP (“Escrowee”) by a bank wire
transfer of immediately available federal funds to an account designated by
Escrowee the sum of $25,000 (together with all interest thereon, the “Initial
Deposit”), which Initial Deposit shall be held by Escrowee in accordance with
the terms and conditions of Section 10 hereof.  Upon the expiration of the Due Diligence
Period, as defined in Section 4.2, unless the Agreement is otherwise
terminated pursuant to its terms, Purchaser shall deposit an additional sum
with Escrowee in the amount of Twenty Five Thousand ($25,000) Dollars (the “Additional
Deposit”).  The Initial Deposit and/or
the Additional Deposit, together with all interest thereon, may at times herein
be collectively or

 

 

singularly referred to as the “Deposit”.  Upon the expiration of the Due Diligence
Period, the Deposit shall become non-refundable, subject to the terms of this
Agreement.

 

3.2           Closing
Payment.  The Purchase Price, as
adjusted by the application of the Deposit and by the prorations and credits
specified herein, shall be paid by Purchaser, by wire transfer of immediately
available federal funds to an account or accounts designated in writing by
Seller.

 

4.             Title
Matters; Conditions Precedent.

 

4.1           Title
Matters.

 

4.1.1        Title
to the Property.

 

(a) As a condition to the Closing (as defined in Section 5)
a title insurance company licensed to do business in New York State
(collectively, the “Title Company”) shall have committed to insure Purchaser as
the fee owner of the Property in the amount of the Purchase Price by issuance
of an ALTA (1992 form) owner’s title insurance policy (the “Owner’s Policy”)
subject only to the Permitted Exceptions (as hereinafter defined).

 

(b) Purchaser received a commitment No. NY041505 (the “Title
Commitment”) for an owner’s fee title insurance policy with respect to the
Property from Commonwealth Land Title Insurance Company (the “Title Company”),
a copy of which has been delivered to Seller’s counsel.  Purchaser has not completed its review of the
Title Commitment and Purchaser shall order, at its sole cost and expense,
within five (5) Business Days following the date of execution and delivery by
both parties of this Agreement, from the Title Company, and shall cause the
Title Company to deliver an updated version of the Title Commitment (the “Updated
Title Commitment”), together with, to the extent not previously delivered,
true, legible (to the extent available) and complete copies of all instruments
giving rise to any defects or exceptions to title to the Property, to Seller’s
attorneys concurrently with delivery of the Updated Title Commitment to
Purchaser or Purchaser’s attorneys.  If
Purchaser should object to any exceptions(s) to title to the Property which
appear in either the Title Commitment or the Updated Title Commitment other
than the Permitted Exceptions (such exception(s) being herein called,
collectively, the “Unpermitted Exceptions”), subject to which Purchaser is unwilling
to accept title, and Purchaser shall provide Seller with written notice  (the “Title Objection Notice”) thereof within
fifteen (15) days after receipt of the Updated Title Commitment by Purchaser’s
attorneys, Seller, in its sole and absolute discretion, may undertake to
eliminate the same subject to the terms and conditions of this Section 4.1.  Purchaser hereby waives any right Purchaser
may have to advance, as objections to title or as grounds for Purchaser’s
refusal to close this transaction, any Unpermitted Exception of which Purchaser
does not notify Seller within such fifteen (15) day period pursuant to the
Title Objection Notice unless (i) such
Unpermitted Exception was first raised by the Title Company subsequent to the
date of the Updated Title Commitment by a commitment modification accompanied
by legible (to the extent available) and complete copies of instruments giving
rise to the Unpermitted Exception, and (ii)
Purchaser shall notify Seller of the same within seven (7) days after the Title
Company shall notify Purchaser’s counsel of such Unpermitted Exception (failure
to so notify Seller shall be deemed

 

2

 

to be a waiver by Purchaser of its right to raise such Unpermitted
Exception as an objection to title or as a ground for Purchaser’s refusal to
close the transaction contemplated by this Agreement).  Notwithstanding anything to the contrary
contained in this Agreement, Seller, in its sole discretion, shall have the
right to adjourn the Closing for a period not to exceed sixty (60) days (such
period of time being herein called the “Extension Period”), provided that
Seller shall notify Purchaser, in writing, within ten (10) days after receipt
by Seller of the Title Objection Notice, whether or not it will endeavor to
eliminate such Unpermitted Exceptions. 
Notwithstanding the foregoing or anything to the contrary set forth in
this Agreement, Seller shall not under any circumstance be required or obligated
to cause the cure or removal of any Unpermitted Exception including, without
limitation, to bring any action or proceeding, to make any payments or
otherwise to incur any expense in order to eliminate any Unpermitted Exception
or to arrange for title insurance insuring against enforcement of such
Unpermitted Exception against, or collection of the same out of, the Property,
notwithstanding that Seller may have attempted to do so, or may have obtained
an adjournment of the Scheduled Closing Date for such purpose; provided,
however, Seller shall, on or before Closing, satisfy any mortgage or deed of
trust or other lien or security instrument (including oustanding UCC
Statements) placed on the Property by Seller or any other matter voluntarily
created by Seller after the date hereof.

 

(c) In the event that Seller is unable, or elects not,
to eliminate all Unpermitted Exceptions in accordance with the provisions of
this Section 4.1.1, and to convey title to the Property in accordance with
the terms of this Agreement on or before the Closing Date (whether or not the
Closing is adjourned as provided in Section 4.1.1(b)), Seller shall notify
Purchaser that it elects not to remove the same, in which event Purchaser shall
have the right, as its sole remedy for such election of Seller, by delivery of
written notice to Seller within five (5) Business Days following receipt of
notice from Seller of its election not to remove such Unpermitted Exceptions,
to either (i) terminate this Agreement by
written notice delivered to Seller (in which event Escrowee shall return the
Deposit, to Purchaser together with the Termination Fee referred to in Section 4.2.2
hereof, subject to satisfaction of the conditions set forth in such Section,
and no party hereto shall have any further obligations in connection herewith
except under those provisions that expressly survive the Closing or a
termination of this Agreement), or (ii)
accept title to the Property subject to such Unpermitted Exception(s) without
an abatement in or credit against the Purchase Price.  The failure of Purchaser to deliver timely
any written notice of election under this Section 4.1.1(c) shall be
conclusively deemed to be an election under clause (ii) above.

 

(d) If, on the Closing Date, there are any liens or
encumbrances that Seller is obligated to discharge under this Agreement, Seller
shall have the right (but not the obligation) to use any portion of the
Purchase Price to pay and discharge the same, either by way of payment or by
alternative manner reasonably satisfactory to the Title Company, and the same
shall not be deemed to be Unpermitted Exceptions.

 

4.1.2        Permitted
Exceptions to Title.  The Property
shall be sold and conveyed subject to the following exceptions to title (the “Permitted
Exceptions”):

 

(a) any state of facts that an accurate survey may
show;

 

3

 

(b) those matters specifically set forth on Exhibit
B attached hereto for each parcel forming the Property;

 

(c) all laws, ordinances, rules and regulations of the
United States, the State and City of New York, or any agency, department,
commission, bureau or instrumentality of any of the foregoing having
jurisdiction over the Property (each, a “Governmental Authority”), as the same
may now exist or may be hereafter modified, supplemented or promulgated on or
before Closing;

 

(d) all presently existing and future liens of real
estate taxes or assessments and water rates, water meter charges, water
frontage charges and sewer taxes, rents and charges, if any, provided that such
items are not yet due and payable;

 

(e) any other matter or thing affecting title to the
Property that Purchaser shall have agreed or be deemed to have agreed to waive
as an Unpermitted Exception;

 

(f) a lease with Seller (the “New Lease”) in the form
of Exhibit C hereto to be entered into on the Closing Date and created
immediately following delivery of the deed as contemplated by this Agreement.

 

4.1.3        Survey.  Purchaser shall order, at its sole cost and
expense, within five (5) business days following the date of execution and
delivery by both parties of this Agreement, a survey of the Property, prepared
by a surveyor licensed by the State of New York, certified by said surveyor to
Purchaser and Seller as having been prepared in accordance with the minimum
detail requirements of the ALTA land survey requirements, and cause a copy of
the survey to be delivered to Seller and Seller’s attorneys simultaneously with
the delivery of same to Purchaser.

 

4.2           Due
Diligence Reviews.  Except for title
and survey matters (which shall be governed by the provisions of Section 4.1
above), Purchaser shall have until 5:00 p.m. (Eastern time) on the date which
shall be the forty-fifth  (45th) day from
the date of execution and delivery by both parties of this Agreement (including
such date of delivery) TIME BEING OF THE ESSENCE (the period of time commencing
upon the above delivery date and continuing through, and including the
forty-fifth  (45th) day from the date of
execution and delivery by both parties of this Agreement (including such date
of delivery) being herein called the “Due Diligence Period”) within which to
perform and complete all of Purchaser’s due diligence examinations, reviews of
environmental and compliance matters and conditions respecting the Property
(collectively, the “Investigations”), which Investigations shall at all times
be subject to Purchaser’s compliance with the provisions of this Section 4.2.  The Investigations as to environmental
matters shall be limited to the items set forth in Schedule 4.2
hereto.  During the Due Diligence Period,
Seller shall provide Purchaser with reasonable access to the Property upon
reasonable advance notice.  Any entry
upon the Property and all Investigations shall be made or performed during
Seller’s normal business hours and at the sole risk and expense of Purchaser,
and shall not interfere with the activities on or about the Property of
Seller.  Purchaser shall:

 

4

 

(a) promptly repair any damage to the Property
resulting from any such Investigations and replace, refill and regrade any
holes made in, or excavations of, any portion of the Property used for such
Investigations so that the Property shall be in the same condition that it
existed in prior to such Investigations;

 

(b) fully comply with all laws applicable to the
Investigations and all other activities undertaken in connection therewith;

 

(c) permit Seller to have a representative present
during all Investigations undertaken hereunder;

 

(d) take all actions and implement all protections
necessary to ensure that the Investigations and the equipment, materials, and
substances generated, used or brought onto the Property in connection with the
Investigations, pose no threat to the safety or health of persons or the
environment, and cause no damage to the Property or other property of Seller or
other persons;

 

(e) furnish to Seller, at no cost or expense to
Seller, copies of all surveys, soil test results, engineering, asbestos,
environmental and other studies and reports (other than internal analysis and
proprietary information of the Purchaser) relating to the Investigations which
Purchaser shall obtain with respect to the Property promptly after Purchaser’s
receipt of same;

 

(f) maintain or cause to be maintained, at Purchaser’s
expense, a policy of commercial general liability insurance, with a broad form
contractual liability endorsement and with a combined single limit of not less
than $1,000,000 per occurrence for bodily injury and property damage,
automobile liability coverage including owned and hired vehicles with a
combined single limit of $1,000,000 per occurrence for bodily injury and
property damage, and an excess umbrella liability policy for bodily injury and
property damage in the amount of $5,000,000, insuring Purchaser and Seller as
additional insureds, against any injuries or damages to persons or property
that may result from or are related to (i)
Purchaser’s and/or Purchaser’s Representatives’ (as hereinafter defined) entry
upon the Property, (ii) any
Investigations or other activities conducted thereon, and/or (iii) any and all other activities undertaken by
Purchaser and/or Purchaser’s Representatives, all of which insurance shall be
on an “occurrence form” and otherwise in such forms reasonably acceptable to
Seller and with an insurance company reasonably acceptable to Seller, and
deliver a copy of such insurance policy to Seller prior to the first entry on
the Property;

 

(g) not permit the Investigations or any other
activities undertaken by Purchaser or Purchaser’s Representatives to result in
any liens, judgments or other encumbrances being filed or recorded against the
Property, and Purchaser shall, at its sole cost and expense, immediately
discharge of record any such liens or encumbrances that are so filed or recorded
(including, without limitation, liens for services, labor or materials
furnished); and

 

(h) indemnify Seller and any agent, advisor,
representative, affiliate, employee, director, partner, member, beneficiary,
investor, servant, shareholder, trustee or other person or entity acting on
Seller’s behalf or otherwise related to or affiliated with Seller
(collectively,

 

5

 

“Seller Related Parties”) and hold harmless Seller and Seller Related
Parties from and against any and all claims, demands, causes of action, losses,
damages, liabilities, costs and expenses (including, without limitation,
attorneys’ fees and disbursements), suffered or incurred by Seller or any
Seller Related Party to the extent arising out of or in connection with (i) Purchaser’s and/or Purchaser’s
Representatives’ entry upon the Property, (ii)
any Investigations or other activities conducted thereon by Purchaser or
Purchaser’s Representatives, (iii) any
liens or encumbrances filed or recorded against the Property as a consequence
of the Investigations and/or (iv) any and
all other activities undertaken by Purchaser or Purchaser’s Representatives
with respect to the Property.  The
foregoing indemnity shall not include any claims, demands, causes of action,
losses, damages, liabilities, costs or expenses (including, without limitation,
attorneys’ fees and disbursements) that result solely from the mere discovery,
by Purchaser or Purchaser’s Representatives, of existing conditions on the
Property during Investigations conducted pursuant to, and in accordance with,
the terms of this Agreement.

 

Without limiting the foregoing, in no event shall Purchaser or Purchaser’s
Representatives, without the prior written consent of Seller:  (x) except as set forth in Schedule 4.2,
make any intrusive physical testing (environmental, structural or otherwise) at
the Property (such as soil borings, water samplings or the like), and/or (y)
contact any Governmental Authority having jurisdiction over the Property, provided
that in no event shall the foregoing preclude the Title Company from searching
any Governmental Authority records or Purchaser searching Governmental
Authority records customarily searched in connection with an environmental
Phase I investigation.

 

The foregoing obligations shall survive the Closing or a termination of
this Agreement.

 

4.2.1        Property Information
and Confidentiality.  All Information
(as hereinafter defined) provided to Purchaser shall be subject to the
following terms and conditions:

 

(a)           Neither
Seller nor any Seller Related Party makes any representation or warranty as to
the truth, accuracy or completeness of the Information, or any other studies,
documents, reports or other information provided to Purchaser hereunder and
expressly disclaims any implied representations as to any matter disclosed or
omitted other than that Seller has delivered full and complete copies of all of
the material in question.

 

(b)           Purchaser
agrees that neither Purchaser nor Purchaser’s Representatives shall, at any
time or in any manner, either directly or indirectly, divulge, disclose or
communicate to any person, entity or association the Information, or any other
knowledge or information acquired by Purchaser or Purchaser’s Representatives
from Seller, any Seller Related Party or by Purchaser’s own inspections and
investigations, other than matters that were in the public domain at the time
of receipt by Purchaser or Purchaser’s Representatives or subsequently through
no breach of the provisions hereof. 
Notwithstanding the foregoing, Purchaser may disclose such of the
Information and its other reports, studies, documents and other matters
generated by it and the terms of this Agreement (i) as required by law or court
order (provided prior written notice of such disclosure shall be provided to
Seller) and (ii) as Purchaser deems necessary or desirable to Purchaser’s
Representatives in connection with

 

6

 

Purchaser’s Investigation
and the transaction contemplated hereby, provided that those to whom such
Information is disclosed are informed of the confidential nature thereof and
agree(s) to keep the same confidential in accordance with the terms and
conditions hereof provided, however, with respect to disclosures to Purchaser’s
mortgage lender, an agreement therefrom as to confidentiality shall not be
required but Purchaser shall be responsible for any loss or damage resulting
from disclosure of confidential material by such lender in violation hereof.

 

(c)           Purchaser
shall indemnify and hold harmless Seller and all Seller Related Parties from
and against any and all claims, demands, causes of action, losses, damages,
liabilities, costs and expenses (including, without limitation, attorneys’ fees
and disbursements) suffered or incurred by Seller or any Seller Related Party
to the extent arising out of or in connection with a breach by Purchaser or
Purchaser’s Representatives of the provisions of this Section 4.2.1.

 

(d)           Purchaser
and Purchaser’s Representatives shall use reasonable care to maintain in good
condition all of the Information furnished or made available to Purchaser
and/or Purchaser’s Representatives in accordance with this Section 4.2.  In the event this Agreement is terminated,
Purchaser and Purchaser’s Representatives shall promptly deliver to Seller all
originals and copies of the Information in the possession of Purchaser and
Purchaser’s Representatives.

 

(e)           As
used in this Agreement, the term “Information” shall mean any all environmental
reports and records relating to the Property, including, without limitation,
testing results and reports, permits, licenses, certificates and correspondence
from Governmental Authorities.  All
Information shall be delivered to Purchaser or made available for review by,
Purchaser’s directors, officers, employees, affiliates, partners, members, or
other representatives, including, without limitation, attorneys, and
accountants (collectively, “Purchaser’s Representatives”), by Seller or any
Seller Related Party or their agents or representatives within five (5)
Business Days following execution and delivery of this Agreement by the
parties. .

 

(f)            In
addition to any other remedies available to Seller, Seller shall have the right
to seek equitable relief, including, without limitation, injunctive relief or
specific performance, against Purchaser or Purchaser’s Representatives in order
to enforce the provisions of this Section 4.2.1.

 

(g)           The
provisions of this Section 4.2.1 shall survive the Closing until
termination of the New Lease or a termination of this Agreement provided that,
after Closing, Information may be made available to prospective mortgagees
(including mortgage brokers) or purchasers, lessees and/or investors for the
Property.

 

4.2.2        Termination
Right.  If, on or before the
expiration of the Due Diligence Period, based upon the Investigations and/or
the Information, Purchaser shall determine that it no longer intends to acquire
the Property for any reason, then Purchaser shall promptly notify Seller of such
determination in writing on or before 5:00 p.m. (Eastern time) on the date that
is one (1) Business Day immediately following the date the Due Diligence Period
shall expire (such notice being herein called the “Termination Notice”),
whereupon the Initial

 

7

 

Deposit shall be promptly returned to Purchaser, and
this Agreement and the obligations of the parties hereunder shall terminate
(and no party hereto shall have any further obligations in connection herewith
except under those provisions that expressly survive the Closing or a
termination of this Agreement).  If
Purchaser shall deliver to Seller, prior to, or within two (2) Business Days
of, the delivery of the Termination Notice, copies of all reports, studies or
other information obtained or received in connection with Investigations
including, without limitation, all environmental reports and studies including
those relating to the matters described in Schedule 4.2 hereto, Seller
shall promptly reimburse Purchaser for the cost of the environmental study or
studies but in no event in excess of $15,000 (the “Termination Fee”).  In the event that Purchaser shall fail to
deliver the Termination Notice to Seller on or before the date and time set
forth above, Purchaser shall be deemed to have agreed that the foregoing
matters are acceptable to Purchaser and that it intends to proceed with the
acquisition of the Property without a reduction in, or an abatement in or
credit against, the Purchase Price (and, thereafter, Purchaser shall have no
further right to terminate this Agreement pursuant to this Section 4.2.2).

 

4.2.3 Possible Environmental Remediation.  In the event that (i) the Investigations give
rise to a claim of an existing environmental condition with respect to the
Property, and (ii) Purchaser has elected not to deliver a Termination Notice
pursuant to Section 4.2.2 above, Purchaser shall deliver written notice to
Seller setting forth the basis for such claimed environmental condition
(including copies of any written reports) and agreeing that Purchaser has not
otherwise elected to terminate this Agreement. 
Seller and Purchaser shall thereafter promptly select a mutually
acceptable environmental consultant/contractor (“the Consultant”) to evaluate
the claim and to prepare a written cost estimate for the correction or
remediation thereof (the “Cost Estimate”). 
Any party(ies) identified in Schedule 4.2.3-A shall be deemed a
mutually acceptable Consultant.  If the
Cost Estimate shall be less than $200,000: (a) Seller and Purchaser shall
jointly and promptly engage one of the Consultants to undertake to perform the
work necessary for correcting or remediating the environmental condition, (b)
the Closing shall occur promptly after such engagement as otherwise
contemplated by Section 5 hereof, and (c) Seller shall, at Closing,
deposit in escrow with the Title Company from purchase proceeds for the
Property an amount equal to 125% of the Cost Estimate, but in no event in
excess of $200,000, pursuant to an escrow agreement described below.  If the Cost Estimate shall be in excess of
$200,000, Purchaser shall have the option, to be exercised by notice in writing
to Seller to be given within ten (10) days of receipt of the Cost Estimate by
Purchaser, to: (y) terminate this Agreement by delivery to Seller of a
Termination Notice of the character described in Section 4.2.2 above, or
(z) agree to contribute to the correction or remediation costs as contemplated
below.  If Purchaser should fail to
exercise its options pursuant to (y) or (z) above, Purchaser shall be deemed to
have selected alternative (z). If Purchaser shall terminate this Agreement
pursuant to (y), the Termination Fee referred to in Section 4.2.2 shall be
paid to Purchaser subject to the satisfaction of the conditions set forth
therein with respect to delivery of reports and studies.  If the Purchaser shall agree to contribute to
the cost of correction or remediation pursuant to this Section, the provisions
of (a) and (b) above shall be applicable and, at closing Seller and Purchaser
shall each deposit an amount in escrow with the Title Company, which amount
shall be $200,000 for Seller and 125% of the Cost Estimate in excess of
$200,000 plus 25% of the Cost Estimate between $160,000 and $200,000 for Purchaser.  The escrow agreement (the “Escrow Agreement”)
with the Title Company shall be in the form of Schedule

 

8

 

4.2.3-B hereto and both parties agree to
execute and deliver such escrow agreement. 
Funds in escrow shall be advanced to pay for the work involved for
correction or remediation of the environmental condition as such work
progresses.  Evidence of completion of
correction or remediation of the environmental condition shall be delivered to
Seller and Purchaser and shall consist of a written notice to the effect that
no further action is required with respect to such environmental condition from
either the Department of Environmental Conservation (“DEC”), if the
environmental condition shall have been reported to, and is subject to the
jurisdiction and oversight of, the DEC, or from the Consultant in any other
instance.  In the event that any
additional environmental condition shall be discovered in the conduct of the
work originally contemplated under the Cost Estimate, the Consultant shall be
instructed to prepare a written cost estimate of the additional work required
for correction or remediation thereof and Purchaser, after receipt thereof,
shall promptly deposit 125% of such amount in escrow with the Title
Company.  The Consultant shall thereafter
proceed with the correction or remediation of the additional condition as
otherwise contemplated hereunder.  Any
balance in the escrow after completion of all of the work involved for all
conditions shall be retained by Seller unless the final cost of all work shall
be less than 75% of the Cost Estimate, in which event Seller shall receive an
amount equal to the difference between 75% of the Cost Estimate and the final
cost of all work.

 

If the Seller shall challenge the existence of an environmental
condition initially claimed by Purchaser, such existence shall be determined by
one of the Consultants selected by Seller in the process of the determination
of the Cost Estimate.  Seller and
Purchaser agree that if at any time Purchaser’s mortgage lender shall require
that the escrow deposit to be held by the Title Company hereunder shall be
transferred to such lender, the Title Company shall be directed to make such
transfer, subject to execution and delivery of a mutually agreeable escrow
agreement with such lender substantially in accordance with Section 4.2.3-B
hereto.

 

4.3           Conditions
Precedent to Obligations of Purchaser. 
The obligation of Purchaser to consummate the transactions contemplated
by this Agreement shall be subject to the performance and observance by Seller
of all covenants, warranties and agreements of this Agreement to be performed
or observed by Seller prior to or on the Closing Date, the correctness of the
representations and warranties of Seller on the Closing Date and the
fulfillment on or before the Closing Date of all other conditions precedent to
Closing benefiting Purchaser specifically enumerated in this Agreement, any or
all of which may be waived by Purchaser in its sole discretion.

 

4.4           Conditions
Precedent to Obligations of Seller. 
The obligation of Seller to consummate the transactions contemplated by
this Agreement shall be subject to the performance and observance by Purchaser
of all covenants and agreements of this Agreement to be performed or observed
by Purchaser prior to or on the Closing Date, and the fulfillment on or before
the Closing Date of all other conditions precedent to Closing benefiting Seller
specifically set forth in this Agreement, any or all of which may be waived by
Seller in its sole discretion.

 

5.             Closing.  If this Agreement shall not be terminated as
provided herein.  The closing (the “Closing”)
of the sale and purchase contemplated herein shall occur at 10:00 a.m. within
thirty (30) days after expiration of the Due Diligence Period at the offices of Stroock

 

9

 

& Stroock & Lavan LLP,
180 Maiden Lane, New York, New York 10038 or, if applicable, at the office of
Purchaser’s financing institution or their counsel in the New York metropolitan
area (the date on which the Closing shall occur being herein referred to as the
“Closing Date”).  The Closing shall
constitute approval by each party of all matters to which such party has a
right of approval and a waiver of all conditions precedent.

 

5.1           Seller
Deliveries.  At the Closing, Seller
shall deliver or cause to be delivered to Purchaser as the case may be the following items executed and acknowledged
by Seller, as appropriate:

 

(a)           a
deed (the “Deed”) in the form attached hereto and made a part hereof as Schedule 5.1(a).

 

(b)           intentionally
deleted.

 

(c)           a
certification of non-foreign status in the form attached hereto and made a part
hereof as Schedule 5.1(c).

 

(d)           intentionally
deleted.

 

(e)           copies
of all existing surveys, blueprints, drawings, plans and specifications for or
with respect to the Property or any part thereof, to the extent the same are in
Seller’s possession.

 

(f)            intentionally
omitted.

 

(g)           An
assignment of the Billboard Lease referred to in Section 7.1.1(a) in the
form of Schedule 5.1(g).

 

(h)           intentionally
deleted.

 

(i)            such
further instruments as may be necessary to record the Deed.

 

(j)            evidence
reasonably satisfactory to the Title Company respecting the due organization of
Seller and the due authorization and execution by Seller of this Agreement and
the documents required to be delivered hereunder including, without limitation,
a certificate of a corporate resolution of Seller’s board of directors
authorizing the transactions contemplated by this Agreement, and an affidavit
relating to title items which cannot be searched or otherwise ascertained by
the Title Company in the form of Schedule 5.1(j).

 

(k)           for New York City Property, a duly executed
counterpart of the New York City Real Property Transfer Tax Return, or
electronic filing thereof, if required together with payment of applicable
taxes.

 

(l)            for New York State Property:  (i) a duly executed counterpart of the
Combined Real Estate Transfer Tax Return and Credit Line Mortgage Certificate (Form
TP-584) or electronic filing thereof, if required, together with payment of
applicable taxes, and (ii) a

 

10

 

duly executed counterpart of
the State of New York, State Board of Real Property Services, Real Property
Transfer Report (RP – 5217) or electronic filing thereof, if required.

 

(m)          the
New Lease.

 

(n)           a
notice of the transfer of the Property to the tenant under the Billboard Lease.

 

(o)           the
Escrow Agreement, if needed.

 

5.2           Purchaser
Deliveries.  At the Closing,
Purchaser shall deliver or cause to be delivered to Seller, the following items
executed and acknowledged by Purchaser, as appropriate:

 

(a)           payment
of the Purchase Price to be made in accordance with Section 3 above.

 

(b)           an
assumption of the Billboard Lease in the form of Schedule 5.1(g).

 

(c)           all
applicable transfer tax forms referred to in 5.1 above, if any, which require
execution by a grantee.

 

(d)           such
further instruments as may be necessary to record the Deed.

 

(e)           evidence
reasonably satisfactory to Seller and the Title Company respecting the due
organization of Purchaser and the due authorization and execution by Purchaser
of this Agreement and the documents required to be delivered hereunder
including, without limitation, a certificate of the managing member of
Purchaser confirming authorization of the transactions contemplated by this
Agreement.

 

(f)            the
New Lease.

 

(g)           the
Escrow Agreement, if needed.

 

5.3           Reaffirmation.  The Closing of the transactions contemplated
hereby this Agreement shall constitute a reaffirmation, as of the Closing Date,
of the parties respective representations and warranties set forth herein.

 

5.4           Closing
Costs.  Seller shall pay all transfer
taxes, including transfer taxes of the State and City of New York, payable in
connection with the transaction contemplated herein.  Purchaser shall pay (a) the title insurance premium for an Owner’s Policy or Policies, (b) the cost of any title endorsements and
affirmative insurance required by Purchaser, (c)
the costs of any survey (or an update thereof), (d) all recording charges payable in connection with the recording
of each Deed, and (e) all fees,
costs or expenses in connection with any of Purchaser’s due diligence
reviews.  Any other closing costs shall
be allocated in accordance with local custom. 
Except as expressly provided in the indemnities set forth in this
Agreement, Seller and

 

11

 

Purchaser shall pay their respective legal, consulting
and other professional fees and expenses incurred in connection with this
Agreement and the transaction contemplated hereby and their respective shares
of prorations as hereinafter provided. 
The provisions of this Section 5.3 shall survive the Closing or a
termination of this Agreement.

 

5.5           Prorations.

 

5.5.1        Since
the New Lease provides for the payment by the Seller of all expenses of the
Property, no Closing prorations shall be made. 
Seller shall provide evidence reasonably satisfactory to Purchaser that
all real estate taxes and other charges referred to in Section 4.1.2(d)
have been paid.

 

5.5.2        The
provisions of this Section 5.4 shall survive the Closing.

 

6.             Condemnation
or Destruction of Property.  In the
event that, after the date hereof but prior to the Closing Date, either (i) any
portion of the Property is taken pursuant to eminent domain proceedings or
condemnation or (ii) any of the improvements on the Property (other than the
Billboard) are damaged or destroyed by fire or other casualty, Seller shall
promptly deliver, or cause to be delivered, to Purchaser, notice of any such
eminent domain proceedings or casualty. 
If the amount of the damage (as determined by an independent third party
contractor or engineer selected by Seller and reasonably approved by Purchaser)
shall exceed the sum of $446,000 or the condemnation shall affect greater than
10% of the area of the Land, Purchaser shall, in either case, have the right to
terminate this Agreement by written notice to Seller given within ten (10) days
after Seller’s notification to Purchaser of the estimated amount of damages or
the determination of the area affected by the condemnation, whereupon the
Deposit shall be promptly returned to Purchaser, and this Agreement and the
obligations of the parties hereunder shall terminate (and no party hereto shall
have any further obligations in connection herewith except under those
provisions that expressly survive a termination of this Agreement).  If the Agreement shall not be terminated by
Purchaser, the parties shall proceed to Closing as contemplated by this
Agreement and Seller shall be obligated for repair or restoration as provided
in the New Lease, regardless of whether the damage occurred prior to the
commencement of the New Lease.  In
connection with the repairs or restoration occasioned by a condemnation, any
excess condemnation award after completion of repair or construction shall be
paid to Purchaser.  Seller and Purchaser
agree to cooperate with each other in connection with pursuit and the
settlement of any condemnation award referred to herein.  The
parties hereby waive the provisions of any statute which provides for a
different outcome or treatment in the event of a casually or a condemnation or
eminent domain proceeding (including, without limitation, Section 5-1311
of the General Obligations Law of the Sate of New York).

 

7.             Representations,
Warranties and Covenants.

 

7.1           Representations,
Warranties and Covenants of Seller.

 

7.1.1        Representations
and Warranties of Seller.  Subject to
the provisions of this Section 7.1.1, Seller hereby represents, warrants
and covenants to Purchaser that, as of the date of this Agreement:

 

12

 

(a)           Leases.  Seller has no knowledge of any leases,
licenses or other occupancy agreements (written or oral) to which Seller is a
party or is bound affecting any portion of the Property (collectively “Leases”)
which will be in force on the Closing Date other than the Lease Agreement dated
August 5, 1999, between Seller and Outer Limits, LLC relative to a
billboard on the Land (the “Billboard Lease”).

 

(b)           Litigation.
 To the best of Seller’s knowledge, there
is no pending or threatened litigation or condemnation action against the
Property or against Seller with respect to the Property as of the date of this
Agreement other than pending workmen’s compensation cases.

 

(c)           No
Insolvency.  Seller is not a debtor
in any state or federal insolvency, bankruptcy, receivership proceeding.

 

(d)           Non-Foreign
Person.  Seller is not a “foreign
person” as defined in Section 1445 of the Internal Revenue Code or any
related regulations, as amended.

 

(e)           Contracts.  Seller has not entered into any service or
equipment leasing contracts relating to the Property other than contracts which
Seller shall utilize as tenant under the New Lease, which shall in no event be
binding on Purchaser.

 

(f)            Due
Authority.  This Agreement and all
agreements, instruments and documents herein provided to be executed or to be
caused to be executed by Seller are, or on the Closing Date will be, duly
authorized, executed and delivered by and are binding upon Seller.  Seller is a corporation, duly organized and
validly existing and in good standing under the laws of the State of New York,
and is duly authorized and qualified to do all things required of it under this
Agreement.

 

(g)           Personal
Property.  To the best of Seller’s
knowledge, the Personal Property has not been assigned or conveyed to any other
party (other than (i) as security for financing which shall be, with respect to
the Property, released at Closing and (ii) to Purchaser at Closing pursuant to
the terms of this Agreement).

 

(h)           Environmental
Matters.  To the best of Seller’s
knowledge, as of the date of this Agreement, Seller has not received written
notice from any governmental authority of any material violation at the
Property of laws or regulations relating to Hazardous Materials (as hereinafter
defined) other than as disclosed in material delivered by Seller to Purchaser
as contemplated below.  For purposes of
this Agreement, the term Hazardous Materials shall mean (a) any toxic substance
or hazardous waste, hazardous substance or related hazardous material; (b)
asbestos in any form which is or could become friable, urea formaldehyde foam
insulation, transformers or other equipment which contain dielectric fluid
containing levels of polychlorinated biphenyls in excess of presently existing
federal, state or local safety guidelines, whichever are more stringent; and
(c) any substance, material, chemical pollutant or contaminant which is defined
as or included in the definition of “hazardous substances”, “toxic substances”,
“hazardous materials”, “hazardous wastes” or words of similar import under any
federal, state or local statute, law, code, or ordinance or under the regulations
adopted or guidelines promulgated

 

13

 

pursuant thereto,
including, but not limited to, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, 42 U.S.C. §9061 et  seq.;
the Hazardous Materials Transportation Act, as amended, 49 U.S.C. §1801, et
seq.; the Resource Conservation and Recovery Act, as amended, 42 U.S.C.
§6901, et  seq.; and the Federal Water Pollution Control Act, as
amended, 33 U.S.C. §1251, et  seq.] and other environmental laws
of similar character.  Copies of any
notices or correspondence relating to any environmental conditions on the
Property, including those from any Governmental Authority, have been, or will
be within five (5) Business Days from the date of delivery of this Agreement by
Seller and Purchaser, delivered to Purchaser and copies of any additional such
notices or correspondence received by Seller after the date of delivery of this
Agreement shall be promptly delivered to Purchaser.  Other than as set forth in the Phase I
Environmental Assessment Report prepared by National Assessment Corporation,
dated August 25, 2004, and the notices and correspondence referred to
herein and delivered to Purchaser, Seller has no knowledge of any environmental
problem or alleged problem on the Property.

 

(i)            Seller
has not entered into any outstanding agreement for the transfer, or possible
transfer, of the Property (other than this Agreement).

 

(j)            Seller
does not own any land adjoining or contiguous to the Land.

 

(k)           There
are currently no real estate tax certiorari proceedings affecting the Property,
although Seller reserves the right to institute such proceedings.

 

(l)            The
representations, warranties and covenants of Seller (i) set forth in 7.1.1(d) and
(f) shall survive the Closing, and (ii) set forth in 7.1.1(a), (b), (c), (e),
(g), (h), (i), and (j) shall survive Closing for one hundred twenty (120) days

 

7.1.2        GENERAL
DISCLAIMER.  EXCEPT AS SPECIFICALLY
SET FORTH IN THIS AGREEMENT, THE SALE OF THE PROPERTY HEREUNDER IS AND WILL BE
MADE ON AN “AS IS”,”WHERE IS,” AND “WITH ALL FAULTS” BASIS, WITHOUT
REPRESENTATIONS AND WARRANTIES OF ANY KIND OR NATURE, EXPRESS, IMPLIED OR
OTHERWISE, INCLUDING ANY REPRESENTATION OR WARRANTY CONCERNING TITLE TO THE
PROPERTY, THE PHYSICAL CONDITION OF THE PROPERTY (INCLUDING THE CONDITION OF
THE SOIL OR THE IMPROVEMENTS), THE ENVIRONMENTAL CONDITION OF THE PROPERTY
(INCLUDING THE PRESENCE OR ABSENCE OF HAZARDOUS SUBSTANCES ON OR AFFECTING THE
PROPERTY), THE COMPLIANCE OF THE PROPERTY WITH APPLICABLE LAWS AND REGULATIONS
(INCLUDING ZONING AND BUILDING CODES OR THE STATUS OF DEVELOPMENT OR USE RIGHTS
RESPECTING THE PROPERTY), THE FINANCIAL CONDITION OF THE PROPERTY OR ANY OTHER
REPRESENTATION OR WARRANTY RESPECTING ANY INCOME, EXPENSES, CHARGES, LIENS OR
ENCUMBRANCES, RIGHTS OR CLAIMS ON, AFFECTING OR PERTAINING TO THE PROPERTY OR
ANY PART THEREOF.  PURCHASER ACKNOWLEDGES
THAT, PURCHASER HAS EXAMINED, REVIEWED AND INSPECTED ALL MATTERS WHICH IN
PURCHASER’S JUDGMENT BEAR UPON THE PROPERTY AND ITS VALUE AND SUITABILITY FOR
PURCHASER’S PURPOSES.

 

14

 

EXCEPT AS TO MATTERS SPECIFICALLY SET FORTH IN THIS
AGREEMENT:  (A) PURCHASER WILL ACQUIRE
THE PROPERTY SOLELY ON THE BASIS OF ITS OWN PHYSICAL AND FINANCIAL
EXAMINATIONS, REVIEWS AND INSPECTIONS AND THE TITLE INSURANCE PROTECTION
AFFORDED BY THE OWNER’S POLICY, AND (B) WITHOUT LIMITING THE FOREGOING,
PURCHASER WAIVES ANY RIGHT IT OTHERWISE MAY HAVE AT LAW OR IN EQUITY,
INCLUDING, WITHOUT LIMITATION, THE RIGHT TO SEEK DAMAGES FROM SELLER IN
CONNECTION WITH THE ENVIRONMENTAL CONDITION OF THE PROPERTY, INCLUDING ANY
RIGHT OF CONTRIBUTION UNDER THE COMPREHENSIVE ENVIRONMENTAL RESPONSE
COMPENSATION AND LIABILITY ACT.  THE PROVISIONS OF THIS SECTION 7.1.2
SHALL SURVIVE THE CLOSING.

 

7.2           Interim
Covenants of Seller.  Until the
Closing Date or the sooner termination of this Agreement in accordance with the
terms and conditions of this Agreement:

 

7.2.1        Seller
shall maintain the Property in substantially the same manner as prior hereto
pursuant to Seller’s normal course of business (such as maintenance obligations
but not including extraordinary capital expenditures or expenditures not
incurred in such normal course of business), subject to reasonable wear and
tear and further subject to destruction by casualty or other events beyond the
control of Seller subject, however, to the provisions of Section 6 of this
Agreement.

 

7.2.2        Seller
shall not enter into any contract or agreement relating to the Property which
will be binding on Purchaser or which will run with the land.

 

7.2.3        Intentionally
Omitted.

 

7.2.4        Seller
will use commercially reasonable efforts keep in force and effect with respect
to the Property the insurance policies currently carried by Seller or policies
providing similar coverage through the Closing Date.

 

7.3           Representations,
Warranties and Covenants of Purchaser.

 

7.3.1        Representations
and Warranties of Purchaser. 
Purchaser hereby represents and warrants to Seller that this Agreement
and all agreements, instruments and documents herein provided to be executed or
caused to be executed by Purchaser are, or on the Closing Date will be, duly
authorized, executed and delivered by and are binding upon Purchaser.  Purchaser is a limited liability company,
duly organized and validly existing and in good standing under the laws of the
State of New York and is duly authorized and qualified to do all things
required of it under this Agreement.  The
representations and warranties of Purchaser shall survive the Closing.

 

8.             Release
and Survival.

 

8.1           Intentionally
Omitted.

 

15

 

8.2           RELEASE.  EFFECTIVE AS OF THE CLOSING, PURCHASER SHALL
BE DEEMED TO HAVE RELEASED SELLER AND ALL SELLER RELATED PARTIES FROM ALL
CLAIMS WHICH PURCHASER OR ANY AGENT, REPRESENTATIVE, AFFILIATE, EMPLOYEE,
DIRECTOR, OFFICER, PARTNER, MEMBER, SERVANT, SHAREHOLDER OR OTHER PERSON OR
ENTITY ACTING ON PURCHASER’S BEHALF OR OTHERWISE RELATED TO OR AFFILIATED WITH
PURCHASER (EACH, A “PURCHASER RELATED PARTY”) HAS OR MAY HAVE ARISING FROM OR
RELATED TO ANY MATTER OR THING RELATED TO OR IN CONNECTION WITH THE PROPERTY
INCLUDING THE DOCUMENTS AND INFORMATION REFERRED TO HEREIN, THE LEASES AND THE
TENANTS THEREUNDER, ANY CONSTRUCTION DEFECTS, ERRORS OR OMISSIONS IN THE DESIGN
OR CONSTRUCTION OF ALL OR ANY PORTION OF THE PROPERTY AND ANY ENVIRONMENTAL
CONDITIONS, AND PURCHASER SHALL NOT LOOK TO SELLER OR ANY SELLER RELATED
PARTIES IN CONNECTION WITH THE FOREGOING FOR ANY REDRESS OR RELIEF, PROVIDED,
HOWEVER, THE FOREGOING SHALL NOT AFFECT OBLIGATIONS OF THE PARTIES ARISING
UNDER THE NEW LEASE.  THIS RELEASE SHALL
BE GIVEN FULL FORCE AND EFFECT ACCORDING TO EACH OF ITS EXPRESSED TERMS AND
PROVISIONS, INCLUDING THOSE RELATING TO UNKNOWN AND UNSUSPECTED CLAIMS, DAMAGES
AND CAUSES OF ACTION.

 

8.3           Survival.  The provisions of this Section 8 shall
survive the Closing or earlier termination of this Agreement.

 

9.             Remedies
For Default and Disposition of the Initial Deposit and the Additional Deposit.

 

9.1           SELLER
DEFAULTS.  IF THE TRANSACTION HEREIN
PROVIDED SHALL NOT BE CLOSED BY REASON OF SELLER’S DEFAULT UNDER THIS
AGREEMENT, THEN PURCHASER SHALL HAVE, AS ITS EXCLUSIVE REMEDIES THE RIGHT TO
EITHER (A) TERMINATE THIS AGREEMENT
(IN WHICH EVENT THE DEPOSIT SHALL BE RETURNED TO PURCHASER TOGETHER WITH THE
TERMINATION FEE (SUBJECT TO SATISFACTION OF THE CONDITIONS IN SECTION 4.2.2
RELATING TO DELIVERY OF COPIES OF REPORTS, AND NEITHER
PARTY HERETO SHALL HAVE ANY FURTHER OBLIGATION OR LIABILITY TO THE OTHER EXCEPT
WITH RESPECT TO THOSE PROVISIONS OF THIS AGREEMENT WHICH EXPRESSLY SURVIVE THE
TERMINATION OF THIS AGREEMENT), PURCHASER HEREBY WAIVING ANY RIGHT OR CLAIM TO
DAMAGES FOR SELLER’S BREACH, OR (B) 
SPECIFICALLY ENFORCE THIS AGREEMENT (BUT NO OTHER ACTION, FOR DAMAGES OR
OTHERWISE, SHALL BE PERMITTED); PROVIDED THAT ANY ACTION BY PURCHASER FOR
SPECIFIC PERFORMANCE MUST BE FILED, IF AT ALL, WITHIN FORTY-FIVE (45) DAYS OF
SELLER’S DEFAULT, AND THE FAILURE TO FILE WITHIN SUCH PERIOD SHALL CONSTITUTE A
WAIVER BY PURCHASER OF SUCH RIGHT AND REMEDY. 
IF PURCHASER SHALL NOT HAVE FILED AN ACTION FOR SPECIFIC PERFORMANCE
WITHIN THE AFOREMENTIONED TIME PERIOD OR SO

 

16

 

NOTIFIED SELLER OF ITS ELECTION TO TERMINATE THIS
AGREEMENT, PURCHASER’S SOLE REMEDY SHALL BE TO TERMINATE THIS AGREEMENT IN
ACCORDANCE WITH CLAUSE (A) ABOVE.

 

9.2           PURCHASER
DEFAULTS.  NOTWITHSTANDING ANYTHING
TO THE CONTRARY SET FORTH IN THIS AGREEMENT, IN THE EVENT THE TRANSACTION
CONTEMPLATED BY THIS AGREEMENT SHALL NOT CLOSE ON ACCOUNT OF PURCHASER’S
DEFAULT, THEN THIS AGREEMENT SHALL TERMINATE AND THE RETENTION OF THE DEPOSIT
SHALL BE SELLER’S SOLE AND EXCLUSIVE REMEDY UNDER THIS AGREEMENT, SUBJECT TO
THE PROVISIONS OF THIS AGREEMENT THAT EXPRESSLY SURVIVE THE TERMINATION OF THIS
AGREEMENT; PROVIDED, HOWEVER, NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED TO
LIMIT SELLER’S RIGHTS OR DAMAGES UNDER ANY INDEMNITIES GIVEN BY PURCHASER TO
SELLER UNDER THIS AGREEMENT.  IN
CONNECTION WITH THE FOREGOING, THE PARTIES RECOGNIZE THAT SELLER WILL INCUR
EXPENSE IN CONNECTION WITH THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT AND
THAT THE PROPERTY WILL BE REMOVED FROM THE MARKET; FURTHER, THAT IT IS
EXTREMELY DIFFICULT AND IMPRACTICABLE TO ASCERTAIN THE EXTENT OF DETRIMENT TO
SELLER CAUSED BY THE BREACH BY PURCHASER UNDER THIS AGREEMENT AND THE FAILURE
OF THE CONSUMMATION OF THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT OR THE
AMOUNT OF COMPENSATION SELLER SHOULD RECEIVE AS A RESULT OF PURCHASER’S BREACH
OR DEFAULT.

 

9.3           Disposition
of Deposit.  In the event the
transaction contemplated by this Agreement shall close, the Deposit shall be
applied as a partial payment of the Purchase Price.

 

10.           Escrow
Provisions.

 

10.1         Escrow.  Escrowee shall hold the Deposit in escrow and
not in trust in a special interest bearing account.  Escrowee shall pay the Deposit to Seller at
the Closing or otherwise in accordance with this Agreement.  If, prior to the Closing, either party makes
a demand upon Escrowee for delivery of the Deposit, Escrowee shall give notice
to the other party of such demand.  If a
notice of objection to the proposed payment is not received from the other
party within five (5) Business Days after the giving of notice by Escrowee,
Escrowee is hereby authorized to deliver the Deposit to the party who made the
demand.  If Escrowee receives a notice of
objection within said period, then Escrowee shall continue to hold the Deposit
and thereafter pay it to the party entitled when Escrowee receives (a) a notice from the objecting party
withdrawing the objection, or (b) a
notice signed by both parties directing disposition of the Deposit, or (c) a judgment or order of a court of competent
jurisdiction

 

10.2         Terms.  The parties further agree that:

 

(i)            Escrowee
shall be protected in relying upon the accuracy, acting in reliance upon the
contents, and assuming the genuineness of any notice, demand, certificate,
signature, instrument or other document which is given to Escrowee without

 

17

 

verifying the truth or accuracy of any such notice, demand,
certificate, signature, instrument or other document;

 

(ii)           Escrowee
shall not be bound in any way by any other contract or understanding between
the parties hereto, whether or not Escrowee has knowledge thereof or consents
thereto unless such consent is given in writing;

 

(iii)          Escrowee’s
sole duties and responsibilities shall be to hold and disburse the Deposit in
accordance with this Agreement; provided, however, that Escrowee shall have no
responsibility for the clearing or collection of the check representing the
Deposit;

 

(iv)          Escrowee
shall not be liable for any action taken or omitted by Escrowee in good faith
and believed by Escrowee to be authorized or within its rights or powers
conferred upon it by this Agreement, except for damage caused by gross
negligence of willful misconduct of Escrowee;

 

(v)           Upon the
disbursement of the Deposit in accordance with this Agreement, Escrowee shall
be relieved and released from any liability under this Agreement;

 

(vi)          Escrowee
may resign at any time upon at least five (5) days prior written notice to the
parties hereto.  If, prior to the
effective date of such resignation, the parties hereto shall all have approved,
in writing, a successor escrow agent, then upon the resignation of Escrowee,
Escrowee shall deliver the Deposit to such successor escrow agent.  From and after such resignation and the
delivery of the Deposit to such successor escrow agent, Escrowee shall be fully
relieved of all of its duties, responsibilities and obligations under this
Agreement, all of which duties, responsibilities and obligations shall be
performed by the appointed successor escrow agent.  If for any reason the parties hereto shall
not approve a successor escrow agent within such period, Escrowee may bring any
appropriate action or proceeding for leave to deposit the Deposit with a court
of competent jurisdiction, pending the approval of a successor escrow agent,
and upon such deposit Escrowee shall be fully relieved of all of its duties,
responsibilities and obligations under this Agreement;

 

(vii)         Seller
and Purchaser hereby agree to, jointly and severally, indemnify, defend and
hold harmless Escrowee from and against any liabilities, damages, losses, costs
or expenses incurred by, or claims or charges made against, Escrowee (including
reasonable attorneys’ fees and disbursements) by reason of Escrowee’s acting or
failing to act in connection with any of the matters contemplated by this
Agreement or in carrying out the terms of this Agreement, except as a result of
Escrowee’s gross negligence or willful misconduct;

 

(viii)        In
the event that a dispute shall arise in connection with this Agreement, or as
to the rights of any of the parties in and to, or the disposition of, the
Deposit, Escrowee shall have the right to (w) hold and retain all or any part
of the

 

18

 

Deposit until such dispute is settled or finally determined by
litigation, arbitration or otherwise, or (x) deposit the Deposit in an
appropriate court of law, following which Escrowee shall thereby and thereafter
be relieved and released from any liability or obligation under this Agreement,
or  (y) institute an action in
interpleader or other similar action permitted by stakeholders in the State of
New York, or (z) interplead any of the parties in any action or proceeding
which may be brought to determine the rights of the parties to all or any part
of the Deposit;

 

(ix)           Escrowee
shall not have any liability or obligation for loss of all or any portion of
the Deposit by reason of the insolvency or failure of the institution of
depository with whom the escrow account is maintained; and

 

(x)            The
parties hereto represent that prior to the negotiation and execution of this
Agreement they were advised that Escrowee was representing Seller as its
attorney in connection with this Agreement and the transaction referred to
herein and the parties hereto covenant that they shall not object, on the
grounds of conflict of interest or otherwise, to Escrowee continuing to act as
Seller’s attorney in connection with this Agreement and the transaction
contemplated herein, or to act as Seller’s attorney in connection with any
dispute in connection herewith or any other matter, as well as act as Escrowee
hereunder.

 

10.3         Survival.  The provisions of this Section 10 shall
survive the Closing or a termination of this Agreement.

 

11.           Miscellaneous.

 

11.1         Brokers.

 

11.1.1      Seller
represents and warrants to Purchaser, and Purchaser represents and warrants to
Seller, that no broker or finder has been engaged by it, respectively, in
connection with the sale contemplated under this Agreement.  In the event of a claim for broker’s or
finder’s fee or commissions in connection with the sale contemplated by this
Agreement, then Seller shall indemnify, defend and hold harmless Purchaser from
the same if it shall be based upon any statement or agreement alleged to have
been made by Seller, and Purchaser shall indemnify, defend and hold harmless
Seller from the same if it shall be based upon any statement or agreement
alleged to have been made by Purchaser. 
The indemnification obligations under this Section 11.1.1 shall
survive the Closing or a termination of this Agreement.

 

11.2         Limitation
of Liability.

 

11.2.1      Intentionally
Omitted.

 

11.2.2      No
shareholder or agent of Seller, nor any Seller Related Parties, shall have any
personal liability, directly or indirectly, under or in connection with this
Agreement or any agreement made or entered into under or pursuant to the
provisions of this Agreement, or any amendment or amendments to any of the
foregoing made at any time or

 

19

 

times, heretofore or hereafter, and Purchaser and its
successors and assigns and, without limitation, all other persons and entities,
shall look solely to Seller’s assets for the payment of any claim or for any
performance, and Purchaser, on behalf of itself and its successors and assigns,
hereby waives any and all such personal liability.

 

11.2.3      No
member or agent of Purchaser, nor any Purchaser Related Party, shall have any
personal liability, directly or indirectly, under or in connection with this
Agreement or any agreement made or entered into under or pursuant to the provisions
of this Agreement, or any amendment or amendments to any of the foregoing made
at any time or times, heretofore or hereafter, and Seller and its successors
and assigns and, without limitation, all other persons and entities, shall look
solely to Purchaser’s assets for the payment of any claim or for any
performance, and Seller, on behalf of itself and its successors and assigns,
hereby waives any and all such personal liability.  For the purposes hereof, a Purchaser Related
Party shall mean any agent, advisor, representative, affiliate, employee,
director, partner, member, beneficiary, investor, servant, shareholder, trustee
or other person or entity acting on Purchaser’s behalf or otherwise related to
or affiliated with Purchaser.

 

11.2.4      The
provisions of this Section 11.2 shall survive the Closing or a termination
of this Agreement.

 

11.3         Exhibits;
Entire Agreement; Modification.  All
exhibits attached and referred to in this Agreement are hereby incorporated
herein as if fully set forth in (and shall be deemed to be a part of ) this
Agreement.  This Agreement contains the
entire agreement between the parties respecting the matters herein set forth
and supersedes any and all prior agreements between the parties hereto
respecting such matters.  This Agreement
may not be modified or amended except by written agreement signed by both
parties.

 

11.4         Business
Days.  Whenever any action must be
taken (including the giving of notice or the delivery of documents) under this
Agreement during a certain period of time (or by a particular date) that ends
(or occurs) on a non-Business Day, then such period (or date) shall be extended
until the next succeeding Business Day. 
As used herein, the term “Business Day” shall be deemed to mean any day,
other than a Saturday or Sunday, on which commercial banks in the State of New
York are not required or authorized to be closed for business.

 

11.5         Interpretation.  Section headings shall not be used in
construing this Agreement.  Each party
acknowledges that such party and its counsel, after negotiation and
consultation, have reviewed and revised this Agreement.  As such, the terms of this Agreement shall be
fairly construed and the usual rule of construction, to wit, that ambiguities
in this Agreement should be resolved against the drafting party, shall not be
employed in the interpretation of this Agreement or any amendments,
modifications or exhibits hereto or thereto. 
Whenever the words “including”, “include” or “includes” are used in this
Agreement, they shall be interpreted in a non-exclusive manner.  Except as otherwise indicated, all Exhibit
and Section references in this Agreement shall be deemed to refer to the
Exhibits and Sections in this Agreement.

 

20

 

11.6         Governing
Law.  This Agreement, shall be
construed and enforced in accordance with the laws of the State of New York.

 

11.7         Successors
and Assigns.  Purchaser may not
assign or transfer its rights or obligations under this Agreement without the
prior written consent of the Seller, which consent may be given or withheld in
the sole and absolute discretion of Seller; provided that, in the event of such
an assignment or transfer, the transferee shall assume in writing all of the
transferor’s obligations hereunder (but Purchaser or any subsequent transferor
shall not be released from obligations hereunder). Notwithstanding and without
limiting the foregoing, no consent given by Seller to any transfer or
assignment of Purchaser’s rights or obligations hereunder shall be deemed to
constitute a consent to any other transfer or assignment of Purchaser’s rights
or obligations hereunder and no transfer or assignment in violation of the
provisions hereof shall be valid or enforceable.  Subject to the foregoing, this Agreement and
the terms and provisions hereof shall inure to the benefit of and be binding
upon the successors and assigns of the parties. 
Notwithstanding the foregoing, Purchaser may assign and transfer this
Agreement to an entity which is affiliated with or related to Purchaser and
over which Kenneth Cohen has management control, provided Seller is provided
with evidence of the foregoing reasonably satisfactory to Seller.

 

11.8         Notices.  All notices, requests or other communications
which may be or are required to be given, served or sent by either party hereto
to the other shall be deemed to have been properly given, if in writing and
shall be deemed received (a) upon
delivery, if delivered in person or by facsimile transmission, with receipt
thereof confirmed by printed facsimile acknowledgment (with a confirmation copy
delivered in person or by overnight delivery), (b)
one (1) Business Day after having been deposited for next day overnight
delivery with any reputable overnight courier service, or (c) three (3) Business Days after having been
deposited in any post office or mail depository regularly maintained by the
United States Postal Office and sent by registered or certified mail, postage
paid, return receipt requested, and in each case, addressed as follows:

 

To Seller:

 

	
  Metro
  Affiliates, Inc.

  
	
  399 Exterior
  Street

  
	
  Bronx, New
  York  10451

  
	
  Attention:

  	
  Neil
  Abitabilo

  
	
  Facsimile:

  	
  (718)
  447-5105

  
	
  Telephone:

  	
  (718)
  556-8081

  

 

With a copy to

 

	
  Peter
  Silverman, Esq.

  
	
  Silverman,
  Sclar, Shin & Byrne

  
	
  381 Park
  Avenue South, Suite 1601

  
	
  New York,
  NY  10016

  
	
  (212)
  779-8600

  

 

21

 

With a Copy
To:

 

	
  Stroock
  & Stroock & Lavan LLP

  
	
  180 Maiden
  Lane

  
	
  New York,
  New York 10038-4982

  
	
  Attention:

  	
  Edward
  Martin, Esq.

  
	
  Facsimile:

  	
  (212) 806-6006

  
	
  Telephone:

  	
  (212)
  806-5400

  
	
   

  	
   

  
	
  To
  Purchaser:

  	
   

  
	
   

  	
   

  
	
  Pantheon
  Properties, LLC

  
	
  119 W. 57th
  Street

  
	
  Penthouse
  South

  
	
  New York,
  New York, 10019

  
	
  Attention:
  Kenneth Cohen

  
	
  Facsimile:

  	
  (212)
  265-8158

  
	
  Telephone:

  	
  (212)
  265-8151

  
	
   

  	
   

  
	
  With a Copy
  To:

  
	
   

  	
   

  
	
  Farer Fersko,
  a Professional Association

  
	
  600 South
  Avenue

  
	
  P.O. Box 580

  
	
  Westfield,
  New Jersey 07091

  
	
  Attention:

  	
  Jack Fersko,
  Esq.

  
	
  Facsimile:

  	
  (908)
  789-8660

  
	
  Telephone:

  	
  (908)
  789-8550

  
	
   

  	
   

  
	
  To Escrowee:

  	
   

  
	
   

  	
   

  
	
  Stroock
  & Stroock & Lavan LLP

  
	
  180 Maiden
  Lane

  
	
  New York,
  New York 10038-4982

  
	
  Attention:

  	
  Edward
  Martin, Esq.

  
	
  Facsimile:

  	
  (212)
  806-6006

  
	
  Telephone:

  	
  (212)
  806-5569

  

 

11.9         Third
Parties.  Nothing in this Agreement,
whether expressed or implied, is intended to confer any rights or remedies
under or by reason of this Agreement upon any other person other than the
parties hereto and their respective permitted successors and assigns, nor is
anything in this Agreement intended to relieve or discharge the obligation or
liability of any third persons to any party to this Agreement, nor shall any
provision give any third parties any right of subrogation or action over or
against any party to this Agreement. 
This Agreement is not intended to and does not create any third party
beneficiary rights whatsoever.

 

22

 

11.10       Legal
Costs.  The parties hereto agree that
they shall pay directly any and all legal costs which they have incurred on
their own behalf in the preparation of this Agreement, all deeds and other
agreements pertaining to this transaction, and that such legal costs shall not
be part of the closing costs.

 

11.11       Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same document.

 

11.12       Effectiveness.  In no event shall any draft of this Agreement
create any obligation or liability, it being understood that this Agreement
shall be effective and binding only when a counterpart hereof has been executed
and delivered by each party hereto.

 

11.13       No
Implied Waivers.  No failure or delay
of either party in the exercise of any right or remedy given to such party
hereunder or the waiver by any party of any condition hereunder for its benefit
(unless the time specified in this Agreement for exercise of such right or
remedy has expired) shall constitute a waiver of any other or further right or
remedy nor shall any single or partial exercise of any right or remedy preclude
other or further exercise thereof or any other right or remedy.  No waiver by either party of any breach
hereunder or failure or refusal by the other party to comply with its
obligations shall be deemed a waiver of any other or subsequent breach, failure
or refusal to so comply.

 

11.14       Discharge
of Seller’s Obligations.  Except as
otherwise expressly provided in this Agreement, Purchaser’s acceptance of the
Deed shall be deemed a discharge of all of the obligations of Seller hereunder
and all of Seller’s representations, warranties, covenants and agreements in
this Agreement shall merge in the documents and agreements executed at the
Closing and shall not survive the Closing, except and to the extent that,
pursuant to the express provisions of this Agreement, any of such
representations, warranties, covenants or agreements are to survive the
Closing.

 

11.15       No
Recordation.  Neither this Agreement
nor any memorandum thereof shall be recorded and any attempted recordation
hereof shall be void and shall constitute a default hereunder.

 

11.16       Unenforceability.  If all or any portion of any provision of
this Agreement shall be held to be invalid, illegal or unenforceable in any
respect, then such invalidity, illegality or unenforceability shall not affect
any other provision hereof, and such provision shall be limited and construed
as if such invalid, illegal or unenforceable provision or portion thereof were
not contained herein unless doing so would materially and adversely affect a
party or the benefits that such party is entitled to receive under this Agreement.

 

11.17       Waiver of Trial by Jury.  SELLER AND PURCHASER HEREBY WAIVE TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER ARISING IN TORT OR
CONTRACT) BROUGHT BY EITHER AGAINST THE OTHER ON ANY MATTER ARISING OUT OF OR
IN ANY WAY CONNECTED WITH THIS AGREEMENT. 
The provisions of this Section shall survive the Closing.

 

23

 

11.18       Disclosure.  Notwithstanding any terms or conditions in
this Agreement to the contrary, but subject to restrictions reasonably
necessary to comply with federal or state securities laws, any person may
disclose to any and all persons, without limitation of any kind, the tax
treatment and tax structure of the transaction and all materials of any kind
(including opinions or other tax analyses) that are provided relating to such
tax treatment and tax structure.  For the
avoidance of doubt, this authorization is not intended to permit disclosure of
the names of, or other identifying information regarding, the participants in
the transaction, or of any information or the portion of any materials not
relevant to the tax treatment or tax structure of the transaction.  The provisions of this Section shall
survive the Closing.

 

11.19       No
Solicitation.  Seller shall not
solicit any offer for the purchase of the property or otherwise market the
Property so long as the Agreement remains in full force and effect with no
default by Purchaser.

 

11.20       No
Offer.  This Agreement is of no force
or effect unless and until it is signed by Purchaser and Seller and a signed
copy of this Agreement delivered by Seller to Purchaser.  The mailing, delivery or negotiation of this
Agreement by Seller or Purchaser or any agent or attorney of Seller or
Purchaser prior to the full execution and delivery of this Agreement as set
forth in this paragraph shall not be deemed an offer by Seller or Purchaser
either to enter into this Agreement, whether on the terms contained in this
Agreement or on any other terms.  Until
the execution and delivery of this Agreement as set forth in this paragraph,
Seller or Purchaser may terminate all negotiations and discussion of the
subject matter of this Agreement, without cause and for any reason, without
recourse or liability.

 

11.21       Attorneys’
Fees.  Each party shall pay its own
attorneys’ fees in connection with the preparation and negotiation of this
Agreement; however, if any legal action is instituted hereunder, the prevailing
party in such action shall be entitled to recover from the other party
reasonable attorneys’ fees and costs related to such legal action, including
reasonable attorneys’ fees and costs in all trial, appellate, post-judgment and
bankruptcy proceedings.

 

[Remainder of Page Intentionally Left Blank]

 

24

 

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

 

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Metro Affiliates, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Neil
  Abitabilo

  	
   

  
	
   

  	
   

  	
  Name: Neil
  Abitabilo

  
	
   

  	
   

  	
  Title: Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Pantheon
  Properties, LLC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Kenneth
  Cohen

  	
   

  
	
   

  	
   

  	
  Name:
  Kenneth Cohen

  
	
   

  	
   

  	
  Title:
  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  	
  Agreed to as to escrow provisions:

  
	
   

  	
   

  
	
   

  	
   

  	
  Stroock & Stroock & Lavan, LLP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Richard Siegler

  	
   

  
	
   

  	
   

  	
  Name: Richard Siegler

  
	
   

  	
   

  	
  Title:Partner

  
								

 

25

 

ATTACHED EXHIBITS AND SCHEDULES

 

A.            Property Description

 

B.            Permitted Exceptions

 

C.            New Lease

 

Schedule 4.2 – Investigations

 

Schedule 4.2.3 – A – Consultants

 

Schedule 4.2.3 – B – Escrow Agreement

 

Schedule 5.1(a) – Deed

 

Schedule 5.1(c) – FRPTA

 

Schedule 7.1.1(g) – Assignment of Lease

 

Schedule 5.1(j) – Title Affidavit

 

 

EXHIBIT A

 

(Property Description)

 

A-1

 

EXHIBIT
B

 

(Permitted Exceptions)

 

1.             Billboard Lease.

 

2.             Non-exclusive
permanent and perpetual aerial easement for elevated highway (Major Deegan
Expressway) made by the Lehigh Valley Railway Company and Lehigh Valley
Railroad Company to the City of New York dated March 2w7, 1947 recorded April 14,
1947 in Liber 1527 Cp 320.

 

3.             Non-exclusive
subsurface easements (Parcels 4W, 5W, 6W, 7W and 8W) for the construction and
maintenance of foundations, footings, and columns to support the elevated
viaduct of the Major Deegan Expressway made by the Lehigh Valley Railroad
Company, success by merger with the Lehigh Valley Railroad Company to the City
of New York dated February 29, 1960 recorded February 11, 1960 in
Liber 2393 Cp 290.

 

4.             Terms and conditions
of Waiver of Legal Grade made by Metro Affiliates Inc. to the City of New York
dated August 18, 1992 recorded in October 6, 1992 in Reel 1123 Page
1460.

 

5.             Final
Certificate of Eligibility recorded on 2/8/1996 in Reel 1369 Page 328.

 

B-1

 

SCHEDULE C

 

(New Lease)

 

2

 

Schedule 4.2

 

Investigation
Specifications

 

The
following shall be permitted test borings on the Land:

 

1,             Up to 8
borings in the parking lot.

 

2.             Up to 3
borings in the truck bays.

 

3

 

Schedule 4.2.3-A

 

(Consultants)

ERM, Inc.

475 Park Avenue

New York, NY  10016

(212) 447-1900

 

Attention: 
Carla Weinpahl

 

AKRF, Inc.

116 East 27th Street

New York, NY  10016

(646) 459-534

Attention:  Mark Godick

 

4

 

Schedule 4.2.3-B

 

(Escrow Agreement)

 

5

 

Schedule 5.1(a)

 

(Deed)

 

(Form 8001 (3/00))

 

S-1

 

Schedule 5.1(c)

 

CERTIFICATION OF NON-FOREIGN STATUS UNDER

TREASURY REGULATIONS SECTION 1.1445-2(b)

 

(NON-DISREGARDED ENTITY GRANTOR/TRANSFEROR)

 

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. For U.S. tax purposes (including section 1445), the
owner of a disregarded entity (which has legal title to a U.S. real property
interest under local law) will be the transferor of the property and not the
disregarded entity.  To inform the
transferee that withholding of tax is not required upon the disposition of a
U.S. real property interest by Metro Affiliates, Inc., a New York corporation
(the “Company”) the undersigned hereby certifies the following on behalf of the
Company:

 

1.             The 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 Company is not a
disregarded entity as defined in Treasury Regulations § 1.1445-2(b)(2)(iii);

 

3.             The Company’s U.S.
employer identification number is                 ;
and

 

4.             The Company’s office
address is 399 Exterior Street, Bronx, New York 10451.

 

The Company understands that this certification may be disclosed to the
Internal Revenue Service by 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 Company.

 

 

	
  Dated:

  	
                                          ,
  2005

  	
  Metro Affiliates, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S-1

 

Schedule 5.1(g)

 

ASSIGNMENT
AND ASSUMPTION OF LEASE

 

THIS ASSIGNMENT AND ASSUMPTION OF LEASES (this “Assignment”) is
executed as of the         day of                        ,
20    by and between [                                              ],
a [                                               ],
having an address                                        (“Assignor”)
and [                                    ],
a [                                                     ],
having an address c/o [                                                    ]
(“Assignee”).

 

WHEREAS, Assignee is this day purchasing from Assignor and Assignor is
conveying to Assignee the Property (as such term is described in that certain
Contract of Sale dated as of                                                    between
Assignor and Assignee).

 

WHEREAS, the Property is encumbered by that certain tenant (the “Tenant”)
occupying space under the lease listed and described on Exhibit A
annexed hereto and made a part hereof (collectively, the “Tenant Lease”).

 

WHEREAS, Assignor desires to transfer and assign to Assignee, and
Assignee desires to assume as provided herein, all of Assignor’s right, title
and interest in and to the Tenant Lease.

 

NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.             Assignor hereby
transfers and assigns to Assignee all right, title and interest of Assignor in
and to the Tenant Lease, including the security deposit pursuant thereto of $                    and
interest thereon of $                         and
Assignee shall indemnify and hold Assignor harmless with respect to any loss
arising from failure to return the security deposit or interest thereon to the
Tenant.

 

2.             Assignee hereby
affirmatively and unconditionally assumes all of Assignor’s obligations and
liabilities under the Tenant Lease arising from and after the date hereof
provided that Assignor shall permit Assignee to have access to the property to
the extent necessary to perform such obligations.

 

3.             This Assignment is
made without warranty, representation, or guaranty by, or recourse against
Assignor of any kind whatsoever except as set forth herein.  Assignee shall be liable for and Assignee
hereby indemnifies and holds harmless Assignor and any agent, advisor,
representative, affiliate, employee, director, partner, member, beneficiary,
investor, servant, shareholder, trustee or other person or entity acting on
Assignor’s behalf or otherwise related to or affiliated with Assignor
(collectively, “Assignor

 

S-1

 

Related
Parties”) against all claims, losses, damages, liabilities, costs, expenses
(including reasonable attorneys’ fees and disbursements) and charges Assignor
or any Assignor Related Party may incur or suffer as a result of or which
arises (directly or indirectly) out of the assumption by Assignee of the
obligations or liabilities assumed by Assignee hereunder.  Assignor shall be liable for and Assignor
hereby indemnifies and holds harmless Assignee and any agent, advisor,
representative, affiliate, employee, director, partner, member, beneficiary,
investor, servant, shareholder, trustee or other person or entity acting on
Assignee’s behalf or otherwise related to or affiliated with Assignee
(collectively, “Assignee Related Parties”) against all claims, losses, damages,
liabilities, costs, expenses (including reasonable attorneys’ fees and
disbursements) and charges Assignee or any Assignee Related Party may incur or
suffer as a result of or which arises (directly or indirectly) prior to the
assumption by Assignee of the obligations or liabilities assumed by Assignee
hereunder.

 

4.             This Assignment may
be executed in any number of counterparts, each of which may be executed by any
one or more of the parties hereto, but all of which shall constitute one and
the same instrument, and shall be binding and effective when all parties hereto
have executed and delivered at least one counterpart.

 

5.             The terms and
provisions of this Assignment shall be binding upon and inure to the benefit of
the respective parties hereto, and their respective successors and assigns.

 

IN WITNESS WHEREOF, the parties hereto have caused this Assignment to
be duly executed as of the day and year first written above.

 

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  [

  	
   

  	
  ]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  [

  	
   

  	
  ]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

S-2

 

EXHIBIT A

 

[Billboard Lease]

 

S-1

 

Schedule 5.1(j)

 

(Affidavit of title)

 

S-1

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